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Text
NLWJC-KAGAN
EMAILS RECEIVED
ARMS - BOX 075 - FOLDER -003
[04/08/1998 - 0410911998]
�ARMS Email System
Page 1 of 2
RECORD TYPE: PRESIDENTIAL
(NOTES MAIL)
CREATOR: Cynthia A. Rice ( CN=Cynthia A. Rice/OU=OPD/O=EOP [ OPD 1 )
CREATION DATE/TIME: 8-APR-1998 17:05:48.00
SUBJECT:
Kentucky Smoking Data for Speech--if you still want it
TO: Laura Emmett
READ:UNKNOWN
CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO 1
TO: Bruce N. Reed ( CN=Bruce N. Reed/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Elena Kagan
READ: UNKNOWN
CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD 1 )
TO: Thomas L. Freedman ( CN=Thomas L. Freedman/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
CC: Mary L. Smith ( CN=Mary L. Smith/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
CC: Cynthia Dailard ( CN=Cynthia Dailard/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
CC: Lowell A. Weiss ( CN=Lowell A. Weiss/OU=WHO/O=EOP @ EOP
READ: UNKNOWN
WHO 1 )
TEXT:
Percent of U.S. high school students smoking cigarettes, 1997: 36.4%
Percent of KY high school students smoking cigarettes, 1997: 47%
Percent of u.S. high school students using smokeless, 1997: 9.3%
Percent of KY high school students using smokeless, 1997: 15.6%
Thomas L. Freedman
04/07/98 06:20:07 PM
Record
Record Type:
To:
Lowell A. Weiss/WHO/EOP
cc:
Mary L. Smith/OPD/EOP, Cynthia A. Rice/OPD/EOP
Subject:
Speech
Here are some other elements that may be of us in the speech.
1. If we pass the President's principles,
58,000 kids in KY. would be
stopped fom smoking over the next 5 years, between now and 2003, and we
would prevent 19,000 premature deaths in KY over the next 5 years. The
numbers are based on raising privces $1.10, and advertising and marketing
restrictions.
�Page 2 of 2
ARMS Email System
2.
The rate of teen smoking in KY.
We will try and get you tomorrow.
3. We can laud Senator Ford for his hard work on putting this legislation
together.
I have some rhetoric on this.
I'm at 65587.
�,ARMS Email System
RECORD TYPE: PRESIDENTIAL
Page 1 of 4
(NOTES MAIL)
CREATOR: Lowell A. Weiss ( CN=Lowell A. Weiss/OU=WHO/O=EOP [ WHO ] )
CREATION DATE/TIME: 8-APR-1998 17:07:31.00
SUBJECT:
5pm tobacco draft
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
TO: Thomas L. Freedman ( CN=Thomas L. Freedman/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
TO: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO]
READ: UNKNOWN
)
TO: Cathy R. Mays ( CN=Cathy R. Mays/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
TO: Cynthia A. Rice ( CN=Cynthia A. Rice/OU=OPD/O=EOP @ EOP [ OPD ] )
READ:UNKNOWN
,/
TEXT:
Draft 4/8/98 5pm
PRESIDENT WILLIAM J. CLINTON
REMARKS ON TOBACCO AT CARROLL COUNTY HIGH SCHOOL
CARROLLTON, KY
April 9, 1998
Acknowledgments: Sec. Glickman; Gov. Paul Patton; Sen. Ford [His work on
the tobacco bill that is now moving through the Senate has been
remarkable. He has fought day in and day out to make sure tobacco farmers
and their communities will not get hurt.
In the Senate, he has served
this great state longer than any other leader. And like your Cats, his
alma mater, he is leaving as number one.]
ItO,s great to be in Wildcat country.
I watched the Comeback Cats
beat the Utes while I was flying from Botswana to Senegal.
The Utes had
eliminated the Razorbacks, so I was pulling for the blue and white all the
way.
And itLl, s great to be in Panther country [Carroll County Highn, s
mascot].
Last time I was here was in 1992, when I was rolling through
these beautiful hills with Al Gore on our first bus tour.
You made me
feel right at home back then and you~,re doing just the same today.
IO,m also pleased to see how youO,ve recovered from the Flood of
0+97.
It was just over a year ago that the rains were pouring down and
Eagle Creek and the Kentucky River were spilling out allover this county
like NoahO,s flood.
But neighbors and friends reached out to help those
in need.
Old fashioned values pulled you through.
You made America very
proud.
The reason I came here to Carrollton today ·is to talk to you about
a subject that could not be more important to the future of all of you
students, to the future of this state, and to the future of this nation.
I came here to talk about the future of tobacco.
I know thereO,s been a'
lot of talk about what the tobacco legislation in Congress will involve
and where we are in the process. Today, in addition to listening to the
concerns of people in this community, I wanted to explain the process in
�ARMS Email System
detail to parents and children alike.
But before we go even one step
further I want to make two vital points very clear.
First, the tobacco legislation is alive and well.
It will be
easier to cut teen smoking if the tobacco companies work with us rather
than against us, but we are committed to doing what~",s right for
Americao,s children either way.
Second, the legislation we seek is not about politics, or money,
or seeking revenge against the tobacco industry. This legislation moving
forward in Congress will not put the tobacco companies out of business.
It will simply put them out of the business of selling cigarettes to
kids.
Personally, I do not believe itO,s wise for adults to smoke.
But
that is their own business.
Smoking by young people is a different matter
entirely -- and that is where we must draw the line.
Third, we will not abandon tobacco farmers.
They haveno,t done
anything wrong.
TheyD,ve been growing a legal crop.
It is not they who
have been marketing tobacco products to children. They:":, re good,
hard-working, tax-paying citizens -- most of them laboring from sun-up to
sun-down on small family farms.
We will stand with Kentuckyo,s
communities to pass legislation that makes sense for everyone.
If it
doesno,t protect farmers and their communities, I wono,t sign it.
Remember: we wouldno,t let this community down when the flood waters were
rising out of control.
The national government was here in Kentucky,
helping you clean up, working to make everyone whole. We will do it again
with this tobacco legislation.
Farmers didno,t create the problem of
youth smoking.
But I promise you this: if you work with us, farmers and
their communities will be included in the solution.
And now Io,d like to explain why I believe it is so important that
we work together to pass comprehensive tobacco legislation.
Just last
week, the Centers for Disease Control released a disturbing report.
It
found that more than 40% of teenagers now smoke or chew tobacco.
Mr.
Marcum [the principal] tells me itO,s probably even higher here.
Io,m not
here to scold those of you who do smoke.
But I will tell you this:
Io,m
not going to rest until we bring the number of teen smokers way down.
Today, 3,000 young people will start smoking. A thousand of them will
have their lives shortened as a result. We are simply wasting precious
lives.
ItO,s clear whato,s going on. One major factor is peer pressure.
Today, I challenge you students to help each other resist the pressure
to stand together and to take responsibility for your futures.
If you
look at the National Champion Wildcats, itO,s clear each one of those
players had a dream -- he wanted to win it all.
The Wildcats stood
together as a team.
They resisted outside pressures. And they recognized
that the body is as sacred a gift as the spirit and the mind.
You think
the National Champion Wildcats could run the court the way they do if they
smoked? Not a chance.
But whether you play basketball or not, the
message is the same: smoking robs dreams.
The other major factor in the rise of teen smoking is the lure of
sophisticated, multi-million-dollar marketing campaigns.
Now, the law
says that tobacco companies cano,t advertise tobacco products on
television or radio, but you cano,t escape the ads anywhere else -- in
magazines, sports centers, billboards. Toy race cars are still emblazoned
with tobacco brand names, even through we know adults dono,t buy many toy
race cars.
Page 2 of 4
�ARMS Email System.
Page 3 of 4
In the early 1990s, Joe Camel alone had an advertising budget of
$75 million. And thato,s a pretty good investment from the tobacco
companieso, point of view.
How many of you have younger brothers and
sisters? Well, if national statistics hold true, I bet more of them can
recognize Joe Camel than Mickey Mouse.
I believe weO,ve all got a remarkable opportunity to close the
books on 30 years of calculated marketing to kids.
And that is why I am
working with Sen. Ford and his Senate colleagues to pass a bill that will
make reducing youth smoking everyoneO,s bottom line.
Last week, in an historic and resounding 19-to-1 vote, a key
Senate committee gave its stamp of approval to comprehensive legislation
sponsored by Sen. John McCain, a Republican, and Sen. Fritz Hollings, a
Democrat, that would cut youth smoking by half over the next decade here
in Kentucky and allover the country. And thanks in great measure to Sen.
FordO,s leadership, the bill will not let tobacco farmers down.
Last September, when I reviewed the settlement agreement reached
by the Attorneys General, I was very disappointed to see that there was no
mention of farmers and what might happen to them if the settlement became
law..
So when I laid out my five principles of what absoiutely had to be
in any comprehensive tobacco legislation, I said we had to protect farmers
and their communities.
Io,m happy to say that the farmer provision Sen.
Ford has proposed meets this commitment.
The bill he helped prepare recogn
izes that tobacco has a very high return per acre and, therefore, you
canCi,t just tell tobacco farmers to go and plant soybeans on their land.
It recognizes that you canO,t uproot tobacco without uprooting the family
farm.
This morning, I met a woman named Mattie Mack.
She~,s 61 years old
and has raised 38 foster children while growing tobacco -- not one of whom
smokes. We canO,t abandon her or the children she has raised. We must
reduce youth smoking, but weO,re not going to do it by devastating our f
arming communities.
We still have work to do on the legislation in the Senate. Above
all, we need to put in place tough penalties that will ensure that the
tobacco industry has a clear financial interest in stopping youth
smoking.
But Sen. McCain and his committee have helped move this nation
in the right direction.
Unfortunately, it appears that some tobacco industry executives
are trying to block the way.
Yesterday, tobacco industry executives gave
speeches to protest the legislation moving through Congress. This was no
surprise.
ItO,s in their interest to object to the bill now to prevent it
from getting even tougher.
But I believe this is not the time to issue threats. This is the
time for the industry ·to put the past behind them and help all of us,
including thousands of family farmers, plan for the future.
Most
important, this is the time to stop children from picking up a habit that
kills.
If we move forward with the legislation in the Senate, in Kentucky
alone it will stop nearly 60,000 kids from starting to use tobacco over
the next five years, and save almost 20,000 lives. We simply cannot
afford to let this opportunity go up in smoke.
This is a remarkable time to be alive. This is a golden moment to
be a student in Kentucky. WeO,ve opened the door to college for every
student in this auditorium, thanks to new grants and HOPE Scholarships
that your guidance counselors can help you learn all about.
The chemical
and steel industries are booming here in Carroll County; theyO,re
�ARMS Email System
Page 4 of 4
practically guaranteeing jobs to students here who are getting involved in
your remarkable work-study program and gaining essential math, science,
and technical skills.
This is also a golden
best economy in a generation. The
years in a row, for the first time
lowest welfare rolls in 27 years.
before.
moment for our country.
We have the
crime rate has been falling for five
in a quarter century. We have the
More families own homes than ever
But this is not a time to sit back and relax. As you know all too
well, you donO,t wait until the flood rains are pouring down before you
fix the roof.
In other words, we canO,t wait for another generation of
children to get sick before we get serious about bringing the rate of
youth smoking down. But let me be clear: the way to fix our roof is not
by making a hole in our neighborO,s. We will fix the problem of youth
smoking without making life tougher than it already is for our
hard-working family farmers.
If we work together, we will solve this
problem together.
Thank you and God bless you.
# # #
�· .ARMS Email System
RECORD TYPE: PRESIDENTIAL
Page 1 of 5
(NOTES MAIL)
CREATOR: Bruce N. Reed ( CN=Bruce N. Reed/OU=OPD/O=EOP [ OPD 1 )
CREATION DATE/TIME: 8-APR-1998 17:33:19.00
SUBJECT:
Re: 5pm tobacco draft
TO: Elena Kagan
READ: UNKNOWN
CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD 1 )
TO: Lowell A. Weiss ( CN=Lowell A. Weiss/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TEXT:
Good job moving up the comments on today.
I think the first point needs
to be more resolute: Let me be clear -- I am going to do everything in my
power to put politics aside and pass comprehensive tobacco legislation
this year. There is powerful bipartisan momentum to get this done, and we
will not let anything stand in the way of doing right by America's
children (or America's tobacco farmers) ...
I'll send you more later.
Thanks.
Laura Emmett
04/08/98 05:21':31 PM
Record Type:
Record
TO:
Bruce N. Reed/OPD/EOP
cc:
Subject:
5pm tobacco draft
FYI---------------------- Forwarded by Laura Emmett/WHO/EOP on 04/08/98 05:21
PM ---------------------------
Lowell A. Weiss
04/08/98 05:07:22 PM
Record
Record Type:
To:
See the distribution list at the bottom of this message
cc:
Subject:
5pm tobacco draft
Draft 4/8/98 5pm
PRESIDENT WILLIAM J. CLINTON
REMARKS ON TOBACCO AT CARROLL COUNTY HIGH SCHOOL
CARROLLTON, KY
April 9, 1998
Acknowledgments: Sec. Glickman; Gov. Paul Patton; Sen. Ford [His work on
�.ARMS Email System
Page 2 of 5
the tobacco bill that is now moving through the Senate has been
remarkable.
He has fought day in and day out to make sure tobacco farmers
and their communities will not get hurt.
In the Senate, he has served
this great state longer than any other leader. And like your Cats, his
alma mater, he is leaving as number one.]
ItU,s great to be in Wildcat country.
I watched the Comeback Cats
beat the Utes while I was flying from Botswana to Senegal. The Utes had
eliminated the Razorbacks, so I was pulling for the blue and white all the
way.
And itO,s great to be in Panther country [Carroll County HighO,s
mascot].
Last time I was here was in 1992, when I was rolling through
these beautiful hills with Al Gore on our first bus tour.
You made me
feel right at home back then and youO,re doing just the same today.
IO,m also pleased to see how youO,ve recovered from the Flood of
0+97.
It was just over a year ago that the rains were pouring down and
Eagle Creek and the Kentucky River were spilling out allover this county
like NoaheJ,s flood.
But neighbors and friends reached out to help those
in need.
Old fashioned values pulled you through.
You made America very
proud.
The reason I came here to Carrollton today is to talk to you about
a subject that could not be more important to the future of all of you
students, to the future of this state, and to the future of this nation.
I came here to talk about the future of tobacco.
I know thereO,s been a
lot of talk about what the tobacco legislation in Congress will involve
and where we are in the process. Today, in addition to listening to the
concerns of people in this community, I wanted to explain the process in
detail to parents and children alike.
But before we go even one step
further I want to make two vital points very clear.
First, the tobacco legislation is alive and well.
It will be
easier to cut teen smoking if the tobacco companies work with us rather
than against us, but we are committed to doing whatO,s right for
AmericaO,s children either way.
Sec~nd, the legislation we seek is not about politics, or money,
or seeking revenge against the tobacco industry.
This legislation moving
forward in Congress will not put the tobacco companies out of business.
It will simply put them out of the business of selling cigarettes to
kids.
Personally, I do not believe itO,s wise for adults to smoke.
But
that is their own business.
Smoking by young people is a different matter
entirely -- and that is where we must draw the line.
Third, we will not abandon tobacco farmers.
They havenO,t done
anything wrong. Theyu,ve been growing a legal crop.
It is not they who
have been marketing tobacco products to children. TheyD,re good,
hard-working, tax-paying citizens -- most of them laboring from sun-up to
sun-down on small family farms.
We will stand with KentuckyD,s
communities to pass legislation that makes sense for everyone.
If it
doesnO,t protect farmers and their communities, I wonD,t sign it.
Remember: we wouldnO;t let this community down when the flood waters were
rising out of control. The national government was here in Kentucky,
helping you clean up, working to make everyone whole. We will do it again
with this tobacco legislation.
Farmers didnD,t create the problem of
youth smoking.
But I promise you this: if you work with us, farmers and
their communities will be included in the solution.
�,ARMS Email System
Page 3 of 5
And now IO,d like to explain why I believe it is so important that
we work together to pass comprehensive tobacco legislation. Just last
week, the Centers for Disease Control released a disturbing report.
It
found that more than 40% of teenagers now smoke or chew tobacco.
Mr.
Marcum [the principal) tells me itO,s probably even higher here.
IO,m not
here to scold those of you who do smoke.
But I will tell you this:
Io,m
not going to rest until we bring the number of teen smokers way down.
Today, 3,000 young people will start smoking. A thousand of them will
have their lives shortened as a result.
We are simply wasting precious
lives.
ItO,s clear whato,s going on.
One major factor is peer pressure.
Today, I challenge you students to help each other resist the pressure
to stand together and to take responsibility for your futures.
If you
look at the National Champion Wildcats, itO,s clear each one of those
players had a dream -- he wanted to win it all.
The Wildcats stood
together as a team.
They resisted outside pressures. And they recognized
that the body is as sacred a gift as the spirit and the mind.
You think
the National Champion Wildcats could run the court the way they do if they
smoked? Not a chance.
But whether you play basketball or not, the
message is the same: smoking robs dreams.
The other major factor in the rise of teen smoking is the lure of
sophisticated, multi-million-dollar marketing campaigns.
Now, the law
says that tobacco companies cano,t advertise tobacco products on
television or radio, but you canO,t escape the ads anywhere else -- in
magazines, sports centers, billboards.
Toy race cars are still emblazoned
with tobacco brand names, even through we know adults donO,t buy many toy
race cars.
In the early 1990s, Joe Camel alone had an advertising budget of
$75 million. And thato,s a pretty good investment from the tobacco
companiesO, point of view.
How many of you have younger brothers and
sisters? Well, if national statistics hold true, I bet more of them can
recognize Joe Camel than Mickey Mouse.
I believe weo,ve all got a remarkable opportunity to close the
books on 30 years of calculated marketing to kids. And that is why I am
working with Sen. Ford and his Senate colleagues to pass a bill that will
make reducing youth smoking everyoneO,s bottom line.
Last week, in an historic and resounding 19-to-1 vote, a key
Senate committee gave its stamp of approval to comprehensive legislation
sponsored by Sen. John McCain, a Republican, and Sen. Fritz Hollings, a
Democrat, that would cut youth smoking by half over the next decade here
in Kentucky and allover the country. And thanks in great measure to Sen.
FordO,s leadership, the bill will not let tobacco farmers down.
Last September, when I reviewed the settlement ag.reement reached
by the Attorneys General, I was very disappointed to see that there was no
mention of farmers and what might happen to them if the settlement became
law.
So when I laid out my five principles of what absolutely had to be
in any comprehensive tobacco legislation, I said we had to protect farmers
and their communities.
IO,m happy to say that the farmer provision Sen.
Ford has proposed meets this commitment. The bill he helped prepare recogn
izes that tobacco has a very high return per acre and, therefore, you
canO,t just tell tobacco farmers to go and plant soybeans on their land.
It recognizes that you canO,t uproot tobacco without uprooting the family
farm.
This morning, I met a woman named Mattie Mack.
SheD,s 61 years old
and has raised 38 foster children while growing tobacco -- not one of whom
�,ARMS Email System
Page 4 of 5
smokes. We canO,t abandon her or the children she has raised. We must
reduce youth smoking, but weO,re not going to do it by devastating our f
arming communities.
We still have work to do on the legislation in the Senate.
Above
all, we need to put in place tough penalties that will ensure that the
tobacco industry has a clear financial interest in stopping youth
smoking.
But Sen. McCain and his committee have helped move this nation
in the right direction. Unfortunately, it appears that some tobacco industry executives
are trying to block the way.
Yesterday, tobacco industry executives gave
speeches to protest the legislation moving through Congress.
This was no
surprise.
ItO,s in their interest to object to the bill now to prevent it
from getting even tougher.
But I believe this is not the time to issue threats.
This is the
time for the industry to put the past behind them and help all of us,
including thousands of family farmers, plan for the future.
Most
important, this is the time to stop children from picking up a habit that
kills.
If we move forward with the legislation in the Senate, in Kentucky
alone it will stop nearly 60,000 kids from starting to use tobacco over
the next five years, and save almost 20,000 lives. We simply cannot
afford to let this opportunity go up in smoke.
This is a remarkable time to be alive.
This is a golden moment to
be a student in Kentucky.
WeO,ve opened the door to college for every
student in this auditorium, thanks to new grants and HOPE Scholarships
that your guidance counselors can help you learn all about.
The chemical
and steel industries are booming here in Carroll County; theyO,re
practically guaranteeing jobs to students here who are getting involved in
your remarkable work-study program and gaining essential math, science,
and technical skills.
This is also a golden
best economy in a generation.
The
years in a row, for the first time
lowest welfare rolls in 27 years.
before.
moment for our country.
We have the
crime rate has been falling for five
in a quarter century.
We have the
More families own homes than ever
But this is not a time to sit back and relax. As you know all too
well, you donn,t wait until the flood rains are pouring down before you
fix the roof.
In other words, we canO,t wait for another generation of
children to get sick before we get serious about bringing the rate of
youth,smoking down.
But let me be clear: the way to fix our roof is not
by making a hole in our neighborO,s.
We will fix the problem of youth
smoking without making life tougher than it already is for our
hard-working family farmers.
If we work together, we will solve this
problem together.
Thank you and God bless you.
# # #
Message Sent
To: _________________________________________________________________
Cynthia A. Rice/OPD/EOP
Thomas L. Freedman/OPD/EOP
�· .ARMS Email System
Cathy R. Mays/OPD/EOP
Elena Kagan/OPD/EOP
Laura Emmett/WHO/EOP
Page 5 of 5
�ARMS Email System
RECORD TYPE: PRESIDENTIAL
Page 1 of 1
(NOTES MAIL)
CREATOR: Jon P. Jennings ( CN=Jon P. Jennings/OU=WHO/O=EOP [ WHO 1 )
CREATION DATE/TIME: 8-APR-1998 17:51:06.00
SUBJECT:
Info on Tobacco
TO: Elena Kagan
READ: UNKNOWN
CN=E1ena Kagan/OU=OPD/O=EOP @ EOP [ OPD 1 )
CC: Thurgood Marshall Jr ( CN=Thurgood Marshall Jr/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TEXT:
Thurgood suggested I forward you the following.
I received it in my
request for hot issues for the President's trip to Kentucky.
Smoking Debate:
perhaps the biggest current issue for Kentuckians is the
struggle between tobacco interests and anti-smoking advocates.
Progress on
a national tobacco settlement has been closely followed in the media, with
a lot of attention going to the predicament of tobacco farmers and
tobacco-dependent communities. Tobacco is Kentucky's biggest cash crop by
far.
In addition, tobacco manufactures have traditionally provided some of
the state's highest wages, 65% higher than the average for all Kentucky
manufacturing industries. Obviously, a trend toward reduced smoking could
have a major impact on economic conditions, especially in rural areas of
the state. There is no agreement on the best course, even among farmers
themselves. Some growers want an up-front buyout so they can leave the
tobacco business altogether. Others want to keep the tobacco price support
program, maintaining an option to be bought out later.
Kentucky Senator
Wendell Ford and Representative Scotty Baesler, both Democrats, have
proposed bills to help Kentucky farmers and to provide assistance to
tobacco communities.
�,ARMS Email System
RECORD TYPE: PRESIDENTIAL
Page 1 of 1
(NOTES MAIL)
CREATOR: Thomas L. Freedman ( CN=Thomas L. Freedman/OU=OPD/O=EOP [ OPD ] )
CREATION DATE/TIME: 8-APR-1998 17:57:04.00
SUBJECT:
Draft Q/A for POTUS
TO: Bruce N. Reed ( CN=Bruce N. Reed/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
TO: Cynthia A. Rice ( CN=Cynthia A. Rice/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
CC: Mary L. Smith ( CN=Mary L. Smith/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
CC: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO]
READ: UNKNOWN
)
TEXT:
In case you want to include a Q and A for the President we took the
internal press q and a, and tinkered with it. We put a very draft RJR Q
& A at the top, and we should should have something for him to say when he
is coming and going and they shout at him.==================== ATTACHMENT
ATT CREATION TIME/DATE:
0 00:00:00.00
1 ======
TEXT:
Unable to convert ARMS_EXT: [ATTACH.D4]MAIL465817790.026 to ASCII,
The following is a HEX DUMP:
FF57504319060000010A020100000002050000005E5B000000020000A667B459B35B5CED3DBOFO
632545B1116AAC29863E4714FD7349FBFF94E8D3A515F6E9F20405338E589841DC702F2D71B4A8
�Automated Records Management System
Hex-Dump Conversion
(4/8 DRAFf)
TOBACCO QUESTIONS AND ANSWERS FOR THE PRESIDENT'S
KENTUCKY TRIP OF APRIL 9, 1998
Q:
How does R.J. Reynolds' announcement that it is pulling out of the settlement affect
the chance of getting comprehensive legislation passed this year?
A:
I would have liked R.J. Reynolds to continue to negotiate with us over the legislation
currently be drafted in Congress. I don't know whether their announcement
means that they are going to go back to their old ways of marketing to children. I
think that we must all work together to get legislation passed this year. However, I
will continue my efforts of working with Congress to make sure that this legislation
gets passed this year. Their announcement will not stop my efforts, and I fully
believe that we will see comprehensive bipartisan legislation this year.
Q:
What is your position on protecting tobacco farmers and their communities as part
of comprehensive tobacco legislation?
A:
Tobacco farmers and their communities were not considered as part of the
settlement agreement reached by the Attorneys' General. In my statement last
September, I said that protecting farmers and their communities was one of the key
five principles that must be included in any comprehensive tobacco legislation that I
would be willing to sign. I believe that the legislation authored by Senator Ford
(D-KY) as part ofthe McCain bill, a $2.1 billion a year package that continues a
government production control system, meets the goal of protecting farmers and
their communities.
Q:
Aren't the goals of reducing youth smoking and protecting tobacco farmers
contradictory?
A:
No. I don't want the tobacco companies to go out of business, only out of the business
of selling to children. The tobacco farmers have played by the rules, and should be
protected in any legislation that passes. I believe that we can reduce youth smoking and
protect rural communities if we all work together to urge Congress to pass bipartisan
comprehensive tobacco legislation this year.
Q:
Senator Lugar recently suggested in an op-ed that the tobacco program should be
A:
I believe that any legislation has to be evaluated in terms of how well it meets the the five
principles I laid out last September --including reducing youth smoking and protecting
farmers and their communities. Advocates of a free market for tobacco growers will
phased out.
�need to demonstrate that it is consistent with these principles. Many health groups have
argued that simply ending the tobacco program may actually increase the amount of
tobacco that is grown, decrease the cost of tobacco, and provide a windfall for cigarette
companies. In addition, representatives offamily farms have suggested that ending the
tobacco program would have extremely negative economic effects on them and their
communities. I traveled to Kentucky, in part, to discuss the various legislative options
with those directly effected by tobacco legislation and hear their opinions first-hand
BACKGROUND QUESTIONS RE: TOBACCO FARMERS
Q:
How does the tobacco program work?
A:
Since the 1930s, in order to grow tobacco, a farmer must have a quota. The quota
allows the farmer to grow a certain amount of tobacco for that year. Thus, the
amount of tobacco grown in .the United States is controlled by law. In addition, the
price of tobacco is set statutorily. If a private company chooses not to purchase
tobacco at or above the statutory minimum price, the regional cooperative of
tobacco farmers will purchase the tobacco and store it, putting the tobacco back on
the market when the price is more favorable.
Q:
A:
What are the provisions for farmers are included in the McCain legislation?
Senators Ford, Frist, and Hollings, the three members of the Senate Commerce
Committee from tobacco-growing states, joined together to include a broad farmer
provision in the McCain tobacco legislation. While maintaining a production control
system for all tobacco farmers, the measure sets up somewhat different systems for burley
and flue-cured tobacco. For burley tobacco (grown mostly in Kentucky), the package
includes an optional buy-out for quota holders at $8 per pound, and retains the quota
system for those who do not take the buyout, but provides payments to both remaining
quota holders, lessees, and tenants to the extent that base quota declines. For flue-cured
tobacco, the plan pr~vides for a mandatory buyout of existing quota holders, and replaces
the quota system with a permit system that gives the new permits at no cost to active
producers, regardless of whether they previously owned a quota. This transferring of
quotas from inactive quota holders to actual producers is intended to make it possible for
active farmers to sell tobacco without incurring the cost of buying or renting quota.
The provision authored by Senator Ford and included in McCain's legislation also
provides approximately $500 million for assistance to tobacco-producing communities.
The package costs $2.1 billion per year for the first ten years and $500 million for years
11-25 for a total of $28.5 billion. For the most part, tobacco farm leaders have been
pleased with the proposal included in the McCain legislation.
�Q:
How important is tobacco to Kentucky producers and the overall economy?
A:
Including sales from fire-cured and dark air-cured tobacco, Kentucky tobacco producers
received over $800 million from the 1997 crop. Tobacco sales represent over 40
percent of crop sales receipts and over 20 percent of all agricultural sales in Kentucky.
In 1997, over 600 million pounds of burley tobacco was produced in the United States -70 percent in Kentucky.
Q:
Which farmers will be affected by the legislation?
A:
The tobacco settlement will have a wide-reaching impact on all segments ofthe tobacco
industry, but a disproportionate effect on small and minority tobacco quota owners and
producers. Of the 338,000 individual quotas, about 66 percent are considered small
farm operations. Five percent of all quotas are owned by minorities, the majority of
which are small producers.
Q:
Why is tobacco so important to small farmers?
A:
Tobacco is a high value crop that generates gross receipts of $4,000 to $5,000 per acre.
Profits from 1 acre of tobacco are equivalent to between 15 and 20 acres of com or
soybeans. On small farms in Kentucky, with an average of 22 acres of harvested
cropland in 1992, tobacco is vital to the economic survival offarmers. (source: 1992 Ag
Census)
Q:
How much tobacco is grown in the United States?
A:
In 1997, tobacco production totaled 1.7 billion pounds with a value of over $3 billion, the
highest production and crop receipts since 1992. Sales of tobacco products reached a
record $50 billion in 1997.
GENERAL BACKGROUND ON TOBACCO LEGISLATION
Q:
Has you endorsed the McCain bill?
A:
I believe that this bill represents a dramatic step forward. It would raise the price
of cigarettes, give the FDA full authority to regulate tobacco products, ban
advertising aimed at children, and protect tobacco farmers.
But I also said we still have work to do on this legislation. Above all, we need to put
in place tough penalties that will cost the tobacco industry if it continues to sell
cigarettes to young people. We're not trying to put the tobacco companies out of
business; we want to put them out of the business of selling cigarettes to kids. This
week's progress in the Senate shows we have real momentum in both parties to do
�just that.
Q:
You've said we need stronger penalties on companies that continue to sell to our
children. What do you mean by that?
A:
The McCain bill's penalty provisions are deficient for two reasons. First, the bill
has a cap of $3.5 billion per year on industry-wide penalties, no matter how much
the industry misses youth targets by. Second, the McCain bill contains no penalties
on individual companies for failing to meet youth smoking targets. Reducing youth
smoking is our bottom line, and we must make it each and every company's bottom
line.
Q:
Does you have concerns about provisions of the McCain bill besides the penalties?
A:
I have serious concerns about this bill's provision which would allow individual
States to "opt out" of the national smoke-free environment policy. This provision
creates a patchwork system in which states could decide to adopt weaker laws or
decide against taking any action at all, leaving people with little or no protection
from the hazards of environmental tobacco smoke. In addition, there is no need to
exempt the tobacco industry from antitrust rules in order to reduce youth smoking.
I strongly oppose any exemptions that would allow price fixing agreements. Third,
I believe it is critical that tobacco legislation fund efforts to promote public health
and assist children.
Q:
What do you want the tobacco funds to be spent on?
A:
I strongly believe that tobacco revenues should go toward protecting public health
and assisting children. My Fiscal Year 1999 budget provides for funds for
anti-smoking programs that will help us meet the goals of reducing youth smoking
rates and for a dramatic expansion of health-related research to help us cure
smoking-related disease. Finally, in recognition of the states' role in bringing suit
against tobacco companies, my budget provides for a substantial amount of money
to revert to the states. Some of this money can be used for any purpose. Other
funds must be used on state-administered programs to assist children (specifically,
for child care, Medicaid child outreach, and class size reduction).
Q:
What is your view of the liability protections for the tobacco industry contained in
Senator McCain's legislation?
A:
As we have said on many occasions, I would prefer comprehensive tobacco
legislation without liability limits, but in the context of legislation that meets all of
my principles and dramatically reduces youth smoking, reasonable limits on
liability will not be a dealbreaker. Right now, I'm going to focus on the aspects of
the McCain legislation that I think fall short of what the I have demanded:
particularly, on the penalties in the bill to reduce youth smoking. Until we get
�those right, we won't address liability protections.
Q:
The tobacco industry has said that it will not agree to national tobacco legislation
that increases the price of a pack of cigarettes by $1.10 over five years, as proposed
by your budget and the McCain bill. Does that doom your proposal?
A:
No. We have always expected the tobacco companies to fight hard for their
economic interests, but needless to say we will not always agree, nor we think will
the US Congress. This price increase called for in my Fiscal Year 1999 budget is
necessary to meet my youth smoking targets, and I will continue to demand it.
What the companies do is up to them, but we will not back off such necessary
measures to reduce youth smoking.
Q:
What are the five principles that you have said tobacco legislation must meet?
A:
I have said that I will only support tobacco legislation that:
Raises the price of cigarettes by up to $1.10 a pack over 5 years and $1.50 a
pack over the next ten years, and imposes tough penalties on companies that
continue to sell to kids;
Affirms the FDA's full authority to regulate tobacco products;
Gets companies out of the business of marketing and selling tobacco to
minors;
Promotes public health research and public health goals; and
Protects our tobacco farmers and their communities.
Q:
How does the McCain bill compare to the Attorneys General proposed settlement
and the President's proposal?
A:
See chart below.
Comparison of Tobacco Proposals
April 7, 1998
Attorneys
General
McCain
President
Substantial Price Increase
No
Yes
Yes
Strong Industry and
Company Penalties
No
No
Yes
Full FDA Authority
No
Yes
Yes
�.
Strong Advertising and
Access Provisions
Yes
Yes
Yes
Protections of Tobacco
Farmers
No
Yes
Yes
Comprehensive Plan to Use
Tobacco Revenue to Protect
Public Health and Assist
Children
Yes
No*
Yes
Strong Environmental
Tobacco Smoke Provision
Yes
No
Yes·
Yes
Yes
Only if bill meets
President's public
health principles.
Yes
No
Only if bill meets
President's public
health principles.
Yes
No
Only if bill meets
President's public
health principles.
Liability Protections for
Industry:
1. Liability Cap
2. Bar on Class Actions
3. Bar on Punitive
Damages
*
Does not attempt to address most spending issues.
Q:
Is teen smoking going up or down?
A:
On April 2, the Centers for Disease Control in Atlanta released a new study ("Tobacco
Use Among High School Students --United States, 1997") which found that cigarette
smoking rates among high school students rose by nearly a third between 1991 and 1997,
from 27.5 percent to 36.4 percent, with the sharpest increase among African American
students. Cigarette smoking was highest among white students (40 percent), rising by
28 percent from 1991 (31 percent). While the level of cigarette smoking among
African-American students was lower than for white students, the rate increased by 80
percent between 1991 and 1997 (from 12.6 percent to 22.7 percent). Overall, the study
found that nearly half of male students and more than a third of female students used
cigarettes, cigars, or smokeless tobacco during the previous month. This 1997 data was
derived from a survey of over 16,000 students in grades 9-12.
�~6,RMS
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RECORD TYPE: PRESIDENTIAL
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CREATOR: Cathy R. Mays ( CN=Cathy R. Mays/OU=OPD/O=EOP [ OPD 1 )
CREATION DATE/TIME: 8-APR-1998 18:14:25.00
SUBJECT:
Weekly Health Care Strategy Meeting
TO: Michael Waldman ( CN=Michael Waldman/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Donald H. Gips ( CN=Donald H. Gips/O=OVP @ OVP [ UNKNOWN 1 )
READ:UNKNOWN
TO: Maria Echaveste ( CN=Maria Echaveste/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Joshua Gotbaum ( CN=Joshua Gotbaum/OU=OMB/O=EOP @ EOP [ OMB 1 )
READ: UNKNOWN
TO: Jennifer L. Klein ( CN=Jennifer L. Klein/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Gene B. Sperling ( CN=Gene B. Sperling/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Karen E. Skelton ( CN=Karen E. Skelton/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ:UNKNOWN
TO: Barbara D. Woolley ( CN=Barbara D. Woolley/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Emily Bromberg ( CN=Emily Bromberg/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Christopher C. Jennings ( CN=Christopher C. Jennings/OU=OPD/O=EOP @ EOP [ OPD 1
READ: UNKNOWN
TO: Rahm I. Emanuel ( CN=Rahm I. Emanuel/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
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READ: UNKNOWN
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READ: UNKNOWN
CC: Toby Donenfeld ( CN=Toby Donenfeld/O=OvP @ OVP [ UNKNOWN 1 )
READ: UNKNOWN
CC: Miriam H. Vogel ( CN=Miriam H. Vogel/OU=WHO/O=EOP @ EOP [ WHO
READ: UNKNOWN
1)
CC: Michelle Crisci ( CN=Michelle Crisci/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
CC: Donna L. Geisbert ( CN=Donna L. Geisbert/OU=OPD/O=EOP @ EOP [ OPD 1 )
�ARMS Email System
READ: UNKNOWN
CC: Satish Narayanan ( CN=Satish Narayanan/O=OVP @ OVP [ UNKNOWN 1 )
READ: UNKNOWN
CC: Angelique Pirozzi ( CN=Angelique pirozzi/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
CC: Laura Emmett (- CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
CC: Suzanne Dale ( CN=Suzanne Dale/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
CC: Peter A. Weissman ( CN=Peter A. Weissman/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TEXT:
We will be having our weekly Health Care Strategy Meeting tomorrow,
Thursday, April 9, at 4:00 p.m. in Bruce Reed's office.
Page 2 of 2
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RECORD TYPE: PRESIDENTIAL
(NOTES MAIL)
CREATOR: Jason S. Goldberg ( CN=Jason S. Goldberg/OU=WHO/O=EOP [ WHO 1 )
CREATION DATE/TIME: 8-APR-1998 18:40:34.00
SUBJECT:
FOLLOW-UP: Small Tobacco Mtg. Thursday
TO: Demond T. Martin ( CN=Demond T. Martin/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Carole A. Parmelee ( CN=Carole A. Parmelee/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Janet L. Graves ( CN=Janet L. Graves/OU=OMB/O=EOP @ EOP [ OMB 1 )
READ: UNKNOWN
TO: Melissa M. Murray ( CN=Melissa M. Murray/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ:UNKNOWN
TO: Eleanor S. Parker ( CN=Eleanor S. Parker/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Dawn L. Smalls ( CN=Dawn L. Smalls/OU=WHO/O=EOP @ EOP [ WHO ]
READ: UNKNOWN
)
TO: Jessica L. Gibson ( CN=Jessica L. Gibson/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Michelle Crisci ( CN=Michelle Crisci/Ou=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Scott R. Hynes
READ: UNKNOWN
( CN=Scott R. Hynes/O=OVP @ OVP [ UNKNOWN 1 )
TO: Cathy R. Mays ( CN=Cathy R. Mays/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
Records Management ( Records Management @ EOP [ UNKNOWN 1 )
READ:UNKNOWN
TEXT:
At 6:00
p.m. in Erskine's office.
Only the small group that met today.
Jason
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CREATOR: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP [ WHO 1 )
CREATION DATE/TIME: 8-APR-1998 18:45:14.00
SUBJECT:
TO: ELENA (Pager) #KAGAN ( ELENA (Pager) #KAGAN [ UNKNOWN 1 )
READ: UNKNOWN
TEXT:
Press Office wants AT LEAST the one-pager ASAP
-Laura
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(NOTES MAIL)
CREATOR: Kay Casstevens ( CN=Kay Casstevens/O=OVP [ UNKNOWN 1 )
CREATION DATE/TIME: 8-APR-1998 18:48:41.00
SUBJECT:
pre-brief for VP/Kennedy-Conrad meeting
TO: Lawrence J. Stein ( CN=Lawrence J. Stein/OU=WHO/O=EOP [ WHO 1 )
READ: UNKNOWN
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP [ OPD 1 )
READ:UNKNOWN
TO: Bruce N. Reed ( CN=Bruce N. Reed/OU=OPD/O=EOP [ OPD 1 )
READ: UNKNOWN
CC: Anthony R. Bernal ( CN=Anthony R. Bernal/OU=WHO/O=EOP [ WHO 1 )
READ:UNKNOWN
CC: Toby Donenfeld ( CN=Toby Donenfeld/O=Ovp [ UNKNOWN 1 )
READ: UNKNOWN
Kay Casstevens ( CN=Kay Casstevens/O=OVP [ UNKNOWN 1 )
READ: UNKNOWN
TEXT:
At Sen. Kennedy's request, the Vice President will be meeting with
Senators Kennedy and Conrad on this Friday, April 10 at 4:45 pm, on the
tobacco legislation. Can you all attend a pre-brief with the VP at 4:30?
please let me know.
thanks, Kay
�.
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CREATOR: Cecilia E. Rouse ( CN=Cecilia E. Rouse/OU=OPD/O=EOP [ OPD ] )
CREATION DATE/TIME: 8-APR-1998 19:23:02.00
SUBJECT:
Agenda for Deputies meeting
TO: Shannon Mason ( CN=Shannon Mason/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
TO: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO ] )
READ: UNKNOWN
TO: Thomas A. Kalil ( CN=Thomas A. Kalil/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
TO: Sally Katzen ( CN=Sally Katzen/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
TEXT:
Attached is the agenda for tomorrow's deputies meeting. You'll notice
that the document has two "agendas." The first is to be sent to
participants.
The second is for Sally and Elena.
-- Ceci and Julie==================== ATTACHMENT
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Agenda for DPCINEC Meeting on H-IB Visas
April 9, 1998
The purpose of this meeting it to identify the key components oflegislative proposals and decide
our priorities.
I.
H-IB reforms
II.
Enhanced enforcement
III.
Application fee
IV.
Training
V.
Other concerns
VI.
Overall priorities
�Annotated Agenda for DPCINEC Meeting on H-IB Visas
April 9, 1998
The purpose of this meeting it to identify the key components of legislative proposals and decide
our priorities.
I.
H-IB reforms previously endorsed by the Administration
a.
"Recrui t and retain"
What, precisely, would we be requiring an employer to do?
b.
No lay-off provision
How do we respond to the argument from industry that hiring/firing is too
decentralized to allow for fair use of a no lay-off provision?
c.
Reduced maximum stay from six to three years
Given that we are proposing a temporary increase in the cap, do we want to
continue to advocate for limiting the maximum stay to three years?
d.
Other issues related to these reforms
(i)
Occupational classification
How would we recommend defining who is laid-off or who must be
recruited? Based on "occupation" or skill attainment?
(ii)
Job contractors
Do we want to include a provision that ensures that both end-employers
and contractors make the requisite attestations?
(iii)
Prevailing wage
Abraham uses the current definition of "wage" but allows employers to
use outdated wage data. Kennedy defines "wage" to include benefits and
other compensation, which Labor says they do not have reliable data on.
What do we recommend?
II.
Enhanced enforcement
The DOL has proposed that they be given greater authority to ensure that employers
comply with the standards of hiring H-1 B workers.
Which are the most important?
A.
Independent authority to investigate
B.
subpoena authority
C.
ability to conduct audits
D.
increase penalties (from $5000 to $10,000)
III.
Application fee
�•
Should there be an application fee? How much?
IV.
Training
a.
Regional skills alliances
b.
NSF's Advanced Technological Education program.
c.
Scholarships or Loans?
V.
Other concerns
a.
Concerns of the Academic community
Many in the academic community are concerned about the "recruit and retain" and
"no lay-off' provisions because of the temporary nature of many research grants.
b.
VI.
Increased enforcment authority by the Office of Special Counsel
OSC wants the legislation to provide for a cause of action to a U.S. worker who is
replaced by an H-lB worker OR who is denied employment in favor of an H-IB
worker.
Overall priorities
How do we rank reforms vs. training vs. enforcement?
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CREATOR: Mary L. Smith ( CN=Mary L. Smith/OU=OPD/O=EOP [ OPD ] )
CREATION DATE/TIME: 8-APR-1998 19:55:54.00
SUBJECT:
one-pager for Kentucky trip
TO: Cynthia A. Rice ( CN=Cynthia A. Rice/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
TO: Thomas L. Freedman ( CN=Thomas L. Freedman/OU=OPD/O=EOP @ EOP [ OPD ] )
READ:UNKNOWN
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
CC: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO]
READ: UNKNOWN
)
TEXT:
Here it is --with Elena's edits.==================== ATTACHMENT
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- •. l
THE PRESIDENT MEETS WITH KENTUCKY
TOBACCO FARMERS AND CALLS FOR PASSAGE
OF COMPREHENSIVE TOBACCO LEGISLATION
April 9, 1998
Today, the President traveled to Carrollton, Kentucky to meet with tobacco farmers and to
address students at Carroll County High School. The President's trip highlights his
commitment to reducing youth smoking and protecting farmers, which are key elements of
the bipartisan comprehensive tobacco legislation the President has called on Congress to
pass this year.
Roundtable with Tobacco Farmers and Members of the Farming Community
The President held a roundtable discussion in the Kentuckiana Tobacco Warehouse with
tobacco farmers and members ofthe community, including a student and tobacco
warehouse owner. The panel also included Rod Kuegel, the President of the Burley
Tobacco Growers Cooperative -- an organization that represents 150,000 tobacco farm
families in five states -- and Bill Sprague, the President of the Kentucky Farm Bureau -- the
largest farming organization in the state. This roundtable provided an opportunity for the
President to listen to the concerns of farmers and the community regarding comprehensive
tobacco legislation.
Addressing Students at Carroll County High School
The President also addressed approximately 2200 students and adults at the Carroll
County High School where he emphasized his commitment to reducing youth smoking.
The President was joined by Senator Ford, Governor Patton, and Agriculture Secretary
Glickman. The President noted that every day 3,000 children will become regular
smokers, and 1,000 will die prematurely as a result, and he urged Congress to pass his plan
for comprehensive tobacco legislation which will save one million lives over the next five
years.
President's Key Principles
On September 17th, President Clinton announced the five key principles that must be included in
any comprehensive tobacco legislation. They are:
I.
Tough penalties and price increases to reduce youth smoking. Price increases of up to
$1.50 if necessary over the next ten years.
2.
Full authority for the FDA to regulate tobacco products, including authority of the
manufacture, sale, and advertising of tobacco products.
3.
The tobacco industry must change the way it does business, including stopping
advertising to children.
4.
There needs to be progress towards other public health goals including cutting
second-hand smoke and increasing funding for health research and cessation programs.
�5.
There should be protection for tobacco farmers and their communities so they do not
suffer economically because of this legislation.
�'ARMS Email System
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(NOTES MAIL)
CREATOR: Mary L. Smith ( CN=Mary L. Smith/OU=OPD/O=EOP [ OPD ] )
CREATION DATE/TIME: 8-APR-1998 21:10:29.00
SUBJECT:
Q&A'S for press office and president
TO: Thomas L. Freedman ( CN=Thomas L. Freedman/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
CC: Laura Emmett ( CN=Laura Ernrnett/OU=WHO/O=EOP @ EOP [ WHO]
READ: UNKNOWN
)
TEXT:
Here are versions of Q&A for the press office and the President, with the
previously reviewed Q&A inserted re: the R.J. Reynold's announcement.
=============
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Hex-Dump COIlVeib,OII
(4/8 DRAFT)
TOBACCO QUESTIONS AND ANSWERS FOR THE PRESIDENT'S
KENTUCKY TRIP OF APRIL 9, 1998
Q:
What's your reaction to RJR Nabisco CEO Steven Goldstone's remarks
today at the National Press Club?
A:
It is no surprise that the tobacco industry would protest the legislation
moving through the Congress --it is in their interest to object to the bill now
to prevent it from getting even tougher. In the end, the companies will have
a strong incentive to participate, and we're convinced that they'll recognize
this.
So we don't think the companies will walk away --and we hope they do not
do so. We would prefer that the companies join, rather than fight, our
efforts to reduce smoking.
But make no mistake: I will continue to work to reduce youth smoking no
matter what the companies do. I have worked on this effort for two years;
members of Congress from both parties are now joining me; and we will get
strong legislation on youth smoking whether or not the companies join us.
Q:
Will this deal drive RJR and/or other tobacco companies into bankruptcy?
A:
No. We're not trying to put the tobacco companies out of business; we want
to put them out of the business of selling cigarettes to kids. We've done
some careful financial analysis of the McCain bill, and we do not believe that
it will drive companies into bankruptcy. There's just no reason to think
that this legislation would increase the companies' exposure to a financial
loss of the kind that would send them into bankruptcy. Stopping companies
from selling cigarettes to kids will not put them out of business.
Q:
But don't you need industry cooperation to enact tobacco legislation?
A:
We would like the tobacco industry to willingly join us in this effort to reduce
youth smoking. And we still believe that the tobacco industry will have
every incentive to agree to legislation in the end, so that they can end this
chapter in their history. But if they refuse to join us, we will still make
progress. We will continue our efforts to pass comprehensive legislation to
dramatically reduce youth smoking.
Q:
What is your position on protecting tobacco farmers and their communities
�as part of comprehensive tobacco legislation?
A:
Tobacco farmers and their communities were not considered as part of the
settlement agreement reached by the Attorneys' General. In my statement
last September, I said that protecting farmers and their communities was one
of the key five principles that must be included in any comprehensive tobacco
legislation that I would be willing to sign. I believe that the legislation
authored by Senator Ford (D-KY) as part of the McCain bill, a $2.1 billion
a year package that continues a government production control system,
meets the goal of protecting farmers and their communities.
Q:
Aren't the goals of reducing youth smoking and protecting tobacco farmers
contradictory?
A:
No. I don't want the tobacco companies to go out of business, only out of the
business of selling to children. The tobacco farmers have played by the rules, and
should be protected in any legislation that passes. I believe that we can reduce
youth smoking and protect rural communities if we all work together to urge
Congress to pass bipartisan comprehensive tobacco legislation this year.
Q:
Senator Lugar recently suggested in an op-ed that the tobacco program
should be
phased out. Do you agree?
A:
I believe that any legislation has to be evaluated in terms of how well it meets the
the five principles I laid out last September --including reducing youth smoking
and protecting farmers and their communities. Advocates of a free market for
tobacco growers will need to demonstrate that it is consistent with these
principles. Many health groups have argued that simply ending the tobacco
program may actually increase the amount of tobacco that is grown, decrease the
cost of tobacco, and provide a windfall for cigarette companies. In addition,
representatives of family farms have suggested that ending the tobacco program
would have extremely negative economic effects on them and their communities.
I traveled to Kentucky, in part, to discuss the various legislative options with those
directly effected by tobacco legislation and hear their opinions first-hand
BACKGROUND QUESTIONS RE: TOBACCO FARMERS
Q:
How does the tobacco program work?
A:
Since the 1930s, in order to grow tobacco, a farmer must have a quota. The
quota allows the farmer to grow a certain amount of tobacco for that year.
Thus, the amount of tobacco grown in the United States is controlled by law;
�In addition, the price of tobacco is set statutorily. If a private company
chooses not to purchase tobacco at or above the statutory minimum price, the
regional cooperative of tobacco farmers will purchase the tobacco and store
it, putting the tobacco back on the market when the price is more favorable.
Q:
A:
What are the provisions for farmers are induded in the McCain legislation?
Senators Ford, Frist, and Hollings, the three members of the Senate Commerce
Committee from tobacco-growing states, joined together to include a broad farmer
provision in the McCain tobacco legislation. While maintaining a production
control system for all tobacco farmers, the measure sets up somewhat different
systems for burley and flue-cured tobacco. For burley tobacco (grown mostly in
Kentucky), the package includes an optional buy-out for quota holders at $8 per
pound, and retains the quota system for those who do not take the buyout, but
provides payments to both remaining quota holders, lessees, and tenants to the
extent that base quota declines. For flue-cured tobacco, the plan provides for a
mandatory buyout of existing quota holders, and replaces the quota system with a
permit system that gives the new permits at no cost to active producers, regardless
of whether they previously owned a quota. This transferring of quotas from
inactive quota holders to actual producers is intended to make it possible for active
farmers to sell tobacco without incurring the cost of buying or renting quota.
The provision authored by Senator Ford and included in McCain's legislation also
provides approximately $500 million for assistance to tobacco-producing
commumtJes. The package costs $2.1 billion per year for the first ten years and
$500 million for years 11-25 for a total of $28.5 billion. For the most part,
tobacco farm leaders have been pleased with the proposal included in the McCain
legislation.
Q:
How important is tobacco to Kentucky producers and the overall economy?
A:
Including sales from fire-cured and dark air-cured tobacco, Kentucky tobacco
producers
received over $800 million from the 1997 crop. Tobacco sales
represent over 40 percent of crop sales receipts and over 20 percent of all
agricultural sales in Kentucky.
In 1997, over 600 million pounds of burley tobacco was produced in the United
.
States -- 70 percent in Kentucky.
Q:
Which farmers will be affected by the legislation?
A:
The tobacco settlement will have a wide-reaching impact on all segments of the
�tobacco
industry, but a disproportionate effect on small and minority tobacco
quota owners and
producers. Of the 338,000 individual quotas, about 66
percent are considered small farm operations. Five percent of all quotas are
owned by minorities, the majority of which are small producers.
Q:
Why is tobacco so important to small farmers?
A:
Tobacco is a high value crop that generates gross receipts of $4,000 to $5,000 per
acre. Profits from 1 acre of tobacco are equivalent to between 15 and 20 acres of
com or soybeans. On small farms in Kentucky, with an average of 22 acres of
harvested cropland in 1992, tobacco is vital to the economic survival of farmers.
(source: 1992 Ag Census)
Q:
How much tobacco is grown in the United States?
A:
In 1997, tobacco production totaled 1.7 billion pounds with a value of over $3
billion, the highest production and crop receipts since 1992. Sales of tobacco
products reached a record $50 billion in 1997.
GENERAL BACKGROUND ON TOBACCO LEGISLATION
Q:
Has you endorsed the McCain bill?
A:
I believe that this bill represents a dramatic step forward. It would raise the
price of cigarettes, give the FDA full authority to regulate tobacco products,
ban advertising aimed at children, and protect tobacco farmers.
But I also said we still have work to do on this legislation. Above all, we
need to put in place tough penalties that will cost the tobacco industry if it
continues to sell cigarettes to young people. We're not trying to put the
tobacco companies out of business; we want to put them out of the business
of selling cigarettes to kids. This week's progress in the Senate shows we
have real momentum in both parties to do just that.
Q:
You've said we need stronger penalties on companies that continue to sell to
our children. What do you mean by that?
A:
The McCain bill's penalty provisions are deficient for two reasons. First,
the bill has a cap of $3.5 billion per year on industry-wide penalties, no
matter how much the industry misses youth targets by. Second, the McCain
bill contains no penalties on individual companies for failing to meet youth
smoking targets. Reducing youth smoking is our bottom line, and we must
make it each and every company's bottom line.
Q:
Does you have concerns about provisions of the McCain biII besides the
�penalties?
A:
I have serious concerns about this bill's provIsion which would allow
individual States to "opt out" of the national smoke-free environment policy.
This provision creates a patchwork system in which states could decide to
adopt weaker laws or decide against taking any action at all, leaving people
with little or no protection from the hazards of environmental tobacco
smoke. In addition, there is no need to exempt the tobacco industry from
antitrust rules in order to reduce youth smoking. I strongly oppose any
exemptions that would allow price fixing agreements. Third, I believe it is
critical that tobacco legislation fund efforts to promote public health and
assist children.
Q:
What do you want the tobacco funds to be spent on?
A:
I strongly believe that tobacco revenues should go toward protecting public
health and assisting children. My Fiscal Year 1999 budget provides for
funds for anti-smoking programs that will help us meet the goals of reducing
youth smoking rates and for a dramatic expansion of health-related research
to help us cure smoking-related disease. Finally, in recognition of the states'
role in bringing suit against tobacco companies, my budget provides for a
substantial amount of money to revert to the states. Some of this money can
be used for any purpose. Other funds must be used on state-administered
programs to assist children (specifically, for child care, Medicaid child
outreach, and class size reduction).
Q:
What is your view of the liability protections for the tobacco industry
contained in Senator McCain's legislation?
A:
As we have said on many occasions, I would prefer comprehensive tobacco
legislation without liability limits, but in the context of legislation that meets
all of my principles and dramatically reduces youth smoking, reasonable
limits on liability will not be a dealbreaker. Right now, I'm going to focus
on the aspects of the McCain legislation that I think fall short of what the I
have demanded: particularly, on the penalties in the bill to reduce youth
smoking. Until we get those right, we won't address liability protections.
Q:
The tobacco industry has said that it will not agree to national tobacco
legislation that increases the price of a pack of cigarettes by $1.10 over five
years, as proposed by your budget and the McCain bill. Does that doom
your proposal?
A:
No. We have always expected the tobacco companies to fight hard for their
economic interests, but needless to say we will not always agree, nor we think
will the US Congress. This price increase called for in my Fiscal Year 1999
�budget is necessary to meet my youth smoking targets, and I will continue to
demand it. What the companies do is up to them, but we will not back off
such necessary measures to reduce youth smoking.
Q:
What are the five principles that you have said tobacco legislation must
meet?
A:
I have said that I will only support tobacco legislation that:
Raises the price of cigarettes by up to $1.10 a pack over 5 years and
$1.50 a pack over the next ten years, and imposes tough penalties on
companies that continue to sell to kids;
Affirms the FDA's full authority to regulate tobacco products;
Gets companies out of the business of marketing and selling tobacco
to minors;
Promotes public health research and public health goals; and
Protects our tobacco farmers and their communities.
Q:
How does the McCain bill compare to the Attorneys General proposed
settlement and the President's proposal?
A:
See chart below.
Comparison of Tobacco Proposals
April 7, 1998
Attorneys
General
McCain
President
Substantial Price Increase
No
Yes
Yes
Strong Industry and
Company Penalties
No
No
Yes
Full FDA Authority
No
Yes
Yes
Strong Advertising and
Access Provisions
Yes
Yes
Yes
Protections of Tobacco
Farmers
No
Yes
Yes
Comprehensive Plan to Use
Tobacco Revenue to Protect
Public Health and Assist
Yes
No*
Yes
�Children
Strong Environmental
Tobacco Smoke Provision
Liability Protections for
Industry:
1. Liability Cap
2. Bar on Class Actions
3. Bar on Punitive
Damages
Yes
No
Yes
Yes
Yes
Only if bill meets
President's public
health principles.
Yes
No
Only if bill meets
President's public
health principles.
Yes
No
Only if bill meets
President's public
health principles.
*
Does not attempt to address most spending issues.
Q:
Is teen smoking going up or down?
A:
On April 2, the Centers for Disease Control in Atlanta released a new study
("Tobacco Use Among High School Students --United States, 1997") which
found that cigarette smoking rates among high school students rose by nearly a
third between 1991 and 1997, from 27.5 percent to 36.4 percent, with the sharpest
increase among African American students. Cigarette smoking was highest
among white students (40 percent), rising by 28 percent from 1991 (31 percent).
While the level of cigarette smoking among African-American students was lower
than for white students, the rate increased by 80 percent between 1991 and 1997
(from 12.6 percent to 22.7 percent). Overall, the study found that nearly half of
male students and more than a third of female students used cigarettes, cigars, or
smokeless tobacco during the previous month. This 1997 data was derived from
a survey of over 16,000 students in grades 9-12.
�(4/8 DRAFT)
TOBACCOQ&A
PRESIDENT'S KENTUCKY TRIP
April 9, 1998
I.
ADMINISTRATION POSITIONS ON TOBACCO FARMER ISSUES
Q.
Why is the President going to Kentucky?
A.
The President is going to Kentucky, the heart of burley tobacco country, to discuss the
need for comprehensive tobacco legislation that reduces youth smoking but provides for
the future of family farming and rural communities. In his statement last September, the
President said that protecting farmers and their communities was one of the key five
principles that must be included in any comprehensive tobacco legislation he would be
willing to sign. The President is going to Kentucky to discuss the impact of tobacco
legislation directly with farmers and effected communities, and urge passage of
legislation that meets the needs of reducing teen smoking and protects farmers and their
communities. The President will say that legislation authored by Senator Ford and
introduced as part of the McCain bill meets the goal of protecting farmers and their
communities.
Q.
What is the President's position on programs for tobacco farmers?
A:
The President made protecting farmers and their communities one of the five key
principles that must be included in any comprehensive tobacco legislation. Senator
Ford's bill, which provides for compensation for losses to quota owners and producers,
and makes provision for losses to rural communities where tobacco is grown, meets the
President's goal of protecting farmers. The President is encouraged that both the
interests of flue-cured and burley farmers are included in the proposal, and hopes that all
farmers will continue working together to ensure that legislation is passed this year.
Q.
Aren't the goals of reducing youth smoking and protecting tobacco farmers
contradictory?
A:
No. The President does not want the tobacco companies to go out of business, only
out of the business of selling to children. The tobacco farmers have played by the rules,
and should be protected in any legislation that passes. The President believes that we
can reduce youth smoking and protect rural communities if we all work together to urge
Congress to pass bipartisan comprehensive tobacco legislation this year.
�Q.
Senator Lugar recently suggested in an op-ed that the tobacco program should be
phased out. Does the Administration agree?
A.
The Administration feels that any legislation has to be evaluated in terms of how well it
meets the President's five principles -- including reducing youth smoking and protecting
farmers and their communities. Advocates of a free market for tobacco growers will
need to demonstrate that it is consistent with these principles. Many health groups have
argued that simply ending the tobacco program may actually increase the amount of
tobacco that is grown, decrease the cost of tobacco, and provide a windfall for cigarette
companies. In addition, representatives of family farms have suggested that ending the
tobacco program would have extremely negative economic effects on them and their
communities. The President went to Kentucky, in part, to discuss the various legislative
options with those directly effected by tobacco legislation and hear their opinions
first-hand
II.
BACKGROUND QUESTIONS RE: TOBACCO FARMERS
Q. How important is tobacco to Kentucky producers and the overall economy?
A. Including sales from fire-cured and dark air-cured tobacco, Kentucky tobacco producers
received over $800 million from the 1997 crop. Tobacco sales represent over 40
percent of
crop sales receipts and over 20 percent of all agricultural sales in Kentucky.
In 1997, over 600 million pounds of burley tobacco was produced in the United States - 70
percent in Kentucky.
Q. Who will be affected by a settlement?
A. The tobacco settlement will have a wide-reaching impact on all segments of the tobacco
industry, but a disproportionate effect on small and minority tobacco quota owners
and
producers. Ofthe 338,000 individual quotas, about 66 percent are
considered small farm
operations. Five percent of all quotas are owned by
small producers.
minorities, the majority of which are
Q. Why is tobacco so important to small farmers?
A.
Tobacco is a high value crop that generates gross receipts of $4,000 to $5,000 per acre.
Profits from 1 acre of tobacco are equivalent to between 15 and 20 acres of com or
soybeans. On small farms in Kentucky, with an average of22 acres of harvested
cropland in 1992, tobacco is vital to the economic survival of farmers. (source: 1992 Ag
Census)
Q. How much tobacco is grown in the United States?
�A. In 1997, tobacco production totaled 1.7 billion pounds with a value of over $3 billion, the
highest production and crop receipts since 1992. Sales of tobacco products reached a
$50 billion in 1997.
record
Q.
How does the tobacco program work?
A.
Since the 1930s, in order to grow tobacco, a fanner must have a quota. The quota allows
the fanner to grow a certain amount of tobacco for that year. Thus, the amount of tobacco
grown in the United States is controlled by law. In addition, the price of tobacco is set
statutorily. If a private company chooses not to purchase tobacco at or above the
statutory minimum price, the regional cooperative of tobacco fanners will purchase the
tobacco and store it, putting the tobacco back on the market when the price is more
favorable.
Q.
A:
What are the provisions of the Ford bill which is included in the McCain
legislation?
Senators Ford, Frist, and Hollings, the three members of the Senate Commerce
Committee from tobacco-growing states, joined together to include a farmer
provision in the McCain tobacco legislation. While maintaining a production
control system for all tobacco farmers, this package sets up somewhat different
systems for burley and flue-cured tobacco. For burley tobacco (grown mostly in
Kentucky), the package includes an optional buy-out for quota holders at $8 per
pound, and retains the quota system for those who do not take the buyout, but
provides payments to both remaining quota holders, lessees, and tenants to the
extent that base quota declines. For flue-cured tobacco, the plan provides for a
mandatory buyout of existing quota holders, and replaces the quota system with a
permit system that gives the new permits at no cost to active producers, regardless
of whether they previously held a quota. This transferring of quotas from inactive
quota holders to actual producers is intended to make it possible for active farmers
to sell tobacco without incurring the cost of buying or renting quota.
The provision authored by Senator Ford and included in McCain's legislation also
provides approximately $500 million for assistance to tobacco-producing
communities. The package costs $2.1 billion per year for the first ten years and
$500 million for years 11-25 for a total of $28.5 billion. For the most part, tobacco
farm leaders have been pleased with the proposal included in the McCain
legislation.
II.
GENERAL BACKGROUND ON TOBACCO LEGISLATION
�Q:
What's your reaction to RJR Nabisco CEO Steven Goldstone's remarks
today at the National Press Club?
A:
It is no surprise that the tobacco industry would protest the legislation
moving through the Congress --it is in their interest to object to the bill now
to prevent it from getting even tougher. In the end, the companies will have
a strong incentive to participate, and we're convinced that they'll recognize
this.
So we don't think the companies will walk away --and we hope they do not
do so. We would prefer that the companies join, rather than fight, our
efforts to reduce smoking.
But make no mistake: The President will continue to work to reduce youth
smoking no matter what the companies do. He has worked on this effort for
two years; members of Congress from both parties are now joining him; and
we will get strong legislation on youth smoking whether or not the companies
join us.
Q:
Will this deal drive RJR and/or other tobacco companies into bankruptcy?
A:
No. We're not trying to put the tobacco companies out of business; we want
to put them out of the business of selling cigarettes to kids. We've done
some careful financial analysis of the McCain bill, and we do not believe that
it will drive companies into bankruptcy. There's just no reason to think
that this legislation would increase the companies' exposure to a financial
loss of the kind that would send them into bankruptcy. Stopping companies
from selling cigarettes to kids will not put them out of business.
Q:
But don't you need industry cooperation to enact tobacco legislation?
A:
We would like the tobacco industry to willingly join us in this effort to reduce
youth smoking. And we still believe that the tobacco industry will have
every incentive to agree to legislation in the end, so that they can end this
chapter in their history. But if they refuse to join us, we will still make
progress. We will continue our efforts to pass comprehensive legislation to
dramatically reduce youth smoking.
Q:
Has the President endorsed the McCain bill?
A:
The President believes that this bill represents a dramatic step forward. It would
raise the price of cigarettes, give the FDA full authority to regulate tobacco
products, ban advertising aimed at children, and protect tobacco farmers.
�Q:
But he also said we still have work to do on this legislation. Above all, we need
to put in place tough penalties that will cost the tobacco industry if it continues to
sell cigarettes to young people. We're not trying to put the tobacco companies
out of business; we want to put them out of the business of selling cigarettes to
kids. This week's progress in the Senate shows we have real momentum in both
parties to do just that.
The President says we need stronger penalties on companies that continue to
sell to our children. What does he mean by that?
A:
The McCain bill's penalty provisions are deficient for two reasons. First, the bill
has a cap of $3.5 billion per year on industry-wide penalties, no matter how much the
industry misses youth targets by. Second, the McCain bill contains no penalties on
individual companies for failing to meet youth smoking targets. Reducing youth
smoking is our bottom line, and we must make it each and every company's bottom
line.
Q:
Does the Administration have concerns about provisions of the McCain bill
besides the penalties?
A:
We have serious concerns about this bill's provision which would allow
individual States to "opt out" of the national smoke-free environment policy. This
provision creates a patchwork system in which states could decide to adopt weaker
laws or decide against taking any action at all, leaving people with little or no
protection from the hazards of environmental tobacco smoke. In addition, there is no
need to exempt the tobacco industry from antitrust rules in order to reduce youth
smoking. We strongly oppose any exemptions that would allow price fixing
agreements. Third, we believe it is critical that tobacco legislation fund efforts to
promote public health and assist children.
Q:
What does the President want the tobacco funds to be spent on?
A:
The President strongly believes that tobacco revenues should go toward protecting
public health and assisting children. His budget provides for funds for anti-smoking
programs that will help us meet the goals of reducing youth smoking rates and for a
dramatic expansion of health-related research to help us cure smoking-related disease.
Finally, in recognition of the states' role in bringing suit against tobacco companies,
the President's budget provides for a substantial amount of money to revert to the
states. Some of this money can be used for any purpose. Other funds must be used
on state-administered programs to assist children (specifically, for child care,
Medicaid child outreach, and class size reduction).
Q:
What is your view of the liability protections for the tobacco industry
contained in Senator McCain's legislation?
�A:
As we have said on many occasions, we would prefer comprehensive tobacco
legislation without liability limits, but in the context of legislation that meets all of the
President's principles and dramatically reduces youth smoking, reasonable limits on
liability will not be a dealbreaker. Right now, we're going to focus on the aspects of
the McCain legislation that we think fall short of what the President has demanded:
particularly, on the penalties in the bill to reduce youth smoking. Until we get those
right, we won't address liability protections.
Q:
The tobacco industry has said that it will not agree to national tobacco
legislation that increases the price of a pack of cigarettes by $1.10 over five
years, as proposed by the President's budget and the McCain bill. Does that
doom the President's proposal?
A:
No. We have always expected the tobacco companies to fight hard for their
economic interests, but needless to say we will not always agree, nor we think will the
US Congress. This price increase called for in the President's budget is necessary to
meet his youth smoking targets, and he will continue to demand it. What the
companies do is up to them, but we will not back off such necessary measures to
reduce youth smoking.
Q:
What are the five principles that the President has said tobacco legislation
must meet?
A:
President Clinton has said he will only support tobacco legislation that:
•
•
Gets companies out of the business of marketing and selling tobacco to
minors;
•
Promotes public health research and public health goals; and
•
A:
Affirms the FDA's full authority to regulate tobacco products;
•
Q:
Raises the price of cigarettes by up to $1.10 a pack over 5 years and $1.50
a pack over the next ten years, and imposes tough penalties on companies
that continue to sell to kids;
Protects our tobacco farmers and their communities.
How does the McCain bill compare to the Attorneys General proposed
settlement and the President's proposal?
See chart below.
Comparison of Tobacco Proposals
April 7, 1998
�Attorneys
General
McCain
President
Substantial Price Increase·
No
Yes
Yes
Strong Industry and
Company Penalties
No
No
Yes
Full FDA Authority
No
Yes
Yes
Strong Advertising and
Access Provisions
Yes
Yes
Yes
Protections of Tobacco
Farmers
No
Yes
Yes
Comprehensive Plan to Use
Tobacco Revenue to Protect
Public Health and Assist
Children
Yes
No*
Yes
Strong Environmental
Tobacco Smoke Provision
Yes
No
Yes
Yes
Yes
Only if bill meets
President's public
health principles.
Yes
No
Only if bill meets
President's public
health principles.
Yes
No
Only if bill meets
President's public
health principles.
Liability Protections for
Industry:
1. Liability Cap
2. Bar on Class Actions
3. Bar on Punitive
Damages
Does not attempt to address most spending issues.
Q:
Is teen smoking going up or down?'
On April 2, the Centers for Disease Control in Atlanta released a new study
�("Tobacco Use Among High School Students -- United States, 1997") which found
that cigarette smoking rates among high school students rose by nearly a third
between 1991 and 1997, from 27.5 percent to 36.4 percent, with the sharpest
increase among African American students. Cigarette smoking was highest among
white students (40 percent), rising by 28 percent from 1991 (31 percent). While the
level of cigarette smoking among African-American students was lower than for
white students, the rate increased by 80 percent between 1991 and 1997 (from 12.6
percent to 22.7 percent). Overall, the study found that nearly half of male students
and more than a third of female students used cigarettes, cigars, or smokeless
tobacco during the previous month. This 1997 data was derived from a survey of
over 16,000 students in grades 9-12.
�ARMS Email System
RECORD TYPE: PRESIDENTIAL
Page 1 of 1
(NOTES MAIL)
CREATOR: Demond T. Martin ( CN=Demond T. Martin/OU=WHO/O=EOP [ WHO 1 )
CREATION DATE/TIME: 9-APR-1998 09:22:36.00
SUBJECT:
Higher Education Mtg.
TO: Scott R. Palmer ( CN=Scott R. Palmer/OU=PIR/O=EOP @ EOP [ PIR 1 )
READ: UNKNOWN
TO: Barbara Chow ( CN=Barbara Chow/OU=OMB/O=EOP @ EOP [ OMB 1 )
READ: UNKNOWN
TO: Tanya E. Martin ( CN=Tanya E. Martin/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Susan M. Liss ( CN=Susan M. Liss/O=OVP @ OVP [ UNKNOWN 1 )
READ:UNKNOWN
TO: Peter Rundlet ( CN=Peter Rundlet/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ:UNKNOWN
TO: Robert M. Shireman ( CN=Robert M. Shireman/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Michael Cohen ( CN=Michael Cohen/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Karen E. Skelton ( CN=Karen E. Skelton/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Maria Echaveste ( CN=Maria Echaveste/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
CC: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
CC: Ora Theard ( CN=Ora Theard/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
CC: Miriam H. Vogel ( CN=Miriam H. vogel/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TEXT:
Sylvia Mathews will hold a Higher Education meeting in the Ward Rm. at
10:30am on Friday April 10.
�ARMS Email System
RECORD TYPE: PRESIDENTIAL
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(NOTES MAIL)
CREATOR: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP [ WHO 1 )
CREATION DATE/TIME: 9-APR-1998 10:04:22.00
SUBJECT:
TO: ELENA (Pager) #KAGAN ( ELENA (Pager)
READ: UNKNOWN
#KAGAN [ UNKNOWN 1 )
TEXT:
Leg. Stategy is now at 11:30 in Erskine's office, not 10:00
�ARMS Email System
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(NOTES MAIL)'
CREATOR: Cynthia A. Rice ( CN=Cynthia A. Rice/OU=OPD/O=EOP [ OPD ] )
CREATION DATE/TIME: 9-APR-1998 10:29:27.00
SUBJECT:
Here is the draft memo--I'll bring Elena a hard copy
TO: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO ] )
READ: UNKNOWN
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
TEXT:
==================== ATTACHMENT
1 ====================
ATT CREATION TIME/DATE:
0 00:00:00.00
TEXT:
Unable to convert ARMS_EXT: [ATTACH.D43]MAIL474714894.026 to ASCII,
The following is a HEX DUMP:
FF575043AF060000010A0201000000020500000066310000000200008356BDEFDOEOFE744C4F07
081048CE021EB083A7CB4325CEC2D09056145685F4B1E32533EBAC4026987491B4D35DC5BFB487
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9A40A8CADEE954E8E976A763A657AABD7303FFF4EEAF8F203FD0919815CA49767C7A08AD695446
�Automated Records Management System
Hex-Dump Conversion
April 9, 1998
MEMORANDUM FOR
FROM:
SUBJECT:
As you know, we have praised the McCain bill as a significant step forward, noting that it raises
the price of cigarettes by $l.l0, assures FDA full authority to regulate tobacco, and protects
farmers and farming communities. We also believe we need several key changes to the McCain
bill to ensure it will meet our goals of reducing youth smoking and protecting the public health.
Youth Lookback Penalties
We believe that providing individual companies with a financial incentive to reduce youth
smoking will help ensure we meet our goal of reducing youth smoking by 60 percent within 10
years. Currently, the McCain bill levies an industry-wide surcharge when the targets are missed,
a cost which companies will pass onto consumers. We would recommend a company specific
surcharge developed by our experts at Treasury and HHS, which would impose a $1000 fee for
every child by which a company misses the targets (i.e., if a company missed the target by
10,000 children, they would pay a fee of $10,000,000). A $1000 per child surcharge is twice
average company yearly profits per smoker.
Currently, the McCain bill caps industry-wide penalties at $3.5 billion. This means that the
surcharge would increase the price by $.30 per pack at most, no matter how much the industry
misses the youth smoking targets by. Because the price increase resulting from industry wide
penalties will provide additional deterrence to youth tobacco use, we believe we should lift the
cap from $3.5 to $4 to $5 billion.
We also recommend revising the McCain penalty language to ensure that both company and
industry surcharges are levied based on objective outcomes. The current language requiring the
federal government to show that companies engaged in bad behavior in addition to missing the
�targets may subject these provisions to endless litigation.
Price per Pack and Spending
Price per Pack
As you know, many in the public health community argue that $1.50 per pack price increase is
needed to significantly reduce youth smoking. We do not believe, however, that we should
push for an additional increase in the annual industry payments in the McCain bill, because we
believe that Congressional scorekeepers will estimate that the yearly payments in the bill will
increase the price of cigarettes by nearly $1.50 per pack rather than the $1.10 we estimated. The
price per pack estimate would increase if the scorekeepers assume that 1) states will use the
opportunity to increase state excise taxes, further reducing the number of packs smoked and 2)
the bill will significantly increase the black market for cigarettes, resulting in fewer than expected
packs sold through the legitimate retail market. By reducing the number of expected packs sold,
both of these changes would increase the per pack price estimate because the annual industry
payment set in legislation would be spread among fewer packs, raising the price of each more.
Spending
We expect bipartisan consensus on 75-80 percent of the spending ($10 billion over 5 years
for farmers; $10 billion for cessation, counteradvertising, and other public health
programs; $10-15 billion for NIH; and $20-25 billion for states). The battle will be over
how to divide up the remaining $15 billion or so. Senate Republicans will seek money for
Medicare; House Republicans may push Rep. Archer's proposal for health care tax
deductions for small business and the self-employed; and Democrats will push for
everything from child care to school construction.
As you know, in our budget, we earmark 57 percent of the state funding for child care, class size,
and Medicaid outreach initiatives. As we go forward, we should argue at a minimum that a
significant portion of the state funds should be used for state programs such as child care and
education that are defined in a menu-like list in the legislation. For example, in the
Harkin-Chafee bill, half of the state funds must be spent on one of 20 listed programs, which
include child care, K-12 education, Medicaid, the Child Health Insurance Program, and Head
Start.
Antitrust Exemption
The McCain bill contains antitrust exemptions for the tobacco industry which are not necessary to
achieve the goals of the legislation and may have serious anticompetitive effects. The antitrust
exemption is not necessary to ensure that distributors and retailers don't sell tobacco products to
minors nor to allow companies to enter into agreements with the federal or state governments.
�We believe we should oppose all antitrust exemptions, except for narrowly-drawn ones if
necessary to restrict advertising and marketing to children.
3
�International Tobacco Control Efforts
As part of the public health spending noted above, we believe it is important to include
significant funding ($200 million a year) for international tobacco control efforts. We believe
these funds should be spent on both governmental and non-governmental efforts to promote
public health and smoking prevention efforts abroad. Such funds could be used to provide
technical assistance to public health departments in other countries and finance diplomatic,
media-related and grass-roots efforts to discourage youth smoking abroad.
The McCain bill has several international provisions which we believe should be amended to
ensure that they do not interfere with our diplomatic and trade priorities. For example, we
support the bill's effort to prohibit U.S. government support for promotion of tobacco overseas,
but need to ensure that the language does not interfere with USTR's ability to negotiate tariff
reductions or interfere with treatment of other products. In addition, the McCain bill contains a
provision which the State Department and HHS consider problematic and unenforceable, which
would require U.S. companies to abide by the new advertising and marketing restrictions when
doing business in other countries. Instead, we recommend that we work on a multilateral basis
through the World Health Organization to encourage other countries to adopt laws like ours.
Environmental Tobacco Smoke
We have serious concerns about the McCain bill's provisions which would allow individual states
to "opt out" of the environmental tobacco smoke provisions that ensure public facilities are smoke
free. This provision creates a patchwork system in which states could decide to adopt weaker
laws or decide against taking any action at all, leaving many children with little or no protection
from the hazards of second hand smoke.
Preemption
We believe the bill's preemption provisions may go too far in preventing state and local
governments from enacting tougher anti-smoking laws if they so choose and may unfairly end
local lawsuits with the tobacco industry without including local governments as beneficiaries of
industry payments. [checking].
Constitutional Issues
We are prepared to recommend changes to the advertising, marketing, and other free
speech-related provisions to ensure they are narrowly tailored to meet the government's
compelling interest in protecting children. Provisions regulating non-commercial speech, such
as forbidding companies from lobbying Congress, are particularly problematic and should be
removed.
4
�•
Condusion
In summary, we would recommend seeking these improvements:
Youth Lookback Penalties
•
•
$1000 for every child by which companies miss the youth smoking reduction targets
Increase the industry-wide surcharge cap from $3.5 to $4-5 billion
Price and Spending
•
•
•
No change in annual payment amounts
Consensus spending on public health efforts
Menu including child care and education for significant portion of state spending
Antitrust Exemption
•
Eliminate the antitrust exemption
International Tobacco Control
•
•
•
Support funding for governmental and non-governmental organizations
Prohibit U.S. support for promotion of tobacco overseas without limiting USTR
authority to negotiate treaties
Work multilaterally through the World Health Organization to prevent companies from
marketing to children overseas, but do not impose difficult-to-enforce unilateral rules
Environmental Tobacco Smoke
•
Eliminate "opt-out" provision that allow states to adopt weaker laws
Preemption
•
•
Allow state and local governments to impose stricter anti-tobacco laws
Permit local lawsuits to proceed
Constitutional Issues
•
Recommend changes to minimize Constitutional difficulties
6
�ARMS Email System
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(NOTES MAIL)
CREATOR: Diana Fortuna ( CN=Diana Fortuna/OU=OPD/O=EOP [ OPD 1 )
CREATION DATE/TIME: 9-APR-1998 11:05:35.00
SUBJECT:
FICA/workfare
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Cynthia A. Rice ( CN=Cynthia A. Rice/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Bruce N. Reed ( CN=Bruce N. Reed/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
CC: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ:UNKNOWN
TEXT:
Charlie Salem of Gov. Chiles' office says Chiles is itching to start
banging the drum again on the FICA/workfare notice issue with his fellow
Governors.
He has been holding back after we quietly consulted just him
and Carper on the specifics of the notice right before the Feb. NGA
meeting.
But there is an NGA executive committee meeting in DC on April
24 (where they will focus mostly on tobacco) , and Charlie says it may find
its way onto the agenda by then.
So perhaps that gives us a deadline in
pushing Podesta.
(By the way, Treasury says their desire to do the notice is not affected
by Rubin's chat with Sweeney.
Rubin wants to be briefed on the issue, but
Scholz is certain that that briefing will just be informational and won't
alter their position.)
�ARMS Email System
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(NOTES MAIL)
CREATOR: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP [ WHO 1 )
CREATION DATE/TIME: 9-APR-1998 11:26:07.00
SUBJECT:
TO: ELENA (Pager)
READ: UNKNOWN
#KAGAN ( ELENA (Pager) #KAGAN [ UNKNOWN 1 )
TEXT:
FYI- Jason says the Leg. Strategy Mtg. will start PROMPTLY at 11:30
�ARMS Email System
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(NOTES MAIL)
CREATOR: Diana Fortuna ( CN=Diana Fortuna/OU=OPD/O=EOP [ OPD 1 )
CREATION DATE/TIME: 9-APR-1998 11:27:00.00
SUBJECT:
Update on prisoners and benefits
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ:UNKNOWN
TO: Bruce N. Reed ( CN=Bruce N. Reed/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
CC: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
CC: Jose Cerda III ( CN=Jose Cerda III/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
CC: Leanne A. Shimabukuro ( CN=Leanne A. Shimabukuro/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
CC: Cynthia A. Rice ( CN=Cynthia A. Rice/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TEXT:
We met yesterday with Rahm, Gene, Barbara Chow, and SSA on a possible
radio address on stopping fraud in benefit payments to prisoners. We
agreed that there is some potential in announcing that other agencies
(USDA, maybe VA and others) will take advantage of SSA's big new database
of prisoners to spot prisoners who are getting benefits. We will work
with OMB to survey agencies for programs where this might work.
SSA notes
Shaw is doing an oversight hearing on SSI fraud this month and that there
will be a lot of heat from Congress in coming weeks on fraud, so this
would let us take the offensive a bit.
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(NOTES MAIL)
CREATOR: Cynthia A. Rice ( CN=Cynthia A. Rice/OU=OPD/O=EOP [ OPD 1 )
CREATION DATE/TIME: 9-APR-1998 11:32:55.00
SUBJECT:
Conrad Priorities on McCain
TO: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Cynthia Dailard ( CN=Cynthia Dailard/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Bruce N. Reed ( CN=Bruce N. Reed/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TEXT:
---------------------- Forwarded by Cynthia A. Rice/OPD/EOP on 04/09/98
11:32 AM ---------------------------
Richard J. Turman
04/09/98 10:36:31 AM
Record Type:
Record
To:
See the distribution list at the bottom of this message
cc:
Subject:
Senate Dem e-mail on Tobacco
We received a
staff by Sen.
and a summary
would be best
Subject:
Author:
Date:
copy of the attached e-mail, that was sent to Senate Dem
Conrad's staff.
It includes a current sense of their plans,
they prepared of concerns about Sen. McCain's bill.
It
if Sen. Conrad's staff did not know we received it -- thanks.
Preparation for Tobacco Floor Action
Tom Mahr
4/8/98 5:59 PM
As most of you probably know, Senator Lott has indicated that he
intends to take up tobacco legislation on the floor in late May.
We
are starting to gear up for Senate floor action and wanted to make
sure we touched base with other offices that might want to be
involved.
Our analysis is that, while it is good that a tobacco bill will be
taken up on the floor, the McCain bill falls very short of meeting the
public health goals that I think all of our bosses share.
Attached is
a preliminary critique that explains why the McCain bill is not a
good, strong tobacco bill that will succeed in protection kids from
tobacco.
We have talked with public health groups to identify priority areas
where the bill needs to be significantly strengthened, and we are
�ARMS Email System
Page 2 of 6
starting to reach out to Republican offices to try to set up
bipartisan working groups to help us develop amendments that would win
a majority on the floor and make the bill acceptable in these areas.
Here are the areas that we intend to concentrate on:
1)
2)
3)
4)
5)
6)
7)
8)
$1.50 price increase within no more than three years
strong, company-specific look-back penalties
full, dedicated funding for tobacco control programs
no special liability protections for the tobacco industry
Strong second-hand smoke provisions
No pre-emption of stronger State or local tobacco control measures
No anti-trust protection for the tobacco industry
Full disclosure of all relevant tobacco industry documents.
We think it makes sense to make sure that people who have an interest
in these issues work together rather than working at cross-purposes or
developing competing approaches, none of which then can generate a
majority on the floor.
If your Senator is interested in working on
any of the above issues, could you please let me know. Then we'll
make sure that everyone with an interest is included in any working
group that develops on the issue.
Also, if you have contacts with Republican offices and know of
Republican Senators who may be interested in taking an active role on
any of these issues, that would be very helpful information as we move
forward.
please let me know.
Message Sent
To: _________________________________________________________________
Joshua Gotbaum/OMB/EOP
Melany Nakagiri/OMB/EOP
Wm G. White/OMB/EOP
Marc Garufi/OMB/EOP
Jim R. Esquea/OMB/EOP
Barry T. Clendenin/OMB/EOP
Frank J. Seidl III/OMB/EOP
Mark E. Miller/OMB/EOP
Jill M. Blickstein/OMB/EOP
Jill M. Pizzuto/OMB/EOP
Cynthia A. Rice/OPD/EOP
==================== ATTACHMENT
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ATT CREATION TIME/DATE:
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wpcl
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p'/ hUh"k A#DXP6SpN,uOL'=oc,C5u}_@E9#D{?f3HHb,++f]
ZsD?',GLW%Y6JxOAo4<h-(k5;2CjHueX%(A'X8b%$MP
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'$Times
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NewRoman 1$31 x
!DDxxxx DDT@4
D<DL!T$&)\+-00d24XT02DXX#2D2DM#2D2DPreliminaryAnalysisoftheCommerceCommitteeBil
1
oDo#XX2D##XXXX'#XXXXTheCommerceCommitteebill,althoughitimprovesuponthedefic
entJune20thproposal,falls
p shortonkeypublichealthrequirementswhilegivingtheto
accoindustryunprecedentedlegalliabilityprotection.ltdoesnotincludeasufficientpr
iceincreaseorlook-backpenalties.TheFDAtitle,whilepassable,leavesFDAregulationun
necessarilyopentolegalchallenge.Theretailercomplianceprovisionsareweak.Thedocum
entprovisionsarecumbersome.Anunnecessaryanti-trustexemptioncreatesanopportunity
fortheindustrytodramaticallyincreaseitsprofits.AndStatesandlocalitiesremainlimi
tedintheirabilitytoenacttoughertobaccocontrollaws.oPricelncreaseislnadequate
@
DPublichealthexpertsandeconomistsagreethatahealthypriceincreaseisthesinglemoste
ffective
000 waytosignificantlyreduceyouthsmokingrates.Theyhaveconcludedthati
akesapriceincreaseofatleast$1.50perpacktogetwithinrangeoftheyouthsmokingreducti
ontargetssetoutinthelegislation.TheMcCainbillprovidesapriceincreaseofonly$l.lOp
erpackinthefifthyearandthereafter.Thismeansthat,eachyear,morethan150,000youthsw
illstartsmokingwhowouldnothavestartedifthepricehadbeenincreasedthefull$1.50perp
ack.Morethan50,000ofthesechildrenwhostartsmokingeachyearbecauseoftheinadequatep
riceincreasewilleventuallydieprematurelyofatobacco-relateddisease--oraboutthesa
menumberofAmericansasdiedduringtheentireVietnamWar.Althoughthetobaccoindustryan
dothershaveassertedthata$l.lOrealpriceincreaseatthemanufacturerlevelwillsomehow
turnintoa$1.50realpriceincreaseatretail,theTreasuryDepartment,FederalTradeCommi
ssionandthevastmajorityofeconomistsandindustryanalystsagreethattherewillbenosig
nificantmark-up.lnfact,someanalystspredictthatmanufacturerswouldrespondtoaprice
increaseof$l.lObysqueezingretaileranddistributormargins.Similarly,althoughtheto
baccoindustrytriestoraisethespecterofablackmarket, Treas uryandBATFsaythereisnomo
resignificantlikelihoodofablackmarketwitha$1.50priceincreasethanwitha$l.lOprice
increase.uLook-backProvisionsareWeakandlneffective
$! OEffectivelook-backpenalt
iescanchangethecurrentincentivesthatdrivetobaccomanufacturersto % " markettochi
Idren. Currently, manufacturersknowthatchildrenaretheonl yavailablesourceof replac
ementsmokerstotaketheplaceofthe2millionAmericansmokerswhoquitordieeachyear.lfso
meonedoesntstartsmokingasachild,heorsheisextremelyunlikelytostartsmokingasanadu
It.Moreover,tobaccomanufacturersknowthatsmokersareveryloyaltothefirstregularbra
ndsmoked.Takentogether,thesefactsmeanthattobaccomanufacturerswouldnotbeservingt
heirshareholdersinterestsiftheydidntmarkettochildrenbecausetheywouldbegivingupt
heirfuturemarket.Stronglook-backpenaltiesturnthisincentivestructureupside-down.
Theycreate
anaffirmativemarketincentivefortobaccomanufacturerstoputtogoodusetheknowledgeth
ey
-P(* haveaccumulatedabouthowtogetchildrentostartsmokingandinsteadgetchildren
nottousetobaccoproducts.
Unfortunately,theMcCainlook-backswillnotdothis.First,theydonotimposethepenaltie
sonacompanyspecificbasis.lmposingthemindustrywidecreatesaperversedisincentivefo
rcompaniestoreduceyouthsmokingoftheirbrandsbecausetheywillstillbepenalizedifthe
restoftheindustrybuildsfuturemarketsharebycontinuingtoselltochildren.Second,the
penaltiesaretoosmall.Theyamounttoonlyl/30flcentperpackforthefirstfivepercentage
pointsbywhichthetargetsaremissed,2/3centforthenextfivepercentagepoints,andlcent
forthenextlOpercentagepoints.Theyarecappedat$3.6billion,or15centsperpack.Thissm
allpenaltycaneasilybeabsorbedbythecompaniesorpassedalongtoconsumers,andisnotsuf
ficienttochangecompaniesbehavior.Finally,themethodologyusedincalculatingthelook
-backsisskewedtounder-reportyouthsmokingrates.DFDAAuthorityOpensFDAtoUnnecessar
yLegalChallenges
oTheChairmansmarkattemptstotransferauthorityovertobaccoprod
uctsfromthedrug/device
ChapterofFDAlawintoanewChapter.Thiscouldprovetobeafulle
mploymentactfortobaccoindustrylawyers.ltwillcreatenewopeningsforthetobaccoindus
trytochallengetheFDArulebecauseitwaspromulgatedunderthedrug/deviceauthority.And
itwillcreateadditionalopportunitiestochallengeanyregulationsnecessarytoimplemen
tthenewChapter,becauseitwillnothavethebenefitofdecadesofagencypractice,caselaw,
interpretations,oranyotherhistorytowhichtheCourtsgenerallygivegreatdeference.Th
�ARMS Email System
Page 4 of 6
ereisnoreasontorunthisrisk;tobaccoproductsshouldberegulatedasdrugsanddevices.OT
obaccoControlPrograms
0 OThemarkincludesauthorizationforavarietyoftobaccocontr0
Iprograms.AlthoughSenator
p McCainrepeatedlysaidthatheintendedtofundtheseprog
amsfromtobaccorevenuesandnotleavethemsubjecttoannualappropriations,thatisnotref
lectedinthecurrentdraft.Fullyfundingtheseprogramsiscriticaltothesuccessoftobacc
olegislation.CYouthAccessRestrictionsNotToughEnough
OResearchshowsthatunless
theretailercomplianceratereachesatleast90%,childrenwillcontinue ! tohaveeasyacc
esstotobaccoproducts.ltsjusttooeasyforchildrentogototheretailersthatareknowntos
elltominors.Acompliancerateof95%isnecessarytoproducesignificantreductionsinyout
haccesstotobaccoproducts.TheMcCainmarkonlyprovidesfor75%complianceinyear5,85%co
mplianceinyear7,and90%complianceinyearlO.Thesecompliancetargetsarenottoughenoug
htoserveasaneffectivecomplementtotheotherprovisionsinthebill.lnfact,theyincreas
ethelikelihoodthattheyouthsmokingreductiontargetswillnotbereachedandputanincrea
sedburdenonmanufacturers.Thesetargets,andthepenaltiesformissingthetargets,shoul
dbestrengthenedtoensurethatretailersandtheStatesdotheirpartinreducingyouthtobac
couse.OEnvironmentalTobaccoSmokeProtectionsareWeak
+p&) ORecentstudiesconfirmt
hatETScausessignificantandlastinghealthdamage.YettheMcCainbill , " * failstoseta
minimumFederalfloortoprotectagainstETSexposure.ltallowsStatestoopt-outofthesemi
nimumstandards.lnaddition,itexemptsallnon-fastfoodrestaurantsfromtheprovisions
-@), andprovidesnospecialprotectionsforfacilities--suchasschoolsordaycarecenter
s--wherechildrenaremostlikelytobeexposedtoETS.Finally,thenon-pre-emptionlanguag
efailstooverrideinconsistentprovisionsofOSHAlaw,andwouIdthereforeprohibitmanySt
atesfromenactingtougherETSlaws.uAnti-TrustExemptionCouldVastlylncreaselndustryP
rofits
DAlthoughtheprovisionisdescribedasalimitedanti-trustexemption,itspr
isionswouldappear
P
toallowcompaniestocolludeandfixpricestocomplywiththeAct. Infact,whencoupledwith
thepass-throughrequirementandpenaltiesforfailingtopassthroughthepriceincreases,
theMcCainmarkappearstocreateanincentiveforcompaniestoconspiretoincreasepricesab
ovetheamountnecessarytoachievethepriceincreasessetoutinthemark.AstheFederalTrad
eCommissionanalysisoftheproposedsettlementconcludedlastyear,thiswouldallowtheco
mpaniestoearnmonopolyprofitsfarinexcessofthosetheycurrentlyearn.TheFTChastestif
iedthattheanti-trustexemptionisunnecessaryanddangerous. Itshouldbedropped.DState
anpLocalPre-emptionFailstoAllowStatestoAct
DAlthoughtheMcCainmarkpurportsnotto
pre-emptstrongerregulationattheStateorlocallevel,
thisnon-preemptionisinfactq
itelimited.ltfailstooverrideexistingpreemptivelanguageinFederalstatutes,suchast
heFederalCigaretteLabelingAct.DDocumentDisclosureIsCumbersome
p DThetobaccoindu
stryhashiddenbehindmisuseoftheattorney-clientprivilegeforyears.TheCourt ' inMin
nesotahasruledthattheindustryhasabusedthisprivilegetoshieldthousandsofdocuments
,andhasorderedthemreleasedtotheStateofMinnesotainitstrial.Particularlygiventhat
theMcCainbillgivestheindustrypartiallegalimmunity,thepublichasarighttoknowwhatt
heindustryhasknownanddoneaboutthehealtheffectsoftobaccoproducts,theaddictivenes
sofnicotine,andmarketingaimedatchildren.TheMcCainbill,though,setsupacumbersomep
rocesswherebydocumentsforwhichtheindustryclaimsattorney-clientprivilege--includ
ingthosethathavebeenorderedproducedinMinnesota--couldcontinuetobeshieldedforyea
rs.Thebillalsogivesextraordinarydeferencetoindustryclaimsoftradesecretprotectio
n,givingtheindustryyetanotherdefenseagainsttheproductionofdocumentsthatcouldrev
ealcriticalpublichealthinformation.DlnternationalandAnti-SmugglingO
#! TheMcCai
nmarkprovidedstronginternationalprovisionstoprotectchiIdrenoverseasfromthedange
roftobaccoproducts.ltalsoincludesanti-smugglingprovisionsthatwillhelppreventthe
developmentofablackmarketfortobaccoproductsinthiscountry.Theseprovisionsareoppo
sedbySenatorsFordandHollings.AttheendoftheCommitteemark-up,agreementwasreachedt
hatSenatorsHollings,FordandWydenwouldtrytoreachagreementonthislanguage.ltisnotc
learwhatwillhappenifnoagreementisreached,buttheymaybedroppedfromthebill.DLiabil
ityLimitsGivelndustryUnprecedentedProtection
+p&) OThefullSenatevotedoverwhelm
ingly{79-19)onthebudgetresolutionforanamendment ,"*
expressingthesenseoftheSenatethattobaccolegislationshouldnotprovideimmunitytoth
e
-P{+ tobaccoindustry,yettheMcCainbillprovidesunprecedentedlegalprotectiontot
etobaccoindustry.
�ARMS Email System
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Thetobaccoindustry,ofallindustries,doesnotdeservethisspecial,privilegedprotecti
on. IthasmisledtheAmericanpublicandtheCongressaboutthehe altheffectsoftobaccouse,
theaddictivenessofnicotineanditsmanipulationofnicotinetomakeitmoreaddictive,and
itseffortstomarketitsproductstochildren.Itissupremelyironicthattheproposallimit
svictimsrightsforrecovery--andasksthemtopayfortheprivilegethroughhigherpriceson
tobaccoproducts.DCaps
p
OLiabilitycapswillinevitablydelayordenyjusticetovict
imsofthetobaccoindustry.Bylimiting
therecoveryforthosewhodiefromtobacco-relateddiseasestoanaverageofjust$16,250pe
rdeath,a$6.5billioncapseverelydiscountsthevalueofhumanlife.Moreover,itplaysinto
theindustrysstrategyofprotractedlegalbattlesthatbecometooexpensiveforplaintiffs
topursue.Inaddition,the$6.5billioncapamountstopenniesonthedollarcomparedtothepo
tentialliabilityofthetobaccoindustry.TheTreasuryDepartmentrecentlyestimatedthat
tobaccocostsoursociety$130billioneachyear.Thepotentialliabilityexposureofthetob
accoindustryfordamagesbasedonpastactionsofthecompaniescouldeasilyexceed$2trilli
ondollars,excludingpunitivedamageclaims.At$6.5billionperyear,itwouldtake300year
sforthetobaccoindustrytopaythesedamagesinfull.Thesecapswillprovideahugefinancia
lwindfalltothetobaccocompanies.WallStreetanalystsreportthattobaccostockpricesin
cludea litigationdiscountthatreducestheirvalue.Providingcertaintybyimposingcaps
willreducethisdiscount,providingawindfalltocompanyexecutivesandshareholders.Tha
tis,ratherthanputtingtheindustrysextensiveassetstoworkforitsvictims,itincreases
theindustrysassetsbyProtectingthemfromthevictims.Finally,administeringthecapsfa
irlyandrationallywouldbeextremelydifficult.Whowoulddecidewhichjudgmentorsettlem
entawardsgetpriorityandwhichonesaredelayed?OOtherIssues ! DInadditiontotheprobl
emscreatedbythecaps,theMcCainproposalcontainsseveralothertroubling
features.
First,itbarsalladdictionanddependenceclaims.Althoughtheintentofthisprovisionisn
otclear(particularlywhenviewedinconjunctionwiththe generalcausationassumptionth
atstipulatesthatnicotineisaddictive),itwouldappeartoblockanyargumentorevidenceb
asedonaddiction.ThishasveryimportantimplicationS.Itrulesouttheonlypossibleargum
entthatcanbeusedtocountertheindustrys assumptionofriskargument. (Theindustryargu
esthatbecausesmokersshouldhaveknownofthedangerbutcontinuedtousetheproduct,theya
ssumedtheresponsibilityforanythingthathappenedandtheindustrycannotbeheldliable;
theonlycountertothisargumentisthatthesmokerwasnotabletoexerciseanychoicebecause
heorshewasaddicted.Itisnotclearhowthe generalcausationassumptionwouldaffectthea
ssumptionofriskargument.Certainly,theindustrywouldappeartobeabletousetheassumpt
ionofriskargumentsolongasitcanrebutspecificclaimsofaddiction.Ifanindividualcann
otmakeaclaimofaddiction,itwouldbehardtocountertheindustrysclaimthataddictionwas
notpresentinaspecific,individualcase.)
-@), Thiswouldappeartogivetheindustryavi
rtuallyinvincibledefenseagainstallindividualcasesorclassactions.Second,theMcCai
nproposalbarstheuseofanyevidencerelatingtothedevelopmentofreducedriskproductsaf
terthedateofenactment.Iftheindustrycouldhaveproducedareducedriskproductbutchose
notto,thisisaverymaterialfactinprovingthattheindustrywasrecklessornegligentinde
signingadefectiveproduct.Eventhoughthisappliesonlytofuturedevelopmentefforts,th
everyfactthattheindustrycouldeasilydevelopareducedriskproductwouldberelevanttoa
jurysdecisiononacompanyspastbehavior--particularlyifthediscoveryweretouncoverre
ferencestopreviousresearchonsimilareffortsthatwereabandonedas infeasibleor unpr
omising.Barringthisevidenceaddsyetanotherlayertotheindustrysarmor.Third,theMcCa
inproposalappearstolimitpunitivedamagesforfutureconductbytheindustry,givingitas
afeharborifitcomplieswiththetermsoftheMcCainbill.Thissafeharborwouldappeartoapp
lyevenincasesofmisconductthatwasnotanticipatedbytheMcCainbill.Fourth,theCommerc
eCommitteebillappearstoallowdomestictobaccocompaniestosevertheiraffiliationwith
domesticnon-tobaccocorporateparentsandsiblingsandinternationaltobaccooperations
. Thiswouldallowthetobaccoindustrytoshieldtensofbillionsofdollarsinassetsfromvic
tims.Finally,althoughsomeassertthatcapsarenecessary,noneoftheargumentsputforwar
dinsupportofthisassertionwithstandcarefulscrutiny.First,somearguethatthecompani
eswillgobankruptifwedonotcaptheirliability,andthenvictimswillbeleftwithnothing.
Thisisjustnottrue.Theindustryhassuchsubstantialassets, thatbankruptcyisanextreme
lyunlikelyprospect.Evenifanindividualcompanyweretogobankrupt,however,thisdoesno
tmeanthat victimsgetnothing.Underbankruptcy,thecompanysassetswouIdbeorganizedfo
rthebenefitofvictims;underacap,asnotedabove,thecompanysassetsareenrichedattheex
�· t-RMS Email System
Page 6 of 6
penseofvictims.Second,somearguethattherewillbea rushtotheCourthouseifwedonotimp
osecaps.lnfact,capsmaydiscouragelawsuits,becausethelimitonrecoverywouldmakethee
xpenseoflitigatingagainstthetobaccoindustryapoorinvestment.Third,somearguethatw
eneedtogivetheindustrythisliabilityprotectioninordertoobtainitscooperationonadv
ertisingrestrictions.However,theindustryhasmadeclearthatitwillopposetheCommerce
Committeebillandwillnotcooperate,sowemaybebuyingnothingwiththesecaps.Mostlikely
,theindustryisbluffing;webelievethattheindustrywouldsignconsentdecreesforthefar
morelimitedpurposeandprotectionofresolvingjustgovernmentalclaims.lnanycase,even
iftheindustrysignsconsentdecrees,thereisnoguaranteethattheseconsentdecreeswillb
eConstitutionalorenforceable.lfnot,theCongresswillhavegiventheindustryanextraor
dinarybenefitandgainednothinginreturn.ThisisnotagambletheCongressshouldtake.OMi
tigatingFactors 0*%( OTheMcCainproposalincludesa generalcausationpresumptiontha
tnicotineisaddictiveandthat
+p&) certaindiseasesarecausedbytobacco.Thisisanimp
ortantmoveinthedirectionofprovidingbalancetotheproposa1.However,itdoesnotoffset
theeffectofthecapsonliabilityorotherspeciallegalprotectionsprovidedtotheindustr
y.#XXXX#================== END ATTACHMENT
1 ==================
�ARMS Email System
RECORD TYPE: PRESIDENTIAL
Page 1 of 1
(NOTES MAIL)
CREATOR: Cynthia A. Rice ( CN=Cynthia A. Rice/OU=OPD/O=EOP [ OPD 1 )
CREATION DATE/TIME: 9-APR-1998 12:28:38.00
SUBJECT:
here's the update on preemption for the memo Elena is editing
TO: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
CC: Cynthia Dailard ( CN=Cynthia Dailard/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TEXT:
The McCain bill ends local lawsuits with the tobacco industry without
including local governments as beneficiaries of industry payments.
In
addition, the bill does not repeal current law which prohibits state and
local governments from enacting tougher advertising restrictions.
However
the bill allows state and locals to enact tougher access restrictions.
�ARMS Email System
RECORD TYPE: PRESIDENTIAL
Page 1 of 1
(NOTES MAIL)
CREATOR: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP [ WHO 1 )
CREATION DATE/TIME: 9-APR-1998 12:32:55.00
SUBJECT:
TO: ELENA (Pager) #KAGAN ( ELENA (Pager) #KAGAN [ UNKNOWN 1 )
READ: UNKNOWN
TEXT:
Sally wants you to review H1B background memo ASAP & Thurm called 690-6133
�,A,RMS Email System
RECORD TYPE: PRESIDENTIAL
Page 1 of 2
(NOTES'MAIL)
CREATOR: Jason S. Goldberg ( CN=Jason S. Goldberg/OU=WHO/O=EOP [ WHO 1 )
CREATION DATE/TIME: 9-APR-l998 12:33:48.00
SUBJECT:
MONDAY: Legislative Strategy Group
TO: Elena Kagan
READ: UNKNOWN
CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD 1 )
TO: Terri J. Tingen ( CN=Terri J. Tingen/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ:UNKNOWN
TO: Janet L. Graves ( CN=Janet L. Graves/OU=OMB/O=EOP @ EOP [ OMB 1 )
READ: UNKNOWN
TO: Todd P. Romero ( CN=Todd P. Romero/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ:UNKNOWN
TO: Jessica L. Gibson ( CN=Jessica L. Gibson/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ:UNKNOWN
TO: Melissa G. Green ( CN=Melissa G. Green/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Michelle Crisci ( CN=Michelle Crisci/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Demond T. Martin ( CN=Demond T. Martin/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: RUDMAN_M
READ:UNKNOWN
RUDMAN_M @ A1 @ CD @ VAXGTWY [ UNKNOWN 1 ) (NSC)
TO: Sandra L. Via ( CN=Sandra L. Via/OU=OMB/O=EOP @ EOP [ OMB 1 )
READ: UNKNOWN
TO: Cathy R. Mays ( CN=Cathy R. Mays/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Scott R. Hynes ( CN=Scott R. Hynes/O=OVP @ OVP [ UNKNOWN 1 )
READ: UNKNOWN
TO: Eleanor S. Parker ( CN=Eleanor S. Parker/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Peter A. Weissman ( CN=Peter A. Weissman/OU=OPD/O=EOP @ EOP [ OPD 1 )
READ: UNKNOWN
TO: Carole A. Parmelee ( CN=Carole A. Parmelee/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
TO: Dawn L. Smalls ( CN=Dawn L. Smalls/OU=WHO/O=EOP @ EOP [ WHO 1 )
READ: UNKNOWN
Records Management ( Records Management @ EOP [ UNKNOWN 1 )
�,ARMS Email System
READ: UNKNOWN
TEXT:
The small Legislative Strategy group will meet Monday in Erskine's office
at 4:00 a.m.
in Erskine's office.
Once again, only the following individuals:
Legislative Strategy
Erskine Bowles
John Podesta
Sylvia Mathews
Rahm Emanuel
Doug Sosnik
Paul Begala
Larry Stein
Ron Klain
Gene Sperlin
Bruce Reed
Sandy Berger (Mara Rudman)
Bob Rubin
Frank Raines
Jack Lew
Page 2 of 2
�ARMS Email System
RECORD TYPE: PRESIDENTIAL
Page 1 of 1
(NOTES MAIL)
CREATOR: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP [ WHO 1 )
CREATION DATE/TIME: 9-APR-1998 10:03:07.00
SUBJECT:
TO: ELENA (Pager) #KAGAN ( ELENA (Pager)
READ: UNKNOWN
TEXT:
Thurm is holding on 65584
#KAGAN [ UNKNOWN 1 )
�·
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RECORD TYPE: PRESIDENTIAL
Page 1 of 1
(NOTES MAIL)
CREATOR: Leanne A. Shimabukuro ( CN=Leanne A. Shimabukuro/OU=OPD/O=EOP [ OPD ] )
CREATION DATE/TIME: 9-APR-1998 21:16:19.00
SUBJECT:
draft Q&A on the school crime study
TO: Elena Kagan ( CN=Elena Kagan/OU=OPD/O=EOP @ EOP [ OPD ] )
READ:UNKNOWN
TO: Michelle Crisci ( CN=Michelle Crisci/OU=WHO/O=EOP @ EOP [ WHO ] )
READ: UNKNOWN
CC: Jose Cerda III ( CN=Jose Cerda III/OU=OPD/O=EOP @ EOP [ OPD ] )
READ: UNKNOWN
CC: Laura Emmett ( CN=Laura Emmett/OU=WHO/O=EOP @ EOP [ WHO]
READ: UNKNOWN
)
TEXT:
As noted by Jose', this is meant to be a little more general, and doesn't
get into too much detail on the findings of the report.
Thanks,
Leanne
==================== ATTACHMENT
1 ====================
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0 00:00:00.00
TEXT:
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The following is a HEX DUMP:
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School Crime
Questions and Answers
April 13, 1998
School Crime Report
. Q.
A.
The report released by the Justice and Education Departments this weekend
contains some troubling findings about crime in schools: a doubling of gangs,
increased availability of drugs, and the presence of guns. How does the
Administration propose to address these serious problems?
First of all, it should be noted that the report found little or no change in the overall level
of school crime. The overall level of crime in schools in 1995 was similar to that in 1989
(14.6% versus 14.5%). Violent crimes increased slightly, and property crimes decreased
slightly.
The report does confirm that some of our schools continue to have serious problems
involving gangs, guns, and drugs. That is why President Clinton and his Administration
have fought to keep our schools safe and reduce youth crime and violence. [To this end,
the Education Department will be making $5 million available from the Safe and
Drug-Free School program to develop innovative strategies to reduce drug use, and
violence, and prevent weapons from entering our schools.]
But clearly, the problems raised by this report, and the broader problems of gangs and
juvenile crime require a comprehensive strategy and significant, targeted resources. That
is why the President has repeatedly called on Congress to enact key components of his
Anti-Gang and Youth Violence Strategy, including:
- $255 million for juvenile crime legislation to help cities hire more prosecutors
and probation officers, establish special court programs and generally implement
comprehensive youth violence strategies like Boston's;
- $200 million to provide a five-fold increase in funding for after school programs
to help keep kids in school -- and supervised by responsible adults that can teach
them right from wrong -- between 3 and 8 p.m. when most violent youth crimes
are committed;
- $195 million for a national youth anti-drug media campaign that teaches kids
about the dangers of drugs;
- $50 million to expand the Safe and Drug-Free Schools Program by hiring drug
and violence prevention experts to help schools reduce violence and drug use; and
- $28 million to hire 162 new ATF agents and expand the President's Youth
�Crime Gun Interdiction Initiative to help identify and crack down on illegal gun
traffickers.
'Q:
The increases in gangs and drug availability occured under this Administration's
watch. What has the Administration done to date to promote school safety and
help reduce violence in and near our schools? Has the Administration paid enough
attention to this issue?
A:
Absolutely. While we have proposed comprehensive juvenile crime and youth violence
legislation to the Congress, school safety has been a priority since the start of this
Administration. Some of the important steps we have taken include:
Improving Safe and Drug Free Schools -- In 1994, we expanded the Drug-Free
Schools Program to include security and violence prevention as key parts of the program.
Now, the new Safe and Drug-Free Schools Program provides support for violence and
drug prevention programs to 97 of the nation's school districts, and helps keep violence,
drugs and alcohol away from students and out of schools.
Enforcing Zero Tolerance for Guns and Other Weapons in Schools -- President Clinton
signed into law the Gun-Free Schools Act and issued a directive requiring all schools that
receive federal funds to enforce "zero tolerance" for guns. If a student brings a gun to
school, that student will be expelled for a year. Now, every state in the nation has now
passed a tough "zero tolerance" policies, and an estimated 6,000 students have been
expelled for bringing guns to schools.
Encouraging Schools and Localities to Promote Discipline -- Studies show that schools
with serious discipline problems are more likely to have serious crime problems. That is
why-this Administration has encouraged innovative policies that promote discipline and
respect in our schools. We have distributed guidelines and studies on successful efforts by
communities to require school uniforms, enforce curfews, and crack down on truancy.
Keeping Handguns Out of the Hands of Our Children -- As part of the 1994 Crime Act, the
President signed into law the Youth Handgun Safety Act that makes it a federal offense to
transfer a handgun to a juvenile, or for a juvenile under the age of 18 to possess a
handgun or handgun ammunition in most circumstances. And to make sure adults
. complied, last year we required all federal gun dealers to post signs and issue written
notices about the provisions of this law.
Jonesboro
Q.
How do the findings of this study relate to what recently happened in
Jonesboro?
A.
The study does not directly relate to the Jonesboro incident -- particularly since that type
�·
"
of incident is extremely rare. The study does provide some useful information on the
level of overall crime, street gangs, guns, and drug availability in nonmetropolitan area
schools, such as Jonesboro. The report indicates that in the two years studied (1989 and
1995), students living in nonmetropolitan areas reported a slight decrease in the
availability of drugs (65.7% versus 64.5%, respectively), a small increase in violent crime
(2.9% versus 3.5%), and a pretty significant increase in the presence of street gangs
(7.8% versus 19.9%).
Few students reported guns in schools. In 1995, no students in nonmetropolitan areas
surveyed reported taking a gun to school; 4.8% of students reported seeing a student with
a gun at school; and 11.1 % reported knowing a student who brought a gun to school. It
should be noted that all of these levels are lower than the levels reported by students
living in suburbs and central cities.
Vouchers
Q:
If these findings show that crime in public schools is signi/icandy higher than in
private schools -- and increasing-- why shouldn't vouchers given to the children in
these unsafe schools to allow them to go to the private school of their choice?
A:
We must continue to invest and strengthen our nation's public schools. This
means reducing class size, raising academic standards, modernizing our
schools, expanding after-school programs, and connecting schools to the
Internet so that all of our children can get the education they need and
deserve. Vouchers would drain resources from our nation's public
schools --schools that are attended by 90% of our children --to subsidize
private schools.
The right way to help children in failing or unsafe schools isn't to drain those
schools of resources --it is to take drastic actions to fix and turn around the
entire school for the benefit of all of the children in the school. We owe it
to our children to preserve this nation's time-honored commitment to public
education and our commitment to provide a good education to all of our
children.
�
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
A name given to the resource
Elena Kagan
Description
An account of the resource
<div>
<p>Elena Kagan worked as Associate White House Counsel from 1995-1996 and Deputy Assistant to the President for Domestic Policy and Deputy Director of the Domestic Policy Council (DPC) from 1997-1999.</p>
<p>During her work at the White House Justice Kagan worked on many topics including, but not limited to: AIDS, budget appropriations, campaign finance reform, education, health, labor, race, tobacco, Native Americans, and welfare.</p>
<p>In 1999 President Clinton nominated Kagan to the U.S. District Court of Appeals, no hearing was ever scheduled and she was thereby never confirmed.</p>
<p>Note: These records were made available in response to a <a href="http://clinton.presidentiallibraries.us/freedom-of-information-act-requests">Freedom of Information Act (FOIA)</a> request, FOIA 2009-1006-F. This collection contains both records created by Elena Kagan and records concerning Elena Kagan. </p>
<p><strong>Descriptions of the Sub Collections:</strong></p>
<ul><li><strong><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=70&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=Elena+Kagan%27s+White+House+Counsel+Files&range=&collection=&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">White House Counsel Files</a></strong><br /> These records consist of files created and received by Elena Kagan when she served as Associate Counsel to President Clinton from 1995 to 1996. The files include but are not limited to records concerning Amtrak, campaign finance reform, gaming/gambling (especially as it relates to Native Americans), timber, regulatory reform, and welfare. The records include memoranda, notes, correspondence, articles, reports, executive orders, bills, and directives.</li>
<li><strong><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=70&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=Elena+Kagan%27s+Domestic+Policy+Council+Files&range=&collection=&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">Domestic Policy Council Files</a></strong><br />These records contain files created and received by Elena Kagan when she served as Deputy Assistant to the President for Domestic Policy and Deputy Director of the Domestic Policy Council (DPC) from 1997-1999. The files include records concerning domestic policy topics such as AIDS, budget appropriations, campaign finance reform, education, health, labor, race, tobacco, and welfare. The records include memoranda, correspondence, articles, and reports.</li>
<li><strong><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=70&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=White+House+Staff+%26+Office+Files+re+Elena+Kagan&range=&collection=&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">White House Staff Files re Elena Kagan</a></strong><br />These records are compiled from a variety of staff office files including the Chief of Staff, Personnel, Office of First Lady, Counsel, and DPC and include correspondence, memorandum, forms, and reports all concerning or having to do with Elena Kagan.</li>
<li><strong><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=70&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=White+House+Office+of+Records+Management+Files+re+Elena+Kagan&range=&collection=&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">White House Office of Records Management Files (WHORM)</a></strong><br />These records are from the White House Office of Records Management (WHORM) subject file series. The Clinton Presidential Library inherited a document-level index maintained by WHORM during the Clinton Administration which tracked some incoming correspondence and other documents as they were circulated throughout the White House and filed by WHORM. The records contain files created and received by Elena Kagan that were tracked by the WHORM Subject File index. The files include records related to a variety of topics such as memoranda, correspondence, and Domestic Policy Council weekly reports. The records are tracked by an alpha/numeric code, and are listed as such.</li>
<li><strong><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=70&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=Elena+Kagan%27s+1999+Nomination+to+U.S.+Court+of+Appeals&range=&collection=&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">Elena Kagan's 1999 Nomination to U.S. Court of Appeals</a></strong><br />After serving as the Deputy Director of the Domestic Policy Council, Elena Kagan was nominated to serve on the U.S. Appeals Court for the District of Columbia (D.C. Circuit) in1999. Her nomination expired in 2000 without Senate action. The files in this opening contain records from the White House Staff and Office Files, Counsel’s Office and Presidential Personnel, concerning her nomination. The records consist of Senate Judiciary Committee questionnaires, correspondence, law review files, news articles, briefs, and press briefings.</li>
<li><strong><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=70&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=Email+Received+by+Elena+Kagan&range=&collection=&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">Email Received by Elena Kagan</a></strong><br />These records consist of email received by Elena Kagan during her time as Associate White House Counsel from 1995-1996 and Deputy Assistant to the President for Domestic Policy and Deputy Director of the Domestic Policy Council (DPC) from 1997-1999. In addition to the email proper, these messages include forwards, reply chains, and attachments. The attached documents include notes, memorandum, articles, reports, executive orders, bills, and directives. These email concern a myriad of topics including but not limited to Amtrak, campaign finance reform, gaming/gambling (especially as it relates to Native Americans), timber, regulatory reform, welfare and domestic policy topics such as AIDS, budget appropriations, education, health, labor, race, and tobacco.</li>
<li><strong><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=70&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=Email+Sent+by+Elena+Kagan&range=&collection=&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">Email Sent by Elena Kagan</a></strong><br />These records consist of email sent by Elena Kagan during her time as Associate White House Counsel from 1995-1996 and Deputy Assistant to the President for Domestic Policy and Deputy Director of the Domestic Policy Council (DPC) from 1997-1999. In addition to the email proper, these messages include forwards, reply chains, and attachments. The attached documents include notes, memorandum, articles, reports, executive orders, bills, and directives. These email concern a myriad of topics including but not limited to Amtrak, campaign finance reform, gaming/gambling (especially as it relates to Native Americans), timber, regulatory reform, welfare and domestic policy topics such as AIDS, budget appropriations, education, health, labor, race, and tobacco.</li>
<li><strong><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=70&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=Elena+Kagan%27s+Records+re+Native+Americans&range=&collection=&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">Elena Kagan's Records re Native Americans</a></strong><br />These records were created or received by Elena Kagan during her service as Deputy Assistant to the President for Domestic Policy and Deputy Director of the Domestic Policy Council (1997-99). These ten folders were previously opened as part of a Freedom of Information Act request related to Native Americans (FOIA case <a href="http://www.clintonlibrary.gov/Documents/Finding-Aids/2006/2006-0197-F%28seg%203%29.pdf" target="_blank">2006-0197-F</a>).These records consist of memoranda, emails, reports, notes, and clippings.</li>
<li><strong><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=70&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=Additional+Materials+re+Elena+Kagan&range=&collection=&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">Additional Materials re Elena Kagan</a></strong><br />These records were taken from the files of Elena Kagan. They include memos to, from, and relating to Elena Kagan’s work on Domestic Policy issues. The records include some memos from Elena Kagan to President Clinton.</li>
<li><strong><a href="http://clinton.presidentiallibraries.us/items/browse?search=&advanced%5B0%5D%5Belement_id%5D=70&advanced%5B0%5D%5Btype%5D=is+exactly&advanced%5B0%5D%5Bterms%5D=Federal+Email+re+Elena+Kagan&range=&collection=&type=&user=&tags=&public=&featured=&exhibit=&submit_search=Search+for+items">Federal Email re Elena Kagan</a></strong><br />The federal email re: Elena Kagan consists of 114 email messages that were part of the Federal side of the Clinton White House. The email generally consists of summaries of meetings or telephone conversations in which Elena Kagan was a participant.</li>
</ul></div>
Identifier
An unambiguous reference to the resource within a given context
2009-1006-F
Provenance
A statement of any changes in ownership and custody of the resource since its creation that are significant for its authenticity, integrity, and interpretation. The statement may include a description of any changes successive custodians made to the resource.
Clinton Presidential Records: White House Staff and Office Files
Clinton Presidential Records: Automated Records Management System
Clinton Presidential Records: White House Staff and Office Files
Publisher
An entity responsible for making the resource available
Clinton Presidential Library & Museum
Format
The file format, physical medium, or dimensions of the resource
Adobe Acrobat Document
Creator
An entity primarily responsible for making the resource
Office of the Counsel to the President
Domestic Policy Council
First Lady's Office
White House Office of Records Management
Chief of Staff
White House Office for Women's Initiative and Outreach
Automated Records Management System
Tape Restoration Project
Security Office
Presidential Personnel
Date
A point or period of time associated with an event in the lifecycle of the resource
1995-1999
Extent
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2945 folders
Text
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Original Format
The type of object, such as painting, sculpture, paper, photo, and additional data
Magnetic Disk: Hard Drive
Dublin Core
The Dublin Core metadata element set is common to all Omeka records, including items, files, and collections. For more information see, http://dublincore.org/documents/dces/.
Title
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[04/08/1998 – 04/09/1998]
Creator
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WHO
Automated Records Management System
Identifier
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2009-1006-F
Is Part Of
A related resource in which the described resource is physically or logically included.
Email Received by Elena Kagan
<a href="http://catalog.archives.gov/id/574745" target="_blank">National Archives Catalog Description</a>
Provenance
A statement of any changes in ownership and custody of the resource since its creation that are significant for its authenticity, integrity, and interpretation. The statement may include a description of any changes successive custodians made to the resource.
Clinton Presidential Records: Automated Records Management System
Format
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Adobe Acrobat Document
Publisher
An entity responsible for making the resource available
Clinton Presidential Library & Museum
Medium
The material or physical carrier of the resource.
Reproduction-Reference
Date Created
Date of creation of the resource.
6/18/2010
Source
A related resource from which the described resource is derived
ARMS - Box 075 - Folder 003
574745