Weekly Compilation of Presidential Documents

Monday, November 8, 1993 Volume 29—Number 44 Pages 2215–2282

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Addresses and Remarks Appointments and Nominations—Continued Bipartisan Commission on Entitlement State Department, Ambassador to Djibouti— Reform, Executive order signing 2240 ceremony—2266 U.S. International Development Cooperation California fires—2221, 2250 Agency, Agency for International Community in Ambridge, PA—2246 Development, Senior Executive Service— Historically black colleges and universities, 2266 Executive order signing ceremony—2232 New York City Bill Signings Queens County Democrats—2217 Most-favored-nation trade status for Romania Rally for Mayor David Dinkins—2215 legislation, statement—2244 North American Free Trade Agreement Rural Electrification Loan Restructuring Act Endorsements—2241 of 1993, statement—2237 Gillette Co. in Boston, MA—2218 Wool and mohair subsidies phaseout Legislation, transmittal signing ceremony— legislation, statement—2237 2244 Lexmark International in Lexington, KY— Communications to Congress 2256 Budget rescissions, message—2239 Midwest agricultural community, Continuation of Iran emergency, message teleconference—2269 transmitting notice—2239 U.S. Chamber of Commerce—2225 Cyprus conflict, letter—2277 Radio address—2223 North American Free Trade Agreement, Appointments and Nominations messages—2254, 2255 Air Force Department Republic of Korea-U.S. fishery agreement, Assistant Secretary—2240 message transmitting—2279 Under Secretary—2240 Communications to Federal Agencies Commerce Department Assistant Secretary—2240 Trade with Japan, memorandum—2225 Patent and Trademark Office, Assistant Executive Orders Commissioners—2244 Energy Department, Under Secretary—2240 Bipartisan Commission on Entitlement Housing and Urban Development Reform—2268 Department, Senior Executive Service— Historically Black Colleges and Universities— 2266 2234 Labor Department, Senior Executive Marshall Islands, Micronesia, and Palau Service—2266 compact management, amendment—2253

(Continued on the inside of the back cover.)

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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Interviews With the News Media Statements by the President Exchanges with reporters Peace process in Northern Ireland—2225 Cabinet Room—2266 Statements Other Than Presidential Lexington, KY—2256 Oval Office—2240, 2244 Drug control policy—2252 Supplementary Materials Notices Acts approved by the President—2281 Continuation of Iran Emergency—2238 Checklist of White House press releases— 2281 Proclamations Digest of other White House National Health Information Management announcements—2279 Week—2251 Nominations submitted to the Senate—2280

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Remarks at a Rally for Mayor David a young man who overcomes enormous odds Dinkins in New York City to fulfill his lifetime dream of playing football October 28, 1993 at Notre Dame. Audience members. ‘‘Rudy’’! The President. This is not one but two The President. The title of the movie is hard acts to follow. I am glad to be back in ‘‘Rudy.’’ I didn’t realize that when they Queens. And I’m here because I still love showed it on the CNN or wherever that there New York. might be some political connotation to that. I want to say that when I was waiting to [Laughter] So when I learned that there was, come out here tonight, I listened to the choir I remembered that there was another movie and the music and my friend Judy Collins. made a few months ago that I also liked very And they were great, and they got me in a much called ‘‘Dave.’’ So let me tell you, I wonderful frame of mind. I listened to all liked both movies a lot, but when it comes of you cheer. I listened to my friend Gary to being Mayor, Dave’s my man. Ackerman tell me that he grew up in a public Ladies and gentlemen—— housing unit called Pominant near here. His Audience member. We love you, Bill! mother is right over there. And I want to The President. Thank you. say right now that the first time Congressman Ladies and gentlemen, I have read some Ackerman visited me in the White House, criticism, some of which I sort of understand, he looked around at the White House and from people saying, ‘‘Well, you know, the he said, ‘‘Don’t feel bad, Mr. President, I Vice President and Mrs. Gore and the Presi- used to live in public housing, too.’’ dent and the First Lady, they’ve all been I want to thank Tom Manton and Carolyn there campaigning for Mayor Dinkins. What Maloney and Nydia Vela´zquez and my dear are they doing there? They don’t have a vote friend Floyd Flake and Gary Ackerman for in New York.’’ Well, we may not have a vote being my partners in the Congress of the in New York, but we have a stake in New United States. I want to thank Claire York. How can America do well if New York Shulman and Freddy Ferrer and Peter City or New York State don’t do well? How Vallone and all the other leaders of the can we be the kind of country we ought to Democratic Party here, and Tom Van be if the home of the Statue of Liberty is Arsdale and the leaders of the House of not a living example of our liberty and our Labor for giving us a place to meet and a triumph and the strength of our diversity? cause to fight for. I also know that elections always stand for I want to say a strong word for the rest things. The voters of New York, no different of this ticket, Alan Hevesi and my friend of than the voters of any other place in America, many years Mark Green, who will make a have been through a long, tough time. For strong team when Mayor Dinkins is re- 20 years now, most hourly wage earners have elected on Tuesday. been working longer work weeks for the And I want to say one other thing. I know same or lower wages, when you take account I should be mindful of New York every wak- of inflation. For 10 years, many workers have ing minute, but once in a while, just once given up all their pay increases just to pay in a while, you slip my mind. [Laughter] for higher health care costs. More and more Now, this morning I went out running, as when people lose their jobs, they don’t get I do every morning, and I wore a cap that the same job back; they have to get another I was given the other night when we showed job. And often it doesn’t pay as well or have a wonderful movie at the White House about as good benefits.

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More and more, people look at the present libraries open 6 days a week and to promote with some sense of insecurity. All over Amer- education? ica I’ve told the story of the man who worked If we need health care security for all, at a hotel in Manhattan who told me that shouldn’t we reelect a Mayor who’s actually his son wanted him to support me, but if got a theory about how to use these public he did it, he wanted me to make his son free. health clinics to keep people well and give And by that he meant free to walk to school primary and preventive services and keep without fear of being shot or attacked. people in a position where they can have These are things that everyone in America more health care for lower costs? I think we feels. And when people are frustrated and should. anxiety-ridden, they naturally tend to vote to If crime is a scourge tearing at the heart change things, whatever it is. Look at the Ca- of America and ripping up families and com- nadian elections. Look at what’s happening munities, shouldn’t we reelect a Mayor who in Europe, all over the world: every wealthy with no help from Washington put 6,000 country having trouble creating jobs, having more police officers on the street and, not trouble giving people higher incomes when according to his campaign literature but ac- they work harder and smarter. cording to the FBI statistics, oversaw a re- We are seeing, my fellow Americans, a lot duction in the total number of crimes re- of problems in the world and a lot of prob- ported in all major categories from over lems at home. I ran for President because 700,000 to over 600,000 a year? Sure, there’s I wanted to change that. But here’s what I too much crime, but if a guy’s doing right want to say to you. And this is the message by it, why punish him? Reward him. Send I have to everyone in New York, whether a message to other people throughout Amer- like me, a Democrat born and bred, or a Re- ica that you want change and you will reward publican or an independent or a member of change, and people will vote for those who one of the other parties here: Yes, we must have the courage to change. That’s what this change America. is about. Every day I get up and go to work to do And tell me, you walk across to your neigh- that. Today we saw the deficit this year is boring State where Governor Florio is run- over $50 billion less than we were told it was ning for reelection, and you look here, and going to be on the day I became President. you see two people who said we need more Why? Because we went after it. We brought cops, fewer guns, and we need to do things down interest rates; we proved you could to give people a chance to have a better way bring down the deficit. And for the first time in life; we need to give them something to in a long time, when you got that report the say yes to, not just tell them no all the time. deficit was smaller, not bigger, than all the So we’re going to prevent crime, punish politicians said it was going to be. Yes, we crime but give people a chance to escape need change. from a life of crime and from a fabric of de- Yes, we need more jobs. But in the first struction. When people are committed to 9 months of this administration we have that kind of change, no matter how frus- more jobs in the private sector created than trated, no matter how angry, no matter how in the previous 4 years. Is it enough? Of hopeless people sometimes feel in their dark- course not. But we are on the right path. est moments, those are the public officials Yes, we need changes in education. Yes, who should be rewarded. How can we make we need changes so we can sell more of our progress if the voters cannot make distinc- products around the world. Yes, we need all tions between those who fight for the right kinds of changes. But here is what I want kind of change and those who do not? This to say to you: For the people who are labor- man has earned reelection, and I hope you ing to produce change, you should have a will give it to him on Tuesday. reward, not a punishment. If we need better The other thing I want to say to you is education, shouldn’t we reelect a Mayor— that it is easier to be a good President for without any help in Washington, no help New York City and for New York State if from Washington, found a way to keep the you have a good partner at city hall or in

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the statehouse. It is easier. I know we have let the fact that we know we have great prob- a lot of work to do. Today, just today, I asked lems blind us to our promise or take away Congress to act on the vision of Mayor our ability to distinguish between those lead- Dinkins and Senator Moynihan so that the ers who have embraced the challenges and Federal Government can work with New change and taken the steps necessary to York City and New York State to build a new move to the future, and those who have not. railroad station inside the old post office on I come here, yes, because I am a Demo- 33d Street in Manhattan. For more than half crat; yes, because David Dinkins is my friend; a million commuters every day, Penn Station yes, because I never pass up a chance to is the gateway to New York City. We can come to Queens and New York City. Yes, build a beautiful new station worthy of this I come here for all those reasons. But I’m great future and this great city. telling you, far more important than all of This is the beginning of the kinds of things that, I come here because I believe we need we must do together. But I need your help. leaders who think children should have a So what if we pass a health care plan—we’ve chance to read, who think people should got to do that—and every one of your Mem- have a chance to live in safe neighborhoods, bers of Congress vote for it. How will it who believe that we have to have health care work? How will it work? We must still have that works at the grassroots level, who have the clinics in the cities where the people are plans to put people back to work and give isolated from care. We must still make sure them jobs and hopes, who have embraced the great hospitals can prosper and provide the cause of change. And I know that every care. We must still, in short, have the kind day, to the best of his God-given ability, in of partnership with this city so that when we every way he can, David Dinkins gets up and pass a bill providing health care security for does that. And I know when you give him all of our people, health care that is always 4 more years on Tuesday, he will be the best there, health care that can never be taken partner the President of the United States away, it is really there when people show up could ever have. Do it! We need you! the next day. That requires a partnership Thank you, and God bless you all. with a Mayor and a city committed to provid- ing quality health care to all the people who NOTE: The President spoke at 6:18 p.m. at Elec- live here. That is why I want you to reelect tric Industries Hall. In his remarks, he referred David Dinkins on Tuesday. to Judy Collins, entertainer; Claire Shulman, My fellow Americans, I believe with all my Queens Borough president; Fernando Ferrer, heart the decisions we make as a people in Bronx Borough president; Peter Vallone, speaker, the next 4 to 5 to 6 years will shape America New York City Council; Tom Van Arsdale, former for 50 years. We have finally admitted as a labor leader; Alan Hevesi, candidate for New York people that we can no longer ignore the great City comptroller; and Mark Green, candidate for challenges of our age: the great challenges New York City public advocate. This item was not of global economy, the great challenges of received in time for publication in the appropriate issue. crime here at home, the challenge to make a strength out of our diversity, the challenge to educate and train our people better, the challenge to liberate our people from the Telephone Remarks to the Queens scourge of fear on the streets. We know what County Democratic Dinner in New we have to do. York City We know we can no longer ignore the fact October 28, 1993 that when there is no investment in these distressed neighborhoods, whether they’re in Hello. Thank you very much, Tom. the inner cities of New York and Chicago Ladies and gentlemen, it’s great to be with and Detroit or back home where I come you, even by telephone. I was here tonight from in the Mississippi Delta, which is still on behalf of Mayor Dinkins, with Congress- the lowest income part of America, we know man Manton and Congressman Ackerman we can’t ignore those anymore. We cannot and Congressman Floyd Flake, Congress-

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woman Carolyn Maloney, and Congress- NOTE. The President spoke at 6:47 p.m. from woman Nydia Vela´zquez. We think we did Electric Industries Hall. In his remarks, he re- some good for Mayor Dinkins here tonight. ferred to Representative Thomas J. Manton. This And I know you will on election day. item was not received in time for publication in the appropriate issue. I was just reminiscing with Tom about the time when I came to your meeting last year in early 1992 when I took the subway from Manhattan and I came out to Queens to the Remarks on NAFTA to Gillette meeting, and your organization got behind Employees in Boston, Massachusetts me early and stayed with me through the October 29, 1993 dark days and the bright ones. And I will never forget it. And I want you to know that Thank you very much. I’ve had a good time I am still as grateful to you today as I was here today. I’m a satisfied customer, that’s on the day we won the New York primary true. And I rarely cut myself, and when I and the day we won the general election. do, it’s my fault, not yours. [Laughter] I also want you to know that we’re making Mr. Zeien and Governor Weld, Senator progress on all the things that I talked about Kennedy, Senator Kerry, Congressman in Queens so long ago. We just got the report Moakley, Congressman Kennedy, and my today that the Government’s deficit is over other friends here today. This was a good $50 billion less this year than we thought it experience for me for a lot of reasons. I’ve was going to be; that we’ve got some real had a wonderful day today. We dedicated the growth back in the economy; and that more Kennedy Museum over at the Kennedy Li- jobs have been created in the private sector brary. I urge you all to go and see it. It’s in the first 9 months of this administration wonderful, improved, accessible. It’s terrific. than in the previous 4 years of the last one. And they even put a little clip of me in there Now, we’ve still got a long way to go, and talking, so I like it better. [Laughter] we’ve got a lot of work to do. I need your And I spoke at the Kennedy Library about help to pass a comprehensive health care bill the challenges that President Kennedy faced that gives health care security to all the peo- over 30 years ago: trying to get America to ple who live in Queens. And we’ve got a solve its problems here at home, which at chance now to pass a crime bill that will put that time were largely the problems of civil more police officers on the street, and pass rights, and still to be adventuresome when the Brady bill and other bills that will keep looking toward the future; when he launched some of these terrible guns out of the hands the space program, which we’re trying to of kids and others who are using them in keep alive and keep going today; when he the wrong way. We’ve got to do that. And agreed to establish and push for the estab- I need your help to do that. lishment of the Peace Corps and the Alliance But I want you to know we’re moving in for Progress in Latin America; and when he the right direction, and we’re not going to started a trade adjustment program for peo- stop until we’ve got this economy up and ple who lost their jobs in trade because he going, provided health care for all, and made knew that if we did it right, we’d always have our streets safer. more winners than losers, but people who To do all that, I need to just remember lost their jobs should be retrained so they the kind of people I met at the Queens could get new and different jobs. And this Democratic meeting the first time I came is the kind of replay in some ways of that up there. I want you to know I’ll never forget time, with a more complex and difficult set you, and I’m grateful to you. I want you to of problems. stay behind your Members of Congress so I feel right at home here, when before— they can stay behind me, and help elect the I tell people, back when I had a life, before Mayor on Tuesday. I became President—I was the Governor of Thank you very much. what my opponent in the last election called

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‘‘a small southern State’’ that had 22 percent around the world, management can be of its work force in manufacturing. And my moved around the world—if you have a stag- job was essentially schools and jobs. That’s nant economy and poorer countries are what I did for a living. I was in plants all growing with new manufacturing, that means the time; I frequently worked shifts in plants. that people in richer countries will work I understand a little bit about machine tools harder for less money. and how they work and how they’re adjusted. That is exactly what has happened in the I now know what a bam, a cam, and a pam United States for 20 years. A lot of hourly is. wage earners have worked harder for lower I had some plants when I was the Gov- wages. But guess what, it’s happening every- ernor of my State that shut down and went where. If you look at Europe where there’s to Mexico. And because it was a small State, no growth today, if you look at France even I knew who they were and what they did when they had growth, the unemployment for a living. I was quite proud of the fact rate in the last 5 years never going below that before I left office, I brought one of 9.5 percent, it is clear that a wealthy country them back, because our people were doing can only grow wealthier in terms of jobs and a better job in productivity and product income at a time when the global economy modification, just like you are. is growing and they are selling more of their And so I want to talk a little bit today just products and services beyond their borders as briefly as I can, because Mr. Zeien has as well as within their borders. Nobody has already said how this plant and this company ever been able to demonstrate the contrary will benefit if NAFTA passes. Everybody to me in the modern world. knows there will be some winners and some So therefore, one of our biggest problems losers. But there’s a lot of sort of fogginess in America today is no growth in Europe, about why this is good for America or why no growth in Japan. One of our biggest op- it’s bad. And I want to go through this be- portunities is that Latin America, including cause I need your help. And the Congress Mexico, is the second fastest growing part needs your help, not his help. With all due of the world. And it’s right here handy, and respect to him, Members of Congress know they like to buy our products. most business people are for NAFTA, but The second thing I want to say is this: A they can figure out that if you’re smart and lot of the problems people have with this you’re running a business, you can benefit NAFTA agreement they have because they six and one-half dozen of the other. That is, believe that the present relationships we you could benefit in Mexico or in the U.S. have with Mexico have encouraged people, So the Members of Congress want to know because wages and cost of production are that you’re going to win if it passes. And you lower there, to go to what is called the hired them; so they should want to know if maquilladora area. It’s right across the Amer- you’re going to win, right? They work for you, ican border in Mexico. If you produce there, just like I do. you can send your product back into our The first thing I want to say is, I have lived country duty-free. We created that several with the manufacturing changes of the last years ago since we wanted to help Mexico 15 years. And I would never knowingly do grow. But in the 1980’s when the global anything that would cost Americans jobs. economy got really tough and the screws I am for this agreement for quite a few were tightened on company after company reasons. The first and big reason is this: after company, a lot of people said, ‘‘Okay, There is no evidence whatever that a wealthy we’ll move down there.’’ country cannot only grow wealthier but can Now, here’s the second reason I’m for actually create jobs and raise incomes unless NAFTA. All the problems associated with the it expands trade and promotes the growth maquilladora issue will get better if we adopt of the global economy. Why? Because if you it, and they won’t if we don’t. That is, forget have a stagnant economy, when, as you know, about selling razor blades in Mexico. Just you can move money around the world in imagine what’s going on to the plants that a millisecond—technology can be adapted have moved down there. If this agreement

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passes, labor costs in Mexico will go up more all shift and take one another’s job and we rapidly, environmental costs will go up more couldn’t repeal the changes. They’re going rapidly. Their requirement that products sold to happen. in Mexico be produced in Mexico will be re- So we have to decide, are we going to duced. We’ll go from selling one to 50,000 make these changes our friend or our or 60,000 American cars in the first year this enemy? Or are we going to have more Gil- agreement goes into effect. Their tariffs will lettes or more plants close down? Are we go down. going to find more markets so we can secure So I understand the resentments, the the jobs we’ve got, add more jobs, and so fears, the insecurities of people, probably a companies can afford to give pay raises to lot of them who work within 20 miles of this their employees, or not? That is what is at plant. But we’ve got to read the agreement. stake. The agreement makes those problems better, There are a lot of misconceptions about not worse. And that’s the other reason I’m Mexico. A lot of people say, ‘‘Well, we’ve got for it. a trade surplus with them now, but only be- Finally, just let me say this: There will be cause they’re buying our plant and machinery some people who will be dislocated. There so they can put up plants that 5 years from always are. If you have a trade agreement, now they’ll be shipping all this stuff back just as President Kennedy recognized in here, and we’ll have a trade deficit.’’ Let me 1962, there always are. I intend to ask the tell you something: 40 percent of the dollar Congress to literally revolutionize the unem- value of our exports in the entire world are ployment and the training system in this in capital goods, that is, things that can be country. used in manufacturing; 60 percent in con- You know, the average person who loses sumer products. But in Mexico, only 33 per- their job today does not get called back to the same company. That’s the way it was for cent of their purchases of our products are 40 years. It’s not true anymore. The average in capital goods; two-thirds in consumer person who loses a job today has to go find products, like razor blades; two-thirds—more a job with a different company. Often it’s a than the global average. That country now very different kind of job. is the second biggest purchaser of American I agree with what Senator Kerry said: It’s products. There’s 90 million people there, one thing to talk about changing work seven and they’re handy. times in a lifetime and another thing to do And you say, ‘‘Well, what do they get out it. If every one of you stays with Gillette until of this deal?’’ I’ll tell you what they get out you retire, I’ll bet you anything you’ll have of this deal. If we adopt this deal, it will be to change what you do. If every one of you safer and more secure and more attractive stays with this company—some of you are for Americans to invest in Mexico, not along quite young—for 20, 30, 40 years, you know the border to export to America but down as well as I do, 10 years from now the nature in Mexico City or over in Vera Cruz or in of your work will be different than it is today, other places to put them to work making even if you have the same employer. Isn’t products for themselves. And that’s good for that right? you, too. Why? Because if more of them have I know how different these machines are. jobs and the more income they’ve got, the How long ago was it when there wasn’t any- more products of ours they can buy. body on an assembly line reading a com- Now, we have a trade problem in America puter? How long ago was it that you had to today, but it’s not with Mexico, and it’s not do all your quality checks visually and it took with Latin America. Tiny Colombia has in- longer and not as well? I mean, the world creased their purchases of American prod- is changing. ucts 69 and 64 percent in the last 2 years. So as cruel or tough as it is, we can’t pre- What’s our trade problem: $49 billion trade tend that it’s not going to happen. You deficit with Japan; $19 billion trade deficit could—if we can’t get all our titles straight- with China; $9 billion trade deficit with Tai- ened out, you could give us all—we could wan. We’ve got a $5.7 billion trade surplus

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with Mexico, and we’re worried about them, in the previous 4 years. We’re tackling the when they want to buy more of our products? health care issue. We’re tackling the deficit Look, the people that are against this have issue. Interest rates are at a 30-year low. We legitimate fears and resentments and anger. are moving in the right direction. But I’m There were a lot of workers that were thrown telling you, nothing I do as your President in the streets over the last 15 or 20 years. within the borders of the United States can We have gone through two decades when create more jobs and higher incomes unless a lot of hourly workers never got a pay raise. somebody buys the stuff we produce. And We are having a tough time creating jobs and that requires us to expand our market. Help income. But we don’t want to cut off our us to do that by personally telling the Mem- nose to spite our face. We can’t let this trade bers of Congress you’d appreciate it if they agreement become the flypaper that catches vote for the NAFTA agreement. all those fears, because it will make it better Thank you, and God bless you all. not worse. So I say, if you believe that, because you NOTE: The President spoke at 3:20 p.m. on the know what the experience of this company factory floor. In his remarks, he referred to Alfred is, I want you to sit down and write a letter, M. Zeien, CEO, Gillette Co. This item was not not a pressure letter but a nice letter. Really, received in time for publication in the appropriate just two lines, to the Senators, to the Con- issue. gressmen, or collect them all up and send them here and let them send them in. But they need to know that there’s somebody out Teleconference Remarks on the here in Massachusetts, somebody out here California Fires in south Boston, somebody in the entire United States that’s going to make a living October 30, 1993 out of this deal, that understands that we’re The President. Hello? going to get more jobs and higher incomes James Lee Witt. Good morning, Mr. and more opportunities if we do this. Be- President. cause if we turn it away, it’s really going to The President. Have we got James Lee? be a terrible thing. Mr. Witt. Yes, sir. I have Roger Johnson You know, we actually get a trade advan- with me, the Administrator of GSA, at the tage over the Japanese and the Europeans disaster field office here in Pasadena. Sec- in Mexico if this passes? And if it fails and retary Espy is also on, who is at the Oak they still need the money to develop their Grove fire camp in southern California. country, what are we going to do, what’s Gil- Secretary Espy. Hello, Mr. President. lette going to do in Mexico if they turn The President. Hello, Secretary Espy. around and give that trade advantage to How are you? somebody else? If they offer this same deal Secretary Espy. How are you doing, sir? to somebody else, I’ll guarantee you the Japa- I’m at the Oak Grove fire camp near Alta- nese, the European Community would take dena, California. this deal in a heartbeat. This is a good deal. Mr. Witt. Also, Mr. President, we have It is no accident that the Ministry of Trade Senator Feinstein and Senator Boxer on, and in Japan has come out against this deal. It Dick Andrews, the California director of is a good thing for us. emergency service is here in the disaster field So I ask you to talk to your friends and office with Roger and I. neighbors, talk to the people who are worried about it, tell them their fears are well-found- [At this point, Mr. Witt, Director of the Fed- ed, but they don’t have anything to do with eral Emergency Management Agency, re- this agreement. This agreement will make it ported on conditions in California and dis- better. And meanwhile, we will keep working cussed Federal, State, and private efforts to to build the security that Americans need. deal with the disaster.] We’ve already had more private sector jobs The President. That’s good. That’s very come into this economy in 9 months than good.

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[Mr. Andrews discussed the improvement in The President. Well, we should be able weather conditions which helped in fighting to help California with that. the fires, the number of fires still burning, Secretary Espy. Yes, sir. and deployment of State and Federal re- The President. We know how to do that. sources to fight the fires. Secretary Espy. We are. The Soil Con- Mr. Witt then asked if the President had servation Service will be taking the lead in any questions.] the rehabilitation exercises out here. The President. No. I want to say before The President. Is Jim Lyons out there I go on to Secretary Espy that I have just with you? been terribly impressed by the work of the Secretary Espy. Jim Lyons is here. He’s people who have been out there fighting the been here for a couple of days. Now, he’s fires. I know that we have provided from the a little bleary-eyed, he had to get up this Federal Government a lot of the firefighters. morning to do a bunch of things, but—— And of course, there have been the folks here The President. He used to be a fire- at the local level. But it’s been really amazing fighter, didn’t he? to me just to watch and see how hard they’ve Secretary Espy. Yes, he said he did. worked. We’re in a place that looks like a—— As you know, Mack McLarty, who is here The President. We just thought he ought with me now, has been coordinating this to have a little continuing education. [Laugh- from our end, so I’ve been pretty well briefed ter] all along. I also want to say I’m very pleased Secretary Espy. That’s right. We need that the Insurance Association is going to those pale guys to get their hands dirty every have people in the disaster assistance area. now and then. That’s something, as you well know, James The President. I really appreciate you, Lee, all of us could have used for years. And Mike. Thank you. that’s a very, very good sign, and I thank Secretary Espy. Well, thank you. Thank them. you. I just can’t say enough about the good Maybe I should hear from Secretary Espy work. It’s very prompt, very vigorous, effec- and Roger Johnson and Senator Boxer and tive. And you know, they’ve been out here Senator Feinstein, and maybe then I’ll see from day one, many without sleep, without if we’ve got any questions. rest, and it’s just incredible to be here. It’s [Secretary Espy reported to the President on great. the Kinneloa fire, the highest priority fire at The President. Is Roger Johnson on? that time, and the efforts of firefighters.] Roger Johnson. He’s here, Mr. President. The President. How much Federal land Good morning. have we lost out there? The President. You saved your home, Secretary Espy. Oh, gosh. We’ve got didn’t you? 150,000 or so acres already burned. Mr. Johnson. Yes, sir. They saved it. The President. But a lot of it belongs to The President. Congratulations. the Federal Government, doesn’t it? [Mr. Johnson gave a brief description of the Secretary Espy. Yes, sir. efforts of the General Services Administra- The President. Twenty thousand or thirty tion’s efforts to respond to the disaster and thousand acres, something like that? a personal view of the losses and firefighting Secretary Espy. We’ve got two major na- efforts.] tional forests out here, and it’s under pretty good attack here. The problem in the future, The President. That’s great. How many of course, once the fires have receded, is re- homes were lost, 350 in Laguna alone? vegetating and reseeding, making sure that Mr. Johnson. Yes. About 700 overall, I in the Forest Service area, we can do a lot think. Jumped into an area, Emerald Bay, of rehabilitation. And so that’s what we’ve where we used to live. So there were a lot got to turn our attention once the immediate of our friends there, and I think the home situation abates. we used to live in is gone as well.

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[At this point, Mr. Witt reported on plans the way out there. They’ve got a lot of work for Federal and State authorities to meet with to do. The thing, I think, is pretty well in California insurance associations to provide hand now if they don’t have a resurgence of for special needs in the application centers.] the winds. So we’re all basically going to— The President. Thank you very much. it’s quite early there, it’s still 7 a.m. in the Senator Feinstein, Senator Boxer? morning. And we’re just going to spend the Senator Feinstein. Good morning, Mr. next 4 or 5 hours waiting for the weather President. How are you? reports. The President. I’m fine. I’ve got to do the radio address, folks. [Senator Feinstein described the mobilization and organization of State firefighting strike NOTE: The President spoke at 9:45 a.m. from the teams and described Firescope, a unified Oval Office at the White House. A portion of this command of Federal, State, and local au- item could not be verified because the tape was thorities for dealing with the disaster.] incomplete. The President. Thank you. Thank you, Senator. James Lee, I think you and Mike—— The President’s Radio Address Senator Boxer. Do you have room for one October 30, 1993 more Senator? The President. Yes. I’m going to call in Good morning. In the next few days, you’ll just a minute. I just wanted to say to James have the chance to pick up what may be the Lee and Mike Espy, I think you ought to most important book of information you’ll make a recommendation to me on what we read for yourself, your children, your parents, should do on this unified command issue and others you care about. It’s a book that’s after you get back. also very important for the future of our Na- Senator Boxer, the floor is yours. tion. The book is called ‘‘Health Security: [Senator Boxer described the devastation, The President’s Report to the American Peo- commended FEMA for its response to the dis- ple.’’ And while it deals with a very complex aster, and expressed her thanks to the Presi- issue, the overhaul and reform of our health dent.] care system, it does so in straightforward, very human terms. The President. Thank you, Senator. I The book describes our plan to solve the want to thank both the Senators. And, Dick Nation’s health care crisis by guaranteeing Andrews, I thank you, and through you Gov- every working American comprehensive ernor Wilson, you tell him that if there’s any- health care that’s always there, that can never thing else we can do, you just pick up the be taken away. While many people worked phone and call. And, to Roger Johnson and Secretary Espy hard on this book, especially the First Lady and to James Lee Witt, I thank you all for and her task force on health care reform, in your quick response, and I can’t wait to talk many ways, the book was written by you, the to you some more in person after the fire American people. For a long time, since I dies down some more and we make sure that was the Governor of my State, I’ve been talk- we don’t forget them when the fire’s gone. ing with Americans who, against their will, We’ll be there for the followup. become all too familiar with the failings of I thank you all, and I hope you have a our health care system, Americans caught good day and keep those winds away out without insurance or with inadequate insur- there. Thank you. Goodbye. ance when they or a loved one became ill and when they needed the coverage the [At this point, the teleconference ended.] most, people who had their bank accounts Q. Are you going to California? emptied, their trust in the system betrayed, The President. I don’t know that yet. and too often their hearts broken. We’re going to monitor the winds today. Many of you listening today know someone That’s the big issue. I don’t want to be in who has fallen through the cracks of our

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health care system. These cracks have be- Americans whose insurance companies gam- come chasms that swallow hard-working ble under the current plan that they won’t Americans. More than 37 million Americans get sick. Is it fair to ask them to pay a little don’t have health insurance at all, and 25 mil- more so we can have broad-based commu- lion more have very inadequate coverage nity rating? I believe it is. Why? Because with very high deductibles. Every month, there are lots of young people who can’t get 100,000 Americans lose their health coverage insurance at all, because all these younger permanently. people will be older themselves someday, Who are these people caught in this bro- with children, and they’ll need this fair rate. ken system? They are a working mother with And when these young people do get sick a sick child who had to buy her own insur- or have an accident, or even marry someone ance and who, every month, must ask herself, with a preexisting health condition, well then, ‘‘Do I pay the rent or the medical bills?’’; all bets are off. The insurance company may a seventh grade teacher with breast cancer double their rates or drop them altogether. whose insurance provider disagreed with With our plan, their premiums may be a little doctors over her care, the teacher had to run higher, just a few dollars a month, but they’ll herself into debt to pay for her own chemo- therapy; a doctor, frustrated by miles of red- be guaranteed coverage no matter what hap- tape and forms that steal time he should have pens, and a guarantee that rates won’t rise with his patients. unchecked. These stories are not unique. Here at the That’s another thing I want to emphasize. White House, Hillary and I have had over Under our plan, there is a limit to what any- 700,000 letters about health care, and 10,000 one can have taken away from them in health more pour in every week. Every one of them care. That’s not true today. So 100 percent is a cry for action. So now we have a plan of the American people get something no for action. Our health security legislation is one has today, absolute security. This plan a detailed bill to provide comprehensive, uni- is based on the principles of security, simplic- versal coverage for our people. Of course, ity, savings, maintaining the quality of our it’s only fair to ask who pays and how much. health care system, maintaining and even in- There’s been some confusion on this, so creasing choice for consumers of health care, today let me give it to you straight. Under and insisting on more responsibility. our plan, 60 percent of all the American peo- We focus on keeping people healthy, not ple will pay the same or less to get the same just treating them after they get sick. We re- or better benefits. I’ll repeat that: 6 out of duce paperwork and crack down on fraud. 10 of all Americans, and even more as the We protect the right to choose doctors and reforms begin to take effect and cost in- preserve and strengthen Medicare. creases go down, will pay the same or less Right now I’ll say again: There is no guar- for the same or better benefits. antee for anyone that health care will be About 25 percent of our people, people there tomorrow. One of our citizens wrote who are now underinsured or people without us and said even employed insured people insurance at all who can afford to pay, will are one major illness away from financial dis- pay a little more for coverage. But many of them will actually pay less in medical bills. aster. Right now, there are lots of people with Before the end of the year, I want our law- cheap premiums, because their deductibles, makers to pass a bill to guarantee health se- their up-front costs are so high, $2,500, curity for every American. That’s the end of $3,000, even $5,000. Under our plan, their the congressional session next year. And I premiums may be a little higher, but their want to be clear on this. We’ll debate many out-of-pocket costs will be lower. points of this plan, but this point must remain Finally, about 15 percent, and only 15 per- nonnegotiable: The health care plan must cent of the American people or their employ- guarantee every American a comprehensive ers, will pay more for the same benefits. package of benefits that can never be taken These are the young, healthy, usually single

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away. And I will only sign a bill into law that Memorandum on Trade With Japan meets that fundamental commitment to the October 29, 1993 American people. We have delayed making good on it for too long. Presidential Determination No. 94–3 Our lawmakers have a big job ahead, but they won’t be alone. We’ve seen extraor- Memorandum for the United States Trade dinary support from both parties to reform Representative health care. And I promise to work with Con- Subject: Delegation of Authority to Modify gress every step of the way. As a responsible or Restrict Title VII Trade Action Taken citizen, you have a job, too. Learn all you Against Japan can about this plan. Start with a book called ‘‘Health Security,’’ and join the debate. By the authority vested in me by the Con- Thanks for listening. stitution and laws of the United States, in- cluding 3 U.S.C. section 301, I hereby dele- gate to the United States Trade Representa- NOTE: The President spoke at 10:06 a.m. from tive the powers granted the President in sec- the Roosevelt Room at the White House. tion 305(g)(2) of the Trade Agreements Act of 1979, as amended (19 U.S.C. 2515(g)(2)) to modify or restrict the application of sanc- Statement on the Peace Process in tions that were imposed upon Japan as a re- Northern Ireland sult of the identification of Japan as a country that discriminates against United States October 30, 1993 products or services in government procure- I welcome the efforts of Irish Prime Min- ment of construction, architectural and engi- neering services; 58 Fed. Reg. 36226 (July ister Albert Reynolds and British Prime Min- 6, 1993). ister John Major to reinvigorate the negotia- This delegation of authority is effective tions for peace in Northern Ireland. I join until November 8, 1993. You are authorized their condemnation of the use of violence for and directed to publish this determination in political ends and strongly support their com- the Federal Register. mitment to restart talks among their two Governments and the four constitutional par- William J. Clinton ties of Northern Ireland. Their joint state- ment issued yesterday in Brussels under- [Filed with the Office of the Federal Register, scores their common resolve to work for 11:37 a.m., November 1, 1993] peace, justice, and reconciliation in Northern Ireland. The United States stands ready to NOTE: This memorandum was released by the Of- support this process in any appropriate way. fice of the Press Secretary on November 1, and All friends of peace were outraged at the it was published in the Federal Register on No- tragic and senseless IRA bombing in Belfast vember 2. on October 23 and the ensuing violence. Es- pecially in the wake of such action, we must redouble our efforts to reject violence and Teleconference Remarks on NAFTA pursue the path of peace. As we remember to the United States Chamber of the victims of the sectarian violence that has Commerce torn the region for too long, let us work to- November 1, 1993 gether to ensure that the vision of the two Governments demonstrated in their joint The President. Thank you very much. I’m statement bears lasting fruit. delighted to see all of you here and to know

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that there are people all across the country ment will actually make that less likely. And watching this important event. I thank the if we don’t pass it, it will do nothing to stop chamber of commerce for organizing this and what people who are complaining about it for providing the technology that makes it are complaining about. possible. I’m glad to see Governor Edgar of I would never knowingly do anything that Illinois here. And I listened intently in the would cost an American a job. My job is to back room there to my former colleagues, try to recover the economic vitality of this Governor Wilson and Governor Weld, talk country by working in partnership with the about NAFTA. I want to thank Dick Lesher private sector. It is important, it is imperative and Ivan Gorr and Larry Bossidy for their that we make it clear to the American people, work through USA*NAFTA and the cham- first of all, that you ought to look at what ber of commerce to help us pass this very this agreement does: It helps to alleviate the important piece of legislation. And I think problems that led to so many jobs moving former Congressman Bill Frenzel, who’s the out of our manufacturing sector, either into cochair of our effort, is here somewhere. I machines or offshore, whether to Mexico or want to thank him for making our bipartisan to other places. administration effort as successful as it’s I want to acknowledge that in Cincinnati been. today, Congressman David Mann is there I know that there are people all over the with 130 people at the General Electric air- country here, but if you’ll forgive me for a craft engine plant. I think if NAFTA passes little bit of parochialism, I want to observe we’ll not only sell aircraft engines from Cin- that there are 150 people from my home cinnati, we may even sell some of that Cin- State of Arkansas listening at the Excelsior cinnati chili, too. In Seattle there are 100 Hotel in Little Rock, where we had the eco- people in attendance at the Lake Washington nomic summit last December, and one of our Technical College. One in six jobs in the good employers I just shook hands with on State of Washington are related to trade the platform up here. today, and by the time most of the students I say that to make this point: Any Governor at that college hit their stride, even more jobs will tell you that the job of being Governor will be dependent on trade. today is the job of getting and keeping jobs I have to tell you that again I have heard and educating and training people to do all the debates on this issue. I have listened them. That is the lion’s share of the work, carefully to the opponents and the support- on a daily basis, of doing that job. For a dozen ers. I have never heard anyone seriously years, it was my job to try to deal with the argue that a great country with a high per pressures of global competition, the enor- capita income can expand its incomes or its mous economic difficulties of the 1980’s. jobs without expanding trade. There is simply When plants closed, I knew people’s names no way to do it. There is no example any- who ran the plants and worked in the plants. where now of a country that can grow more When people closed their plants and went jobs without selling its products beyond its to Mexico, I knew about them. And I was borders. And that, in the end, is the most proud that of the three or four we lost when important lesson we have to learn if we’re I was Governor, we actually brought one going to make a good decision about back before I left office. It made me feel NAFTA. that in part, we had squared the circle. When I became President, I had a very The point I want to make is this: Anybody clear set of priorities in my mind about what who has ever dealt with these issues knows I thought we ought to do with this economy. that most of the arguments being raised I knew we had to try to bring the deficit down against NAFTA today are arguments being and get interest rates down. And it’s im- raised about economic forces and develop- mensely gratifying to have the lowest home ments that occurred in the past. And anybody mortgage rates in 25 years, the lowest 30- who has ever read the agreement knows that year rate since we’ve been calculating them if you don’t like it when people shut plants come out in the last few months, to know down and move to Mexico, that this agree- that the deficit came in $55 billion less this

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year than we were told it would be on Janu- then to say to our friends in Asia and our ary 20th. But I also know that even though friends in Europe that it’s okay for you to there are indications that we see an increase have trading blocs but we need to open up in investment in homes, in cars, in long-term trading worldwide. We need that. If we don’t investments by businesses, in the end this pass NAFTA, our leverage to get that done economy will not grow unless we sell more will be much more limited. of our products and services beyond our bor- So I say to all of you it is important not ders. We cannot simply create a healthy only on its own terms, but this issue has ac- economy only by changes here. quired an enormous significance because of The other day we announced our new ex- the advantage it will give us in the Mexican port initiative, which among other things re- market over our competitors in Japan and moved over $35 billion worth of high-tech Europe and because of the leverage that will equipment from export controls and opened then give us to get a worldwide trade agree- those things to the international market, ment that the world desperately needs to re- computers, supercomputers, telecommuni- store global growth. Without that, we’re not cations equipment. Someone has to buy going to be able to sell our products; we’re them. In the last 2 years, Mexico has gone not going to be able to create more jobs; from purchasing 390,000 to 600,000 comput- we’re not going to be able to see our workers’ ers, just from one year to the next. But incomes go up. With it, we have the prospect 600,000 in a consumer market of 90 million of having several years now of sustained, vig- men, women, and children is not so many. orous economic growth because we are get- Think what will happen when the barriers, ting control of our economic house; we are the tariffs, go down, when there is no 20 per- putting things in order; we are getting our cent tariff barrier. And think what it will be priorities straightened out in this country; we like when that tariff barrier is down for us are focusing on investment and on training. but not for our major competitors. We’ve We have to have the markets. been on the opposite side of that fence a Now let me just say one final thing about lot of times. Now we’re going to be given this. I think if there were a secret vote in preferential treatment in a market that we’re the Congress today, we would win. Now, going to help develop. It’s a very, very impor- that’s a big issue, winning the secret ballot. tant issue. I say that not to criticize anyone or to put I want to say to all of you that if we don’t anyone down but to recognize that the pres- approve NAFTA, it will weaken our ability sures against NAFTA are enormous. But they to get a General Agreement on Tariffs and reflect, as I have said many times in many Trade passed by the end of the year. If we places, the accumulated frustrations and do approve NAFTA, it will not only put us grievances and insecurities people bring to in a stronger position with Mexico and with this day in American history. More and more all the rest of Latin America, it will help us people are worried about losing their jobs. to say to our trading partners in Europe and More and more people know if they lose in Asia what we really need is to continue their jobs, they won’t get it back. That’s true. to expand trade worldwide. That’s true. We have an unemployment sys- The real job gains in NAFTA come not tem premised on a set of conditions that no just from passing NAFTA, although we are longer exist, you know, you lose your job, and convinced it will create 200,000 new jobs by then the recession’s over and your old com- 1995. The real job gains come when we take pany hires you back. That only happens about that NAFTA agreement and we take it to one in five times now. Chile, we take it to Argentina, we take it to So there is all this uncertainty out there Colombia, we take it to Venezuela, we take in America today. I understand that. And our it to the other market-oriented democracies administration has done what we could to try in Latin America and enable us to create a to alleviate the insecurities of the American consumer market of over 700 million people, working families. The family leave law was soon to be over one billion people, early in designed to say to people, ‘‘You can be a good the next century, and we use that leverage worker and a good parent.’’ The attempt to

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control health care costs and still provide all out of proportion, all out of proportion health care for everyone is an attempt to say, to the impact it could have. You saw on that ‘‘Yes, you may lose your job, but at least your film there are several unions, many major family can be taken care of.’’ The attempt unions in this country, who are going to gain that the Congress is making now on a biparti- jobs if this passes. But they decided that san basis to pass a new crime bill is a way NAFTA would be the receptacle in which of saying, ‘‘We know you have to feel safer all the resentments and fears and insecurities on your streets. If you work hard and play of that last 12 to 20 years of stagnant wages by the rules, you shouldn’t worry about hav- and economic difficulties would be poured. ing your children shot going to and from It has acquired a symbolic significance for school.’’ those of us who are for it, too. This is a huge But with all of this, we cannot turn away diplomatic, foreign policy, and economic from the global economy that is engulfing issue for America. You simply cannot divide us. And what I want to ask all of you to do, domestic and foreign policy anymore, as you every one of you listening to me today, is once could. This is a major thing for the to think about what you can do between now United States. If we walk away from this, if and November 17th, either directly by con- we walk away from this and Mexico decides tacting a Member of Congress or indirectly to pursue its development strategy, what by getting employees or friends or others to must it do? It must make this deal with Eu- contact Members of Congress to say, ‘‘We rope or with Japan. And what would that do? know America can compete and win. We are That could change the purchasing habits of not going to turn tail and run. We have not 90 million Mexicans and hundreds of millions given up on America.’’ of people in Latin America. It could cut us The Mexican economy may have 90 mil- off from not only economic but political op- lion people, but today it is the size of Califor- portunities to promote democracy and free- nia from Los Angeles to the Mexican border. dom and stability in our hemisphere that we The idea that America is just going to shrivel can now only imagine. up if we adopt this trade agreement is ridicu- If we embrace it, we not only will get in lous. This trade agreement is a door that the immediate future a competitive advan- opens all of Latin America to us. It is a lever tage in selling into the Mexican market, a that will open a broader trading system in way of embracing all of Latin America, but the world to us. And we cannot run away. the security of knowing that America is still We’ve got to compete and win. You have to marching in the right direction, that we are be, in other words, the engines of confidence on future’s side, that we are grasping for a in our future. And employees, people who time when our people will be able to com- work with you who understand this, can have pete and win in a global economy that will a huge impact on turning what is now only be less protectionist, more open, more full a secret ballot victory on NAFTA into a pub- of opportunity, and more full of peace and lic victory on November 17th. democracy. This is a huge issue. This is a difficult time for America. And So I will close with this plea to you. This it’s hard for people to have confidence when is not exactly like a church service. I know they’ve been battered and pushed around I am preaching to the saved, as we say at and worried. But we cannot turn away from home, but you all have to be missionaries. the future that is there before us. I honestly We only have 17 days or so. We need you believe the next 20 years could be the best to go out and make sure that your Members 20 years this country ever had if we have of Congress, every man and woman in the the courage and the vision to take advantage Congress that you can reach, is contacted by of the end of the cold war, the continued real people who say, ‘‘My life will be better.’’ efforts to reduce nuclear arms, the fact that I don’t know how many Members I’ve heard economic competition may expand oppor- from both parties saying, ‘‘All the organized tunity for everyone if we do it right. vote is against this. I’d just like to hear from When we started, NAFTA had a signifi- a few people who will rationally tell me that cance for those who were fighting against it their lives will be better and that our country

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will be better off and that our district will well-organized you are, and whether you can be better off.’’ sell. Please do that. Don’t miss a chance to do The second thing I would say is there is it. Don’t wake up on the morning of Novem- this fear, because of what’s happened to us, ber 18th and wish that you had done some- because we’re going through this wrenching thing to give America a brighter future; to restructuring, that is emotional, that we can’t give our hemisphere a more solid, more compete and win anymore. And that’s just democratic, more market-oriented future; not true either. We’re going to have to be and to open up the future in a way that is able to suit up and go out and play and win. worthy of our country and that I am con- That’s the attitude issue: Do you believe that vinced is absolutely essential for our long- this country can win or not? I mean, we’re term success. We need your help. Many of gaining back market share in autos, American these Members, you can have more influence autos, shoving our foreign competitors out on them than I can, because I can only vote of the American market because of quality in one congressional district every 2 years. and price. And there are lots of other exam- You can vote in all of them. We need your ples. Our manufacturing productivity’s gone help. up now for a dozen years at an annual rate Thank you very much. of over 4 percent a year. This is nuts, this Meryl Comer. Ladies and gentlemen, the idea that we can’t compete and win. It is true President has agreed to take some questions. we’re having trouble creating large numbers Behind you are small business owners. They of new jobs. That is true for every wealthy all are wearing NAFTA buttons, but there’s country in the world. We have to solve that one man who’s wearing an attitude button problem. But no one can solve it without as well. Would you like to ask the President more markets. a question? Those are my answers, and I thank you. [At this point, a participant requested the Ms. Comer. Please raise your hand for President’s response to people who favor pro- questions. Mr. President, while I’m trying to tectionism.] find a question, there’s a gentleman who got The President. I respond in two ways. up at 3 this morning, milked the cows, and Number one, most of those people believe came because he cares about NAFTA. If you that all managers make all decisions based shook his hand he’d have stories to tell for on labor costs. If that were true, what you years. He’s right behind you in the white would be reading this morning about Haiti shirt. is not whether a police chief and an army The President. Where is he? I want to guy want to make it even poorer, even say this before you get to the question: That though it’s already the third poorest country man is a dairy farmer, and sometimes I feel in the world. What you would read is that sorry for myself—if you think you work hard, Haiti had all the manufacturing jobs in Amer- you ought to start a dairy farm. It’s a 24- ica, right? I mean, if this were a case of low hour-a-day, 7-day-a-week job. I never could wages, the headlines on Haiti today would figure out how any of the dairy farmers in be ‘‘General Motors shuts down in Michi- my State even made it to their kids’ high gan,’’ ‘‘Caterpillar leaves Illinois, goes to school graduation. But I thank you for com- Port-au-Prince,’’ right? Number one, it’s not ing here today. factually true that labor costs or environ- [Another participant asked about the eco- mental investments are the only thing in- nomic impact if NAFTA is not passed.] volved. Germany, which has a trading system The President. Let me say, first of all, to arguably more open than ours and higher the opponents of NAFTA, you can’t name labor costs, has almost one-third of its work a single solitary thing you don’t like that force in manufacturing, almost twice the per- wouldn’t continue to happen at maybe a centage we do. It’s simply not true. How well greater pace if it fails. So you don’t gain any- you do in production of goods and services thing by beating it, for the people who are depends upon how productive you are, how against it.

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In addition to that, if Mexico follows the [The participant asked if NAFTA would in- same strategy—let’s ask rationally, what do crease illegal immigration.] they get out of this deal? If it’s such a good The President. It won’t. There’s no evi- deal for us and we sell even more consumer dence that it will. I can’t even figure out that products—they are already the second big- argument. I stayed up late trying to figure gest purchaser of American products in the that one. I can’t figure it out. world, even though they’re by no means a To be fair, let’s talk about it. There is a wealthy country. They buy more per person sophisticated argument that development in than any other country in the world except Mexico increases immigration to America. Canada. What do they get out of it? They And let me tell you what it is and then say get development capital, not to invest to ex- why NAFTA makes it better. Most of the port back to the American market but to people who immigrate from Mexico to the build up Mexico. That’s what they get. United States illegally are looking for jobs. Now, if they stay with that strategy and Some are looking for welfare, but most are we turn them down, what do you think looking for work. When we set up the they’re going to do? There’s only two places maquilladora system along the Mexican bor- they can get it. They can make the same deal der—which, after all, was set up by our Gov- with Europe or the same deal with Japan, ernment to help Mexico develop, right?—the which means they will give them preferential idea was you could go down there and put access to their market instead of giving us up a plant and then export back to the United preferential access to their market. Which States duty-free. So a lot of people who don’t means that you, sir, will have to face a 20 have access to other jobs in other parts of percent disability, if you want to sell into the Mexico come up there, they work in the Mexican market, against either the European maquilladora plant, but they can make more people doing more or less what you do or money in America. Or they come looking for the Japanese business people who do. That’s a job, they don’t get it, so they just—it’s very exactly what’s going to happen. close to the border. So you could argue that the maquilladora system has perversely in- In addition to that, we will probably see creased illegal immigration. a reversal of the good feeling that now exists How will NAFTA reverse that? It erases for the United States in Mexico and through- the maquilladora line. This will permit in- out Latin America and the opportunity to do vestment to occur in Mexico City and south this same deal with other countries—I men- of there. This will permit a balanced develop- tioned a few, Chile, Argentina, Colombia, ment approach so there will not only be more Venezuela; there are others—none of whom jobs and higher incomes, but they’ll be will be getting investment to export back to strewed out all over the country instead of the American market, but all of whom will right there on the American border, all of buy more American products. Those oppor- which will reduce illegal immigration long- tunities will also be lost. term. So, this is a good deal for this country. And Also, since you said that, if NAFTA passes not doing it, conversely, is a very, very dan- we will get much more cooperation from the gerous strategy. It’s a dangerous strategy eco- Mexican Government in enforcing our immi- nomically; it’s dangerous politically. It will gration laws and our drug laws. There’s no hurt us in the short run, and it will hurt us question that we’ll get a higher level of co- for 20 years. I am convinced it is a terrible, operation on both those very important terrible mistake. issues if this passes. Ms. Comer. Do you have time for one Thank you. more, Mr. President? Ms. Comer. Was that answer worth your The President. Sure, I’m with you. trip? Ms. Comer. This gentleman flew all the Q. Absolutely perfect. And I’ll go home way in from California. He didn’t want to and tell—— talk to the Governor, he wanted to talk to The President. Don’t you think it’s the President. Please go ahead. right——

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Q. You’re absolutely right. And I’ll go to do is to take a lot of these defense compa- home and tell the story for you. nies that are losing their defense contracts The President. Thank you. and do partnerships with the Federal Gov- [A participant asked why many Americans ernment to give them the time they need feel U.S. businesses cannot compete.] to develop new technologies. You have to The President. Again, you see, I don’t find different products and more customers. agree with it. But we have lost a lot of manu- There is no other way. It has nothing to do facturing jobs in the last 20 years. We’ve with lower wages. That’s not what the prob- been losing manufacturing jobs for 35 years. lem is. But the percentage of our economy devoted Ms. Comer. Mr. President, your friends to manufacturing is just what it was 12 years from the Excelsior Hotel are trying to reach ago. In other words, what’s happening is you. we’re doing just what happened in agri- The President. I may owe some money— culture, going back to the beginning of this [laughter] century. You’ve got fewer people increasing Ms. Comer. They’ve gotten to you by fax. their productivity and therefore increasing It’s your Arkansas NAFTA coalition assem- their output. That doesn’t mean we can’t bled at the Excelsior Hotel. How is that compete, it means we have to get more and hotel? more productive to compete. The President. It’s a very nice hotel. Now, here’s my argument to the people Ms. Comer. Okay. All right. against NAFTA. Let’s say we’ve got 16 per- cent of the American work force in manufac- The President. Also to give you—it hap- turing today—it is 16 to 17—producing pens to belong to some Japanese investors about 20 percent of our national wealth. And who employ a lot of Arkansans. I mean, I let’s say that 15 years ago, I can’t remember, think that’s the world we’re living in. We but let’s say 15 years ago it was about 23 can’t run from it. We ought to embrace it percent—I think that’s about what it was— and figure out a way to win in it. producing 20 percent of our national wealth. Ms. Comer. Here is their question, Mr. If you want to go back to 23 percent, what President: If NAFTA fails, isn’t it reasonable do you have to do? You have to make more to expect that Japan and the European Com- things and sell them to more people. munity will step into Mexico and take much I will say it again: Germany, a country with of the market away from the U.S., thereby a shorter work week and higher labor costs costing U.S. jobs, not saving them? but extraordinary productivity in manufactur- The President. Well, I’ll tell you what I ing, has almost a third of its workers in manu- would do. If I were the Prime Minister of facturing. Now, do they account for 20 per- Japan and I had a low growth rate and I had cent of the wealth in Germany? No, they ac- my companies going crazy because they have count for about 40 percent of the wealth. So hidden unemployment, since they have in if you want to do more in manufacturing or theory lifetime employment—so they’ve got in services or in agriculture or in anything about 7 percent unemployment, but it only else, you have to have somebody to sell to. scores at 2.5 percent, which means all those So people have missed the—they assume companies are carrying idle workers on their that when the number of manufacturing books—I would jump on this like flies on workers go down, that the production’s going a junebug. I would be there on the next day. down because nobody’s buying it. In fact, If Congress votes this down on the 17th of production is just where it was. It’s just that November, I would, if I were the Prime Min- more people are more productive. ister of Japan, have the Finance Minister of So my answer to those folks is, if you want my country in to see the President of Mexico more people to work in manufacturing again, on the 18th of November. That’s what I find more customers. There is no other way would do. I’d say, ‘‘We’ve got more money to do it. Find new products and more cus- than they do anyway; make the deal with us.’’ tomers. This gentleman here in the environ- That’s what I would do. And if I were run- mental area, one of the things we’re trying ning the economic affairs of the European

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Community, I would do that same thing be- Let me also say that one of the things that cause it’s a new market for them at a pref- I think is worth pointing out is we all know erential rate, so they can actually push us out who’s against NAFTA, but it’s worth pointing of a new market that we’re already well es- out that 41 of the 50 Governors have en- tablished in. That’s what I would do; that’s dorsed it—and they make their living, with- what I think will happen. That’s what you’d out regard to party, they make their living do, too, isn’t it? If you were running—— creating jobs, keeping jobs—12 Nobel Prize Ms. Comer. Mr. President, you remember winning economists, and every living former the budget vote? President. I had several of them at the White The President. I do. As the Vice President House the other day, and we were trying to says, whenever he votes, he always wins. figure out if there was any other issue on [Laughter] which all of us have ever agreed. [Laughter] Ms. Comer. The speculation is that it’s Maybe something else equally controversial, going to come down to a pretty close vote, who knows. But I think that’s important. so I was trying to see whether or not you So, that’s the answer. The answer is yes, might have the same feeling about this vote I remember the budget vote. Yes, it could that you had about the budget vote. be close. But in order for it to be close, you The President. I’ll tell you what I think all have to push between now and then. If will happen. I think it will pass for the same it’s close, I think we’ll win. If they perceive reason the budget passed. I think what will it’s not close, then you’ll see a big movement happen is people will get up to the point of away from it just to avoid making anybody decision, they will look over the abyss, Mem- mad who’s arguing to vote against it. bers of Congress who have been subjected Ms. Comer. Thank you, Mr. President. to unbelievable pressure, and they will think, They’re here to help you. And thank you so ‘‘Can I actually do this to my country? What much for your time. are the consequences of not doing this?’’ The President. Thank you very much. Now, you can say whatever you want to about the details of the budget, it’s hard to NOTE: The President spoke at 12:35 p.m. at the argue with the conclusions. We’ve now got U.S. Chamber of Commerce, and his remarks very stable long-term low interest rates. were broadcast via satellite. In his remarks, he We’ve got investment going back up in the referred to Dick Lesher, chamber president; Ivan country. We’ve got America being com- Gorr, chamber chairman and CEO and chairman, plimented instead of condemned by the Eu- Cooper Tire and Rubber; and Larry Bossidy, ropeans and the Asians for getting control chairman, USA*NAFTA, and CEO, Allied-Signal, of our budgetary affairs. That’s what the Inc. The teleconference was moderated by Meryl Members of the Congress knew. So finally, Comer, chamber vice president of community de- they had to swap and squall and break, and velopment. everything happened, but we got enough votes to pass the thing. So, that’s what I think will happen with NAFTA. Remarks on Signing the Executive But let me say this, in order to win by Order on Historically Black Colleges a vote or two or three or four, you have to and Universities be close so that there is a magnet leading November 1, 1993 people to take the right decision. If the Members of the Congress who are under so Thank you very much, Mr. Vice President, much pressure from organized groups, Secretary Riley. Ladies and gentlemen, it’s whether it’s the Perot crowd or the labor a great pleasure for me to be here today with groups, if they sense that it’s not close, they my longtime friend chancellor Vic Hackley might run away from it in great numbers, and with so many of the distinguished per- which is why your efforts are so important. sons in the audience: Dr. Sam Myers; Dr. I honestly believe it will pass, but you need Joyce Payne; our longtime friend Bill Gray; to understand, that is the dynamic that will Dr. James Cheek, we’re glad to see you here; operate in the Congress. Dr. Art Thomas; General Alonzo Short is

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here, I’m glad to see you, General Short; and retary Bob Nash attended Howard. Our Sur- Mr. Emmett Paige, the Assistant Secretary geon General, Joycelyn Elders, was a grad- of Defense for Command, Control, and In- uate of Philander Smith. Sarah Summerville, telligence. And I also know that in addition my Alabama campaign coordinator and now to the Members of Congress already intro- at the Department of Defense, attended both duced, Congressman Bobby Scott from Vir- Mississippi Industrial and Miles Colleges. ginia just came in. Somewhere he’s standing; And there are many more. I saw him. Thank you for coming. The Executive order I sign today and all Now, since the Vice President was so paro- the education initiatives that Secretary Riley chial—[laughter]—I have four people here discussed have to do with change, preserving I want to introduce: my friends Dr. William educational institutions and ensuring that Keaton, from Arkansas Baptist College, in every young person in this country who wants the back there; Dr. Katherine Mitchell from to get a college education has the opportunity Shorter College, I saw Katherine over here; to do it and finding new ways to get people Dr. Lawrence Davis, from the University of into college and into training programs and Arkansas at Pine Bluff; and Dr. Myer Titus to help them succeed once they’re there. from Philander Smith College, where I used Since the average person will change jobs to run every day in my former life. seven times in a lifetime, and the 1990 census I am so glad to see all of you here. For makes it crystal clear the very harsh eco- 130 years the institutions you represent have nomic consequences of not having at least been beacons of hope and opportunity for 2 years of post-high school education, we Americans for whom no other options ex- know we have much to do. This year we have isted. You have nurtured young minds. You begun already by reorganizing the student have built self-esteem. You’ve educated some loan programs to cut their costs of overhead, of our Nation’s foremost scholars and lead- to lower the interest rates, to change the re- ers. When Thurgood Marshall was refused payment terms so that young people can now admittance to the University of Maryland borrow money without fear of being bank- Law School because of the color of his skin, rupted in paying the loans back. Now young it was Howard University Law School that people can borrow the money at lower inter- prepared him for the challenge, for the est rates and then elect to pay them back United States Supreme Court. Seventeen as a percentage of their incomes, without re- Members of the United States Congress are gard to the amount of the loan, so that no graduates of historically black institutions of one will ever be discouraged from borrowing higher education, as well as one United the money and, even more important per- States Senator who is not an African-Amer- haps, from taking a job after college which ican, Senator Harris Wofford from Pennsyl- might not be a high-paying job but which vania, a graduate of Howard Law School. might do an awful lot of good for our society, Martin Luther King’s way to Oslo, Nor- a job in our inner cities as a teacher perhaps way, to receive the Nobel Prize was, as the or working in a program to help our young Vice President said, plainly paved by the fact people. I’m very proud of the changes that that he was a Morehouse man. The rhythms we made in the student loan program, and of my friend Toni Morrison’s writings, which I thank Secretary Riley for his outstanding garnered her this year’s Nobel Prize in Lit- leadership in that regard. erature, are rooted in her study of classics We have also passed the national service and literature at Howard University. program which will give, over the next 3 to In seeking the best and most skilled Amer- 4 years, up to 100,000 young Americans a icans to serve here in our administration, chance to earn some credit against their col- graduates from historically black colleges and lege education and help to serve their com- universities have been a part of our team. munities at the grassroots level, to rebuild Energy Secretary Hazel O’Leary and the As- lives and to build their own minds in the sistant to the President for Public Liaison, process. Alexis Herman, are Xavier graduates. Agri- The Goals 2000 legislation, which Sec- culture Secretary Mike Espy and Under Sec- retary Riley mentioned and to which the Vice

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President alluded, will forge a new partner- war, with the receding threat of nuclear anni- ship between our National Government and hilation, with the clear evidence that, for all States and communities to set some mean- of our problems, our economy is doing better ingful national standards about what our than the other wealthy countries in creating young people should know, because we know jobs and promoting growth and that there that they’re going to be competing in a global is so much out there for us still to do. economy, and they’re entitled to have a shot But the truth is that we are squandering at the best we have to offer. our most valuable resource, our young peo- With this Executive order and working in ple, at a rate that no other nation would toler- close cooperation with Secretary Riley and ate. We permit so many of them to grow up Catherine LeBlanc, the Executive Director without the basic supports of family and com- of the White House Initiative Office, we’ll munity. We permit many of them to live in expand the opportunities for participation in circumstances, frankly, more dangerous than Federal programs. Ultimately, we’ll strength- those experienced by people we go halfway en the capacity of historically black colleges around the world to protect. And so many and universities to provide quality education. of them, by the time they are old enough Within the next few days, I’ll announce my for you to get ahold of them, aren’t there appointments to the Presidential Advisory for you to get hold of. Board on Historically Black Colleges and I say that not to end this on a down mo- Universities and will ask my longtime friend ment but to remind you of just how impor- and the former chancellor of the University tant this is, what you are doing. A lot of these of Arkansas at Pine Bluff, Vic Hackley, now kids still won’t have a chance if you don’t at Fayetteville State University, to serve as do your job well. And we have to find a way the Chair. for you to reach them at an even earlier I want to say a special word of thanks to point. And if we want to make it, we’ve got the current board, which was appointed by to find a way to remind the rest of America President Bush, for their service and com- that we are really all in this together. We mitment and especially to Dr. James Cheek cannot afford to have 11-year-olds thinking for his leadership. And I thank you, Dr. about their funerals. They need to be think- Cheek, for what you have done. ing about their children. You can do that. I’d like to close by mentioning a very dis- Thank you very much. turbing article that appeared in the morning paper here. You may have seen it, about chil- dren in our Nation’s Capital, not even teen- NOTE: The President spoke at 1:38 p.m. in Room 450 of the Old Executive Office Building. In his agers, discussing their own funerals, planning remarks, he referred to Sam Myers, president, their funerals, thinking about what they National Association for Equal Opportunity in would wear and what music they hope would Higher Education; Joyce Payne, director, Office be played. I am profoundly concerned as we for the Advancement of Public Black Colleges; take up the debate this week on the crime William H. Gray III, CEO and president, United bill, on the Brady bill, on the establishment Negro College Fund; Art Thomas, former chair- of boot camps as alternatives to prison for man, National Association for Equal Opportunity young people, on trying to get more law en- in Higher Education; and Lt. Gen. Alonzo E. forcement officers on our streets, that we not Short, Jr., USA, Director, Defense Information underestimate the gravity of the task before Systems Agency. Following his remarks, the Presi- dent signed the Executive order. us. Somehow we have to get those young people to you, and through you, to the world. I know this is a difficult, frustrating, per- plexing time. Every day the Vice President Executive Order 12876—Historically and I start the morning together talking Black Colleges and Universities about problems that have no easy solution. November 1, 1993 But I know that this ought to be a time of immense celebration and hopefulness for the By the authority vested in me as President American people with the end of the cold by the Constitution and the laws of the Unit-

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ed States of America, in order to advance Sec. 4. To carry out the purposes of this the development of human potential, to order, each executive department and each strengthen the capacity of historically Black agency designated by the Secretary shall, colleges and universities to provide quality consistent with applicable law, enter into ap- education, and to increase opportunities to propriate grants, contracts, or cooperative participate in and benefit from Federal pro- agreements with historically Black colleges grams, it is hereby ordered as follows: and universities. The head of each agency Section 1. There shall be established in subject to this order shall establish an annual the Department of Education the President’s goal for the amount of funds to be awarded Board of Advisors on Historically Black Col- in grants, contracts, or cooperative agree- leges and Universities (‘‘Board of Advisors’’ ments to historically Black colleges and uni- or ‘‘Board’’), a Presidential advisory commit- versities. Consistent with the funds available tee. The Board of Advisors shall issue an an- to the agency, the goal shall be an amount nual report to the President on participation above the actual amount of such awards from by historically Black colleges and universities the previous fiscal year and shall represent in federally sponsored programs. The Board a substantial effort to increase the amounts of Advisors will also provide advice to the available to historically Black colleges and Secretary of Education (‘‘Secretary’’) and in universities for grants, contracts, or coopera- the annual report to the President on how tive agreements. In order to facilitate the at- to increase the private sector role in strength- tainment of the goals established by this sec- ening historically Black colleges and univer- tion, the head of each agency subject to this sities, with particular emphasis on enhancing order shall provide technical assistance and institutional infrastructure and facilitating information to historically Black colleges and universities regarding the program activities planning, development, and the use of new of the agency and the preparation of applica- technologies to ensure the goal of long-term tions or proposals for grants, contracts, or co- viability and enhancement of these institu- operative agreements. tions. Notwithstanding the provisions of any Sec. 5. Each executive department and other Executive order, the responsibilities of designated agency shall appoint a senior offi- the President under the Federal Advisory cial, who is a full-time officer of the Federal Committee Act, as amended (5 U.S.C. App. Government and who is responsible for man- 2), which is applicable to the Board of Advi- agement or program administration, to re- sors, shall be performed by the Secretary, in port directly to the department or agency accordance with the guidelines and proce- head or designated agency representative on dures established by the Administrator of department or agency activity under this General Services. order and to serve as liaison to the Board Sec. 2. The members of the Board of Ad- and White House Initiative. To the extent visors shall be appointed by the President. permitted by law and regulation, each execu- The Board shall include representatives of tive department and designated agency shall historically Black colleges and universities, provide appropriate information requested other institutions of higher education, busi- by the Board and the White House Initiative ness and financial institutions, private foun- staff pursuant to this order. dations, and secondary education. Sec. 6. Each executive department and Sec. 3. The White House Initiative on His- designated agency shall develop an annual torically Black Colleges and Universities, plan for, and shall document, the agency’s housed in the Department of Education, effort to increase the ability of historically shall: (1) provide the staff, resources, and as- Black colleges and universities to participate sistance for the Board of Advisors; (2) assist in federally sponsored programs. These plans the Secretary in the role of liaison between shall describe the measurable objectives for the executive branch and historically Black proposed agency actions to fulfill this order colleges and universities; and (3) serve the and shall be submitted at such time and in Secretary in carrying out his responsibilities such form as the Secretary shall designate. under this order. In consultation with participating agencies,

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the Secretary shall review these plans and support the long-term development plans of develop, with the advice of the Board of Ad- each historically Black college and university. visors, an integrated Annual Federal Plan for The Board of Advisors shall recommend al- Assistance to Historically Black Colleges and ternative sources of faculty talent, particu- Universities for consideration by the Presi- larly in the fields of science and technology, dent. The Secretary shall ensure that each including faculty exchanges and referrals president of a historically Black college or from other institutions of higher education, university is given the opportunity to com- private sector retirees, Federal employees ment on the proposed Annual Federal Plan and retirees, and emeritus faculty members prior to consideration by the President. Each at other institutions of higher education. participating agency shall submit to the Sec- Sec. 10. The Board of Advisors, through retary and the Director of the Office of Man- the White House Initiative, shall provide ad- agement and Budget, an Annual Perform- vice on how historically Black colleges and ance Report that shall measure each agency’s universities can achieve greater financial se- performance against the objectives set forth curity. To the maximum extent possible, the in its annual plan. The Director of the Office Board of Advisors shall consider how such of Management and Budget shall be respon- institutions can enlist the resources and expe- sible for overseeing compliance with the An- rience of the private sector to achieve such nual Federal Plan. security. Sec. 7. Each year the Board of Advisors Sec. 11. The Director of the Office of Per- shall report to the President on the progress sonnel Management, in consultation with the achieved in enhancing the role and capabili- Secretary and the Secretary of Labor, shall ties of historically Black colleges and univer- develop a program to improve recruitment sities, including findings and recommenda- and participation of graduates and under- tions on the Annual Performance Reports, graduate students of historically Black col- described in Section 6, submitted by the par- leges and universities in part-time, summer ticipating agencies. The Secretary shall dis- and permanent positions in the Federal Gov- seminate the annual report to appropriate ernment. members of the executive branch and make Sec. 12. Administration: (a) Members of every effort to ensure that findings of the the Board of Advisors shall serve without Board of Advisors are taken into account in compensation, but shall be allowed travel ex- the policies and actions of every executive penses, including per diem in lieu of subsist- agency. ence, as authorized by law for persons serv- Sec. 8. The Department of Education, ing intermittently in the Government service, along with other Federal departments or (5 U.S.C. 5701–5707). agencies, shall work to encourage the private (b) The Board of Advisors and the White sector to assist historically Black colleges and House Initiative shall obtain funding for their universities through increased use of such activities from the Department of Education. devices and activities as: (1) private sector (c) The Department of Education shall matching funds to support increased endow- provide such administrative services for the ments; (2) private sector task forces for insti- Board as may be required. tutions in need of assistance; and (3) private Sec. 13. Executive Order No. 12677 of sector expertise to facilitate the development April 28, 1989, is hereby revoked. of more effective ways to manage finances, improve information management, strength- William J. Clinton en facilities, and improve course offerings. The White House, These steps will be taken with the goals of November 1, 1993. enhancing the career prospects of graduates of historically Black colleges and universities [Filed with the Office of the Federal Register, and increasing the number of such graduates 2:30 p.m., November 2, 1993] with degrees in science and technology. Sec. 9. In all its recommendations, the NOTE: This Executive order was published in the Board of Advisors shall emphasize ways to Federal Register on November 4.

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Statement on Signing the Rural and unintended results, including (1) inequi- Electrification Loan Restructuring ties among borrowers using the program at Act of 1993 different times; (2) extraordinary demands November 1, 1993 for loans when market interest rates are high; and (3) increased budget deficits. The ‘‘open- I am pleased to sign into law H.R. 3123, ended’’ character of subsidies resulting from the ‘‘Rural Electrification Loan Restructur- the interest rate cap is inconsistent with the ing Act of 1993.’’ This Act modifies the Rural Administration’s objective of managing Fed- Electrification Administration (REA) direct eral subsidies more effectively. Accordingly, loan programs for rural electric and tele- my Administration will work with the Con- phone cooperatives. It represents the cul- gress to remove this provision. mination of many months of long, hard work Nevertheless, H.R. 3123 is, overall, a solid by the Congress and the Administration in step forward. Today I wish to congratulate our commitment to revitalize the infrastruc- the Members of Congress and friends of ture of rural America. rural America that helped to enact this first Earlier this year in my State of the Union major reform of the REA loan programs. Address, I announced my intent to reform the REA. H.R. 3123 does just that. It rep- William J. Clinton resents an important first step towards re- forming the REA loan programs and is a The White House, good example of the Government doing November 1, 1993. more with less. This legislation will enhance our ability to provide affordable electric and telephone services in rural areas and to en- NOTE: H.R. 3123, approved November 1, was as- sure access to the emerging telecommuni- signed Public Law No. 103–129. cations technologies that are essential for the economic strength of rural areas and the Na- tion as a whole. It also allows the REA for Statement on Signing Legislation To the first time to make loans for energy con- Phase Out Wool and Mohair servation purposes. Subsidies This Act makes much needed program ad- justments to minimize budget expenditures November 1, 1993 and save over $100 million in 1994 alone. Today, in signing S. 1548, something un- Despite this reduction in Federal assistance, rural electric and telephone consumer bills usual will happen: a Federal program is being should not change substantially. By using abolished so that more than a half billion dol- means tests to target Federal funds and rais- lars can be saved. This is a departure from ing the maximum interest rate, H.R. 3123 business-as-usual in Washington, where pro- allows the REA to use scarce resources more grams seem destined to live forever, and effectively. We should no longer hear about Federal dollars raised from average Ameri- wealthy electric and telephone borrowers cans are treated as if they were meant to be that receive Government loans at extremely spent or squandered instead of saved. But low interest rates. to accomplish the change my Administration Although H.R. 3123 clearly represents a is seeking, for the economy and for our coun- major improvement over current law, I have try, it is no longer adequate to conduct the one concern with it. The Act places a 7 per- business of Government bound by the old cent interest rate cap on certain REA loans, arrangements. The legislation, which phases including those refinanced through the De- out the wool and mohair program, eliminates partment of the Treasury’s Federal Financ- an outdated program, reduces the deficit, ing Bank. Experience with Federal credit and affirms for the American people our programs indicates that such statutorily fixed commitment to change. interest rate ceilings produce unpredictable

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In February of 1993, I sent to the Con- the creation of good-paying jobs. We need gress ‘‘A Vision of Change for America,’’ the to make further reforms in spending by budget document accompanying my eco- Washington, and we have proposed such re- nomic reform program. Among the rec- forms in the National Performance Review. ommendations were reforms in the wool and We need to expand trade with adoption of mohair program; subsidies provided for near- the North American Free Trade Agreement. ly 40 years to wool and mohair producers And, most of all, we must reform health care. when materials for uniforms and gloves were In the past, our citizens might well assume deemed by the Federal Government as ‘‘stra- that Washington could not adopt this much tegic materials.’’ Although the Department change. But, in 1993, the American people of Defense determined by 1960 that wool have seen their Government fulfill its com- was no longer a strategic material, the sub- sidies continued. It would have been un- mitments on a wide variety of issues. It is thinkable to engage in an across-the-board my hope, as I affix my signature on S. 1548, effort to reduce the deficit—as we did in the that this additional, promised reform expands beginning of our Administration—and not their trust for the work we must undertake seek changes in this program. in the weeks and months ahead. The Congress responded well to our rec- ommendations: first, by providing a phase- William J. Clinton down of the subsidies in the budget reconcili- The White House, ation legislation I signed last August; second, in the appropriations process when the Con- November 1, 1993. gress provided for a moratorium for one year on wool and mohair payments. The Vice NOTE: S. 1548, approved November 1, was as- President’s National Performance Review signed Public Law No. 103–130. suggested that the program be terminated. This legislation does precisely that. Since these products are no longer strate- gic materials; since the wealthiest producers Notice on Continuation of Iran receive the largest fraction of the payments; Emergency and since many program participants can November 1, 1993 focus their operations on other profitable sales, there is no justification for maintaining On November 14, 1979, by Executive this program on the books. I therefore wel- Order No. 12170, the President declared a come the decision by the Congress to repeal national emergency to deal with the threat the authority under which the program oper- to the national security, foreign policy, and ates at the end of 1995, with payments re- economy of the United States constituted by duced in the intervening years, so that the the situation in Iran. Notices of the continu- termination of the wool and mohair subsidy ation of this national emergency have been can occur in an orderly but final manner. transmitted annually by the President to the This legislation reduces the deficit by $514 Federal Register million over fiscal years 1994 to 1998. Congress and the . The most In February, when we first asked the Con- recent notice appeared in the Federal Reg- gress to reform this program, we initiated a ister on October 28, 1992. Because our rela- national debate on changing the economic tions with Iran have not yet returned to nor- direction of our country. Since then, we have mal, and the process of implementing the seen the Congress adopt nearly $500 billion January 19, 1981, agreements with Iran is still in deficit reduction, and we have seen a underway, the national emergency declared marked and welcome change in our eco- on November 14, 1979, must continue in ef- nomic circumstances. We have seen positive fect beyond November 14, 1993. Therefore, changes in the deficit, and interest, inflation, in accordance with section 202(d) of the Na- and unemployment rates. Much, much more tional Emergencies Act (50 U.S.C. 1622(d)), needs to be done. We need to do better in

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I am continuing the national emergency with menting the January 1981 agreements with respect to Iran. This notice shall be pub- Iran and in the eventual normalization of re- lished in the Federal Register and transmit- lations with that country. ted to the Congress. William J. Clinton William J. Clinton The White House, The White House, November 1, 1993. November 1, 1993.

[Filed with the Office of the Federal Register, 12:04 p.m., November 1, 1993] Message to the Congress Reporting NOTE: This notice was published in the Federal Budget Rescissions Register on November 2. November 1, 1993

Message to the Congress To the Congress of the United States: Transmitting the Notice on Continuation of Iran Emergency In accordance with the Congressional Budget and Impoundment Control Act of November 1, 1993 1974, I herewith report 37 proposed rescis- sions of budget authority, totaling $1.9 bil- To the Congress of the United States: lion. Section 202(d) of the National Emer- These proposed rescissions affect pro- gencies Act (50 U.S.C. 1622(d)) provides for grams of the Departments of Agriculture, the automatic termination of a national emer- Commerce, Defense, Energy, Housing and gency unless, prior to the anniversary date Urban Development, Interior, State, and of its declaration, the President publishes in Transportation, International Security Assist- the Federal Register and transmits to the ance programs, and programs of the Agency Congress a notice stating that the emergency for International Development, the Army is to continue in effect beyond the anniver- Corps of Engineers, the General Services sary date. In accordance with this provision, Administration, the Small Business Adminis- I have sent the enclosed notice, stating that tration, the State Justice Institute, and the the Iran emergency is to continue in effect United States Information Agency. The de- beyond November 14, 1993, to the Federal tails of these proposed rescissions are set Register for publication. Similar notices have forth in the attached letter from the Director been sent annually to the Congress and the of the Office of Management and Budget and Federal Register since November 12, 1980. in the accompanying report. The most recent notice appeared in the Fed- Concurrent with these proposals, I am eral Register on October 28, 1992. transmitting to the Congress FY 1994 supple- The crisis between the United States and mental appropriations language requests that Iran that began in 1979 has not been fully would remove a variety of restrictions that resolved. The international tribunal estab- impede effective functioning of the govern- lished to adjudicate claims of the United ment, including certain proposals outlined in States and U.S. nationals against the Iranian the recommendations of the National Per- government and Iranian nationals against the formance Review. United States continues to function, and nor- malization of commercial and diplomatic re- Together, the supplemental language re- lations between the United States and Iran quests and the rescission proposals would re- has not been achieved. In these cir- sult in a total budget authority reduction of cumstances, I have determined that it is nec- $2.0 billion. My Administration is committed essary to maintain in force the broad authori- to working closely with the Congress to ties that are needed in the process of imple-

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produce legislation that will achieve this level Nomination for Under Secretary of of savings. Energy November 1, 1993 William J. Clinton The President announced today that he in- The White House, tends to nominate Charles B. Curtis to be November 1, 1993. the Under Secretary of Energy. After he is confirmed, he will assume management re- sponsibility for science and technology pro- Nomination for Posts at the grams, weapons and waste cleanup programs, Department of the Air Force and energy policy matters assigned by the November 1, 1993 Secretary. ‘‘There are few Americans who can match The President announced today that he in- Charles Curtis’ governmental experience or tends to nominate Edwin A. Deagle, Jr., to his knowledge of energy policy,’’ said the be Under Secretary of the Air Force and President. ‘‘He will be an outstanding addi- Clark G. Fiester to be Assistant Secretary of tion to Secretary O’Leary’s team at the En- the Air Force for Acquisition. ergy Department.’’ ‘‘Edwin Deagle and Clark Fiester have NOTE: A biography of the nominee was made each spent the better part of his life in watch- available by the Office of the Press Secretary. ing out for our Nation’s security. They are well prepared to continue that work at the Pentagon,’’ said the President. Nomination for Ambassador to the Republic of Djibouti November 1, 1993 NOTE: Biographies of the nominees were made available by the Office of the Press Secretary. The President today announced his inten- tion to nominate career Foreign Service offi- cer Martin L. Cheshes to be the U.S. Ambas- Nomination for an Assistant sador to the Republic of Djibouti. Secretary of Commerce ‘‘Over his nearly 30-year career in the For- eign Service, Martin Cheshes has served his November 1, 1993 country well. I expect him to continue to do The President announced his intention so during his tenure in Djibouti,’’ said the today to nominate research and international President. trade consultant Sue E. Eckert to be the As- NOTE: A biography of the nominee was made sistant Secretary of Commerce for Export available by the Office of the Press Secretary. Administration. ‘‘Sue Eckert brings a wide range of both public and private sector experience in inter- Exchange With Reporters Prior to a national trade to this position,’’ said the Presi- Meeting With James and Sarah dent. ‘‘That experience will be invaluable as Brady we seek to expand our country’s exports to November 2, 1993 create more jobs here at home.’’ Crime and Handgun Legislation

NOTE: A biography of the nominee was made Q. Jim, is the crime bill going to pass? available by the Office of the Press Secretary. The President. He asked you. Yes, it’s going to pass. What do you think, Jim? He wants to know if the crime bill’s going to pass

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and the Brady bill. That’s what Terry [Ter- of the House subcommittee last week, and ence Hunt, Associated Press] asked you. we’re hoping that the House committee will Mr. Brady. Well, this is your house, so mark it up this week. Senator Biden’s going I’ll defer to you, sir. to bring it up separate from the crime bill The President. I already said yes. You an- so that no one will be able to hide behind swer it. other issues in trying to find clever ways to Q. In that case, Mr. President, I’m won- filibuster it. And I compliment him on that. dering if you could tell us what the Brady And I just believe that the time has come. bill would do in urban areas, like the District And you read all these stories, like the of Columbia, where the guns that kill people story that was in the Washington Post yester- are not sold so much in shops but more on day of the children planning for their funer- the street, where there’s not much of a wait- als. I think it’s going to be very difficult for ing—— the Congress to justify continued inaction on The President. But they all do come out what millions of Americans believe is the of regular manufacturers, and they come into number one problem in their lives. the country. And what the Brady bill would Q. [Inaudible]—on the Newsday report do, it would make uniform the losing battle saying that—[inaudible]—campaign? a lot of States are fighting now, because The President. First of all, we did nothing they’re all alone, to at least check those peo- improper, and I have nothing to say about ple who do buy from registered gun dealers. it. And there are an enormous number of peo- ple who do have criminal backgrounds, who NOTE: The exchange began at 11:10 a.m. in the have mental health problems, who don’t even Oval Office at the White House. Former White meet any kind of age requirement. We would House Press Secretary James Brady was wounded be able to check all that uniformly, nation- in the 1981 assassination attempt on President wide. We find now that in a lot of States Ronald Reagan. His wife, Sarah, is head of Hand- that have pretty strict gun laws, an enormous gun Control, Inc. A tape was not available for ver- percentage of the guns that are confiscated ification of the content of this exchange. by law enforcement officials every year come from other States that don’t. So we do have some evidence that these Remarks on Endorsements of the laws work, but it’s not the end-all and be- North American Free Trade all. We’ve got a couple hundred million guns Agreement out there. There are a lot of other problems November 2, 1993 that we need to deal with in terms of minors in possession, in terms of assault weapons, Thank you very much, President Carter, in terms of the way the permitting process Mr. Vice President, all the distinguished peo- works for Federal arms dealers. ple who have spoken here today. But the Brady bill is the first step. And I would like to begin by making two obser- we are going to pass it this year, I believe, vations. First of all, after hearing what has because the American people finally have been said, I’m pretty proud to be an Amer- heard the long call of Jim and Sarah Brady. ican today. And I think all of you should be, They’ve been out here on this for years and too. Secondly, I have been sent an extra- years and years, oftentimes alone with no terrestrial telegram stating, ‘‘I, too, am for support. And finally, thanks to the leadership NAFTA,’’ signed Otto von Bismarck. of the Members of Congress who are here [Laughter] and others, we’re going to be able to put it You know, it is something of note that over. every living President, Secretary of State, Q. Does it go far enough? Secretaries of Defense, national security ad- Q. [Inaudible]—enough votes—— visers, Secretaries of Commerce, leaders of The President. To pass it? I believe we the Federal Reserve, distinguished contribu- clearly have the votes to pass it if we can tors to the American spirit like John Gardner get it to the floor. Mr. Schumer got it out and Father Hesburgh and other great Amer-

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ican citizens all support this agreement, for sential point: There is no evidence that any economic reasons, for foreign policy reasons. wealthy country—not just the United States, Our own Secretary of State, Warren Chris- anyone, not one—can create new jobs and topher, is in California even as we are here, higher incomes without more global growth talking about the foreign policy implications fueled by trade. If you strip away all the other of NAFTA for our Government and our arguments, no one has offered a single soli- country. tary shred of evidence to refute that central Why have all of us declared this issue point. above politics? Why have we come to agree And I know there is great insecurity and that whatever else has divided us in the past, instability in all the wealthy countries in the this will weld us together in the cause of world. You can say whatever you want about more jobs for our people, more exports for this being the first Tuesday in November; our markets, and more democracy for our you’ve seen a lot of other Tuesdays come allies? Why do we all know down deep inside along in other nations, great political upheav- that this would be such a profound setback als all across the world. Why? Because people for America and the world economy and in the new global polity we are striving so hon- feel the walls are closing in on them. estly to create? Why are we so willing to say And in truth, I think when you strip all no to partisan politics and yes to NAFTA? this away, we are facing a real decision about I think it is because we know, as all of these whether the psychological pressures of the have said in different ways, that NAFTA re- moment will overcome what we know in our flects this moment’s expression of all the les- hearts and our minds is the right thing to sons we have learned in the 20th century. do. Whether the same pressures that people It reflects this moment’s expression of what in Canada feel, or France, or Japan, in a time we learned not to do after World War I, what when wealthy countries are not generating we learned we had to do during and after new jobs and people are working harder for World War II. It reflects the sheer economic stagnant wages, will those pressures make us weight of argument that Mr. Samuelson re- do what is easy and perhaps popular in the ferred to, that we have seen even more ex- moment? Or will we do what we should really pressed just in the last few years when a high- do? The honorable thing to do to respond er and higher percentage of our new jobs to those pressures is to take an action that in this country are clearly traceable directly may not be popular in the moment but that to exports. actually holds the promise of alleviating the I see it in my own work here. For years pressures. and years and years our allies in Europe and If we believe the feelings, the anxieties are Asia said, ‘‘Well, if America really wanted to legitimate, as has been said already by other promote global growth, you would do some- speakers, then don’t we have the obligation thing about your deficit and get your interest to do what will alleviate the anxieties over rates down and quit taking so much money the long haul, instead of play to them in the out of the global economy.’’ And so we have moment? That, in the end, is what this deci- tried to do that. And we have low interest sion is all about. That is really what we mean rates and the deficit is coming down, and our own deficit this year was much lower, in no when we say the secret ballot on this issue small measure because of those lower rates. has already been won. But we still have this great global reces- These students over here to my left are sion. Why? Because we are not trading with from my alma mater, Georgetown. And when one another. We are not buying and selling I was in their place 25 years ago now, when and investing across national lines and spark- we were studying global affairs, we came out ing the kind of global growth that is the only really worrying about and thinking about the way any wealthy country, anyway, generates cold war and trying to debate exactly how any new jobs. much the pattern of the bipolar world could No one attacking NAFTA has yet made be manifested in every—[inaudible]—devel- a single solitary argument to refute this es-

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opment, in every country in the world, in leverage to the United States to push that every region of the world. And sometimes agreement through by the end of the year we were wrong, and sometimes we were if this passes, enormous, and great incentive right. But at least we had a framework within to other nations to support this. But over and which to view the world. above that, this is a decision which will dem- As Dr. Kissinger said, we are in the process onstrate whether in this difficult moment we now of creating a new framework. And a lot still have confidence in ourselves and our po- of people are complaining about how we tential. don’t have all the answers. I don’t mean we, And I would say to all of you, anything the administration, I mean we, the people. you can do to the people at large and to the But I say to you—many of you in this room Congress in particular to instill that con- are old enough to remember, and I think I fidence again is very important. If we have now qualify in that category—there are a lot lost our way at all in the last couple of years, of generations of Americans who would kill it is in not having any historic memory. These to be alive and of age in this time with this are difficult problems. But for goodness set of problems. I mean, who are we to com- plain about this set of problems? Very few sakes, give us these problems as compared mornings do I come to work in the Oval Of- with many of those our forebears faced, and fice and wonder about whether some deci- give us these problems as compared to those sion I make can spark a nuclear war. Very we are about to create if we start turning few mornings do I wonder whether, even in away from the world that is plainly before all the difficulties we face, we might make us. Help us to give the Congress the free- an economic error and a quarter of our peo- dom, the confidence, the courage that is in- ple will be out of work, as they were during side every Member of the Congress waiting the Great Depression. to be brought out. Help to give them the We see people in positions of responsibil- space they need to take the steps they know ity going around wringing their hands about are right for America. the difficulties of the moment. Yes, it’s a new This is about whether we really have con- time. It’s always difficult in a new time to fidence in ourselves. I believe with all my see the future with clarity and to have the heart the next 20 years can be the best we kind of framework you need. But none of ever had. But they’re going to require some that is an excuse to give in to the emotional tough decisions, some difficult moments, pressure of the moment instead of to take some uncertain moments. What do you do steps that will alleviate the pressure. That is in moments like that? Do what the priests the dilemma before us. would tell you to do: Fall back on what you You know, it’s true that it’s good for us believe and what you know is right. What economically. It’s also true that what Mexico we know is right for America is to be con- gets out of it is investment, so that if we don’t fident, to reach out, to believe in ourselves take this deal somebody else probably will. and our potential, to believe that we can ad- And that will be bad for us economically, as just to change, just as we have been doing has already been said by President Carter. for 200 years now. But the real thing that this is about is how we are going to view ourselves as we relate Make three calls. Make 12 calls. Make two to the rest of the world. Keep in mind, this dozen calls. For goodness sakes, make how- is not an isolated incident. This is not just ever many you can. But remember, this is a trade deal between the United States and a test of our confidence. Every one of you Mexico; not even a deal that affects our rela- can give confidence to someone else by the tionships with the rest of Latin America, al- life you have lived, the experiences you have though that’s where the real jobs and long- had, the things that you know. Give it now. term economic benefit to us lie, perhaps; not We need it. even a deal that will help us to get the GATT Thank you very much. agreement by the end of the year, although, I tell you, it will give enormously increased

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NOTE: The President spoke at 3:20 p.m. in the NOTE: H.J. Res. 228, approved November 2, was East Room at the White House. In his remarks, assigned Public Law No. 103–133. he referred to John Gardner, writer and founder of Common Cause; Theodore M. Hesburgh, president emeritus, University of Notre Dame; Nomination for Assistant Paul A. Samuelson, Nobel Prize-winning econo- Commissioners of the Patent and mist; and Henry Kissinger, former Secretary of Trademark Office State. November 2, 1993 The President announced his intention Statement on Signing Legislation on today to nominate two Assistant Commis- Most-Favored-Nation Trade Status sioners of the Patent and Trademark Office for Romania in the Department of Commerce. He named Lawrence O. Goffney, Jr., to be the Assistant November 2, 1993 Commissioner for Patents and Philip G. Hampton II to be the Assistant Commis- I am pleased to sign today House Joint sioner for Trademarks. Resolution 228, which extends most-favored- ‘‘Each of these men combines substantial nation tariff treatment for Romania. This ac- legal experience with a solid background in tion, which will lower tariffs on Romanian engineering,’’ said the President. ‘‘I have exports to the United States, reflects Roma- great confidence in their ability to maintain nia’s significant progress thus far in rejoining the highest standards at the Patent and the community of democratic nations. It will Trademark Commission.’’ also assist the growth of Romania’s private sector and enhance our bilateral trading rela- NOTE: Biographies of the nominees were made tions, improving American access to one of available by the Office of the Press Secretary. the largest markets in Eastern Europe. Romania’s people are emerging from a long period of tyranny and Communist rule. Remarks on Signing the Message Their road toward democracy, respect for Transmitting NAFTA Legislation to human rights and rule of law, and a function- the Congress and an Exchange With ing market economy is not an easy one. Reporters While important steps have been taken, more November 3, 1993 remains to be done. As Romania continues to make progress, the United States will offer The President. Ladies and gentlemen, our friendship and help in tangible ways. Ro- today I am sending to Congress the imple- mania deserves recognition for its close co- menting legislation for NAFTA. This will cre- operation with the United States in inter- ate the world’s largest tariff-free zone, from national organizations, particularly for its the Canadian arc to the Mexican tropics, with compliance with United Nations sanctions on more than 370 million consumers and over Serbia. Romania, like the other frontline $6.5 trillion of production. It will clearly ben- states, has made real sacrifices in this impor- efit America’s workers. Mexican tariffs today tant effort, earning the appreciation of the are 21⁄2 times United States tariffs. As the international community. walls come down, we estimate that another I welcome this positive step in U.S.-Roma- 200,000 American jobs will be created by nian relations and look forward to working 1995. with the people and leaders of Romania to NAFTA will also enable us to operate in promote democracy, human rights, a market an unprecedented manner in other areas. It economy, and prosperity. will improve environmental conditions on the

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U.S.-Mexican border, something that all The President. No. When Governor Robb Americans know we need to do and some- was elected Governor of Virginia in 1981, I thing that all Mexicans know we need to do. didn’t think it was a repudiation of President It will be the stimulus for economic growth Reagan. We also won a lot of mayors’ races beyond Mexico, enabling us to go into the last night, including a lot of people who were rest of Latin America with similar agree- early supporters of mine and very instrumen- ments. And perhaps most important in the tal in the campaign. And we won the special short run, it will give the United States access elections for the House of Representatives to the Mexican markets on terms more favor- that had come up that we had before. I don’t able than those available to many of our com- think you can draw too much conclusion petitors who have also rapidly been expand- from this. I think what you can say is, the ing their sales into Mexico, whether from Eu- American people want change, and they want rope or Japan or the rest of Asia. results. The point I want to make is that I If we turn away from NAFTA, we risk los- believe every Member of Congress, without ing the natural trade advantage that should regard for party, who votes for this agree- come to the United States as Mexico and the ment will be rewarded for it, because it rep- rest of Latin America build market econo- resents change and the creation of more eco- mies and stronger democracies. If we em- nomic opportunity. I think it represents brace NAFTA, it is one strong step to take change and results. That’s the way incum- this country into the 21st century with a revi- bents are going to survive, by providing the talized economy. That is clearly in the fore- kind of changes that the voters want. front of the minds of all Americans, and that Q. So you don’t think it’s any reflection is why we are all pursuing it here in this bi- on you, or any referendum on you or your partisan fashion. programs? I want to thank the Democratic and the The President. Let me say this: I was Republican leaders of the Congress who are elected Governor of my State five times. here with me today, thank them for their tire- Once I was elected in 1984 when Ronald less efforts, along with our administration, Reagan got 59 percent of the vote in my Ambassador Kantor, Mr. Daley, Mr. Frenzel, State, and I got 63 percent. Voters are ex- and others. We are working hard. We are tremely discriminating. They make their own making progress, and I hope when we send judgments for their own reasons. I think it this bill up to the Congress today that it will is a manifestation that the voters are not yet reaffirm the clear interest of the United happy with the pace of economic renewal, States in adopting this agreement. social reunification in this country. They’re I’d like to sign it now, and then we’ll take worried about crime. They’re worried about a couple of questions. all of these other social problems we’ve got. [At this point, the President signed the mes- And I think it’s also a sense they have that sages transmitting the proposed legislation to Government’s not yet working for them. implement the North American Free Trade And all that is right. There’s nothing wrong Agreement.] about that. And I think that all people who Q. Mr. President? are in, if they want to stay in, are going to The President. I have to sign two, there have to work together until we produce eco- being two Houses. [Laughter] nomic results, a country that’s coming to- gether instead of coming apart, and political reform. But that’s why I will say again, it’s Election Results certainly not a message to run and hide from Q. Mr. President, it’s a year after your the tough issues; that is not what it is. And election and the Democrats have now lost that’s why I think, again, I think NAFTA is two Senate seats, two Governors, the mayors symbolic of the kinds of things that people of—[inaudible]—the largest cities in the ought to be doing across party lines, because country. Do you view it in any way as a judg- it will create economic opportunity. And that ment on your policies in the Democratic will lower voter anxiety. When people won’t Party? have to worry about whether the economy

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is growing or not, they’ll be much more se- ear off about the interests of the people in cure, and we’ll be able to deal with a whole this area, and I know you can be proud of lot of these other issues that we’ve got. That’s him for what he has done. I thank Senator why I think this is a very important, symbolic Specter for coming here today and for being issue. willing to work across party lines to solve this problem that has affected him and every NAFTA other American and every other American Q. Do you have the votes? family. I thank my good friend, Senator The President. Do we have the votes? We Wofford—I want to say a little bit about him don’t have them today, but we’re getting in a moment—for coming here and for nour- there. Really, I think all of these people ishing this issue long before it was popular. would admit, thanks to all of them, we’re I want to thank you, Mayor Panek, for having making rapid progress. And we had a real us here today. And I thank Congressman movement in the last 10 days or so, and I Murphy for coming up with us. And I thank think you’ll see more and more progress in my friends from Allegheny County: Commis- the next few days. sioner Tom Forrester and the outgoing Q. Are you going to win? Mayor of Pittsburgh who’s serving the end The President. Yes. We’re going to win of her term, Mayor Sophie Masloff. We’re it. glad to see you, Sophie. [Applause] Thank Q. Are you cutting too many deals? The you. big sugar deal, is this just—— The President. No. I want to thank your superintendent, Dr. Q. Isn’t that protectionist, the sugar con- DePaul, and your principal, David Perry, for cessions for the Louisiana Members? having us here. And let me say, as an old The President. I think the Ambassador is band boy, I congratulate the band on your going to have a—you’re going to have a press achievement, and I wish you well. conference this afternoon to talk about that, I wanted to come here to Pennsylvania aren’t you? today to put this book in the library here in Ambassador Kantor. Yes. your wonderful hometown, in that beautiful The President. We haven’t done anything library, to symbolize the placement of the that’s not consistent with what we said we’d health care plan in 1,600 Federal depository try to do from the beginning on this agree- libraries all across America today and in hun- ment. And Mickey’s going to talk about it dreds of others who will ask for and receive today. copies of the book. Soon it will not only be in your libraries but it will be on your NOTE: The President spoke at 10:25 a.m. in the bookstands. I ask every one of you to get this Oval Office at the White House. book and read it. It deals with a system that is central to Remarks to the Community in our personal health, our family’s health, our Ambridge, Pennsylvania community’s health, and the economic November 3, 1993 strength and well-being of our Nation. For that reason alone it may contain the most Thank you very much. It is wonderful to important information of any book you could be back in Pennsylvania, wonderful to be read this year. What we want the American here in western Pennsylvania with so many people to do, as has already been said, is to of my friends and so many of the people who read this book, to get familiar with the dy- helped to make one year ago today, the day namics of the problem: Why is it that our that I was elected President, a wonderful day health care system costs more than any other for me. I thank you for that. nation, about 40 percent more of our income, I thank Congressman Klink for coming and still is the only major health care system here today and hosting us here today in his in the world that doesn’t provide health in- district. He’s done a terrific job being your surance to everyone? Why is it that it’s so advocate. He has, on occasion, chewed my expensive and yet 100,000 Americans a

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month lose their health insurance perma- us even more money, as well as keeping nently? Why is it that it’s so costly and yet themselves healthier; and on and on and on. we still don’t have the primary and preven- Hillary and I have personal friends, friends tive services that help to keep people well? from our childhood, who have told us the What could we do to provide coverage to most heart-wrenching stories. A friend of people with long-term diseases or people ours who runs a small business and has only with disabilities who could be more inde- four employees because he had one em- pendent, who could make more of a con- ployee with one child who had Down syn- tribution to our national life if only they could drome. And because this young man couldn’t get better health insurance themselves? change his job and because that family Some of the American citizens who deal couldn’t be let go, their premiums went up with their disabilities every year are in this so much in that small business that they had audience today. I thank them for their cour- to go to a $2,500 deductible for the families, age in coming here. And I say to you, you which as many of you know, depending on and your families will be among those most what your income is, is like not having any advanced by this effort, but so will we all insurance at all. And many people are on be helped. There are untold numbers of peo- even higher ones. ple on public assistance today who would not I say that to make this point. This book be there if only they had access to preventive, is a specific, detailed reflection of years of primary, and comprehensive health care. You common effort, months of effort in which should ask and answer these questions. thousands of people were involved: doctors, Two years ago when Pennsylvania elected nurses, other health care providers, consum- Harris Wofford in a stunning upset on the ers, business people—small, medium, and health care issue, you fired a shot heard large—people in the insurance industry, peo- ’round America. You said something to the people making public policy that had not ple in all aspects of health care. And it at- been heard before. You said, ‘‘I know this tempts to do something no one has yet done, is a complicated problem. I know there are except for this product, which is to say here lot of interests on all sides. I know this gives is specifically how we would propose to people a headache. I know there’s always change it. something you can say to object to any re- When those come forward—who should form. But I still expect you to deal with it come forward—who disagree with us, I ask because it is eating the heart out of America. only that they be held to the same standard. There is too much insecurity. There is too Where is their book? What are their answers? much cost. There is too little health care. Do Who pays for theirs? Where are the costs something to make it better.’’ And we got in theirs? What is their answer? Hold them the message. to the same standard. One year ago when I crossed this country, The bottom line, my fellow Americans, is I had already spent over 2 years as a Gov- this: We have to create a system of com- ernor trying to come to grips with a health prehensive benefits that are always there that care system that was threatening to bankrupt can never be taken away. You know here in the State governments of the country with this river valley as well as any group of Ameri- higher and higher costs for Medicaid pro- cans—look back over the last 20 years—you grams for the poor, both elderly and non- know we are living in a churning economy elderly; with working people in my State who that sometimes helps us and sometimes hurts worked hard and played by the rules and us. You know how few guarantees there are wondered why they were working because in life anymore. You know how many people their children didn’t have health insurance; have been hurt by the insecurity and the un- with elderly people who were not quite poor certainties of the sweeping global economic enough to be on Medicaid, so every month changes that we have. We have to be able they were making a decision about whether to say to the American people, if you’re will- to buy food or the medicine they needed to ing to work hard and play by the rules, if stay out of the hospital and save the rest of you’re a good taxpaying citizen, if you’re poor

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and you have children, no matter what hap- put the American family back together. We pens to you, you will always have basic health have passed the family leave law so you can care. And we know we can do it, because get some time off without losing your job every other country besides us has already with a sick child or a sick parent. On April done it. 15th this year, when taxes are due, over 15 We can do it. We’re tired of making ex- million American working families will get cuses for why we spend 10 cents on the dollar a tax break because they have children and more on paperwork, regulation, and insur- because they are working hard and they’re ance premiums than any country in the world still below the Federal poverty line. They will and we can’t figure out how to get health be lifted above it. It’s the biggest incentive care to real people. We are tired of making to get off welfare we’ve ever had, to reward excuses, and we are ready to solve the prob- the working people who make modest in- lem. comes and have children. When I look at all these young people here To all the students, I say this Congress and I think about what their future is going lowered the cost of college loans, made the to hold and I realize we are so close to the terms of repayment easier, and will give 21st century and you see the kids on either thousands of young people a chance to work side of all of us adults who are sitting in the their way through college by serving their middle—although there are some young peo- communities in national service. ple in the middle, too; young is defined by The last thing I want to say is we are also, whoever is a day younger than you are— between now and Thanksgiving, determined [laughter]—I think about what I know in my to do something that gives communities a heart are the challenges of this country. We chance to fight crime more, with more police basically have three huge challenges as we officers on the street, with alternatives for move toward the 21st century. One is eco- correction, and by passing the Brady bill. To nomic stagnation. We’re not creating enough make the political system work better, this jobs, and too many people are working hard- Congress has before it today a campaign fi- er without ever getting a raise. Right? Two nance reform bill, a bill to limit the influence is, we are not dealing with the social prob- of lobbyists, a bill to require Congress to live lems we have. We are coming apart when under the same laws that it requires private we ought to be coming together. We have employers to live under, and a bill to give seen communities and families under stress. the President the power to make specific There are too many children who are subject line-item vetoes in unnecessary spending. All to violence on our streets and in our schools. of those are before the Congress today. We have too many human problems that are But there is no issue which combines all not being faced. And the third problem is three of these things like health care. Health that the political system has too much talk care is important to the economy. Why? Be- and too little action on the real problems. cause we’re spending 40 percent more of our It is too dominated by vested interest and income than any other nation on health care; fears. we’re getting less for it. That means if you Now, in our way we have tried to address want our cars to sell at home and overseas, all these things in the last 10 months since they’re going to pay a nickel on the dollar I have been your President. The budget plan more than the Germans and the Japanese for we adopted brought interest rates to their health care for every dollar and every auto- lowest point and mortgages to their lowest mobile. It’s important to our economy that point in 25 years. And we now have more we do something to stop health care costs private sector jobs which have come into from going up at 3 times the rate of inflation. America in the last 10 months than in the It’s important to our social fabric. Why? previous 4 years. Is it enough? Of course not, Because how can you tell America’s families but it’s a darned good beginning. We’re mov- that they ought to get a good education and ing in the right direction. they ought to be willing to be retrained all The second thing—and we talked about through their lives and they ought to play this on the plane coming up here—to try to by the rules, when they know if one bad thing

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happens to them they’ll have to go home at paperwork and bureaucracy that no other night and look at their children, and they people anywhere in the world pay, money won’t even be able to provide health care. that could go to cover the uninsured, money How can we hold this country together? that could go to give primary and preventive And it is important for making the political care, money that could go to give mammo- system work. Why? Because there will never grams to women, to give cholesterol tests to be an issue, never, at least in my tenure, men, to give dental help to children, to give where so many special interests have so drugs to the elderly who are above the pov- much to gain or lose based on the decisions erty line but still don’t have enough money made by Congress. to pay their drug bill? You know, my wife had a little argument To me it is an easy answer. But you need with the Health Insurance Association about to know what is fueling those television ads a television ad they’re running. So they’re you see from a lot of these special interest going to come out, they’re going to run an- groups. There’s a lot of money in this health other ad and tell you they’ve got a better care system that doesn’t have zip to do with idea, except we’re all still waiting for it. your health care. And we want to develop Let me tell you what the issue is. You need it in a way that can be devoted to your health to know what’s behind these ads. This is the care. only country in the world that has 1,500 sepa- They say, ‘‘What are you going to do when rate companies writing thousands and thou- the money runs out?’’ You know, our plan sands and thousands of different policies de- proposes to raise public spending at twice signed to divide people up into smaller and the rate of inflation for the next 5 years in- smaller and smaller groups, so that some of stead of 3 times the rate of inflation. No- you are in insurance groups so small that 40 body’s cutting anything. We are going to have percent of your premium goes to overhead, to have some discipline in this system like profit, and administrative costs. It is because every other system we have. You are not of that that hospital after hospital after hos- going to run out of health care, but we are pital tells us that their doctors, their nurses, going to limit the extent to which you can their administrators are spending millions of be gouged in a system over which you now dollars a year in time filling out unnecessary have no control. I think that is what you want. forms because people have to keep up with We have to have some discipline in this sys- all these insurance policies. tem, as in every other system of our life. If It is because of that that a doctor I grew we need discipline for our kids in the schools, up with told me the other day that it was discipline on our streets, and enforcement bad enough that he and his partner in a two- of the law, we ought to have discipline in doctor firm—clinic—had to hire a lot of peo- how our health care system operates. It ple to do administrative work. He now had shouldn’t be able to run crazy. to hire one woman to do nothing but stay So I say to you, my fellow Americans, on the phone all day to call these hundreds under this plan no insurance company can of different insurance companies, to pound take away your coverage. There is a limit to on them to pay what they already owed. You how much it can increase. What we are trying pay for that when they hire somebody else to do over the long run is to bring ourselves to do that. That is what is going on here. into a position where we increase health care Now, look, there are a lot of good people costs at the rate of inflation plus the rate of who do this work. They’re entitled to work, population growth, utilization of the system too. But you’ve got to make up your mind. every year. Do you want to spend one dime on every There will have to be special provisions, dollar for health care when we’re already as we make them, for new technologies, for spending 14.5 percent of our income—no medical research, for all those things that other nation over a dime, 10 percent of their give us the best health care in the world to income; Germany and Japan at 9 percent of the people who can access it. But I tell you, their income—do you want to keep paying we did not put this plan together without 10 cents on every dollar to pay for profit and talking to literally hundreds of doctors and

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nurses and other health care providers. We Finally, let me say to the students here, heard them. They are screaming, literally you will be more affected by this than any screaming, for relief from the over com- of the rest of us. You will live your whole plicated, burdensome, bureaucratic paper- life in an American economy hurtling toward work decisions that are driving the costs of the 21st century that will or won’t escape this system through the roof. economic stagnation, that will or won’t bring And I ask you to remember that when you us together as a family again and promote hear the million-dollar campaign ads of those the values that made this community great, who are going to tell you that we cannot have that will or won’t have a political system that health security and comprehensive benefits works through problems instead of just talks for all at a price that will not break the Amer- about them. The test of that, in large meas- ican economy. I refuse to believe we can’t ure, will be this. do something everybody else has done. I I say, this may not be perfect, but it is think America can still do things that no one the only comprehensive plan that gives secu- else has done. We can certainly do things rity to all Americans. It is the only one. I that everybody else has done. challenge the others to come forward with Let me say a special word about senior their ideas, send you their books, stand on citizens. Our plan does not change Medicare their ideas. And I urge all of you to read at all. It preserves the benefits of Medicare this, ask the questions, and push ahead. and the integrity of the system. But our plan America needs it. The next generation needs it. And you need it right here in this wonder- does cover prescription medicines for the el- ful town. derly as well as for the nonelderly. Thank you, and God bless you all. Now, let me tell you why that’s important. If you look at the United States as compared with Germany, for example—two countries NOTE: The President spoke at 2:21 p.m. in the gymnasium at Ambridge Area High School. In his that have great pharmaceutical systems—we remarks, he referred to Mayor Walter Panek of don’t use as many prescription drugs as the Ambridge and Samuel A. DePaul, superintendent Germans do. Why? Because they’re not cov- of schools, Ambridge Area School District. A tape ered in our health care plans. Because they’re was not available for verification of the content not covered for elderly people on Medicare of these remarks. who aren’t on Medicaid. What does that mean? It means people don’t get the medi- cine they need. Eventually, they get sicker. Remarks on the California Fires They go to the hospital, and it costs more November 3, 1993 money. It is very important for the elderly, also important for some of these young peo- Good evening. For just a few moments, ple who might have asthma or some other I want to speak to you good people in south- condition that would require medication. ern California who are enduring in an agoniz- Our plan covers it, and I think America ing tragedy with the spread of the wildfires. should have it. Whenever natural disasters like this strike Under this plan we also move to cover one region of our Nation, all the rest of us long-term care for elderly people who aren’t try to pull together as one community, a fam- in nursing homes. This is a big deal, folks. ily, to help those in need. That’s what Ameri- The fastest growing group of Americans are cans do. And that’s why the prayers and good people over 80. And more and more of our wishes of all the citizens of our Nation are elderly people are going to need some help with the people of California. We’re facing but want to maintain as much independence those fires together. as possible. Our plan, over a period of time, This has to be a terrifying experience for as we can afford it, gives our older citizens children awakened at night by their parents the chance to maintain that independence. and carried away from their homes before Nobody else does it. That’s another good rea- they’re lost; for property owners, some of son to support it, and I hope you will. whom have faced down a wall of fire with

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nothing more than a garden hose in their to the California Office of Emergency Serv- hands and a prayer in their hearts; and espe- ices to help pay for the State and local fire- cially, for the gallant, heroic men and women fighting costs. This advance will be supple- who are fighting these fires and risking their mented as further costs are identified in the lives to save people and property from being coming weeks. consumed by the blaze. I know this is a big burden for California I’m especially grateful for the work of the with all your other troubles, and we ought pilots, many of whom have flown after dark to do what we can to help. I know, too, from into strong winds to drop water on the fires dealing with natural disasters in my home to contain their fury. Their actions and the State of Arkansas that these problems put un- work of countless others define the word bearable strains on the budgets of State and ‘‘courage,’’ and we can never repay them for local government as well as on private citi- what they have done and what they are still zens. We’re going to try to help communities prepared to do. shoulder their extraordinary expenses that In the fires which struck the southland, they’re facing through no fault of their own. we’ve moved quickly to speed Federal re- sources and a strong Federal response to As we provide this help, we’ll monitor the those places where it could do the most good situation closely so that we can do more when in helping the State and local efforts. After more is needed to be done. designating several counties as major disaster I know there are people who suffered areas, we dispatched Forest Service air tank- losses who are upset and frightened about ers and Federal firefighters to the scene. At the future. I know there are families con- my direction, Mr. McLarty, the White House cerned about leaving their homes in the fire’s Chief of Staff, has coordinated the Federal path and moving to safety, perhaps spending response. The Director of the Federal Emer- the night in a shelter. I know there are public gency Management Agency, James Lee Witt, safety officers and firefighters who are ex- traveled immediately to the scene of the hausted from their exertions. And I know fires, along with Agriculture Secretary Mike there are children who are frightened. Espy and our General Services Adminis- For them especially, but for all of you, I trator, from Orange County, Roger Johnson. know words alone will not heal your hurt or We worked with Governor Wilson and his make you whole. But I hope you will take emergency director, Dick Andrews, as well some solace in knowing that your country is as the leaders in your congressional delega- concerned about you and that I am closely tion, especially your Senators Boxer and following the work being done to protect you. Feinstein. I hope you are sustained by the knowledge And until these fires are out, those in the that communities in California are pulling to- inland empire, and the new ones tearing gether and neighbors are helping each other. through the Santa Monica mountains, our This is what our great country is all about. work will continue, and we won’t rest either. Have faith, and take heart. Soon the trag- For these new fires, the Federal response edy will pass, and the recovery will begin. has already begun. We’re providing 37 air tankers, 100 fire crews amounting to 2,000 And as this happens, and you know that it Federal firefighters, 86 fire engines, and 22 will, you will be in the prayers and hearts helicopters. of your fellow citizens. You are not facing I’ve just spoken with FEMA Director Witt, these fires alone. and he assures me that the Federal efforts Thank you, and God bless you. are well coordinated with the extraordinary work being done by private citizens and State and local government. I talked with Gov- NOTE: The President spoke via satellite at 8:45 ernor Wilson, and he said the same thing. p.m. from Room 459 of the Old Executive Office Building to the southern California community. Just a few moments ago, Director Witt an- nounced my decision to provide $15 million

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Proclamation 6620—National Health grams to interpret data, and by putting in Information Management Week, place quality control procedures to guarantee 1993 the validity of the information. November 3, 1993 Throughout the ongoing health care re- form discussions, there has been a strong consensus about the need to lessen the bu- By the President of the United States reaucracy of our Nation’s current health care of America delivery system and to streamline and sim- A Proclamation plify administrative operations. During this Over the course of the next months, the very important time in our Nation’s history, people of the United States and their elected health information management profes- Members of Congress will have the oppor- sionals are key players in our efforts to re- tunity to participate in one of the most im- shape the existing system. These dedicated portant processes of our times: the imple- experts are working hard to computerize pa- mentation of health care reform. As the pro- tient record systems in order to reduce posals have been developed, the authors have health care costs by decreasing the logjam relied on extensive information that has been of unnecessary paperwork confronting hos- collected regarding the well-being of the pitals and other health facilities. people of our Nation and the efficiency of We want to recognize the devotion of our health care delivery system. Those work- those who are working to decrease the cost ing on plans for health care reform were ex- and improve the quality of our health care tremely fortunate that they could draw upon system. Their past efforts have contributed the vast fund of knowledge contained in immeasurably to the health care delivery sys- some of the most comprehensive health man- tem and to the medical research community. agement systems in the world. As health care reform is implemented, the Our Nation’s status as a world leader in challenges will be quite substantial, but so this field is largely due to the role of profes- will the opportunities for demonstrating the sional health information managers as they creativity and commitment to quality that continually investigate and apply new tech- characterize these important professionals. I nologies to advance their administrative ex- urge all Americans to join me in saluting this pertise. determined group of men and women, who America’s 35,000 health information man- work as professional health information man- agement leaders have a tradition of commit- agers. ment to excellence and competence, which The Congress, by House Joint Resolution have become increasingly important compo- 205, has designated the week of October 31 nents of the health care delivery system of through November 6, 1993, as ‘‘National our country. Health Information Management Week’’ and At the heart of the profession’s information has authorized and requested the President management responsibilities are medical his- to issue a proclamation in observance of this tory records, both computer-based and week. paper-generated. On a daily basis, health in- Now, Therefore, I, William J. Clinton, formation managers must take into consider- President of the United States of America, ation patients’ privacy rights and, at the same do hereby proclaim the week of October 31 time, protect the integrity, accuracy, consist- through November 6, 1993, as National ency, reliability, and validity of health infor- Health Information Management Week. I mation. The professional health information call upon all Americans to observe this week manager orchestrates the collection of many by demonstrating their respect and gratitude kinds of documentation from a variety of for all those professionals who have dedi- sources, monitors the integrity of the infor- cated their careers to consistently improving mation, and ensures appropriate access to our systems of health information manage- medical records. This professional also col- ment. lects health care data by abstracting and en- In Witness Whereof, I have hereunto set coding information, by using computer pro- my hand this third day of November, in the

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year of our Lord nineteen hundred and nine- programs to counter narcotics traffick- ty-three, and of the Independence of the ers, money laundering, and supply of United States of America the two hundred chemical precursors; and eighteenth. —combating international narco-traffick- William J. Clinton ing organizations; —emphasizing more selective and flexible [Filed with the Office of the Federal Register, interdiction programs near the U.S. bor- 9:12 a.m., November 4, 1993] der, in the transit zone, and in source

NOTE: This proclamation was published in the countries. Federal Register on November 5. He directed that a working group chaired by the State Department manage implemen- tation of the international strategy, reporting Statement by the Press Secretary on its activities to Director Brown. Drug Control Policy The President stressed the need for Amer- November 3, 1993 ican leadership in the fight against inter- national drug trafficking. He pledged to work The President today signed a decision di- with the Congress to ensure adequate fund- rective that provides a policy framework for U.S. international drug control efforts as part ing for international counter-drug programs. of the Administration’s overall counter-drug policy. The President designated Director Lee Brown of the Office of National Drug Executive Order 12877— Control Policy as responsible for oversight Amendment to Executive Order No. and direction for all counter-drug policies, 12569 in coordination with the National Security November 3, 1993 Council. In his directive to Agencies involved in the By the authority vested in me as President fight against illicit drugs in the hemisphere, by the Constitution and the laws of the the President said that the scourge of illegal United States of America, including the narcotics is severely damaging the social fab- Compact of Free Association (the Compact) ric of the United States and other countries. and Public Laws 99–239 and 99–658, I here- He said that the operation of international criminal narcotics syndicates is a national se- by order that Executive Order No. 12569 of curity threat requiring an extraordinary and October 16, 1986, be amended as follows: coordinated response by civilian and military Section 1. Paragraphs (1)–(3) of sub- agencies, both unilaterally and by mobilizing section (e) of section 3 shall read: international cooperation with other nations ‘‘(e)(1) The Secretary of State shall be re- and international organizations such as the sponsible for the conduct of United States U.N., OAS, and international financial insti- relations with the Freely Associated States, tutions. carry out related matters, and provide appro- The President’s directive, the result of an priate support to the Interagency Group, exhaustive 8-month review of U.S. inter- bearing in mind the continued special rela- national policies and strategies, instructed tionship between the United States and the Federal Agencies to change the emphasis in Freely Associated States. U.S. international drug programs from the (2) The Secretaries of Defense and Inte- past concentration largely on stopping nar- rior may, to the extent permitted by law, del- cotics shipments to a more evenly distributed egate any or all of their respective authorities effort across three programs: and responsibilities as described in this —assisting source countries in addressing Order to the Secretary of State or his or her the root causes of narcotics production designee. The Secretary of State or his or and trafficking through assistance for her designee shall serve as Executive Sec- sustainable development, strengthening retary of the Interagency Group. democratic institutions and cooperative

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(3) Personnel additional to that provided Congresses have approved, agreements that by the Secretary of State may be detailed to lower tariffs and expand opportunities for the Department of State by the Executive American workers and American firms to ex- departments and agencies that are members port their products overseas. The result has of the Interagency Group, and by other agen- been bigger profits and more jobs here at cies as appropriate. Executive departments home. and agencies shall, to the extent permitted Our commitment to more free and more by law, provide such information, advice, and fair world trade has encouraged democracy administrative services and facilities to the and human rights in nations that trade with Secretary of State as may be necessary to us. With the end of the Cold War, and the conduct United States relations with the growing significance of the global economy, Freely Associated States.’’ trade agreements that lower barriers to Sec. 2. Section 5 shall read: American exports rise in importance. ‘‘Sec. 5. Cooperation among Executive The North American Free Trade Agree- Departments and Agencies. All Executive de- ment is the first trade expansion measure of partments and agencies shall cooperate in the effectuation of the provisions of this Order. this new era, and it is in the national interest The Interagency Group and the Secretary of that the Congress vote its approval. State shall facilitate such cooperative meas- Not only will passage of NAFTA reduce ures. Nothing in this Order shall be con- tariff barriers to American goods, but it also strued to impair the authority and respon- will operate in an unprecedented manner— sibility of the Secretary of Defense for secu- to improve environmental conditions on the rity and defense matters in or relating to the shared border between the United States and Freely Associated States.’’ Mexico, to raise the wages and living stand- ards of Mexican workers, and to protect our William J. Clinton workers from the effects of unexpected The White House, surges in Mexican imports into the United November 3, 1993. States. This pro-growth, pro-jobs, pro-exports [Filed with the Office of the Federal Register, agreement—if adopted by the Congress— 4:08 p.m., November 4, 1993] will vastly improve the status quo with regard NOTE: This Executive order was released by the to trade, the environment, labor rights, and Office of the Press Secretary on November 4, and the creation and protection of American jobs. it was published in the Federal Register on No- Without NAFTA, American business will vember 8. continue to face high tariff rates and restric- tive nontariff barriers that inhibit their ability Message to the Congress to export to Mexico. Without NAFTA, incen- tives will continue to encourage American Transmitting the NAFTA Legislation firms to relocate their operations and take November 3, 1993 American jobs to Mexico. Without NAFTA, we face continued degradation of the natural To the Congress of the United States: environment with no strategy for clean-up. I am pleased to transmit today legislation Most of all, without NAFTA, Mexico will to implement the North American Free have every incentive to make arrangements Trade Agreement, an agreement vital to the with Europe and Japan that operate to our national interest and to our ability to com- disadvantage. pete in the global economy. I also am trans- Today, Mexican tariffs are two and a half mitting a number of related documents re- times greater than U.S. tariffs. This agree- quired for the implementation of NAFTA. ment will create the world’s largest tariff-free For decades, the United States has en- zone, from the Canadian Arctic to the Mexi- joyed a bipartisan consensus on behalf of a can tropics—more than 370 million consum- free and open trading system. Administra- ers and over $6.5 trillion of production, led tions of both parties have negotiated, and by the United States. As tariff walls come

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down and exports go up, the United States and international leadership in the years to will create 200,000 new jobs by 1995. Amer- come. The North American Free Trade ican goods will enter this market at lower Agreement is an essential part of the eco- tariff rates than goods made by our competi- nomic strategy of this country: expanding tors. markets abroad and providing a level playing Mexico is a rapidly growing country with field for American workers to compete and a rapidly expanding middle class and a large win in the global economy. pent-up demand for goods—especially America is a Nation built on hope and re- American goods. Key U.S. companies are newal. If the Congress honors this tradition poised to take advantage of this market of and approves this agreement, it will help lead 90 million people. NAFTA ensures that our country into the new era of prosperity Mexico’s reforms will take root, and then and leadership that awaits us. flower. Moreover, NAFTA is a critical step toward William J. Clinton building a new post-Cold War community of free markets and free nations throughout the The White House, Western Hemisphere. Our neighbors—not November 3, 1993. just in Mexico but throughout Latin Amer- ica—are waiting to see whether the United NOTE: This message was released by the Office States will lead the way toward a more open, of the Press Secretary on November 4. hopeful, and prosperous future or will in- stead hunker down behind protective, but self-defeating walls. This Nation—and this Message to the Congress Congress—has never turned away from the Transmitting NAFTA Supplemental challenge of international leadership. This is no time to start. Agreements The North American Free Trade Agree- November 4, 1993 ment is accompanied by supplemental agree- ments, which will help ensure that increased trade does not come at the cost of our work- To the Congress of the United States: ers or the border environment. Never before By separate message, I have transmitted has a trade agreement provided for such to the Congress a bill to approve and imple- comprehensive arrangements to raise the liv- ment the North American Free Trade Agree- ing standards of workers or to improve the ment (NAFTA). In fulfillment of legal re- environmental quality of an entire region. quirements of our trade laws, that message This makes NAFTA not only a stimulus for also transmitted a statement of administra- economic growth, but a force for social good. tive action, the NAFTA itself, and certain Finally, NAFTA will also provide strong supporting information required by law. incentives for cooperation on illegal immigra- Beyond the legally required documents tion and drug interdiction. conveyed with that message, I want to pro- The implementing legislation for NAFTA vide you with the following important docu- I forward to the Congress today completes ments: a process that has been accomplished in the • The supplemental agreements on labor, best spirit of bipartisan teamwork. NAFTA the environment, and import surges; was negotiated by two Presidents of both par- • Agreements concluded with Mexico re- ties and is supported by all living former lating to citrus products and to sugar Presidents of the United States as well as by and sweeteners; distinguished Americans from many walks of • The border funding agreement with life—government, civil rights, and business. Mexico; They recognize what trade expanding • Letters agreeing to further negotiations agreements have meant for America’s eco- to accelerate duty reductions; nomic greatness in the past, and what this • An environmental report on the agreement will mean for America’s economic NAFTA and side agreements;

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• A list of more technical letters related campaign in the primaries? That’s ridiculous. to NAFTA that have previously been I’m proud of the showing that those two guys provided to the Congress and that are had, Florio and Dinkins. They came back already on file with relevant congres- from the dead. Everybody wrote them off. sional committees. Besides that, NAFTA wasn’t an issue in any These additional documents are not sub- of those races. I just think it’s ridiculous. The ject to formal congressional approval under only thing they need—[inaudible]—is doing fast-track procedures. However, the addi- the right thing for America. And I think they tional agreements provide significant bene- will. fits for the United States that will be obtained The real evidence is that if people think only if the Congress approves the NAFTA. you’re for change you get elected, and if they In that sense, these additional agreements, think you’re for the status quo that’s not as well as the other documents conveyed, working, you’re—[inaudible]—and the prop- warrant the careful consideration of each er change this time is to support NAFTA. Member of Congress. The documents I have transmitted in these two messages constitute NOTE: The exchange began at approximately 1:30 the entire NAFTA package. p.m. at Lexmark International, Inc. A tape was I strongly believe that the NAFTA and the not available for verification of the content of this other agreements will mark a significant step exchange. forward for our country, our economy, our environment, and our relations with our neighbors on this continent. I urge the Con- Remarks on NAFTA to Employees of gress to seize this historic opportunity by ap- Lexmark International in Lexington proving the legislation I have transmitted. November 4, 1993 William J. Clinton The President. Thank you very much. You The White House, know, Roberta was nervous as a cat, but she November 4, 1993. did a good job, didn’t she? Let’s give her a hand. She did great. [Applause] I want to thank Marvin Mann for his re- Exchange With Reporters in marks and for hosting us here today; my long- Lexington, Kentucky time friend and former colleague Governor November 4, 1993 Jones for his support and his kind remarks; your fine Congressman, Scotty Baesler, for his support of NAFTA. And I want to thank Elections and NAFTA also—there are people here from at least four Q. Mr. President, isn’t it going to be a lot other operations, business operations, in this tougher to get NAFTA votes from Demo- area I know of. Raise your hand if you’re crats after the election results? here so I’ll know whether I’ve got it right. The President: No. There are people here from Texas Instru- Q. Why not? ments, I think. Where are you? Over here. The President. What in the world would From Monarch Tool and Manufacturing, that have to do with anything? from Rand McNally, and from DataBeam. Q. Well, Members are going to say that Gosh, I can’t believe they roped you off over you can’t get the numbers. here. They’re afraid you’ll pick up some trade The President. That’s ludicrous. That’s secrets, I think. [Laughter] just a Washington story. That’s ridiculous. I wanted to come here to Kentucky and What about all the mayors that walked in to this plant and to you folks today to talk with no opposition that were active in my about the North American Free Trade

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Agreement. I also asked to come to a place system that was not facing up to the prob- where I could spend some time with real lems, where there was a huge gap between American workers, men and women whose what people in public office said and what lives are on the line every day and whose they did. And ever since I have been in children have a stake in the decisions that Washington, I have been trying to change I must make and the Congress must make that. We’ve tried to give the economy some for you and for our economy. help by bringing the deficit down, getting in- I came here mostly to answer questions. terest rates down, getting the economy going And I’m going to take some time answering again. We’ve had more private sector jobs questions when I finish my remarks, so I come into this economy in the last 9 months hope you’ll be thinking of them, questions than in the previous 4 years. We’re beginning about this North American Free Trade to turn it around. Agreement, about our economy, about how But I came here to talk about this trade they fit together. And if you have some hard agreement today for one simple reason: questions just give them to me with the bark Every wealthy country in the world, includ- off. I’m used to it. One of the things that ing the United States, is having trouble creat- dealing with the distinguished Washington ing jobs. Every wealthy country in the world press corps back there does is to sort of in the last 10 years saw an increase in in- harden you to the questions of daily life, and equality. That is, middle class people’s wages now I look forward to them every day. didn’t keep up with inflation, while people I also want to say to you this: Before I who were particularly able to triumph in the became President I was Governor of a State global economy had their incomes go way not all that much unlike Kentucky. My job up. So what had happened in America from was to try to create jobs and keep jobs. It World War II until about 10 or 15 years was to try to educate people so they could ago—which was we all got richer but we do the jobs of today and tomorrow. For most came together, the country was growing to- of the time I was Governor, our unemploy- gether—began to change, and we began to ment rate was above the national average, grow apart, so that a majority of our people but we kept working to export, to increase were working a longer work week for the investment, both domestic and foreign, to same or lower wages to pay more for the improve our education and training pro- basics in life, health care, housing, education. grams. And in my last year in office, in every And I was concerned about that. month we were first or second in the country We can bring the deficit down; we can get in job growth after a long dry spell. We had interest rates down; we can get investment plants shut down and move to Mexico when back up. But there is nobody anywhere in I was Governor of my State, at least three the world who has come forward with a good that I know of. I’m proud to say that we got argument for any way to create more jobs one of them to come back, because our peo- and raise the incomes of working people ple were more productive and they were without expanding trade. You’ve got to have good at changing the product line on a quick more people to buy more products if you basis when the demand required it. want to have the benefits of all the increasing I say that to make this point, first and fore- productivity. most: I spent most of the last 20 years around When we were coming here today, Mr. hard-working people who were struggling to Mann said, ‘‘You know, we’re producing a survive and sometimes to get ahead in a new product, and the workers really figured tough global economy. I ran for President out how to produce it. We have a new way because I was worried about the future of of dealing with defects, and they figured out our country and my own child’s future mov- how to do that. We now have all this empty ing toward the 20th century, because I space in this factory because they figured out thought we had three great problems: eco- how to do more in less space and increase nomic stagnation, a society that was coming productivity.’’ Well, if you want the benefits apart with violence and other problems when of that, you’ve got to have more people to it ought to be coming together, and a political buy the things that you’re producing, because

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productivity is the same person producing them in the Mexican market you’ve got to more in less time, right? No wealthy country make this stuff here.’’ That alone, that change can create more jobs and increase incomes, alone, we estimate will enable our auto- I will say again, without expanding world workers here in America to go from selling trade and global economic growth. Nobody only 1,000 cars in Mexico to 50,000 to 60,000 has explained how that gets done. And no- cars in Mexico next year alone. This is a big body fighting this trade agreement has made deal. an argument about how that gets done. It Now, the people who are against this, what cannot be done. do they say? They say, ‘‘You don’t want to About a half of the growth of our economy have a trade agreement with Mexico because in the last 5 years has come from exports. look at all the jobs that went to Mexico in Jobs that are tied to exports, on average, pay the 1980’s because they had low wages and about 17 percent more than jobs that have lax environmental enforcement. And all this nothing to do with exports. We do have trade will do is to make that happen everywhere problems in America, but they aren’t with in the country. It will be a disaster.’’ Mexico. Five years ago we had a $5.6 billion That one fellow talks about the giant suck- trade deficit with Mexico. This year we’re ing sound. Let me tell you something, folks. going to have a $5.5 billion trade surplus with I know a little about this. I was a Governor Mexico. The Mexican people collectively of a State that lost plants to Mexico. My State bought over $40 billion worth of American was small enough that if somebody shut a products last year. We have a big trade deficit plant down and moved it to Mexico, there with our trading partners in Asia, and I’m was a good chance I knew who they were, working hard to do something about that. I’m the people that ran the plants, the people going out to Washington State to meet with that worked in the plants. I used to go stand the leaders of all the Asian countries later at plants on the last day they were open and this month. But we need to know that right shake hands with people when they walked here at home, on our border, there are peo- off the job for the last time. I know some- ple who like American products who are thing about that. And I want you to under- dying to buy them. stand this very clearly from somebody who’s Let me just give you one example: This lived through this: This agreement will make company produces components that go into that less likely, not more likely. If we beat personal computers. Three years ago Mexico this NAFTA agreement, anybody who wants bought 120,000 computers from us, last year to go down to Mexico, right across the line, 390,000, this year 600,000. There are 90 mil- for low wages, for lax environmental enforce- lion people there. This trade agreement, ment, can go right on doing it and can make NAFTA, takes the tariff on computers and products there and put it back into the Amer- for software from 20 percent to zero. In other ican market with zero tariff as long as they’re words, instead of 600,000 computers, we can close enough to the border, if we beat it. be selling millions there. That’s just one ex- If we adopt it, their tariffs will go down ample. It will create jobs for us. Exports from on our products; their requirements that we Kentucky alone have grown 350 percent to produce in their country to sell in their coun- Mexico over the last 5 years because they’ve try will go down: less incentive to move fac- been bringing their tariffs down. tories there. They will get factories all over Now, if this trade agreement passes, their country, not to import stuff to America NAFTA, we estimate America will add an- but to produce for the Mexican market. other 200,000 jobs by 1995 alone. Why? For That’s what they get out of this. the following reasons: Number one, our tar- The short of it is everything bad that every- iffs today on Mexican products are much body tells you about with this agreement can lower than their tariffs on ours, so when they go right on happening if we don’t adopt it. take theirs down we’ll gain more. Number If we do adopt it, it will get better. Why? two, they have a lot of domestic content re- Because wages will go up faster in Mexico quirements, especially on automobiles. In if they adopt it, because they’ll have more other words, they say, ‘‘If you want to sell growth and because the trade agreement re-

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quires them to observe their own labor code, and investment incentives that will help peo- and the President has committed to raise the ple to find new jobs. We have to do that, minimum wage every time economic growth and we are going to do that. goes up every year. Number two, for the first The whole unemployment system today is time their own environmental codes, which a joke for the economy we’re facing today. are pretty good on the books, will have to I know that, and I know we have to fix it. be enforced because they’re in this trade But that has to be done without regard to agreement. This has never happened in the NAFTA. NAFTA creates jobs. NAFTA whole history of world trade where one coun- makes the problems we’ve got in our trade try has said, you can put our environmental and investment with Mexico go down, not laws in the trade agreement and enforce go up. NAFTA enables us—and this is the them. We’ll be able to do that. last point I want to make—NAFTA enables The third thing I want to say to you is us to take this trade agreement with Mexico that you know this here in Kentucky because and extend it to other countries in Latin you trade so much. Wage rates are not the America who are democracies and believe in only thing that determine where smart peo- free market economics. And that’s where the ple put their plants. Otherwise there would real jobs come in, when you’ve got a whole be no plants at all in Kentucky, and Haiti trading bloc from Canada all the way to the would have no unemployment rate. Right? southern tip of Latin America, when you’ve I mean, you don’t even have to take the got over 700 million people working together Americans’ word for it. Look at where Toyota and trading together. And we know those is. Pretty close to here, right? BMW, where people like Americans, like American prod- are they? South Carolina. Mercedes just ucts, and want to be a part of our future. made a decision; where did they go? To Mex- It is our insurance policy. We hope that ico? No, to Alabama. Why? Because a study we will have a new trade agreement by the recently concluded on the auto industry end of the year when all nations, from Asia shows that you can manufacture a car in to Europe and all around, lower their barriers America and put it in an American showroom to our products. We hope that. But we know for over $400 less than you can manufacture the people in Latin America like our people, it in Mexico and put it in an American show- like our culture, like our products, will buy room, because our workers are more than them if they get a chance, and are dying to 5 times more productive, and the transpor- do it. And they are going to look at Congress tation cost is less, even though the labor costs and how we vote on this NAFTA legislation, are higher. and they’re going to decide whether America We can compete and win. People talk all is going to be a trustworthy, reliable leader the time about the apparel industry because and partner in the years ahead to make this we phased out some of the protections on world what it ought to be. apparel and textiles. Do you know that we I have worked my heart out for this be- exported to Mexico $1.6 billion of textiles and cause I think it’s good for your jobs and good apparels last year? We sent to them. They for your children’s future. And I don’t think wanted to buy our stuff. Even there, we can we can afford to cut and run. We cannot turn compete when given the chance. away from the world. If I thought for a Now, will some people be dislocated? Yes, minute that we could run off from this agree- they will. Some people will be dislocated if ment and all the others and build a wall we do nothing. Every year, Americans lose around this country and make jobs stable their jobs. And one of the tough parts of the again and raise incomes, well then I would world economy we’re living in is that now, certainly do it because it would be in your unlike it was 10 or 20 years ago, when people interest. But it won’t happen. You cannot run lose their jobs, they don’t normally get back and hide from the world we are living in. the same job they lost. They normally have So we better just rear back and do exactly to find a new job. That means that we owe what this company’s doing: We’re going to you, those of us who are in Washington, we have to compete and win. I think we can do owe you a system of education and training it. This is a big vote.

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I compliment your Congressman for hav- That’s one reason why, in addition to these ing the courage to be for this agreement. I others—I should have said this in my talk— hope you’ll ask the other Members of the every living former President, every living Kentucky delegation and the Senators to vote former Secretary of State, every living former for it, because it will determine in large Secretary of the Treasury, every living Nobel measure where we go as an economy over Prize-winning economist, and 41 of the 50 the next 10 years and whether we can escape Governors have endorsed this. You know, this terrible trap that is gripping Japan and these economists, they disagree on more stuff Europe and the United States of not being than all the living former Presidents do. You able to create enough jobs and not being able might think any one of us would do some- to raise people’s incomes every year. We’ve thing wrong to you, but surely not all of us got to turn it around. This is the first step, would at the same time, right? [Laughter] and I ask you to help us get it done. And that’s one reason. Thank you very much. Next question. We’ve got some microphones in the back. Q. Can NAFTA help improve exports to Who has the mikes? Raise your hands. Any- Japan and the European Community as well? body have a question about this? There are The President. It can indirectly, and let some. Just go through and find people, and me tell you why. That’s a very good question, I’ll go from mike to mike. Go ahead. and it’s important. Let me explain, first of all, from the point of view of these other na- [A participant asked if Mexico has similar tions that have basically caught up to the tariffs on trade with the European Commu- United States since World War II. That’s not nity and Asia and if Mexico might sign trade all bad; that’s enabled them to buy more of agreements with Europe and Asia if NAFTA our products. But in Asia, most nations have does not pass.] developed by willfully keeping their wages The President. The answer to both ques- down, getting very high savings rates, plow- tions is, yes. And let me explain that. Let’s ing back the savings into new plant and just take computers because that’s an easy equipment and new products all the time. example. If you take computers, there’s a 20 That’s what they’ve done. When you do that, percent tariff on all computers made outside you don’t have enough money to buy other of Mexico for sale in Mexico, on our prod- people’s products. ucts, on European products, on Japanese So Japan has a big trade surplus with us. products. If this agreement goes through, the They’ve been very good about investing in tariffs will be phased out on American prod- our country and putting our people to work, ucts; they will maintain the same tariffs on but they still don’t buy as many of our prod- Japanese and European products. So we will ucts. This year, for the first time, we’re sell- get a trade advantage over them in the Mexi- ing some rice to them, for example, which can market, in return for which they will get is at least popular back where I come from. more access to American investment China has a $19 billion trade surplus with throughout their country. us—we buy 38 percent of all the exports of If we don’t do it, what will happen? They’ll China, all of us do—Taiwan this year about go get the money from Japan or Europe, and $9 billion, although it goes up and down. Eu- they’ll give them the same deal. And they rope will have a trade deficit or a trade sur- won’t be nearly as concerned as we have plus with us. Sometimes they buy a lot more been at what effect this has on American from us than they sell us, but they have to wages and on the environment, because they be growing to do it. Now their economies don’t live next door to Mexico. I mean, what are flat. would you do? If I were the Finance Minister Here’s what I think will happen. I can’t of Japan, on the day after Congress voted promise you this, but here’s what I think will down the North American Free Trade happen. If we adopt NAFTA, the rest of the Agreement, I’d get on an airplane and go to world, Europe and Japan will see, ‘‘Well, Mexico City and cut a deal. That’s what I America might have a whole trading bloc, would do. And the risk of that is very high. from Canada down to the southern tip of

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South America, and we could be really at a Today—this is an astonishing thing—Mex- disadvantage there. So we better adopt this ico buys more American products per capita new worldwide trading agreement they want- than any country in the world except Canada, ed, lower our tariffs, lower our barriers, let even though it’s still a poor country. That’s them sell into our markets so we’ll have at because 70 percent of all the money they least some access to the rest of the markets.’’ have to spend on foreign products gets spent So I think NAFTA will be a huge indirect on American products. So what I think will incentive for Japan and for Europe to reach happen is, there will be more investment by an agreement on a new world trading system Americans in Mexico, but instead of being by the end of the year that I’ve been pushing along the border to make products to sell for hard and that we’ve been working for, back here, it will be down in the country to for years and years. If that happens, you will make products to sell in the country. That see a very large increase in the number of will put more people to work. It will stabilize manufacturing jobs in America in a short the population. Over the long run it will re- time, just because Europe and Japan have duce illegal immigration and will increase so much more money than Mexico does. I their ability to buy our products. mean, there’s more of them, and they’ve got more money. So I think that would really be Now, will some people be dislocated? a godsend, and I think there’s a good chance Probably, because nearly every trade agree- that it will happen. ment that creates jobs costs some. When that [A participant asked about programs to help happened at home, what we did was several American workers who lose their jobs be- things. First of all, we’d go into a community cause of NAFTA.] if it had high unemployment and actually The President. He said there’s a big dif- offer to invest money at the State level to ference of opinion about what will happen help attract new industries to that town. in the long and the short run. Even if it’s Then we would offer to share the cost of good for us in the long run, will we lose some training the workers. And if it was a dis- jobs in the short run? What did we do for tressed community, we would also give them people who lost their jobs when I was in Ar- an enterprise zone that would give extra tax kansas? And what have we proposed to do incentives to invest there. with this NAFTA agreement? All good ques- What we’re doing at the national level is tions. to provide much more money for job retrain- First, let me say what I think will happen ing, number one. Number two, we’re going in the long and short run, then let me answer to set up a development bank to try to get the other two questions. And this is a com- funds for indigenous businesses to start in plicated thing. There will still be people from areas that have been hurt by this, which I the United States who will vest in factories think is very important. And number three, in Mexico if this agreement goes through. we’re going to have something we now—we But today when people invest in factories in don’t call them enterprise zones, we call Mexico, they invest along the American bor- them empowerment zones at the Federal der in factories for the purpose of producing level—that we’re going to locate in some of there and selling here. What the Mexicans the most distressed communities in this want is to, in effect, erase that borderline and get investments in Mexico City to put country that will give huge incentives for people to work there to produce for the people in the private sector to put Americans Mexican market, not for the American mar- back to work in high unemployment areas. ket. That’s what they get out of this deal. There is not enough Government money to And obviously, the more investment they get fix all these problems. You’ve got to get the down there and the more jobs that are cre- private sector to invest and put people back ated and the more they sell to themselves, to work. So those are the three things we’re the higher their incomes will be and the working on doing now. That’s a very good more they’ll be able to spend money on for- question. eign products, too.

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Q. Since this is basically an extension of to the Mexican border. That’s about how big the U.S.-Canada trade agreement, what nu- it is, about one-twentieth the American econ- merical benefits has the U.S. gained from the omy. U.S.-Canadian trade agreement? Q. Good afternoon, Mr. President. Thank The President. Well, the trade agreement you for coming to Lexmark. We certainly ap- we have with Canada is—it is an extension preciate it. I’d like to take us into the future, of it, but what we did with Canada was to say, maybe 1996, the month October, Hillary basically take more and more of our trade is ahead by maybe five points in the—no, and put it into a free trade zone, that is, we I understand that you’ll be running for re- took quotas off, we lowered tariffs. But Can- election; hopefully, Congressman Baesler ada and the United States are both quite will be right there with you. well-developed countries. So the main bene- The President. I don’t know; this has fit that we got out of the Canada-U.S. trade turned out to be a hard job. [Laughter] Go agreement is we got to sell more of the things ahead. that we were really good at producing or had [The participant then asked about possible a low cost advantage in, they got to sell more legislation to help workers displaced because of what they were good at producing or had of NAFTA.] a low cost advantage in, so that we essentially The President. The people who are spe- got to play to our strengths. And the volume in trade in both countries went way up. cifically displaced, there are only three things Our trade with Canada is more or less in you can do for them in my opinion, that I balance. But even when trade is in balance, can think of, anyway. And I’ve been working it can be a great benefit to both countries at this now for the better part of 20 years, if, by putting it in balance, it grows faster on and off. One is, they should have access than your economy would have grown other- to a system of training and education that wise. In other words, if we added more eco- is much more effective than the one we have nomic growth and they added more eco- today. The Federal Government’s got 150 nomic growth, we both came out ahead. And different employment training programs. that’s been the primary benefit there. The unemployment system, as all of you In the case of Mexico, because they’re at know, still works like it used to: You get an a different point in their development, in all unemployment check, and you’re supposed probability we will continue to have a trade to basically check around and see if you can surplus with them, and they will get an in- find a new job. But the idea is, people wait vestment advantage from us in the rest of until the benefits run out, hoping their old their country. So I do think that the two employer will call them back. That used to countries are not too analogous now. I think happen; it doesn’t happen much anymore. 30 years from now they will be. But I think What we’re going to do is to construct a sys- in the meanwhile—let me just say, the peo- tem that will give anybody who loses their ple in Mexico who are not for this deal, and job because of a trade-related dislocation ac- there are people in Mexico who are not for cess to a much better training program, much it, they’re not for it because they think that more quickly, tied to identifying those areas they’re giving us a permanent trade surplus where the jobs are growing in number any- with them in return for having access to our where within driving distance of them, first capital, because Mexicans like American thing. products so much. Secondly, we’re going to have a develop- So there will be a difference there. In ment bank, a North American development other words, they can’t possibly quite enter bank which will concentrate its activities in into the same relationship with us that Can- areas where there have been substantial job ada did because they’re not capable, their losses to try to start new job enterprises economy’s not big enough or diverse enough there. yet. The Mexican economy, even though 90 The third thing we’re going to do is to de- million people live there, is about the size velop special investment incentives targeted of the California economy from Los Angeles to those areas where the jobs have been lost.

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Those are the only things that I can think so that we would raise labor standards on of that we can do, except to give you a healthy both sides of the border. We have that now. economy that’s producing more jobs. Secondly, I wanted to know that they One of the things that makes this so fright- would enforce their environmental laws, be- ening to people is that it used to be—I mean, cause they weren’t now. Their environmental when I was a kid, when somebody lost their code is actually pretty good, but it’s not being job, when the country had a 3 percent unem- enforced. So we set up a mechanism for ployment rate, that was like having zero un- doing that and a financing mechanism to get employment, because there were 3 percent the money to do it. of the people who were moving around all The third thing I wanted was a provision the time. Now when people lose their jobs, that would take account of unintended con- they’re afraid they’ll never get another one sequences. And that really goes to something or they’ll never get another one paying as that two or three of you have asked about. much as the one that they just lost. So we That is, suppose all these brilliant people who have a much heavier responsibility. have been negotiating this turn out to be The answer to your question is that you wrong about something, not just for us but should be able to see these specific programs for them, too? I mean, suppose within a year on the books not by October of ’96 but by after this deal takes effect, there’s some small the end of the budget cycle in ’94; we should but not insignificant part of their economy have passed these programs and put them or ours that seems to be on the verge of just vanishing like that, something no one fore- in place for those folks, because that’s when saw? This agreement has a provision to put you’ll begin to see it. In other words, when the brakes on that and to reinstitute the we adopt the trade agreement the end of this former system as it applies to that sector of year, we have $90 million set aside right now the economy for a period of 3 years while for extra training investment for those folks we work it out. So there’s a protection against in the short run, to buy us a year and a half unintended consequences. to enact a new training program and invest- And the last thing I guess I ought to say ment strategy. But we should be able to get is, suppose any party becomes convinced that it done by the end of ’94 when Congress goes the others are proceeding in bad faith; you home; that’s our goal. And if I could plug can pull out with 6 months notice. That’s an- my wife a bit, if we provide health care secu- other thing most Americans don’t know. This rity to all of them, that’ll also be a huge incen- is not the enemy. In other words, if some- tive, because then at least they won’t lose body turns out to be lying or some develop- that for their children. ment turns out to be unanticipated, there are Q. Welcome to Lexmark, Mr. President. ways to correct this. My question is, do you have any concerns, Now, to go back to your specific question, if there are any concerns, about Canada’s re- Canada likes what we did on the environ- cent leadership change being—and it is an mental agreement, on the labor agreement; anti-NAFTA leadership change. Are you con- they wanted that done. They now have sub- cerned about that? stantially, to the best of my knowledge, no The President. Basically, no. We’ve had more problems with Mexico. They have some a lot of conversations with the new leader outstanding problems with us in trade, which of Canada and the new party. He raised a we are negotiating through now. We do not lot of the same questions about NAFTA that believe that it will be in any way necessary I did. And when I called him—I mean, what to reopen the agreement to resolve those I wanted to do with this trade agreement, problems, and we’re working hard on them and I guess I ought to tell you that, I wanted and we have been this week. So I feel pretty to have three things added to the agreement, optimistic that it’ll be okay. which have been added. One is, I wanted Let’s get over here. Give equal time to the to know that there would be some device other folks here. by which we could make sure the Mexicans Q. Mr. President, many Americans and were moving to enforce their own labor code American companies are concerned with in-

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tellectual property rights, and particularly in cally, I think that they really are saying what the Mexican market. Has there been any pro- they honestly believe to be in the best inter- vision in NAFTA to address that? ests of the country. The President. Yes. The NAFTA agree- Now, there are a lot of people who have ment offers protections for intellectual prop- criticized the NAFTA agreement, coming erty rights and for investment, which I think out of the labor movement, particularly, on are quite important. You know, the intellec- the grounds that there are violations of tual property rights may sound esoteric to human rights in Mexico or the Mexican sys- some of you, may sound like somebody wants tem is not as democratic as ours is. It is dif- to write a book and not have it copied, and ferent from ours and not as open and demo- that’s part of it. But it’s also part of the soft- cratic as ours is. But it is becoming more ware business and part of anything that democratic. Again, I think if we shut them comes out of people’s creative skills. It’s a off from us, it is likely to become less demo- big part of America’s economic advantage in cratic. the world is that we develop all these ideas. We do a lot of trade with a lot of other And I’ve just been working to try to open countries that are not as close to us politically other markets for a lot of our products that as they are. I mean, we’ve had a lot of politi- were closed during the cold war because we cal problems, for example, with China after were worried about letting other people get Tiananmen Square. But we keep buying a our technology or our ideas. And we’ve just lot of products from them, and most Amer- taken the wraps off $37 billion a year worth ican business interests have asked us to con- of computers, supercomputers, and tele- tinue to do it. And many American labor in- communications equipment. And we’re look- terests have asked us to continue to do it ing at some others, some software and things because we’re beginning to invest over there like that. And one of the problems is protect- and get some markets over there. ing the intellectual property rights of our I think we have to be mindful of that. And people around the world. But I think you if we think that there are abuses of human will find that the provisions there on intellec- rights anywhere, we should stand up to them. tual property substantially improve what hap- And I’ve tried to do that. But I don’t think, pens now there. given the dramatic improvements in the peo- Q. Mr. President, I haven’t seen too many ple who, on that score, who are operating things in my life that Republicans and Demo- in Mexico in the last several years, I don’t crats have agreed on. You may have noticed think that that’s a good argument to run away some of that in Washington. Doesn’t it scare from this trade agreement. you when your opponents suddenly become That is, to me, the Salinas government and friendly? And also, are there some human the man who was there before him started rights demands in this thing? a move away from their anti-American, sin- The President. He’s worried about the gle-party, hunker-down, isolate-from-the agreement because the Republicans and world, operate-in-ways-that-we-don’t-con- Democrats agree on it, right? sider-acceptable system, to one that’s more Let me just say, first of all, back when I pro-American, more open, and more demo- was a Governor I had much less partisanship cratic. I think they are moving in our direc- to contend with than I do in Washington. tion. I think if we reject them, they will de- It seems to be a disease that grips the water velop a different strategy, and it’ll make it up there. But I think what happens, I think less likely that they will grow in human rights all these people who have served as Presi- and democracy observance. dent, when they get out and they have no Q. It’s been estimated that this is going other personal agenda really, by and large, to require $2.4 billion in funding over the and they look on their country and they look next 5 years. How do your propose that we at the rest of the world, and most people, generate that funding? after they’ve been President and they can’t The President. I don’t think it will. What run for anything else or do much else in will it require the money for? What’s the terms of their personal ambition or politi- money going to be spent on? They keep

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throwing these dollars around. What money Marvin Mann. I hesitate to interrupt this will be required? important discussion, but we here at Q. The lack of tariffs, what we’re charging Lexmark have a serious problem. on tariffs now, funding for the programs that The President. You’ve got to go back to would be for the displaced jobs, et cetera. work? [Laughter] The President. Over the next 5 years, I’ll Mr. Mann. Our laser printers are so hot tell you what I think it will cost. The tariffs in the marketplace that people want more are a tax, essentially, and we’re going to re- of them than we can build. And so these peo- duce the tariffs; that costs $2.5 billion over ple are going to be mad at me. They’re going 5 years. The package that we sent up to the to be upset at me if I don’t let them get Congress will replace those tariffs by having back to work soon. [Laughter] So please take a temporary fee of $1.50 on foreign travel, one more question, and then we probably air travel coming into the United States, and ought to close. by changing some of the ways we collect cus- Q. It’s my understanding that some tariffs toms and things of that kind. They will make will still be in place after the agreement up the $2.5 billion. comes into effect. My question is what per- Then, we think that the training programs centage of goods going each way will still have tariffs on them immediately after, and will cost about $90 million in the first year, then after 5 years? and then thereafter more. But they will be The President. Most of them will be all funded next year in the budget cycle, in the gone after 5 years. I can’t answer that, but ordinary course of planning the Federal I’ll get you an answer. If you give me your budget, not massive amounts. address, I’ll sent you a specific answer to it. On the environmental cost, we’ve now got Let me tell you, this was a part of the nego- an agreement with the World Bank to fi- tiation, but some of the particularly sensitive nance through appropriate loans several bil- items that were clearly felt by one side or lion dollars’ worth of environmental cleanup the other to need a longer period of time in Mexico which will be paid back presum- to get to where they could fully compete ably by the polluters themselves in Mexico; were given more time. There are a few things they have to work out the repayment terms. where the phaseout goes all the way to 7 Now, that will be the lion’s share of it. years or 10 years. But by and large, there There may be some environmental obliga- are substantial reductions in the tariffs imme- tions on us that are not yet fully paid for, diately, and almost all the reductions occur but they won’t get up to anywhere near the within the first 3 years. figure you mentioned. And we have a border And let me just back up and say, while commission with some money in the till the products that we’ve mentioned here, and there, a few hundred million dollars, and I think all the products that are produced some other bonding options that we have to by any of these folks at these five companies fund the environmental costs. So we’ve cov- that could be sold into Mexico, have a 20 ered the loss of tariffs in the bill now before percent tariff, some Mexican products are the Congress, the training programs will be less. And the average Mexican tariff is just covered as part of the training initiative I a little over 10 percent. But a lot of the stuff present to the Congress next year, and the where we’ve got real hot opportunities, that’s only other issue we have to worry about is a 20 percent tariff. So that’s why I’ve been whatever comes up over the next 5 years in so interested in them. Our average tariff on environmental costs that we have to pay for their products is 4 percent. in America; that is usually done by asking Where there is a longer phaseout period, the people who do the pollution to pay the it’s normally because we have something lion’s share of cleaning it up through making called a nontariff barrier, that is, an absolute bond payments. So I think we’re going to limit on how much can come in. That’s nor- be okay on that. mally on textiles and apparel. So there’s a A lot of the costs have been way over- longer period of phaseout there to make sure stated, in my view, based on what we know. that there’s more of an opportunity to adjust

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to whatever the competitive developments velopment, U.S. International Development are, so that we don’t just throw cold water Cooperation Agency. on them. ‘‘I am pleased to announce the addition I wish I could stay all day. You guys have of these hard-working men and women to been great. I hope you will support this. It my administration,’’ the President said. means more jobs for this country. And also, don’t forget, one of the things Department of Housing and Urban I want to emphasize again, it didn’t come Development up in the questions. When I was at the Jeanne K. Engel, General Deputy Assist- United Nations a few weeks ago, I had a re- ant Secretary for Housing, Federal ception for the leaders of all the other Latin Housing Commissioner American countries who were there. And I Art Agnos, Regional Administrator, Region can tell you that Argentina and Chile and IX Venezuela and Colombia and Bolivia and a Margery Austin Turner, Deputy Assistant lot of other countries that are struggling to Secretary for Research, Evaluation, and maintain democracy want to open up mar- Monitoring, Office of Policy Develop- kets with us, and they want to buy our prod- ment and Research ucts. Tiny Colombia, in the last 2 years, has increased their purchase of American prod- Department of Labor ucts by 69 to 64 percent a year. This is a Edmundo A. Gonzales, Deputy Assistant big deal. But if we don’t do NAFTA, they’ll Secretary, Office of the American Work- wonder whether we’re really serious about place embracing all of Latin America. Oliver B. Quinn, Deputy Solicitor of Again, I say I hope you will support it. I Labor, Office of the Solicitor do believe that it will give us in the short term a competitive advantage over the Euro- U.S. Agency for International peans and the Japanese. But the most impor- Development tant thing is it will pressure them to adopt Nan Borton, Director, Office of Foreign a new worldwide trade agreement. American Disaster Assistance, Bureau for Food & workers are now the most productive in the Humanitarian Assistance world. You’ve got to believe in yourselves. Ramon E. Daubon, Deputy Assistant Ad- We can do this. We can compete. We can ministrator, Bureau of Latin America win if we have access to the markets. That’s and the Caribbean what this gives us. Thank you very much. We need your help. NOTE: Biographies of the appointees were made available by the Office of the Press Secretary. NOTE: The President spoke at 1:45 p.m. on the production floor. He was introduced by employee Roberta Canady. In his remarks, he referred to Remarks on Establishing the Marvin L. Mann, president and chief executive Bipartisan Commission on officer, Lexmark International, Inc. A portion of the question-and-answer session could not be Entitlement Reform and an verified because the tape was incomplete. Exchange With Reporters November 5, 1993 Appointment of Officials to Senior The President. First of all, I want to thank Executive Service Posts the leaders of Congress who are here and November 4, 1993 make a couple of comments, if I might. I am delighted that now both Houses have The President today approved seven men acted on the crime legislation. I congratulate and women for Senior Executive Service the House and the Senate, and I look forward posts at the Department of Housing and to working with them on getting the strongest Urban Development, the Department of possible crime bill out we can and hopefully Labor, and the Agency for International De- meeting that goal that I have had for a long

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time now of putting another 100,000 police Chair. We will be naming the rest of the officers on the street, which I am convinced commission in the fairly near future. But I’m will do more in less time to lower the crime hopeful that this commission, by next spring, rate than anything else. I also hope that we will be able to do some work which will chart can now move forward to a debate in the a future for the Congress and for the country, Senate and the House on the Brady bill. I which will enable us to do the people’s busi- hope that it will pass before the Senate goes ness up here and keep the country moving home and the House goes home. forward into the 21st century. Finally, let me make one other preliminary So I thank all the leadership for their will- comment. During all the debates on the ingness to support this. And I’m going to sign budget, many of which were acrimonious and the Executive order and then we’ll answer partisan, there was virtually 100 percent un- a few questions and get on with our meeting, derstanding on the part of every Member of because there’s a vote in the Senate. Congress that, over the long run, our ability [At this point, the President signed the Execu- to bring our budget closer to balance and tive order.] to free up money for needed investments re- quired us to take a hard look at the entitle- NAFTA Debate ments part of our budget. Q. Mr. President, why are you putting the The budget that we have just adopted has Vice President up against the king of the one- been very successful in many ways. It’s liners? Aren’t you sacrificing a political career helped to bring interest rates to historically here? low levels. We’ve got investment coming The President. Let me say this, I certainly back into the country. We have more jobs appreciate the way you characterized it. If coming back in. But we don’t have the money we get an honest discussion of the issues, the to invest in new ventures that might be im- Vice President will do just fine because he’s portant to our national defense or to our eco- an accomplished debater and, more impor- nomic growth and that’s because we had to tantly, because he’s got the evidence on his adopt steep defense cuts and a hard freeze side. I understand why Mr. Perot wanted to on domestic spending for 5 years while the have a rally packed with people that he could entitlement growth continued unchecked. get there who already had their minds made As a result of that, today I am establishing up against NAFTA. But I think the Vice by Executive order a bipartisan commission President’s issued the challenge to show up to look into the issue of entitlements of our in Florida and have Larry King moderate the Government, how it works, and what’s the debate. And if we get a genuine discussion impact on the budget long-term as well as of the issues, I’m very confident that he’ll into the general tax structure of the Federal do fine. It was his idea; I’ve got to com- Government. I want to acknowledge and pliment him. It wasn’t mine. Wasn’t it? thank the leaders, Republican and Demo- The Vice President. Absolutely—— crat, of the House and the Senate for agree- Q. Why do you feel it’s necessary to take ing to support this commission and name on Ross Perot to do what many people would members to it. Two-thirds of the members consider sinking to his level? will be appointed by the congressional lead- The President. Why are you sinking to ership on a strictly bipartisan basis. I will ap- his level, Mr. Vice President? [Laughter] point a third. Why did you want to do that? And then I want to give special attention The Vice President. I think the country to two Members of the Congress who have does this from a discussion of the facts about worked on this very hard. One is Senator NAFTA. What we’re finding is that a whole Kerrey who had the idea for this commission, lot of people in the Congress say, ‘‘We agree and I intend to name him the Chair. The with you on the facts, but we’re getting a other is Senator Danforth of Missouri, who lot of political pressure on the other side. is in his last term but has been interested Is there any way that you can get the facts in the entitlement issue for a very long time, out to a wider audience?’’ And I think the and I have asked him to serve as the Vice discussion of what NAFTA really does—it

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creates new jobs in America. The volume of Executive Order 12878—Bipartisan our products being shipped to Mexico has Commission on Entitlement Reform been increasing twice as fast as the volume November 5, 1993 of their goods being shipped here. The more discussion of the facts, the better. By the authority vested in me as President Q. Are you going to do one debate or by the Constitution and the laws of the three, Mr. Vice President? United States of America, including the Fed- The Vice President. Well, I’ve contacted eral Advisory Committee Act, as amended (5 Larry King and said that first of all, I issued U.S.C. App.), and in order to establish a Bi- this challenge; he accepted and proposed partisan Commission on Entitlement Re- Florida. I said I’ll be there on Sunday. I con- form, it is hereby ordered as follows: tacted Larry King. And we want a neutral Section 1. Establishment. (a) There is es- format and a neutral place. I don’t want to tablished the Bipartisan Commission on En- go to a rally filled with 20,000 people on one titlement Reform (‘‘Commission’’). The side of the issue. He was generous to say Commission shall comprise 30 members to that he would buy the television time. Well, be appointed by the President. Ten members shall be Senators, five each from the Demo- let’s let Larry King provide the television cratic and Republican parties. Ten members time. shall be Members of the House of Rep- Senator Mitchell. Why don’t you pay for resentatives, five each from the Democratic the television time? and Republican parties. Ten members shall The Vice President. I considered that— be individuals from either the public or pri- [laughter]—I considered just picking up the vate sector who have experience and exper- tab. tise in the areas to be considered by the Q. Mr. President, aren’t you the slightest Commission. bit concerned, not the least bit worried? (b) The President shall designate a Chair- The President. No. We’re making person and Vice-Chairperson from among progress on NAFTA. I feel good about it. the members of the Commission. And what we find is that if people—I went Sec. 2. Functions. (a) The Commission yesterday, when he was having a press con- shall recommend potential long-term budget ference saying I wouldn’t answer questions savings measures involving (1) revisions to from ordinary workers. I was with a thousand statutory entitlement and other mandatory ordinary working people in Kentucky an- programs; and (2) alternative tax reform pro- swering their questions. They were good posals. The Commission shall report its rec- questions, good, firm, hard questions. But I ommendations respecting potential entitle- just believe that this is one of those issues ment and other mandatory program savings where the truth will set you free. I think the and tax system revisions to the National Eco- more people know, the more they’ll be for nomic Council and to the Congressional it. leadership by May 1, 1994. We have confidence. The Vice President, (b) The Commission shall decide by a three-fifths vote which recommendations to actually, when he went on David Letterman, include in the report. At the request of any I knew that he could stick up Ross Perot on Commission member, the report will include one-liners, right? So, that’s it. that Commission member’s dissenting views Thank you very much. or opinions. (c) The Commission may, for the purpose of carrying out its functions, hold such hear- NOTE: The President spoke at 10:44 a.m. in the Cabinet Room at the White House. ings and sit and act at such times and places, as the Commission may find advisable. Sec. 3. Administration. (a) To the extent permitted by law, the heads of executive de-

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partments, agencies, and independent instru- [Filed with the Office of the Federal Register, mentalities shall provide the Commission, 3:10 p.m., November 5, 1993] upon request, with such information as it may require for the purposes of carrying out NOTE: This Executive order will be published in its functions. the Federal Register on November 9. (b) Upon request of the Chairperson of the Commission, the head of any Federal agency or instrumentality shall, to the extent possible and subject to the discretion of such Teleconference on NAFTA With head, (1) make any of the facilities and serv- Midwest Farmers, Ranchers, and ices of such agency or instrumentality avail- Agricultural Broadcasters and an able to the Commission; and (2) detail any Exchange With Reporters of the personnel of such agency or instru- November 5, 1993 mentality to the Commission, to assist the Commission in carrying out its duties. The President. Hello? (c) Members of the Commission shall Q. Hello, Mr. President. serve without compensation for their work The President. How are you? on the Commission. While engaged in the Q. Well, pretty good today, sir. How are work of the Commission, members ap- you? pointed from among private citizens of the The President. I’m great. Thank you for United States may be allowed travel ex- taking this time to visit with us. penses, including per diem in lieu of subsist- Q. Thank you for affording us the oppor- ence, as authorized by law for persons serv- tunity. ing intermittently in the Government service The President. I know that all of you have (5 U.S.C. 5701–5707) to the extent funds are some questions, but I’d like to make just a available for such purposes. brief opening statement, if I might. As all (d) To the extent permitted by law and of you know, I think, before I took this job subject to the availability of appropriations, I was a Governor of an agricultural State, the Department of Health and Human Serv- and I learned very early that the future of ices shall provide the Commission with ad- agriculture in America is in exports. We’ve ministrative services, funds, facilities, staff, got over 700,000 agriculture jobs in America and other support services necessary for the today that are export-related. And if NAFTA performance of the Commission’s functions. passes, that number will continue to rise, The Secretary of Health and Human Services meaning more jobs for people in our farm shall perform the functions of the President communities. under the Federal Advisory Committee Act, I know now that a big part of my job as as amended (5 U.S.C. App.) (‘‘Act’’), except President is going to be to continue to raise that of reporting to the Congress, in accord- more and more opportunities for exports in ance with the guidelines and procedures es- America, and I’m doing that and the negotia- tablished by the Administrator of General tions we have going on with Japan now, we Services. even have some hopes that we’re going to (e) The Commission shall adhere to the be able to sell some rice in Japan before too requirements set forth in the Act. All execu- long, which is a big issue for farmers in my tive branch officials assigned duties by the part of the country. Act shall comply with its requirements with We’re working hard across the board to respect to the Commission. get a new GATT agreement that will open Sec. 4. General Provision. The Commis- agricultural markets for our farmers. And sion shall terminate 30 days after submitting NAFTA is a part of our comprehensive strat- its report. egy to boost farm income. Since 1986, our agricultural exports to William J. Clinton Mexico have nearly tripled. Mexico is now The White House, our fastest growing major export market. In November 5, 1993. 1992 we exported almost $4 billion worth of

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products to Mexico, 40 percent higher than The President. Thank you. Terry Baer, 1990. And the Agriculture Department—and are you next? Secretary Espy is here with me today as you Q. Yes, sir. know—estimates that we will export $2.6 bil- The President. Howard, did you have an- lion more with NAFTA than without it by other question? I want to make sure I’ve got the end of the transition period in the agree- this right, now. ment. Q. We were told we had one question, So I think this is a good deal for our farm- so—— ers. It’s an even better deal this week than The President. Okay. Well, go ahead, it was last week because of some of the agree- Terry. ments made by the Mexican Government af- Q. Okay. Greetings, Mr. President, from fecting sugar and citrus and, to a lesser ex- central Illinois. I live near Edelstein, Illinois, tent, vegetables. But it is clearly a good thing which is near Peoria in central Illinois, and for America’s farmers. That’s why most of I have a grain production operation, consist- the major farm groups have endorsed it. And ing of corn and soybeans, and then I also I’m looking forward to discussing it with the work at Caterpillar, Inc., in Peoria. farmers today and with the people from the The President. Good for you. I’ve been ag radio networks. So maybe we ought to get there. right into your questions and go forward. Q. Yes well, I personally met you there I think Howard Hardecke is first. Is that when you were campaigning. right? The President. It’s a great company. Q. That is correct, Mr. President. Q. Yes it is, and I’m glad they’re as close The President. I remember when I was to my farm as they are. It works out real at your school. well. Q. You’re kidding. The President. It cuts the transportation cost of the equipment, too, doesn’t it? The President. [Inaudible]—it was a great Q. It sure does. So, Mr. President, I have night. a question on NAFTA for you. And that is, Q. Yes, it was. if NAFTA does not pass, what efforts do you The President. My second grade teacher see of Mexico forming treaties with other was there. I hadn’t seen her since she left countries who also compete for the same Arkansas. She was my second and third grade markets as our U.S. farmers, and what effect teacher. I really enjoyed that. might that have on our future farm economy [At this point, Mr. Hardecke asked if other and foreign competition for our U.S. prod- cattle-producing countries could import cat- ucts? tle duty-free through Mexico under NAFTA.] The President. I think it’ll make it a lot The President. That’s a good question. tougher on us. Keep in mind Mexico has And believe it or not, it’s a question that ap- been opening its economy, its purchases of plies not only to agriculture but to some of foreign products have been going up across our manufacturing. We have strict rules of the board. They want to give us some special origin that apply to our agriculture as you opportunities to export into the Mexican know already—— market in return for being able to attract Q. Yes. more investment to their country. So they The President. ——and there is nothing will have to pursue their strategy of getting in the NAFTA agreement which changes more investment and opening their markets that, so that the rules of origin that apply to get it somewhere else if we don’t take ad- to Australian beef coming here directly vantage of this. And, therefore, it could be would apply to them with equal force after an enormous setback for us. It would just NAFTA passes if they pass through Mexico. give our competitors a big leg up in one of In other words, there’s no loophole in the the fastest growing markets in the world. agreement to escape our rules of origin. So And of course, depending on whom they you’ll be all right with that. reached out to, it could really hurt the farm- Q. Okay, appreciate it. ers. If the European Community, for exam-

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ple, decided that they would try to replace of shutting it down. And I think it would be the United States in NAFTA, it could really a terrible mistake to turn away from it. foreclose a lot of farm markets. You know Q. Yeah, I agree, and rest assured that I all the troubles we’ve been through just try- will do all I can to help you get this passed. ing to get a new GATT agreement. I’m very, I would hate to think that our U.S. Congress very concerned about it. would pass up a chance at free trade. I would also point out to all the farmers The President. Also good for Caterpillar, who are listening that we believe if we do you know. Caterpillar’s one of the greatest NAFTA, and Mexico as the example will lead exporting companies in the whole United us to the same opportunities in other Latin States. American countries with big possibilities for Q. Yeah, I realize that. agricultural exports of all kinds. So I think The President. One of the few companies it’s a big plus if we do it, but frankly I think that’s been able to really triumph in the Japa- we have to face the fact that Mexico has got nese market. And the more per capita in- to have a plan B. And if we turn out to be come goes up in Mexico, the better that com- unreliable, if we can’t see through this trade pany will do, too. I appreciate that. Thank agreement, they will be forced to turn else- you very much. where to try to get capital and in return for Q. Thank you. that will almost certainly be willing to give Secretary Espy. Mr. President, could I the same kind of extra access to their market just jump right in one second just to agree that the United States now has just for the with you. asking if we’ll go ahead and adopt this agree- The President. Sure. ment. [Secretary Espy stated that Mexico is inter- Q. Well, I agree with you if they do seek ested in expanding the trade relationship treaties with other countries and we fail to with the United States but would quickly look ratify NAFTA, it will put us at a big disadvan- elsewhere should NAFTA fail and institute tage. And so you feel that Mexico is aggres- old tariff barriers as well.] sively seeking agreements whether it’s with The President. Is Bill Wheeler on the us or whether it’s with our competitors. phone? The President. Right now they’ve aggres- Q. Hello, Mr. President. Hello, Secretary sively sought it with us. But they’ve made Espy. it clear, and they’ve been very much willing The President. You calling us from Mon- to let us put some things in this trade agree- tana? ment, I might add, that have never been in Q. Yes sir, from Missoula, Montana. That’s any other trade agreement. I mean, they’ve the western part of the State. agreed with us to invest more money in The President. I’ve been there. I know cleaning up the environment and to subject it well. their own environmental code to the trade Q. Well, we hope that you see fit to come controls of this agreement. They’ve agreed again. We would extend the invitation cer- to do the same thing with their labor code. tainly. No other country’s ever done that in a trade The President. Thank you agreement. So they very much want to deal [Mr. Wheeler described the regional impact with the United States. Mexican people like on grain producers of Canadian grains cross- American products of all kinds. They are now ing the border under the Canada-United the second biggest per capita purchasers of States Free Trade Agreement and asked if American products, even though their in- NAFTA would rectify this situation.] comes aren’t very high. We sell over $40 bil- The President. Well, let me first of all lion worth of stuff down there every year. say that the agreement itself won’t rectify it, Seventy cents of every dollar the Mexicans but it will make it somewhat better, and by spend on foreign products are spent on opening other markets it’ll make a big dif- American products. And we have a chance ference. Let me make three or four com- to dramatically increase that or run the risk ments. First of all, for all the others that are

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listening, there’s been a special problem with different provisions are phased in over sev- a lot of our farmers in the northern part— eral years. [inaudible]—especially the wheat farmers, Mike, were you going to say something? because of exports from Canada and because [Secretary Espy acknowledged several weak the support of the prices in Canada comes primarily in transportation supports, some- points in the Canada-United States Free thing that were not covered. Those supports Trade Agreement and indicated that NAFTA were not covered when the United States ne- did not have these weak points.] gotiated its agreement with Canada several The President. But to go back to your years ago. question, if we can pass it now, it will go Now, under this agreement, there will be into effect starting the first of 1994, at the certain provisions which should help to ad- beginning of the next year. But there are dress the problem a little bit, such as end some provisions that are phased in. We will use certificates for Canadian imports that will get the lion’s share of the benefits from the help improve it. [Inaudible]—no, in an at- tariff reductions almost immediately, and tempt to offset the impact of the Canadian we’ll see a big increase in American exports imports, I approved export enhancement in 1994 if it goes in. But there are some supports for American wheat to Mexico re- things—for example, some of our markets cently. phase out their protection over a period of Thirdly, I’ve asked the Secretary of Agri- 7 or 8 years. culture, now that there’s been a Canadian Q. Thank you, Mr. President. election and there’s a new Canadian Agri- The President. Thanks. culture Minister ready to take office, to go Now, Murray Corriher? Is that right? to Canada and to sit down and meet with Q. China Grove, North Carolina. him about this issue, because it is not covered The President. Where is that? by the agreement, to see what we can do [Mr. Corriher briefly described several eco- to go forward. nomic conditions working against the farmer The last thing I’d like to say is, I think and asked if NAFTA will increase prices that the prices are going to go up here in enough to allow farmers to stay in business.] America if we adopt the NAFTA agreement, The President. The answer to that is, it because the primary thing NAFTA does is to give us access to sell more of our wheat should. Having lived on a farm and having and other grain crops to Mexico so that we’ll been a Governor of a farm State for many have access to that market, and that will help years, I’ve learned never to say that some- to not only provide more sales but, as you thing will increase farm prices. But the an- know, increase the price. swer is that it should for this reason: There’s So I think it will be better, but it does no question that American exports will in- not specifically address the provision you crease in the aggregate if NAFTA passes, and don’t like from the Canadian agreement that that Mexico is our fastest growing farm ex- was made several years ago. We’re going to port market. Normally, when there’s an in- try to do that in these negotiations the Sec- creased demand for products abroad, that retary of Agriculture is going to undertake. has an impact in increasing prices at home. And I think we sent a signal to the Canadians That is, unless there is something that hap- that we’re concerned about it when we use pens here at home that dramatically reduces the export enhancement program to try to domestic consumption, increasing demand sell some of our wheat to Mexico to offset abroad will increase the prices, because the what had happened to the farmers. aggregate supply and demand relationship Q. Well, Mr. President, if Congress ap- will change. So it should happen. proves NAFTA, when will NAFTA go into Secondly, farmers should have their prices effect, and will all parties involved sign simul- rise because they’ll recover some of the mon- taneously? ies that now go to tariffs in their trade. And The President. The answer is, it’ll go into we know that that will have some positive effect everywhere at the same time. But the impact.

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So for those reasons, I certainly would be pean countries who want to do the same real surprised if there was not an increase thing. The truth is that we’ve had so many in the price and an increase in farm profits. hard economic years that nearly everybody You know, most Americans don’t know this, thinks we’re in a sort of a win-lose situation, but when the cost of production goes up 5 that there’s no such thing as a win-win trade times as fast as the price of the product, the agreement. But no wealthy country, whether only way the farmers or any farmers are still it’s the United States or the European coun- in business in America is that we have the tries or Japan and Asia, can grow and in- most productive farmers in the world. But crease incomes unless you increase the vol- there is a limit to how much you can do, ume of world trade. That’s the only way we and one of the things I like about NAFTA can do it today. is, by giving the tariff relief and by increasing So we need the GATT agreement. It will the total volume of agricultural sales, we help us in the short run, in terms of jobs, should be able to have a positive impact on even more than NAFTA because it involves the price. so many more people. Over the long run, Q. I certainly hope so. NAFTA’s going to help us because it will The President. I do, too. I wouldn’t be bring in all of Latin America. But if we don’t for this if I didn’t think it was going to help adopt NAFTA in November, it’s going to be you, and I think it will. hard to get the GATT done in December. Q. I wouldn’t be for it, either, if I didn’t And I can’t promise that every country is think it would help. going to agree in December, regardless. But The President. Thank you, Murray. we will have a much, much better chance Q. Thank you. to pass that GATT deal if Congress will adopt The President. I think we’re supposed to NAFTA. And that’s a huge thing for Ameri- turn to the broadcasters now, and I think ca’s jobs and incomes. we’re staying in North Carolina. Q. Mr. President, it looks like it would be Bill Ray? really tough on Mickey Kantor if he has to Q. Yes, Mr. President. go back to Brussels without a NAFTA deal. The President. You’re from Elizabeth The President. It will be tough on him. City, North Carolina? Right after the NAFTA vote, I’m going out Q. That’s true. We sure are. The question to Washington State to meet with the leaders that I had for you, Mr. President, this after- of many of the Pacific countries, trying to noon is, how do you think NAFTA will affect convince them to buy more of our products U.S. positions of negotiations at the GATT? and trying to work out a new trade relation- What happens if this thing doesn’t pass? ship there. And again, if NAFTA passes, I’ll The President. It weakens our ability to have a lot of leverage in dealing with that. get a GATT agreement by the end of the If it doesn’t pass, it will make it more difficult year because—well, let me back up and say for me to argue that the United States is try- I think most farmers know we’re worked real ing to lead a big, broad-based coalition of hard to open up more European markets and trading nations. And after all that we’ve been other ag markets. As I said earlier, we’re through in the 1980’s with our industries working hard to make some progress in the changing and restructuring, we now in agri- Asian markets, in Japan, especially, with culture and in industry are the most produc- some of our products. The GATT agreement tive country in the world. We can sell any- is critical to that. If we beat NAFTA, then where. We can do well even in the countries other countries who are reluctant to support with wages much lower than ours if we just GATT will say, ‘‘Well, look at America. have access to the markets. They’re becoming more protectionist. Why So this GATT thing is a big deal. And if shouldn’t we?’’ On the other hand, if we pass we pass NAFTA, I’ll have a lot better chance NAFTA, it will dramatically increase our of bringing home that bacon along with Am- credibility in the GATT negotiations. And it bassador Kantor. will reinforce our commitment and, I think, The next person is, I think, Max Armstrong give a lot of courage to people in the Euro- in Chicago.

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Q. Hi, Mr. President. The President. And you’re from Billings, The President. How you doing? Montana? [Mr. Armstrong asked if Mexican producers Q. Sure am. I’m a long way from Bill would be held to the same standard as Amer- Wheeler, but we’re in the same State. ican producers in areas such as pesticides The President. You sure are. I’ve been and food safety requirements.] to Billings, too. It’s the third biggest State, The President. Yes. Absolutely. And I isn’t it? might say a related thing, since you’re calling [Mr. Brown asked if the President planned me from Chicago and we’ve got a lot of team- to act on the issue of Canadian grain im- sters in the upper Middle West and a lot of ports.] trucking enterprises: If a Mexican truck driv- The President. Let me tell you what I er under this agreement stays with a load of think I should do first. And let me remind produce, agricultural produce, or an indus- you, when I came into office, I raised this trial product or anything else, crossing from issue. I acknowledged it. Our Trade Rep- Mexico into the United States, then that resentative embraced it. To send a signal to truck driver must meet all the same stand- the Canadians that we were serious about ards that an American driver would have to this, we used the export enhancement pro- meet on an American highway. gram to give our own wheat an advantage Our standards control, whether it’s on the down in Mexico. We also did it with barley. safety of food or on the safety on our high- So I know this is a problem, and I’ve tried ways. And that’s very important. That’s one to send a clear signal to the Canadians that of the things that we worked hard—and the we intend to see it addressed. flip side is true, too. We have to comply with If you’ve been following this in the last their standards when operating in their coun- few days, you know they’ve got some issues try or when selling food into their country. that they want to discuss with us, also, that And one of the biggest problems we had, one don’t have anything to do with the NAFTA of the reasons that I insisted on these side agreement, but two-way trade agreement be- agreements before I would agree to present tween the United States and Canada. So I this trade agreement to Congress is that Mex- have asked the Secretary of Agriculture to ico, historically, has had some good laws on go up there, and before we take any further the books that weren’t vigorously enforced. action, at least sit down face to face with the And so what we wanted to make sure of was new government, hear them out, and have that, not only would our laws be observed them hear us out. on food coming into our country but that The reason I want to do that is because they would observe their own laws, just as we do have, still, a significant trade surplus we have to observe ours. in agriculture with Canada through bread, So I think that, overall, the quality of all pasta, and other processed foods, including of these operations will go up if we honor products that contain American wheat. I’ve that. always followed the policy that before I put Q. So there should be no concern among another person I’m dealing with in a position U.S. consumers about quality? of retaliating, at least they have to know The President. Absolutely not. No. We where we’re coming from and why. So I want are not going to permit food to be sold here the Secretary of Agriculture to go up there which does not meet the standards that and sit down and try to work through this. American food has to meet. But there is no question that when the last And, by the way, we import other food agreement was made several years ago with from a lot of other countries now, and it’s Canada, we did not reach to the subsidies the same thing there. We didn’t change that that relate to their transportation and to the at all, and we wouldn’t think of it. unique way in which the Canadian Wheat Q. Thank you, Mr. President. Board operates, which every wheat farmer The President. Is Taylor Brown next? in America now understands and which puts Q. Yes, Mr. President, thank you. our folks in a difficult position.

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I will say again, on the NAFTA agreement, coming down and because we’ve got access whatever you think about that, this is a net to the market and we can get the grain there advantage to an American wheat farmer be- in a hurry and efficiently. But I also want cause it opens more products, more markets to emphasize there’s going to be a big in- to American wheat. And so it’ll certainly help, crease in meat exports, too. and it’ll help to get the price up. [Secretary Espy added that the increase in Mike, do you want to say anything else exports to Mexico will lead to the creation about what you’re going to do? of jobs in the United States.] [Secretary Espy stated that he would con- The President. Is Rodney Peeples— tinue to work to find solutions to these prob- Roddy Peeples? lems.] Q. That’s correct, Mr. President. The President. Is George Lawson on the The President. San Angelo, Texas? phone? Q. Yes, Mr. President. [Mr. Peeples expressed his concern that the The President. Are you calling from President has turned over the NAFTA debate Wichita? with Ross Perot to the Vice President.] Q. Yes, sir. Can you hear me okay? The President. I thought I elevated the The President. I can hear you fine. debate by allowing the Vice President to de- Q. Mrs. Clinton and Vice President Gore bate with him. I don’t consider Ross—first were in Wichita during the campaign. I hope of all, in the Congress Ross Perot is not the you’ll get a chance to visit our all-American primary problem we’ve got. The primary city at some point. problem we’ve got in the Congress is the The President. I’d like to. I was there a united, intense, and sometimes vociferous couple of years ago, and I really enjoyed it. endorsement—efforts of the labor move- It’s a beautiful town. ment to beat this and to convince Repub- Q. Can you explain for us how NAFTA licans that they basically like, they’ll get them will be able to add jobs to the U.S. agri- opponents, and Democrats, if they like, culture sector? they’ll never give them money again. So The President. Yes, and let me say since that’s the big problem we’ve got. you’re in Wichita, I might just mention we Mr. Perot’s arguments have been largely talked a lot about wheat and grains and how discredited when he’s been questioned on the markets will grow there as the tariffs go them and when the evidence has been exam- down. But I also think, given where you are ined. But it was the Vice President’s idea all and the people that listen in mid-America along to challenge him to a debate. So I de- AgNet, I ought to emphasize that Mexico is bated him three times last year, and the more also one of the fastest growing markets for we got to talk about the issues, the better American wheat—I mean American meat, it got. So I think the Vice President will do especially processed meat products. And all just fine. I’ve got a lot of confidence in him. these exports will increase with NAFTA be- Q. And the follow-up question to that one, cause the tariff on beef will be phased out sir—and this one’s probably a minor point to zero. except for those who are affected by it—wa- Mexico already accounts for about a quar- termelon producers in Texas. Can you take ter of U.S. pork exports, and as the tariffs go down, incomes go up, we’ll expand those a watermelon question? exports to Mexico. Poultry exports have in- The President. Yes. You know I was born creased from $16 million in 1987 to over in a town that grows big watermelons, so I $153 million in 1992, and that demand is just can do that. growing like wildfire. And interestingly Q. [Inaudible]—and under the yoke of a enough, it’s a nice compliment to the Amer- lot of labor and wage and environmental reg- ican consumption habits, because of the pref- ulations that Mexican producers do not have. erence for different kinds of meat. So, I think The President. Yes. you’re going to see obviously more grains, Q. The question is, is there any chance just pure and simple, because the tariffs are that the phaseout period for the present 20

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percent tariff on imported watermelons about what a watermelon is, but it’s included could be extended from the proposed 10 in the agreement. years to 15 years, since the phaseout on the Secretary Espy. Yeah, Mr. President, as tariffs on some of the other crops I’m told you said, we are conscious of impact on com- are going to be that long? modities across the board, and we’ve made The President. I don’t think so. We think improvements when it comes to sugar and it’s enough for our folks to be okay under citrus, but also when it comes to fruits and it. Keep in mind, one of the things that’s vegetables. There will be a yearly review of going to happen—and I want to emphasize impact on fruits and vegetables, and if we this very strongly because—and this relates think that there is deleterious and a huge to another question that was raised earlier— negative impact on American vegetable in- one of the things that’s plainly going to hap- dustry then these agreements allow for con- pen in this trade with agriculture, even sideration of a snapback. though the agreement streamlines customs Q. Thank you very much, Mr. President and inspection procedures, is that we’re and Secretary Espy. going to have a very vigilant oversight of safe- The President. Thank you. I want to ty standards and quality. And I believe what thank all the farmers and all the broadcasters you’re going to see, when you’ve got a 10- for their questions today and for listening. year phaseout period with Mexican incomes And for those of you who support this agree- rising more rapidly across the board because ment, I want to tell you I’m very grateful. of this trade, is that you are not going to see I think it’s a very, very important part of our the kind of economic disadvantage at the end attempt to open America to the rest of the of this phaseout period to a lot of the agricul- world, to take advantage of the high produc- tural products that some fear now because tivity of our farmers and our manufacturing the cost of production in Mexico, in terms workers, our service industries, and to build of sheer labor, is lower. I mean, I really be- bridges to the rest of Latin America and to lieve that we’re going to do a lot better on get this GATT agreement done. And I know some of these things than we think. Now we that every active farmer in this country un- have in the agreement—I want to emphasize derstands what it could mean to us if we can this—there is a provision in the agreement pass this GATT agreement by the end of the that allows us to slow anything down if there year. I believe that passing NAFTA is a big is a so-called surge, that is, if there is a totally first step to getting that done. It will plainly unforeseeable development that threatens to put America on the side of expanded trade take out some sector of our economy. and give us some leverage as we go down By the way, the Mexicans have the same the road. thing if we do that to them, if there’s some So I hope you’ll do whatever you can to totally unpredictable or unforeseen economi- tell your Members of Congress, without re- cally adverse development here in the term gard to party, that you’re for this, that this of—in the businesses—the surge—that there is good for America. And meanwhile the Sec- is provision in this agreement to slow that retary of Agriculture and I will keep working down and take another look at it. So there on the problems that all of you outlined is sort of a safety hatch here. And I think today. We won’t forget them. We’ve taken that, plus the fact that we’re going to be quite the steps that we thought we could to date. vigilant in making sure that the safety stand- And the Secretary is going up to Canada ards are going to be observed for the produc- soon. tion and the delivery of our food, will provide Mike, would you like to say anything be- the protection that we need. fore we get off the phone? The Secretary of Agriculture just passed Secretary Espy. No, sir, I think you’ve me a note and reminded me, too, that just said it all. Thank you. last—we are this week, we got an agreement The President. Thank you for your hard from the Mexicans to do a yearly review of work. Thanks, appreciate it, fellas. the impact of this trade agreement on all [At this point, the teleconference ended, and vegetables. So there may be an argument the President answered reporters’ questions.]

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Interest Rates The President. No, what Ross Perot Q. Mr. President, are you concerned about wants, as always, is a show, not a debate. I interest rates creeping up? mean, he basically wants Al Gore to show The President. No. I mean, what’s hap- up at a rally that he’s paid for with a crowd pened is, the economy’s getting much full of people that don’t like NAFTA in the healthier. And you’ve had huge increases in first place so they can shout at Al Gore, and home sales. We’ve had big increases in other in the hope that the shouting will obscure economic activity. And when that happens, the arguments and the evidence and the when the economy really begins to show facts. And that’s not a debate or a discussion. signs of recovery, it’s hard to keep interest What we suggested, and what Al did—it was rates at a 25- or 30-year low. all his idea, was that he call Larry King— Because there is no inflation apparent in Larry King host an honest and quiet and this economy, I don’t expect a big increase straightforward discussion that the American in the rates. And we’re going to watch it very people could watch in their living rooms, one closely obviously. But we’ve had an awfully that would shed light and not heat. And I good run with low interest rates, and a lot could understand why that’s not Mr. Perot’s of people have taken advantage of them. preferred format. I mean, he’d rather have From the time we announced the intention a rally where he’s paid for it, has organized to have a serious effort to reduce the deficit, all these people to come, they’re all against until I introduced my economic plan, until it anyway, and they shout at Al Gore. I don’t it passed, the interest rates dropped dramati- blame him, but no sensible American would cally. And they’ve stayed down. expect that to substitute for a debate. I mean, I was on a plane the other day coming back I think everybody can pretty well figure from one of my NAFTA meetings, and two out—— of the people riding with me told me they’ve Q. Do you think he’s trying to wimp out? refinanced their homes this year. And one The President. Win what? was saving just under $300 a month, the Q. Wimp out of a head-on-head debate? other was saving about $500 a month on the The President. You know, you all get into refinancing. These things have happened to that name-calling character. I’m not going to millions of people around the country, and do that. I think he’s trying to negotiate the there’s still good opportunities there for best possible position for himself. But it home mortgages, both for new ones and for wouldn’t be a credible debate for us to show refinancing. up at his rally. But if the economy really picks up, there will have to be some movement in the inter- NOTE: The teleconference began at 1:23 p.m. in est rates. I don’t think there will be a lot the Oval Office at the White House. because—as long as we can keep inflation down. And I wouldn’t be surprised, by the way, to see, as one of the experts reported in the press today, I wouldn’t be surprised Letter to Congressional Leaders to see them drop again. I was kind of con- Reporting on the Cyprus Conflict cerned when we had this big surge in housing November 5, 1993 and big surge in new investments that there might be a little pickup in it. But I’m not alarmed by it right now. Dear Mr. Speaker: (Dear Mr. Chairman:) In accordance with Public Law 95–384 (22 NAFTA Debate U.S.C. 2373(c)), I am submitting to you this Q. Mr. President, Ross Perot says he report on progress toward a negotiated set- doesn’t like the idea of the debate forum that tlement of the Cyprus question. The previous the Vice President suggested. He says the report covered progress from the remainder Vice President ought to bring you and some of February, through July 15, 1993. The cur- of your spin doctors to his event. Is there rent report covers the remainder of July any chance you’d agree to that? through September 15, 1993.

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Shortly after the visit of U.S. Special Cy- reminded the Foreign Minister that the prus Coordinator Maresca, Special U.N. United States attaches great importance to Representative for Cyprus Joe Clark visited a resolution of the situation in Cyprus. While Ankara July 21–22, where he met with Turk- noting that the Turkish Cypriots are in the ish Prime Minister Ciller, Deputy Prime midst of their election process, he stressed Minister Inonu, Foreign Minister Cetin, and that it is of the utmost importance to main- Ministry of Foreign Affairs Cyprus Expert tain the momentum on the CBMs. Mr. Ambassador Ulucevik. Like Maresca, Clark Oxman said that the Turkish Cypriots now stressed the need for public Turkish support face the choice of either moving toward the for the confidence-building measures CBMs package or being further isolated. Mr. (CBMs) and was reassured by the Turkish Oxman also used this opportunity to urge the side of its commitment to support the pack- Turkish Foreign Minister to use Turkey’s age. considerable influence with the Turkish Cyp- Also on July 22 Mr. Clark met with U.S. riots to move the process along—specifically, Ambassador to Turkey Richard Barkley. Am- by publicly announcing Turkish support for bassador Barkley welcomed Mr. Clark’s visit the CBMs package, by encouraging early to Ankara, and noted the continuing high- elections, and by urging the Turkish Cypriots level U.S. support for his mission. Both Mr. to communicate promptly with the United Clark and Ambassador Barkley welcomed the Nations with regard to outstanding questions fact that there is now a more open and in- on the CBMs package. formed debate within Turkey about the Cy- Turkish Ministry of Foreign Affairs Under prus issue. Secretary Ulucevik travelled to northern Cy- On July 26 in Nicosia, the U.N. Secretary prus August 24–26. While there he met with General’s Deputy Special Representative for Turkish Cypriot leaders and privately relayed Cyprus, Mr. Gustave Feissel, met with Presi- Turkey’s support for the CBMs. dent Clerides of Cyprus. This was followed Mr. Clark visited Washington on August by a meeting on July 27, also in Nicosia, be- 26 and met at the National Security Council tween Mr. Feissel and Turkish Cypriot lead- with National Security Advisor Anthony er Mr. Rauf Denktash. At both meetings, Mr. Lake, and at the State Department with Feissel stressed the importance of over- Under Secretary Peter Tarnoff, European coming the lack of information on the CBMs and Canadian Affairs Acting Assistant Sec- among the Turkish Cypriots. retary Alexander Vershbow, and U.S. Special U.S. Ambassador to Cyprus, Robert Lamb, Cyprus Coordinator Ambassador Maresca. In met with Mr. Denktash on July 30 and reiter- all three meetings, Mr. Clark expressed ap- ated the U.S. position that the CBMs offer preciation for U.S. initiatives in Cyprus and the one feasible route toward cooperation. urged continued U.S. support to maintain Mr. Denktash stated that he was preparing progress on the CBMs. Mr. Clark empha- a list of technical questions on the CBMs, sized that the status quo cannot continue and but saw no prospect of movement on the was costly to all involved. He also requested U.N. process, including the CBMs, until that the United States discuss with the Turk- after the Turkish-Cypriot elections sched- ish government the need for the Turks to uled for November 28. reiterate their support for the U.N. ‘‘set of Although it was expected that Mr. ideas.’’ Under Secretary Tarnoff reiterated Denktash would present his technical ques- the United States unwavering support for the tions at his meetings with Mr. Feissel on Au- CBMs and for Mr. Clark’s role in promoting gust 6 and 7, he failed to do so. At those them. Ambassador Maresca agreed with Mr. meetings, he told Mr. Feissel that any move- Clark that we had to press for the promised ment would have to wait for the scheduled list of specific Turkish-Cypriot questions elections to take place in the north. about the CBMs package. On Friday August 13, Assistant Secretary On August 26, Ambassador Maresca met of State for European and Canadian Affairs with Mr. Sahinbas, Deputy Chief of Mission Stephen Oxman met with Turkish Foreign at the Turkish Embassy in Washington. Am- Minister Cetin in Washington. Mr. Oxman bassador Maresca told Mr. Sahinbas that it

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was important that all interested parties work Despite the lack of progress during the pe- to maintain the viability of the CBMs pack- riod this report covers, we are still working age past the election period in northern Cy- for the approval of the CBMs. As I stated prus. Ambassador Maresca and Mr. Sahinbas in my August 12 letter to Prime Minister agreed that progress would be difficult until Ciller, the United States seeks Turkey’s sup- after the elections of November 28. port in helping to achieve a settlement. The The final meeting during the period cov- Turkish-Cypriot community must recognize ered by this report was Ambassador that if it rejects this proposal, which is viewed Maresca’s meeting with Under Secretary by the rest of the world as fair and construc- Ulucevik in Ankara on September 2. Ambas- tive, it risks even greater isolation than it sador Ulucevik spoke highly of the work of presently faces. I hope that this can be avoid- Mr. Clark and looked forward to presenting ed. In the meantime, I will continue to lend Turkish views to Mr. Clark in late Septem- full support to the U.N. efforts. ber. Ambassador Maresca stressed the need I will continue to use all my energies in to make positive progress on the CBMs pack- assisting in finding a solution to the Cyprus age and supported Mr. Clark’s efforts to de- problem and look forward to your support velop understanding and sympathy for the in this effort. package in the Turkish-Cypriot community. Sincerely, Finally on September 14, the Secretary General issued his ‘‘Report on his Mission William J. Clinton of Good Offices in Cyprus.’’ The Secretary General noted that the President of Cyprus, NOTE: Identical letters were sent to Thomas S. Mr. Clerides, had reaffirmed his commu- Foley, Speaker of the House of Representatives, nity’s willingness to move forward with the and Claiborne Pell, Chairman of the Senate Com- provisions in the CBMs package proposed for mittee on Foreign Relations. Varosha and for Nicosia International Air- port. The Secretary General also noted that the Turkish Cypriot leader, Mr. Denktash, Message to the Congress continued his criticism of the package. The Transmitting the Republic of Korea- report stated that inaccurate and incomplete United States Fishery Agreement information had been presented on the im- pact of the Varosha/Airport provisions, thus November 5, 1993 causing confusion for the Turkish Cypriots. In addition, it said that the Turkish Cypriots To the Congress of the United States: looked to Turkey for guidance, but the Turk- In accordance with the Magnuson Fishery ish government had not yet sufficiently con- Conservation and Management Act of 1976 veyed its support for the package to the Turk- (Public Law 94–256; 16 U.S.C. 1801 et seq.), ish Cypriots. In the report, the Secretary I transmit herewith an Agreement Between General also proposed to send a team of sen- the Government of the United States of ior experts to Cyprus in early October to ad- America and the Government of the Repub- dress questions, which have been raised con- lic of Korea Extending the Agreement of July cerning the effects of the CBMs package. 26, 1982, Concerning Fisheries off the The Secretary General’s report ended on Coasts of the United States, as extended and a cautionary note. He stated that it is not amended. The agreement, which was ef- possible to continue the current effort indefi- fected by an exchange of notes at Washington nitely. He stressed that it is essential that he on June 11, 1993, and October 13, 1993, ex- receive the full cooperation and support of tends the 1982 agreement to December 31, the Turkish Cypriots. If the current efforts 1995. The exchange of notes together with do not succeed soon, he continued, he would the 1982 agreement constitute a governing have to invite the members of the Security international fishery agreement within the Council to consider alternate ways to pro- requirements of section 201(c) of the Act. mote the effective implementation of the In light of the importance of our fisheries United Nations many resolutions on Cyprus. relationship with the Republic of Korea, I

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urge that the Congress give favorable consid- the meeting, the President traveled to Lex- eration to this agreement at an early date. ington, KY, where he toured the laser printer William J. Clinton manufacturing facilities at Lexmark Inter- national, Inc., and then returned to Washing- The White House, ton, DC, in the early evening. November 5, 1993. November 5 In the afternoon, the President met with Gen. Colin L. Powell, USA, Ret. Digest of Other The President announced his intention to White House Announcements nominate four individuals for administration positions. They are: —Greg Farmer, Under Secretary of Com- The following list includes the President’s public merce for Travel and Tourism; schedule and other items of general interest an- —Henry F. Graff, member, Assassination nounced by the Office of the Press Secretary and not included elsewhere in this issue. Records Review Board; —Mary Lucille Jordan, member, Federal Mine Safety and Health Review Com- October 30 mission; and In the evening, the President and Hillary —T.R. Lakshmanan, Director, Bureau of Clinton attended the Presidential gala at Transportation Statistics, Department of Ford’s Theatre. Transportation. The White House announced the Presi- dent has invited President Fidel V. Ramos of the Philippines to the White House on November 22. November 1 Nominations The White House announced the Presi- Submitted to the Senate dent sent to the Congress a package of $2 billion in fiscal year 1994 spending cuts and The following list does not include promotions of reform measures. members of the Uniformed Services, nominations November 2 to the Service Academies, or nominations of For- The White House announced the Presi- eign Service officers. dent has invited Prime Minister Yitzhak Rabin of Israel to the White House on No- Submitted November 2 vember 12. The White House announced the Presi- James J. Molinari, dent awarded the Presidential Medal of of California, to be U.S. marshall for the Freedom to entertainer and humanitarian Northern District of California for the term Martha Raye. of 4 years, vice Glen E. Robinson. November 3 In the late morning, the President and Hil- Joe Russell Mullins, lary Clinton traveled to Ambridge, PA, where of Kentucky, to be U.S. marshall for the East- they presented a copy of ‘‘Health Security: ern District of Kentucky for the term of 4 The President’s Report to the American Peo- years, vice Sherman L. Hansford. ple’’ to Laughlin Memorial Library, and re- John Patrick McCaffrey, turned to Washington, DC, in the early of New York, to be U.S. marshall for the evening. The White House announced the Presi- Western District of New York for the term dent has signed the United States instrument of 4 years, vice Daniel B. Wright. of ratification of the Treaty on Open Skies. Phylliss Jeanette Henry, November 4 of Iowa, to be U.S. marshall for the Southern In the morning, the President met with District of Iowa for the term of 4 years, vice Members of Congress on NAFTA. Following Warren D. Stump.

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Charles M. Adkins, Released November 1 of West Virginia, to be U.S. marshall for the Transcript of a press briefing by Press Sec- Southern District of West Virginia for the retary Dee Dee Myers term of 4 years, vice James P. Hickman. Announcement of nomination for three U.S. Submitted November 5 attorneys Statement by Press Secretary Dee Dee Edmund T. DeJarnette, Jr., Myers on transmittal to the Congress of $2 of Virginia, a career member of the Senior billion in spending cuts and reform measures Foreign Service, class of Minister-Counselor, for fiscal year 1994 to be Ambassador Extraordinary and Pleni- potentiary of the United States of America Released November 2 to the Republic of Angola. Statement by Press Secretary Dee Dee Don Carlos Nickerson, Myers releasing statements by former Presi- of Iowa, to be U.S. attorney for the Southern dents George Bush, Ronald Reagan, and District of Iowa for the term of 4 years, vice Gerald Ford endorsing the North American Gene W. Shepard, resigned. Free Trade Agreement Announcement of the President’s awarding Stephen John Rapp, of the Presidential Medal of Freedom to of Iowa, to be U.S. attorney for the Northern Martha Raye District of Iowa for the term of 4 years, vice Charles W. Larson, resigned. Released November 3 Statement by Press Secretary Dee Dee Donald Kenneth Stern, Myers on the administration’s intent to seek of Massachusetts, to be U.S. attorney for the an international legal prohibition of ocean District of Massachusetts for the term of 4 disposal of low-level radioactive waste years, vice Wayne A. Budd, resigned. Announcement of nomination for five U.S. G. Ronald Dashiell, marshalls of Washington, to be U.S. marshall for the Statement by Press Secretary Dee Dee Eastern District of Washington for the term Myers on the President’s signing of the in- of 4 years, vice Paul R. Nolan. strument of ratification of the Treaty on Nancy J. McGillivray-Shaffer, Open Skies of Massachusetts, to be U.S. marshall for the District of Massachusetts for the term of 4 Released November 4 years, vice Robert T. Guiney. Announcement of further details on the up- coming meeting of Organization of Asian Pa- Donald R. Moreland, cific Economic Cooperation (APEC) leaders of Florida, to be U.S. marshall for the Middle in Seattle, WA District of Florida for the term of 4 years, Released November 5 vice Richard L. Cox, resigned. Fact sheet on the Bipartisan Commission on Entitlement Reform Fact sheet on participants in the teleconfer- ence with the Midwest agricultural commu- Checklist nity on NAFTA of White House Press Releases Text of a letter from Jack Quinn, Chief of Staff to the Vice President, to broadcast jour- nalist Larry King regarding arrangements for The following list contains releases of the Office a debate on NAFTA between the Vice Presi- of the Press Secretary that are neither printed as dent and Ross Perot items nor covered by entries in the Digest of Other White House Announcements. Statement by Press Secretary Dee Dee Myers on release of unclassified and declas-

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sified documents relating to Salvadoran quent marketing years, and for other pur- human rights cases poses Announcement of nomination for three U.S. S.J. Res. 78 / Public Law 103–131 attorneys and three U.S. marshalls Designating the beach at 53 degrees 53′51′′N, 166 degrees 34′15′′W to 53 degrees 53′48′′N, 166 degrees 34′21′′W on Hog Is- land, which lies in the Northeast Bay of Un- Acts Approved alaska, Alaska as ‘‘Arkansas Beach’’ in com- by the President memoration of the 206th regiment of the Na- tional Guard, who served during the Japa- nese attack on Dutch Harbor, Unalaska on Approved November 1 June 3 and 4, 1942 Approved November 2 H.R. 3123 / Public Law 103–129 Rural Electrification Loan Restructuring Act H.R. 328 / Public Law 103–132 of 1993 To direct the Secretary of Agriculture to con- vey certain lands to the town of Taos, New S. 1548 / Public Law 103–130 Mexico To amend the National Wool Act of 1954 to reduce the subsidies that wool and mohair H.J. Res. 228 / Public Law 103–133 producers receive for the 1994 and 1995 To approve the extension of nondiscrim- marketing years and to eliminate the wool inatory treatment with respect to the prod- and mohair programs for the 1996 and subse- ucts of Romania

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