Weekly Compilation of Presidential Documents

Monday, May 31, 1993 Volume 29—Number 21 Pages 929–990

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Addresses and Remarks Appointments and Nominations—Continued Budget vote by House of Representatives— U.S. Holocaust Memorial Council, Chair and 955, 974 Vice Chair—930 ‘‘Drive American Quality’’ event—942 White House fellows—956 National Commission to Ensure a Strong Communications to Congress Competitive Airline Industry—938 New Hampshire Continuation of emergency with respect to Manchester—937 the Federal Republic of Yugoslavia (Serbia New Hampshire Technical College and Montenegro), messages—949, 950 commencement in Stratham—932 District of Columbia budget requests, Older Americans Month, proclamation signing message transmitting—941 ceremony—943 Renewal of most-favored-nation status for Pennsylvania, community in Philadelphia— China, letter and report—984 978 Communications to Federal Agencies Radio address—930 Small Business Administration microloan Renewal of most-favored-nation status for program—939 China, memorandum—982 Town meeting on ‘‘CBS This Morning’’—957 Executive Orders Veterans in VA medical centers, teleconference—975 Conditions for Renewal of Most-Favored- Nation Status for the People’s Republic of Announcements China—983 Implementation of Agreement With the See also Appointments and Nominations European Community on Government Presidential scholars—942 Procurement—948 Appointments and Nominations Interviews With the News Media Commerce Department, Under Secretary— See also Addresses and Remarks 954 Exchanges with reporters Interior Department, National Park Service, East Room—947 Director—930 Manchester, NH—937 National Railroad Passenger Corporation, National Air and Space Museum—943 Board of Directors—954 Old Family Dining Room—955, 956 State Department Oval Office—929, 941 Ambassadors—954, 975 South Lawn—977 Protocol Chief and Deputy Chief—974 State Dining Room—942

(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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Meetings With Foreign Leaders Statements by the President Cyprus, President Clerides—929 See also Appointments and Nominations Germany, President von Weizsa¨cker—941 Renewal of most-favored-nation status for China—981 Notices Statements Other Than Presidential Continuation of Emergency With Respect to Situation in Guatemala—954 the Federal Republic of Yugoslavia (Serbia Supplementary Materials and Montenegro)—949 Acts approved by the President—990 Proclamations Checklist of White House press releases—990 Digest of other White House Older Americans Month—946 announcements—989 Prayer for Peace, Memorial Day—988 Nominations submitted to the Senate—989

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Exchange With Reporters Prior to Q. Mr. President, Senator Bond has writ- Discussions With President Glafcos ten you a letter saying that there’s a pattern Clerides of Cyprus of firing experienced public servants and re- May 21, 1993 placing them with young political appointees. The President. I ask that you look at the Cyprus facts. Is he defending the practices? Are you Q. Mr. President, is the United States will- defending the practices? We now have a re- ing to be a guarantor for Cyprus? port on this. Do you think it’s fine to have The President. Well, we want to do what no-bid plane rides? At the press dinner there we can to promote a good agreement there, was a complaint about the costs of these and we’re going to be actively involved in plane rides to the press. The very first time working toward a peaceful settlement. The in the new regime we go to a competitive talks are just about to start again, and I don’t bidding, modern system, anything that you think I should say or do anything which would expect done in any sort of private com- would disrupt them. But I’m glad to have pany, and there’s a 25 percent savings. Look the President here. I really appreciate the at the facts, evaluate the facts, and draw your attitude he’s taken. And I think that we have own conclusions. the best chance we’ve had in quite a long Q. ——on this issue and the haircut issue? while to have a peaceful, successful conclu- The President. Not for me. That’s what sion to these talks. we’ve got a first amendment for. All I know is the taxpayers save money and the press White House Travel Office saves money. Q. Mr. President, do you think that you have at least the appearance of a problem [At this point, one group of reporters left the in firing seven people, five of them appar- room and another group entered.] ently without cause, and replacing them with a relative and a major campaign contributor? Cyprus The President. Well, I think, first of all, you ought to talk to my staff people who Q. Mr. President, do you see any room made those decisions. We reviewed the oper- for a direct U.S. involvement in the Cyprus ation of every part of the White House. issue? There was an audit, a review audit by Peat The President. The President is just about Marwick. It is my understanding that the de- to start another round of talks, and I don’t cision was made based on striving to end in- think I should prejudge the talks. But I have efficiency and mismanagement. And I be- assured him that the United States wants to lieve the very first chartered plane flight be active and constructive. And I think we coming out tomorrow under the new order have a reasonable chance to see a successful of things is going to save about 25 percent conclusion of these talks, perhaps the best over the old policy. And we’re going to save chance in a long time, not because of me the taxpayers money and save the press but because of where the parties are and the money, something I heard mentioned at the leadership that will be exercised. And the last press dinner. United States, if we can be helpful, we want So I think what they’re trying to do is right. to be. But I don’t think we should be specific. If you have any particular questions about I think we should let whatever happens come what they did, I would refer you to the peo- out of these talks and obviously be generated ple who made the decisions. from the parties themselves. 929

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Q. Is your administration prepared to pro- dating back to World War II, Roger Kennedy vide some type of guarantee, assurances, res- is more than up to the job of safeguarding olutions, Mr. President? these precious resources.’’ The President. Let’s see what comes out of the talks and what we’re asked to do. Again, I want to be supportive of the process. NOTE: A biography of the appointee was made And I think that if we’re supportive of the available by the Office of the Press Secretary. This process, then we’re more likely to get a good item was not received in time for publication in the appropriate issue. result. I don’t think I should prejudge it or anything we might be asked to do.

NOTE: The exchange began at 5:50 p.m. in the The President’s Radio Address Oval Office at the White House. A tape was not available for verification of the content of this ex- May 22, 1993 change. This item was not received in time for publication in the appropriate issue. Good morning. For the first time in more than a decade, Washington is changing, and we’ve begun to break the logjam that has Announcement of Chair and Vice kept our economy from growing. We’re mov- Chair of the United States Holocaust ing away from trickle-down special interests, Memorial Council anti-middle-class policies, toward fairness May 21, 1993 and opportunity for all Americans. Congress is moving our economic plan, The President today named Holocaust sur- which makes real record cuts in the deficit. vivor and business man Miles Lerman to be After a decade of neglect and decline, it also Chair of the United States Holocaust Memo- makes carefully targeted investments to cre- rial Council and political scientist Ruth Man- ate high-skill, high-wage jobs again and to del to be the Vice Chair of the Council. better educate and train our people to fill ‘‘I was deeply moved when I participated those jobs so that we can restore our econ- in the opening of the U.S. Holocaust Memo- omy now and leave a prosperous America for rial Museum last month,’’ said the President. our children. Our plan challenges the status ‘‘Miles Lerman and Ruth Mandel are quo, and this is always hard to do in Washing- charged with keeping the flame of memory ton, especially when there are tough choices alive. I have faith in their ability to do so.’’ involved. NOTE: Biographies of the persons named were For starters, we take on Government made available by the Office of the Press Sec- spending, beginning with a cut in the White retary. This item was not received in time for pub- House staff of 25 percent, a freeze in Federal lication in the appropriate issue. pay, a reduction of 150,000 in the size of the Federal work force, and cuts in more than Announcement of Director of the 200 specific spending programs, including huge entitlement programs affecting almost National Park Service every special interest group. These are tough May 21, 1993 decisions, but they’re the right thing to do The President announced the appoint- because they move America forward. ment of Roger Kennedy as the Director of The plan also raises taxes to bring the defi- the National Park Service. Kennedy is cur- cit down. Seventy-four percent of the new rently the Director of the Smithsonian Insti- revenue comes from people with incomes tution’s National Museum of American His- over $100,000, just 6 percent of the Amer- tory. ican people, who got most of the tax cuts ‘‘There are few tasks more serious than the in the 1980’s. The rest comes from the mid- stewardship of our national parks,’’ said the dle class in the form of an energy tax which President. ‘‘With a record of public service

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will help to clean up our environment. What energy tax. But it requires the wealthy to pay will it cost you? If your income is between their fair share and the lion’s share of the $30,000 and $100,000, the energy tax will load. cost you $1 a month next year, $7 a month When I presented the plan to Congress the year after, and between $14 and $17 a I said then that if the interest groups picked month, depending on how many kids you the plan apart the whole principle of shared have, in the years after that. All the money, contribution could be lost. Now, just days be- the cuts, and the taxes will go into a deficit fore the plan will be voted on by Congress, reduction trust fund. There will be no taxes the opponents and the special interests are without the cuts. trying to get their way. Some of my oppo- Is it worth it? You be the judge. Millions nents want to cut Social Security and tax of Americans have already refinanced their credits to working families with incomes of home mortgages and business loans. Lower under $30,000 just to get a tax cut for the interest rates on car loans and student loans rich. The big oil lobby is trying to wiggle out are also coming, because the interest rates of its contribution to deficit reduction and are down following our clear determination force senior citizens barely above the poverty to reduce the deficit. If you’re one of the line to get lower Social Security benefits and Americans who has already refinanced a senior citizens who are better off, who are home loan or a business loan, if you’re getting already being asked to pay taxes on more of lower car loans or student loans, the chances their income, to pay for a second time. are that this year you will save more than It’s simply wrong for a powerful interest you will pay in 4 years under the economic to try and opt out of this program by asking program in the energy tax. the elderly and the working poor to contrib- For example, if you have a $100,000 mort- ute more so they can contribute less. Making gage on your home at 10 percent, due to middle America pay more may be business lower interest rates we’re experiencing that as usual in Washington but to the rest of the mortgage can be refinanced at about 7.5 per- Nation it must be unjust, unfair, and unac- cent. What does that mean for you? It means ceptable. $175 a month or $2,100 a year that you save I regret that otherwise good and respon- in interest payments, $2,100 a year in interest sible legislators would even consider this pro- savings on home loans alone, just because the posal, but I will fight it. The principles of interest rates have gone down since we’ve fairness in reducing the deficit, the principle been working to bring the deficit down. of resisting special interests and having uni- All told, experts estimate that if we can form contributions from all, these must be maintain these lower rates, we can pump an- protected to make this plan work. other $100 billion into our economy. That And if we don’t pass the package, what means more jobs for Americans, $100 billion will happen? If we don’t continue to cut the more spent on our families, spurring invest- deficit, our new and carefully won credibility ment, raising incomes. It all creates jobs. will crumble as a nation and interest rates That’s a definition of a plan that will work. will start to rise again, squeezing out the in- When you put that with all the incentives vestments we need to make to grow new jobs. we’ve given to lower taxes for families with And if interest rates take off again, it will incomes under $30,000, increases in small further increase the deficit, ultimately con- business expensing provisions, investment in- suming not only ours but our children’s centives for bigger businesses, real incentives standard of living. for people who invest in new businesses, this We can’t let this happen. We can’t. We means more jobs. have to instead bring the deficit down, keep The plan is also fair because it asks con- the interest rates down, make available some tributions from everyone while asking the funds to invest in new technologies and in most from people who have the most and helping communities and companies and in- who have benefited the most from trickle- dividuals hurt by defense cuts, doing those down policies. It cuts Medicare costs and things to create jobs and make us competi- some retirement benefits. It does include the tive.

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That’s why I need you to raise your voices. dents, Greg Fuller, then asked me to come Ask Congress to turn down the special inter- back and speak at this graduation. Stand up, ests and to preserve this program that asks Greg. And then he wrote me a letter to con- fair contributions from everyone so that we firm his request. That itself was miracle can reduce the deficit and create more jobs enough. In 3 months and 2 weeks we had and provide benefits to everyone. received more mail at the White House than Together we can all win. In just a few had come in, in all of 1992. There may be months, working together, we’ve tackled another letter from Greg somewhere we tough problems with new ideas. And we’re haven’t found yet. [Laughter] But I’m de- stronger for it. Congress has passed laws lighted to be here. from family leave to motor voter, long stalled This is the first graduation ceremony I by gridlock, proposals from welfare reform to national service to pay for college edu- have addressed as President, and I am—[ap- cation to putting more police on our streets plause]. I don’t know, but it may be the first or on deck. But we have to get this economy time a President has ever addressed a grad- moving. uation of a technical college. But I will say The spirit of new hope I believe will pre- this: More colleges like yours should have vis- vail. Staying together we can make it work its from the President because people who until there is a permanent rebirth of hope work hard and study hard and who have to in every household across this great Nation. raise children and go to work while they go I need your help and so does America. to school and who are really on the cutting Thank you very much. edge, up and down, of this economy, you are the heart and soul of our present and our NOTE: The address was recorded at 1 p.m. on future. May 21 in the Oval Office at the White House for broadcast at 10:06 a.m. on May 22. The world in which you—[applause]— your families are clapping for you. The world in which you live, to be sure, has been full Remarks at the New Hampshire of bad news here in New Hampshire for the Technical College Commencement last few years, but it’s also a very exciting Ceremony in Stratham, New and challenging place. And it will be different Hampshire from the world in which I grew up in two May 22, 1993 very important ways. First of all, more than ever before, America will be captured by the Thank you very much, Madam President, reality of the global economy. More and members of the faculty and staff, distin- more of our jobs will depend on trade. And guished Members of Congress and other more and more of our future will depend platform guests, and ladies and gentlemen, on not only how well we are doing but how and most importantly, the members of this well our trading partners are doing. One of graduating class. To answer the president’s our problems today is that Europe and Ja- question, I came here to address this class pan’s economies are down, so it’s hard for because you were the people that I ran for ours to go up. More and more, our national President to serve. It was your America that security will depend not just on military I hope to make better. I’m proud to come back to the State that power but on our renewal of economic 15 months ago made me the ‘‘comeback kid’’ strength. More and more, we’ll have to find in this country. [Laughter] On February 7, ways to cooperate as well as to compete with 1992, when I came to this college, the people other countries. We’ll have to find ways to I met here asked me about things that matter preserve the global environment and still to mainstream Americans, about jobs and make it possible for the economies of our health care and getting the economy moving world to grow. That’s the first thing. again and whether the future for our young The second thing is something you already people would be better than the present. know, or you wouldn’t be here. We are mov- After I finished speaking, one of your stu- ing very rapidly in all forms of production

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and service to a knowledge-based economy health care task force presents the national in which what you earn depends on what you health care proposal in the next few weeks can learn, not only what you know today but to the Congress, if that proposal passes, the what you’re capable of learning tomorrow, Ron Macoses of this world will be able to and in which every graduate of high school keep working and raising their children in needs at least to go on to 2 years of further the future. education and training. You know that, or you I’ll never forget a young woman I met wouldn’t be here. named Emily Teabold, who was a senior in All of you have invested your money, your high school when I met her. Her father lost time, you energy to take personal responsibil- his job in New Hampshire, and he spent her ity for your own lives, developing your own entire senior year in North Carolina, because skills and in recognition of this new world that’s the closest place he could find a job. reality. Your investment in a way is an act I met a man here named David Springs, of faith. You know the world is knowledge- who was a month away from having his pen- based; you know you have to do this. Now sion vested when he was fired from his com- having done it, you have to have faith that pany because people who owned his com- there will be opportunities for you, that if pany sold it out in one of these leverage you have worked hard and played by the deals. And they bailed out with a golden rules, you will be rewarded. parachute to a happy life and left their em- As President I share that faith. I believe ployees on the rocks. we can make our system work. I believe we I remember some stories of courage, too. can see our country once again reflect the values with which all of us were raised. I I went to Clairmont and met the people who don’t think any of us can ever lose sight of were working in the American Brush Com- that. It’s appropriate that I’m at this gradua- pany, trying to help revive that community. tion, because New Hampshire taught me all And I tried to help them find some cus- these things once again. In the fall and winter tomers for their products. I remember going of 1991 and 1992, when I spent so much to Manchester and visiting a company called time here, I literally, as we say in my part Envirotote that made bags that we wound of the country, went to school with you. Two up buying all during the campaign and giving winters ago I came face to face with middle out with our little Clinton-Gore stickers on, class people who had lost their jobs and their all across the country. I saw people who were homes and their health care. I met people trying to make this country work again and whose business loans had been canceled, trying to make New Hampshire a beacon of even though they had never missed a pay- opportunity again. ment in their lives. I saw people who went Most of the people I saw, for all their down to the public assistance office and hurts, never lost their hopes. And I’m here began to draw welfare checks just to make today to thank you for not losing yours, for their home payments to keep from putting going through this program and believing in their kids in the street, middle class people it. Your president said something I want to who had had jobs and never thought they reiterate. For most of the 20th century would be unemployed. there’s been a big division in our minds about Every day when I get up in the White what kind of learning counts and what kind House and go to the Oval Office to work, of learning doesn’t count as much, the big I think about the people I met here and peo- division between what is vocational and what ple like them all over America whose quiet is academic, between what is practical and courage and determination inspires me to what is intellectual. In the last few years real- keep fighting to restore the middle class and ly smart people realize that that’s a bogus the fundamental strength and purpose of this distinction and that we have seen all over country. I’ll never forget people like Ron the world, and especially here in America, Macos, Jr., who couldn’t get a job with health the line drawn down between the vocational insurance because his little boy had open and the academic, between the practical and heart surgery. And when the First Lady’s the intellectual. All work requires knowledge,

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and it’s not so bad if it has a practical applica- children’s lifetime with high interest rates tion. That is what you have proved here. and a mortgaged future. You have a right to So here we are with you. You have done be treated fairly and to be given a chance your job. You have done anything that could to make it. You have a right to live in a coun- be asked of you. Many of you have done this try where everybody is given a chance to at great personal sacrifice. I wonder how make it, which is not prejudiced against the many of you have gotten up in the morning wealthy—we don’t like to be that way—but wondering about what you were going to do gives those who aren’t, a fair chance to earn for child care that day, wondering about their due. whether you should keep doing this given the That is what you have a right to. And that fact that it costs money and the unemploy- is what you do not have today. We are doing ment rate in the State is above the national our best in Washington to turn that around, average, wondering about all kinds of uncer- to get control of the deficit, to bring it down, tainties. You have done it. You have done to invest in those things that will create more your job. jobs, and to guarantee over the longrun that You have now a right to ask what is our we’ll have jobs and incomes and health care job. What can you expect of your country? that will justify the efforts you have made What can you expect of your Government? by going through this program. That is our What is our job? If you have been respon- responsibility. sible, what opportunities should you be able I’ve asked the United States Congress to to claim? Our job is to try to put your values adopt a program that begins with spending and your dreams into law and into facts. It cuts, starting with a reduction in my own means we have to have a new economic pol- staff, a reduction in the size of the Federal icy that recognizes that for 20 years, through Government by 150,000 over the next 4 the administrations of Democrats and Re- years, big cuts in the administrative budgets, publicans alike, most working people have and asking the Federal employees to accept been working harder for lower hourly pay, a wage freeze and lower increases in later one that recognizes that for a long time we years so that we can bring the deficit down. have been the only advanced industrial coun- I have asked also that more than 200 other try that didn’t provide basic health care to spending programs be cut, including the en- all of our citizens, the only one that puts peo- titlements that have so much special-interest ple in the trap of not being able to change support. jobs if anybody in their family has ever been Second, it is clear to anyone who studies sick, because they’ve got a preexisting condi- this problem that we need new revenues also tion that will cost them their health insurance to bring the deficit down. I’ve asked those if they change jobs. That’s a huge handicap who can best afford to pay, whose taxes went in a world where the average 18-year-old will down in the 1980’s, the wealthiest Ameri- change work eight times in a lifetime. And cans, to pay most of what we need to raise. where, because of global competition, most Over 74 percent of my tax program comes new jobs are created by small businesses that from the top 6 percent of income earners. are coming into existence and going out of I also have proposed an energy tax which existence all the time. most Americans will pay. It is one that’s And then, for 12 years we have seen our called a BTU tax which will help promote national debt go from $1 trillion to $4 trillion conservation and the use of the most clean and our national investment in many things and fuel-efficient fuels. But listen to the way that are critical to our future go down. So it works: Because we offer income tax cuts we’re spending less on what we should be to working families with incomes under spending money on, and costs are exploding. $30,000, those will offset the impact of the You have a right to better than that. You energy tax. And for larger families under have a right to an economic policy that puts $25,000, there will even be a relief in the our people first, our jobs, policy that brings tax burden. For people with incomes above this deficit down so that we are not crushed $30,000, at $40,000 and $50,000 and and paralyzed with it into your children’s $60,000, here’s what it costs. You’re entitled

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to know in plain language. Next year it costs your children. You’ll be able to build a a dollar a month per family. The next year stronger family unit with a stronger family after that, $7 a month; and the next year after future. That’s what we’re also trying to do. that, depending on the size of your family, This program offers dramatic increases in in- between $14 and $17 a month. You have to centives for small businesses to invest money, decide if it’s worth it to bring the deficit to become more productive and hire new down. But let me tell you, all the tax in- people, to invest in research and develop- creases and the spending cuts will be put in ment, to find new products. It offers dra- a trust fund so that they can’t be used to matic incentives to people to try to end the do anything but bring the deficit down. And real estate depression that has gripped New we can’t have the taxes without the spending England and southern Florida and California cuts. That’s what the budget resolution that and many other places. It offers real incen- was adopted a few weeks ago means. We tives for people to invest in new businesses, must cut spending. So we’re going to do that, the biggest in the history of America, for peo- both things. ple to try their hand in starting new busi- Now, is it worth it? You have to be the nesses. It offers an investment in new tech- judge. But let me ask you just to consider nologies, in defense conversion for all these this. Since November, since we made it clear people around America who have lost their that we were going to try to attack this deficit jobs because of defense cutbacks. And it at- and after the announcement had been made tempts to establish a transition from school after the election that the deficit over the to work so that everybody, by the time we next 4 years would be over $160 billion big- finish this program, who graduates from high ger than we were told before the election. school, who doesn’t go to a 4-year college, Since November, long-term interest rates would at least have the clear opportunity to have dropped. Millions of Americans have al- move right into a 2-year program like this ready benefited by refinancing their home one so they don’t lose time becoming pro- mortgages, refinancing business loans. Many ductive and able to earn the best wages they others will benefit by lower interest rates on can earn. I think that is a good investment car loans or consumer loans or student loans. in our future. If just someone here has refinanced a home In other words, what I think our Govern- loan since November, in all probability, de- ment owes you is to move beyond the two pending on the size of the mortgage, you will dichotomies that have argued so long in save more in 1 year than you will pay in 4 Washington, in what I think is a very stale years in the energy tax. I think it is worth way. One says, ‘‘Well, you’re out there on it to keep the interest rates down and to drive your own and all we’ve got to do is make the deficit down. But you have to decide that. sure we don’t spend a nickel to see the cow There’s a third way that we’re trying to jump over the moon.’’ The other says, ‘‘We’ll make some fundamental changes. Just as we take care of you. We can do things for you. stop wasting money on things we don’t need, Don’t you worry about it.’’ Neither one of I think we do have to invest some in what those approaches is right. We can’t entitle we do need. A lot of you, just in order to people to something that they won’t work for. get through this program, had to cut back But neither can we turn our back on the plain on some of the things that you would like responsibility of the United States to provide to have spent money on. A lot of you made opportunity for people who will work for it. meaningful financial sacrifices in your own We have to empower people to seize what family life just to get here today so you could they are willing to seize. You have done your wear the cap and gown. I know that. But part; now we have to do ours. you’ve been wise to make that decision. I want to emphasize again for the majority Because of the investments you’ve made of people who do not go on to a 4-year col- in education and training, in the years ahead lege, it is imperative that we join the ranks you’ll be able to do more of the things that of the other high-wage countries and provide you gave up doing in the last 2 years. You’ll a system by which 100 percent of them at be able to provide more opportunities for least know they have the opportunity to move

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into a program like the one that you have happen overnight. A lot of these economic been a part of. It is imperative. Why? Be- trends have been developing for 20 years. cause just as what you earn depends on what The political policies that we seek to change you can learn, what America does in terms have been developing for a dozen years. And of growing jobs depends on how functional I must say, it is much easier to tell people all the people in this country are. We don’t that I’m going to cut your taxes and spend have a person to waste. There ought to be more money on everything than to say we’re twice as many people here today as there are going to have to raise some money and spend at this graduation ceremony. And if there less money on most things. were, the economy of New Hampshire and A lot of the easy things have been done, the United States would be stronger as a re- but I want you to believe that we can do sult. it. We have made a good beginning. Here’s I also believe very strongly that the United something that can affect you. After years of States ought to make available on terms ev- arguing, we finally passed the family leave erybody can afford the funds that people bill that says you can get some time off when need to borrow to finance their education a baby is born or somebody’s sick without to 2- or 4-year schools. And we have pro- losing your job. I signed last week the motor posed to change the whole basis of the way voter bill, which opens up the political proc- the student loan program works: to lower in- ess to easier registration, because another terest rates, number one; and number two, young student from New Hampshire got me to make available loans and then let people to sign a card when I was here saying that pay them back after they go to work and as I’d do my best to pass it if I got elected Presi- a percentage of their income, so that people dent. will not be discouraged from borrowing But changing this economy is a hard job. money today with the fear that they won’t It requires a lot of discipline, and it requires be able to pay it back if they get a job, espe- our patience and concentrated effort, yours cially if they get a job with a modest wage. and mine, over a long period of time. But You ought to be able to pay it back as a lim- we can do it. We can do it. The work of ited percentage of your income. It will make change is never easy. But you have proved a huge difference. you weren’t afraid to change. Now, I believe these policies together will The average student here is 30 years old. restore the sense of optimism to middle class I can remember when I was your age. A lot America that we need. The idea that we can of people would have been embarrassed to create jobs, that people who work at jobs can go back to school when they’re 30. Now raise their incomes over time if they continue we’ve got people going back to school when to improve their education and their produc- they’re 70. And let me tell you something: tivity. And if we can do that and deal with You must remain unafraid to change. You the health care issue, we can restore a sense must remain unafraid to change. Many of you of possibility to America. will have to go through retraining programs I don’t pretend that this will be easy, that when you’re in your mid- to late fifties. You the progress will be uninterrupted, that noth- should look at that as a great opportunity to ing bad will happen. As I said at the begin- live a rich and diverse and interesting life. ning, some of what happens to us economi- If we can do what we should do at the na- cally here in this country depends on what tional level to reward the efforts you are mak- is happening to all these other countries ing, then change can be your friend and not around the world. A big percentage of the your enemy. new jobs we’ve gotten in the last 5 years have The heartbreaking thing I saw in New come from trade. We won’t get many if Eu- Hampshire all during the primary season last rope and Japan are flat on their back. year and in 1991 was how many people had But a lot of what happens to us depends been victimized by change. I cannot repeal upon what we do here. And you’re entitled, the laws of change. No person can. Our com- having done your part, to know that your mon challenge is to preserve the values of Government has done its part. It may not work and family and community and reward

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for effort in the midst of all this change. You they’re willing to use the safe havens to build have done your part. You should be proud on, that is to build a reasonable territorial of yourselves today, and you should commit settlement instead of just confining folks to yourselves to continue to work to make sure camps forever. And finally, they also agree that change is your friend and that you are explicitly to leave stronger measures on the rewarded for the extraordinary and coura- table if these fail. So I feel much better about geous efforts you have made. the position than I did yesterday. I applaud God bless you, and good luck. Mr. Kozyrev. He’s done a lot of work on this. And I will say this: President Yeltsin said to NOTE: The President spoke at 11:05 a.m. In his me that after the elections and after they remarks, he referred to college president Jane began work on their own constitutional re- Power Kilcoyne. A tape was not available for ver- form, that Russia would come back in and ification of the content of these remarks. be a full partner in this. And he has kept his word. So we’ve worked together, and I feel good about it. Remarks on Bosnia and an Exchange With Reporters in Manchester, New Q. ——the risk of the United States forces Hampshire being drawn into a Vietnam-type quagmire that you’re concerned about? May 22, 1993 The President. No, it actually decreases The President. First of all, I’m very that risk. You can see from the statement pleased by the agreement that has been where we are on this. We have reaffirmed reached by Secretary Christopher and the our previous agreement to protect the forces foreign ministers from Russia, France, the that are there working for the United Nations United Kingdom, and Spain. I think it puts if they are attacked. We have said explicitly us back together with a common policy. I that we would talk to the government in Mac- think that is a very good thing. I think it does edonia about the United Nations strengthen- some important work in confining the con- ing its presence there and about whether it flict to Bosnia so it doesn’t spread into Mac- would be advisable for us to have a small edonia and Kosovo or other places. I think force there. We are clearly not going to get that it takes a step toward ending the ethnic involved there either unilaterally or multilat- cleansing and slaughter by staking out the erally in the conflict on one of the sides of safe havens without doing what I was op- one of the combatants in a civil war. That’s posed to, which is basically agreeing that those folks were going to be in camps there. what happened to us in those other places. In other words, we’re still pushing for a polit- So the American people should be reassured ical settlement that has reasonable land for that we have limited the possibility of quag- the Bosnian Muslims. So I think it’s a real mire and strengthened the possibility of end- step forward. I think it has a chance to do ing the ethnic cleansing and the possibility some good. I’m glad we’re working together of limiting the conflict. I think this is a signifi- again, and I applaud all the foreign ministers cant step. And we’re back in harness again, for this work. which is where we ought to be. We’re all working together. I’m encouraged by it. Q. You were a little skeptical yesterday after the meeting with Foreign Minister Thank you. Kozyrev. Has something happened in the last 24 hours? The President. Well, what happened was NOTE: The President spoke at 5:25 p.m. at the two things. Number one, the safe havens Manchester Institute of Arts and Sciences. A tape were defined in a way that was clearly de- was not available for verification of the content signed to end the slaughter, provide safety of these remarks. and humanitarian aid. And number two,

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Remarks to the National Commission of the cold war, that imposes major new chal- to Ensure a Strong Competitive lenges for the airline manufacturers and for Airline Industry the major component parts suppliers and May 24, 1993 producers. So these are difficult issues. There are also Thank you very much. First of all, I want serious questions about international com- to just thank all of you for your willingness petition. What kind of competition do we to serve. I think I should say, because of the face, and how can we face it in a way that coverage that this initial meeting is getting, is fair to the American workers and all the that the American people should know that American people whose livelihoods depend this is not an ordinary commission; there’s on this? only a 90-day time window. It will require The point I want to make to you is I think an enormous sacrifice of your personal time that this is one of the major issues involved and effort to do all the massive work that in shaping our competitive position in the needs to be done, and I very much appreciate world. Governor Baliles and I were discuss- your willingness to do it. ing this whole issue 10 days ago. He noted I’d also like to say a special word of appre- and I will repeat how remarkable it is that ciation to the Congress because of the bipar- almost every major economic issue we face tisan nature of the support that this Commis- today ultimately comes down to whether we sion had. We all made efforts to appoint peo- can compete and win in a global economy. ple without regard to party and instead based And if so, what do we have to do to enable upon their knowledge of this issue and their our people to do that, and what kind of part- commitment to doing something about it. nerships do we need in the public and private And I think there is a real consensus in sector? America that the people who make airplanes This is an area, I’ll say again, where I think and equipment and the people who run our we have a major potential for bipartisan airlines are critical to our economic future. agreement to move forward, to protect and It’s a big part of our trade surplus. There promote an enormously significant sector of are millions of people whose jobs depend our economy. I’m very optimistic about what upon it. we can do over the longrun. A lot of you In his most recent book, ‘‘Head to Head,’’ around this table know more personally than the economist Lester Thurow argues that do I what great difficulties we have faced in there are seven major areas of technology the last few years and understand there are which will produce the lion’s share of the still some tough challenges ahead. But I feel high-wage, high-growth jobs of the 21st cen- strongly about this. I think we can do it. I tury, at least as far as we can see into that think we have to do it. century, that aerospace is one of those areas, If you look at the whole range of chal- and that a nation with a stake in any of these lenges facing the United States, the things technologies gives it up only at its peril. that I’ve tried to come to grips with in the We have enjoyed an enormously positive last 4 months—trying to get the deficit under position in aerospace for a long time now. control, trying to develop a technology policy, But if you look at our airlines, the airlines trying to develop a more aggressive way of alone have lost as much money in the last helping people adjust from the defense to 4 years as they made in the previous 60. We a domestic economy and all the cutbacks that have got to take a look at what that means that involves—a lot of that work will be sub- for us. If you look at the fabulous manufac- stantially undermined unless we have a vi- turers and suppliers that we built up, there’s brant aerospace sector in our economy. It is no question that the partnership that those critical to building a high-wage future for manufacturers were able to develop, not sim- America not just in the States that are obvi- ply with the private airline companies but ously affected, like Washington State—and also with the Defense Department, made the we have some Members of Congress from economics of what they were doing work. As Washington on this Committee—but we build down our defense budget at the end throughout the United States. There’s not a

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State, not a community in this country that praise to my State’s senior Senator, Dale won’t be better off if we have a strong and Bumpers, who sponsored this legislation to vibrant aerospace economy. create the microloans, something that he Now, having said that, I want to introduce learned about as a result of a community de- formally, for whatever remarks he might wish velopment bank operating in our home State. to make, Governor Baliles. I asked him to I am very proud of it. It was modeled on chair this Commission for a number of rea- the South Shore Bank in Chicago, and when sons. I’ve known him for many years; we I was Governor, we worked hard to bring were colleagues in the Governors’ con- the bank there. We know that this concept ference together. In my former life, I had works. And I appreciate very much the work the privilege to serve with about 150 Gov- that Senator Bumpers has done to bring this ernors in the seventies, the eighties, and the concept throughout America. nineties. If you forced me to make a list of I also want to say that if the Congress, later the 10 best I served with, Jerry Baliles would this year, adopts our proposal for community certainly be on the list. He’s one of the most development banks, then there will be more intelligent public servants I’ve ever known. He also has the kind of mind that I think banks out there supporting the SBA in the we need to bring to this task. He sorts out work of making microloans. This is very im- the wheat from the chaff pretty quickly, gets portant because an enormous percentage of to the bottom line, and synthesizes issues re- the jobs in America are now being created markably well. I think you will enjoy working by small business people and by people start- with him. I think you will be glad you had ing up their own businesses and by people the opportunity to do it. And I believe, in who are self-employed. This is an innovative no small measure because of the leadership approach which opens the doors of oppor- he will bring to your work, there’s a real tunity to Americans who otherwise would chance that we’ll all be very proud of the find those doors closed. The program enables results that come out. community-based lenders to expand their Thank you very much. reach and to make very, very small loans to entrepreneurs who otherwise simply couldn’t NOTE: The President spoke at 10:20 a.m. in the find a way to make their ideas real. Indian Treaty Room at the Old Executive Office Building. In his remarks, he referred to Gerald Many potential borrowers simply don’t L. Baliles, Chair of the Commission and former meet the credit standards of traditional lend- Governor of Virginia. ers. Why? Because of a poor credit history or no track record as a borrower, they may simply not have enough collateral. In fact, Remarks on the Small Business SBA analysis indicates that many microloans Administration Microloan Program will be made to individuals who are currently May 24, 1993 on public assistance. By encouraging entre- preneurial instincts, the program will then Good morning. Welcome to the White give them the help they need to take the first House, and thank you for coming. A year and steps toward economic independence, not a half ago, the Small Business Administration dependence. And in so doing, this could be issued the first microloan grants. To date, SBA has awarded 47 grants. We now more a very important part of our overall welfare than double the program with 49 new grants. reform strategy to move more Americans And we believe that 42,000 jobs will be cre- from welfare to work. ated as a result. This administration is com- By using community-based lenders—and mitted to helping entrepreneurs create prof- some are with us today, and I want to thank its and jobs, and the microloan program is all of you who are here for your commitment integral to our strategy to make that happen. to this concept—this program relies on the I want to thank Senator Pressler and Sen- lenders’ understanding of the community ator Bumpers for their attendance here and helps to empower the community with today. And I want to say a special word of

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the needed resources to create jobs and It is exactly these kinds of creative, hard- growth. SBA looked to these lenders for working people that the microloan program guidance when this program was being de- is designed to help. Since June of 1992, the signed. It is the lenders’ history of investing Small Business Administration had awarded in their communities that will ensure the pro- about $16 million to lenders who have al- gram’s success. ready made 330 loans to small businesses. Gail Miller from Dumas, Arkansas, started Today’s awards represent another $16 mil- her pottery business, Miller’s Mud Mill, 8 lion. And the Small Business Administration years ago, intent on making the money to calculates that 42,000 jobs will result. send her sons to college and give them their Small business is the backbone of our eco- shot at the American dream. Gail has had nomic strength. In the last 10 to 12 years, good and bad years, but she’s learned that small business has created more jobs that 15-hour days and 7-day weeks can produce were lost during the restructuring of the larg- a profit. In fact, she’s had so many orders er businesses of our country. However, about that she and her two-person staff can’t keep 3 years ago, the small business job engine started to slow down because of the global up with the demand. Last year their inability recession, the credit crunch here in America to meet the demand cost her $90,000 in lost which we are trying to deal with, the spiraling sales. How many business people in America cost of health care, and other problems. But would love to have that problem? Gail has a lot of it is simply barriers to entry because found the answer, however. The Arkansas of the lack of available capital. Enterprise Group, a microlender from To preserve the vitality of small business, Arkadelphia, Arkansas, knows a good thing and increase their capacity to expand our when it sees it. Using funds they borrowed work force, we need programs like this one. from the SBA through the microloan pro- The best route to the American dream is the gram, the group has granted Gail a $25,000 same route people have trod for many, many loan. She’s going to use just under 20 percent years now: through the small businesses. of the money to buy a version of the machine That’s why we’re expanding the microloan used by major china manufacturing compa- program today. It creates jobs, it relies on nies. This increased capacity for production the private sector, it rewards drive and cre- will finally allow her to take advantage of the ativity. demand for her product. She’ll use the re- I want to say a special word of thanks again maining funds for a revolving line of credit. to the Congress and especially to Senator Denise Cook used to receive welfare bene- Bumpers, the chairman of the Small Business fits through AFDC, but she understands that Committee, for making this possible. I want we all have a responsibility to work for self- Gail Miller to be able to send her sons to reliance. Denise trained herself as a paralegal college, and this program will give her the and put herself through school, working day tools, and small business men and women and night. Eventually, she graduated with a like her, to do exactly that. B.A. in criminal justice. She worked for a Now I’d like to introduce two of the suc- number of different firms as a paralegal, but cess stories here on the program. And I want her strong desire for independence and a to introduce all of them, of course: Erskine keen interest in forensic research drove her Bowles, the SBA Administrator, who has al- into starting her own business. Self-Help ready talked; Denise Cook and Gail Miller Ventures Fund in North Carolina has a peer- who will speak; Geraldine Janes, Chris and lending microenterprise program that re- Regina Welch are also up here with us, and quires training and business ownership, in- they may or may not want to say anything. cluding peer counseling, as a prerequisite for But Denise and Gail have agreed to speak, the loan. After she completed the successful so I’d like to call first Denise Cook and then training period, Denise received a $500 loan Gail Miller. Let’s give them a hand. [Ap- to get her business off the ground. Today plause] she provides investigative legal research to [At this point, Denise Cook and Gail Miller law firms and other clients. spoke.]

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I want to thank all of you here who are sion. But I’m not particularly surprised by lenders, who have worked on these pro- the various responses—— grams. The folks up here on this platform Q. Mr. President, do you hope this week are the kind of people I ran for President goes better than last week? to try to help. And I am deeply moved by what we have seen today. It kind of rein- The President. We had a good week last forces my belief that these programs are on week. The Ways and Means Committee the right course and that we can make a huge voted the bill out—signed the motor voter difference, that there are millions of people bill. our here, literally millions, who could be em- ployed and empowered if we had the systems in place and the people there who felt com- NOTE: The exchange began at 4:05 p.m. in the fortable making loans and making these kinds Oval Office at the White House. A tape was not of judgments and understood what had to available for verification of the content of this ex- be done. change. And I thank all of you for being part of a genuine American experiment. I wish you well. I ask you to redouble your efforts. We’ll redouble ours, and I know the Congress will Message to the Congress make sure that we get what we need to make Transmitting the District of these programs succeed. I thank you all. And Columbia’s Budget Requests I thank you, Senator Bumpers, Senator Pressler, for being here. We’re adjourned. May 24, 1993 Thank you very much.

NOTE: The President spoke at 11:05 a.m. in the To the Congress of the United States: Rose Garden at the White House. In his remarks, he referred to small business owners Geraldine In accordance with the District of Colum- Janes and Chris and Regina Welch. bia Self-Government and Governmental Re- organization Act, I am transmitting the Dis- trict of Columbia Government’s 1994 budget Exchange With Reporters Prior to request and 1993 budget supplemental re- Discussions With President Richard quest. von Weizsa¨cker of Germany The District of Columbia Government has May 24, 1993 submitted a 1994 budget request for $3,389 million in 1994 that includes a Federal pay- ment of $671.5 million, the amount author- Bosnia ized and requested by the Mayor and City Q. Mr. President, have you been surprised Council. The President’s recommended 1994 or disappointed by the reaction in Bosnia and Federal payment level of $653 million is also Serbia—— included in the District’s 1994 budget as an The President. You mean, the opposition alternative level. My transmittal of the Dis- to it? trict’s budget, as required by law, does not Q. The opposition and the initial support represent an endorsement of its contents. from Mr. Karadzic. I look forward to working with the Con- The President. No, it’s about like I ex- gress throughout the 1994 appropriation pected it to be. process. Q. ——U.N. observers into Serbian terri- tory, how does that complicate things? The President. I don’t want to say any William J. Clinton more about it now. I want to talk to the Presi- dent about it. We’ll try to just absorb what The White House, has been said and make the appropriate deci- May 24, 1993.

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Announcement of Presidential The President. The only thing I know is Scholars that we made a decision to save the taxpayers May 24, 1993 and the press money. That’s all I know. We saved 25 percent on the first plane ride and The President joined Secretary of Edu- saved the taxpayers a bunch of money. Any cation Richard Riley today in naming 141 other questions, I’ll just refer you to Mr. high school seniors as 1993 Presidential McLarty—— scholars. The scholars, who are recognized Q. Was it your decision to go around the for their achievements in academics or the Attorney General and have the FBI issue a arts, will visit Washington June 19–24 and very rare statement? will be honored at a White House ceremony The President. I had nothing to do with where each will receive a Presidential scholar any decision, except to try to save the tax- medallion. payers and the press money. The press has ‘‘These young people represent the best been complaining for years that they were in our country,’’ said the President. ‘‘Through hard work and community service they have overcharged by the way the thing was done earned this prestigious award. I look forward before. The first trip out we saved 25 percent to meeting them next month at the White for the press, and the taxpayers saved a lot House.’’ of money. That’s all I know about it. Final selections of the scholars were made by a 32-member Commission on Presidential NOTE: The exchange began at 8:45 a.m. in the Scholars chaired by New Jersey Governor State Dining Room at the White House. A tape Jim Florio. The Commission was appointed was not available for verification of the content by President Clinton earlier this month. of this exchange. The 141 winners include one young man and one young woman from each State, the District of Columbia, Puerto Rico, and from Remarks at the ‘‘Drive American American families living abroad; 15 at-large Quality’’ Event scholars and 20 scholars in the arts. Academic scholars were selected on the basis of SAT May 25, 1993 and ACT scores, essays, school recommenda- tions, and transcripts. Arts scholars were Thank you very much, Mr. Bieber, and to identified through an Arts Recognition and all of you who are here. I want to say a special Talent Search program conducted by the Na- word of thanks to Mr. Smith and Mr. Poling, tional Foundation for Advancement in the Mr. Eaton and Secretary Brown and Sec- Arts. retary Reich. I see Mr. Bieber just gave Sec- retary Reich a nightshirt. I also want to thank NOTE: A list of the scholars was made available all the Members of the Congress who are by the Office of the Press Secretary. here and for their support of the auto indus- try in this country. Exchange With Reporters Prior to a I grew up as a boy, starting from the time Meeting With House Democratic I was about 6 years old, in the back of a Leaders Buick dealership. I have been interested in May 25, 1993 the automobile business all my life. I watched with sadness when it was down, and I feel great elation now that I see it coming back. White House Travel Office These cars are what is best about America: Q. Mr. President, we haven’t actually been increasing productivity, increasing quality, able to get your view on the dealings the and gaining market share back. The people White House had with the FBI on all this who make them are the people who deserve travel stuff. Could you tell us what your view our support, and this administration is deter- of all that is? Was it appropriate? Did you mined to give it to them. Last year the auto know about it?

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industry production was 5.6 percent of our ago most people would tell you would never gross national product. In 1992, vehicle and happen: American-made cars winning the parts manufacturing directly accounted for quality race and regaining market share. 4.6 percent of our manufacturing employ- That’s what we’re going to do with our coun- ment. During the first quarter of this year, try. the Big Three accounted for two out of three Thank you and bless you all. auto sales in the United States, with the American cars gaining market share in 1993. NOTE: The President spoke at 1:55 p.m. at the This did not happen by accident. It required National Air and Space Museum. In his remarks, investment, it required reorganization, it re- he referred to Owen Bieber, president, United quired some reductions in spending. Over Auto Workers; John F. Smith, Jr., president, Gen- the last 3 years, $73 billion have been in- eral Motors Corp.; Harold A. Poling, chairman vested by the Big Three. Since 1981, quality and chief executive officer, Ford Motor Co.; Rob- has dramatically improved. The number of ert J. Eaton, chairman and chief executive officer, customer-reported defects is down by 80 Chrysler Corp. percent. And many of our American cars, by any quality measure, are better than their foreign competitors today. They are also Exchange With Reporters at the more fuel-efficient and increasingly so. National Air and Space Museum Our great challenge now is to produce cars of high quality at affordable costs that are May 25, 1993 environmentally responsible and that pre- serve good jobs here in America for those who can compete and win. In order to do Budget Proposal that, we have to begin by getting our house Q. Mr. President, is the House going to in order. In the next few days, the United pass your tax bill? States Congress will have a chance to adopt The President. I think they’re going to the biggest deficit-reduction package in the pass the budget bill, yes, which has a lot of history of this country, one that asks wealthi- cuts in it, and it also has some good things er Americans—who, I might add, have over- for these folks, good for manufacturing, good whelmingly been supportive of this—to pay for small business. Good bill. most of the burden of the new taxes, which exempts lower middle income Americans from any burden and which asks the Con- NOTE: The exchange began at 2 p.m. A tape was not available for verification of the content of this gress to impose unprecedented cuts, includ- exchange. ing reducing the Federal work force by 150,000 over the next 4 years and cutting over 200 specific Government programs. This is a balanced program. We also invest Remarks on Signing the Older in jobs, in technology, and education and Americans Month Proclamation training. If we can get our house in order, May 25, 1993 if we can bring our deficit under control, re- duce it, make some room for targeted invest- Thank you very much, Senator Pryor and ments in jobs and people, we can turn this Secretary Shalala. Let me also acknowledge country around. in the audience the presence of Senator Bill I think that the auto industry has showed Cohen from Maine, Congressman Marty us what it takes. You’ve seen reduction in Martinez, and Congressman William spending, you’ve seen painful cuts, you’ve Hughes. We’re glad to see them. And I also seen dramatic increases in investment, you’ve want to pay a special word of respect to my seen American workers not just working good friend, our Vice President’s mother, harder but smarter, and you have seen years Mrs. Pauline Gore. She’s a little too young and years and years of disciplined effort re- to be here, but I’m glad to see her here any- warded by something 5 years ago or 6 years way.

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You know, Senator Pryor told that story only here in Washington but all across Amer- about the 100-year-old man who had been ica. against all the changes he’d seen. One of the I am, in that regard, proud that we have things I think that age does for all of us is for the first time an Assistant Secretary for it gives us the ability to laugh at things that Aging in the Department of Health and once we would have cried about, something Human Services, and I’m proud of Dr. Fer- I’ve needed more and more as I’ve taken this nando Torres-Gil who was introduced and job. [Laughter] who received such a warm reception from But David told this story. It reminded me, you. there’s a town in Arkansas that has my name, The second thing that we hope to do is called Clinton, and I was invited there once to deal with some of the terrific health care to a nursing home to celebrate the 107th challenges facing our senior citizens while birthday of this lovely woman. And I showed keeping faith with the obligations we now up, and she had a beautiful pink dress on. have to maintain the integrity of Social Secu- And I said, ‘‘Gosh, you’re pretty today.’’ And rity. The fastest growing group of Americans she said, ‘‘Don’t you go flirting with me. I’m are people over 80. The largest number of not looking for a husband.’’ [Laughter] And people I met on the campaign trail last year so I said, ‘‘Well, I appreciate that.’’ I said, with really heartbreaking stories were elderly ‘‘You know, I already have one wife. Don’t people just above the Medicaid eligibility line you think that’s enough?’’ And she said, ‘‘I who had massive drug bills every month. And guess so, hard as times are.’’ [Laughter] literally, I met people in State after State Sometimes I think about that. after State that made the weekly choice be- tween food and medicine because they were This is the 30th anniversary of Older just above that Medicaid eligibility line and Americans Month. And I can’t think of any- had no way in the wide world to pay for med- body I’d rather be up here with than Sec- icine that was absolutely necessary to main- retary Shalala or with Senator Pryor. When tain their health. I was attorney general and David Pryor was So in this health program—I know a lot Governor, I just reminded him up here, 18 of you have already heard a speech about years ago we sponsored our State’s first con- this from my wife, and she’s gotten a whole ference on long-term care and how to pro- lot better on this subject than I have—but vide long-term care for senior citizens. Well, we are committed to a health care plan which we’re still chipping away at it, but I just want will provide coverage for all Americans, you to know at least we’ve got some creden- which will lower the cost of health care, tials for being in the vineyards. which will lower the cost of health care for We are committed to keeping faith with our country in the years ahead—we’re al- the senior citizens of this country, and we ready spotting our competitors 35 percent of are trying to fulfill that commitment in two every dollar spent on health care—and very important ways that are specific to our which, at the same time, will begin to address senior citizens and one that is very important the problems that I saw out there for a wider for the responsibility we all seem to feel for range of long-term care services and for deal- the future. The first is the White House Con- ing with the drug problem that our elderly ference on Aging to discuss providing for people have who are not Medicaid-eligible. older Americans and also for making better These are the things that we must have in use of the time and talents of our senior citi- a comprehensive, long-term care package. zens. I feel very strongly that both those I also want to say to you that I believe things are important. Most people I know any responsible health care plan must en- who are in their later years want to be chal- courage and indeed have incentives for lenged to do more, to bring to bear their health care maintenance and for the preven- energy, their experience, their judgment, and tion of bad things happening. With the fastest their perspective on a lot of the very thorny growing group of people being people over problems and challenges we face today. And 80, with more and more senior citizens com- I hope our administration can do that not ing into really dominant positions in our

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country, with the Social Security system tunity now, we will have squandered our re- starting in a few years to raise the retirement sponsibilities to those who come behind us. eligibility limit by a month a year, as all of You know, I think more about it with each you know, as a part of the 1983 resolution succeeding year that my daughter grows to resolve the crisis that then existed, it is older. I think about how it won’t be so long absolutely imperative that we not only think before she and her generation will be making about giving health care services but main- decisions that now we’re wrestling over. We taining strong, healthy people. And that has owe it to those kids and to the ones who got to be a critical part of our health care will follow behind them to provide the free- plan, and I know all of you will be out there dom of movement that any great society lobbying for that. We so often strain at a gnat needs to reach the challenges of that time. and swallow a camel when we don’t have We today, and this Congress, every Member enough prevention and maintenance of will tell you, those people who occupy Wash- healthy people in our health care plans and ington today are hamstrung by a lack of free- even in our own daily habits. And so I hope dom of movement because we have per- you will all support that. mitted paralysis to drive this deficit up, be- The last thing I’d like to say is that it seems cause we have refused to deal with the health to me that those of you who represent older care crisis, we have refused to deal with auto- Americans are in a unique position, being matic explosions and things that we could able to have the benefit of memory, to know have dealt with. And the time has come to what is going to happen to us in the years face it and face it squarely. And I hope and ahead if we do not move now and move ag- pray, for the sake of our children and grand- gressively to get control of this Government children, we are about to do just that in the next few days in the United States of Amer- deficit, to bring down our interest rates, to ica. enable our economy to grow, to give us some I want to say one thing finally. On the tax more elbow room. Year-in and year-out for side of this plan, 74 percent of the burden the last several years, my heart has gone out falls on the top 6 percent of income earners to Members of the Congress in both parties in America, and a lot of the rest falls on the who have struggled to find funds for things top 20 percent of Social Security recipients they think needed to be funded or to just whom we have asked to subject more of their keep things going along as they are, as we income to taxation so as to avoid reducing become more and more consumed by an cost of living allowances to all the Social Se- ever-growing deficit, going from $1 trillion curity recipients in the land who need that. to $4 trillion in just 12 years. One of the things I think we have not said I believe, as all of you now know, that we enough, and I believe most people in the need to have both spending cuts and tax in- Congress would admit this: We have heard creases to close this deficit and to bring it very little opposition from upper income down. We could all argue until the cows Americans to paying their fair share of taxes come home about whether every last deci- as long as they believe we’re going to cut sion has been perfectly right, but it is per- spending, bring the deficit down, and provide fectly clear that if you don’t do both, you for the basic needs of this country. And to can’t get where we’re going. And it is abso- me, that’s been one of the most rewarding lutely imperative that we send a clear signal things out there. A lot of the opposition is not only to the financial markets but to our coming from middle class people who think children and our grandchildren that we are they’re going to pay a lot more than they are. thinking about their future, that we are not But the people who are really going to pay going to saddle them with so much debt that and who know it, by and large, have been we won’t be able to finance education and immensely patriotic in this last 2- or 3-month economic growth and the kinds of things that period, knowing that they have to make a every generation of Americans must be free contribution to securing the future. to spend money on, both private money and All of you here who represent the elderly public funds. If we don’t take that oppor- people of our country, you can reach out and

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embrace this effort in a way that no other ders our Nation has ever produced. The chal- generation of Americans can. This is a dif- lenges they have met—and met success- ficult time for the Congress, a difficult time fully—have enabled them to make a continu- for the country. The worst thing we can do ing contribution with wisdom and under- is to walk away and do nothing and continue standing. We can see this not only in our the perilous paralysis of the last few years. families, as a new wave of responsible So I implore you to shoulder this. Think of grandparenting helps ensure the future of our kids and grandkids. Let’s move this coun- our children, but also in our communities, try forward in a bipartisan and open manner. which benefit from the experience and lead- Thank you. God bless you. And let’s get ership of older Americans who volunteer on with the signing. their talent and time in fields ranging from NOTE: The President spoke at 5:30 p.m. in the business management to the arts. East Room at the White House. While we salute the continuing contribu- tion of older Americans, we also acknowledge our debt and responsibility to them. We Proclamation 6565—Older renew our commitment to preserving for Americans Month, 1993 them the quality of life they deserve. We will May 25, 1993 safeguard their economic security not only through preserving the Social Security sys- By the President of the United States tem but also by strengthening our Nation’s of America overall economic performance. We will pro- vide the leadership that will help our elders A Proclamation remain independent members of the com- This year marks the 30th anniversary of munity for as long as possible. We will supply Older Americans Month—a time when we, that help in the neighborhoods where they as a Nation, honor our elder citizens and rec- live—through the kinds of social and sup- ognize the many contributions they have portive services made possible through the made to our country. Older Americans Act and other programs. Older Americans, having witnessed many And we can help ease the suffering and worry of our Nation’s historic milestones, are em- caused by increased medical expenses bodiments of 20th century American history. through enacting a national program of Many lived through the trying times of the health care reform. Great War, the Depression, and the Second By helping to preserve the security and World War. With younger generations, older independence of older Americans, we are Americans shared the anguish of the Cold also ensuring that our own futures will be War and helped their more youthful country- ones of dignity with independence. men get through this difficult period. Now, Therefore, I, William J. Clinton, Older Americans provide us with the expe- President of the United States of America, rience, knowledge, and leadership that are by virtue of the authority vested in me by needed to help our Nation ply the difficult the Constitution and laws of the United waters of the present. Through their experi- ence with adversity, older Americans under- States, do hereby proclaim the month of May stand the critical need for shared sacrifice 1993 as Older Americans Month. I call upon in meeting the challenges we face. Their wis- the people of the United States to observe dom provides us with a valuable perspective this month with appropriate ceremonies and on how we must reorient our society toward activities in honor of our Nation’s senior citi- investment in the future. Working in a variety zens. of roles, as volunteers and employees, mil- In Witness Whereof, I have hereunto set lions of older Americans continue to give my hand this twenty-fifth day of May, in the their communities the fruits of their labor. year of our Lord nineteen hundred and nine- Today’s older Americans are the best edu- ty-three, and of the Independence of the cated, most well-informed generation of el-

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United States of America the two hundred The President. I don’t have any reason and seventeenth. to believe that. I mean, for example, there are lots of cases where, historically, as nearly William J. Clinton as we can determine, the White House, if something happened within the White [Filed with the Office of the Federal Register, House, might ask the FBI to look into it. 3:14 p.m., May 26, 1993] So I don’t know that. I don’t know that. And I don’t have an opinion yet. I have to wait. Mack agreed that he needed to really make NOTE: This proclamation was published in the Federal Register on May 28. sure that he had all the facts down; he need- ed to know exactly what had happened; he needed to report to me. I said, ‘‘Look, this is just a simple case. Let’s just follow the do- Exchange With Reporters After right rule here, make up your own mind, get Signing the Older Americans Month the facts, see what you think happened, let Proclamation me know, and we’ll tell the public.’’ I mean, there’s nothing funny going on here. We real- May 25, 1993 ly were just trying to save money for every- body. That was the only thing I was ever asked about personally. And I don’t believe White House Travel Office that anybody else had any other motives that I know about. And so I asked him to look Q. Mr. President, are you upset by this into it. When we know more, we’ll be glad whole Travel Office mess? And who’s re- to say more. sponsible for it, sir? Q. What about Dole saying it has a tinge The President. Well, ultimately, anything of Watergate? that happens in the White House is the re- The President. There’s none of that be- sponsibility of the President. And whenever cause, you know, there’s nothing like that you’ve asked me a question, I’ve told you all going on. There’s no—no. I knew about it. All I knew was there was a plan to cut the size of the office, save tax Q. Don’t you think—— dollars, save the press money. I talked to Mr. Q. [Inaudible] McLarty about it this morning. I said, you The President. We’re on top of it. know, I keep reading this; I know that there We’ll—— is a feeling at least, based on what I’ve read, Q. Don’t you think a lot of people were that someone in the White House may have hurt by the way it was handled? done something that was inappropriate or that wasn’t quite handled right or something. The President. Well, the question is Mack and I talked about it today. He said whether the people that were hurt did any- he would spend some real time on and look thing to merit it. We’ll just have to see. I into it, try to ascertain exactly what hap- mean, I want to get a report, and then I will pened, make a full report to me, which I be glad to tell you whatever I know. But let think is the appropriate thing to do. I simply me find out—— can’t tell you that I know something I don’t. Q. [Inaudible] I literally don’t know anything other than The President. All those decisions have what I’ve told you. He’s looking into it now. been made by Mack. We talked yesterday. He’s worked on it quite a bit today. And he’s We talked again this morning. He said, going to make a report to me, and then we ‘‘Look, I just want to get on top of this. I’ll will take appropriate steps, including saying tell you exactly what happened. I’ll tell you whatever’s appropriate to you. what I think.’’ So I’m waiting for a report. Q. Do you think that the White House And I don’t think I should say anything else approached the FBI improperly in this case? until I know more.

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NOTE: The exchange began at 5:43 p.m. in the Agreements Act of 1979, as amended (19 East Room at the White House. A tape was not U.S.C. 2518), shall apply in determining available for verification of the content of this ex- whether goods originate in the member change. states of the EC. Sec. 3. This order shall apply only to solici- Executive Order 12849— tations, issued by agencies listed in Annex Implementation of Agreement With 1, Parts A and B, of this order, above the the European Community on threshold amounts set forth in Annex 2. Government Procurement Sec. 4. This order shall apply to solicita- tions outstanding on the date of this order, May 25, 1993 except for those for which the initial deadline for receipt of bids or proposals has passed, Whereas, the United States and the Euro- and to all solicitations issued after the date pean Community (EC) have entered into a of this order. Memorandum of Understanding on Govern- ment Procurement (Agreement) that pro- Sec. 5. Except for procurements by the vides appropriate reciprocal competitive gov- Department of Defense, the United States ernment procurement opportunities; Trade Representative (USTR) shall be re- Whereas, the commitments made in the sponsible for interpretation of the Agree- Agreement are intended to become part of ment. The USTR shall seek the advice of the an expanded General Agreement on Tariffs interagency organization established under and Trade Agreement on Government Pro- section 242(a) of the Trade Expansion Act curement (GATT Code) and are an impor- of 1962 (19 U.S.C. 1872(a)) and consult with tant step toward an expanded GATT Code; affected agencies, including the Office of Federal Procurement Policy. Whereas, as a result of these commit- ments, U.S. businesses will obtain increased Sec. 6. This Executive order is effective access to EC member state procurement for immediately. Although regulatory implemen- U.S. goods and services; tation of this order must await revisions to the Federal Acquisition Regulation (FAR), it Whereas, I have determined that it is in- is expected that agencies listed in Annex 1, consistent with the public interest to apply Parts A and B, of this order will take all ap- the restrictions of the Buy American Act, as propriate actions in the interim to implement amended (41 U.S.C. 10a–10d), to procure- those aspects of the order that are not de- ment covered by the Agreement; pendent upon regulatory revision. Now, Therefore, by virtue of the author- ity vested in me as President by the Constitu- Sec. 7. Pursuant to section 25 of the Office tion and the laws of the United States of of Federal Procurement Policy Act, as America, including section 301 of title 3, amended (41 U.S.C. 421(a)), the Federal Ac- United States Code, and title III of the Trade quisition Regulatory Council shall ensure Agreements Act of 1979, as amended (19 that the policies established herein are incor- U.S.C. 2511–2518), and in order to imple- porated in the FAR within 30 days from the ment the Agreement, it is hereby ordered date this order is issued. as follows: Section 1. In applying the provisions of William J. Clinton the Buy American Act, the heads of the agen- The White House, cies listed in Annex 1, Parts A and B, of this May 25, 1993. order are requested, as of the date of this order, to apply no price differential between articles, materials, or supplies of U.S. origin [Filed with the Office of the Federal Register, 9:25 a.m., May 26, 1993] and those originating in the member states of the EC. Sec. 2. For purposes of this order, the rule NOTE: This Executive order was published in the of origin specified in section 308 of the Trade Federal Register on May 27.

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Notice on Continuation of Message to the Congress Emergency With Respect to the Transmitting the Notice on Federal Republic of Yugoslavia Continuation of Emergency With (Serbia and Montenegro) Respect to the Federal Republic of May 25, 1993 Yugoslavia (Serbia and Montenegro) May 25, 1993 On May 30, 1992, by Executive Order No. 12808, President Bush declared a national emergency to deal with the unusual and ex- To the Congress of the United States: traordinary threat to the national security, Section 202(d) of the National Emer- foreign policy, and economy of the United gencies Act (50 U.S.C. 1622(d)) provides for States constituted by the actions and policies the automatic termination of a national emer- of the Governments of Serbia and Montene- gency unless, prior to the anniversary date gro, blocking all property and interests in of its declaration, the President publishes in property of those Governments. The Presi- the Federal Register and transmits to the dent took additional measures to prohibit Congress a notice stating that the emergency trade and other transactions with the Federal is to continue in effect beyond the anniver- Republic of Yugoslavia (Serbia and Montene- sary date. In accordance with this provision, gro) by Executive Orders No. 12810 and No. I have sent the enclosed notice, stating that 12831, issued on June 5, 1992, and January the emergency declared with respect to the 15, 1993, respectively. Because the Govern- Federal Republic of Yugoslavia (Serbia and ment of the Federal Republic of Yugoslavia Montenegro) is to continue in effect beyond (Serbia and Montenegro) has continued its May 30, 1993, to the Federal Register for actions and policies in support of groups seiz- publication. ing and attempting to seize territory in Cro- atia and Bosnia-Hercegovina by force and vi- The circumstances that led to the declara- olence, the national emergency declared on tion on May 30, 1992, of a national emer- May 30, 1992, and the measures adopted gency have not been resolved. The Govern- pursuant thereto to deal with that emer- ment of the Federal Republic of Yugoslavia gency, must continue in effect beyond May (Serbia and Montenegro) continues to sup- 30, 1993. Therefore, in accordance with sec- port groups seizing and attempting to seize tion 202(d) of the National Emergencies Act territory in the Republics of Croatia and Bos- (50 U.S.C. 1622(d)), I am continuing the na- nia-Hercegovina by force and violence. The tional emergency with respect to the Federal actions and policies of the Government of Republic of Yugoslavia (Serbia and Montene- the Federal Republic of Yugoslavia (Serbia gro). and Montenegro) pose a continuing unusual and extraordinary threat to the national secu- Fed- This notice shall be published in the rity, vital foreign policy interests, and the eral Register and transmitted to the Con- economy of the United States. For these rea- gress. sons, I have determined that it is necessary to maintain in force the broad authorities William J. Clinton necessary to apply economic pressure to the Government of the Federal Republic of The White House, Yugoslavia (Serbia and Montenegro) to re- May 25, 1993. duce its ability to support the continuing civil strife and bloodshed in the former Yugo- [Filed with the Office of the Federal Register, slavia. 10:33 a.m., May 25, 1993] William J. Clinton

NOTE: This notice was published in the Federal The White House, Register on May 26. May 25, 1993.

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Message to the Congress Reporting of FRY (S/M) Government property, this on the National Emergency With order prohibits transactions with respect to Respect to the Federal Republic of the FRY (S/M) involving imports, exports, Yugoslavia (Serbia and Montenegro) dealing in FRY-origin property, air and sea transportation, contract performance, funds May 25, 1993 transfers, activity promoting importation or exportation or dealings in property, and offi- To the Congress of the United States: cial sports, scientific, technical, or cultural On May 30, 1992, in Executive Order No. representation of the FRY (S/M) in the 12808, President Bush declared a national United States. emergency to deal with the threat to the na- Executive Order No. 12810 exempted tional security, foreign policy, and economy from trade restrictions (1) transshipments of the United States arising from actions and through the FRY (S/M), and (2) activities re- policies of the Governments of Serbia and lated to the United Nations Protection Force Montenegro, acting under the name of the (‘‘UNPROFOR’’), the Conference on Yugo- Socialist Federal Republic of Yugoslavia or slavia, or the European Community Monitor the Federal Republic of Yugoslavia, in their Mission. involvement in and support for groups at- On January 15, 1993, President Bush tempting to seize territory in Croatia and issued Executive Order No. 12831 to imple- Bosnia-Hercegovina by force and violence ment new sanctions contained in United Na- utilizing, in part, the forces of the so-called tions Security Council Resolution No. 787 of Yugoslav National Army (57 FR 23299, June November 16, 1992. The order revokes the 2, 1992). The present report is submitted exemption for transshipments through the pursuant to 50 U.S.C. 1641(c) and 1703(c). FRY (S/M) contained in Executive Order No. It discusses Administration actions and ex- 12810; prohibits transactions within the penses directly related to the exercise of United States or by a U.S. person relating powers and authorities conferred by the dec- to FRY (S/M) vessels and vessels in which laration of a national emergency in Executive a majority or controlling interest is held by Order No. 12808 and to expanded sanctions a person or entity in, or operating from, the against the Federal Republic of Yugoslavia FRY (S/M), and states that all such vessels (Serbia and Montenegro) (the ‘‘FRY (S/M)’’) shall be considered as vessels of the FRY (S/ contained in Executive Order No. 12810 of M), regardless of the flag under which they June 5, 1992 (57 FR 24347, June 9, 1992), sail. Executive Order No. 12831 also dele- Executive Order No. 12831 of January 15, gates discretionary authority to the Secretary 1993 (58 FR 5253, January 21, 1993), and of the Treasury, in consultation with the Sec- Executive Order No. 12846 of April 26, 1993 retary of State, to prohibit trade and financial (58 FR 25771, April 27, 1993). transactions involving any areas of the former 1. Executive Order No. 12808 blocked all Socialist Federal Republic of Yugoslavia as property and interests in property of the to which there is inadequate assurance that Governments of Serbia and Montenegro, or such transactions will not be diverted to the held in the name of the former Government benefit of the FRY (S/M). of the Socialist Federal Republic of Yugo- On April 26, 1993, I issued Executive slavia or the Government of the Federal Re- Order No. 12846 to implement in the United public of Yugoslavia, then or thereafter lo- States the sanctions adopted in United Na- cated in the United States or within the pos- tions Security Council Resolution No. 820 of session or control of U.S. persons, including April 17, 1993. That resolution called on the their overseas branches. Bosnian Serbs to accept the Vance-Owen Subsequently, Executive Order No. 12810 peace plan for Bosnia-Hercegovina and, if expanded U.S. actions to implement in the they failed to do so by April 26, called on United States the U.N. sanctions against the member states to take additional measures FRY (S/M) adopted in United Nations Secu- to tighten the embargo against the FRY (S/ rity Council Resolution No. 757 of May 30, M) and Serbian-controlled areas of Croatia 1992. In addition to reaffirming the blocking and Bosnia-Hercegovina.

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Effective 12:01 a.m. e.d.t., April 26, 1993, otherwise the sanctions apply notwithstand- Executive Order 12846: (1) blocks all prop- ing any preexisting contracts, international erty and interests in property of businesses agreements, licenses, or authorizations. organized or located in the FRY (S/M), in- 2. The declaration of the national emer- cluding the property of their U.S. and other gency on May 30, 1992, was made pursuant foreign subsidiaries, that are in or later come to the authority vested in the President by within the United States or the possession the Constitution and laws of the United or control of U.S. persons, including their States, including the International Emer- overseas branches; (2) confirms the charging gency Economic Powers Act (50 U.S.C. 1701 to the owners or operators of property et seq.), the National Emergencies Act (50 blocked under this order or Executive Orders U.S.C. 1601 et seq.), and section 301 of title No. 12808, No. 12810, or No. 12831 all ex- 3 of the United States Code. The emergency penses incident to the blocking and mainte- declaration was reported to the Congress on nance of such property, requires that such May 30, 1992, pursuant to section 204(b) of expenses be satisfied from sources other than the International Emergency Economic blocked funds, and permits such property to Powers Act (50 U.S.C. 1703(b)). The addi- be sold and the proceeds (after payment of tional sanctions set forth in Executive Orders expenses) placed in a blocked account; (3) No. 12810, No. 12831, and No. 12846 were orders (a) the detention pending investiga- imposed pursuant to the authority vested in tion of all nonblocked vessels, aircraft, freight the President by the Constitution and laws vehicles, rolling stock, and cargo within the of the United States, including the statutes United States suspected of violating United cited above, section 1114 of the Federal Nations Security Council Resolutions No. Aviation Act of 1958, as amended (49 U.S.C. 713, No. 757, No. 787, or No. 820, and (b) App. 1514), and section 5 of the United Na- the blocking of such conveyances or cargo tions Participation Act of 1945, as amended if a violation is determined to have been com- (22 U.S.C. 287c). mitted, and permits the liquidation of such 3. Since the last report, the Office of For- blocked conveyances or cargo and the plac- eign Assets Control of the Department of the ing of the proceeds into a blocked account; Treasury (‘‘FAC’’), in consultation with the (4) prohibits any vessel registered in the Department of State and other Federal agen- United States, or owned or controlled by U.S. cies, issued the Federal Republic of Yugo- persons, other than U.S. naval vessels, from slavia (Serbia and Montenegro) Sanctions entering the territorial waters of the FRY (S/ Regulations, 31 C.F.R. Part 585 (58 FR M); and (5) prohibits U.S. persons from en- 13199, March 10, 1993—the ‘‘Regulations’’), gaging in any transactions relating to the to implement the prohibitions contained in shipment of goods to, from, or through Executive Orders No. 12808, No. 12810, and United Nations Protected Areas in the Re- No. 12831. A copy of the Regulations is en- public of Croatia and areas in the Republic closed with this report. The seven general of Bosnia-Hercegovina under the control of licenses discussed in the last report were in- Bosnian Serb forces. corporated into the Regulations. The Regula- Executive Order No. 12846 authorizes the tions contain general licenses for certain Secretary of the Treasury in consultation transactions incident to: the receipt or trans- with the Secretary of State to take such ac- mission of mail and informational materials tions, and to employ all powers granted to and for telecommunications transmissions me by the authorities cited above, as may between the United States and the FRY (S/ be necessary to carry out the purposes of that M); the importation and exportation of diplo- order. The sanctions imposed in the order matic pouches; certain transfers of funds or do not invalidate existing licenses or author- other financial or economic resources for the izations issued pursuant to Executive Orders benefit of individuals located in the FRY (S/ No. 12808, No. 12810, or No. 12831 except M); the importation and exportation of as those licenses and authorizations may household and personal effects of persons ar- thereafter be terminated, suspended, or riving from or departing to the FRY (S/M); modified by the issuing Federal agencies, but transactions related to nonbusiness travel by

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U.S. persons to, from, and within the FRY Government of the FRY (S/M), and property (S/M); and transactions involving secondary- of entities organized or located in the FRY market trading in debt obligations originally (S/M), and thus to extend the applicability incurred by banks organized in Slovenia, of the regulatory prohibitions governing Croatia, Bosnia-Hercegovina, and Macedo- transactions with the Government of the nia. FRY (S/M) and its nationals by U.S. persons On January 15, 1993, FAC issued General to these designated individuals and entities Notice No. 2, entitled ‘‘Notification of Status wherever located, irrespective of nationality of Yugoslav Entities.’’ A copy of the notice or registration. U.S. persons are prohibited is attached. The list is composed of govern- from engaging in any transaction involving ment, financial, and commercial entities or- property in which an SDN has an interest, ganized in Serbia or Montenegro and a num- which includes all financial and trade trans- ber of foreign subsidiaries of such entities. actions. All SDN property within the jurisdic- The list is illustrative of entities covered by tion of the United States (including financial FAC’s presumption, stated in the notice, that assets in U.S. bank branches overseas) is all entities organized or located in Serbia or blocked. Montenegro, as well as their foreign The two court cases in which the blocking branches and subsidiaries, are controlled by authority was challenged as applied to FRY the Government of the FRY (S/M) and thus (S/M) subsidiaries and vessels in the United subject to the blocking provisions of the Ex- States remain pending at this time. In one ecutive orders. General Notice No. 2, which case, the plaintiffs have challenged the appli- includes more than 400 entities, expands and cation of Executive Order No. 12846, and incorporates the list of 284 entities identified the challenge remains to be resolved. The in General Notice No. 1 (57 FR 32051, July other case is presently pending before a U.S. 20, 1992), noted in the previous report. Court of Appeals. As part of a U.S.-led allied effort to tighten 4. Over the past 6 months, the Depart- economic sanctions against Yugoslavia, on ments of State and the Treasury have worked March 11, 1993, FAC named 25 maritime closely with European Community (the firms and 55 ships controlled by these firms ‘‘EC’’) member states and other U.N. mem- as ‘‘Specially Designated Nationals’’ ber nations to coordinate implementation of (‘‘SDNs’’) of Yugoslavia. A copy of General the sanctions against the FRY (S/M). This Notice No. 3 is attached. These shipping has included visits by assessment teams firms and the vessels they own, manage, or formed under the auspices of the United operate by using foreign front companies, States, the EC, and the Conference for Secu- changing vessel names, and reflagging ships, rity and Cooperation in Europe (the are presumed to be owned or controlled by ‘‘CSCE’’) to states bordering on Serbia and or to be acting on behalf of the Government Montenegro; deployment of CSCE sanctions of the FRY (S/M). In addition, pursuant to assistance missions (‘‘SAMS’’) to Albania, Executive Order No. 12846, the property Bulgaria, Croatia, the Former Yugoslav Re- within U.S. jurisdiction of these firms is public of Macedonia, Hungary, Romania, blocked as direct or indirect property inter- and Ukraine to assist in monitoring land and ests of firms organized or located in the FRY Danube River traffic; bilateral contacts be- (S/M). tween the United States and other countries The FRY (S/M) has continued to operate with the purpose of tightening financial and its maritime fleet and trade in violation of trade restrictions on the FRY (S/M); and es- the international economic sanctions man- tablishment of a mechanism to coordinate dated by United Nations Security Council enforcement efforts and to exchange tech- Resolutions No. 757 and No. 787. Operations nical information. and activities by Yugoslav front companies, 5. In accordance with licensing policy and or SDNs, enable the Government of the FRY the Regulations, FAC has exercised its au- (S/M) to circumvent the international trade thority to license certain specific transactions embargo. The effect of FAC’s SDN designa- with respect to the FRY (S/M) that are con- tion is to identify agents and property of the sistent with the Security Council sanctions.

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During the reporting period, FAC has issued tinue to be posted in their offices to ensure 163 specific licenses regarding transactions that banking records are appropriately safe- pertaining to the FRY (S/M) or assets it owns guarded. or controls, bringing the total as of April 30, During the past 6 months, U.S. financial 1993, to 426. Specific licenses have been institutions have continued to block funds issued for (1) payment to U.S. or third-coun- transfers in which there is an interest of the try secured creditors, under certain narrowly Government of the FRY (S/M). Such trans- defined circumstances, for pre-embargo im- fers have accounted for an additional $24.5 port and export transactions; (2) for legal rep- million in blocked Yugoslav assets since the resentation or advice to the Government of issuance of Executive Order No. 12808. the FRY (S/M) or FRY (S/M)-controlled cli- To ensure compliance with the terms of ents; (3) for restricted and closely monitored the licenses that have been issued under the operations by subsidiaries of FRY (S/M)-con- program, stringent reporting requirements trolled firms located in the United States; (4) are imposed. Some 350 submissions were re- for limited FRY (S/M) diplomatic represen- viewed since the last report, and more than tation in Washington and New York; (5) for 150 compliance cases are currently open. In patent, trademark and copyright protection, addition, licensed bank accounts are regu- and maintenance transactions in the FRY (S/ larly audited by FAC compliance personnel M) not involving payment to the FRY (S/M) and by cooperating auditors from other regu- Government; (6) for certain communications, latory agencies. news media, and travel-related transactions; 6. Since the issuance of Executive Order (7) for the payment of crews’ wages and ves- No. 12810, FAC has worked closely with the sel maintenance of FRY (S/M)-controlled U.S. Customs Service to ensure both that ships blocked in the United States; (8) for prohibited imports and exports (including the removal from the FRY (S/M) of manufac- those in which the Government of the FRY tured property owned and controlled by U.S. (S/M) has an interest) are identified and entities; and (9) to assist the United Nations interdicted, and that permitted imports and in its relief operations and the activities of exports move to their intended destination the U.N. Protection Force. Pursuant to without undue delay. Violations and sus- United Nations Security Council Resolutions pected violations of the embargo are being No. 757 and No. 760, specific licenses have investigated, and appropriate enforcement also been issued to authorize exportation of actions are being taken. There are currently food, medicine, and supplies intended for 39 cases under active investigation. humanitarian purposes in the FRY (S/M). 7. The expenses incurred by the Federal During the past 6 months, FAC has con- Government in the 6-month period from De- tinued to closely monitor 15 U.S. subsidiaries cember 1, 1992, through May 30, 1993, that of entities organized in the FRY (S/M) that are directly attributable to the authorities were blocked as entities owned or controlled conferred by the declaration of a national by the Government of the FRY (S/M). Treas- emergency with respect to the FRY (S/M) ury agents performed on-site audits and re- are estimated at $2.9 million, most of which viewed numerous reports submitted by the represent wage and salary costs for Federal blocked subsidiaries. Subsequent to the personnel. Personnel costs were largely cen- issuance of Executive Order No. 12846, op- tered in the Department of the Treasury erating licenses issued for U.S.-located Ser- (particularly in FAC and its Chief Counsel’s bian or Montenegrin subsidiaries or joint Office and the U.S. Customs Service), the ventures were revoked and the U.S. entities Department of State, the National Security closed for business. Council, the U.S. Coast Guard, and the De- The Board of Governors of the Federal partment of Commerce. Reserve Board and the New York State 8. The actions and policies of the Govern- Banking Department again worked closely ment of the FRY (S/M), in its involvement with FAC with regard to two Serbian banking in and support for groups attempting to seize institutions in New York that were closed on and hold territory in Croatia and Bosnia- June 1, 1992. Full-time bank examiners con- Hercegovina by force and violence, continue

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to pose an unusual and extraordinary threat ‘‘Robert Kiley and Don Pease have both to the national security, foreign policy, and had long and distinguished careers in public economy of the United States. The United service,’’ said the President. ‘‘They both will States remains committed to a multilateral make excellent additions to this important resolution of this crisis through its actions im- Board.’’ plementing the binding resolutions of the United Nations Security Council with re- NOTE: Biographies of the appointees were made spect to the FRY (S/M). I shall continue to available by the Office of the Press Secretary. exercise the powers at my disposal to apply economic sanctions against the FRY (S/M) as long as these measures are appropriate, and will continue to report periodically to the Announcement of Under Secretary Congress on significant developments pursu- of Commerce for Technology ant to 50 U.S.C. 1703(c). Administration May 25, 1993 William J. Clinton The President announced his intention The White House, today to nominate Dr. Mary Lowe Good, the May 25, 1993. senior vice president of Allied-Signal, Inc., to be Under Secretary of Commerce for Technology Administration. White House Statement on the ‘‘One of the central challenges that we face Situation in Guatemala in the 1990’s is making sure that our Nation’s May 25, 1993 technological capacities are developed as fully as possible,’’ said the President. ‘‘With The President was very disappointed to a distinguished record of commercial re- hear that President Serrano of Guatemala search and of involvement with national tech- has suspended the Congress and courts and nology policy, Dr. Good has what it takes to other democratic rights protected by the help ensure that Government does its part Guatemalan Constitution. This illegitimate to make that happen.’’ course of action threatens to place Guate- mala outside the democratic community of nations. We strongly condemn such efforts NOTE: A biography of the nominee was made to resolve Guatemala’s problems through available by the Office of the Press Secretary. nondemocratic means. We hope the Guate- malan leadership will reverse its course and immediately restore full constitutional de- Announcement of Ambassador to mocracy. Zambia May 25, 1993 Announcement for Posts at the The President today announced his inten- National Railroad Passenger tion to nominate Roland Karl Kuchel to be Corporation Ambassador to Zambia. Kuchel, a career for- eign service officer, is currently Assistant to May 25, 1993 the Director General of the Foreign Service. The President today appointed Robert ‘‘I am very glad to be making this nomina- Kiley, the former chairman of New York’s tion,’’ said the President. ‘‘Roland Kuchel has Metropolitan Transportation Authority, and had a long and accomplished career in the former Ohio Congressman Don Pease to the Foreign Service.’’ Board of Directors of the National Railroad Passenger Corporation (AMTRAK). The ap- NOTE: A biography of the nominee was made pointments are effective immediately. available by the Office of the Press Secretary.

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Remarks and an Exchange With thing, chapter and verse. So nothing was hid- Reporters Prior to a Meeting With den from the American people. It was all the Congressional Black Caucus given out. May 26, 1993 What has happened since then is—you know, there’s a lot of static and back-and- forth. And the President can’t go on tele- Budget Proposal vision every night for that length of time, but The President. Let me say, what I’m try- that is clear evidence that the more people ing to do is pass this program in the House. know about it the more likely they are to I do one step at a time. I think it’s clearly, support it. Just today I’m going to see some of all the things that have been presented, more of the business executives, who will pay the fairest program. It has significant budget more in this plan, who have supported this. cuts, reduces the size of the Federal Govern- Yesterday, Mr. Rostenkowski listed 50 major ment by 150,000, leaves some room for in- companies who are supporting the program. vestment, 74 percent of the tax is paid by We have small business people all over 6 percent of the people. It’s a fair program. America who are supporting the program, re- It will cost the average person a dollar a altors and others, consumer groups. So the month next year, $7 a month the year after, people who know more about the program, $15 a month the year after for a family. And the more you know about it the more likely it exempts people of incomes under $30,000. you are to be for it. It is a fair, balanced program. I’m going to Q. But isn’t energy the hangup? Mr. Presi- try and pass it. dent, isn’t energy the hangup? Q. Sir, what are you telling Members of The President. It is a big hangup. And Congress who are worried that they could we’re working—— lose their seats because of some of the tough- er elements of this package? The President. That all the evidence Senator Boren’s Proposal shows that the more people know about the Q. And how about Boren? Are you going details of the package, the more likely they to be able to work with him? are to support it. And that if it becomes a The President. Well, I hope so. We’re rhetorical battle where anyone says that it’s working through it. I think that it is now ap- tax-and-spend, well, who’s for that? Nobody’s parent to everyone that there are only two for that. But the American people are for plans on the table in the Senate and that ours bringing this deficit down. They are for in- is far fairer and better for the economy. I vesting in jobs and technology. They are for mean, the other plan reduces the tax for the a fairer tax system that asks everyone to pay oil interest in Oklahoma and elsewhere, but their fair share. And they are for a system it does it at the expense of putting a $40 that moves people from welfare to work. This billion burden on Social Security recipients program does all those things. It is a very and lower income working people just above good program. There is no evidence that the poverty line. It also would shift massive once people know the facts that they will do health costs away from the Government on that. to private employers and employees. I don’t Q. What are you going to do to make sure think they’re for that. So now that we’ve got they know the facts? Are you going to go an alternative out there, it shows you that on nationwide radio and TV before the our plan is sound and balanced. We’re just House votes? going to keep working at it. The President. I don’t know that that is possible or that it will be done before the House votes. But what I have told them is NOTE: The President spoke at 8:52 a.m. in the that the day that the people had the most Old Family Dining Room at the White House. detailed knowledge of this plan was February A tape was not available for verification of the 17th, because I went through the whole content of these remarks.

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Exchange With Reporters During a Announcement of White House Luncheon With Business Leaders Fellows May 26, 1993 May 26, 1993

White House Travel Office The President today appointed 17 men and women from a variety of backgrounds Q. [Inaudible]—members of your staff in and across the country to be the 1993–94 the Travel Office scandal? Is part of this in- class of White House fellows. quiry going to consider—going to be a White House fellows are a select group of chance of shakeups because of the event? men and women who spend a year early in The President. Well, I would like it on their career serving as paid assistants to the the record that one of the things they did President, Vice President, or Cabinet-level was to figure out how to save—how to do officials. This class will begin their fellowship the same work with less than half as many year in September. They were selected by people and save you 25 percent on your first a commission appointed earlier this month flight. I keep hoping I’ll read that somewhere by the President. It was chaired by Nancy in these accounts. I think that ought to be Bekavac, the president of Scripps College. accounted for. I was—the press complained to me repeatedly about being gouged by the ‘‘This is a group of people of exceptional White House Travel Office. I kept hearing abilities, strong motivation, and a commit- it everywhere. So we put it out on a competi- ment to serve their country,’’ said the Presi- tive bid and saved you 25 percent. dent. ‘‘I look forward to their service and am Now, if it wasn’t handled right, we’ll get confident they will join the successful ranks to the bottom of it, and we’ll straighten that of such White House fellowship alumni as out, and it will be handled right. That’s what General Colin Powell and Secretary Henry Mr. McLarty worked on yesterday. And we Cisneros.’’ will do what is appropriate, follow the ‘‘do- The individuals chosen for this year’s fel- right rule,’’ and go forward. I don’t have any- lowships are: thing else to say about it. Paul T. Anthony, Washington, DC Suzanne Rose Becker, Bolton, MA Ross Perot Christopher Frank Chyba, Ellicott City, Q. Mr. President, as you meet with these MD CEO’s, your—I put this in quotes—one of Jami Floyd, Oakland, CA your ‘‘favorite business guys,’’ Mr. Perot, has W. Scott Gould, Topsfield, MA been sniping at you again. He told David Kevin Vincent Grimes, Mountain View, Frost that you don’t have the background or CA the experience for the most difficult job in Suzan Denise Johnson Cook, Bronx, NY the world. How do you deal with this kind Michael Nathaniel Levy, Washington, DC of talk from him? Gaynor McCown, New York, NY The President. You deal with it. [Laugh- Barbara Paige, New York, NY ter] Raul Perea-Henze, New York, NY Q. He said you were doing things the Ar- Leslie Ramirez, Evans, GA kansas way. Maj. David Rhodes, USAF, Glendale, AZ The President. Well, we know he doesn’t Reginald L. Robinson, Lawrence, KS like my State. But he spent several million Martha E. Stark, Brooklyn, NY dollars to bad-mouth it last—and it doesn’t Todd Ulmer, San Francisco, CA have much to do with America. We’re going to just keep working. Maj. Roderick Von Lipsey, USMC, Phila- delphia, PA

NOTE: The exchange began at 12:25 p.m. in the Old Family Dining Room at the White House. NOTE: Biographies of the White House fellows A tape was not available for verification of the were made available by the Office of the Press content of this exchange. Secretary.

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Remarks in the ‘‘CBS This Morning’’ the cuts, we do it. And that’s what this Town Meeting amendment says. May 27, 1993 Ms. Zahn. What happens if you don’t get this through in the House today? Budget Proposal The President. We keep working until we get a budget through. The real problem is, Paula Zahn. Here comes President Clin- I think, that—there are two problems: One ton, cup of coffee in hand—decaf coffee. is that the details of the plan have been lost The President. Good morning. in the rhetoric; the second is that a lot of Ms. Zahn. We wanted to start off by talk- the Republicans who might otherwise want ing about the late night you kept last night. to vote with us got into a position where they Word of an agreement that was struck be- said they wouldn’t vote for any tax. tween Democratic leaders and conservative Over 60 percent of this money, of the tax members of your party on your economic money, over 60 percent comes from people plan. Do you think you now have the votes to carry this plan through in the House? with incomes over $200,000. Seventy-four The President. I think it will help. This percent of it comes from people with in- is an agreement that I have wanted for a long comes over $100,000, people whose taxes time, because I think that the people are en- went down in the eighties while their in- titled to know that if we pass these budget comes went up. People with incomes under cuts that they’re actually going to be made. $30,000 are protected even from the Btu tax. I’ve been concerned that someone who was And next year people in the middle will pay a Governor who came from a State with a about $1 a month, and it goes to $7 a month very tough balanced budget law, I’ve been and then about $15 a month. very concerned—can you hear me? Can we I think that a lot of—we have to get all start again? of our votes apparently from the Democrats Q. You have two mikes on you now, Mr. this time. I hope it won’t happen anymore. President. Ms. Zahn. No help from the Republicans? The President. There was an agreement The President. Well, with the Senate we made last night that I had been supporting might get some Republican votes. We’re for a good long while sponsored by the con- working on it. servative Democrats essentially to put a [At this point, the network took a commercial mechanism in the budget to force us every break.] year to make the budget cuts that we say we’re making in this 5-year budget. That is, Accomplishments obviously it’s very hard to predict what will Harry Smith. We are live in the Rose happen in every year for the next 5 years. Garden with over 200 people from many If you had to do a family budget for 5 years, States around the country, a couple of for- it might not be possible, or a business budget eign countries as well. We’re here with Presi- or a farm budget. dent Clinton. We thank you, first, for inviting So these numbers are as good as we can us in to do this town meeting. make them, but this amendment actually says I know you don’t pay attention to this sort that every year, if we miss the deficit reduc- of stuff: polls. You never pay attention prob- tion target, the President has to bring in a ably, right? The negatives are now higher plan to meet it and the Congress has to vote than the positives in the polls. And I want on it. And if they want to change it some, to tap into something here, because there’s they can, but we’ve got to meet the deficit a feeling in the country, and I think the peo- reduction target. ple here reflect it. I think people in America We have been working for days to get this want to see you succeed, but I just want to done. And finally, yesterday afternoon they see a raise of hands this morning, and don’t gave up. So I called the folks that had given be intimidated just because you’re in the up, and I said, go back to the table. We’ve Rose Garden. [Laughter] Do you feel like got to have some discipline in this budget, he could be doing a better job? Raise your so that if we tell people we’re going to make hand if you think so. Don’t be intimidated.

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Don’t be intimidated. There’s a lot of folks were laughing about this yesterday—is I’ll who feel that way. Do you feel like there’s bet you most people in this audience and been a gap between the promises of the cam- most people in this country have no earthly paign and the performance thus far? If you idea that we’re going to cut way over $200 think so, raise your hands. A lot of folks feel billion in spending off of this budget over that way. What went wrong? the next 5 years, because the people who nor- The President. First of all, I don’t know mally fight spending cuts supported it this that anything went wrong, except I’m glad time, and we rolled through the spending nobody found our about the manicure I got cuts without controversy. So the only con- in California. [Laughter] troversy is over whether we should raise any Ms. Zahn. Let’s check it out. taxes and from whom. The President. I’ll tell you what went Now, I think we’re doing pretty well, but wrong. What went wrong was I was not able I think we’ve done a lousy job of being able to keep the public focus on the issues that to cut through the fog that always surrounds we’re working on after I gave the State of this town and communicate that. I’ll admit the Union Address, even though that’s what that. we kept doing. Now, look, we’ve been here 4 months, and Public Perception look what’s happened in 4 months. And they Ms. Zahn. Why? Why have you had a give you a 4-year term. Look what’s hap- tough time doing that? pened in 4 months. We had a major foreign The President. Well, you tell me. I don’t policy challenge in Russia right after I got know. All I know is, I went to Cleveland the in office. If Yeltsin had gotten beat in Russia other day, and I talked to these four tele- and a militant regime had returned, we vision folks locally. And they said—I’ll just would have had to turn around with the de- lay it out—this guy said, ‘‘I was for you, but fense budget and a lot of bad things could I’m mad at you because since you’ve been have happened to America. The United in Washington, you’ve spent all your time on States went to work, organized the rest of Bosnia and gays in the military.’’ I said, ‘‘How the world, supported Yeltsin. He won the do you know that?’’ He said, ‘‘I watch the election. We’re back on track there making news every night.’’ [Laughter] And I said, this world a safer place. That’s my number ‘‘Well,’’ I said, ‘‘okay, let me tell you,’’ I said, one job. I think that’s pretty impressive. ‘‘I just did an analysis of what I did the first The Congress passed a resolution commit- 100 days. I spent 25 percent of my time on ting to do a budget that reduced the deficit foreign policy, all foreign policy, including by $500 billion on time for the first time in going to Canada to see Mr. Yeltsin. I have 17 years. Congress passed the family leave to. That’s my job. No one else can do that. bill they’ve been fooling around with for 8 I spent 40 percent of my office time and years to guarantee people some time off about 55 percent of my total time working without losing their jobs. They passed the on the economy and health care’’—let me motor voter bill they’ve been fooling around finish—‘‘and 20 percent of the time working with for years. No one now asks are we going on other domestic policies and seeing people to reduce the deficit. The question is how and doing that.’’ He said, ‘‘How much time much and how. No one now asks are we ever have you spent on gays in the military?’’ I going to do anything about health care. The said, ‘‘Two and a half hours.’’ He said, ‘‘I question is when and exactly what are we don’t believe that.’’ I said, ‘‘That’s the truth. going to do. I think that’s a pretty good You can look at the calendar.’’ record for 4 months. So all I’m saying is controversy gets news. Now, if you do a lot of things and you try And when we’re out here working on things to change a lot of things overnight, you may that aren’t controversial, it’s often not re- break some eggs, and it’s not an exact proc- ported in the news. And I have to find a way ess. And controversy always is better news— to do a better job of communicating directly you know that—than the lack of controversy. to the American people as well as—I’m not So one of the things that happened—we saying we haven’t made any mistakes. If you

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do a lot of things, you’re going to make some draw the Social Security, and what you do. mistakes. But the major failure since Feb- That’s a big, tough issue. I’m sorry it hap- ruary 17th is not being able to communicate pened. I still think Zoe Baird is a fine person directly what we are doing and answer di- who made, obviously, a mistake and paid for rectly the questions and the criticisms of the it. But thousands of other Americans have, American people. That’s been the major too. And I hope now we’re going to get it problem, and I’ve got to figure out how to cleaned up so people will follow the law and do it. the law will be reasonable. But I wound up with an awfully good Attorney General, and Selection of Attorney General I’m proud of her. Mr. Smith. You know what it is, though, [At this point, the network took a commercial I mean, given all of that stuff, motor voter, break.] budget, all that other stuff, on a day-by-day basis, a week barely goes by that there isn’t Ms. Zahn. We’re back in the Rose Garden some sort of story that it sounds like—and now for a 2-hour town meeting with Presi- I think people here would say, is the Presi- dent Clinton. We have your first question dent on sure footing? One, two, three dif- now from the audience. Where are you from? ferent choices for Attorney General. Flip- Q. I’m from Milwaukee, Wisconsin. I’m flop: We’re going to get tough on Bosnia, and a lab technician. then we’re not going to get tough on Bosnia. Ms. Zahn. Fire away. The President. You want to talk about— that’s what people—you can’t lob these Health Care Reform things out there. Q. Well, I think I’ll stay with my original Mr. Smith. We have 2 hours to talk about question. We’ve seen a lot of issues being all of this. We have 2 hours to talk about passed lately. We’ve seen some bills being all of this, but it seems like a day or a couple passed. But the bigger bills, the things that of days doesn’t go by when they’re putting dealt in the economy and jobs creation, along out fires in the White House. And people with that, especially this health care thing, want to know, do you have this thing under they look like they’re going to be destined control? to be locked up in gridlock. Is there some The President. Well, let me just mention way that we can be confident that things are the Attorney General thing. First of all, I going to happen in this country? think I’ve got a pretty good Attorney Gen- The President. I think you can be. Let eral, don’t you? me talk about—let’s just talk about health Mr. Smith. I think people would agree care. And I’d like to talk about health care with that. with this budget. A lot of Americans say to The President. And the country’s not— me what I say to myself every morning, and I think I did a good job. Secondly, if which is that after we cut all this spending you look at what happened there, one of the and raise this money and we reduce the defi- things that no one noticed is that I was the cit by $500 billion, it’s still going to be too first President since anybody could remem- big in 5 years because what’s driving the defi- ber that had every other member of his Cabi- cit now—defense is coming down, we’re net confirmed the day after I took office. So holding about everything else constant— there is another side to this story. That was what’s driving the deficit is the exploding a manifestation of confidence, getting them costs of health care, the same thing that’s all up and getting them all confirmed the hurting a lot of your businesses or maybe next day. That hadn’t happened in anyone’s your homes or if you buy individual policies. memory. In the last 4 months we’ve had hundreds We had some problems with the Attorney of people here working on this health care General thing, partly because the American task force that my wife is chairing. But we’ve people learned about an issue that we’re now also really worked hard to reach out to Re- moving to resolve, this whole business about publicans and Democrats and independents if you have household help, how you with- both in the Congress and around the country,

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people who provide health care, people who licize something like that and people don’t insure against health care, all those folks. know, for example, on my haircut, that I I think you’re going to see when we get asked whether anybody would be held up or this budget out of the way, which is the inconvenienced, and I was told no. I asked toughest thing—everybody wants to reduce twice, and I was told no. Now, I’d never do the deficit, but everybody’s got a different that, not in a hundred years, not ever. I idea about how to do it—when we get that mean, I wasn’t raised that way; I’ve never out of the way, I think you’ll see an honest lived that way. That’s not the kind of person debate on health care. Now, keep in mind I am. So, you know, if something like that this health care thing could be the most im- happens and it hurts me on a day-to-day portant thing we’ve done in a generation to basis, it may slow things up. provide security to working families and peo- But the real problem is, if these problems ple who don’t have it and people who have were easy, somebody else would have done to change their jobs. them. You try to face difficult things and ask When President Roosevelt and the Con- people to take difficult choices and make gress put in the Social Security system it took tough stands; it takes time. them 2 years to do it. We’re going to try to Ms. Zahn. President Clinton, I’m going do it in a year. We’re going to do our best to have to cut you off. Someone has to pay to do it in a year. And then, of course, we’ll for the show today. have to phase it in over time because of the [At this point, the network took a commercial cost, but I think we can do that. break.] I wouldn’t be too discouraged. What you’re seeing now, this fight over the budget Mr. Smith. We are back live in the Rose and the fight over the emergency jobs plan Garden, and we’ve had a couple of micro- earlier, is, I hope, the most partisan you will phone problems which we think we have ever see in this environment. I am doing ev- fixed now. What did you just say? erything I can to ask the Republicans to help, The President. I said if you were a politi- to ask people from outside to come in, to cian and all these mikes went out, they’d say, open up the process. I hate all this. I mean, are you a failed network, are you a failed I didn’t run for President to get up and fight newscaster? [Laughter] with the Republicans every day. It doesn’t Ms. Zahn. They will be saying that maybe help America, and I don’t want to do it. And in a half hour from now. I believe you will see a much more open The President. It’s just one of those process when the health care debate starts. things. Something always goes wrong. Now, that’s not to say everybody is going to agree with me. They shouldn’t. But I be- White House Travel Office lieve there’s a real chance we’ll get health Mr. Smith. You know what, we need to care reform, and it will come with bipartisan talk about this: Travelgate. Who knew what, support from around the country and within when, and why was the FBI called in, and the Congress. why did you hire your cousin, and why did you have a firm from Arkansas take over this President’s Haircut business? Ms. Zahn. But the fact is you’ve also had The President. First of all, let’s get back to do a lot of fighting with Democrats of your to the beginning, okay? Let’s talk about my own party. And I think a lot of people were cousin. She’s about my fifth or sixth cousin hoping, with a Democratic President and a who worked in the campaign and ran the Democratic Congress, that things would have travel operations. We had a very efficient gone more smoothly. Do you think issues like travel operation. the haircut and the problems in the Travel Every operation at the White House was Office have made it harder for you to get reviewed, because I said I was going to cut this economic plan through? the White House staff by 25 percent. That’s The President. No. I think this economic not easy to do, to run the White House on plan is—I think it does because if you pub- fewer people than your predecessor. We got

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more mail in 31⁄2 months than came to the Ms. Zahn. Was Attorney General Reno White House in all of 1992. It’s tough. justified in questioning the process? We found out that there were seven peo- The President. She can question what- ple working in the Travel Office, primarily ever she wants to, I think. She’s a fine person. to book travel for the press, and that the I like her. But I’m just saying, to the best press was complaining that the cost was too of my knowledge, there has never been a pol- high. So there were all these recommenda- icy that the White House, if they had some tions made to change it. But nothing was internal activity going on here, would clear done until an accounting firm came in and asking the FBI to look into it through the reviewed the operation and found serious Attorney General. But I have no problem management questions in terms of unac- with doing it. That’s not—with me or any- counted-for funds and things like that. So body else—was that the policy before to the then the person in charge of that made the best of my knowledge. decision to replace them. Mr. Smith. But at minimum, it looks like Now, all those questions were raised about you used the FBI to justify what in turn whether they all should have been replaced. ended up looking like what was, in fact, an Mr. McLarty got on it. He did an internal act of cronyism. review. He’ll fix it. But the issue is: Should The President. No. It may look like that, we work seven people when three can do but the bottom line: It wasn’t an act of crony- the job? And if we saved 25 percent off the ism. The bottom line is if we can run an office cost of the very first plane flight, isn’t that with three that they were taking seven to run, a good thing for the press? That’s what we’re and we can save 25 percent off a trip because trying to do. we have competitive bidding when they Mr. Smith. And nobody’s going to argue didn’t have competitive bidding, the press with that. But what they are going to argue saves money and the taxpayers save money. with is why was the FBI called in? That was my only objection. If anything The President. Oh, the FBI, because— wrong was done, Mr. McLarty will correct the FBI was called in to look at the auditor’s it. This is a do-right deal not a do-wrong deal. report, not to accuse any of these people of Let’s not obscure what happened. We were doing anything criminal but because there trying to do the people’s work with less were sufficient questions raised that there money. had to be a review of it. And the FBI sounds Mr. Smith. Do you have a question? like a huge deal to you, but when you’re in Q. Yes, I do. Washington and you’re the President, you Mr. Smith. Your name is? can’t call the local police or the local prosecu- tor; that’s who you call. Mining Reform Legislation Ms. Zahn. But even your own Attorney Q. I’m from Redwood City, California. I General is now posing the question about a was a Clinton precinct leader in that State, breach of policy. Is she right or wrong? and I’m very happy to see you elected. My The President. Well, to the best of our question, however, is regarding the environ- ability to determine it, there has never been ment. I supported you in spite of the issue a policy that if the White House had a local that—was one of the major producers of jobs internal matter, they had to go through the in your State. It’s also the major producer Attorney General to get to the FBI. The of pollution in your State. And I supported FBI’s always been an independent investiga- you in hope that Al Gore would work on con- tive agency. But I have no problem with vincing you to be more of an environmental doing that, because I trust her. I think she’s President than George Bush was. However, got great judgment. I noticed that you recently backed down But the report in the auditor’s findings when it came to upping the user fees on min- made us believe that someone at least ought ing, grazing, and lumber. This is in spite of to look into this and clear the air. And that’s the fact that mining, I believe, is fixed at like all we were trying to do. under a dollar an acre to mine. This dates

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upon a post-Civil-War law, but you’ve not enced people. There has been talk that upped it. I understand that you—— maybe there are going to be some major The President. Let me ask you—— shakeups over the next couple of days. Are Q. ——$17 billion to the budget. you entirely satisfied with the White House The President. Okay. No, no. There staff you have in place? wasn’t $17 billion, I don’t think. Do you all The President. No, but they’re working know what he’s talking about? The Federal hard and we’ve gotten a lot done. I’m glad Government owns land—that’s a very good I got to talk about that. I think there are question. I’m glad you asked it. The Federal always going to be—you can’t—this is the Government owns a lot of land on which hardest place in the country to work in some there are trees, cattle, and minerals to be ways. And I think that we’ve had a period— mined. Most people believe, and it’s abso- you know, we came in, most of us were not lutely true, that essentially people have been from here, we were trying to do things dif- permitted to use that land, mostly out west, ferently. And there are a lot of things that to cut trees, graze cattle, and mine minerals we didn’t handle as well as could have been at lower than a market rate. Now, all the peo- handled. This Travel Office is one. What we ple who do that have good reasons why they were trying to do was good for the country think the system is good, and I don’t know and good for the taxpayers. And there were if we’ve got any of those folks in the audi- glitches in it. We are going to fix that. But ence, but I feel that the mining fees should I think that by and large, we’ll—— be raised. Ms. Zahn. Are you going to fix that by Originally we had, originally—he’s right— firing people? we had that in our original budget. And we The President. We have a—well, just took it out not to take a dive on it but be- watch and see what we do. We’re going cause, since it’s a new issue under the par- to—— liamentary rules of the Senate, we’d be sub- Ms. Zahn. No hints? ject to a filibuster. That is, you have to get The President. 60 votes, not a majority to pass the budget. No hints. So we are moving now a new mining re- But I would also say that I wonder whether form law through the Congress which will people think the staff is younger than it is. do exactly what you say. We just had to agree I mean, you have the head of my economic to do it on a separate track. The mining re- team, Bob Rubin, is in his fifties and was form is on track. I believe this year I will one of the most successful people on Wall sign a mining reform law which you will be Street. Our major senior staff I think, on bal- very proud of, which will require those com- ance, is slightly older than President Ken- panies to pay back to the Treasury more nedy’s was. But there are a lot of young peo- nearly the value of what they have gotten ple in other positions here. And sometimes from the United States Government, and it I think that the overall impression is that the will be good for the environment. staff is quite a bit younger than it is in terms It’s a good question. It’s going through on of people that are actually making decisions. a separate track, and we had to break it out for parliamentary reasons because of the op- Urban Youth position to it in the Senate. Q. One of the big things about your cam- [At this point, the network took a commercial paign was hope for the future and don’t stop break.] thinking about tomorrow. My question is about the children in the country, especially White House Staff in the inner cities. It seems like they’ve kind Ms. Zahn. We’re back in the Rose Garden of lost hope, and it seems like they don’t have live with a 2-hour town meeting with Presi- a future. And I’m wondering what we can dent Clinton. Before we get back to our audi- do as a country to instill that back into them. ence, a quick question to you about staff. The President. I think there are some There has been a lot of criticism that you’ve things that I can do as President, but there surrounded yourself by young and inexperi- are also some things that are going to have

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to be done community by community and good kids. They just need a chance to make block by block. it. Let me talk about the things I can do first. [At this point, the network took a commercial My job, I think, for those kids is to try to break] do as much as I can to make sure they’ve got a fair chance to make it under difficult Ms. Zahn. From the Rose Garden we con- circumstances. What does that mean? That tinue our conversation, our town hall meet- they have a healthy beginning, get a good ing with President Clinton right now. I chance to get a Head Start program and de- thought I’d give the folks that have been star- cent nutrition, that their schools are as good ing at our backsides all morning a chance as we can influence them, that their to ask you a question. streetsare safer, that they have a chance to Sir, your question. work when they’re young, at least with sum- mer jobs, and that there’s some economic op- Law Enforcement portunity there. We have presented initiatives in all this Q. My question to you is in regards to a area. We’re going to have more police on law enforcement issue in this country. We’re the street, more investment in Head Start, well aware of the position of the previous and a dramatic increase in incentives for administration in regards to the support of business to invest in those areas. law enforcement. My question deals with the But frankly, I think also, we have to say fact that I heard you mention earlier about to those kids, the only way you can make trying to get additional police officers, it is if you play by the rules. And we know 100,000 and so forth. We in this city, I be- it’s tougher where there aren’t as many intact lieve, couple of weeks ago, went to the Hill families. We know it’s tougher where there’s to try to get additional funding to keep sev- more violence. But we’ve got to have more eral segments of our police department run- people go in and deal with those kids one- ning, mainly one of which is the helicopter on-one. A friend of mine said the other day— unit, which provides a lot of support service someone asked, ‘‘How are we going to rescue for the ground police officers and the Secret all these kids?’’ And she said, ‘‘The same way Service and ATF. And they were turned we lost them, one at a time.’’ down for, I think it was like $2 million or And we’ve got to have more people inter- something. At any rate, my question to you ested in these people as people. I’m telling is, dealing with Congress, which it seems you. I just got back from south central LA. they have a problem of partisanism now, like Those kids aren’t all that different from ev- I say, as far as—— erybody else’s kids. They just want a chance The President. Well, let me explain. First to live. And if we can give it to them with of all, let’s talk about the bigger issue here, more personal involvement, I think they can that this gentleman is an example of a major make it. national problem. Thirty-five years ago, there Mr. Smith. When you talk about one-on- were three policemen in America for every one, are you talking about a giant volunteer serious crime. Today, there are three crimes corps or are you talking about some kind of for every police officer. And a lot of cities system that’s going to cost more money to have had to reduce hiring of police officers do it? with budget problems they’ve got. So one of The President. No, I’m talking about—— the things I said in the election was I would Mr. Smith. In 30 seconds. try to find a way to put 100,000 more police The President. I’m talking about—the officers on the street over the next 4 years. money should be going to the things I men- There’s a bill moving through Congress tioned. What we need is for people in each right now which makes a down payment on of these communities to be involved with that, and the House passed it late last night. those kids. I can’t do that. We need people If the Senate passes it, and I think they will in these communities sponsoring schools, in- this time, it’s a smaller bill, but it will permit volved in the schools, working with those kids us to hire another 15,000 or so police officers. after school and on the weekends. They’re And that will start the down payment. And

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I’m going to support the crime bill, which Ms. Zahn. Harry’s working the other side includes the Brady bill, to require people to of the audience over there. wait so we can check their criminal back- Mr. Smith. We’ve got a 1-minute ques- ground before they buy handguns. It will also tion. have more police officers on it. We’re going to give people coming out of Immigration the military incentives to go into police work. Q. I’m from southern California, and there We’re going to give young people the oppor- we have a lot of problem with immigration. tunity to pay off part of their college loan I kind of have a question for you. Idealisti- by being police officers for a while. So I think cally, I feel that America should let as many we can get this 100,000 figure. And you will people in as we can. But in our State it’s be helped by that. But this bill that’s going really taking a toll on Medicare, et cetera, through now should help DC and all the et cetera. States, because it provides funds specifically The President. Absolutely. You’re from for those who want to rehire people who have California, you know that—— been laid off as well as hire new police offi- Mr. Smith. Thirty seconds left. cers. And that should help a lot. The President. Quick answer. The Nation does not enforce its immigration laws. We Abortion should let immigrants come in. It makes us Q. Good morning. I’d like to know, is abor- a stronger country. But we can’t let every- tion going to be covered under the new body in overnight. We should attempt to en- health care plan? force the laws more rigorously. And when The President. I don’t think a decision California, Texas, Florida, New York, and has been made about that. Let me tell you other States pay a disproportionate burden, what the problem is. The Congress has his- the National Government ought to help them torically not permitted public funds to be more. We changed the rules to help Califor- spent for abortion, except to save the life of nia more, because it’s not fair for you to pay the mother. Most private health insurance for what the National Government does or plans permit some broader coverage for doesn’t do. abortion for people who are covered. [At this point, the network took a commercial So what the health care task force is trying break.] to resolve is how to at least provide for the position that we shouldn’t—in solving the na- China tional health crisis, we shouldn’t take away Q. I’m from Tarzana, California. I’ve been from people some right they now have in going to China since 1980, seven or eight their health insurance plans. And that’s what times. I’ve lived and worked in China for 2 they’re trying to work through now. And I’m years. I’m very concerned about what you’re not sure exactly where they’re going to wind going to do with the—— up, but I think they’re going to try to wind Mr. Smith. Most-favored-nation—— up in a way that either does that or at least Q. ——most-favored-nation. On the one makes it possible that that can be done. hand, if you don’t give them this, you feel That’s the dilemma here. that you’ll pressure the government into Ms. Zahn. You mean the continuation changing their attitude. On the other hand, of—— the people don’t want that to happen because The President. That gives people the they feel that they will be hurt financially. right to at least access what they’ve got now And then when they’re hurt economically in their health insurance plan, if they’re pri- and financially, then they’ll get less rights and vate citizens and they get that, as a result privileges. of this change we’ve got, because what we’re Mr. Smith. Is this a done deal, your deci- trying to do is not run this money for the sion on this? uninsured through the Government anyway. The President. I think it is a done deal We want it to be operating outside the Gov- for the next year. Let me explain the issue ernment and the taxpayers. here. In order for a country to trade with

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us, they have to get what’s called most-fa- Statehood for the District of Columbia vored-nation status in order to have big trade. Q. My question basically is, can you ex- China is a huge trading partner of ours, I press to the American people why it is impor- think now our second biggest trading deficit, tant for the District of Columbia to have with China just behind Japan. They’ve got statehood, to have the opportunity to vote one of the fastest growing economies in the for two Senators and Members of Congress? world. They’re moving away from com- The President. Well, I think, frankly, I munism to market economics very quickly. think having the Senators and the Members They still put political prisoners in jail. They of Congress is not as important as having con- still, we think, have used prison labor to make trol over your own destiny. The District of products, and we have some other problems Columbia now has more people than 5 other with them. States, pays more taxes than 10 other States, The issue is should we revoke that or and sent more soldiers to fight in the Persian should we put conditions on it. I basically Gulf war than 20 other States. And yet, every have decided to extend most-favored-nation time they turn around, Congress can over- status for a year because I want to support turn anything they do through their elected modernization in China, and it’s a great op- officials. portunity for America there. But I want to If they became a State, yes, it’s true, they make it clear to them that there has to be would get two Senators and a Member of some progress on human rights and the use Congress, just like the other small States. But of prison labor. Our trade disputes and our the main thing is they would have more con- disputes about arms sales I’m going to take trol over their own destiny. It’s very frustrat- out of this issue and negotiate directly with ing for the people in the District to know them. I think they will appreciate the gesture that Congress can do or not do anything, just I’m making, but I hope they understand that like this fellow said here, that they can say, the United States just can’t turn its back on ‘‘No, you can’t have $2 million for police.’’ the abuse of lots of people and especially the And they can’t do it on their own because use of prison labor and just choking people they don’t have the independence. So that’s off when they say their piece. why I’ve always supported statehood. Once Q. I’m from Troy, Michigan. My question, I saw the facts about the size, the taxes, and Mr. President, when you wake up in the the contribution to the national interest, I morning, before you get out of bed, do you thought they ought to have the right to be lie there and think what stupid little thing independent. is going to happen today? [Laughter] Mr. Smith. We need to take a break. We’ll The President. Some days I do. What I come back with more live from the Rose Gar- really think of is stupid little things happen den. to everybody, and I just hope that if some [At this point, the network took a commercial stupid little thing happens to me, it won’t break.] overshadow all the big good things I’m trying Mr. Smith. We are live at the White to do. House Rose Garden with President Clinton, But actually, when I get up in the morning, the first national network town meeting since I say a little prayer that I won’t make any you were elected. We appreciate you letting stupid little mistakes and that I’ll do right us come in here. We’ve got lots of questions by America today. That’s what I do. Then from more than 200 people in the audience. I go out here and run off old age. I do my Paula. best to do that. Ms. Zahn. And this man’s been braving Mr. Smith. Here we go, Mr. President. very patiently for the last hour. Please stand, Q. Good morning, Mr. President. I’m and you can fire away. president of the Bloomingdale Civic Associa- tion in Washington, and you’re welcome to President’s Haircut come to our community at any time. Q. I’m from Montana. I work for the Rural The President. Thank you. I’d like that. Electric. And my question for you is: With

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all the troubles in the world going on now, back my student loans, as well as the many how do you like being on the bubble with colleagues that have a similar situation as I your haircut? do. The President. I just learn to live with Mr. Smith. The fear being that doctors it. I think you’ve got to learn to laugh at aren’t going to make as much money and for things like that. You know, when little things folks like this they aren’t going to be able get made big, and big things get made little, to pay the bills, right? you know, and you make a boner—I mean, The President. First of all—don’t sit I really—I told you the truth earlier. I was down yet, I want to look at you—only about really trying to avoid inconveniencing people, 15 percent of our medical school graduates not trying to inconvenience people. It just are now doing what this fine woman is doing, winds out being embarrassing when some- coming out as family practitioners. Most thing like that happens to you. And you just medical school graduates now want to be have to laugh it off and go on. If you didn’t specialists partly because they want to do it, have a sense of humor in this business, you’d partly because they can have more control be ground down to nothing pretty quick. over their hours, partly because they can Ms. Zahn. Earlier this morning, President make more money. What we are going to Clinton, you said that you would ask your do is try to create more incentives for people aides on the plane whether the haircut was to go into family practice: easier to pay off going to cause any delays or not, and they your loans, have Government-targeted assist- said no. There’s a piece in the Wall Street ance to medical school to lower the cost of Journal—— medical education, give you more opportuni- The President. The Secret Service said ties to be in family practice course, to bring no. down the cost of your debt. And I don’t think Ms. Zahn. The Wall Street Journal is sug- that your income will be constricted. I think gesting that maybe the staff members don’t there will be more reliance on family prac- have enough of a spine to stand up to you. tice, and we’re going to have to do more in Can you comment on that report? primary preventative medicine in America if The President. Oh, no. The Secret Serv- we’re ever going to bring the cost of health ice asked, and they were told that there care down. would be no delays. It was just a mess-up. Ms. Zahn. I have another health care re- I mean, it was just a mess-up. But it’s just lated question for you from back here. not—— Q. Thanks. I’m from Springfield, Missouri. Ms. Zahn. Do you wish you hadn’t gotten I’m glad to hear that answer because one of that haircut? my children is in medical school and going The President. Yeah. I mean, look, I wear into family health care. a $40 watch. Do I look like the kind of guy The President. That’s great. that would go and sit on an airport—you Q. I work for a company that has less than know, I mean, it was just a blow-up. I’m glad 500 employees. I pay $50 a month for a they didn’t find out about the manicure. health plan, a dental plan, life insurance. Our [Laughter] health plan is self-insured. I don’t want to pay more money for health care individually. Health Care Reform I’m concerned that my employer may be Q. Good morning, Mr. President. I am taxed and have to pay more money, and I from East Dubuque, Illinois. Tomorrow I’m would receive less benefits than I am receiv- graduating from medical school and will be ing, as well as I want to keep my self-funded going into—— health plan. How would the change in health The President. Congratulations. care affect me as an individual? Q. Thanks—residency training and family The President. Well, let me say first of practice. I am graduating with over $100,000 all, one of the decisions that has not been in student loans for medical school alone. I finalized yet, at least in our original report, am wondering how you anticipate the health is to what extent any companies of any size care reform will help me to be able to pay should be able to, in effect, continue their

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self-insurance efforts. And that’s a tough economy. My vision is that we will set in mo- issue because what we’re trying to do is get tion market forces—with a little bit of Gov- these pools of insurance big enough for small ernment support but not a lot—mostly mar- business to have affordable health care be- ket forces, which will enable us to resume cause that’s been a back-breaker for a lot of a vigorous homebuilding sector in the Amer- small businesses. ican economy. And let me just mention some The requirement that they’re working on of the things that are important to that. in terms of financial contribution would not The most important thing is to pass a defi- be a tax over and above what people are pay- cit reduction plan that keeps interest rates ing now. They’re trying to hit the national down. Interest rates, mortgage rates now are average, maybe even a little below the na- about a 20-year low. Last year, only 47 per- tional average of what employers are paying cent of people under 35 thought they were now. And many, many employers and em- going to be able to own their own homes. ployees in this country will actually save This year, about 74 percent do. That’s be- money if the health care plan comes into ef- cause interest rates are down, because we’re fect. trying to bring the deficit down first. But if you have a national budget, you have Second, I think the low income housing to have some sort of national standard for credits, tax credits, should be extended. what the contribution will be by employers, That’s in our tax bill, to give people incen- but it’s not going to be over and above what tives to build houses in inner cities. people are paying now. They’re trying to sub- The third thing we need to do is to move stitute for it, and they’re trying to work out aggressively in areas where credit is not avail- what that number is now. To your point of able to break the credit crunch. And the Gov- view, if you have a low-cost self-insurance ernment’s working hard on that. There are plan, what we’re going to try to do is to make all kinds of sectors of our country that have sure that the people with low-cost plans and had a huge dry-up of credit because of the generous coverage don’t have less coverage collapse of the S&L’s and because of regional and higher cost. That’s not what we’re trying recessions. And we’re trying to break that. to do. What we’re trying to do is to broaden And finally, we have a Secretary of Hous- the coverage. ing and Urban Development in Henry Mr. Smith. Fifteen minutes after the Cisneros, the former Mayor of San Antonio, hour. We need to take a break. We’ll come Texas, who has got a wonderful raft of ideas back live to the Rose Garden, right after this. about how to go into community after com- The President. And lower the cost—I’m munity and set up partnerships in rural and sorry, I didn’t say. urban areas to get people to build more [At this point, the network took a commercial houses. So that’s basically what we’re trying break.] to do. The dream of homeownership, and frankly, the importance to the economy are Mr. Smith. It’s about a perfect day in two things that can merge as part of my vision Washington, DC. I think the President is for rebuilding our country from the grass- probably hoping it’s just as nice up the street roots up. a little bit in the Congress. But we’ve got Ms. Zahn. President Clinton, we only have lots of questions from our audience. Go a couple of more minutes before we have ahead. to take another break. Another quick ques- Affordable Housing tion for you from over here. Q. Mr. President, I’m an architect from Seattle, Washington. And the question I’d Public Perception like to ask you is what vision do you and your Q. I’m a finance manager from San Jose, administration have for the revitalization of California. My perception is that your admin- housing, both in the urban areas and the istration is a little infatuated with Hollywood rural areas? and celebrities. Is this a valid observation? The President. I think the housing econ- The President. No. You know, all these omy, first of all, is a big part of our overall politicians from here run out to Hollywood

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and have fundraisers all the time. Do you right. And we haven’t been very smart about know how many fundraisers I had there be- that on a couple of these occasions. But that fore I ran for President? Zero. We’ve had doesn’t mean—— two meetings here in the While House where Ms. Zahn. Whose fault was that? groups of people from Hollywood have want- The President. It means that we have un- ed to come in and talk about health care and derestimated the fact that the press will play the environment. We’ve had a couple of peo- these things big and people will draw those ple from California who have stayed in the conclusions from it. But she asked me a sub- Governor’s mansion. When my preacher stantive question, not an image question. She from Arkansas stayed here, nobody wrote it said, has the administration gone Hollywood? up. When the guy who ran my campaign in The answer to that is, no, heck no, never, Florida stayed here last week, nobody wrote no. Never, Never. [Laughter] That’s a sub- it up. It’s another thing where a little thing stantive answer. becomes big because it makes a good story. Ms. Zahn. I think the answer is no. It doesn’t amount to a hill of beans. There Mr. Smith. We’ve got lots more to come are some people in Hollywood who helped live from the White House Rose Garden with me, who care about the country. I treat them President Clinton. We’ve got questions about like I do everybody else that was part of the defense cuts and what happens to the people campaign and want to be part of it. who are going to lose their jobs as the de- But that is absolutely not true. It is not fense gets cut. And we’re going to come back true now, it’s not going to be true, and it’s and get answers to those questions in just never been true. I like to go to the movies a minute. and listen to music. Most of you do, too. And [At this point, the network took a commercial that’s about the extent of it. break.] Ms. Zahn. Are you concerned, though, that when these little stories that you say just Entitlement Programs simply blow up—— Ms. Zahn. Welcome back to ‘‘CBS This The President. Absolutely. Abso- Morning’’ and our special 2-hour meeting lutely—— with President Clinton. We just had to go Ms. Zahn. Let me just ask you this—that into a break, and we were talking about the people who voted for you in the election and notion of entitlements for this man back bought into this image of the man from Hope here. And his essential question was, with en- and that maybe stories like the $200 haircut titlements representing about at least 50 per- with a guy who has one name might increase cent of our budget, when is the Government their cynicism about what’s going on in your going to get serious about cutting into these administration. programs? Did I paraphrase that correctly? The President. Sure it does. Sure it does, The President. We have in this budget which is one reason they’re so overplayed. package that I have presented to the Con- But that doesn’t mean they’re valid. What gress, we have about $100 billion in cuts in I keep telling everybody here is, we have to various entitlement programs over the next realize when you’re President, you’re a long 5 years in Medicare, in agriculture, in veter- way from most people in America, and so ans programs. But they’re still going up very little things become big. So you have to bend rapidly. The only way ultimately to get con- over backwards not to do things that you’d trol of the entitlements is to control overall never even give a second thought to if you health costs and bring them in line with infla- were a private citizen or a Governor or a Sen- tion. For example, we could cut health care ator because they’re going to be taken and costs even more, but here’s what would hap- blown all out of proportion and your whole pen. If you cut Medicare and Medicaid and image is going to be gnarled by it. So we you cut what the providers get, the doctors have to be super sensitive not to do things and the hospitals, what do they do? They that we would ordinarily do and not give a shift their costs off to you in the private sec- second about it because of the way it will tor. That’s been happening for years now. be perceived in the country. That’s absolutely People who have no health insurance get

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health care in this country. People whose In the aerospace industry, I am convinced health care is underfunded get health care that the real key there is to try to have a anyway. And the cost gets shifted onto pri- competitive airline industry in America that’s vate employers and their employees in the healthy and try to make sure the airline man- form of exploding health insurance pre- ufacturers, the airplane manufacturers and miums. So health care cost in the private sec- the parts manufacturers, have access to mar- tor as a whole are going up as fast or faster kets at home and abroad. The Commerce than health care costs in the Government Secretary, Ron Brown, has just been around sector. And the trick is how to get them the world doing what he can to open up more under control without messing up the pro- markets for aerospace commercially. We can- grams, like the gentleman over here who has not afford to lose our world leadership there got a good program where they have control just because we’re cutting back in defense. of their own costs. That’s the trick. But Aerospace is one of seven areas of technology you’ve got to deal with the private and the that will produce most of the high-wage, public to do that. high-growth jobs for the world in the next 20 years, and we’ve got to try to maintain Aerospace Industry our leadership. I just appointed a commis- Q. The aerospace community is being as- sion, along with the Congress, completely bi- sailed by the Europeans on the commercial partisan on this issue, to look at ways to revi- side, and in some respects the defense budg- talize aerospace, and I think we’re going to et will assail them on the defense budget make some progress. side. A combination of those two are making aerospace employment a very delicate issue, Gays in the Military a lot of unemployment, a lot of people with- Q. Mr. President, I’m the senior pastor at out jobs. How do you think the new defense Christ Chapel in Woodbridge, Virginia. And budget will address that as part of their pro- I would like to say that we in the Woodbridge gram? area pray for you and your administration The President. First of all, I want to an- regularly and daily. swer your question, but I want to make a The President. Thank you. point since you stood up here, and I appre- Q. And allow me to ask the question, give ciate it. you 2 minutes in the 2 hours and 31 minutes There are budget cuts and budget cuts. to talk about the issue of gays in the military, Everybody knows we have to bring the de- if I may. I’m concerned about the degrada- fense budget down. And we have cut it a tion of morality in our Nation and our soci- lot. We are right on the edge. We should ety, in the military as a whole, and I’m con- not cut it more right now. I feel very strongly cerned with the long-term consequences of about that. A lot of the defense cuts are in actions, not only on the issue with gays in areas of contracts where people work in the military but also with actions associated America. The question is what are they going with health care in terms of the funding of to do when you lay them off? Why is south- abortion, issues such as that. The Christian ern California in so much trouble? Largely community is very concerned in this Nation because of all the defense cuts, with no plans about those issues. And I’m somewhat dis- to find anything else. We believe very strong- turbed, particularly, about the policy process ly, in this administration, and I personally be- for developing these programs. lieve, based on my experience as a Governor The President. Let’s just talk about the trying to put people back to work, that a por- gays in the military, because we don’t have tion of the defense cuts should be devoted a lot of time to go into all of it. to three things: one, retraining workers if First of all, I think the military has a great they need retraining; two, helping companies moral fabric. I don’t think you can over— to develop domestic markets to make up for we know there are homosexuals in the mili- the defense contracts they lost; and three, tary and always have been. We know that helping communities that have been dev- the Tailhook scandal occurred. I don’t think astated to restructure their economies. Tailhook reflects on the whole Navy. I think

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the military has done more to give people if they behave properly without the Govern- a good, coherent set of values and a way to ment appearing to endorse a lifestyle. I think live and succeed in a very complicated and that’s what you’re concerned about, and it’s disintegrating world than most of the institu- a legitimate concern. But I have to deal with tions in this country have. So I think that people as people. And I’ve had so many peo- you should not worry about that. ple in the military come up to me and say Here is the issue: There are and always that they have served with homosexuals who have been homosexuals in the military. The served bravely in Vietnam and other places, question is whether they should be kicked who were good people, who did not violate out, not because of what they do but because any rules. It is them that I am trying to pro- of who they are. My view is people should tect. be judged on their conduct. I have not called Ms. Zahn. President Clinton, thank you for any change in the Uniform Code of Con- very much. We’re going to take a short break duct. I simply believe if people work hard, here and be back in just a couple of minutes. play by the rules, and serve, they ought to Lots more to come on ‘‘CBS This Morning.’’ be able to serve. That does not imply that [At this point, the network took a commercial the rest of the society agrees with the life- break.] style, but you just accept as a fact that there Mr. Smith. We’re back live in the White are in every country and always have been House Rose Garden. What’s your question homosexuals who are capable of honoring for the President? their country, laying down their lives for their country, and serving. And they should be Health Care Reform judged based on their behavior, not their life- Q. Mr. President, one quick question on style. That’s my view; it’s a behavior test. the health care issue. It does not yet appear Let me say this: We almost have a com- what the health care plan is going to look promise here. Most Americans believe if you like, but will we be ensured that we know don’t ask and you don’t say and you’re not that the less fortunate of this country and forced to confront it, people should be able the unemployed will have ready access to to serve. Most Americans believe that the gay quality care? lifestyle should not be promoted by the mili- The President. Yes. But it’s not just the tary or anybody else in this country. The issue people who don’t have health insurance—the is a narrow one: Should you be able to ac- people who have it who are afraid of losing knowledge, if asked, that you are homo- it because somebody in their family’s been sexual? And if you don’t do anything wrong, sick, and they can’t change jobs. There are should you be booted from the military? We millions of Americans locked into their jobs are trying to work this out so that our country today because they or someone in their fam- does not—I understand what you’re saying— ily has a preexisting condition. We need to so that our country does not appear to be change the rules so that you can change jobs endorsing a gay lifestyle, but we accept peo- and you can be unemployed and your busi- ple as people and give them a chance to serve ness can fail and you don’t have to worry if they play by the rules. I think that is the about getting health care. I think it’s very tough issue for us, and I think we’re very important. And if we do it right, we can do close to resolving it here. it and hold down the cost of health care, not Ms. Zahn. Could you be satisfied with drive it up. Keep in mind, your country ‘‘don’t ask, don’t tell, don’t investigate’’? spends 35 percent more than any other coun- Might that be where you might end up? try on Earth on health care, more of our in- The President. Well, we might end up come. We can do this. that way as long as it doesn’t lead to a whole range of deliberate outings. I mean, we don’t Homelessness want to make it worse. I think we’re very Q. I’ve been visiting Washington, DC, and close to a compromise along those lines. And I’ve noticed a lot of homeless people on the I think most Americans will agree when it streets. And it really made me sad and every- works out that people are treated properly thing. And I was just wondering if you had

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any plans to help them find jobs and get The President. The truth comes out. homes. [Laughter] The President. We do, actually. The Sec- Ms. Zahn. The President wanted to say retary of Housing and Urban Development, something about how it was more than al- Mr. Cisneros, has just established a commis- most 30 years ago that he was standing in sion on homelessness, and they’re supposed this very spot. to give him a report in September about what The President. This young man asked me we can do to change this. It’s a very com- where I was standing when I met President plicated problem. We’re now having some Kennedy in the Rose Garden when I was a people who don’t want to go into the shelters delegate to the American Legion Boys Na- at night because they don’t think they’ll be tion. He was standing on those steps there, safe, and they think they’re safer on the and I was standing here, because they had streets. It’s a very sad thing. us lined up in alphabetical order, and I was It’s a question of jobs, of education, of from Arkansas, and we were at the front of drug treatment often. But we need to do the alphabet. I was also the biggest kid on something. I run by, every day when I run this side, so when he came over and started out here, I run by about six homeless people shaking hands, I sort—I’m embarrassed to who stop and say, hello, Mr. President. And say this, but I kind of elbowed the others I talk to them, and I look at them and think, out of the way to make sure—[laughter]— you know, I ought to be able to get those to make sure if he only shook three hands, people off the street. If I can do anything, at least I get to shake his hand. He was good, I ought to be able to do that. And we’re going he shook hands with everybody on the front to try. row. Administration Priorities The Presidency Q. Hello, Mr. President, I’d like to get Ms. Zahn. So if some wide-eyed kid came back earlier to what we were discussing. You up to you from that same position, what were talking about how you were filtered to would you tell him about being President the media. And is there a problem with how today and maybe what some of your mis- you’re filtered, from the administration’s conceptions were about the job? point of view, and your administration? Or The President. I would tell him it’s an is it something with a focus on too many incredible challenge, an exhilaration, and a issues at once and not a specific drive, so great honor. And if it ended tomorrow, it the public is not confused? would be the greatest honor I ever had. You Ms. Zahn. We’re really not going to give just have to get up every day and do the best you much time, 15 seconds, Mr. President. you can. Sorry. Abraham Lincoln said one time, if he tried The President. I think we have to do to answer all the charges against him, he’d more than one thing. But we need to talk never get anything else done. If the end about one thing at a time. There’s a dif- brought him out wrong, 10,000 angels claim- ference in—we have to—you can’t just shut ing he was right wouldn’t make any dif- the whole thing down. If we want to have ference. And if the end brought him out all welfare reform and student loans done 8 right, then everything that was said before months from now, we have to start doing wouldn’t make any difference. You just have them now. But we need to talk about one to keep your eye on the ball. The ball is you thing—— and your welfare and what happens to you. [At this point, the network took a commercial Job Training break.] Q. Mr. President, I’d like to address the Ms. Zahn. Welcome back to Washington, issue of employee training. I believe in your in the Rose Garden, where we continue our campaign that you had stated that employers confrontation with—conversation, not con- would be putting forth maybe 1.5 percent frontation with—[laughter]—conversation, towards training. I was wondering, is this talk with, town hall. going to be mandated for employers to put

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so much into training, or would it be left up The President. We are trying right now to the voluntary action of employers? to write in the national Goals 2000—law of The President. We don’t want a mandate. the land. I then want some national standard- That is about the average of what employers ized exams that really mean something and in the country spend. And what we’re trying aren’t bogus and that are updated annually. to do is to work out a system of lifetime train- And we want tougher and higher standards ing that doesn’t have mandates on employers for teachers that have some national credibil- but will give them more incentives to do that. ity, national standards. You know, there are a lot of employer man- I want you to understand, however, we dates right now on Social Security and other don’t go to school as long as a lot of other things that are just very expensive. countries do. And we have a much more eco- Let me tell you where we’re beginning. nomic and social diversity than other coun- What we’re beginning is with the kids who tries, more immigrants, a lot more poor peo- just get out of high school and with older ple, a lot of differences. But our system can people who come back into 2-year vocational achieve international excellence if we have training programs. We’re going to try to help clear standards and clear ways of training to set up a system by putting a little Federal people and then if we judge the schools more money in and by giving States and localities based on their results rather than the bureau- more flexibility over the money we spend cratic inputs. So that’s basically what we’re now to guarantee that people will always be trying to do. able to go back and get at least 2 years of Mr. Smith. Thank you. We will be back education after high school even if they don’t with more live from the Rose Garden and go to college. And then we want to move President Clinton in just a second. from there to see what we can do to give [At this point, the network took a commercial the employer community more incentives to break.] do that kind of training or access those things, because the average 18-year-old will Mr. Smith. We’re back live in the Rose change jobs eight times in a lifetime. And Garden at the White House with President if we want to raise incomes in America, we’ve Clinton. got to have a very well-trained work force, Did you vote for President Clinton? and people have to think of education as Q. Yes, I did. something they do always. We’re going to Mr. Smith. And have been worried about have workers in their sixties going back to him a little bit? school and learning new skills. And if it is Q. Yes, I have been. a source of security, they will be excited The President. So has my mother. I’m about it. We’ve got to find a way to make glad you—[laughter]—— change the friend of Americans, instead of Q. I’m old enough to be his mother, but the enemies. That’s the idea. But I don’t want I’m the wrong gender. [Laughter] No, I was to mandate it. concerned. But frankly, since being here this morning, I am reinforced in my hopes or be- lief that you’ll do a good job. I really am. Excellence in Education I think you’re on the right track. You’ve given Mr. Smith. We have a couple of young me a lot more confidence. Thank you. women here who are about to become teach- ers, right? Health Care Reform Q. Correct. The standardized test scores Ms. Zahn. Well actually, I have one ques- for students in countries like Japan, France, tion about Chelsea here, but before we get and Canada exceed the ones in America. And there, before we go off the air, I just won- as we’re going into the 21st century, what dered if you could give us a little more infor- changes will you propose to make sure that mation on health care this morning. We the students in America—in other words, we know that some of your economic advisers become the leader? have been advising against going with the big Mr. Smith. Competitive, competitive— bang theory of doing this health care reform one minute. all at once. What exactly are their fears?

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What are they worried about and are those about it. We decided that this was best for fears warranted? her for a number of reasons. One is my The President. Well, they’re afraid that daughter is not a public figure. She does not we won’t be able to get saving out of the want to be a public figure. She does not like system. Basically, to go back to this man’s getting a lot of publicity. And frankly, she question here on the health care issue, if you has more privacy and more control over her look at America compared to other countries, destiny where she is than she would if she we spend more on insurance and paperwork, were at the public school that she was also Government regulation, and other things interested in attending. All three of us made than any other country does. What our at- a family decision that it would be best for tempt is going to be is to get savings out her under these circumstances. of all of that and use that to cover the unin- I also think the school that she decided sured and to make it cheaper for farmers, to attend has some very special things about for small business people, and for self-em- it, including a requirement that children do ployed people to get insurance. That’s the community service. There’s a whole ap- deal. Some of them are afraid we can’t get proach that the Friends have to the edu- the savings quick enough, so they say we cation system that she was interested in ex- ought to have just a major medical coverage ploring. But it was not a rejection of the pub- and protect people from disaster. But if you lic schools. It was a decision that because of look at the economics, the economics are a who she is and where she is and the cir- disaster. If you have a—I don’t know—a cumstance she’s in, she would be happier in $3,000 deductible or something like that, a—she’d feel that she could be more of a well, what have you got? You don’t have normal kid if she could do that. That’s the much. That’s what a lot of people have today. only reason we did it. We didn’t reject the So what I want to do is to phase in the cov- public schools. erage, but when you give it to people, give Mr. Smith. We’ve got just a little bit less them something that’s worth having, that than a minute right here and a real important really gives family security. I think the Amer- question, Mr. President. ican people would rather us phase it in and do it gradually and do it right and then give Community Involvement people something that’s worth something, Q. I’m going to ask you the question that than do it overnight but give them something President Kennedy admonished us all to ask that’s not worth a nickel. 33 years ago: What can we do to help our Ms. Zahn. Can we talk about a family country? member now? Mr. Smith. And the clock is running, 30 The President. Yes. seconds. The President. You can do what you’re Chelsea Clinton’s Education doing today. You can keep asking us ques- Q. Hi. I’m a freshman in high school. My tions and keep saying to people: Put aside question was, sometime ago you said that our the partisan politics and try to solve the prob- schools are safe. And if so, how come you lems of the country. Get something done. won’t let Chelsea go to a public school? You’re going to make mistakes if you try to The President. No, I didn’t say our do something, but move us forward. The sec- schools are safe, I said they could be. The ond thing you can do is to let everybody know question of personal safety had nothing to that you’re willing to do your part if every- do with it. My daughter was always in a pub- body else does theirs, if it’s fair. The third lic school, and her public school education thing you can do is to go back home and is serving her quite well now. She’s doing ask, what problem do we have in this com- well in the school she’s in. She and her moth- munity that Bill Clinton can’t do anything er and I reviewed all the possible schools we about, except maybe set an example and try could send her to, including—we looked at to deal with some of these—the family prob- three private schools and three public lems we’ve got, the children’s problems schools. We examined, and we thought a lot we’ve got, a lot of the value problems we’ve

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got, they have to be dealt with one-on-one and create jobs in the private sector; and to from the grassroots up. And every American provide the incentives to make people at the needs to be involved in community service bottom rungs of the economy prefer work like that, that the Government cannot solve over welfare. Tonight, the House said ‘‘no’’ some of these problems, and if we did more to gridlock, ‘‘no’’ to the status quo, and ‘‘no’’ at the local level our Government would to the special interests who worked so very function better. hard to frighten millions of Americans about Mr. Smith. We’re going to wrap things up this program. Tonight, the House said ‘‘yes’’ from the White House when we come back. to jobs, ‘‘yes’’ to lowering the deficit, ‘‘yes’’ [At this point, the network took a commercial to lower interest rates, ‘‘yes’’ to a brighter break.] future. Mr. Smith. We got Josh here from Indian- Tomorrow, we go on to the Senate, and apolis. What’s the title of your paper you just we go back to the country. We have broken wrote? the gridlock. We are taking responsibility for Q. Arkansas: The State Where the People the future. We are dealing with the tough Rule. problems. I am very, very proud of the peo- Mr. Smith. And you don’t think you’ll get ple who tonight cast a very tough vote in a extra credit for getting it signed by the Presi- hard environment for a better tomorrow for dent? [Laughter] America. Ms. Zahn. This wraps our special 2-hour Thank you very much. edition of ‘‘CBS This Morning,’’ our town meeting with President Clinton. Thank you NOTE: The President spoke at 9:40 p.m. in the so much for your time today. Rose Garden at the White House. The President. Thank you very much. Ms. Zahn. Will you ever invite us back into the Rose Garden here? The President. Absolutely. I’d like for all Announcement of Chief and Deputy of you to come back. Chief of Protocol at the Department Ms. Zahn. All right. Have a good day ev- of State erybody. See you in the morning. May 27, 1993 NOTE: The town hall meeting began at 7:03 a.m. The President today announced his inten- in the Rose Garden at the White House. A tape tion to appoint Molly Raiser to be the State was not available for verification of the content of these remarks. Department’s Chief of Protocol. He also in- tends to nominate her to the rank of Ambas- sador while serving in that capacity. In addi- Remarks Following the House Vote tion, he approved the appointment of Fred on the Budget DuVal as Deputy Chief of Protocol. May 27, 1993 ‘‘Molly Raiser is an outstanding individual who has worked in a variety of ways to make For a long time now, the American people our Nation’s Capital a better place to live have wondered whether their Government and to increase the participation of women in Washington could ever really work for in American politics,’’ said the President. them again, ever really face the tough prob- ‘‘Along with Fred DuVal, she will do an out- lems. Well, tonight the House of Representa- standing job of ensuring that the diplomatic tives gave America a victory of growth over corps and the many foreign dignitaries who gridlock. Tonight, the House showed courage come to Washington each year are given a and conviction. Tonight, the House made true American welcome.’’ hard choices: to cut a quarter of a billion dollars in spending; to ask those most able to pay, the wealthy, to do more to reduce NOTE: Biographies of the appointees were made our deficit; to increase incentives to invest available by the Office of the Press Secretary.

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Announcement of Ambassador to Atlantic, C&P Telephone, NYNEX, and es- Canada pecially the workers, the Communication May 27, 1993 Workers of America and the International Brotherhood of Electrical Workers. There The President announced his intention have been a lot of people who worked on today to nominate former Michigan Gov- this project, and we wanted to highlight that ernor Jim Blanchard to be the U.S. Ambas- by talking to you three this morning. sador to Canada. And we thought it was an especially good ‘‘Our relationship with Canada is abso- time to do it as we head into Memorial Day. lutely vital,’’ said the President. ‘‘They are And I have a few notes about you guys. I our largest trading partner and one of our know more about you than you know about closest neighbors. That’s why I am nominat- me now. [Laughter] I wanted to say a special ing an Ambassador in whom I place such a word of thanks to all of you. And Mr. Young, high degree of trust, my good friend Jim I understand you have a couple of sons in Blanchard. With a voice that will be clearly the service. heard in both Ottawa and Washington, he will ensure that this important relationship Mr. Young. Yes, I do, sir. continues to be productive for both coun- The President. And you ought to be able tries.’’ to talk to them more frequently now. Where are they? NOTE: A biography of the nominee was made Mr. Young. One, Korea; the other one in available by the Office of the Press Secretary. Italy in the Army, sir. The President. Good for you. And you Teleconference Remarks With have a third child in college? Veterans in VA Medical Centers Mr. Young. Yes, Queens College. May 28, 1993 The President. So, you have one child handy. The President. Vincent Maurio, are you Mr. Young. Yes. there? The President. Pretty close. Vincent Maurio. Yes. My name is Vincent Mr. Young. Yes. Maurio from Philadelphia Nursing Home The President. And Mr. Maurio and Mr. Care Unit. Patenaude, both of you are veterans of World The President. And is Eugene Young War II, is that right? there? Mr. Maurio. That’s right. Eugene Young. Yes, I’m here at Bronx VA Nursing Home Unit. Ken Patenaude. Yes, I am. The President. It’s good to hear all your The President. Is it nice for you having voices. I’m here with Vice President Gore those phones? and with Hershel Gober who is the Deputy Mr. Young. Very nice. Secretary of the Department of Veterans Af- Mr. Maurio. I think it’s an enormous ac- fairs. And as we move into Memorial Day complishment, and I think it’s going to be weekend, we just wanted you to know and great for all of us. It’s going to get us easy all veterans like you in hospitals all across access to reach our families and friends at America that we’re thinking about you, pull- home, a greater sense of privacy, and I think ing for you. We know you wish you could it’s going to instill in us yet a higher level be home and able to participate in the Me- of self-reliance, which of course in our condi- morial Day services. But we’re very, very ex- tions is very important. cited about the fact that you have these So, I’m fascinated by the incredible tech- phones in your rooms now thanks to the PT nology and the genius that it takes to put Phone Home Project. this program together and this phone system And I want to say a special word of thanks together. And I’ve been witness to it all to Frank Dosio who came up with this idea and to all the people who worked on it: Bell

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morning long, and it’s been extremely fas- retary, who’s a Vietnam veteran also. They cinating. are keeping me on the straight and narrow The President. Why don’t you describe here when it comes to veterans policies. it to us. We can’t see it here. They’ve got our administration focused on Mr. Maurio. I have surrounding me a these kinds of problems and a lot of other bunch of electronic wizards. I don’t under- ones. stand their language completely, but they’re And I’m glad to hear you say that. You absolutely fascinating to listen to. And there’s say you never in your wildest dreams be- an awful lot of technical equipment here, a lieved you’d be talking to the President. You lot of apparatus, but I think mainly the most know there are millions of people who would import thing is volunteer efforts of all the probably like to give me an earful this morn- people involved. I think that’s a little bit of ing, and you can do it. So, you’ve been doing America at work, and it shows what we can a great job. do when our minds are set down to it. And Mr. Vice President. I would like to thank all who participated in The Vice President. Gentlemen, this is this wonderful project on behalf of all the Vice President Al Gore. I just wanted to say patients, the staff, and the administration at that the heads of the labor unions whose both VA Hospital and the Nursing Home members did this on a volunteer basis are Care Unit in Philadelphia. I think it was a here in the Oval Office with us this morning marvelous effort on all their parts. They de- and representatives of some of the compa- serve a great deal of credit, and I’m sure you nies that made it possible. And I think that will have to agree with me. what people did in pulling together to make The President. I do. I hope we can get them the credit they deserve by this con- this phone system possible for you really kind versation this morning. of symbolizes the way the entire country feels Anyone else have something to say about about your service and about all veterans and this? what our country owes to you. Mr. Patenaude. Mr. President, this is Ken The fact that members of organized labor Patenaude from Albany. and members of companies in corporate The President. Hi, Ken. America pulled together with more than Mr. Patenaude. Never in my wildest 5,000 volunteer hours and huge quantities of dreams did I ever think that I’d be talking donated equipment, volunteers from the to the President. It’s an honor. VFW and the staff of the VA all working to- And I can’t believe that this is happening. gether to make this possible. If the whole It’s beautiful, the way they have this set up country could find ways to express what we and all the work that these men have put feel toward veterans like this, you’d see more into it. I want to thank all the volunteers from of this. Matter of fact, CWA members from the Communication Workers of America, the other cities have taken up this challenge as VFW, American Legion, and all the employ- a result of what Frank Dosio started there, ees at the Stratton VA Medical Hospital. This and now it’s beginning to be implemented is one of the greatest things that has ever in other VA hospitals and in other cities. happened in my life. So, we’re really proud of you. We appre- The President. Well, I think you’ve ciate what you’ve done. We join you in appre- earned it. You’ve served your country well, ciating what these volunteers have done for and I’m just glad to be a small part of this. you. Mr. Patenaude. And it’s a pleasure to The President. I also wanted to note that have you on our side. as we get off the phone here I know that The President. Thank you. Well, I am. at least in Albany and Philadelphia several We’ve got a very good Veterans Affairs De- hundred other bedside phone units are going partment here headed by two American vet- to be activated. There must be a lot of folks erans, Jesse Brown, who’s worked for dis- in those hospitals that want me to get off abled veterans for many years, and my long- the telephone so they can use theirs. They’re time friend Hershel Gober, the Deputy Sec- not going to be activated until we finish.

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I did want to say one other thing to you. quality care for the veterans which, you Yesterday morning we had a nationally tele- know, they deserve. And the staff also. vised town meeting here in the Rose Garden The President. Well, I wish all of you at the White House with a couple of hundred well. Mr. Young, when you talk to your sons folks who came from 35 States. One of the in Italy and Korea, you tell them that we’re people there said, ‘‘You know, we’re always proud of them on this Memorial Day week- asking you, Mr. President, what are you going end. to do and telling you what we think you Mr. Young. I sure will, Mr. President. should do. What do you think we can do for The President. And when you talk to your our country to help now?’’ And I would just child in Queens College, make sure that kind of like to repeat something that came there’s a graduation there. We need all the out of that conversation because I told the kids we can get with good educations so woman who asked the question that there they’ll support you and I when we get older are clearly limits to what Government can and have a strong economy. do as well as great possibilities there. And Mr. Young. That’s true, Mr. President. a lot of the problems that we have in this Thank you very much. country have to be dealt with by citizens The President. Thank you. Vince and working together at the grassroots level. And Ken, thank you very much. this is a stunning example of that. I mean, Hershel, you want to say anything? just think how many people all across Amer- Deputy Secretary Hershel Gober. I ica are going to wind up having telephones would just like to say before Memorial Day in these hospitals because one man had a vi- here for my comrades, fellow veterans, sion, and his company and his union were Vince, Ken, Eugene, we’re proud of you. And willing to support that vision. I mean, that’s Secretary Brown and I, along with the Presi- an example of the kind of things that can dent and the Vice President, want you to be done by American people all over this know that we’ll provide the support that you country working together. Really, he de- need and that you have earned. You have serves all the credit. I’m just glad to be here entitlements; you don’t receive benefits. And with this inaugural telephone kickoff. I want you to know that we’re thinking about Mr. Young, are you going to call your chil- you, and God bless you. dren when we get off the phone? Mr. Young. Thank you very much. Mr. Young. I probably will, Mr. President. The President. Thank you. Have a good I’ll get the number from my wife, and I defi- day. nitely will call. And they will be excited like I am. And I would like to say thanks for the NOTE: The teleconference began at 9 a.m. The opportunity. And like Albany said, I never President spoke from the Oval Office at the White dreamed that I would be talking to the Presi- House. dent of the United States and the Vice Presi- dent of the United States. And the Bronx VA Medical Center has Exchange With Reporters on some of the best staff there is. And we appre- Departure for Philadelphia, ciate their hard labor and the volunteer serv- Pennsylvania ice. And they’re doing a very good job. May 28, 1993 The President. Well, we’re trying to sup- port your veterans hospital network. Even as tight as the budget is here and as much as China we’re cutting, we’re going to invest some Q. Heard anything from China, Mr. Presi- more money in these veterans hospitals next dent? Their reaction, the Chinese reaction? year to try to keep the quality of care up The President. I don’t know what their— for people like you. I feel very good about our policy. I think it’s Mr. Young. That’s true. Yes—[inaudi- a good policy. I don’t want to isolate China. ble]—the quality of care for the veterans, al- I want to do what’s good for—just the Chi- locate more funding, and it will bring better nese people. But I think standing up for

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American values and values in China is the House of Representatives gave the American way to go. I think this is the right policy. people a victory for economic growth over And we have some very serious issues be- gridlock. tween us, along with these, a broad range The plan cuts the deficit by $500 billion, of possibilities. I hope we can work—— cuts a quarter of a trillion dollars in Govern- ment spending, asks the wealthy who can NOTE: The exchange began at 10:07 a.m. on the South Lawn at the White House. A tape was not best afford to pay their fair share, invests in available for verification of the content of this ex- education and jobs, and rewards work instead change. of welfare. [At this point, there was a disturbance in the Remarks at City Hall in Philadelphia audience.] May 28, 1993 Let me tell you something—wait a minute. You know one thing that’s wrong with this Thank you very much, Rosemary Greco. country? Everybody gets a chance to have You know, she’s the sort of person that I ran their fair say. My budget did more to fight for President to support, a person who start- AIDS than any in history, and we’re having ed out as a bank teller and became the presi- to put up with this. Tell them to let me talk. dent of a bank. That’s the American dream. If you want to give a speech, go out there I want to say how glad I am to be here, and raise your own crowd. We’ll be glad to back in Philadelphia, a city that has been so listen to you. good to me for so long now, with your Mayor and Senator Wofford and with the members So there were those—I’ll make you a deal. of the House delegation who are up here on I’ll ignore them if you will. the platform with me, and with your State There were a lot of people who said we treasurer, Catherine Baker Knoll. I’m glad could never change the way things were in to be here with all of them. Give them a Washington, the same sort of people who hand, will you? picked the Phillies to finish last this year. By My fellow Americans, since I became the way, I think the Phillies are looking pretty President I have been working to break the good, even that big fellow, Kruk, you know, gridlock in Washington, to prove that Gov- is a big bat. I wonder who cuts his hair? ernment could work for you again. And there [Laughter] have been some impressive examples of suc- Let me tell you something, folks, make no cess in that regard. The Congress, after 8 mistake about it, this National Capital of years of rankling with the President and two yours is beginning to change. After years in vetoes, voted to pass the Family and Medical which our house was coming apart with high- Leave Act to guarantee working people a lit- er deficits and less investment, a Govern- tle time off when the baby was born or a ment by special interests instead of the na- parent was sick, and eventually, after years tional interests, middle class working harder of haggling, voted to pass the motor voter for less, things are really beginning to change. bill to open up the voter registration rolls After years of a lot of hot air and no re- to millions of Americans and bring them into sponsibility and no willingness to take the the political process. tough decisions, yesterday the House began But the real issue was whether we had the to throw out the economic program that ran courage to come to grips with the economic our debt to $4 trillion, ran the middle class problems which have paralyzed this country. into the ground, created a new class of pov- After years and years and years of gridlock, after years of leaders talking about economic erty, and robbed our country of opportunity problems and not doing much about them, and any sense of community. We are now after years in which we ran our national debt moving forward with a plan that reduces the from $1 trillion to $4 trillion and reduced deficit, asks the wealthy who can pay their our investment in our people, their jobs, and fair share, gives the middle class the chance their future at the same time, last night the of having a future with real economic growth,

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and provides profound incentives to prefer I’ll tell you something else. Every dollar work over welfare. These are the kinds of in taxes and all the budget cuts have to go things you elected me to do. into a deficit reduction trust fund. There will And I want to say one of the most reward- be no taxes without the budget cuts, and all ing things is the people who supported the the money will go to bringing the debt down. program. I mean, after all, this is a program And we will have some left over to do things which asks that 75 percent of the money that need to be done. Here in Philadelphia, raised in taxes be paid for by people with you know, because of defense cuts, we need incomes above $100,000. And yet, among the to invest some money to help move our coun- strongest supporters were people who had try from a defense to a domestic economy, that income who believe their country was new technologies for new jobs and new op- more important than their own pocketbook. portunities in the future. Because this debt And we ought to reward that. We had not turned out to be bigger even than we knew just labor leaders and small business people before the election, I did ask the Congress and mayors of small and big cities and Gov- to adopt an energy tax, some of which will ernors for this program. There were people be paid by middle class Americans. But I who led some of the biggest—lead some of want you to know exactly how it works, and the biggest companies in this country out you’ve got to decide whether you think it’s there working to give our country a better worth it. chance and a brighter future, because they First of all, we have income tax reductions know that we have to stop reducing our in- to protect family incomes below $30,000 vestment and running up our debt. We need from the impact of the energy tax. For people to reverse our priorities, and now we’re on above $30,000 up to $100,000, here’s what the way to doing it. it costs: $1 a month next year; $7 a month A lot of these decisions were not easy, but the year after; and if you’ve got a family of they had to be made. I tried to set a good four, $17 a month after that. But consider example. I reduced my own staff. We’ve had this: Look how much interest rates have gone a reduction in this budget in the Federal down. If we keep interest rates down and work force by attrition, not by laying people people can refinance their homes, get car off, but we’re going to reduce the Federal loans at lower rates, get consumer loans at Government by 150,000 over the next 4 lower rates, get lower business loans from years. That’s a lot. That’s a lot of Government good bankers like Rosemary, you will save spending cuts. We cut more than 200 specific more in interest rates than you’ll ever pay programs. We cut $2 in spending for every in the energy tax, and you’ll have a healthier $1 in new investments and education and economy and a lower deficit. jobs and technology. Just for example, if someone had a There were things that had never been $100,000 home mortgage that was financed really seriously dealt with before, the budg- at 10 percent, and they refinanced it at 7.5 et’s sacred cows: everything from agricultural percent, they’d save $175 a month, a month, subsidies to the REA to other problems that not a year. This is going to be good econom- affect the cities; demonstration projects that ics. If we can keep interest rates down by had never been seriously reviewed; cuts in bringing the debt down, that will release an- the Medicare program that couldn’t be justi- other $100 billion into this economy this year fied; and the Federal employees perhaps to put the American people back to work. took the biggest hit of all, forgoing a pay raise Yesterday was a historic day, but it was and having a budget that lowers their raises just the beginning. Now the bill goes on to below the cost of living for 4 years, because the Senate. And we must work to pass the most of them agreed that they couldn’t ask bill that meets these principles: The wealthy any of you to pay more, even the wealthiest must pay their fair share; we have to reduce Americans, unless they took less. That’s the the deficit by $500 billion; we have to keep kind of spirit it’s going to take to turn this the incentives for people to invest in our jobs country around and move the country for- and in our cities; and we’ve got to give people ward. incentives to move from welfare to work, not

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the other way around. That’s the kind of bill in the Congress, and we ought to pass it this that needs to come to my desk. year. There are 80,000 lobbyists in Washington. When I was running for President, I was Many of them don’t want Washington to profoundly influenced by the series in the change. Think of that. Maybe some of you Philadelphia Inquirer by Donald Bartlett and all are in the wrong line of work—80,000. James Steele, the stories they made into a Special interests that work in the Senate who book called ‘‘America, What Went Wrong?’’ have now proposed that we cut Social Secu- They said that after 50 years, the middle class rity and put more of a burden on the middle and small business had been helped for 50 class in order to relieve the burden on the years, but things began to change about a wealthiest Americans, when many of them dozen years ago. About a dozen years ago, are leading the crusade for change. I think the National Government adopted tax poli- we can do better. I think we can do better. cies and economic policies that rewarded And we’re going to do better in the United those who shut jobs down in America and States Senate with your help. sent them somewhere else; rewarded those who laid their workers off and bailed out with The process of changing is not easy, not golden parachutes to better lives. We even, and not quick. But we are moving in stopped rewarding responsibility and work the right direction. The budget is on the way and rigged the game of economic life against to being realized. There is a program now the broad American middle class. They were in the United States Congress with broad bi- right, but we’re fighting to change that. partisan support to fulfill the commitment I And Americans from all walks of life are made to you to open the doors of college helping. I will say again, to me the most mov- education to all Americans and give our ing thing of all has been how many genuinely young people a chance to pay off their col- successful Americans, people this country lege through national service through their has been good to, people who have made communities here at home. a lot of money, have come forward and said, Very soon the national commission on ‘‘Go ahead and raise my taxes if it will bring health care which my wife has chaired will the deficit down and put the American peo- present their plan to provide affordable ple back to work and get this country going health care to all Americans and bring down again.’’ That’s the kind of statesmanship we the cost of health care that threatens our eco- need everywhere in this country. nomic stability. How many millions of Ameri- Yesterday we began the process of saying cans not only lack health insurance but have no to gridlock, no to special interests, no to it and are terrified of losing it because some- the spiraling deficit, no to increased unem- body in their family has been sick, and they ployment, no to the conditions which lead think they’ll never be able to change jobs. so many of you to work harder for lower We can do better, and we will with your sup- wages every year. We said yes to a brighter port. future to America, yes to lower deficits, yes Finally, there are bills in the Congress to more jobs, yes to higher incomes, yes to which will help to change the very way your a future in which we have a real chance to National Government works: A bill that will compete and win. require every lobbyist to register and to say Things are going in the right direction. how much money they spend lobbying all the Stay with us. Fight with us. Help to lift this rest of us and report it to you—I think that country up, and believe in its future. And would be a good thing—already passed the we can do it. Senate; can pass the House. And Mayor Thank you, and God bless you all. Rendell was talking about the campaign fi- NOTE: The President spoke at 12:19 p.m. in the nance reform bill, which at long last will courtyard. In his remarks, he referred to Edward lower the cost of congressional campaigns, G. Rendell, Mayor of Philadelphia, and Rosemary limit the influence of political action commit- Greco, president and CEO, CoreStates Bank. A tees, and open the airwaves to candidates so tape was not available for verification of the con- they can have an honest debate. That bill is tent of these remarks.

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Statement on Most-Favored-Nation to the cause of freedom in China has given Trade Status for China voice to our collective concerns. I intend to May 28, 1993 continue working closely with Congress as we pursue our China policy. Yesterday the American people won a tre- We are here today because the American mendous victory as a majority of the House people continue to harbor profound concerns of Representatives joined me in adopting our about a range of practices by China’s Com- plan to revitalize America’s economic future. munist leaders. We are concerned that many Today, Members of Congress have joined activists and prodemocracy leaders, including me to announce a new chapter in United some from Tiananmen Square, continue to States policy toward China. languish behind prison bars in China for no China occupies an important place in our crime other than exercising their con- Nation’s foreign policy. It is the world’s most sciences. We are concerned about inter- populous state, its fastest growing major national access to their prisons. And we are economy, and a permanent member of the concerned by the Dalai Lama’s reports of United Nations Security Council. Its future Chinese abuses against the people and cul- will do much to shape the future of Asia, ture of Tibet. our security and trade relations in the Pacific, We must also address China’s role in the and a host of global issues from the environ- proliferation of dangerous weapons. The ment to weapons proliferation. In short, our Gulf war proved the danger of irresponsible relationship with China is of very great im- sales of technologies related to weapons of portance. mass destruction. While the world is newly Unfortunately, over the past 4 years our determined to address the danger of such Nation spoke with a divided voice when it missiles, we have reason to worry that China came to China. Americans were outraged by continues to sell them. the killing of prodemocracy demonstrators at Finally, we have concerns about our terms Tiananmen Square in June of 1989. Congress of trade with China. China runs an $18 bil- was determined to have our Nation’s stance lion trade surplus with the U.S., second only toward China reflect our outrage. Yet twice to Japan. In the face of this deficit, China after Congress voted to place conditions on continues practices that block American our favorable trade rules toward China, so- goods. called most-favored-nation status, those con- I have said before that we do not want ditions were vetoed. The annual battles be- to isolate China, given its growing impor- tween Congress and the Executive divided tance in the global community. China today our foreign policy and weakened our ap- is a nation of nearly 1.2 billion people, home proach over China. to 1 of every 5 people in the world. By sheer It is time that a unified American policy size alone, China has an important impact recognize both the value of China and the on the world’s economy, environment, and values of America. Starting today, the United politics. The future of China and Hong Kong States will speak with one voice on China is of great importance to the region and to policy. We no longer have an executive the people of America. branch policy and a congressional policy. We We take some encouragement from the have an American policy. economic reforms in China, reforms that by I am happy to have with me today key con- some measures place China’s economy as the gressional leaders on this issue. I am also third largest in the world, after the United honored to be joined by representatives of States and Japan. China’s coastal provinces the business community and several distin- are an engine for reform throughout the guished Chinese student leaders. Their pres- country. The residents of Shanghai and ence here is a tangible symbol of the unity Guangzhou are far more motivated by mar- of our purpose. I particularly want to recog- kets than by Marx or Mao. nize Senate Majority Leader George Mitch- We are hopeful that China’s process of de- ell of Maine and Congresswoman Nancy velopment and economic reform will be ac- Pelosi of California. Their tireless dedication companied by greater political freedom. In

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some ways, this process has begun. An nese on numerous occasions. They under- emerging Chinese middle class points the an- stand the serious consequences of missile tennae of new televisions towards Hong transfers under U.S. sanctions law. If we de- Kong to pick up broadcasts of CNN. Cellular termine that China has in fact transferred M– phones and fax machines carry implicit no- 11 missiles or related equipment in violation tions of freer communications. Hong Kong of its commitments, my administration will itself is a catalyst of democratic values, and not hesitate to act. we strongly support Governor Patten’s ef- My administration is committed to sup- forts to broaden democratic rights. porting peaceful democratic and promarket The question we face today is how best reform. I believe we will yet see these prin- to cultivate these hopeful seeds of change ciples prevail in China. For in the past few in China while expressing our clear dis- years, we have witnessed a pivot point in his- approval of its repressive policies. tory as other Communist regimes across the The core of this policy will be a resolute map have ceded to the power of democracy insistence upon significant progress on and markets. human rights in China. To implement this We are prepared to build a more coopera- policy, I am signing today an Executive order tive relationship with China and wish to work that will have the effect of extending most- with China as an active member of the inter- favored-nation status for China for 12 national community. Through some of its ac- months. Whether I extend MFN next year, tions, China has demonstrated that it wants however, will depend upon whether China to be a member of that community. Member- makes significant progress in improving its ship has its privileges, but also its obligations. human rights record. We expect China to meet basic international The order lays out particular areas I will standards in its treatment of its people, its examine, including respect for the Universal sales of dangerous arms, and its foreign trade. Declaration of Human Rights and the release With one voice, the United States Govern- of citizens imprisoned for the nonviolent ex- ment today has outlined these expectations. pression of their political beliefs, including activists imprisoned in connection with NOTE: The statement referred to Christopher Pat- Tiananmen Square. The order includes Chi- ten, Governor and commander in chief of Hong na’s protection of Tibet’s religious and cul- Kong. tural heritage and compliance with the bilat- eral U.S.-China agreement on prison labor. In addition, we will use existing statutes Memorandum on Most-Favored- to address our concerns in the areas of trade Nation Trade Status for China and arms control. The order I am issuing today directs the May 28, 1993 Secretary of State and other administration Presidential Determination No. 93–23 officials to pursue resolutely all legislative and executive actions to ensure China abides Memorandum for the Secretary of State by international standards. I intend to put the full weight of the Executive behind this Subject: Determination Under Section order. I know I have Congress’s support. 402(d)(1) of the Trade Act of 1974, as Let me give you an example. The adminis- Amended—Continuation of Waiver tration is now examining reports that China Authority has shipped M–11 ballistic missiles to Paki- Pursuant to the authority vested in me stan. If true, such action would violate Chi- under the Trade Act of 1974, as amended, na’s commitment to observe the guidelines Public Law 93–618, 88 Stat. 1978 (herein- and parameters of the Missile Technology after ‘‘the Act’’), I determine, pursuant to Control Regime. Existing U.S. law provides section 402(d)(1) of the Act, 19 U.S.C. for strict sanctions against nations that violate 2432(d)(1), that the further extension of the these guidelines. We have made our con- waiver authority granted by section 402(c) of cerns on the M–11 issue known to the Chi- the Act will substantially promote the objec-

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tives of section 402 of the Act. I further de- (a) In making this recommendation the termine that the continuation of the waiver Secretary shall not recommend extension un- applicable to the People’s Republic of China less he determines that: will substantially promote the objectives of —extension will substantially promote the section 402 of the Act. freedom of emigration objectives of sec- You are authorized and directed to publish tion 402 of the Act; and this determination in the Federal Register. —China is complying with the 1992 bilat- William J. Clinton eral agreement between the United States and China concerning prison [Filed with the Office of the Federal Register, labor. 12:28 p.m., May 28, 1993] (b) In making this recommendation the Secretary shall also determine whether China NOTE: This memorandum will be published in the has made overall, significant progress with Federal Register on June 1. respect to the following: —taking steps to begin adhering to the Universal Declaration of Human Rights; Executive Order 12850—Conditions —releasing and providing an acceptable for Renewal of Most-Favored-Nation accounting for Chinese citizens impris- Status for the People’s Republic of oned or detained for the non-violent ex- China in 1994 pression of their political and religious May 28, 1993 beliefs, including such expression of be- liefs in connection with the Democracy Whereas, the Congress and the American Wall and Tiananmen Square move- people have expressed deep concern about ments; the appropriateness of unconditional most- —ensuring humane treatment of pris- favored-nation (MFN) trading status for the oners, such as by allowing access to pris- People’s Republic of China (China); ons by international humanitarian and Whereas, I share the concerns of the human rights organizations; Congress and the American people regarding —protecting Tibet’s distinctive religious this important issue, particularly with respect and cultural heritage; and to China’s record on human rights, nuclear —permitting international radio and tele- nonproliferation, and trade; vision broadcasts into China. Whereas, I have carefully weighed the ad- Sec. 2. The Secretary shall submit his rec- visability of conditioning China’s MFN status ommendation to the President before June as a means of achieving progress in these 3, 1994. areas; Sec. 3. The Secretary, and other appro- Whereas, I have concluded that the pub- priate officials of the United States, shall pur- lic interest would be served by a continuation sue resolutely all legislative and executive ac- of the waiver of the application of sections tions to ensure that China abides by its com- 402 (a) and (b) of the Trade Act of 1974 mitments to follow fair, nondiscriminatory (19 U.S.C. 2432(a) and 2432(b)) (Act) on trade practices in dealing with U.S. busi- China’s MFN status for an additional 12 nesses, and adheres to the Nuclear Non-Pro- months with renewal thereafter subject to liferation Treaty, the Missile Technology the conditions below; Control Regime guidelines and parameters, Now, Therefore, by the authority vested and other nonproliferation commitments. in me as President by the Constitution and Sec. 4. This order does not create any the laws of the United States of America, it right or benefit, substantive or procedural, is hereby ordered as follows: enforceable by any person or entity against Section 1. The Secretary of State (Sec- the United States, its officers, or employees. retary) shall make a recommendation to the William J. Clinton President to extend or not to extend MFN status to China for the 12-month period be- The White House, ginning July 3, 1994. May 28, 1993.

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[Filed with the Office of the Federal Register, stantially promote the objectives of section 12:27 p.m., May 28, 1993] 402 of the Act. My determination is attached and is incorporated herein. NOTE: This Executive order will be published in the Federal Register on June 1. Freedom of Emigration Determination In FY 1992, 26,711 U.S. immigrant visas Letter to Congressional Leaders were issued in China. The U.S. numerical Transmitting a Report on Most- limitation for immigrants from China was Favored-Nation Trade Status for fully met. The principal restraint on in- creased emigration continues to be the ca- China pacity and willingness of other nations to ab- May 28, 1993 sorb Chinese immigrants, not Chinese policy. After considering all the relevant informa- Dear Mr. Speaker: (Dear Mr. President:) tion, I have concluded that continuing the Pursuant to subsection 402(d)(1) of the MFN waiver will preserve the gains already Trade Act of 1974, as amended, 19 U.S.C. achieved on freedom of emigration and en- 2432(d)(1) (‘‘the Act’’), I hereby submit the courage further progress. There, thus, con- attached report concerning the continuation tinues to be progress in freedom of emigra- of a waiver of application of subsections (a) tion from China; we will continue to urge and (b) of section 402 of the Act to the Peo- more progress. ple’s Republic of China. The report explains Chinese Foreign Travel Policies my reasons for having determined that con- tinuation of the waiver currently in effect for In FY 1992, 75,758 U.S. visas were issued the People’s Republic of China will substan- worldwide to tourists and business visitors tially promote the objectives of section 402. from China, a 35 percent increase over FY In addition, I am also transmitting herewith 1991 and a 76 percent increase over FY 1988. for your further information a copy of an Ex- Foreign travel by Chinese-government spon- ecutive Order which enumerates the specific sored businessmen alone increased by 48 conditions which I have established with re- percent in FY 1992, reflecting Deng spect to a further extension of the waiver next Xiaoping’s policies of accelerating China’s year for the period beginning July 3, 1994. opening to the outside world. Sincerely, In FY 1992, 18,908 student visas (includ- ing exchange students) were issued, a decline William J. Clinton from FY 1991 of 14 percent but still 8 per- cent greater than FY 1988. The decline was NOTE: Identical letters were sent to Thomas S. Foley, Speaker of the House of Representatives, probably the result in part of a recent new and Albert Gore, Jr., President of the Senate. directive requiring Chinese college graduates educated at state expense to work for five years before applying for privately-funded Report to the Congress on Most- overseas study. A drop in funding from reces- Favored-Nation Trade Status for sion-strapped U.S. schools and relatives may China also have played a role. May 28, 1993 Chinese students continue to return from overseas for visits without any apparent prob- Pursuant to section 402(d)(1) of the Trade lem. With the exception of student activist Act of 1974 (hereinafter ‘‘the Act’’), having Shen Tong, we are not aware of any case determined that further extension of the in which Chinese living in the U.S. who re- waiver authority granted by section 402(c) of turned to China for visits after June 1989 the Act for the twelve-month period begin- were prevented from leaving again. Shen was ning July 3, 1993 will substantially promote detained in September 1991 and then ex- the objectives of section 402, I have today pelled from China two months later for try- determined that continuation of the waiver ing to establish a Beijing chapter of his Fund currently applicable to China will also sub- for Chinese Democracy.

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Human Rights Issues presented them earlier in June of that year. As detailed in the Department’s annual Since then, the Chinese have released addi- human rights report, China’s human rights tional political prisoners, including Xu Wenli, practices remain repressive and fall far short Han Dongfang, Wang Youcai, Luo Haixing, of internationally-accepted norms. Freedoms Xiong Yan, Yang Wei, Wang Zhixin, Zhang of speech, assembly, association, and religion Weiguo, Wang Dan, Wang Xizhe, Gao Shan, are sharply restricted. Bao Zunxin, and a number of Catholic clergy China understands that the Clinton Ad- and lesser known activists. We continue to ministration has made human rights a cor- press for a general amnesty and for permis- nerstone of our foreign policy. We have al- sion for international humanitarian organiza- ready repeatedly raised our concerns with tions to have access to Chinese prisons. We the Chinese authorities and we intend to have also pressed for improvement in the press at every opportunity for observance of conditions of those in Chinese prisons. internationally accepted standards of human China has recently and for the first time rights practice. admitted publicly that domestic human We have made numerous requests for in- rights policies are a legitimate topic of inter- formation on specific human rights cases. national discussion. China has hosted human China has provided information on some of rights delegations from France, Australia, the these cases but further and more complete U.K., and Germany. China sent several dele- responses are necessary. The Chinese re- gations to the U.S. and Europe, as well as cently released, prior to completion of their Southeast Asia, to study foreign human rights sentences, several prominent dissidents practices and issued a ‘‘white paper’’ main- whom we had identified on lists provided to taining that basic human rights are observed them. These included not only Tiananmen- in China and arguing that a country’s human era demonstrators but also Democracy Wall rights record should be viewed in light of its (circa 1979) activists. We hope this is the first own history and culture. We reject this lim- step toward a broad and general amnesty for ited definition of human rights but believe all prisoners of conscience. it is a significant step forward that China is The Chinese promised then Secretary Baker in 1991 that all Chinese citizens, re- willing to debate human rights issues with gardless of their political views, have the right its international critics. to travel abroad. The only exceptions are citi- The U.S. continually raises with the Chi- zens who are imprisoned, have criminal pro- nese government the need for protection of ceedings pending against them, or have re- Tibet’s distinctive religion and culture. We ceived court notices concerning civil cases. are concerned about China’s heavy-handed A number of prominent dissidents, despite suppression of political demonstrations in the long delays, have been able to leave China. Tibetan Autonomous Region. Demonstra- Some others have not. Those who have been tions, on a smaller scale than in past years, able to obtain exit permits in the past year continue to result in instances of brutal beat- include labor leader Han Dongfang, writers ings and long detentions. China has admitted Wang Ruowang and Bai Hua, scientist Wen some foreign observers to Tibet and to the Yuankai, journalists Wang Ruoshui, Zhang main Lhasa prison. Diplomatic reports state Weiguo, and Zhu Xingqing, and scholar Liu that the Chinese Government is providing Qing. Others, like Hou Xiaotian, Yu funds for rebuilding monasteries and that Haocheng, and Li Honglin, continue to face monks are now provided more leeway in difficulties in obtaining exit permission. We their religious practices. In recent years, an continue to press the Chinese on these and increasing number of non-Tibetan Chinese other cases. have moved to the Tibetan Autonomous Re- Our goal is the release of all those held gion in search of economic opportunity. We solely for the peaceful expression of their po- will continue to monitor closely reports that litical and religious views. In November the PRC is encouraging involuntary emigra- 1991, the Chinese confirmed to Secretary tion by non-Tibetan Chinese to areas tradi- Baker the release of 133 prisoners on a list tionally settled by Tibetans. So far, we have

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found no evidence of a Chinese government sition of sanctions—if the PRC engages in policy to this effect. irresponsible transfers. Trade Issues, Including Prison Labor Nonproliferation Issues Reciprocal granting of MFN tariff status China’s support for global nonproliferation was a key element cementing the normaliza- initiatives has increased substantially since tion of Sino-U.S. relations by providing a the beginning of 1992. In March 1992, China framework for major expansion of our eco- acceded to the Nuclear Non-Proliferation nomic and trade relations. In 1992, bilateral Treaty (NPT) and adhered to the Missile trade topped $33 billion, with Chinese ex- Technology Control Regime (MTCR) guide- ports of $25.8 billion and U.S. exports of $7.5 lines and parameters. In January 1993, Bei- billion. China was our fastest growing export jing became an original signatory to the market in Asia in 1992 as U.S. exports to Chemical Weapons Convention (CWC). China rose by 19 percent. In turn, the United China now is a party to all of the leading States remains China’s largest export market, nonproliferation agreements. These commit- absorbing about 30 percent of China’s total ments have influenced Chinese behavior: exports. Beijing has refrained from selling certain China maintains multiple, overlapping bar- sensitive items because of proliferation con- riers to imports in an effort to protect non- cerns, and nonproliferation as an issue ap- competitive, state-owned industries. China pears to receive more senior consideration also has recognized that its development in Chinese policy-making circles. goals cannot be achieved without gradually At the same time, certain sensitive Chinese reducing protection and opening its domestic exports raise questions about PRC compli- market to the stimulus for change brought ance with these commitments. At present, by import competition. the greatest concern involves reports that Our market access agreement, signed Oc- China in November 1992 transferred tober 10, 1992, if implemented by the PRC, MTCR-class M–11 missiles or related equip- will increase opportunities for U.S. exports ment to Pakistan. Such a transfer would vio- by phasing-out 70 to 80 percent of China’s late China’s MTCR commitment and trigger non-tariff trade barriers over the next four powerful sanctions under U.S. missile pro- years. The regular consultation process re- liferation law. There also are reports that quired by this agreement allows us to mon- China is exercising inadequate control over itor implementation and take appropriate ac- sensitive nuclear, chemical, and missile tech- tion should China violate its commitments. nology exports to countries of proliferation Progress has been made in opening the mar- concern. Even if these sales do not violate ket to U.S. products but we still need to re- PRC obligations, they raise questions about solve several issues regarding implementa- China’s appreciation of the importance of tion. preventing the proliferation of weapons of Recently, the Chinese have indicated an mass destruction and their ballistic missile interest in doing more business with U.S. delivery systems. companies. As U.S. corporate executives are We are also concerned that China has arriving in droves to explore new commercial withdrawn from the Middle East arms con- opportunities in Beijing, at least eight Chi- trol (ACME) talks. The U.S. holds that, as nese delegations have been or will soon be a permanent member of the UN Security dispatched to the U.S. with orders to ‘‘buy Council, China has a special responsibility to American’’. These missions have the poten- continue in these talks. tial to generate billions of dollars of export Seeking full Chinese compliance with mul- of aircraft, autos, satellites, oil drilling equip- tilateral obligations and support for inter- ment, aviation electronics, wheat, fertilizer, national nonproliferation goals is a top Ad- and other U.S. products. ministration priority. The U.S. is prepared to Still, the large and growing U.S.-China employ the resources under U.S. law and ex- trade deficit is unacceptable. The over $40 ecutive determinations—including the impo- billion trade surplus China has accumulated

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with the United States since June 1989 has areas in the field of human rights with re- been very destructive to American industries, spect to which China, in order to receive particularly the textile and footwear sectors, positive consideration for a renewal of MFN resulting in the loss of American jobs. It is in 1994, will have to make overall, significant therefore essential that the PRC implement progress in the next 12 months. the market access agreement we have nego- In considering extension of MFN, we will tiated, which would produce a much greater take into account whether there has been equilibrium and fairness in Sino-American overall, significant progress by China with re- trade. spect to the following: Prison Labor —Respecting the fundamental human rights recognized in the Universal Dec- China officially banned the export of prod- laration of Human Rights, for example, ucts produced by prison labor in October freedoms of expression, peaceful assem- 1991. In August 1992, we signed a Memoran- bly and association. dum of Understanding under which the Chi- —Complying with China’s commitment to nese agreed to investigate cases we presented allow its citizens, regardless of their po- and to allow U.S. officials access to suspect litical views, freedom to emigrate and facilities in China. travel abroad (excepting those who are The U.S. has presented the Chinese gov- imprisoned, have criminal proceedings ernment information on 16 cases of alleged pending against them, or have received use of prison labor. The Chinese have re- court notices concerning civil cases). ported back on all 16 cases, admitting that —Providing an acceptable accounting for in four cases they were forced to correct the and release of Chinese citizens impris- fact that prisoners were being used to oned or detained for the peaceful ex- produce goods exports in violation of Chinese pression of their political views, includ- law. U.S. officials have visited three prisons ing Democracy Wall and Tiananmen ac- and have standing requests to visit five oth- tivists. ers, including a revisit to one facility. —Taking effective steps to ensure that In the past two years, U.S. Customs has forced abortion and sterilization are not aggressively expanded its enforcement of used to implement China’s family plan- U.S. laws banning the import of prison labor ning policies. products. Customs has issued over twenty or- ders banning suspected Chinese goods from —Ceasing religious persecution, particu- entering the U.S., achieved one court convic- larly by releasing leaders and members tion of a U.S. company for importing prison of religious groups detained or impris- made machine tools and seized suspected oned for expression of their religious be- equipment in another case. liefs. Since the Prison Labor Memorandum of —Taking effective actions to ensure that Understanding was signed last August, there prisoners are not being mistreated and has been no indication that goods allegedly are receiving necessary medical treat- produced by prison labor have entered the ment, such as by granting access to Chi- U.S. Talks with China will continue on the nese prisons by international humani- full enforcement of the provisions of the pris- tarian organizations. on labor MOU. —Seeking to resume dialogue with the Dalai Lama or his representatives, and Conditions for Renewal in 1994 taking measures to protect Tibet’s dis- China has made progress in recent years tinctive religious and cultural heritage. in the areas of human rights, nonprolifera- —Continuing cooperation concerning U.S. tion, and trade. Nevertheless, I believe more military personnel who are listed as pris- progress is necessary and possible in each of oners of war or missing in action. these three areas. In considering the optimal —Ceasing the jamming of Voice of Amer- method of encouraging further progress on ica broadcasts. these issues, I have decided to issue the at- The Administration will also use tools tached Executive Order which outlines the under existing legislation and executive de-

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terminations to encourage further progress member the men and women who are now in human rights. serving in our Armed Forces. In addition, I wish to make clear my con- tinuing and strong determination to pursue In the war with Iraq and more recently objectives in the areas of nonproliferation in our peacekeeping operations in Somalia, and trade, utilizing other instruments avail- more names of young Americans have been able, including appropriate legislation and added to the roster of our departed heroes. executive determinations. For example, var- Young service men and women who died in ious provisions of U.S. law contain strong the Persian Gulf joined Americans who left measures against irresponsible proliferation their mark on history at places like the Ar- of weapons of mass destruction and nuclear gonne in World War I, Omaha Beach in weapons technology. These include missile World War II, and Pork Chop Hill in Korea, proliferation sanctions under the National and in the jungles and rice paddies of Viet- Defense Authorization Act. Using these tools nam. as necessary, we will continue to press China Through two centuries and several wars, to implement its commitments to abide by America has remained the land of the free international standards and agreements in and the home of the brave. The Persian Gulf the nonproliferation area. war reaffirmed that international peace and In the area of trade, the Clinton Adminis- tration will continue to battle for full and security depend on our Nation’s vigilance faithful implementation of bilateral agree- and on the sacrifices of our service men and ments with China on market access, intellec- women. Even in this post-Cold War era, we tual property rights, and prison labor. Section must be wary, for the world still remains a 301 of the 1974 Trade Act is a powerful in- dangerous place. strument to ensure our interests are pro- By showing our understanding, we can tected and advanced in the areas of market help further the sense of lives well lived, a access and intellectual property rights. The time on earth well spent, and a heritage of Administration will also continue to imple- service of lasting meaning. ment vigorously the provisions of the Tariff Act of 1930 to prevent importation of goods In respect and recognition of those Ameri- made by forced labor. cans to whom we pay tribute today, the Con- gress, by joint resolution of May 11, 1950 (64 Stat. 158), has requested the President to issue a proclamation calling upon the peo- ple of the United States to observe each Me- Proclamation 6566—Prayer for morial Day as a day of prayer for permanent Peace, Memorial Day, 1993 peace and designating a period on that day May 28, 1993 when the people of the United States might unite in prayer. By the President of the United States Now, Therefore, I, William J. Clinton, of America President of the United States of America, A Proclamation do hereby designate Memorial Day, May 31, 1993, as a day of prayer for permanent peace, Each spring, our Nation pauses to remem- and I designate the hour beginning in each ber those who have died securing our peace locality at 11 o’clock in the morning of that and freedom. Across our country, Americans day as a time to unite in prayer. I urge the are holding ceremonies in remembrance of press, radio, television, and all other informa- those who have died under the colors of our tion media to cooperate in this observance. Nation. We remember the brave men and women whose sacrifices have paved the way I also request the Governors of the United for us to live in a country like America. We States and the Commonwealth of Puerto remember the families of our fallen heroes, Rico, and the appropriate officials of all units and we grieve for their losses. And we re- of government, to direct that the flag be

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flown at half-staff until noon during this Me- Telecommunications Advisory Committee morial Day on all buildings, grounds, and (NSTAC). The President also named Joseph naval vessels throughout the United States T. Gorman and Albert F. Zettlemoyer to the and in all areas under its jurisdiction and con- NSTAC. trol, and I request the people of the United States to display the flag at half-staff from May 27 their homes for the customary forenoon pe- In the afternoon, the President had lunch riod. with the Vice President. He then met with In Witness Whereof, I have hereunto set winners of the U.S. FIRST science competi- my hand this twenty-eighth day of May, in tion. the year of our Lord nineteen hundred and ninety-three, and of the Independence of the May 28 United States of America the two hundred In the morning, the President traveled to and seventeenth. Philadelphia, PA, where he attended private receptions and returned to Washington, DC, William J. Clinton in the evening.

[Filed with the Office of the Federal Register, 12:10 p.m., May 28, 1993]

NOTE: This proclamation will be published in the Federal Register on June 1. Nominations Submitted to the Senate

The following list does not include promotions of Digest of Other members of the Uniformed Services, nominations White House Announcements to the Service Academies, or nominations of For- eign Service officers.

The following list includes the President’s public schedule and other items of general interest an- Submitted May 24 nounced by the Office of the Press Secretary and not included elsewhere in this issue. Everett M. Ehrlich, of Pennsylvania, to be Under Secretary of Commerce for Economic Affairs, vice Jose May 22 Antonio Villamil, resigned. In the morning, the President traveled to Mary Jo Bane, Stratham, NH, and returned to Washington, of Massachusetts, to be Assistant Secretary DC, in the evening. for Family Support, Department of Health and Human Services, vice Jo Anne B. May 25 Barnhart. In the morning, the President met with Submitted May 28 freshman Democratic Members of Congress. Thomas J. Downey, of New York, to be a member of the Defense May 26 Base Closure and Realignment Commission The President appointed Norman R. Au- for a term expiring at the end of the first gustine as Chair and William T. Esrey as Vice session of the 103d Congress, vice Arthur Chair of the President’s National Security Levitt, Jr., resigned.

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Checklist Released May 28 of White House Press Releases Transcript of a press briefing by Assistant Secretary of State for East Asian and Pacific Affairs Winston Lord on most-favored-nation The following list contains releases of the Office trade status for China of the Press Secretary that are neither printed as items nor covered by entries in the Digest of Other White House Announcements. Acts Approved Released May 24 by the President Transcript of a press briefing by Director of Communications George Stephanopoulos Approved May 25, 1993 Released May 25 Transcript of a press briefing by Director of S. 214 / Public Law 103–32 Communications George Stephanopoulos To authorize the construction of a memorial Statement by White House Counsel Bernard on Federal land in the District of Columbia W. Nussbaum on the White House Travel or its environs to honor members of the Office situation Armed Forces who served in World War II and to commemorate United States partici- Released May 26 pation in that conflict Transcript of a press briefing by Press Sec- retary Dee Dee Myers S. 801 / Public Law 103–33 Transcript of a press briefing by Director of To authorize the conduct and development Communications George Stephanopoulos of NAEP assessments for fiscal year 1994

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