THE REAGAN PRESIDENCY - A REVIEW OF THE FIRST TWO YEARS 1981-1982

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CIA-RDP85M00364R001903620015-8
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December 20, 2016
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December 13, 2007
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January 12, 1982
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A d F R I 2007/12/13 ~ CIA RDP85M0036 0019036200158 -~-"""""` pprove or a ease - - TF1E W lil I t F1 V U't ~~ ~ rx?cutiv? R~4istcy CABINS LiIC s ~J~7 S~L~ 1~ ~,~ 1~~-1?RL~1V iD~ DATE: January 12 , 19 8 21VUMBER: 0 7 3 0 6 8 CA SUBJECT: THE REAGAN PRESIDENCY: DUE BY: c.o.b. , Friday anua y A Review of the First Two Years ACTIO FYI ALL CABINET MEMBERS ^ Baker Vice President ^ ^ Deaver State ^ ^ Clark Treasury ^ ^ Darman (For WH Sta,Jj'ingJ Defense ^ ^ Attorney General D ^ Harper Interior ^ ^ Jenkins Agriculture ^ ^ Commerce ^ ~ ^ ^ ^ Labor HHS ^ ^ HUD ^ ^ Transportation ^ ^ ^ ^ Energy Education ^ ^ Counsellor ^ ^ OMB ^ ^ CIA ^ ^ . .................................................... UN ^ ^ CCCT/Gunn USTR ^ ^ ................................................................................. CEA ^ .............. ^ CCEA/Porter CCFA/Boggs CCHRICarleson CEQ ^ ^ ~,p/Uhlmann O~ ~ ~ ~ CCMA/Bledsoe ^ ^ CCNRE/Boggs REMARKS: ACTION FYI. Please review the attached and provide comments/edits by no later than close of business, Friday, January 14. RETURN TO: ~ Craig L. Fuller O Becky Norton Dunlop Assistant to the President Director, Office of for Cabinet Affairs Cabinet Affairs 456-2823 456-2800 Approved For Release 2007/12/13 :CIA-RDP85M00364R001903620015-8 , , Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 N/ASHINGTON January 12, 1983 MEMORANDUM FOR STAFF CLEARING THE ATTAC,~iED TWO-YEAR REPORT FROM: MICHAEL E. BAROOD The attached report on the first two-years of the Reagan Presidency i~s largely an edited compilation of materials prepared by White House offices and Executive Branch depart- ments and agencies. In an attempt to keep the report to a reasonable length, a certain amount of editorial selectivity had to be exer- cised. Your clearance should focus on two areas -- the accuracy ~of what is included, and suggested language for any editorial changes felt necessary. This draft being circulated does not include items II, VIII, or IX listed in the Table of Contents. The draft Two-Year Report is intended for publication next Thursday, January 20, the Second Anniversary of the Presi- dent's Inaugural. Your suggestions and comments by close-'of-business Friday, January 14, would be appreciated. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13 :CIA-RDP85M00364R001903620015-8 IZ~~~~1~I ~~ES~~~laT`~:~1 A REVIE~U OF TI-~E FIRST TWO FEARS 1981 - 1982 _ Approved For Release 2007/12/13 :CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 I. The Reagan Record in Brief .....' ....................... 1 `'~ II. The Reagan Presidency: The First Two Years ......,..... III. Then and Now: Two Years of Progress ................... IV. The Office of the Vice President ...................... V. Economic Policy: A Foundation for Recovery ........... 1. The First Priority: Controlling Inflation .......... 2. The First Step: Controlling Government Growth ...... 3. Building on a Foundation for Recovery .............. 4. Getting People Back to Work ........................ VI. Making Government Work ................................ 1. Strengthening Government ........................... 2. Campaign Against Waste and Fraud .................... 3. Toward Permanent Management Reform .................. 4. Cabinet Government .................................. 5. Restoring a Federal Balance ........................ VII. Other Domestic Policy ................................. N,eeting Human Needs .................................... 1. Better Targeting of Services ........................ 2. Health Care ........................................ 3. Housing ............................................ 4. Education .......................................... 5. Crime .............................................. 6. Civil Rights ....................................... 7. Minorities .................... .................... 8. Women .............................................. 9. Elderly ............................................ 10. Handicapped ........................................ 11. Veterans ........................................... 12. Labor .............................................. Strengthening the Private Sector 1. Private Sector Initiatives .......................... 2. Agriculture ........................................ 3. Commerce and Trade ................................. 4. Consumers .......................................... 5. Small Business ..................................... 6. Transportation ..................................... 7. Environment ........................................ 8. Energy ............................................. 9. Science and Technology ............................. VIII. Restoring the National Defense ........................ IX. Reasserting U.S Leadership ............................ Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 X. Ronald Reagan the Communicator ........................ XI. A Chronology of the First Two Years ................... XII. Meetings with Foreign Leaders ......................... Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 THE REAGAN~RECORD~IN~BFIEF President Reagan came to office convinced that the way to solve America's problems was to build on her many basic underly- ing strengths -- including her economic and military strength. Perhaps the two greatest accomplishments of his first two"years have come in laying a twin foundation for the revitalization of both. Foundation For Economic Recovery In Place 1. Inflation~llas been cut almost two-thirds. == In the two years before President Reagan took office, the consumer price index rose at a rate averaging almost 13%i many economists predicted it would take years to moderate. -- For the 12 months ending Novetr..ber of 1982, the inflation rate was only 4.5%, the lowest in a decade. 2. Interest rates are down by almost half. The prime rate peaked at 21.5% at the end of 1980. Other short and long-term rates were also at record highs. At the end of 1982, the prime was at 11%; FHA mortgage rates were 12% (they peaked at 17.5% in 1981); and 90 day Treasury bills were at 8% (their 1980 high was 15.5%). 3. Taxes~and~tax rates cut substantially. =- Bracket creep and social security tax hikes pushed federal payroll taxes for the average family up in 1980. In the previous 15 years, taxes on the average family went up fourfold. President Reagan's 3 year program lowers tax rates 25% and indexing will help to keep them down starting in 1985. Even with the 1982 tax bill, Americans will pay $335 bil- lion less through 1985 than if 1980 tax rates still stood. 4. Federal spending growth down more than half. == Federal spending grew at a record rate of 17% in 1980. -- Zn FY82, it was cut a third, to 11$ and in the current FY83 it will be down by half -- to about 8%. -- Overall, federal spending has been reduced $55 billion in the two fiscal years completed since President Reagan took office. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 5. Regulatory-growth-also-cut back. -= The estimated number of manhours required to comply with federal red-tape hit 1.5 billion in 1980. == Regulatory relief by the Reagan Administration lowered that number by an estimated 200 million in 1982; over 300 million in the current fiscal year 1983. 6. 1~(eeded human services bein4 maintained -= Federal medical, nutrition and housing assistance to the poor is 28% higher in FY83 than it was in FY80. == Federal programs have been reformed to better target bene= fits to the needy and end subsidies for those better off. No more school lunch subsidies for the wealthy or student loans for the Harvard-bound from $100,000 a year families. 7. L1:S:~more energy independent;~gasoline costs down =- In 1982, prices fell more than 10 cents a gallon, the biggest drop in history and the first drop in a decade. (Decontrol critics had predicted prices would soar to $2.00 a gallon.) == In 1980, the U.S. imported the energy equivalent of almost 6 million barrels a day and produced domestically only about 86% of total U.S. energy consumption. =- In 1982, we produced 91% of total energy needs, importing. the equivalent of just over 3 million barrels a day. Foundation~In Place For Peace Through Strength 8. Real defense growth to reverse long trend =- The President's budget provides for real growth in defense spending to make up for years of neglect and his policies call for comprehensive upgrading of strategic and conven= tional forces -- the first such plan in 2C years. 9. Nuclear arms reductions proposed -- A stronger defense posture has allowed the Presi~de,nt to propose a comprehensive set of arms reductions and talks with the Soviets have begun on U.S. proposals to: =- cut strategic nuclear weapons by one-third; == cut intermediate range nuclear weapons to zero; =- cut conventional forces in Europe to mutually lower levels. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 10. Prospects for Mid=East peace advanced -- President Reagan's prcposals for biid-East peace, announced on September 1, 1982 proposed a fresh start toward a settlement of conflict there that would ensure Israel's security and the legitimate rights of the Palestinians. -- The year ended with historic talks ongoing between Lebanon and Israel (with U.S. participating) on the removal of foreign forces from Lebanon. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 THEN"AND NOW (1980 vs. 1982) Inflation 1979 i Then -- 12.4% . n for the year 1980; was, 13.3% Now -- 4.5% over 12 months ending November 1982; cut by 2/3s under President Reagan. Interest"Rates Then -- the prime hit 21.5% at the end of 1980. Now =- the prime is at 11%, down almost half in 2 years. Then -- 90 day Treasury bills brought 15.5% interest. Now -- interest on T-bills is 8%, also down about half. Federal Spending Growth Then -- growth rate was over 17% in 1980. Now -- spending will grow by half that rate -- about 8% -- this fiscal year (FY83). Federal Income Tax (family of four at median income of $25,000) Then -- under old tax law, typical family would pay $2901. Now -= lower rates cut tax to $2596 -= $305 less. Mortgage~Rates Then -- they were climbing; FHA on the way to 17-18% range. .Now -= they're falling; at present 12-13%, monthly cost of $50,000 mortgage is $200 less than at peak rates of last year. Housing Starts Then -- in 3 year slump, starts down about 1/2 million. Now -- start rate up at year-end to almost 1.5 million, almost 1/2 million above 1981 level. Energy~Dependence Then -- U.S. imported the equivalent of almost 6 million barrels per day. Now -- Imports are down to just over 3 million. Gasoline prices Then -- Decontrol critics predicted $2.00 a gallon gas once controls were lifted. Now -- Price fell more than 10 cents a gallon in 1982; first drop in ten years, steepest ever. Real price lower now than just before decontrol. Regulatory-Relief Then -- the Federal Register averaged 7493 pages a month. Now -- it's down a third, to under 5000 pages monthly. Then -- paperwork took estimated 1.5 billion manhours. Now -- regulatory relief cuts burden by over 300 million. Military Retention Rates Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Then -- rate was 55~, and the military was losing a valua- able pool of experienced manpower. Now -- retention rate, at 68~, is the highest since 1964 and is evidence of overall improvement in morale. Nuolear Arms Reductions Then -- Senate was rejecting flawed SALT II treaty. Now -- serious talks with Soviets on mutual cuts, not just limits. - Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 OFFICE OF ThE VICE PRESILENT Throughout these first two years,, Vice President George Bush has been a close and trusted adviser to President Reagan. He has had a more substantial policy and administra- tive role than any of his predecessors in the office --.just as President Reagan promised. The Vice President has been involved in the development and .implementation of domestic and foreign policy as well as directing Task Forces on Regulatory Relief, Drugs and Crime in South Florida, and investigating the deaths of 28 children in Atlanta, Georgia. The President alsc named the Vice President hairman of the vital Special Situation Group to monitor crises and other international issues. Vice President Bush has travelled extensively on behalf of Republican candidates and Party organizations during the mid=term elections. Foreign~Pol:icy~And National Security Affairs Aside from his full participation in the National Secu- city Council system and private meetings with the President and other Administration officials, a few facts will illus- trate the extent of his activities in this area: He has visited 28 foreign countries and three U.S. overseas posses= sions and has met with more than 320 ranking foreign leaders in the United States and abroad. The Vice President was in charge of U.S. preparations for the important Ottawa Economic Summit in 1981. During an extended trip to Asia, the Vice President met with Chinese leadership and played a substantial role in achieving agree- ment on the August 17 Communique dealing with arms sales to Taiwan. His trips to South America set the stage for Presi- dent Reagan's travels in December 1982 and helped underscore the Administration's commitment to strengthening democracy in the Hemisphere and emphasizing U.S. co~ranitment to economic development through the Caribbean Basin Initiative. The Vice President's trip to Africa was crucial in explaining Adminis- tration efforts for Namibian independence and policies toward the continent as a whole. The Vice President has acted as the President's repro- sentative on a number of important ceremonial occasions. Of= ten these go beyond ceremony. During his trip to Moscow for example, for President Brezhnev's funeral, the Vice President met with General Secretary Andropov in a frank beginning of the Administration's relationship with the new Soviet leadership. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 In December, 1981, when martial law was declared in Poland, the Vice President was made head of the Special Sit= uation Group to monitor the crisis and coordinate information traffic to and from all relevant go~ternm?ent agencies. The~SoutYi?Florida Task~Force On January 28, 1982, President Reagan asked Vice Presi- dent Bush to chair the newly created Cabinet-level South Florida Task Force to address the rampant crime and epidemic smuggling that was terrorizing the once tranquil area of South Florida. He noted that South Florida has become "the Nation's major terminal for smuggling of illegal drugs into the United States", and that "the Federal Government has a special responsibility to fill in temporarily and do what it can to reduce and, it is hoped, to eliminate these problems." The .Task Force program increased the number of jails, ccurt rooms, judges and prosecutors, increased the presence of the Drug Enforcement Agency, the FBI, Customs, Immigra- tion, Alcohol, Tobacco and Firearms Division and the Internal Revenue Service. Zt stepped up offshore surveillance, and intensified cooperation with source countries Bolivia, Colom= bia, Peru and with the Bahamas. It cracked down on banks involved with the laundering of drug money. The Task Force operation has significantly reduced smug= gling of narcotics and other controlled substances into South Florida and has disrupted trafficking patterns and strate- gies. A survey for the first ten months of the program dis= closed in 1,826 arrests, the seizure of over 2,000,000 pounds of marijuana and 6,000 pounds of cocaine as well as numerous other illegal drugs and firearms. Domestic-Policy In February, 1981, the President announced the estab- lishment of a task force, with the Vice President as Chairman to coordinate federal efforts and assist local authorities in the investigation of 28 murdered and missing children in Atlanta, Georgia. The Task Force, through federal agency contributions, raised over $4 million to increase the commu= nity's mental health, crime prevention and investigative capabilities. Additionally, the Task Force provided consid- erable technical and programmatic assistance to support the investigation. On September 15, 1981, tY~e President signed an Executive Order to strengthen historically Black colleges and univer- sities through development of entrepreneurial partnerships Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 with the private sector. At the President's request, Vice President Bush is playing a significant role in the imple- mentation of the Executive Order. This ongoing effort has already seen an increase in federal ,funding to the institu= tions (in a time of declining Federal resources) and the planning of joint college/corporate activities. Task-Force on Regulatory Relief Shortly after taking office, the President named the Vice President Chairman of the Administration's Task Force on Regulatory Relief, which oversees the implementation of the third major leg of the Economic Recovery Program (following tax and spending reductions). This Task Force took the lead in developing Executive Order 12291, which the President signed on February 17. It provides for central activities under the supervision of the Task Force. The Presidential Task Force on Regulatory Relief chaired by the Vice President, continued and expanded its activities during 1982. To date, the Task Force has designated 119 regulations for agency review. Final action has been com= pleted on approximately one-half of these regulations, while reviews are in advanced stages of consideration with respect to more than half of the remaining targeted regulations. Aggregate savings over the next decade as a result of the regulatory changes which have been completed amount to over $70 billion, with savings of roughly $10 billion in one=time investment costs and another $6 billion in annual recurring cost savings. Additional unquantified but substantial sav=. ings have resulted from a sharp reduction in the issuance of new regulations since the beginning of the Administration, due in part to review procedures and standards applied by the Task Force. Under the Vice President's leadership the Task Force also has begun to develop proposals for legislation in a number of substantive areas where broader efforts should be made to reduce the government's intrusion into the private economy, alleviate needless paperwork burdens or reconcile conflicting legislation or regulatory policies. One example of such an effort is the Task Group on Regulation of Financial Services, which is chaired by the Vice President and includes top Administration policy makers and the heads of all federal agencies with regulatory respon= sibilities for financial institutions. The Task Group, which is unprecedented in composition, will recommend legislation during 1983 to reduce overlapping and inconsistent regulatory activities affecting all types of financial servies. Other Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 legislation dealing with environmental law, transportation, regulatory procedures, energy and telecommunications has been reviewed by the Task Force and may be pursued further during 1983. Political-Activities _ The Vice President traveled more extensively on behalf of Republican candidates and in support of the Republican Party than any Vice President in history. Over the past two years, he has travelled to 46 states, attended 189 political events and raised over $28.8 million on behalf of Republican candidates and the Republican Party. In general, Vice President Bush's day to day responsi= bilities include attending high level meetings on both foreign and domestic issues with the President as well as working with members of the House and Senate. As the President of the Senate, Vice President Bush has worked diligently as an advocate of President Reagan's policies in the Congress and has played a key role in assisting the President to obtain Congressional support for major foreign and domestic legislation. Overall, Vice President Bush has logged more than 314,000 miles since becoming Vice President. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 ECONCI~SIC -POLICY When President Reagan took office in January of 1981, the nation's troubled economy suffered from problems that were seemingly out of control. For decades, tax and spend, borrow and regulate, had been the prevailing themes of feder= al fiscal policy and had provided the means for financing an ever=expanding role for the federal government. By the late 1970s, the legacy of past policy excesses -- quite literally -- had become painfully clear. == Inflation was soaring. In double-digits for 2 consecutive years, it was viewed by many economists as a structural problem that was built into the economy and would take most of the 1980s to bring back under control. == Federal spending was growing at record rates. In 1980, it grew at a peace-time high of over 17 percent and seemed, to almost all observers, to be out of control. Taxes were skyrocketing. In the previous 15 years the tax burden had quadrupled -- and it was slated nearly to double in just the next five, unless changes were made. == Interest rates were higher than ever since the Civil War. The prime peaked at 21.5 just before the Inaugural. =- Economic growth had virtually halted at the start of 1979 and restarting it was the prime goal of policies place during President Reagan's first two years. put into == Regulations issued by the federal government had become~a $100 billion a year burden on business -- requiring 1.5 billion manhours a year for paper-work complianc"e and fur- they stifling job-creating growth. == All of these problems combined to fix unemployment at per- sistently high rates. Tragically, but predictably, it soared in the early 80s -- in the aftermath of surges in inflation -- just as it had done twice before in the 70s. The"First~Priority -- Getting Inflation Under Control In 1980, the American people agreed overwhelmingly that inflation was the nation's number one problem and it had to be solved. N?any experts thought it would take years to do so. The problem had been building since the late 60s (prices more than doubled in the 70s). Inflation was hurting individuals and their families, and it was stifling the economy. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 . By 1982, inflation rates had been more than cut in half and, throughout that year, they continued to moderate. The consumer price index for the 12 months ending in November 1982 rose only 4.5 percent -- the lowest inflation rate in a decade. == For~American~farr.ilies, lower inflation meant higher pun= chasing power. A median income family in 1982 (earning about $24,000) was about $1,500 better off than if infla- tion had stayed at 1980 rates. (Lower taxes added to this advantage.) For-t2ie economy, more stable prices meant that interest rates -- the biggest single obstacle to recovery -- could start coming down. After dropping gradually the first 18 months, they began to fall more rapidly in the summer of 1982 as confidence increased that government restraint and lower inflation might be here to stay. For~the~Federal government, lower inflation was a mix of good news and bad news. Costs for some inflation adjust- ed programs were held down but the unprecedented drop in inflation -- exceeding even the Administration's forecasts and expectations -- also meant slower revenue growth. So the unprecedented progress against inflation, ironically, contributed to the deficit. The~First~Step~== Getting Government Under Control At his inaugural, President Reagan became chief execu= tive of a government growing at such a rate that spending was slated to surge 50~ and taxes virtually double in the next five years. The budget he inherited for fiscal 1981 proposed to consume 21.4$ of the Gross National Product in revenues collected, and to spend an even larger 23$ of GNP. And these percentages would stay far too high far into the future, un- unless changes were made. In 1981, President Reagan proposed a comprehensive plan for reducing the growth of spending and for reducing tax rates to begin reining in the government's appetite. While Congress did not give the President all he asked, in June of 1981 he enjoyed one in a series of historic legislative vic- tories by obtaining passage of the Omnibus Budget Reconcilia- tion Act -- Gramm-Latta II -- which cut spending for fiscal 1982 by $35 billion. The next month, on July 29th, Congress sent the President the Economic Recovery Tax Act of 1981, authorizing a 3 year, 25~ reduction in individual tax rates, a subsequent indexing of income tax rates, accelerated cost recovery for business and various other tax cuts and reforms for individuals and business. By Fall of 1981, much though not all of the President's program for economic recovery had become law: the spending and~tax reducesions would begin with the start of the new Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 fiscal year on October 1st. One major tax bill was enacted in 1982, the Tax Equity and Fiscal Responsibility Act, which enjoyed the President's support. It was signed into law on This bill improved the fairness of the tax system by eliminating abuses, stepping up tax enforcement and collection activities and doing away with some out-dated tax incentives. Part of a package of tax reforms and spending reductions, the bill in- creased receipts by $98 billion through 1985. It left undis- turbed the individual rate cuts, and most of the business in= centives in the 1981 tax law -- and even with its enactment America's tax bill will be $335 less through 1985 than it would have been at 1980 tax rates. The 1981 tax bill had pared some of the cuts requested by President Reagan and added certain additional tax reduc- tions he had not requested or had planned to hold for a second tax bill. The net result was a total tax reduction somewhat larger than the President sought. The 1982 tax bill restored some of this revenue and President Reagan supported it as called for in the 1982 Congressional Budget Resolution which promised to combine higher revenues with lower outlays in an overall deficit reduction of $380 billion through FY85. Maintaining spending discipline, however, proved less easy for Congress than increasing revenues. The President employed the veto when necessary to keep spending in line. He rejected a supplemental appropriations bill in August that exceeded his request by $ billion and contained an addi= tional $3 billion provision to bail-out the housing Indus= try. (The President argued the bail-out was unnecessary and the surge in housing activity within the next 6 months bore out his position). As the Fall election neared and Congress prepared to adjourn for the final weeks of the campaign without complet- ing the regular appropriations process (only 3 of 13 bills had been finally passed) the President called for a special "lame=duck" session. It convened at the end of November and did succeed in working with the President to complete the full=year appropriations process for the first time since 1979 and to do so at spending levels consistent with the Budget Resolution. (Congress did not finish the FY83 budget until almost 3 months of the new fiscal year had passed and it took a veto threat by the President to head off last- minute efforts by Congress to add as much as $5 billion in pork=barrel spending to the budget.) Throughout the first two years, not surprisingly to the President, his economic recovery program would be criticized and attacked -- but despite efforts to undermine and revise it during 1982, at year's end the program remained intact. The federal government had spent $55 billion less and taken $ billion less in taxes as a result. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Starting~To~Build On The Foundation For Recovery As 1982 drew to a close, the President's program had been in operation just over a year but evidence was mounting that a long-sick economy was on the mend.. Working Americans were better off, and the conditions which had brought job creating growth to halt for more than four years were being corrected. - Interest rates fell dramatically in the last half of 1982. The prime fell 4 full points, government mortgage rates ended the year 5 1/2 points lower than the year before and many short term rates were down by half or more. Housing starts, sales and permits surged as a result (the November 1982 start rate was 2/3s higher than the November 1981 rate) as millions more Americans were able again to afford a home of their own -- and a bedrock American in- dustry began to emerge from a four year slump. Auto sales brightened too, at year's end with car loan rates under 12%, their lowest in years. Sales edged up in late Fall and surged to in December, the industry's best performance in years. Purchasing power for America's working families improved as Lower taxes let them keep more of what they earned and Lower inflation made their earnings worth more. In fact, a typical family (at $24,000 median income) had about $2000 more purchasing power than it would have if 1980 tax and inflation rates had stayed in place. As the second year of the Reagan presidency came to an end, there were other strong indications his program was working, making real progress toward a more promising future for all: == Personal savings were up, with the savings rate a full point and a half higher than in 1980; == Personal income was rising -- even after inflation it was up 1.4~ over these two years -- reversing a declining of the previous two years; == Retail sales ended 1982 6% higher than in 1981; -= Leading economic indicators index was up in 7 of the last 8 months of 1982 -- a strong sign of coming recovery; == The stock market rebounded; the Dow-Jones average setting a record in late 1982 and investors started the new year showing renewed confidence about the economic future. 4Jith taxes, spending growth, inflation and interest rates being brought under control, the most important and ur- gent remaining priority was unemployment. Always, in recent years, inflationary surges had been followed by jumps in un- Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 employment. The lack of economic growth dating to the start of 1979 only worsened the problem and -~ tragically, though almost inevitably -- the jobless rate rose. The~Most Urgent Priority---Getting People Eack to Work By the 1980s, the post-war relationship between high inflation and high unemployment had been well established by experience. Three inflationary surges in the '70s had been followed, predictably, by periods of rising unemployment. The latest unemployment surge, to double-digits in 1982, like :.the two previous increases in the '70s, started within months after inflation peaked. The high unemployment of 1982 was as predictable as it was avoidable -- if only earlier policy had kept inflation in check instead of allowing it to rise to double=digits in 1979-80. President Reagan is determined to keep inflation down as the only way to get unemployment down to stay. In the past, public policy re=inflated the economy just as unemployment started to improve, stalling the decline in the jobless rate and eventually starting it back up. Despite claims made for economic stimulus and federal "jobs" programs, real growth in a non-inflationary environment remains the only proven route to full employment. The year 1982 ended with President Reagan committed as ever to a real and lasting solution. When the lame-duck ses- sion of Congress considered a multi-billion "jobs" program and seemed on the verge of its final passage, President Reagan labelled it "pork-barrel" and threatened a veto. Add- ing as much as $5 billion or more to the deficit for a pro- gram that couldn't create the 300,000 jobs proponents claimed and wouldn't spend some of the money for jobs it would create until 1985 was no solution, the President argued. The higher deficit, he suggested, would only add to the economy's troubles. In contrast, throughout 1982, President Reagan pursued his general plans for economic recovery and, as opportunities arose, he supported and pushed for additional legislation that could ease joblessness or the plight of the unemployed: Twice during 1982, unemployment insurance benefits were extended. By the end of the year, people out of work in the hardest hit states were eligible for up to 55 weeks of benefits; The failed CETA program was replaced with the Job Training Partnership Act to train more than 1 million people a year in skills needed in a changing private sector jobs market; The President's Export Trading Company legislation -- ex= pected to help create over 300,000 jobs -- became law in the Fall of 1982; The Administration's highway repair initiative, passed in Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 the lame-duck session, would begin creating jobs in 19Q3, with the total expected to exceed 300,000. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 "It is not my intention to do away with gcvernment. It is rather to make it work -- work with us, not over us; to stand by cur side, not ride cur back," Ronald Reagan Inaugural Address January 20, 1981 By 1980, the explosive post-World War ZI growth of the Federal government had taken a devastating toll on the P.meri- can system of government and on the American way of life. As the government grew, it became more bureaucratic, distant, and unresponsive. Waste, fraud, and plain mismanagement be- came increasingly common while even the simplest transaction with a Federal agency could be a source of confusion and frustration for many of cur citizens. As the Federal gov- ernment grew, it came to overshadow other institutions from State governments and local communities to private organiza- tions and voluntary groups, to churches and even the family. Ronald Reagan assumed office committed to making govern- ment work; to reducing its size; and to correcting the prob- problems brought on by its uncontrolled growth. Despite the skeptics, the President was firm in his conviction. He assembled a team of men and women. who shared his belief in the vital importance of the task. "We must remove the government's smothering hand from where it does farm", the President said early in 1981, and "we must seek to revi- talize the proper functions of government." 1. Streamlining Government Slowly but surely, the President is proving that less government can lead to better government. A prime example is the elimination of the ineffective CETP. program and its re- placement with a more efficient, less costly program -- the Jeb Training Partnership Act of 1982. Gperating as a program of block grants to the States, the JTPA will spend 70 cents of every dollar on actual train- ing (contrasted with 18 cents under the predecessor CETA pro- gram). In addition, unlike CETA, the President's program will place participants in skilled, private sector slots -- not dead end make-work public sector slots. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 `-Then the Fresident took office, Federal regulations were costing Americans upwards of $100 billion a year. There were 100,000 pages of Federal regulations on the books and Rsneri- cans were spending an estimated 1.5 billion hours each year filling cut forms and providing information to Washington. Simple tasks were quickly becoming administrative nightmares. Under Ronald Reagan this is being reversed. One ~of the President's first acts upon taking office was the creation, on January 22, 1981, of the Task Force on Regulatory Relief, chaired by Vice President Bush. Working closely with the Office of Management and Budget, the President's Task Force has made significant inroads in reducing government red-tape. During the first 22 months of the Reagan Administration, pages in the Federal Register were down 34$, proposed rules were down 33~, and final rules were down 21$. During the same period, the paperwork burden imposed on Americans by the Federal government was reduced by 200 million manhours, with current projection for 1983 indicating an additional 127 million manhour reduction. Adoption of a common claim form for use by Medicare, Medicaid, and third party papers, for instance, has saved 10 million manhours, while simplification of the Internal Revenue Service's Form 1C40 will save 31 million manhours. Under President Reagan, Federal employment has been cut for two consecutive years -- the first time this has been done since World War II -- and only the fourth time since then that Federal employment has actually dropped. The President's first official action after being sworn in was aimed at getting control over the growth of the Fed- eral workforce. On January 20, 1981, President Reagan signed . an Executive Order freezing all Federal civilian hiring until such time as a full assessment of Federal personnel needs could be made. That assessment came in his March 10, 1982 budget revision which called for permanent reductions of 33,000 in fiscal 1982 alone. Later that year, on September 24, the President proposed an additional 75,000 reduction in civilian non-defense personnel through fiscal 1984. Administration statistics now show that by the end of fiscal 1982, non-defense and non-postal Executive branch employment was reduced by 66,872 full-time equivalent employ- ees or 89.3$ of the President's 1984 goal. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Executive Branch ,_~-Fe3e~ra1-I~on-=Defense/Non-Postal Civilian ~ Permanent Em to mint Total Full-Time Equivalent Slots _` _ - ~. FY'81 (actual) FY'82--(-actual) .--rifference \__ 1,162,000 1,095,128 ~ 66,872 In addition, while major progress has been made on personnel reductions, 90~ of the reductions have been trirough attrition. 2. The?Campaign Against Waste and Fraud President Reagan came to office promising a hard=hitting no=nonsense campaign against waste and fraud in programs of the Federal government. After two`~j~ears in office, the President has made significant progress toward fulfilling his commitment "to follow every lead, root out every incompetent and prosecute every crook that we found cheating the people i of this Nation." To carry out this commitment, the President created the Council on Integrity and Efficiency in March of 1981. The Council, chaired by the Deputy Director of the Office of Man- agement and Budget and comprised~of the Inspectors General from 18 major Departments and agencies, the Deputy Attorney General, the Director of the Office of Personnel Phanagement and the Assistant Director of the FBI's Criminal Investiga-. tions Division, provides the wherewithal to do a job long~ir. need of doing. ~ _ Through the various Inspectors General, the Council is covering every aspect of government activity. Since its creation the Council has been responsible for: -- 34,621 separate investigations -- 3,869 indictments -- 2,967 convictions -- $16.9 billion in savings and recoveries -= 574 Federal employees fired Under the Reagan Administration, the Federal government for the first time in history, has a comprehensive program to assess and track down waste and fraud. Prior to the. Reagan Presidency no one really knew how extensive the problems were or how best to correct them:. This is now changing. Beyond rooting out waste and fraud, the Council is also prescribing methods of stopping it. One method already in effect is the use of computer matching of government grogram beneficiaries. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 .. __ Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 - Since this practice was begun, over $4.7 million in overpay- ments has been prevented. Audit~Follow=Up: The Administration has implemented a highly successful program to promptly resolve and implement audit recommendations of the Inspectors General and the General Accounting Office. The result is fighter control over Federal spending and tougher policing of government accounts. By the end of 1982, the value of unresolved audits over six months old had been reduced to $136 million, compared to unresolved audits over 12 months old of $1.5 billion in January 1981. Improved Internal Control: Agencies are working to implement the ONB Circular requiring the installation of strong systems of internal control to further inhibit fraud, waste and abuse. In addition, agencies are participating in an Advi- sory Council to establish guidelines in accordance with the Federal Managers Financial Integrity Act cf 1982. Cash Management: All major agencies have designated senior Cash Management Officers and have submitted plans for improv- ing their cash management practices by: =- Speeding up deposits into the U.S. Treasury. -- Controlling timing of payments so they're neither early nor late. -= Eliminating excess balances held outside the Treasury. Debt-Collection: Approximately $260 billion is currently owed to the Federal Government and over $40 billion of this amount is delinquent or in default. -- In April 1981, President Reagan ordered all agency heads to institute more effective debt collection and ordered the U.S. Attorney's Offices in the Justice Department to actively pursue collections from individuals referred by agencies. -- Special efforts by the Administration have resulted in at least $2.1 billion in additional collections in 1982 than otherwise would have been collected. Additionally, Administration debt collection efforts yielded $3.7 billion in fiscal 1981 and $46.6 billion in fiscal 1982. -- The Administration also proposed, and Congress passed, comprehensive debt collection legislation aimed at revo- lutionizing Federal credit management and debt collection practices. Publications Review: PJasteful expenditures on government publications and audiovisual materials become an obvious tar- get for elimination and economies. A presidential directive issued in April 1981 has resulted in: Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 -- termination or consolidation of 2,000 publications or one out of every six published in 1980; -- reduction of publication costs by 23$ in FY 82 over FY81. 3. Toward Permanent Aanagement Reform Complementing the President's campaign against waste and fraud are his efforts to bring improved management and admin- istrative techniques to the the Federal government. The ef- '?forts of the President's Council on Integrity and Efficiency and the work of a Inspectors General, put in perspective for the first time how serious the problems of mismanagement within the government have become. T1^.eir work has gone a long way in policing the government and in providing recom= mendations for corrective action. In addition to the Coun= oil, the President has undertaken other, closely related efforts to ensure that needed corrections are not only iden= tified, but implemented. Reform?8E: Launched on September 22, 1982, Reform 88 is a long-term project to affect permanent improvements in the management and administrative systems of the Federal government. The Reform 88 group is comprised of a staff project office within the Office of N,anagement and Eudget, a Steering Committee composed of all departmental Assistant Secretaries for Management, and the Inspectors General. It is both overeen and represented at the Cabinet level by the newly formed Cabinet Council on Management and Administration chaired by Presidential Counsellor Edwin Meese III. Reform 88, for the first time, provides the Executive Branch with a comprehensive and coordinated program to bring about needed changes. Already Reform 88 has implemented short term improve- ments projected to save the taxpayers $13.7 billion in 1983 alone. Other Reform 88 accomplishments include: -- A review of OMB regulations which resulted in a 25$ reduction in budget guidelines in time for the 1984 budget cycle, with another 15-25$ reduction in CI~?iB management regulations anticipated. -= A review of procurement regulations is expected to in the elimination of 8,000 out of 20,000 pages of mary regulations and the elimination of 50$ of?the than 60,000 pages of seconc+ary regulations. result pri- more -- Comprehensive study of major administrative systems with- in departments has identified~677 different systems. The Reform 88 goal is to install model, compatible management Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 systems, government-wide. President's Private Sector Survey on Cost Control: Announced by the President on February 18, 1982 the PP~SCC represents both another step in the President's efforts to end mismanagement and his commitment to reach outside government to seek expertise, advice and answers to some of the nation's problems. The Survey is chaired by J. Peter Grace and comprised of experts and staff from the private sector. Each member has a distinguished record in business and management. The Survey is also financed entirely by the private sector at a cost to the government not expected to exceed $100,000. Patterned after the President's highly successful efforts while Governor of California, the survey will bring objective, third party assessments of the workings of all major Federal departments and agencies. The President's mandate to the group was to "roll up their sleeves and search out waste and inefficiency wherever it's to be found in the Federal establishment." The Survey, which was organized into 36 task forces, will report directly to the President. Its final report is due in early 1983. Indeed, its work has already had a posi- tive impact on the workings of government. A recent General Accounting Office report to Congress said of the Survey: "Most agency conctacts viewed the task forces as positive attempts to identify cost savings ... Many said that (the) task force's presence forced them to improve operations ..." It will be the responsibility of the new Cabinet Ccuncil on Management and Administration to act on its findings and im- plement its recommendations. 4. Cabinet~Government Under President Reagan, Cabinet government has become a working reality. The President was determined to use his Cabinet Officers not just as department managers but as a consultative body. To that end, on February 26, 1981, the President formally constituted the Cabinet Council system with the creation of the first five Cabinet Councils. They are: -- The Cabinet Council on Economic Affairs, chaired by the Secretary of the Treasury; -- The Cabinet Council on Commerce and Trade, chaired by the Secretary of Commerce; -- The Cabinet Council on Human Resources, chaired by the Secretary of Health and Human Services; -- The Cabinet Council on Food and Agriculture, chaired by the Secretary of Agriculture; and, -- The Cabinet Council on Natural Pesources and the Environ- Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 ment., chaired by the. Secretary of the Interior. Suring 1982, two additional Cabinet Councils were esta- blished: -- The Cabinet Council on Legal Policy, established on January 29, 19II2, chaired by Attorney General William French Smith; and, -- The Cabinet Council on Management and Administration, established on September 22, 1982, and chaired by Presidential Counsellor Edwin Meese III. Each meeting of the Cabinet Councils provides an oppor= tunity to discuss policies, allows for inter-departmental discussion and coordination, and affords a basis for making recommendations to the President. There were also two pre-existing Cabinet level groups =- the National Security Council and the Trade Policy Committee. Recommendations from these Cabiner groups flow into the deci- Sion making process of the White House Office and facilitate the President's ability to manage information, make decisions and govern. Over the course of the first two years the Cabinet Coun- cils have met a total of times, times with the President in attendance. Also, the full Cabinet has held 56 meetings, 50 of them with the President. 5. Restoring a Federal Ealance Of all the sectors of American life that suffered from the excessive growth of the Federal government, perhaps none lost more than State and local governments. Federal programs and Federal regulations continually reduced the roles and re- sponsibilities of the states and localities. Often, Federal programs bypassed the States entirely, making localities more dependent upon Washington than their own State Capitals. As power shifted to Washington, local voices, concerns, and needs were lost in a maze of national programs and prcgram requirements. Federal programs were often inflexible, pocrly serving local needs, while paper work and reporting back to Washington consumed more and more State and local manhours and dollars. President Reagan came to office convinced cf the need to reverse these trends and to view the States once again as political partners -- not merely as agents of the Federal government and implementors of policy made in Washington. "It is my intention", President Reagan stated during his Inaugural Address, "to curb the size and influence of the Federal establishment and to demand recognition of the dis- Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 tlneLlon DeLween Lne F:c~weLS yLdiiLCU Lv ~ciC rCUCLdl government and those reserved to the States or to the people. All of us need to be reminded that the Federal government did not cre- ate the States; the States created the Federal government." Early in his Administration, President Reagan began efforts to fulfill his commitment to federalism and insure that State and local governments regain greater flexibility and independence from Washington. It is well worth remembering that three of tie four key components of the President's Economic Recovery Package -- budget cuts, regulatory relief, and tax cuts -= reflect the President's federalism perspective. The budget cuts reflect a reordering of budgetary priorities so that the national budget is addressed at truly national needs. The regulatory relief effort, has made great strides in reducing the regulatory manacles which bind the hands of State and local officials. Tax cuts provide a greater tax base for State and local governments by reducing oppressive levels of federal taxation. B1ock~Grants: On October 1, 1981 -- the beginning of Fiscal Year 1982 -- the nine new block grants enacted as part of the Economic Recovery Program of 1981 became effective. These consolidated 57 narrow and restrictive categorical grant programs into broader programmatic areas. The result was greater flexibility for State and local officials to target funds to specific needs most urgent in their locales. Block grants also provide for greater accountability because decisions are made by officials closer to the people. At the same time they save in administrative overhead and allow for . more innovation. A major result of the new block grants was the reduction of 318 pages of Federal regulations to only 6 pages. The new block grants consolidated programs of: o Maternal and child health care o Preventive health and health services o Alcohol, drug abuse and mental health services o Primary care o Social services o Low=income home energy assistance o Community services == The White House Office of Intergcvernmental Affairs anc7 the Office of Management and Budget, iri cooperation with appropriate Departments, held a series of regional briefings as part of a major effort to assure a smooth transition to, and effective implementation of, these block grants. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Several additional block grants were proposed by the President in 1982, and a Job Training Block Grant was signed into law on October 13, 1982 replacing the Comprehensive Employment and Training Act (CETA), which expired on September 30, 1982. ' Regulatory Relief: One high priority of the President's overall regulatory relief efforts was to examine Federal regulations that impact on State and local governments. Of the 119 regulatory reviews completed by the President's Task 'Force by Summer 1982, 35 were related to State and local governments. =- The President also signed Executive Order 12372 which allows States and localities to identify program regulations in need of review. 4v`herever possible, Federal agencies are required to comply with the requests. Federalism Initiative: With the announcement of the Presi- dent's Federalism Initiative in his January 1982, State of the Union Message, federalism was moved to the forefront of public debate. This reversed a fifty year trend in which the relentless gravitation of power to Washington was accepted as practically inevitable and irreversible. The President characterised his 1982 Federalism Initiative as a conceptual framework, and said that legislation would only be sent to the Congress after thorough consultation with State and local officials. Throughout the year, the President and White House staff met with development teams representing the nation's governors, state legislators, county, city, and township officials to fashion a federalism program which would have broad-based support by elected officials at all levels of government. As a result of that yearlong consultative effort, legislation will be submitted to Congress in early 1983 to achieve a permanent sorting out of responsibilities. An-Ongoing Effort To P.dvance Federalism: The Presidential Advisory Committee on Federalism was established in April, 1981. It consists of Cabinet members, Federal, State and local officials, as well as private citizens. The Committee advises the President on objectives and conduct of the overall federalism approach. == Fcr the first time in many years, the Executive Branch participated actively in the Advisory Commission on Intergovernmental Relations (ACIR). -- Each Cabinet member and agency head designated a senior departmental official to handle intergovernmental affairs in each department or agency. These individuals consult Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 with State and local officials and monitor programs to assure their positive effect on the State and local sector. -- President Reagan himself has pursued an active outreach effort meeting with numerous State and local officials both in the 4v-hite House and across the country. During his first two years, the President has also addressed the National conference of State Legislators, the National League of Cities, the National Association of Counties, the National League of Cities and four joint sessions of State legislatures. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 ccMESTzc-PCLIC~ Meeting Human Needs Strengthening the Private Sector President Reagan's objective has teen to restrain the growth of government in order to restore growth in the private sector. The challenge has been to do it in a way that continues services to those who need them, cuts them off for those who don't, and improves efficiency throughout government so that all Americans, taxpayers and program beneficiaries alike, get maximum value from the money spent by government. Two years is too short a time to fully acYiieve that goal -= but it's been long enough to make progress and to prove the goal is a realistic one: o Needed human services are being maintained; o Niany programs which once aided the non-needy -- some subsidized middle and higher income Americans -- have been reformed; o Pillions have been saved through a war on waste, fraud and abuse of federal programs; and o Mountains of regulatory red-tape have been moved out of the way of state and local governments and of business. Meeting Human Needs o Federal medical, nutrition and Housing assistance to the poor is 28~ higher in fiscal 1983 than it was in fiscal 1980. o In fiscal 1983 , spending by the LeF?artment of F;YS? alone will be 36$ of the total budget and HHS will spend $50 billion more than the Pentagon. Total social spending under President Reagan's budget plans for the next five years will approach $2 trillion. o Total human needs spending in 1983 by the federal govern- ment will fund such services as the following: 95 million meals per day, about 1-in-7 of all meals served; medical assistance for 99~ of the nation's elderly; housing assistance for more than 10 million Americans; food stamps for more than 17 million low-income people; higher education assistance for almost 6 million students; unemployment compensation for 5-6 million job-seekers; job training for 1 million young and poor people. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 1. better~Targeted~Prcgrams~for~the~IGeedy Before a joint session of Congress shortly after he took office, President Reagan emphasized his commitment to the nation's needy: "Yde will continue to fulfill the obligations that spring from our national conscience. Those who, through no fault of their own, must depend on the rest of us...can rest assured...." President Reagan's policies reflect that commitment. However, when he took office, he was faced with t2ie challenge of controlling escalating costs while continuing tc prcvide aid to those in true need. Without action, the problem would only get worse and costs continue to rise beyond the budget's ability to meet them. In 1981, the year President Reagan took office, entitlements spending comprised about 48 per- cent, nearly half, of all federal spending. In the last decade alone, food stamp outlays had risen more than 1800 percent and housing assistance outlays more than 1300 percent. Under President Reagan, social service spending has continued to increase, but the rate of increase is being brought under control: The fiscal 1982 budget provided $11.3 billion in food assistance to almost 21 million low-income persons at an average household benefit of $103 per month. All told, about 95 million meals are subsidized by the federal government each day -- nearly 15 percent of all meals served in the U.S. Those eligible: families of four earning under $12,000 yearly can receive food stamps; those earning under $17,400 can receive reduced price school ' lunches and are also eligible for the Special Supl:lemental~ Food Program for Women, Infants and Children. As of December 10, 143 million pounds of cheese and over 12 million pounds of butter had been distributed through the Reagan-initiated surplus dairy distribution program. The program has been extended through December 1983. N:HS spending on its social programs increased $24.1 billion' in 1982 with cash and medical assistance for the poor up $80G million. In 1983, HHS spending will be over 36 percent of the federal budget. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 President Reagar. came into office committed to maintaining needed government services for people who had nowhere to turn but tc government for help. He was equally committed to his belief that these services could be provided better and more efficiently. And he believed the skyrocketing costs of providing them could be restrained. The President's ccmmitment to maintaining needed services at lower future costs required that programs to provide them be managed better and, in many cases, that eligibility formula `'for distributing them be better targeted. Too many federal benefit dollars were going to the non-needy through fraud and waste; too many more were going, quite legally, to middle and even upFer-income Americans because eligibility was too broadly drawn. 8500 Social Security checks a month to the deceased, student loan subsidies to $100,G00 a year families, school lunch subsidies for the affluent -- these and other examples flew in the face of Congressional intent and ex- ceeded the bounds of the American people's generosity. In the President's view, they had to be changed. President Reagan feels strongly that every benefit dollar wasted or sent to the non-needy, the greedy or those eligible just because the formulae are too loosely drawn is a dollar not available to the needy in benefits. To avoid this, major changes in the laws governing program eligibility have been worked out with Congress. tiany abuses are now a thing of the past. More remains to be done, but progress has been made in ending many middle and upper class subsidies. For example: Student loan eligibility for Harvard-bound students from $100,000 a year families has been eliminated. o School lunch subsidies have been retargeted so that almost all funding now goes to children from families earning 130 of the poverty level or less -- not to the children of the affluent suburbs. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 2. Responding-to the IQation's~Nealth Concerns In a press conference in 1981, President Reagan brought the problems of three-year-old Katie Beckett -- and others like her -- tc the attention of the nation. Inflexible Medi= caid regulation forced Katie to stay in?a hospital because payments for home care were not allowed though costs would be lower. Because of Administration action, Katie was home by Christmas of that year and by early 1982, HHS had streamlined the waiver procedures so that states could more fully utilize home and community care. So far, two-thirds of the states have applied for these waivers. The Katie Beckett case typifies President Reagan's over= all goal for health care policy: to provide readily avail- able, compassionate care while curtailing rapidly escalating costs. His Administration is achieving this goal by stimu= lating private innovation at the local level, promoting health care competition, encouraging innovative alternatives to institutional care and reducing unnecessary regulatory burdens, waste and fraud. For example: -- To Yielp curb skyrocketing medical costs, the President has instituted regulations to restrain physician and hospital costs as well as eliminate excessive and duplicative pay= ments. Resulting savings will be $1 billion in fiscal 1983 and more than $5 billion over the next three years. -- To increase state and community involvement in health care, 25 individual HHS programs were consolidated into seven new block grants -- four of which concern health. As a result, states have more latitude to meet their own specific needs and duplication, reporting, red tape and overhead costs. are reduced. == Regulatory reforms have strengthened the nation's drug approval process. Eventually cutting approval time will be cut by 20 percent and paperwork by 70 percent. Already, the Food and Drug Administration has set a new record for the number of new chemicals approved for drug use -- more than 40 approvals during the last two years, compared with only 12 in 1980. Such measures have actually helped to strengthen the President's commitment to the nation's health and research needs by stretching taxpayer dollars to deliver services more efficiently. And, under President Reagan, spending has continued to grow. For example, basic health research funding was increased by $144 million for fiscal 1981 and an additional $72 million for fiscal 1982. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 As a result, health-related activities continue at record pace. For example, in 1982, many childhood diseases were brought almost entirely under control, with immunization levels reaching new highs and the cases of measles, rubella, tetanus, polio and mumps reaching all-time lows. The Admin= istration launched major nationwide campaigns concerning teenage alcohol abuse and Reyes syndrome and responded within hours to the Chicago drug package tampering tragedy .as well as supervising several of the largest food recalls in history. 3. Housing In proclaiming National Housing Week in October 1982, President Reagan noted: "...[H]ome ownership is a cherished tradition that binds families, builds financial security, and strengthens communities and economic growth." Yet when President Reagan took office, the housing industry was fast approaching chaos and home ownership out of reach for millions of Americans because of soaring costs, record interest rates and economic mismanagement. Between 1977 and 1980, the average monthly payment for a mortgage loan had nearly doubled. Today, under the Reagan Administration, the housing sector is on the way to recovery: November's FHA activity was at a 48-year historic high and 1982 FHA interest rates were down to 12 percent == from the nearly 19 percent rate in September 1981, one month before the President's economic program went into effect. As a result, about 6 million more families are now eligible for FHA-insured mortgages. At the end of 1980, housing starts were in the middle of a three-year slump and down about one=half million from the year before. Two years later, the start rate is rising, not falling, and ended 1982 at almost one-half million above 1981 levels. While lower interest rates are the key to affordable housing, the Administration has also expanded and deregulated funding sources: Traditional funding sources have been expanded through regulatory reforms that give more flexibility to the savings and loan industry and encourage greater pension fund investment in mortgages. Innovative funding instruments such as Shared Equity Mortgages, Graduated Payment Mortgages, and Negotiated Interest Rates are also now allowed with FHA loans. In June 1981, President Reagan announced the creation of Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 the National Commission on Housing to develop recommendations for housing policy in the 1980s and a final report was submitted in April 1982. Se far, 6C percent of the recommendations have been fully or partially implemented or can be only addressed by state and local governments. While homeownership is a reality for many Americans, others must depend upon government 'assistance to meet their housing needs. Under the Reagan Administration, housing programs for the poor have been reoriented to provide assistance to those in true need and to improve and upgrade existing public and rental housing units. As a result: Housing programs have been retargeted to those families with incomes below 50 percent of the media. Currently 3.5 million households are receiving housing assistance == a 9 percent increase over the 3.2 million served at the erd of the previous Administration. President Reagan believes that better use should be made of existing public housing stock and has proposed no new construction of costly public housing projects. Instead, current proposals focus on subsidizing rents and improving existing housing. Since high housing costs, rather than a housing shortage is the poors' greatest problem, the Administration has proposed a housing voucher program that would provide rent subsidies to the poor. In addition, legislation has been proposed to provide grants to states and localities to preserve and rehabilitate rental properties for low-income families. The Administration has a strong commitment to fair housing and has implemented several important programs to eliminate discrimination in housing: To increase local voluntary initiatives, the number of Community Housing Resource Boards have increased to 578 as of June 1982 -- an increase of 44 percent from 1980. In addition, an Administration agreement with the National Association of Realtors has resulted in 1,134 realtor associations participating in a program to promote equal housing opportunity -- an increase of 27 percent from 1980. During the past two years, more than $5 million has been provided to state and local governments for fair housing enforcement. As a result, the number of agencies participating has increased from 38 to 69 since 1981 alone. 4. An~Educational System Closer to the People In January of 1980, Presidential candidate Ronald Reagan Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 observed that only through parents, teachers and local school boards Yias American education achiEVed its eminence and strength. "It is time we put education back on the right track," he said. To accomplish this goal, President Reagan has taken steps both to deregulate education and restore a federalist balance to education policy: -- Through the Education Consolidation and Improvement Act of 1981, President Reagan returned power to the states and localities in administering funds for disadvantaged child- ren. In addition, the P.ct consolidated some 42 education- al activities into a single block grant -- eliminating more than 300 pages of regulations as well as inefficient and costly administrative overhead. == Improved management practices have better targeted federal funds and returned monies due the Treasury to government coffers. For example, the Administration has tightened guidelines for recipients of student grants and loans. As a result, only students from families with gross adjusted incomes of under $30,000 are generally eligible. In addi= tion, a nationwide campaign was launched to collect de- faulted student loans -- resulting in the collection of more than $100 million and the identification of an estimated $~-~ billion more to be recovered. == Aware of the declining quality of teaching instruction and student performance, the Administration has created the National Commission on Excellence in Education. Its findings are expected to result in a new national thrust to improve overall education quality. Tuition tax credits remain a vital leg of the President's plan for improving the quality and degree of parental control in education. On June 22, 1982, President Reagan submitted legislation to Congress which would give lower and middle income parents the option which wealthier parents have always had: the choice between private and public education for their children. 5. 6,a jor~Initiatives to Combat Crime As a candidate, Ronald Reagan noted that America's criminal justice system was failing because of "lenient judges, inadequate punishment and unnecessarily slow and cumbersome court proceedings." In the first two years of his Administration, the President launched major initiatives to combat crime and develop more effective law enforcement. Early in 1981, President Reagan oversaw the establish= ment of the Justice Department Task Force on Violent Crime to address the nation's single worst crime problem. The Presi- dent has already implemented many of its recommendations and others are now before Congress. Among the President's Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 initiatives: -- To assure adequate prison facilities: a clearinghouse to help states and localities obtain surplus federal property for use as corrections facilities. -- To keep the guilty off the streets: changes in bail procedures, the exclusionary rule, and habeas corpus writs. =- Tc assure better state and federal coordination: law enforcement coordinating committees throughout the country to address urgent crime problems by region. To address the needs of victims, President Reagan created the Task Force on Victims of Crime on April 23, 1982. The following October, he signed into law the Victim and Witness Protection Act which offers protection and restitution to victims as well as freedom from intimidation for witnesses. To combat narcotics trafficking and organized crime, President Reagan instituted several historic programs: == A joint effort between the FBI and the Drug Enforcement Administration, so far, has resulted in more than 1100 new drug investigations. == One of the most innovative examples of his drug enforcement initiatives is the South Florida Task Force, established on January 28, 1982 and headed by the Vice President with state and local cooperation. Its activities have resulted in nearly 2,000 arrests and the confiscation of 2 million pounds of marijuana and 6 thousand pounds of cocaine. == On October 14, 1982, President Reagan announced additional initiatives in this area. Among them: 12 task forces in key areas throughout the nation similar to the South. Florida ' Task Force; a 15-member national panel to investigate the syndicate; a cooperative project with the nation's governors to help bring about criminal justice reforms; and a national center for state and local law enforcement training. When President Reagan took office, he was faced with a crisis caused by long-term neglect of the nation's immigra= tion laws. In 1981, the Census Bureau estimated that 3.5 million to 6 million people were in the nation illegally. In 1980 alone, an estimated 500,000 to one million illegal aliens entered the country. To combat illegal immigration, President Reagan instituted a two-phase program: legislation to sharply reduce the number of illegal aliens entering the U.S. and new enforcement programs to apprehend more. illegal aliens at the borders and those employed in the interior: == The Administration-supported Immigration Reform and Control Act now before Congress establishes penalties for knowingly hiring illegal aliens; streamlines the processing of asylum Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 claims; and legalizes the status of productive, law abiding aliens who have lived in the U.S. for a number of years. Budget increases and additional resources at the Immigration and Naturalization Service are increasing enforcement acti= vity, as are increased Coast Guard patrols. For example, more than 12,400 alien smuggler$ were apprehended in 1982 as a result of this crackdown. 6. Record Enforcement of Civil Rights Laws President Reagan has been firm in protecting civil liberties since he assumed office. Ye supported and signed into law the longest extension of the Voting Rights Act since its enactment. Enforcement of the Act is also at record. levels. Justice has reviewed more than 9,000 electoral changes to determine compliance -- an all-time high. At the President's direction, activities by federal enforcement agencies are at record levels: The Justice Department has investigated and prosecuted. criminal violators of civil rights laws in record numbers. In the first two years of the Reagan Administration, Justice filed 62 new cases charging criminal violations and con= ducted trials in 52 cases, numbers greater than those in any previous Administration. EEOC's record is also impressive. In 1981 alone, the Commission dramatically increased its activity over the previous year -- processing of discrimination charges increased by 25 percent; the number of people.assisted through negotiated remedies increased by 15 percent; and total back-pay and other compensation increased by 60 percent. Despite general budgetary restraint, the budget for civil. rights enforcement has grown. In fiscal 1983 there is a 24 percent increase for the Civil Rights Division at Justice and a 15 percent increase for the EEOC over 1980 actual expenditures. Enforcement levels of fair housing laws also are at record levels. For example, the number of fair housing complaints closed by HUD and equivalent state and local agencies increased about 14 percent between fiscal 1980 and the first three-quarters of fiscal 1982. 7. Progress for Minority Americans President Reagan believes that a strong economy, along with tough anti-discrimation enforcement, returns the greatest good to minority Americans. It returns a benefit greater than that provided by massive federal spending which has actually weakened the economy--creating only more hardship for low-income citizens, many of whom are Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 minorities. The President entered office in the midst cf an economic catastrophe from which the nation is just now beginning to recover. Years of massive spending had created double-digit inflation and slowed productivity, yet the resulting social programs had made little progress in eradicating poverty and, in fact, created hardship for all Americans. In the 1960s, an era of fewer and smaller federal programs but larger economic growth, the number of families in poverty was reduced by nearly 50 percent. In the 1970s, social programs grew ten-fold, yet economic growth slowed and only five percent escaped poverty. As the programs proliferated, so followed bureaucratic waste and mismanagement--and much of the federal money intended for the minority poor never reached them. Never wavering from his commitment to basic social needs, President Reagan has cut the growth rate of many of these programs, better targeted funds toward the truly needy, and made major progress in eliminating fraud and bureaucratic waste. Fresident Reagan has achieved record enforcement of civil rights laws and is responsible for the longest extension of the Voting Rights Act in history. (For more details, see section on Civil Rights) In addition to tax and regulatory reform, the President has taken other specific steps designed to directly benefit minority business. =- In 1981, the Small Business Administration's 8(a) program was revised to better target funds for minority small business ventures. In addition, the Commerce Department,'s Minority Business Development Agency (MBDA) implemented programs to establish a higher rate of minority joint ventures with majority firms and provide assistance in the area of international trade. The Office of Minority Business Advocacy was also established under MBDA to assure better cooperation between minority business, the federal government and the private sector. == On December 17, 1982, President Reagan announced addition- al steps to promote minority business development. Through such agencies as MBDA and the SBA, the Administra- tion is putting into place a plan to create and expand more than 120,000 new and existing minority businesses in the next 10 years. In addition, the federa], government will procure an estimated $15 billion in goods and ser- vices from minority businesses between 1983 and 1985. Approximately $1.5 billion in credit assistance and $300 million in management and technical assistance will also be made available. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 President Reagan has also moved to strengthen Black colleges and universities: =- He provided a $9.6 million increase in federal Title III funds, a jump of almost eight percent, and also signed an Executive Order which strengthened the federal commitment to historically Black colleges, while seeking new ways for the private sector also to increase its support. =- An example of his strong commitment to black colleges was the critically needed financial aid he authorized for Meharry Medical College. This money, totaling several million dollars, and his order to expand the affiliation between the school and the VA helped to save the medical college which has trained more than 40 percent of all Black physicians. =,= Under his direction, federal agencies also have directed funds toward black colleges for instruction in their specific areas. On September 10, 1982, for example, the Department of Housing and Urban Development announced that it directed $450,000 in grants to 11 black colleges for technical assistance to their communities regarding Community Development Block Grants and Urban Development Action Grants. President Reagan has dealt with issues of particular interest to Hispanic Americans. He has improved U.S. rela- tions with our Latin neighbors through the Caribbean Basin Initiative and closer communication with Mexico President Portillo. He formulated a special task force to solve the economic problems of Puerto Rico and initiated radio broadcasts to Cuba. Domestic initiatives include: the development of an immigration policy and support of the 10-year extension of the bilingual election provisions of the Voting Rights Act. The President considers direct input from minorities a number one priority in addressing the specific concerns of minority Americans. Early in his Administration, he designated key members of his staff to act as liaison with the Black and Hispanic communities. In addition, he has relied heavily on the expertise of Black and Hispanic P.mericans by appointing them to high-level policy positions throughout his Administration: As of January 1983, President Reagan placed Blacks in more than 150 top executive policymaking positions -- of which 29 require Senate confirmation. For example, he chose Samuel Pierce to serve in his Cabinet as Secretary of HUD and appointed the first Black to serve as Chairman of the U.S. Civil Rights Commission. His Black appointments cover a broad range of responsibilities. For example, Blacks hold the positions of Assistant Secretary in Commerce and Education, as well as Director of Minerals Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Managagement Service in Interior and Administrator of Urban Mass Transportation, Department of Transportation. The President has appointed more than 100 Hispanic Americans to high level government positions -- 28 of these are fulltime Presidential appointments requiring Senate confirmation. For example,?Hispanic Americans serve as General Counsel of HHS, Deputy Administrator and Assistant P_dministrator of.EPA and Assistant Secretary of HUD and Interior. 8. Promoting Equal Rights and Opportunities for Women As a candidate, Ronald Reagan pledged to advance and promote equal rights and opportunities for women. As President, he has honored that commitment through a concerted effort to correct discriminatory laws and regulations; the successful recruitment of women to serve in hgh level federal positions; and the institution of economic policies which correct past inequities as well as promote economic oppcr= tunity. President Reagan strongly supports equal rights for women and believes they can be ensured under existing Constitutional guarantees. To assure full equality, the President has launch- ed two initiatives aimed at correcting disciminatory laws and regulations at state and federal levels: The President's Task Force on Legal Equity for Women was created on December 21, 1981, to identify federal laws and regulations that discriminate against women. Legislation has been introduced in Congress the Federal Equity Act designed to correct such discriminatory language in the U.S. Code. Through the 50 States Project, the President communicates with the governors and state legislators to encourage states to correct laws which discriminate against women. In addition, the White House Coordinating Council on Women, announced on August 27, 1982, is assuring that womens' rights and opportunities continue to receive special attention at Administration policy-making levels. In his first two years in office, President Reagan selected more women to serve in top fulltime policy positions than any other President in history during a comparable time period. There have been 92 women selected for Presidential appointments by President Reagan, compared to the previous Administration's 76 such appointments. Alltold,.the President has selected 650~women for high-level, policy-making positions: 138 for Senior Executive Service positions, 136 for Schedule C jobs above a GS 15, and nearly 300 for part-time Presidential advisory boards. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 - His appointments include Asscciate Justice Sandra Day O'Connor, the first woman to serve on the Superme Court and Ambassador Jeane Kirkpatrick, the first woman with Cabinet rank to represent the U.S. in the United Nations. Helene Von Damn is the first women to serve as Director of Presidential Person- nel. In the Reagan Administration, women also serve as direc= tors of four major federal agencies: th.e Environmental Protec- tion Agency, the Peace Corps, the Consumer Product Safety Commission, and the U.S. Postal. Rate Commission. President Reagan's economic program corrects three past inequities which have directly affected many women: the marriage penalty, IRA limitations and inheritance taxes. Eliminating 99.7 percent of inheritance taxes is of particular help to widows, many of whom will no longer have to sell the family business or farm to meet tax demands when their husbands die. A reduction in the marriage penalty aids two-earner families, since a couple earning $30,000 ($15,000 each) will save about $300 in 1983 alone. Raising IRA limitations allows homemakers as much as $500 more in their IRA accounts. In addition, the President has instituted other economic policies which impact favorably on women: To aid the working mother, the tax credit for child-care expenses has been raised; tax incentives offered to employers who include prepaid day care in their employee benefit packages; and a child care deduction line included on the income tax short-form, making it easier for low-income families to duduct such expenses. On September 8, 1982, President Reagan signed into law the Uniformed Services Spouses' Protection Act. It allows state courts to divide military retirement benefits in divorce settlements, thus recognizes the special concerns of military wives. 9. Secczrity-for~the Nation's Elderly In September of 1950, candidate Rcnald Reagan noted that the number one concern of older Americans is economic securi- ty. This concern had become a quickly growing problem during the late 1970s as inflation sent the cost of basic necessi- ties such as food, fuel, utilities, and medical expenses soaring. Zn addition, the nation's social security system was badly in need of reform, parts of it facing bankruptcy as early as mid-1983. Two years into office, President Reagan has made major progress in restoring economic security for the nation's Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 elderly. Inflation -- new at its lowest rate in ten years =- is being brought under control, thus easing the financial burden for those on fixed incomes. Oil decontrol has helped to stabilize energy costs, and with the prime rate now down by about half, interest rates are fast approaching reasonable levels again. Tax cuts and reforms have eased income tax burdens and virtually eliminated inheritance taxes. Most importantly, the nation is on the way to full, long-term economic recovery -- meaning financial stability for today's as well as future senior citizens. For those older Americans who wish to continue working, Ronald Reagan has proposed the complete elimination of man= datory retirement -- the first President in history to do so. The proposal is now under study in Congress. In addition, the Administration has issued a new "Suspension of Benefits" rule which allows many retirees to work 40 hours per month without their pension benefits being reduced. While reductions in federal spending have played a major part in the President's program for economic recovery, he has never wavered from his commitment to maintaining services for the needy, many of whom are elderly. Federal support for the elderly is averaging $7,850 per year per individual for fiscal 1983 and will increase 125 percent as fast as overall spending over the next five years. Svhile the elderly comprise about 11 to 12 percent of the total population, they will receive 28 percent of federal budget outlays in fiscal 1983. With leadership from President Reagan, the Congress voted in 1981 to reauthorize the Older Americans Act. The Act supports a variety of locally-based services including support for homemakers, home healthcare, transportation, meals and counseling. The Administration has instituted several innovative programs designed to aid the elderly without adding unnecessary expense at the federal level. For example, Carrire Alert, a program to aid elderly persons in distress, is a joint project with the National Association of Letter Carriers, the American Red Cross, and the United Way. Millions of senior citizens dependent on specific government programs are continuing to receive adequate assistance. Under the fiscal 1983 budget, for example: =- Social Security: The Old Age Survivors and Disability Insurance provides monthly cash payments up to $868 to 24.5 million people who are 62 or older. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Health~Programs: N,edicare, Medicaid, and other health programs are providing over $4,200 per elderly couple. Housing-Assistance: Rent and loan interest subsidies are provided to 2.25 million elderly households through HUD subsidized housing programs. Nutrition Programs: Federal, state and local governments will serve 600,000 meals per day to the elderly through service centers and meals on wheels. Social Services: Over $1 billion in nutrition, community, homemaker and protective services as well as low-income energy assistance is being provided through Social Services (Title XX), Older American Act programs and Energy Assistance. To a group of senior citizens concerned over social security in the fall of 1980, President Reagan stated: "I will defend the integrity of the Social Security system....That system will be strong and reliable and protected under a Reagan Administration." Since in office, President Reagan has presided over two consecutive cost-of=living increases to Social Security recipients -- an 11.2 percent increase in July 1981 and a 7.4 percent increase in July 1982 (reflecting lower inflation). As a result, the average retirement benefit has risen $ - a month. since President Reagan took office. Despite strong opposition from opponents, ana a heated election year debate over the issue, President Reagan has acted decisively in searching out solutions to the financial problems faced by the nation's Social Security system: == In clay 1981, the President proposed a comprehensive set. of reforms which would have protected the elderly already receiving benefits while also lowering the long-term costs of the system. Unfortunately, the proposals became more of a political football than a beginning of serious discussion. == The following September he withdrew the proposals. In their place, and in an effort to remove the issue from partisan politics, President Reagan made three basic proposals -- all favored by Congress: temporary interfund borrowing to keep the system solvent in the short=run; restoration of the minimum benefit for low=income beneficiaries; formation of the Bipartisan Commission on Social Security Reform to recommend realistic, long-term reforms. At this writing, the President is awaiting the final report of the Commission. By the end of 1982, however, the Commission had concluded the system was underfunded by $150 - Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 $200 billion through 1990. After reviewing the Commission's reccm~;~endations , he will take irranediate action to work out a final long-term solution with the Congressional leadership. 10. Handicapped In October 1981, President Reagan proclaimed National Employ the Handicapped Week, stating: "We need to make the 1980s years in which disabled individuals achieve the greatest possible access to our society, maximum independence and full opportunity to develop and use their capabilities." With these goals in mind, the Reagan Administration has directed a number of programs to serve the handicapped and disabled. Through Social Security/Supplemental Security Income (SSI), the President's fiscal 1983 budget is providing $18.2 billion to 4.3 million disabled workers and their dependents -= an increase of about $.5 billion over 1982. In addition, SSI is providing about $8 billion to 3.6 million aged, blind, and disabled individuals -- an increase of $1 billion over the previous year. Medicare and D4edicaid are providing $12.1 billion for medical services to 5 million disabled individuals in fiscal 1983. This year, HUD is providing more than $40 million in loans for construction of housing for handicapped individuals. To aid the developmentally disabled, HHS awarded 19 new grants totalling $1.5 million in efforts toward de-institutionalization. In addition, two grants -- totalling $200,000 -- were made to improve outreach services to minorities with developmental disabilities. More than $800 million is allocated this year for the specific education needs of 4.2 million handicapped children. In addition, more than 37,700 handicapped children are being served through Head Start. The Model State Adoption Act was issued in 1981 to encourage and facilitate the adoption of children with special needs. States can choose to follow in part or whole the legislation, which provides for financial assistance to families who adopt children with special needs. Under President Reagan, vocational rehabilitation assistance for service-connected disabled Vietnam veterans has grown 14 percent over the past two years, with employment receiving major emphasis. Overall Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 _ benefits to veterans disabled in military service have increased by $1.9 billion -- 25~ above the 1980 level. 11. Responding~to the Special Needs of Veterans President Reagan chose to end his inaugural address -- one of the most important speeches~of his life -- by reading a quote from the diary found on.a soldier who died heroically in WWI: "...I will work....sacrifice...as if the issue of the whole struggle depended on me alone." The President recognizes the many sacrifices veterans have made for the nation. Often they require special ser- vices that only the federal government can provide and Presi= dent Reagan's policies have borne out his commitment to meeting these special needs of the nation's veterans: == Expanded health services for aging veterans. Long-term and geriatric VA health care are being expanded to meet the needs of World War II and Korean War veterans. Vietnam veterans are receiving special attention through expansion of the store-front readjustment counseling program, extension of vocational training and job place- ment assistance, and targeting research toward delayed stress reaction. Responding to the Agent Orange dilemma, the Administra- tion provided nearly 100,000 free medical examinations to Vietnam veterans and launched over 50 separate studies in an all=out research effort. Veterans housing needs have been aided by the develop- ment of a new graduate payment mortgage plan and the de- cline in VA interest rates from over 17 percent to 12 percent in the last 14 months. In addition, deregula- tory action has aided older veterans in obtaining housing in retirement communities and has opened up state and local housing assistance programs. To greater aid disabled veterans, the Administration has increased benefits by $1.9 billion overall, a 25 percent increase over 1980, and offered greatly improved insurance programs. Under President Reagan, the VA has made major strides in improving health care while restraining costs. During the past two years, the VA has cared for more veterans than ever before. In addition, rapidly expanding veteran burial needs are being met through improved management of burial space combined with financial assistance in constructing state veterans' cemeteries. 12. Jobs and Safety for the Nation's Workforce Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 President Reagan believes that progress for America's workforce deper_ds on a vigorous, growing economy, for, as Samuel Gompers, the founder of the American Federation of Labor said: "The wcrst crime against working people is a company which fails to make a profit." In the past two years, the President has put in place a program designed to restore productivity to the nation's business and industrial sector. Its components, such as tax reforms to spur savings and investment and regulatory relief to ease financial and administrative burdens on business, are designed to encourage business expansion, and thus create new .jobs. Abetter climate for business development is being created, as evidenced by lower inflation and interest rates. While unemployment figures remain unacceptably high, lagging behind other positive indicators, full-scale recov- ery is on the horizon. It is important to remember that the present recession followed on the coat-tails of a dramatic surge in inflation during the late 70s -- similar to a recession earlier in the decade. With inflation at its lowest point in ten years, the stage is set for a sustained drop in the unemployment rate. In addition, the President has taken specific actions to help the unemployed and create new jobs: == To provide continued assistance for those currently out of work, the President has twice extended unemployment benefits with those in the hardest hit states eligible for up to 55 weeks. == The Job Training Partnership Act (JTP), signed into law by President Reagan in October, will train up to one million workers per year. Unlike the old CETA program, JTP is designed for skilled, private sector job place- . ment and spends almost 70 cents out of every dollar on training, contracted to less than 18 cents under CETA. == The President's Export Trading Company Legislation, also signed into law in October, will create several hundred thousand jobs. == The highway and Bridge Repair Program bill, passed by Congress in December, is expected to create 320,000 new jobs in construction and related industries. == The President's proposed Enterprise Zone legislation is designed to revitalize distressed urban areas, offering incentives for the creation of labor-intensive business- es and special tax credits for the hiring of i3isadvan= taged workers. In 1981, the Trade Adjustment Assistance program was significantly shifted to emphasize job retraining rather Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 than income maintenance. The changes will speed up the labor force re-entry of workers who lose their jobs due to foreign imports and will result in savings of nearly $1.5 billion over the next three years. Regulatory reform has played a major role in the President's approach to a productive, yet safe, workplace. In the Labor Department alone, reform of its major regulatory agencies has resulted in a savings to industry of over $2.6 billion yearly plus a $2.2 billion initial one-time savings ._ Efforts to date have resulted in a reduction of over 5 million burden hours of previously required reporting. =- New Davis-Bacon Act regulations, which determine wage rates on federal construction projects, will reduce federal and industry expenditures by more than $60C million annually, while retaining basic labor standard protections for workers. The regulation will also enhance the employment opportunities of youth and women in the construction industry. OSHA reporting requirements have been reduced in 50G,000 low-hazard firms and resources are being better targeted to firms with health and safety problems. Proposed new Office of Contract Compliance regulations will maintain basic affirmative action requirements while streamlining the process and reducing excessive reporting burdens, particularly on small business. In mining, regulation and procedures are being revised to give new emphasis to education and training and to further improve the efficiency of mine safety inspec= tions. In addition, the Administration, working closely with organized labor and the coal industry, obtained legislative reforms in the Black Lung Trust Fund, which was in serious financial trouble, to ensure its long- term solvency. Under President Reagan, the federal government has begun the long and arduous task of much needed pension reform. For example, changes in ERISP. rules will allow pension plans to make prudent investments in residential mortgages and construction. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Strengthening the Private-Sector In an address before Congress shortly after he took office, President Reagan stated: "~Je must remember a simple truth. The creativity and ambition of the American people are the vital forces of economic growth." This belief has. formed the basis of the President's comestic policy -- that only with an active, healthy private sector can the nation achieve permanent, long-term economic growth. President Reagan believes the strength of the private sector derives not only from the health of the nation's .economy, but also from the character and generosity of the American people. He set out to strengthen the first -- through his economic program -- and to tap the latter, through his Private Sector Initiative effort. 1. Priyate~Sector Initiatives During the campaign, family, neighborhood, workplace, emerged as key words in Ronald Reagan's political vocabulary and in his plans for reorienting domestic policy. Over the last two years, the private sector initiatives project was developed to put those words into action. In June of 1981, the President asked the American Enter- prise Institute to conduct a study focusing on how the tradi- tional institutions in the private sector (family, neighbor- hoods, unions, churches and voluntary associations of all sorts) can help people in need. Next, the President created a new office in the White House, the Office of Private Sector Initiatives, to coordinate Administration activities. To involve the private sector more closely in, carrying out the PSI strategy, the President announced a one=year nationwide effort on September 24, 1981. It was called the President's Task Force on Private Sector Initiatives and it was charged to: develop, support and promote private sector involvement in meeting human needs. recommend action by the President to foster public and private partnerships and reduce dependence on govern= ment. During 1982, the Task Force served as a catalyst to create many new public/private partnerships: -= hundreds of national organizations met with President Reagan and the Task Force and put Private Sector Initiatives at the top of their agendas. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 -= the President and his Cabinet worked together to review departmental procedures, regulations and impediments to private sector initiatives. -- over 70 television stations from around the country developed programming highlighting how communities in other parts of the country solved problems without government funding. T.V. sponsored job matching pro- grams are springing up all over the country. -= the Task Force compiled a data bank of 2,500 examples of how individuals and communities have solved social problems. These examples were made available to others around the country and will be expanded by a coalition of private sector organizations over the next few years. == forty-two governors organized efforts to develop private sector initiative activity in their states. During the Task Force's one year life, over 30 separate PSI=relate events were held with the President, thousands of letters which recognized exemplary programs were written and sent, many speeches were given highlighting PSI examples and several cities with new or expanded partnerships were visited by the President. There were many "firsts" inspired by the President's emphasis on PSI. For example, the first annual White House Awards for Voluntarism were established and 20 winners visited Washington last April. The Government entered into many new partnerships with the private sector. Two programs, the Small Business Revitalization Program and the expanded health fair, with the National Health Care Screening Council for Voluntary Organizations, were created. The SBR program will create 300,000 new jobs over 4 years and the Health Fairs will serve two times as many people this year as last year. == Despite the recession, individual and corporate philan- thropy is increasing, and more volunteers than ever are contributing to their communities. At the Task Force's final meeting on December 8, 1982, the President told the members "Private Sector Initiatives are here to stay in the Reagan Administration." The nationwide network of business, unions, religious groups, national organizations, non-profits, education leaders and Federal, State and local government officals established over the last two years will be expanded. A Commitment to Public Outreach: The President's commitment to keeping in close contact with the various groups that make Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 up American society is illustrated by the ongoing work of the White Youse Office of Public Liaison. During the first two years the President and his staff have actively met with hundreds of individuals and groups to maintain an ongoing exchange of ideas. Meeting under the Office of Public Liaison for various groups include: == with the President .. 75 -- with Cabinet/Senior White Eouse Officials 187 -- other meetings, briefings 1,048 Improving the Economic Environment: The President's Program for Economic Recovery has put down a foundation for private sector prosperity. Private industry -- farm, shop and factory -= has benefited from lower inflation and interest rates as well as fewer unnecessary regulations. N,ost importantly, the President's program has offered tax incentives to encourage business expansion, and increase productivity: across-the-board individual tax cuts and estate tax changes which aid small, family-owned businesses and farms; Accelerated Cost Recovery System which permits faster write-offs and encourages modernization; and special tax credits for research and development. Overall, President Reagan believes that government's proper place is out of the private sector's way; that it can offer incentives and assistance where appropriate, and main- tain basic protection for health and safety but that un- checked, Federal intrusiveness can be an unhealthy brake on the private sector's growth and vitality. 2. A Free=Market Climate for Agriculture Agriculture is the nation's largest industry and employer, accounting for 20 percent of the GNP and 23 million, jobs. Therefore, the President believes that agriculture will remain strong only if government policies encourage a sound economy and allow the farmer to work in a free-market climate. While the President's program for economic recovery will benefit all Americans, many of its provisions will be of particular assistance to farmers -- i.e, allowing faster write-offs for farm machinery, buildings and eligible livestock. To encourage free-market development, a four=year farm bill was passed in December 1981, which gives farmers econo- mic protection thrcugh basic loan and price protection and also provides programs fcr farmers to adjust supply volun- tarily without government controls. In addition, the Presi- dent has now proposed the "Payment-In-Kind (PIK) program which gives producers the voluntary option of idling certain acreage in return for a share of the huge U.S. grain surplus. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 This will help the nation's farmers and reduce large surplus stocks of grain which threaten farm price stability. On April 24, 1981, President Reagan ended the counter- productive Soviet Grain embargo imposed by the previous Administration. The embargo not only allowed some of the nation's competitors to gain a larger share of the grain market but also put the U.S. reputation as a reliable sup- plier in jeopardy. President Reagan also supported the extension of the current U.S./U.S.S.R grain agreement through the end of fiscal 1983. The Department of Agriculture also has developed a comprehensive plan for export expansion designed to combat unfair trade practices. A three-year, $1.5 billion "blend.ed- credit" program was announced on October 20. Blended credit sales were approved for seven countries, for import of more than two million tons of U.S. agricultural products. In addition, government-industry sales teams were sent to 23 countries to promote the export of U.S. products. 3. Addressing~Commerce and Trade in a Complex~V~orld commerce and trade policies that address U.S. needs in an ~~~ increasingly complex and interdependent world. This policy takes into account the immediate goals of a liberalized world trading system and the needs of an American economy that must flourish within it. For example: == On October 21, 1982, President Reagan reached agreement ~, with 40 European countries on steel exports to the U.S. ~ The agreement stops the subsidized export of European stee~ to the United States and will help restore fairness to they competition between U.S. and foreign producers. i == Several hundred thousand jobs will be created and exports increased by about $11 billion as a result of the Export Trading Company Act, signed by the President on October 8,i 1982. In addition, a new program has been established which is encouraging new small and medium-size export firms == and helping create almost 70,000 new jobs. == Export controls have been strengthened through the revitalization of the Coordinating Committee on export controls (COCOM) and export revisions concerning such countries as Libya, Iraq and South Africa. As a result, ~ export laws are more in line with U.S. foreign policy and there is better control over high technology exports with minimum effects on the business community. -- Intensive efforts have been made to focus Japanese atten=! tion on bilateral trade problems. In addition, trade relations have been improved with Mexico -- through estab- lishment of the U.S./Mexico Joint Commission on Commerce Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 ~ Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 and Trade -- and with Africa as a result of an Administra- tion=backed mission there to increase the private sector role in international development. The Reagan Administration has applied sound business practices within the Commerce Department itself and has achieved major cost savings and management improvements. For example, export backlogs have been reduced from 2,200 to a1- most zero and sound financial management restored to Com- merce's Economic Development Administration -- including re- ducing obligated undispersed funds by $410 million. Through such improvements Commerce managed to operate successfully under a fiscal 1982 budget 26 percent lower than that pro- jected by the previous Administration. President Reagan believes that an informed and educated consumer is vital to the long-term healthy growth of the nation's economic system -- yet government over=regulation has in some cases hampered this growth. While regulation is necessary to protect such vital areas as food, health and safety, too much unnecessary regulation simply adds to the costs to business and consumers alike without commensurate benefits. The President's main approach to finding relief for consumers is his Program for Economic Recovery which has eased the burden of inflation and over-regulation. In addition, consumer offices are in place in the White House and in 42 government agencies. These offices comprise the Consumer Affairs Council which meets regularly to improve representation, information and complaint handling. Specific activities of the Reagan Administration in the area of consumer affairs include: =- Close cooperation with private and public organizations to develop a national coalition for consumer education, to integrate consumer and economic education and to preprare for National Consumers Week held each year. =- A Constituent Resources Exhibit to aid Congressional staffers in handling complaints from their districts. == F.dministration-sponsored conferences for health care consumers, the aged and the disabled to enable them to better share in the mainstream activities of the average consumer. == The establishment of third-party mechanisms iri the funeral and airline industries to resolve legitimate consumer complaints. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 5. Incentives?for Small Business Growth Small business, the backbone of the American econcmy, creates four out of every five new jobs, employs more than half the work force, provides a livelihood for some 100 million Americans and gives the nation new technology. Thus, the nation's small business community i?s a major element in the President's economic revitalization effort. In addition to the economic recovery program, President Reagan has supported and signed several bills of particular importance to small business. The Export Trading Company A.ct, mentioned above, will assist small esport firms to ex= pand their exports and the Small Business Innovation Develop- ment Act will give small business a greater share of federal funds for research and development. Prompt Payment legisla- tion will require the government to pay its bills promptly or pay interest penalties, thus correcting a past practice where the government was borrowing interest-free and creating cash-flow problems. Through such inncvative approaches as the "Minnesota Plan" the President has increased the availablity of capital to help small businesses obtain critically needed long-term financing. In addition, the President's Task Force on Regu= latory Reform has identified the 20 regulations most burden- some to small business and has begun a review of the impact of EEOC regulations on small concerns. Also, the Small Business Administration has improved its organization and management through such organizational changes as shifting more responsibility to local/regional offices. Other management improvements have produced budget= ary savings of $1.2 billion and staff reductions of 400 persons -- yet no services to small businesses were elimi- nated and in many instances services were improved. For example, total contract awards to small business was increased $12.8 billion and prime contracts increased nearly $8 billion. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 6. A"Safe; Efficient Transportation~~ystem During the past two years, President Reagan has placed renewed emphasis on the private sector and state and local government in meeting the nation's transportation needs. Through this approach, as well as improved management and regulatory reform, the President was able to restrain federal spending yet maintain and promote a safe national transportation system. To relieve tax and subsidy burdens, President Reagan has :. utilized the concept of user fees to ease tax and subsidy burdens and shift some of the funding responsiility to those who use the service. For example, aviation user fees have been instituted to maintain airports. Highway user fees levied at the fuel pump provide a self-financing fund for road repair that won't add to the deficit to repair and rebuild the nation's highways, bridges and transit systems. Through extensive regulatory reform, President Reagan has achieved significant cost savings for consumers and industry alike as well as permitted greater state and local flexibility in meeting transportation needs -- i.e., legislation to deregulate the intercity bus industry. Such action in the motor vehicle industry, for example, has led to the review and redirection of 34 regulations which will produce about $9 billion in savings over the next five years. Safety remains a number one priority in the Reagan Administration. Despite an illegal air traffic controllers' strike in 1961, the nation's air traffic system has continued to operate at the safest levels in history. The Reagan Administration has also undertaken long-term improvements in the air traffic control system through the new National Airspace System -- paid for by user fees. In addition, the President has launched an intensive campaign concerning use of safety belts and a nationwide program to curtail drunk driving. To return more responsibility to states and the private sector, President Reagan initiated the Northeast Rail Service Act which provided for transfer of Conrail commuter responsibilities to local agencies. In addition, he formulated a plan by which Highway Trust Funds revenues could be turned back to the states. 7. A"Safe; Protected Environment at~Less Cost President Reagan believes that the keys to a sound envi- ronmental policy are balance and commonsense. While growth should not be blindly sought at the environment's expense, neither should national policy needlessly stifle economic Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 growth and job opportunities. The President is pursuing this concept through a two-fold approach: 1) regulatory and man= agement reform with an eye to streamlining the process; 2) a full partnership with states -- involving federal coordina- tion, leadership, and technical support and state responsi- bility for day-to-day management of environmental programs. Among the Administration's environmental initiatives: -- The Reagan Administration is.delivering more environmental protection at less cost. EPA's productivity is higher than ever, while the 1983 operating budget is 23 percent below the 1981 operating level. For example, EPA has now pub= lished 19 toxic removal rules for the water program, compared to the previous Administration's one such rule. == The Administration is aggressively managing hazardous waste. Through private settlements, state cooperation, and direct federal action, remedial work is underway at 100 abandoned hazardous waste sites. == States are managing more environmental programs than ever. Work delegated to states has increased by 70 percent since the President took office. Environmental compliance is increasing. In the last nine months alone municipal wastewater compliance increased from 79 percent to 87 percent. Industry has received essential relief without jeopardy to the environment. Air compliance deadlines have been extended to allow modernization in the distressed steel industry. The Auto Relief Package, when fully in place, will save the auto industry about $3 billion. Air "bubble"? rules are saving over $1 billion annually. To help restore the nation's national parks and wildlife refuges, the Administration created the five-year, $1 billion Park Restoration Improvement Program and moved to rehabilitate deteriorating facilities at national refuges. In addition, the Administration has successfully urged Congress to include 188 Atlantic and Gulf Coast areas in the Coastal Barrier Research Act and is working with a state/ private sector task force to encourage similar protection for wetlands. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 8. Progress Toward~Energy Independence Through his National Energy Policy Plan, announced in July 1981, President Reagan established energy policy as part of overall economic and international policy. Key elements of his energy policy are reliance on the marketplace to determine production and consumption, regulatory reform to allow energy efficiency, long-term research and development :. of energy related technologies, and the strengthening of U.S. energy security. Under President Reagan, the nation is making steady progress toward energy independence: total domestic energy production levels are up more than 8 percent over 1979 levels, and over 90 percent of the amount of energy consumed in the U.S. is produced in the U.S. -- up from 77 percent in 1979. In keeping with his philosophy that energy policy should be tied to economic policy, the President submitted to Congress in May 1982, his Federal Energy Reorganization Plan which provides for the merger of DOE and the Department of Commerce. The President's regulatory reform measures have greatly eased the reporting burden on the private sector. Through the end of fiscal 1982, more than 6.3 million man hours have been saved by streamlining and reducing energy regulations == a 30 percent reduction. OfI-Decontrol~Has~y~orked: Upon signing the Executive Order decontrolling oil in January 1981, President Reagan stated: "[It] is a positive first step towards a balanced energy program...one designed tc promote prudent conservation and vigorous domestic production." Today, nearly two years after oil decontrol, the nation has made great progress in oil independence, production, and the stabilization of prices. In October 1982, the average gasoline price was only one cent higher than before decontrol. During 1982, in fact, the price of gasoline actually fell more than 10 cents a gallon -- the first drop in a decade and the largest drop in history. Decontrol critics who had pre= dieted it would lead almost immediately to $2.00 a gal= lon gas, were proven dramatically wrong. Domestic drilling and exploration soared to record levels in 1981. As of September 1982, successful oil wells completed were 17 percent ahead of the 1981 record Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Net imports have fallen from 6.4 million barrels a day in 1980 to 5.4 million in 1981 and 4.2 million as of November 1982. As a result of the elimination of~oil price controls more than 200 sections of the Code of Federal Regula- tions have been eliminated. B~xilding a Stockpile of Energy Reserves: President Reagan recognizes that because of the nation's vulnerability to energy supply disruptions, certain emergency preparations == such as rapid filling of the Strategic Petroleum Reserve (SPR) -= remain a primary government responsibility. Under the Reagan Administration: As of November 1982, 290 million barrels were stored in the Strategic Petroleum Reserve -- more than 2 1/2 times the amount stored between 1977 and January 1981. The Administration's goal is to increase SPR capacity and fill it to 750 million barrels. In 1981, the Administration concluded an agreement with Phexico's PEMEX which will supply 108 million barrels of oil for SPR through August 1986. Energy resources play an important part in the nation's national security and defense needs. Among its defense- related energy activities, the Administration has met nuclear production goals for strategic and tactical systems and is improving safeguards and security systems. Harnessing the Nation's Resources: Before the Ottawa Economic Summit in July 1981, President Reagan stated: "...[4v]e will accelerate the development and use of all our energy sources, both conventional and new, and continue to promote energy savings and the replacement of oil by other fuels. "Two years in office has produced much progress in utilizing the nation's energy resources: To develop the nation's nuclear power capability, the Administration has completed legislation to streamline nuclear regulation and licensing, and strongly supprted legislation to establish a comprehensive nuclear waste management program. In addition, the President has eliminated the ban imposed by the previous Administra= tion on reprocessing of spent fuel and is encouraging private sector involvement in reprocessing. To encourage coal production and use, the President issued his Coal Expcrt Policy Statement which estab- lished a major initiative to increase coal exports by strengthening domestic production and establishing the U.S. as a reliable supplier. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Early in 1982, the Administration announced a new 5-year Outer Continental Shelf (OCS) oil and gas leasing pro- gram which calls for the study of mcre than one billion acres as potential energy resources. In contrast, only 40 million acres -- only 4 percent of the OCS -- has been offered to energy exploration during the past 30 years. In 1982 alone, the Administration has leased more onshore acreage for oil and gas exploration than did the previous Administration in four years. President Reagan delivered the most powerful statement on national minerals policy in nearly three decades -- the second such statement in history. To help implement the policy, the Interior Department has processed 107 million acres of public lands, compared to only 1.2 million acres processed during the previous four years. 9. Science and Technology In science and technological fields, the Reagan Administration is emphasizing broad national goals of economic revitalization, enhanced public health and well=being, and strengtened defense. A major element of this policy has been a clearer distinction between federal and private sector roles in paying for and conducting research and development -- for example, federal involvement in the development of long-term energy resources, with short-term development left tc the private sector. Among the Reagan Administration initiatives: The National Space Policy, announced in July 1982, affirms U.S. determination to maintain leadership in space and expand international cooperation. The study of new technologies -- for example, ?advanced computer research and development -- to assure that federal policies are in line with national goals for industrial competitiveness. Increased international cooperation with Western Europe and Japan for shared research in such areas as nuclear fusion. fact, the price of gasoline actually fell more than 10 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 RGNALD " REAGALQ " TfiE " COfilPiU1QICATOR In the first two years of his Administration, President Reagan has made 14 major televised addresses. On each occasion he went before the nation, and in one case the world, to make clear his position on issues of vital concern: January 20, 1981 February 5, 1981 February 18, 1981 April 28, 1981 July 27, 1981 September 24, 1981 November 18, 1981 Inaugural address ' Address to the nation on the economy State of the Union address Address to joint session of Congress on the economic package (first appearance since assassination attempt) Address to the nation on tax proposals/budget Address to the nation on the economy National Press Club speech: foreign policy (The speech was beamed to 200 million people worldwide. It reached one of the largest audiences of any President.) January 26, 1982 State of the Union address April 29, 1982 August 16, 1982 September 1, 1982 September 20, 1982 October 13, 1982 November 22, 1982 Address to the nation on the budget Address to the nation on the tax bill Address to the nation on P~4iddle East Policy Address to the nation on a new multinational peacekeeping force in Lebanon. Address to the nation on the economy Address to the nation on arms control Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 The President conducted 14 formal press conferences in the White House over the last two years. He also held one informal press conference while in Santa Barbara and one hour-long press Q and A session following the tax bill. Since January 1981, President Reagan has given 80 inter- views to individual members of the press or small groups of press representatives. He also had 12 briefings with out-of= town editors and broadcasters. In 1982, the President also gave 28 Saturday afternoon radio addresses. He also had numerous informal Q and A ses= sions with the press as well as eight press availabilities. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 CHROIQCLOGY - OF " T~'E ~ FIRST ~ TWO ~ 7~EARS January 20 January 20 January 21 January 22 January 22 January 28 January 29 January 29 February 3 February 4 February 5 February 7 February 17 February 18 President Reagan sworn into office, first ever or. West front of the Capitol; immediately announces a freeze on federal hiring. The President announces his nominees for the Cabinet. The President swears-in the White House staff; requests resignations of Carter appointees. The President signs memorandum to departments and agencies ordering reductions in spending for con- sulting contracts, office redecoration and other non-essentials. The President signs an Executive Order establishing the Task Force on Regulatory Relief, chaired by Vice President Bush, to lessen regulatory burden. The President signs an Executive Ordera decontrol= ling oil. The President signs an Executive Order eliminating the wage and price program of the council on Wage and Price Stability. First nationally televised Presidential news con- ference. Senate completes action on Cabinet nominations.. The President meets with the bipartisan Congres- sional leadership; first trip to Capitol Hill after Inaugural. The President makes his first nationally televised address to the nation outlining the state of the economy and describing his plans for recovery. The President approves an Act to provide for a temporary increase in the public debt to $985 billion. The President signs an Executive Order requiring Office of Management and Budget review of all proposed new regulations. The President makes televised address to joint session of Congress; .outlines his Program for Economic Recovery. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 February 24 The President issues an Executive Order suspending litigation against Iran. February 26 The Administration formally constitutes five Cabinet Councils. March 2 The President issues an Executive Order estab- lishing the President's Economic Policy Advisory Board, chaired by George Shultz; will advise the Administration on domestic and international economic policy. March 2 The President speaks at the Mid-Winter Conference of the National League of Cities in Washington, D.C. March 5 The President approves federal aid to Atlanta in the wake of child killings there. March 6 Nationally televised Presidential news conference. March 9 The President proposes replacing federal hiring freeze with permanent federal hiring guidelines. March 10 The President submits to Congress more details of the Program for Economic Recovery outlining 200 additional budget cuts. March 20 The President speaks at the Conservative Political Action Conference dinner in Washington, D.C. March 24 The President designates Vice President Bush to chair the Administration's "crisis management" team. March 26 The President issues an Executive Order to estab- lish the Council on Integrity and Efficiency to identify and eliminate federal waste, fraud and abuse. March 26 The United States declares Poland should be allowed to resolve its own problems without interference from any outside power. March 30 Attempted assasination of President Reagan by John Hinckley, Jr.; Press Secretary James Brady shot and gravely wounded; Secret Service Agent Timothy McCarthy and D.C. Metropolitan Police Office Thomas Delahanty also wounded; incident occurred after speech to AFL-CIO at the Washington Hilton Hotel. April 1 The Administration withholds aid to Nicaragua for sending arms to E1 Salvadoran guerillas. April 6 The President proposes to ease regulations to help Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 the auto industry by eliminating the need for $1.4 billion in capital costs; proposal to lower con= sumer prices by $9.3 billion over the next five years. April 8 April 28 May 1 May 5 May 6 May 7 May 12 May 12 May 17 May 27 May 28 The President issues an Executive Order estab- lishing the Presidential Advisory Committee on Federalism and Coordinating Task Force on Federalism chaired by U.S. Senator Paul Laxalt. The President returns to the White House after 12 days in the hospital. The President announces his decision to sell AWACS planes to Saudi Arabia. The President lifts the Soviet grain embargo. The President makes a nationally televised speech before a joint session of Congress; discusses his Program for Economic Recovery. Japanese government announces its voluntary deci- Sion to limit auto exports to the U.S. for two years. The President announces Philip Habib's mission to Israel, Lebanon and Syria to explore ways to reduce tension there. The Administration orders the Libyan diplomatic mission closed. The House passes the Reagan bipartisan (Gramm- Latta) budget resolution. The Senate passes the President's budget. HHS Secretary Schweiker announces President's proposed Social Security revisions to return the system to financial stability yet protect basic benefits. The President addresses the 1981 graduating class at Notre Dame University commencement exercises. The President addresses the 1981 graduating class at West Point commencement exercises. In a letter to Congress, the President outlines his commitment to three principles for Social Security reform; asks for bipartisan cooperation to save the Social Security system. The President issues an Executive Order estab- Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 lishing the Task Force on the Arts and Humanities. June 12 The President proclaims July 17, 1981, National P.O.W.-M.I.A. Recognition Day. June 16 Nationally televised Presidential News Conference. June 16 The President issues an Executive Order estab- lishing the Presidential Advisory Commission on National Housing Policies chaired by William McKenna. - June 25 The Senate passes the Omnibus Budget Reconciliation Bill. June 26 The House passes the Reagan bipartisan (Gramm-Latta II) budget. June 29 The President speaks at the annual convention of the National Association for the Advancement of Colored People (NAACP) in Denver. July 7 ~ The President nominates Sandra Day O'Connor to be the first woman Justice of the Supreme Court. July 17 The Administration issues a national energy plan. July 20 = 22 The President attends Ottawa Economic Summit. July 27 - The President makes a television address to the- nation asking for support of his tax plan. July 29 Congress passes the President's Economic Recovery Tax Act of 1981 -- the largest tax cut in history. - July 30 July 30 The President announces major immigration and refugee policy. The President speaks at the annual convention of the National Conference of State Legislatures in Atlanta. July 31 ~ The House and Senate agree on the Conference Report on the Omnibus Budget Reconciliation Bill. August 3 The President responds to an illegal strike by air traffic controllers; says that those who do not return to work in 48 hours will be dismissed. August 5 The Administration announces 11 guidelines for revision of the Clean Air Act. August 6 The President signs legislation passed at his request transferring the Maritime Administration from the Commerce Department to the Transportation Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Department. August 13 The President signs into law the Economic Recovery Tax Act of 1981 and the Omnibus Budget Reconcilia= tion Act of 1981; holds an informal press confer= ence. August 20 September 15 Two U.S. Navy fighters shoot down two attacking Libyan fighters during a training exercise in the Mediterranean. The President announces a program to increase participation of historically Black colleges and universities in federal programs. September 18 The President speaks at the dedication of the Gerald Ford Presidential Museum in Grand Rapids, Michigan; meets with President Lopez Portillo of Mexico, Prime Minister Trudeau of Canada and Former President Giscard d'Estaing of France. September 22 The President establishes the Presidential Commis- Sion on Broadcasting to Cuba. September 24 Tie President makes nationally televised address on his Program for Economic Recovery; withdraws Social Security reform proposals and calls for appointment of bipartisan commission. September 25~ Sandra O'Connor sworn in as the first woman Justice of the Supreme Court. September 28 The President outlines the Administration's plans to combat crime in America in speech to the International Association of Chiefs of Police in New Orleans. September 30 The President signs a bill raising the national debt ceiling to more than $1 trillion dollars. October 1 The Administration authorizes sales to the USSR of an additional 15 million metric tons of grain. October 1 Nationally televised Presidential news conference. October 2 The President announces five=part comprehensive plan for modernization of U.S. strategic forces including his decision on the B-1 bomber and MX missile. October 8 The Administration announces a series of.nuclear energy policy initiatives. October 8 Former Presidents Nixon, Ford and Carter meet with the President in the White House then depart for Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Cairo to attend President Sadat's funeral. October 14 October 18 - 19 October 20 October 21 = 24 October 28 November 6 November 10 November 12 November 17 November 18 November 23 November 30 December 3 The President establishes Task Force on Private Sector Initiatives; will promote private sector involvement in meeting social problems. The President attends the Yorktown Bicentennial celebration in Yorktown,~Virginia, with French President Mitterrand. The President establishes the Foreign Intelligence Advisory Board, chaired by Anne Armstrong. The President attends Cancun Summit. Senate approves sale of five AWACS planes to Saudi Arabia. President Reagan announces he favors an extension of the Voting Rights Act. Nationally televised Presidential news conference. The President meets with OMB Director David Stockman, declines his resignation offer; Stockman discusses controversial Atlantic Monthly article in press conference. The President announces all branches of the U.S. military achieved their recruiting goals for fiscal '81 == the most successful year since the start of an all volunteer force in 1973. The President addresses the nation and the world via satellite to propose elimination of inter= mediate range, land=based nuclear missiles. The President issues his first veto -= of the continuing resolution for fiscal '82 appropria= tions Later the same day, the President signs compromise legislation temporarily extending the continuing resolution through December 15, 1981. Presidential Press Secretary James Brady returns to his home after an eight month hospital stay. Beginning of U.S.-Soviet European arms reductions talks. The President announces revision of pension plan regulations to permit construction-oriented pension funds to invest assets in home mortgage markets. The President lifts the ban on Federal rehiring of fired air traffic controllers except by the FAA. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 December 10 The President bans U.S. travel to Libya and calls on American corporations to return their 1500 U.S. employees to the United States inw ake of reports of Libyan assasination plot against U.S. leaders. December 10 The House passes the Continuing Budget Resolution with $4 billion in domestic appropriations cuts asked for by the President. December 11 The Senate passes the Continuing Budget Resolu- tion. December 12 N;artial law declared in Poland. December 15 The President signs the Continuing Budget Resolu= tion. December 16 The President signs an Executive Order establishing the National Commission on Social Security Reform. December 17 Nationally televised Presidential news conference. December 17 The President lights the National Christmas Tree. December 21 The President issues an Executive Order establishing the Task Force On Legal Equity For Women to correct federal regulations that discriminate against women. December 23 The President makes a nationally televised holiday address to the nation; asks Americans to light a candle on Christmas Eve for the people of Poland. December 29 The President signs the Foreign Aid Bills, the first' enacted since 1979. December 29 The President signs into law the Black Lung Pro- gram Bill. December 29 The President signs into law the Multinational Force and Gbservers Participation Resolution ensuring U.S. participation in the implementation of security as= pects of the peace treaty between Israel and Egypt. January 4 The President accepts the resignation of Richard V. Allen, National Security Adviser; names William P. Clark to the fill the position. January 7 The President announces his decision to continue draft registration. January 12 The President announces his support of statehood Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 . for Puerto Rico if the people of the island choose statehood in a free and democratic election. January 14 The President speaks at a luncheon of the New York City Partnership, an association of business and civic leaders, to outline his Private Sector Initiatives effort. January 18 The President transmits to Congress proposed legi- slation allowing tax exemptions for private schools. January 19 Nationally televised Presidential news conference. January 20 The President proclaims January 30 Solidarity Day. January 26 The President delivers televised State of the Union address before a Joint Session of the Congress. January 28 The President announces establishment of a Federal task force to assist the State of Florida in com= batting crime and drug-traffic in South Florida. January 28 ~ The President speaks at a White House luncheon on the centennial of the birth of Franklin Delano Roosevelt. January 28 Italian police free Brigadier General James L. Dozier from Red Brigade captors. January 29 The President issues a statement of U.S. policy to the third United Nations Conference on the Law of the Sea. January 29 The President announces the formation of the Cabinet, Council on Legal Policy. ? January 29 The President sends a message to hunger strikers in the United States Embassy in Moscow protesting the Soviet Union's failure to allow their emigration. February~2 The President transmits to Congress the United States=Bangledesh agreement on nuclear energy. February 4 The President calls on Soviet President Brezhnev to join the United States in negotiations on the reduc- tion of intermediate-range nuclear forces. February 8 The President transmits to Congress his FY83 Budget request. February 9 The President addresses a joint session of the Iowa State Legislature in Des Moines; later that day, addresses a joitg session of the Indiana .State Legislature in Indianapolis. February 10 The President sends to the Congress an annual Econo- Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 mic Report of the President and the Economic Report of the Council of Economic Advisers. February 18 Nationally televised Presidential news conference. February 24 The President addresses the Permanent Council of the Organization of American States outlining his Caribbean Basin Initiative. February 26 The President speaks at the Conservative Political Action Conference dinner in Washington, D.C. March 1' The President transmits to Congress an annual re- port on the state of small business, meets with Small Business Leaders. March 1 The President announces he will not ask Congress to accelerate the schedule of partial natural gas de= control in 1982. March 3 The President speaks at the Los Angeles County Board of Supervisors' Town Meeting in Los Angeles. March 11 The President transmits to Congress a report stating the continuation of a policy of nuclear non=pro- liferation and peaceful nuclear cooperation as re- quired by the Nuclear Non-Proliferation Act of 1978. March 15 The President addresses a joint session of the Alabama State Legislature in Montgomery; later that addresses a joint session of the Tennessee State Legislature in Nashville. March 16 The President makes an address before a joint session of the Oklahoma State Legislature in Oklahoma City. March 17 The President transmits to Congress the ,Caribbean Basin Economic Recovery Act. March 20 The President vetoes Standby Petroleum Allocation legislation. March 22 The President signs into law a House resolution calling on the Soviet Union to cease its repressive actions against Soviet citizens who want to emigrate or practice religious or cultural traditions. March 23 The President transmits to Congress the Enterprise Zone Tax Act to establish an experimental program for economically depressed urban areas: March 23 The President receives the Charles Evans Hughes Gold Medal for Courageous. leadership in Governmental, Civic and Human Affairs" from the National Con- Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 ference of Christians and Jews; awaraea r.o only four Presidents and 13 Americans. March 24 The Senate votes to sustain the President's March 20th veto. March 31 The President sends a letter to government officials in E1 Salvador congratulating them on their success- ful first national election. March 31 Nationally televised Presidential news conference April 2 Argentina invades the Falkland Islands. April 2 The President issues an Executive Order prescrib= d 1 'f in si April 8 April 10 April 13 April 14 April 15 April 15 April 17 April 23 y g ing a uniform system for classifying, ec as and safeguarding national security information. The President makes a radio address to the nation about the Economic Recovery Program, first in new series of weekly radio addresses. The President speaks at the AFL-CIO, Building and Construction Trades Department annual legislative conference in Washinton, D.C. The President departs for Jamaica and Barbados. Secretary of State Alexander Haig begins a Falkland Islands diplomatic mission; holds preliminary dis- cussions with British and Argentine officials. The President makes a radio address to the nation about the Caribbean Basin Initiative and student loans. Secretary of State Haig ends Falkland Islands diplomatic talks due to the failure of Great Britain and Argentina to reach a compromise. The President signs an Executive order establishing the Presidential Commission on Drunk Driving. Secretary of State Haig resumes the Falkland Islands diplomatic mission. The President speaks at a meeting of the National Catholic Education Association in Chicago. The President makes a radio address to the nation about nuclear arms negotiations. The President signs an Executive Order establishing the President's Task Force on Victims of Crime. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 April 24 April 25 April 26 April 27 April 29 April 30 May 1 May 1 May 1 May 3 May 4 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 The President makes a radio address to the nation about taxes, interest rates and tuition tax credits. Israel successfully completes its withdrawal from the Sinai Pennisula. The President speaks at the annual meeting of the U.S. Chamber of Commerce in Washington, D.C. The President meets with National Service Organi= zation leaders to discuss Private Sector Initiatives. The President makes a nationally televised address to the nation about the FY X83 budget. The United States imposes limited sanctions against Argentina. Great Britain and Argentina go to war over the Falkland Islands. The President makes a radio address to the nation about the Economic Recovery Program. The President speaks at the opening ceremony of the World's Fair in Knoxville, Tennessee. The President and Mrs. Reagan visit the Philip Butler family in College Park Woods, Maryland to express re= gret for a cross burning on the Butler's front lawn. The President attends the Republican House/Senate fundraising dinner "Salute to President Ronald Reagan" in Washington, D.C. biay 8 The President makes a radio address to the Nation about the Economic Recovery Program and unemployment. May 9 The President addresses the 1982 graduating class at Eureka College commencement exercises. May 13 Nationally televised Presidential news conference. May 15 The President makes a radio address to the Nation about Armed Forces Day. May 17 The President transmits to Congress a proposed con= stitutional amendment to allow voluntary prayer in public schools. May 21 The Senate passes the FY '83 Congressional Budget Resolution. May 22 The President makes a radio address to the nation about the federal budget. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 May 26 May 28 May 29 May 31 May 31 June 2-11 June 2=6 June 5 June 6 June 7 June 7 June 8 June 9 June 9 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 The President transmits to Congress a report on the Sinai Support Mission of U.S. troops. The President speaks at the Mexican-United States Interparliamentary Conference in Santa Barbara, California. The President makes a radio address to the nation about the FY X83 Budget and the Western Alliance. The President speaks at Arlington National Ceme= tary on Memorial Day. The governments of the United States and the Soviet Union agree to begin formal negotiations on reducing intermediate-range nuclear forces. The President proclaims July 9, 1982 to be National P.O.W.- M.I.A. Recognition Day. The President departs for meetings in Europe. The President attends the Versailles Economic Summit Conference in Versailles, France. The President makes a radio address to the nation about his trip to Europe from Versailles, France. Israel invades Lebanon. The President meets with Pope John Paul II. The President meets with President Alessandro Pertini and Prime Minister Spadolini of Italy. The President addresses members of Parliament in London, England. The President addresses the Bundestag in Bonn, Fed- eral Republic of Germany. The President asks Congress to provide $20 milllion to aid victims of the conflict in Lebanon. The House passes the FY '83 Congressional Budget Resolution. The President meets with members of the North Atlantic Council of NATO at Schaumberg Palace in the Federal Republic of Germany. The President speaks in Berlin, goes to Checkpoint Charlie to view the Berlin Wall. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 June 11 The President returns from Europe. June 15 There is a cease-fire between Argentina and the United Kingdom in the Falkland Islands. June 17 The President speaks before the United Nations General Assembly during a special session on disarmament. June 18 The President announces $10 million in additional aid to the war-torn country of Lebanon. June 22 The President transmits to Congress proposed legi= -~ slation for federal income tax credit for nonpublic ? school tuition. June 23 Congress approves the FY X83 Congressional Budget Resolution. June 23 The President signs a bill making it a crime to disclose the names of U.S. intelligence agents. June 24 The President issues an Executive Order establishing a Federal drug abuse policy and begins a new cam- paign against drug abuse. June 24 The President vetoes the FY '82 Supplemental Appro= priations Bill passed by the House. June 25 The President vetoes a second FY '82 Supplemental Appropriations Bill passed by the House. June 25 Secretary of State Alexander Haig resigns; the President nominates George P. Schultz to succeed. June 26 Israel and Lebanon announce a cease-fire and agree to begin negotiations. June 29 The President signs into law the longest extension of the Voting Rights Act in history. June 30 The President signs an Executive Order establishing the President's Private Sector Survey on Cost Con- trol in the Federal Government. June 30 Nationally televised Presidential news conference. July 3 The President makes a radio address to the nation about Independence Lay. July 4 The President announces his national space policy. July 12 The President terminates economic sanctions against Argentina imposed during the Falkland Island dispute. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 July 14 The Administration issues a statement on continued r w I July 14 July 15 July 18 July 19 July 19 July 20 July 21 July 22 July 23 July 23 July 23 . a ran United States neutrality in the Iraq- The President issues an Executive Order to provide for Federal, State and Local government review of federal programs. The Senate confirms George P.~Schultz as Secretary of State. The President signs into law the FY X82 Supplemental Appropriations bill. The President signs into law an Urgent Supplemental Appropriations Act. The President speaks at the Balanced Budget Amend= ment rally at the Capitol. The President attends a reception marking formation of the James S. Brady Presidential foundation. The House approves funds for the production of the MX Missile. The President signs the Small Business Innovation Development Act of 1982. Murray L. Weidenbaum resigns as Chairman of the Council of Economic Advisers. The President signs into law the Federal Employees Flexible and Compressed Work Schedules Act of 1982. The President sends a letter to Members of the House of Representatives asking for support for a biparti- san strategic arms reduction resolution and not a . nuclear freeze resolution. July 28 Nationally televised Presidental news conference. July 30 The Administration announces a one year extension of the United States-Soviet Grain Sales Agreement. August 2 The President meets with Israeli Foreign Minister Yitzhak Shamir to discuss the conflict in Lebanon. August 2 The President speaks at the National Corn Grower's Annual Convention in Des Moines, Iowa. August 3 The President speaks at the Centennial Meeting of the Supreme Council of the Knights of Columbus in Hartford, Connecticut. August 3 The President signs the Energy Emergency Prepared- Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 ness Act of 1982. August 4 The Senate passes the Balanced Budget Amendment. August 5 The House passes a strategic arms reduction reso= lution supported by the President. August 6 The President nominates Martin Feldstein to be Chairman of the Council of Economic Advisers. August 6 The Administration announces an agreement on European exports of steel to the United States August 16, The President makes a nationally televised address to the nation on the Tax Equity and Fiscal Respon- sibility Act. August 17 The Administration and China issue a joint statement on arm sales to Taiwan. August 19 Congress passes the Tax Equity and Fiscal Respon= sibility Act. August 20 The President announces his approval of the deploy- ment of United States forces in Beirut, Lebanon as part of a multinational force to assist in the withdrawal of the PLO from Lebanon. August 23 The President congratulates Bashir Gemayel, newly e- lected President of Lebanon. August 24 The President sends a report to the Speaker of the House and President of the Senate on the deployment . of U.S. forces in Lebanon. August 26 The President transmits to Congress an alternate plan for federal civilian pay increases of four percent. August 27 The President announces the formation of the White House Coordinating Council on ti~~omen. August 28 The President vetoes the Supplemental Appropria- tions Bill for Federal programs and agencies. August 28 The President makes a radio address to the nation on the national economy. September 1 The President makes a nationally televised address to the nation about United States policy for peace in the Middle East. September 4 The President makes a radio address to the nation about Labor Day. September 7 The President presents Ambassador Philip C. Habib Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 with the Presidential Medal of Freedom. September 8 The President sends a letter to the Speaker of the House and President of the Senate calling for United States readiness to extend credit to Mexico. September 9 The President signs into law the Cumberland Island Wilderness Area and Crater Lake National Park Bill; designates the first wilderness area granted statutory protection during the Administration. September 9 The President speaks at a Kansas Republican Party fundraising luncheon in Topeka. September 9 The House overrides the President's veto of the Supplemental Appropriations Bill. September 10 The Senate overrides the President's veto of the Supplemental Appropriations Bill. September 10 The President speaks at the Utah Republican Party Picnic in Hooper. September 11 The President makes a radio address to the nation about crime and criminal justice reform. September 13 The President transmits to Congress the Criminal Justice Reform Act of 1982 to strengthen society's defenses against crime in America. September 13 The President sends a message to Congress proposing . September 13 September 14 additions to the National Wild and Scenic Rivers and National Wilderness Preservation Systems totalling 245 miles of rivers and 21,000 acres of wilderness. The President issues an Executive Order establishing the President's National Security Telecommunications Advisory Committee. The President makes a statement condemning the assasination of Bashir Gemayel, President=elect of Lebanon. September 15 The President speaks at the National Black Republi- can Council dinner in YJashington, D.C. September 16 The President instructs Congress to convene in a special session following the November elections to pass regular appropriations bills for FY '83. September 17 The President speaks at the San Gennaro Festival attended by New Jersey Republican candidates. September 18 The President makes a radio address to the nation about prayer in schools. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 September 20 The President makes a nationally televised address to the nation announcing the formation of a new multinational peacekeeping force in Lebanon. September 22 The President meets with Black college and university Presidents; announces a stepped-up plan to increase participation of these institutions in Federal programs. September 22 The President announces the formation of the Cabinet Council on Management and Administration. September 22 The President submits to Congress the National Debt th Treasur Depart- l September 22 September 22 September 25 September 28 September 29 October 1 October 2 October 4 October 7 October 8 October 9 October 11 October 12 owing e y Retirement Act of 1982 al ment to use the proceeds from the sale of Federal property to retire the national debt. The President signs into law a Senate Joint Reso= lution ending a 4 day railway strike. The President sends a letter of congratulations to Amin Gemayel, the President-elect of Lebanon. The President makes a radio address to the nation about the economy. Nationally televised Presidential news conference. The President speaks at a State Republican Party Rally in Richmond, Virginia. The House defeats the Balanced Budget Amendment. The President makes a radio address to the nation about the federal drug policy. The President speaks at a reception for the Bud Brown for Governor campaign in Columbus, Ohio. The President speaks at a State Republican Party Rally in Reno, Nevada. The President signs into law the Export Trading Company Act of 1982. The President makes a radio address to the nation about Solidarity and U.S. relations with Poland. The President speaks at a Statewide Republican Candidates Rally in Irving, Texas. The President signs into law the Missing Children Act to help parents trace missing children. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 - October 12 The President signs into law the Victim and Witness Protection Act of 1982. October 13 The President signs into law the Job Training Partnership Act; will train more than one million Americans a year in skills for private sector jobs. October 13 The President makes a nationally televised address to the nation about the economy. October 14 The President speaks via satellite from Washington, D.C. to eleven campaign events across the nation. October 14 The President signs into law student aid legislation. October 14 The President announces Federal initiatives against drug trafficking and organized crime. October 14 The President signs into law the Veterans Compensa= tion, Education and Employment Amendments of 1982, providing a 7.4 percent cost-of-living increase to 2.3 million disabled veterans. October 15 The President makes a radio address to the nation about agriculture and grain exports. October 15 The President signs into law the Garn-St Germain Depository Institutions Act of 1982. October 15 The President signs into law the FY '83 Niilitary Con- struction Appropriation Act providing budget authori- ty of $7.0 billion for vitally needed military facilities in the U.S. and Europe. . October 16 The President makes a radio address to the nation about the economy. October 18 The President signs into law the Coastal Barriers Resources Act saving taxpayers millions of dollars while preserving undeveloped coastal lands. October 20 The President speaks at a rally for Republican Party candidates in Peoria, Illinois. October 21 The President speaks at a State Republican Party Rally in Omaha, Nebraska. October 22 The President signs into law a bill giving Amerasian children the right to claim American citizenship. October 23 The President makes a radio address to the nation about economic and budget issues. October 25 The President signs into law a bill establishing a grant program to encourage States to establish pro- Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 October 25 October 26 October 28 grams to reduce or eliminate drunk driving. The President signs into law a bill which estab- lishes the White House Conference on Productivity. The President speaks at a State Republican Party Rally in Raleigh, North Carolina. The President speaks at State Republican Party Rallies in Great Falls, Montana and Las Vegas, Nevada. October 29 The President speaks at a State Republican Party .. Rallies in Salt Lake City, Utah and Roswell, New Mexico. October 30 The President makes a radio address to the nation about the Economic Recovery Program. November 5 Secretary of Energy James B. Edwards resigns; the President appoints Donald P. Hodel. November 6 The President makes a radio address to the nation about the Congressional agenda and the economy. November 10 Second anniversary of Solidarity. November 11 Death of Soviet President Leonid Brezhnev. November 11 Nationally televised Presidential news conference. November 13 The President makes a radio address to the nation about East-West trade relations. November 19 The President lifts sanctions against U.S. and for= eign companies for selling U.S. developed technology for use in the construction of the Soviet-Western . Europe natural gas pipeline. November 20 The President makes a radio address to the nation about international free trade. November 20 The President issues an Executive Order establish- ing the International Private Enterprise Task Force; will advise on the role of private enterprise in the implementation of programs under the Foreign Assistance Act of 1961. November 22 The President announces his MX basing decision. November 22 The President makes a nationally televised address to the nation about arms reduction and deterrence. November 27 The President makes a radio address to the nation about the highway and bridge repair program. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 - November 29 November 30 November 30- December 4 December 4 December 9 December 9 December 10 The President speaks at the IJational League of Cities annual convention in Los Angeles. The President submits to Congress legislation for a highway and bridge repair program. The President departs for meetings in Latin America --visits Brazil, Costa Rica, Columbia and Honduras. The President makes a radio address to the-nation about the Caribbean Basin Initiative. The President announces the Administration's pro= posal of an agriculture payment-in-kind program to address the problem of surplus commodities. The President speaks at a dinner honoring the Republican majority in the Senate in Washinton, D.C. The President proclaims December 12, 1982 to be a Day of Solidarity and Prayer for Poland. Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 PRESIDENTIAL MEETI~;GS V1ITH FOREIGN LEADERS (January 21, 1982 through December 15, 1982) In his first 23 months in office, Presi6ent~Reagan met with leaders from 55 countries throughout the world. His travels took him to 11 countries -- eight in the Americas and three in Europe -- and the Vatican. STATE-VISIT (16 total) February 26, 1981 May 7, 1981 May 21, 1981 June 30, 1981 August 5, 1981 September 9, 1981 Cctober 13, 1981 November 2, 1981 November 17 , 1981 February 3, 1982 riarch 25, 1982 April 19, 1982 May 12, 1982 July 29, 1982 September 16, 1982 October 12, 1982 November 15, 1982 December 7, 1982 Prime Minister Thatcher Prime Minister Suzuki Chancellor Schmidt Prime Minister Fraser President Sadat Prime Minister Begin King Carlos King Hussein President Herrera President Mubarak President Pertini Queen Beatrix President Fiqueiredo Prime Minister Ghandi President Marcos President Soeharto Chancellor Helmut.Kohl President Zia Great Britain Japan Germany Australia Egypt Israel Spain Jordan Venezuela Egypt Italy Netherlands Brazil India Philippines Indonesia Germany Pakistan WORKING VISITS (22 total) January 28, 1981 February 2, 1981 June 9, 1981 June 19, 1981 July 10, 1981 July 24, 1981 September 25, 1981 October 6, 1981 January 5, 1982 February 17, 1982 March 12, 1982 April 29, 1982 May 19, 1982 June 21, 1982 July 21, 1982 July 26, 1982 August 17, 1982 Prime Minister Seaga President Chun President Portillo Prime Minister Lee Prime Minister Trudeau Prime Minister Muldoon President Moi Prime Minister Prem Chancellor Schmidt Prime Minister Martens President Mitterand Prime Minister Mzali King Hassan Prime Minister Begin Prime Minister Lee President Ahiyo General Doe Jamaica Korea Mexico Singapore Canada New Zealand Kenya Thailand Germany Belgium France Tunisia N,orocco Israel Singapore Cameroon Liberia Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 September 8, 1982 October 19, 1982 October 22, 1982 November 3, 1982 December 15, 1982 (Scheduled) President Vigdis President Gemayel King Hassan Prime Minister Spadolini Prime Minister Balsemeo Iceland Lebanon Morocco Italy Portugal i`dEETINGS~AND~COURTESY CALLS (82 total) February 12, 1981 February 12, 1981 February 24, 1981 February 25, 1981 February 28, 1981 March 9, 1981 March 17, 1981 March 19, 1981 March 20, 1981 March 24, 1981 April 16, 1981 April 30, 1981 May 1-2 , 1981 May 5, 1981 May 8, 1981 May 15, 1981 hiay 15 , 1981 May 22, 1981 June 5, 1981 June 8, 1981 June 11, 1981 June 15, 1981 June 15, 1981 July 9, 1981 August 6, 1981 September 15, 1981 September 16, 1981 September 17, 1981 September 17, 1981 September 17, 1981 September 21, 1981 September 24-25, 1981 September 25, 1981 October 2, 1981 October 8, 1981 October 16, 1981 October 16, 1981 November 3, 1981 November 3, 1981 November 12, 1981 November 18, 1981 November 20, 1981 Foreign Minister Colombo Dep. Prime Minister Zawawi Foreign Minister Shamir For. Min. Francois-Poncet Prime Minister Thatcher Foreign Minister Genscher President-elect Viola Ambassador Chai Former Prime Minister Foreign Minister Ito Secretary General of NATO Secretary General Waldheim Prince Charles Ambassador Evron Prime Minister Suzuki Prime Minister Botha Foreign Minister Andrei Chancellor Schmidt Foreign Minister Cheysson President Portillo Middle Eastern Ambassadors Ambassador Taylor President Bongo Foreign Minister Llorca President Sadat Mayor von Weizsacker Patriarch Khoraiche President d'Estaing Prime Minister Trudeau President Portillo President Duarte Prince Bandar President b4oi Vice President Ambassador Prime Minister Jugnauth Chancellor Helmut Kohl King Hussein Iakovos of Greek Orthodox Foreign Minister Stray President Herrera President Nimeiri Italy Oman Israel France Great Britain Germany Argentina China Japan Japan The U.N. Great Britain Israel Japan South Africa Romania Germany France Mexico Canada Gabonese Republic Spain Egypt Berlin Antioch France Canada Mexico E1 Salvador Saudi Arabia Kenya Egypt Egypt Mauritius Germany Jordan Church Norway Venezuela Sudan Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8 November 22, 1981 December 1, 1981 December 8, 1981 December 15, 1981 December 18, 1981 December 18, 1981 December 27, 1981 January 14, 1982 January 18, 1982 February 4, 1982 February 23, 1982 March 9, 1982 Niarch 11, 1982 A4arch~ 17 , 1982 March 18, 1982 tilarch 22, 1982 March 22, 1982 March 25, 1982 Niarch 29 , 1982 April 16, 1982 May 17, 1982 June 15, 1982 June 16, 1982 June 22, 1982 June 23, 1982 June 30, 1982 July 14, 1892 July 20, 1982 July 26; 1982 July 30, 1982 August 2, 1982 August 10, 1982 October 1, 1982 October 5, 1982 October 18, 1982 November 4, 1982 November 7, 1982 November 12, 1982 December 13, 1982 King Gustav President Diobutu President Kyprianou Secretary of State Casaroli Ambassador Foreign Minister Ambassador Spasowski Secretary General Minister Abe Ambassador Petrigani Esaki Foreign Minister Genscher President Siad Barre Prime Minister Haughey Parliament Member Strauss For. Minister Sakurauchi Premier Swan Latin American Foreign Min Defense Minister Ghazala Islamic Ambassadors Prime Minister Fraser President Omar Bongo Foreign Minister Ali President Monge Prime Minister Thatcher President Toure President Suazu Foreign Minister General Jusuf Foreign Minister Foreign Minister Peres President Patriarch King Olav of Syria Ali Shamir Espriella Diodorus President Monge Prince Phillip Foreign Minister Ali Prime Minister Schluter Foreign Travel (7 total) March 10-11, 1981 July 19-21, 1981 Cctober 21-24, 1981 April 7-11, 1982 June 2-11, 1982 October 8, 1982 November 30 - December 4, 1982 Sweden Zaire Cyprus Vatican Saudi Arabia Saudi Arabia Poland The U.N. Japan Italy Japan Germany Somalia Ireland Germany Japan Bermuda isters Egypt Australia Gabonese Republic Egypt Costa Rica Great Britain Guinea Honduras and Saudi Arabia Indonesia Egypt Israel Israel Panama Norway Costa Rica Great Britain Egypt Denmark Canada Canada Mexico Jamaica, Barbado:~ France, Italy, Vatican, Great Britain, Germany 1~Iexico Brazil, Colombia Costa Rica Approved For Release 2007/12/13: CIA-RDP85M00364R001903620015-8