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mitted to the nuclear testing treaty safe- torney, 1985–1986; and Chief of the Crimiguards that were submitted to the Senate in nal Division, 1982–1985. In addition, Mr. 1987, which are essential to the national Mueller served in the Office of the United security and to the maintenance of a credi- States Attorney, Northern District of Calible nuclear deterrent.

fornia, in several capacities: Interim Chief The Protocols represent the successful of the Criminal Division, 1981-1982; Chief culmination of several years of effort to pro- of Special Prosecutions Unit, 1980–1981; Asvide for effective verification of compliance sistant U.S. Attorney in the Criminal Diviwith the Treaties. Negotiations to develop sion, 1978-1980; and Assistant U.S. Attorney new Protocols to verify compliance with in the Civil Division, 1976-1977. limits established by the Treaties began in Mr. Mueller graduated from Princeton November 1987 and continued until May University (B.A., 1966) and the University of 1990, when the Protocols were completed. Virginia (J.D., 1973). He served in the U.S. The Protocols provide for a variety of ac- Marine Corps, 1967-1970, and was awardtivities related to verification, including the

ed the Bronze Star, two Navy Commendause of the hydrodynamic yield measure

tion Medals, and the Purple Heart. He was ment method. Operational changes in the

born August 7, 1944, in New York, NY. Mr. U.S. nuclear test program, including Mueller is married, has two children, and changes at the Nevada Test Site, which im

currently resides in Weston, MA. plementation of the verification measures will entail were considered carefully and have been judged manageable and therefore acceptable in the interests of effective verification.

The President's News Conference I believe these Treaties are in the national interest. Therefore, I urge the Senate to

June 29, 1990 give early and favorable consideration to the Treaties including their Protocols and to Foreign and Domestic Issues give its advice and consent to their ratifica

The President. Good morning, everybody. tion.

I'm leaving in a few hours and will be gone

George Bush from Washington for several days. Congress The White House,

is about to close up shop for the Fourth of

July holidays. And so, I thought it would be June 28, 1990.

a good idea to bring you up to date on a wide array of current topics and respond to your questions.

During the next 2 weeks, the U.S. will Nomination of Robert S. Mueller III To join its allies in considering a number of Be an Assistant Attorney General

crucial political, security, and international June 28, 1990

economic issues. And seldom in the last 40

years have such questions had such direct The President today announced his inten- impact on the lives of all Americans. Today tion to nominate Robert S. Mueller III to be in the U.S., we are carefully examining the an Assistant Attorney General for the historic changes in Eastern Europe, size of Criminal Division at the Department of Jus- our military forces, our ability to compete tice. He would succeed Edward S.G. in world markets, the assistance that we Dennis, Jr.

provide to help emerging democracies, and Since 1988 Mr. Mueller has served as a the size and priorities of our own budget, partner with the law firm of Hill and and how to continue the 90 months of ecoBarlow in Boston, MA. Prior to this, he nomic expansion that we've enjoyed. These served in the Office of the U.S. Attorney, issues are not abstract. Every American has District of Massachusetts, in several capac- a stake in how we as a nation address these ities: Deputy U.S. Attorney, 1987-1988; U.S. very complex questions. On July 5th and Attorney, 1986–1987; First Assistant U.S. At- 6th in London, the NATO alliance will gather to forge a new direction for the from south of our border has been overfuture. And at the Houston economic whelmingly positive. This included a new summit, we will press for progress in the proposal on official debt in the hemisphere Uruguay round of trade negotiations, dis- which will help our neighbors in Latin cuss economic support for various countries, America and the Caribbean resume the and review progress on the environment.

process of growth. These international concerns are reflect

We developed a plan for protecting our ed in many of the decisions I made just this

coastal resources, this OCS (outer continenweek. First, we're doing what is necessary

tal shelf oil and gas development] decision, to assure continuation of the economic ex

while also endeavoring to protect energy pansion, now in its 90th month, and we

independence. want to keep it going.

As I leave for the Fourth of July holiday We now estimate a deficit of over $150 billion in fiscal 1991, not counting the costs

and then from there to the NATO summit, of the savings and loan cleanup. And this

and then to the Houston economic summit, means that unless Congress acts there will

I just wanted to assure you that America be a cutoff in October of nearly $100 billion

will squarely face the challenges of leaderin government services under the sequester ship that are before us, both domestically provisions of the Gramm-Rudman-Hollings.

and in terms of international affairs. The potential results: draconian cuts in de

Tax Revenue Increases fense, student grants, and a wide array of other necessary domestic services.

Q. Mr. President, I'd like to ask you about To avoid this, tough decisions must be your reversal on no new taxes. Do you conmade. Leadership is needed, and that is ex- sider that a betrayal of your promise? And actly what administration officials are seek- what do you say to Republicans who coming to provide and, indeed, in these talks, I plain that you've robbed them of the same believe, are providing. The budget negotia- campaign issue that helped get you elected? tions now underway are a make-or-break The President. I think-what I consider it effort at responsible government. The con

is a necessary step to get stalled budget gressional budgeting process must succeed. negotiations moving. I am very encouraged The negotiators are facing tough questions with the approach taken now by Republiabout where to make cuts and where to cans and Democrats in these important disraise the revenues.

cussions that are going on. I'm not going to These are not decisions that anyone rel- discuss details—what I'll accept and what I ishes. They are decisions that Democrats

won't accept-but things are moving, and I and Republicans alike have got to face with

think that much more important today is candor and courage. Frankly, I believe that

getting this deficit down, continuing ecoultimately good politics is rooted in good

nomic expansion, and employment in this government. I'm optimistic that we can get a budget agreement legislated which not

country. So, that's the way I'd respond to it.

Q. Can people trust politicians if they only tells the world that America puts its fiscal house in order but also will garner the

make statements and are willing to break full support of the American people.

them? Secondly, this week we reached an agree

The President. You know, I recall a previment with the Japanese on a structural im

ous flurry when I was Vice President, and pediments initiative that's going to help to

there was some economic plans proposed open markets and create new opportunities

back in '82 that caused a furor—something for business and commerce.

like we're hearing now. And the President, Next, we took an important step toward in my view, did what was right. And so, I increasing jobs, opportunity, and economic think that we're on the right track. I think prosperity throughout our hemi- that the arrows have been flying—front, sphere-Enterprise for the Americas—and in- back, sideways—but that's what I get paid novative and, I think, visionary plan for in- for. I think we're on the right track now. I creased trade and investment with Latin think we'll have strong support from both America and the Caribbean. The response sides of the aisle.

own

Q. Mr. President, but do you believe it hard to go after the criminals and to have will hurt your credibility?

in place rules and regulations so that this The President. No, not in the long run. will never happen again and to protect the

Q. Why not? People are already question- depositors. Those are the three key eleing

ments of what I'm trying to do. The President. Because what people are

Q. But where do you pay for it? Is it out interested in are jobs, economic growth. of the taxes the Government takes in every People know this deficit is bad. People

year from the American taxpayer? know that we're going to have to take some

The President. Well, we have to. People action. And that's why I think not.

are going to have to pay for it. And it goes Q. What will you say to American people who said you made a promise, no new

as a part of all our expenditures I'm talking

about. There has got to be a remedy. taxes, now you've

The President. I'd say I take a look at a Middle East Peace Process new situation. I see an enormous deficit. I

Q. Mr. President, on another subject. see a savings and loan problem out there

Prime Minister Shamir (of Israel] has sent that has to be resolved. And like Abraham Lincoln said, I'll think anew. I'm not violat

you

The President. Good, Michael (Michael ing or getting away from my fundamental

Gelb, Reuters). I was hoping we'd get to conviction on taxes, anything of that nature, not in the least. But what I've said is on the

another one. (Laughter] table, and let's see where we go. But we've

Q. We can go back and do taxes later. got a very important national problem, and Prime Minister Shamir has sent you what I think the President owes the people his

appears to be a pretty tough letter ruling judgment at the moment he has to address out flatly talks with any Palestinians with that problem. And that's exactly what I'm any sort of authority. Do you feel the peace trying to do.

process is deadlocked, and are you conLook, I knew I'd catch some flak on this cerned that the hardliners, the voices of exdecision—just those two words—but I've tremism,

have the got to do what I think is right, and then I'll throughout the region? ask the people for support. But more im- The President. I'm concerned about a portant than posturing now or even negoti- deadlock in the peace process. We have reating is the result. Do we continue to pro- ceived the Shamir letter; came over to me vide jobs for the American people, and do late last night. The analysis process between we continue to provide economic growth, NSC (National Security Council] and State and do we try to stop saddling the genera- has just started, so I can't give you or protions on the way up, the young people, with vide the American people with a response absolutely unacceptable deficits?

to that letter. But, yes, I am very concerned Savings and Loan Crisis

about a high centering of the peace process. Q. What will you do with the savings and

And we've had a plan, and it is a sound loan situation? Is there any way to do a

plan, and I want to see it go forward. So, budget with that still coming out of general

we will be analyzing the Shamir response revenue, or do you have to push the whole very, very carefully and, hopefully, then go issue off to the side?

back and say, Find some way; find some The President. We can't push it off to the

material in the response that permit us to side: we've got to solve the problem. My

get these talks going again. It is essential. interest on that one, incidentally, is to pro

The status quo is unacceptable to everytect the depositor, put the people that body. But I can't give you right now whethbroke the law in jail. And that is exactly

er I think the letter is negative or positive what the policy that we proposed did. We or something of that nature. came in here and 18 days after taking office Q. Well, can you see any way to get this initiated a very important savings and loan peace process going unless the Israelis show policy. And the size of the savings and loan some willingness to talk to Palestinians with problem is terrible. And we're trying very some authority?

now

upper hand Nice try.

The President. I think there has got to be that's discussed or each kind of budget discussion with Palestinians, and that has to reform or each kind of spending cut, I will happen. And we will push and find ways to be doing something that I have asked our make it happen if we can. We're halfway negotiators and the Congress not to do. across the world, but we are not going to Q. Yes, but when you say in your stategive up on that kind of solution to this

ment tax revenues are required, is that the problem. We have to do that. But if we get same as taxes? totally stiff-armed on the Secretary of The President. And I say budget reforms State) Baker approach, or what was the are required, and I say spending cuts are Shamir plan, Mubarak's (President of required. So, let's see where we come out Egypt) help on it—he could have his name

on that. on it—then we go back to the drawing

Q. Is it taxes? board because we're not going to sit here The President. Is what taxes? and do nothing.

Q. What you're saying. Are you saying Federal Budget Negotiations

higher taxes are required? Q. Mr. President, I'm sorry, but I'd like to

The President. Lesley, I've told you what

I've said, and I can't help you anymore. go back to taxes.

The President. Lesley (Lesley Stahl, CBS News], I thought you'd want to get back to

Q. You said we needed candor. that.

The President. You've got it. You've got Q. I'm sorry. I know it's hard for you. I

it. You've seen the arrows coming my way, can tell it is, and it's difficult.

and that's fine. But let people interpret it The President. It's not hard.

anywayQ. Okay, if it's not hard, could you clarify

Q. A lot of people what seems to be a fuzzing up of the issues The President. Well, I want to leave it the by some Republicans who are trying to say way I said I would so the negotiators are that your new statement isn't new? Are you free to discuss a wide array of options, intelling the American people that this cluding tax increases. Does that help? budget outcome is going to be higher taxes? Q. No. (Laughter] The President. I'm telling the people that

Tax Revenue Increases there are negotiations going on right now. There are no preconditions, and everything Q. Mr. President, you mentioned a couple is on the table. We will see where we come of times that you're getting arrows from all out. And when we get an agreement that is directions. One newspaper headline that supported by Democrats and Republicans declared “Read My Lips: I Lied.” Is this alike—and if I think it's a good agree

kind of criticism justified? Is it fair? Do you ment, I will then tell the American people

deserve it? clearly why they need to support it-what's The President. Well, I expected it, but I at stake for them in terms of jobs, contin- think the deserving of it-the proof of the ued growth in this economy.

pudding is going to be in the eating and Q. You're not saying it. You're not saying

how it comes out. Because I think the we have to raise taxes. Why aren't you American people recognize that the budget saying those words?

is greater than we had predicted and the The President. I'll tell you—sorry I missed

Democrats had predicted. The economy has your point. We've agreed with the Demo- been slower. And so, we'll just wait and see cratic leaders that we would not discuss the how we come out. But, no, I can't say I details of what's going on in these discus- didn't expect to hear some campaign words sions, and we're not going to do that. If and played back to me, and it's been fairly inwhen we come up with a program that tense. raises revenues

and our original budget But I'll tell you, I've been more relaxed talked about that and if there are taxes in about it than I thought it would be. I went it, why, then I will go out there and advo- back into history and took a look at what cate strong bipartisan support for this. But others have had to go through in this job. if I get into going into each kind of tax So, it hasn't been as tense. You know, we

can

had some congressional candidates over ican people and say: Look, we've all had to there yesterday-people running. And they give or take a little on this. But this agreedon't want to see tax increases. Some of ment is going to be good for future generathem-I could see them: How are we going tions. It's going to be good for the economy. to handle this? We don't want to be rude to

It's going to be good for jobs. Then people the President, but we feel strongly. So, one will say, Look, we support the President. or two of them, a couple of them, spoke up. And I could totally empathize with what

Tax Revenue Increases they were going through. We didn't have Q. Mr. President,

you walk us time because it was about a 45-second

through your thinking just a little bit? Was handshake. But if we had, I'd have said: there one particular moment when you reNow, look, you've got to look at the big

alized you were going to have these campicture here. Stay with your position. Advo

paign promises played back at you all day? cate what you believe and what you tell

The President. The minute I decided that your constituents what you'll try to do.

we would go forward on a joint statement, Then just stay a little bit openminded so

which I felt was necessary to get the budget when we get an agreement—and I hope we will—that is good for the country that you

process moving. But I'd had a preview of

coming attractions because when we said can say, Well, we can accept this. Because we're going to need support from Republi

no preconditions—maybe that wasn't the cans and Democrats alike, to say nothing of

exact word—but no preconditions, arrows the American people. But I think the

started flying. And I understand this. I've people will support it. I think they want to

been in the political wars. But I am also see jobs and economic growth, and that is

President, and I've got to try now to look at what is at stake here.

the big picture and the welfare of this coun

try and put it ahead of my own strongly Federal Budget Negotiations

held preferences and everything else. And Q. But within hours after you released that's exactly what's happening. The procthe statement, some of your staff mem- ess has started to move forward as a result bers—Chief of Staff John Sununu, for one- of that statement with a seriousness that I was up on the Hill trying to assure conserv- applaud. ative Republicans that nothing's changed. Q. Could you talk a little bit about what At this point, whose lips should the Ameri- led you to feel that you needed to can people believe?

The President. Is this a third followup? The President. I think what he was talk

That's unfair. ing about is that everything is on the table.

Q. No, a second. Second for me. Nothing's changed. I saw a lot of interpretations of what he said, but I've not seen a

Q. Lesley got eight followups. statement or anything of that nature.

Q. But could you talk more about what You've got various interpretations from var

led you to believe that that statement was ious political factions. You've seen the

necessary? Was there some moment of Democratic study group has put out a man

epiphany? Was there any particular bit of date of what has to happen to have it just

data that laughter exactly their way. We have people that feel

The President. You mean, did I suddenly very strongly on our side. And so, this we get hit with the lightning? No, I suddenly expected. We expected Members of Con- was presented with the fact from Demogress who have strong convictions on how crats and Republicans and our three able to approach this problem to weigh in. We negotiators, in whom I have tremendous expected editorial comment. We expected, confidence, we've got to do something to as I say, some of the slings and the arrows. get the process going for it. But I don't

But I just have a comforting feeling after recall any–because I'm not changing my 2 or 3 days now that if I do my job right, view on taxes. I'm just saying everything's and that is to help facilitate the negotia- on the table. We may have to do something tions and then we can get a bipartisan here. But if I were going to go back and, agreement. And then I can go to the Amer- say, do it my way, we'd figure out a way

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