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Clinton Library
DOCUMENT NO.
AND TYPE
SUBJECT/TITLE
DATE
RESTRICTION
001. briefing paper
Meeting with Prince Bandar and CEOs (1 page)
02/16/1994
Pl/b(l)
002a. briefing
paper
Meeting with Prince Abd Al-Aziz bin Fahd, October 30, 1993 (2
pages)
10/29/1993
Pl/b(l)
002b. talking
points
Points to be Made for Meeting with Saudi Prince Abd Al-Aziz bin
Fahd (1 page)
ca.
10/29/1993
Pl/b(l), P5
002c. report
U.S. Government Report (1 page)
10/25/1993
Pl/b(l), P6/b(6)
COLLECTION:
Clinton Presidential Records
National Security Council
Press (Philip J. (PJ) Crowley)
OA/Box Number: 3106
FOLDER TITLE:
Saudi Arabia
2011-0516-S
kh641
RESTRICTION CODES
Presidential Records Act -144 U.S.C. 2204(a)|
Freedom of Information Act - |5 U.S.C. 552(b)]
PI
P2
P3
P4
b ( l ) National security classified information 1(b)(1) o f t h c FOIA]
b(2) Release would disclose internal personnel rules and practices of
an agency 1(b)(2) of the FOIA)
b(3) Release would violate a Federal statute 1(b)(3) of the FOIA]
b(4) Release would disclose trade secrets or confidential or financial
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personal privacy 1(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes 1(b)(7) of the F O I A ]
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financial institutions 1(b)(8) of the F O I A ]
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2201(3).
RR. Document will be reviewed upon request.
�NSC ExEC sec
t-kun
TO
£7705
p.01
SAUDI SALES ANNOUNCEMENT
Attendees
The President
Secretary Chri-stopher
Secretary Brown
Secretary Pena
Anthony Lake
Robert Rubin
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Prince Bandar, Saudi Ambassador to the U.S.
John McDonnell, Chairman and CEO, McDonnell Douglas Corporation
Frank Shrortz, Chairman and CEO, Boeing Company
oC.OV-qe.Tf&«- KourpiaS/ President of international Association of
^
Machinists and Aerospace workers
Caroline Forest, Vice President of United Auto workers
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Ruth Harkin, OPIC
Dick Morningstar, OPIC
Joan Spero, Department of State
Robert Pelletreau, Department of State
1
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Kenneth Brody, Exlm Bank
Ann Marie Emmet, Exlm Bank
Christopher Dorvel, Exlm Bank
Abdulaziz Nazir, Saudi Embassy
Rihab Massoud, Saudi Embassy
Fred Dutton, Saudi Embassy
Robert Hood, McDonnell Douglas, President Douglas A i r c r a f t
Thomas Culligan, McDonnell Douglas, Vice President
Thomas Gunn, McDonnell Douglas, Vice President, Business
Development
John Hayden, Boeing Company, Corporate Vice President
Thomas Tripp, Boeing Company, Director- Public A f f a i r s
Robert Washington, Boeing Company, Boeing Helicopters
Alexis Herman
Martin mdyk
Ellen Lalpson
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SAUDI SALES ANNOUNCEMENT
Attendees
The president
Secretary Christopher
Secretary Brown
Secretary Pena
Anthony Lake
Robert Rubin
Prince Bandar, Saudi Ambassador to the U.S.
John McDonnell, Chairman and CEO, McDonnell Douglas Corporation
Frank Shrontz, Chairman and CEO, Boeing Company
Gcov-qe.-^oe- Kourpias, President of international Association of
Machinists and Aerospace workers
Caroline Forest, Vice President of United Auto workers
Ruth Harkin, OPIC
Dick Morningstar, OPIC
Joan Spero, Department of State
Robert Pelletreau, Department of State
Kenneth Brody, Exlm Bank
Ann Marie Emmet, Exlm Bank
Christopher Dorvel, Exlm Bank
Abdulaziz Nazir, Saudi Embassy
Rihab Massoud, Saudi Embassy
Fred Dutton, Saudi Embassy
Robert Hood, McDonnell Douglas, President Douglas A i r c r a f t
Thomas Culligan, McDonnell Douglas, Vice President
Thomas Gunn, McDonnell Douglas, Vice President, Business
Development
John Hayden, Boeing Company, Corporate Vice President
Thomas Tripp, Boeing Company, Director, Public A f f a i r s
Robert Washington, Boeing Company, Boeing Helicopters
Alexis Herman
Martin indyk
Ellen Lalpson
T T L P.01
OA
�THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
February 16, 1994
REMARKS BY THE PRESIDENT
IN ANNOUNCEMENT REGARDING U.S. BUSINESS CONTRACTS
The Roosevelt Room
10:12 A.M. EST
THE PRESIDENT: Thank you very much, Secretary Brown.
Ladies and gentlemen, i n t h i s Olympic season, we come here today to
announce a gold medal win for America's businesses and workers.
Last year the government of Saudi Arabia decided to find
replacement a i r c r a f t for i t s c i v i l i a n f l e e t of approximately 50
airplanes. Today, the Saudi Ambassador, Prince Bandar, has
o f f i c i a l l y informed me that King Fahd has decided to purchase the
entire replacement f l e e t from American companies — from Boeing and
McDonnell Douglas. The purchase w i l l be financed by the United
States Export-Import Bank. I t w i l l t o t a l almost $6 b i l l i o n and w i l l
support tens of thousands of American" jobs i n Washington, California,
Kansas, Missouri, Utah, Arkansas and several other states.
The purchase i s a vote of confidence i n American
quality, American workers and the competitiveness of our exports. As
Secretary Brown said, i t underlines the efforts that we have made,
from NAFTA; to GATT; to the APEC conference; to our national export
strategy in l i f t i n g export controls on many products which for many
years could not be sold abroad; to expand our markets; to reduce
trade b a r r i e r s ; to create good high-paying jobs i n America i n a
thriving and open world economy. I t proves again that we can
compete; we don't have to retreat.
The United States and Saudi Arabia have long enjoyed
close relations. W have especially strong commercial relations i n
e
the f i e l d of c i v i l aviation. With today's announcement, t h i s proud
t r a d i t i o n w i l l continue well into the next century. Close economic
t i e s complement the important p o l i t i c a l and strategic relationship
that we have and that we value greatly with Saudi Arabia.
Let me note that I have already spoken d i r e c t l y with
many members of Congress and governors and other state and local
o f f i c i a l s whose constituents w i l l benefit from t h i s sale. The
message I gave them i s simple: W worked hard on t h i s , and we w i l l
e
continue to work hard at home and abroad to help our people thrive i n
the global economy.
In closing, l e t me thank especially King Fahd, Prince
Bandar and the government of Saudi Arabia for t h i s decision;
Secretaries Brown, Christopher and Pena; Tony Lake, and others in the
White House, including Bob Rubin and Mr. McLarty, a l l of whom had
some role i n t h i s . W a l l spent a l o t of time over a long period.
e
On the sustained effort that was done i s another product of the
teamwork that we t r y to practice i n our administration.
Secretaries Brown, Christopher and Pena a l l personally
traveled to Riyadh i n part to emphasize the importance of t h i s sale
to our country. And I thank them especially for that.
MORE
�- 2 -
Let me also o f f e r my congratulations t o the management
and t o the employees of Boeing and McDonnell Douglas. Your hard work
r e a l l y made t h i s possible. We j u s t t r i e d t o b r i n g i t t o the surface.
America should be proud of t h i s day. And I hope t h i s day w i l l lead
us t o many others l i k e i t .
Thank you very much.
(Applause.)
* * * * *
Q
Mr. President, i t ' s been reported t h a t you
personally c a l l e d on King Fahd t o buy American-made a i r c r a f t .
I'm
wondering i f t h i s means t h a t y o u ' l l be t a k i n g a much more a c t i v e r o l e
i n drumming up business f o r U.S. firms? For instance, i n Vietnam,
since you've r e c e n t l y l i f t e d the trade embargo t h e r e , might you
encourage leaders i n t h a t country t o purchase U.S. a i r c r a f t ?
THE PRESIDENT: I t depends on what the f a c t s are i n any
case. I t h i n k you can say, f i r s t of a l l , t h a t the Secretary of
Commerce has showed an h i s t o r i c l e v e l of a c t i v i s m , not only i n t h i s
area but i n many others. The Secretary of State has done a
remarkable job i n a short period of time i n changing the c u l t u r e of
many of our embassies and g e t t i n g them i n country a f t e r country a f t e r
country much more involved i n t r y i n g t o promote commercial a c t i v i t i e s
and working w i t h the Commerce Department and others.
The Secretary of Transportation has, I t h i n k , focused on
the g l o b a l aspects of h i s job more than any of h i s predecessors t h a t
I can t h i n k o f . So I t h i n k what you could say i s t h a t t h i s
a d m i n i s t r a t i o n w i l l be aggressively involved i n t h i s k i n d of
endeavor. When I t h i n k i t i s appropriate and p o t e n t i a l l y h e l p f u l , I
don't mind asking f o r the business. But I t h i n k i t ' s something I
don't want t o l a y down a general r u l e of thumb on because I t h i n k i t
w i l l have t o be taken on a case by case basis.
Q
Mr. President, are you s t i l l contemplating more
sanctions against Japan, or can you r u l e t h a t out f o r now?
THE PRESIDENT: Well, the — ever since the t a l k s I had
w i t h Prime M i n i s t e r Hosokawa, we've been reviewing our options,
c o n s u l t i n g w i t h our f r i e n d s and t r y i n g t o assess what course we ought
to take. And I t h i n k sometime i n the next few days my economic team
— Mr. Rubin i s here — and our n a t i o n a l s e c u r i t y team w i l l come back
w i t h a set of options and recommendations t o me.
And then I ' l l have
something t o say about t h a t . That i s d i f f e r e n t from, of course, the
announcement which was made yesterday by Ambassador Kantor on the
c e l l u l a r telephone issue. That's an issue of longstanding
development.
Q
Mr. President and Prince Bandar, a c t u a l l y , does
t h i s emphasis on redoing the Saudi commercial a i r l i n e system, does i t
s o r t of represent a s h i f t i n p r i o r i t i e s and a s h i f t i n emphasis?
Does the Saudi government no longer f e e l as much of a m i l i t a r y t h r e a t
perhaps as i t d i d before and f e e l the need t o —
PRINCE BANDAR: No, j u s t means Saudi needs t o modernize
i t s f l e e t , that's a l l .
(Laughter.)
THE PRESIDENT: For those of you who don't know i t , the
Prince i s an accomplished p i l o t , t r a i n e d on American f i g h t e r s i n the
United States. And he j u s t wants t o always see them i n best and the
newest a i r p l a n e s . (Laughter). Thank you very much. (Applause.)
END
10:30
A.M.
EST
�THE WHITE HOUSE
Office of the Press Secretary
For Immediate Release
February 16, 1994
REMARKS BY THE PRESIDENT
IN ANNOUNCEMENT REGARDING U.S. BUSINESS CONTRACTS
The Roosevelt Room
10:12 A.M. EST
THE PRESIDENT: Thank you very much, Secretary Brown.
Ladies and gentlemen, i n t h i s Olympic season, we come here today to
announce a gold medal win for America's businesses and workers.
Last year the government of Saudi Arabia decided to find
replacement a i r c r a f t for i t s c i v i l i a n f l e e t of approximately 50
airplanes. Today, the Saudi Ambassador, Prince Bandar, has
o f f i c i a l l y informed me that King Fahd has decided to purchase the
entire replacement f l e e t from American companies — from Boeing and
McDonnell Douglas. The purchase w i l l be financed by the United
States Export-Import Bank. I t w i l l t o t a l almost $6 b i l l i o n and w i l l
support tens of thousands of American jobs i n Washington, California,
Kansas, Missouri, Utah, Arkansas and several other states.
The purchase i s a vote of confidence i n American
quality, American workers and the competitiveness of our exports. As
Secretary Brown said, i t underlines the efforts that we have made,
from NAFTA; to GATT; to the APEC conference; to our national export
strategy i n l i f t i n g export controls on many products which for many
years could not be sold abroad; to expand our markets; to reduce
trade b a r r i e r s ; to create good high-paying jobs in America in a
thriving and open world economy. I t proves again that we can
compete; we don't have to retreat.
The United States and Saudi Arabia have long enjoyed
close relations. W have especially strong commercial relations i n
e
the f i e l d of c i v i l aviation. With today's announcement, t h i s proud
t r a d i t i o n w i l l continue well into the next century. Close economic
t i e s complement the important p o l i t i c a l and strategic relationship
that we have and that we value greatly with Saudi Arabia.
Let me note that I have already spoken d i r e c t l y with
many members of Congress and governors and other state and local
o f f i c i a l s whose constituents w i l l benefit from t h i s sale. The
message I gave them i s simple: W worked hard on t h i s , and we w i l l
e
continue to work hard at home and abroad to help our people thrive in
the global economy.
In closing, l e t me thank especially King Fahd, Prince
Bandar and the government of Saudi Arabia for t h i s decision;
Secretaries Brown, Christopher and Pena; Tony Lake, and others in the
White House, including Bob Rubin and Mr. McLarty, a l l of whom had
some role i n t h i s . We a l l spent a l o t of time over a long period.
On the sustained effort that was done i s another product of the
teamwork that we t r y to practice i n our administration.
Secretaries Brown, Christopher and Pena a l l personally
traveled to Riyadh i n part to emphasize the importance of t h i s sale
to our country. And I thank them especially for that.
MORE
�- 2 -
Let me also o f f e r my congratulations t o the management
and t o the employees of Boeing and McDonnell Douglas. Your hard work
r e a l l y made t h i s possible. We j u s t t r i e d t o b r i n g i t t o the surface.
America should be proud of t h i s day. And I hope t h i s day w i l l lead
us t o many others l i k e i t .
Thank you very much.
(Applause.)
* * * * *
Q
Mr. President, i t ' s been reported t h a t you
personally c a l l e d on King Fahd t o buy American-made a i r c r a f t .
I'm
wondering i f t h i s means t h a t y o u ' l l be t a k i n g a much more a c t i v e r o l e
i n drumming up business f o r U.S. firms? For instance, i n Vietnam,
since you've r e c e n t l y l i f t e d the trade embargo there, might you
encourage leaders i n t h a t country t o purchase U.S. a i r c r a f t ?
THE PRESIDENT: I t depends on what the f a c t s are i n any
case. I t h i n k you can say, f i r s t of a l l , t h a t the Secretary of
Commerce has showed an h i s t o r i c l e v e l of a c t i v i s m , not only i n t h i s
area but i n many others. The Secretary of State has done a
remarkable job i n a short period of time i n changing the c u l t u r e of
many of our embassies and g e t t i n g them i n country a f t e r country a f t e r
country much more involved i n t r y i n g t o promote commercial a c t i v i t i e s
and working w i t h the Commerce Department and others.
The Secretary of Transportation has, I t h i n k , focused on
the g l o b a l aspects of h i s job more than any of h i s predecessors t h a t
I can t h i n k of. So I t h i n k what you could say i s t h a t t h i s
a d m i n i s t r a t i o n w i l l be aggressively involved i n t h i s k i n d of
endeavor. When I t h i n k i t i s appropriate and p o t e n t i a l l y h e l p f u l , I
don't mind asking f o r the business. But I t h i n k i t ' s something I
don't want t o l a y down a general r u l e of thumb on because I t h i n k i t
w i l l have t o be taken on a case by case basis.
Q
Mr. President, are you s t i l l contemplating more
sanctions against Japan, or can you r u l e t h a t out f o r now?
THE PRESIDENT: Well, the ~ ever since the t a l k s I had
w i t h Prime M i n i s t e r Hosokawa, we've been reviewing our options,
c o n s u l t i n g w i t h our f r i e n d s and t r y i n g t o assess what course we ought
to take. And I t h i n k sometime i n the next few days my economic team
— Mr. Rubin i s here — and our n a t i o n a l s e c u r i t y team w i l l come back
w i t h a set of options and recommendations t o me.
And then I ' l l have
something t o say about t h a t . That i s d i f f e r e n t from, of course, the
announcement which was made yesterday by Ambassador Kantor on the
c e l l u l a r telephone issue. That's an issue of longstanding
development.
Q
Mr. President and Prince Bandar, a c t u a l l y , does
t h i s emphasis on redoing the Saudi commercial a i r l i n e system, does i t
s o r t of represent a s h i f t i n p r i o r i t i e s and a s h i f t i n emphasis?
Does the Saudi government no longer f e e l as much of a m i l i t a r y t h r e a t
perhaps as i t d i d before and f e e l the need t o —
PRINCE BANDAR: No, j u s t means Saudi needs t o modernize
i t s f l e e t , that's a l l .
(Laughter.)
THE PRESIDENT: For those of you who don't know i t , the
Prince i s an accomplished p i l o t , t r a i n e d on American f i g h t e r s i n the
United States. And he j u s t wants t o always see them i n best and the
newest a i r p l a n e s . (Laughter). Thank you very much. (Applause.)
END
10:30 A.M.
EST
�THE WHITE HOUSE
O f f i c e o f the Press Secretary
For Immediate Release
February 16, 1994
PRESS BRIEFING
BY
SECRETARY OF COMMERCE RON B O N
RW
The B r i e f i n g Room
11:20 A.M. EST
SECRETARY BROWN: Well, obviously, as the President
said, t h i s has been a good day f o r American business and i n d u s t r y , a
good day f o r American workers, a good day f o r the American economy.
We've worked hard on i t f o r almost a year now, and obviously we're
very pleased w i t h the announcement t h a t was made today.
Q
Mr. Secretary, i s t h i s a payback f o r the Gulf war?
SECRETARY BROWN: No, not a t a l l . What i t represents i s
hard work on the p a r t o f American companies and the American
government. We've made a basic d e c i s i o n t h a t i f we're going t o
compete and win i n the g l o b a l marketplace, i t ' s going t o take a r e a l
partnership between business and i n d u s t r y .
We have been locked i n a time warp f o r several decades,
engaged i n an i d e o l o g i c a l debate about the r o l e o f government, while
our i n t e r n a t i o n a l competitors f i g u r e d t h a t out a long time ago.
That's why they're doing b e t t e r than they should be doing i n
i n t e r n a t i o n a l competition. And we're not doing as w e l l as we should
be doing. And so what t h i s demonstrates i s t h a t we're serious about
opening markets; we're serious about competing e f f e c t i v e l y ; we're
serious about working i n conjunction w i t h American business and
i n d u s t r y t o win those b a t t l e s .
Q
But the Ambassador said t h a t King Fahd was moved by
g e o p o l i t i c a l concerns. I s n ' t one o f the l a r g e ones —
SECRETARY BROWN: That was the Ambassador — y o u ' l l have
t o d i r e c t those questions t o the Saudis. And i t c e r t a i n l y wasn't a
p a r t o f our discussions —
Q
But you negotiated w i t h them.
SECRETARY BROWN: I d i d .
Q
How much was the American r o l e —
SECRETARY BROWN: I t was not a p a r t o f the discussion
t h a t we had.
Q
Can you characterize the d i f f e r e n c e s between the
f i n a n c i n g arrangement t h a t the Airbus I n d u s t r i e s o f f e r e d the Saudis,
and what the United States o f f e r e d —
SECRETARY BROWN: I r e a l l y can't. I do know t h a t the
Export-Import Bank, under the leadership o f Ken Brody, stepped up t o
the p l a t e e a r l y i n t h i s game t o i n d i c a t e t h a t they would be an
important p a r t o f t h i s t r a n s a c t i o n , but I r e a l l y can't speak t o the
f i n a n c i n g o f Airbus.
MR
OE
�- 2 -
Q
But today there were no plane sales announced,
there were no — breakdown o f who was going t o buy what or —
SECRETARY BROWN: This i s not — the issue i s not
f i n a n c i n g , t h e issue i s r e a l l y d e l i v e r y dates, the sequencing o f the
a i r c r a f t , those kinds o f discussions. This i s not a set o f
n e g o t i a t i o n s t h a t might break down. These are the f i n a l d e t a i l s of a
deal t h a t has already been announced.
Q
But what has been negotiated f o r the past year? I
mean, s p e c i f i c a l l y what was agreed to?
SECRETARY BROWN: Well, several t h i n g s . One, the number
of a i r c r a f t t h a t would be bought. The Saudis had t o make a decision
about who they would buy them from — whether they'd get them a l l
from Boeing or a l l from McDonnell Douglas or a l l from Airbus — those
kinds o f judgments were made. They looked a t q u a l i t y o f product.
They looked a t s e r v i c i n g arrangements. They made a judgment t h a t
American products were the highest q u a l i t y and t h e r e f o r e they made
the decision t h a t they made today.
Q
But was f i n a n c i n g p a r t of the negotiations?
SECRETARY BROWN: Yes, i t c e r t a i n l y — f i n a n c i n g
discussions — but my understanding i s f i n a n c i n g was not a major
f a c t o r i n the d e c i s i o n .
Q
Have they made a decision on the breakdown between
Boeing and McDonnell Douglas — they're j u s t not i t y e t , or i s t h a t
s t i l l being dickered on?
SECRETARY BROWN: I believe t h a t t h a t decision has been
made but has not been announced.
Q
Do you know what types o f planes they're buying?
Any s p e c i f i c s on —
SECRETARY BROWN: They're buying planes i n the f u l l
range o f sizes t h a t a commercial f l e e t would need. And I guess the
best answer t o t h a t question i s t o look a t what Saudi presently has
and look a t what they are going t o r e p l e n i s h . So i t ' l l be a f u l l
range o f a i r c r a f t .
Q
Do you have any concerns about the cash flow and
the —
SECRETARY BROWN: None.
Q
— the a b i l i t y of the Saudis t o a c t u a l l y --
SECRETARY BROWN: None whatsoever.
Q
— t h e i r terms of t h i s deal?
SECRETARY BROWN: None whatsoever.
Q
And why not?
What have they —
SECRETARY BROWN: Well, f i r s t o f a l l , t h i s i s a
t r a n s a c t i o n t h a t ' l l take place over a series o f years. The
leadership o f the Saudi government has taken appropriate steps — a
reduction o f the budget — 20 percent across the board, a l l
departments — a very responsible action. We have f u l l confidence i n
the Saudi economy and t h e i r a b i l i t y t o meet t h e i r o b l i g a t i o n s .
Q
Are you concerned about r e t a l i a t i o n from European
i n d u s t r i a l i s t s since one p o i n t they were t a l k i n g about s p l i t t i n g the
order between U.S. and European firms?
MR
OE
�- 3-
SECRETARY BROWN: Retaliation because we won and they
lost? No, I can't imagine — I can't imagine that that would be the
case. I assume -T but we're happy that they're not happy. But we
deserved to win. W did win. And I can't r e a l l y speak to the
e
psychological impact that's had on our competitors.
Q
What i s the Export-Import Bank's role?
What's the
financing —
SECRETARY BROWN: In financing.
Q
And what w i l l they do?
SECRETARY BROWN: Well, they are determining that role.
They've indicated that they could handle the f u l l l e v e l of t h i s
transaction. The transaction i n i t i a l l y was talked about in terms of
a $6 b i l l i o n to $9 b i l l i o n . I t looks l i k e i t ' s somewhere in the area
of $6 b i l l i o n .
Q
But i s there role s t r i c t l y loan guarantees or —
SECRETARY BROWN: Yes, t h e i r —
Q
— what exactly do they do?
SECRETARY BROWN: — typical role i s loan guarantees.
Q
So they w i l l guarantee the loan —
SECRETARY BROWN: I t frankly depends on Boeing and
McDonnell Douglas, what their needs are in order to complete this
transaction. And since the s p l i t has not been announced, i t ' s
impossible to determine exactly what .role Ex-Im w i l l play. Ex-Im was
prepared to play a f u l l and complete role in guaranteeing loans for
the f u l l deal.
Q
Are you suggesting that the s p l i t has been
negotiated, because the other people have suggested that that's s t i l l
to be negotiated?
SECRETARY BROWN: My understand i s that they have made a
determination of the s p l i t ; they're not prepared to announce that as
yet.
Q
be about 50-50?
Would you expect i t to be or — can we expect i t to
SECRETARY BROWN: I can't comment on that. And the fact
that you had the top executives of both companies here, which
certainly indicate that they both get substantial orders from this
transaction.
Q
Mr. Secretary, what kind of message do you want to
be sending to U.S. exporters by talking about a more active
government role? Can anybody sort of walk into your office these
days and expect you to go to bat for them?
SECRETARY BROWN: Well, we've been doing that for the
l a s t year, through the work of the Trade Promotion Coordinating
Committee, which I had the privilege to chair. We've brought
together the 19 agencies of the federal government involved in
promoting exports. And through that work we've come up with a
national export strategy, which the President has approved and which
we have embarked on. I t ' s a new strategy for the United States. The
United States government has generally not been proactive in helping
American business and industry compete in t h i s tough global
marketplace. W have found that t h i s i s not a one-way street. Not
e
MORE
�- 4-
only are we reaching out to the business community indicating that
this i s pro-business administration.^ We're pro-growth, we're proworker, and we've got to prove i t . W think t h i s i s an important
e
vehicle for demonstrating our commitment to promoting exports. The
fact i s that every b i l l i o n dollar increase in exports means 2 0,000
new jobs for the American people. I t seems l i k e a pretty good way
for an administration to spend i t s time.
Q
Secretary Brown, along those l i n e s , has the
President determined to restore the Super 301 — (inaudible) — i f
not, when i s i t —
SECRETARY BROWN: W have indicated that we are looking
e
at a l l options. We're very d i s s a t i s f i e d with our present imbalance
of trade with Japan. W have taken an aggressive, proactive approach
e
since t h i s administration came to office. We have said i t would be
unacceptable and irresponsible for us to s i t on our hands and do
nothing in the face of a $60 b i l l i o n trade d e f i c i t with one country.
And the fact i s that that trade d e f i c i t i s increasing rather than
narrowing. So we have indicated that we want a results-oriented
approach. W want measurable, monitorable results.
e
And we continue
to press in that direction.
Q
No decision on Super 301
—
SECRETARY BROWN: No decision on anything yet. We're
reviewing, as the President has said, a f u l l range of options. So
everything i s on the table.
Q
How many jobs s p e c i f i c a l l y w i l l the $6 b i l l i o n
Saudi sale create — new jobs, old jobs? And where w i l l they mostly
be? Can you break them down —
SECRETARY BROWN: W believe i t w i l l create at least
e
100,000 jobs. Now, whether they're new or old depends on what the
companies do with other sales. For example, j u s t yesterday
Kazakhstan announced the purchased of s i x Boeing a i r c r a f t . I f a l l
things were equal, t h i s would create 100,000 new jobs. Obviously i f
the company continues to do business elsewhere, you have to make
judgments about how many new jobs those additional sales create.
Q
aerospace or —
— aerospace or in a l l f i e l d s ?
I s that just
SECRETARY BROWN: No, that's j u s t in the aerospace
industry.
Q
There have been a l o t of numbers thrown around —
20,000 jobs for every $1 b i l l i o n in exports; 10,000 jobs for every
b i l l i o n — for every b i l l i o n dollars in planes. How do you quantify
these jobs?
SECRETARY BROWN: No, no — a l o t of numbers haven't
been thrown around -Q
By other o f f i c i a l s —
SECRETARY BROWN: We've said $1 b i l l i o n increase in
exports equals 20,000 jobs. I f , in fact, t h i s i s a $5 b i l l i o n
transaction, that's 100,000 jobs. I t i s l i k e l y that i t might be a $6
b i l l i o n transaction.
Q
I t i s a $5 b i l l i o n or a $6 b i l l i o n ?
SECRETARY BROWN: I t ' s $5 b i l l i o n to $6 b i l l i o n .
Q
I t ' s $5 b i l l i o n to $6 b i l l i o n , not $6 b i l l i o n ?
MORE
�- 5-
SECRETARY BROWN: Until they complete the time of
delivery, the s p e c i f i c a i r c r a f t that they're going to be purchasing,
and when those a i r c r a f t w i l l be delivered, you won't know the exact
cost. Financing has some impact on the cost. So cost might be
different i f you receive a plane t h i s year than i f you receive i t in
1989.
So we believe i t ' s going to be $6 b i l l i o n . We said $5 b i l l i o n
to $6 b i l l i o n e a r l i e r . I t might be more than that, depending on
delivery date.
Q
Secretary Brown, I'd l i k e to go back to Japan for
j u s t a minute. Some trade analysts say that by taking the f i r s t
steps toward imposing sanctions the administration could trigger a
trade war that could wind up hurting American companies as much or
more than Japan's. Are you concerned about that, and are you going
to be taking steps —
SECRETARY BROWN: Certainly — we're not interested in a
fight j u s t to have a fight. But we are committed — we are resolute
in our desire to open markets that are closed to American products
and services. The fact i s that the Japanese market i s not an open
market. There has been some modest progress made j u s t as there was
some modest progress made by Motorola — notwithstanding the decision
that was announced by Ambassador Kantor yesterday — but much of that
market i s s t i l l closed to American products and services. We believe
we have to do everything we can to remove those b a r r i e r s . I f
American products and goods and services are the products of choice
in every country in the world but one, common sense ought to t e l l us
that there i s something wrong in that marketplace, and we're going to
do everything we can to correct that situation.
Q
You don't believe that t h i s i s putting American
firms at r i s k in any way?
SECRETARY BROWN: Well, that's one of the reasons why we
evaluate our options — to make a determination about how, in fact,
we open markets and not do damage to the American economy. That's
one of the things you evaluate in a l l of these decisions.
And
Q
What i s the total number of planes in the sale?
i s there also a commitment to buy'U.S-made engines?
SECRETARY BROWN: This would include the commitment to
engines, yes. W believe the number i s about 50. And those engines
e
are p r i n c i p a l l y Pratt and Whitney and G.E. engines.
Q
The Saudis have been concerned about f l y i n g twoengine planes across the water. Was that a major part — and I think
the United States government s t i l l hasn't c e r t i f i e d them to f l y over
open water. Did that come into the negotiations at a l l ?
SECRETARY BROWN: I never heard the discussion in
relationship to flying over water. I did hear discussions about two
engines versus three or four, but not in reference to your question
about f l y i n g over water.
President?
Q
What was the personal contact or involvement of the
Did he speak to the King?
SECRETARY BROWN: One telephone conversation with the
King. But he's been involved — I have talked with the President
many.times on t h i s issue. He was very familiar with everything that
we were doing. I reported to him both before my — each of my trips
to Saudi Arabia and upon my return. This has been a transaction that
he's been very interested in.
Q
And when was that conversation with the King?
SECRETARY BROWN: I don't know the timing of the
conversation — several months ago.
I t was in between my two t r i p s .
So my guess i s i t was"-probably l a s t f a l l .
�- 6-
Q
There also have been l e t t e r s — the President — at
that level?
SECRETARY BROWN: No, there haven't been l e t t e r s . There
have been — there have been l e t t e r s accompanying me on each of my
t r i p s to Saudi Arabia to the King that involved the a i r c r a f t sale as
well as other commercial matters.
Q
Does t h i s presage any involvement with other
industries down the road? And i f so, where should we be looking for
SECRETARY BROWN: That involvement i s ongoing. That
involvement i s ongoing. As part of my v i s i t s to Saudi Arabia, I've
also talked about telecommunications and the fact that they're about
to put i n 1.5 million new l i n e s . That would be probably a $4 b i l l i o n
transaction. I certainly would l i k e that to be AT&T and not our
foreign competitors.
So we're doing t h i s a l l over the world. We think i t i s
a very, very important focal point for the work of the Commerce
Department and t h i s entire administration, committed to economic
growth and job creation. And one way to do i t i s to increase United
States exports.
Q
But how does the Commerce Department or the
government decide whether to promote AT&T or some competitor to AT&T?
How do you get into the business of picking and choosing —
SECRETARY BROWN: Oh, we don't. W don't. Just as we,
e
in t h i s case, we didn't promote McDonnell Douglas or Boeing, we
promoted them both. W were i n there standing with American business
e
and industry. I f there are two or three or four American companies
competing against foreign competitors, we're going to support a l l of
the American companies that are competing. We're not going to choose
among, between American companies.
Q
Why do you think that despite the fact that
President Mitterrand went personally that they rejected the French?
SECRETARY BROWN: I think they thought the American
products were better products. And I honestly believe that American
products are the best, that our industry and our workers are the best
and they produce the best products. The Saudis made that judgment,
too. Not only did President Mitterrand went, but Prime Major went,
the Germans were very involved. This was a very tough international
competition.
W won. We're certainly heartened by that victory. W
e
e
expect many more i n the future.
Thank you.
THE PRESS:
Thank you.
END
11:35 A.M. EST
�THE WHITE HOUSE
O f f i c e o f the Press Secretary
For Immediate Release
February 16, 1994
PRESS BRIEFING
BY
SECRETARY OF COMMERCE RON B O N
RW
The B r i e f i n g Room
11:20 A.M. EST
SECRETARY BROWN: Well, obviously, as the President
said, t h i s has been a good day f o r American business and i n d u s t r y , a
good day f o r American workers, a good day f o r the American economy.
We've worked hard on i t f o r almost a year now, and obviously we're
very pleased w i t h the announcement t h a t was made today.
Q
Mr. Secretary, i s t h i s a payback f o r the Gulf war?
SECRETARY BROWN: No, not a t a l l . What i t represents i s
hard work on the p a r t o f American companies and the American
government. We've made a basic decision t h a t i f we're going t o
compete and win i n the g l o b a l marketplace, i t ' s going t o take a r e a l
partnership between business and i n d u s t r y .
We have been locked i n a time warp f o r several decades,
engaged i n an i d e o l o g i c a l debate about the r o l e o f government, while
our i n t e r n a t i o n a l competitors f i g u r e d t h a t out a long time ago.
That's why they're doing b e t t e r than they should be doing i n
i n t e r n a t i o n a l competition. And we're not doing as w e l l as we should
be doing. And so what t h i s demonstrates i s t h a t we're serious about
opening markets; we're serious about competing e f f e c t i v e l y ; we're
serious about working i n conjunction w i t h American business and
i n d u s t r y t o win those b a t t l e s .
Q
But the Ambassador said t h a t King Fahd was moved by
g e o p o l i t i c a l concerns.
I s n ' t one of the large ones —
SECRETARY BROWN: That was the Ambassador — y o u ' l l have
t o d i r e c t those questions t o the Saudis. And i t c e r t a i n l y wasn't a
p a r t o f our discussions —
Q
But you negotiated w i t h them.
SECRETARY BROWN: I d i d .
Q
How much was the American r o l e —
SECRETARY BROWN: I t was not a p a r t of the discussion
t h a t we had.
Q
Can you characterize the d i f f e r e n c e s between the
f i n a n c i n g arrangement t h a t the Airbus I n d u s t r i e s o f f e r e d the Saudis,
and what the United States o f f e r e d —
SECRETARY BROWN: I r e a l l y can't. I do know t h a t the
Export-Import Bank, under the leadership of Ken Brody, stepped up t o
the p l a t e e a r l y i n t h i s game t o i n d i c a t e t h a t they would be an
important p a r t of t h i s t r a n s a c t i o n , but I r e a l l y can't speak t o the
f i n a n c i n g o f Airbus.
MR
OE
�- 2-
Q
But today there were no plane sales announced,
there were no — breakdown of who was going to buy what or —
SECRETARY BROWN: This i s not — the issue i s not
financing, the issue i s r e a l l y delivery dates, the sequencing of the
a i r c r a f t , those kinds of discussions.. This i s not a set of
negotiations that might break down. These are the f i n a l details of a
deal that has already been announced.
Q
But what has been negotiated for the past year? I
mean, s p e c i f i c a l l y what was agreed to?
SECRETARY BROWN: Well, several things. One, the number
of a i r c r a f t that would be bought. The Saudis had to make a decision
about who they would buy them from — whether they'd get them a l l
from Boeing or a l l from McDonnell Douglas or a l l from Airbus — those
kinds of judgments were made. They looked at quality of product.
They looked at servicing arrangements. They made a judgment that
American products were the highest quality and therefore they made
the decision that they made today.
Q
But was financing part of the negotiations?
SECRETARY BROWN: Yes, i t certainly — f i n a n c i n g
discussions — but my understanding i s financing was not a major
factor i n the decision.
Q
Have they made a decision on the breakdown between
Boeing and McDonnell Douglas — they're j u s t not i t yet, or i s that
s t i l l being dickered on?
SECRETARY BROWN: I believe that that decision has been
made but has not been announced.
Q
Do you know what types of planes they're buying?
Any s p e c i f i c s on —
SECRETARY BROWN: They're buying planes i n the f u l l
range of sizes that a commercial f l e e t would need. And I guess the
best answer to that question i s to look at what Saudi presently has
and look at what they are going to replenish. So i t ' l l be a f u l l
range of a i r c r a f t .
Q
Do you have any concerns about the cash flow and
the —
SECRETARY BROWN: None..
Q
— the a b i l i t y of the Saudis to actually —
SECRETARY BROWN: None whatsoever.
Q
— their terms of t h i s deal?
SECRETARY BROWN: None whatsoever.
Q
And why not? What have they —
SECRETARY BROWN: Well, f i r s t of a l l , t h i s i s a
transaction t h a t ' l l take place over a series of years. The
leadership of the Saudi government has taken appropriate steps — a
reduction of the budget — 20 percent across the board, a l l
departments — a very responsible action. W have f u l l confidence in
e
the Saudi economy and their a b i l i t y to meet t h e i r obligations.
Q
Are you concerned about r e t a l i a t i o n from European
i n d u s t r i a l i s t s since one point they were talking about s p l i t t i n g the
order between U.S. and European firms?
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�- 3 -
SECRETARY BROWN: R e t a l i a t i o n because we won and they
l o s t ? No, I can't imagine — I can't imagine t h a t t h a t would be the
case. I assume — but we're happy t h a t they're not happy. But we
deserved t o win. We d i d win. And I can't r e a l l y speak t o the
psychological impact t h a t ' s had on our competitors.
Q
What i s the Export-Import Bank's role?
What's the
financing —
SECRETARY BROWN: I n f i n a n c i n g .
Q
And what w i l l they do?
SECRETARY BROWN: Well, they are determining t h a t r o l e .
They've i n d i c a t e d t h a t they could handle the f u l l l e v e l o f t h i s
t r a n s a c t i o n . The t r a n s a c t i o n i n i t i a l l y was t a l k e d about i n terms o f
a $6 b i l l i o n t o $9 b i l l i o n . I t looks l i k e i t ' s somewhere i n the area
of $6 b i l l i o n .
Q
But i s there r o l e s t r i c t l y loan guarantees o r —
SECRETARY BROWN: Yes, t h e i r —
Q
— what exactly do they do?
SECRETARY BROWN: — t y p i c a l r o l e i s loan
Q
guarantees.
So they w i l l guarantee the loan —
SECRETARY BROWN: I t f r a n k l y depends on Boeing and
McDonnell Douglas, what t h e i r needs are i n order t o complete t h i s
t r a n s a c t i o n . And since the s p l i t has not been announced, i t ' s
impossible t o determine e x a c t l y what r o l e Ex-Im w i l l play. Ex-Im was
prepared t o play a f u l l and complete r o l e i n guaranteeing loans f o r
the f u l l deal.
Q
Are you suggesting t h a t the s p l i t has been
negotiated, because the other people have suggested t h a t t h a t ' s s t i l l
to be negotiated?
SECRETARY BROWN: My understand i s t h a t they have made a
determination o f the s p l i t ; they're not prepared t o announce t h a t as
yet.
Q
be about 50-50?
Would you expect i t t o be o r — can we expect i t t o
SECRETARY BROWN: I can't comment on t h a t . And the f a c t
t h a t you had the top executives of both companies here, which
c e r t a i n l y i n d i c a t e t h a t they both get s u b s t a n t i a l orders from t h i s
transaction.
Q
Mr. Secretary, what kind of message do you want t o
be sending t o U.S. exporters by t a l k i n g about a more a c t i v e
government role? Can anybody s o r t of walk i n t o your o f f i c e these
days and expect you t o go t o bat f o r them?
SECRETARY BROWN: Well, we've been doing t h a t f o r the
l a s t year, through the work o f the Trade Promotion Coordinating
Committee, which I had the p r i v i l e g e t o c h a i r . We've brought
together the 19 agencies of the f e d e r a l government involved i n
promoting exports. And through t h a t work we've come up w i t h a
n a t i o n a l export s t r a t e g y , which the President has approved and which
we have embarked on. I t ' s a new s t r a t e g y f o r the United States. The
United States government has generally not been p r o a c t i v e i n helping
American business and i n d u s t r y compete i n t h i s tough g l o b a l
marketplace.
We have found t h a t t h i s i s not a one-way s t r e e t . Not
.
MORE
�- 4-
only are we reaching out to the business community indicating that
t h i s i s pro-business administration. . We're pro-growth, we're proworker, and we've got to prove i t . W think this i s an important
e
vehicle for demonstrating our commitment to promoting exports. The
fact i s that every b i l l i o n dollar increase in exports means 2 0,000
new jobs for the American people. I t seems l i k e a pretty good way
for an administration to spend i t s time.
Q
Secretary Brown, along those l i n e s , has the
President determined to restore the Super 3 01 — (inaudible) — i f
not, when i s i t —
SECRETARY BROWN: W have indicated that we are looking
e
at a l l options. We're very d i s s a t i s f i e d with our present imbalance
of trade with Japan. We have taken an aggressive, proactive approach
since t h i s administration came to office. We have said i t would be
unacceptable and irresponsible for us to s i t on our hands and do
nothing in the face of a $60 b i l l i o n trade d e f i c i t with one country.
And the fact i s that that trade d e f i c i t i s increasing rather than
narrowing. So we have indicated that we want a results-oriented
approach. W want measurable, monitorable r e s u l t s . And we continue
e
to press in that direction.
Q
No decision on Super 301
—
SECRETARY BROWN: No decision on anything yet. We're
reviewing, as the President has said, a f u l l range of options. So
everything i s on the table.
Q
How many jobs s p e c i f i c a l l y w i l l the $6 b i l l i o n
Saudi sale create — new jobs, old jobs? And where w i l l they mostly
be? Can you break them down —
SECRETARY BROWN: W believe i t w i l l create at least
e
100,000 jobs. Now, whether they're new or old depends on what the
companies do with other sales.
For example, j u s t yesterday
Kazakhstan announced the purchased of s i x Boeing a i r c r a f t . I f a l l
things were equal, this would create 100,000 new jobs. Obviously i f
the company-continues to do business elsewhere, you have to make
judgments about how many new jobs those additional sales create.
Q
aerospace or —
— aerospace or in a l l fields?
I s that just
SECRETARY BROWN: No, that's just in the aerospace
industry.
Q
There have been a l o t of numbers thrown around —
20,000 jobs for every $1 b i l l i o n in exports; 10,000 jobs for every
b i l l i o n — for every b i l l i o n dollars in planes. How do you quantify
these jobs?
SECRETARY BROWN: No, no — a l o t of numbers haven't
been thrown around —
Q
By other o f f i c i a l s —
SECRETARY BROWN: We've said $1 b i l l i o n increase in
exports equals 20,000 jobs. I f , in fact, t h i s i s a $5 b i l l i o n
transaction, that's 100,000 jobs. I t i s l i k e l y that i t might be a $6
b i l l i o n transaction.
Q
I t i s a $5 b i l l i o n or a $6 b i l l i o n ?
SECRETARY BROWN: I t ' s $5 b i l l i o n to $6 b i l l i o n .
Q
I t ' s $5 b i l l i o n to $6 b i l l i o n , not $6 b i l l i o n ?
MORE
�_ 5-
SECRETARY BROWN: Until they complete the time of
delivery, the s p e c i f i c a i r c r a f t that they're going to be purchasing,
and when those a i r c r a f t w i l l be delivered, you won't know the exact
cost. Financing has some impact on the cost. So cost might be
different i f you receive a plane t h i s year than i f you receive i t in
1989.
So we believe i t ' s going to be $6 b i l l i o n . W said $5 b i l l i o n
e
to $6 b i l l i o n e a r l i e r . I t might be more than that, depending on
delivery date.
Q
Secretary Brown, I'd l i k e to go back to Japan for
j u s t a minute. Some trade analysts say that by taking the f i r s t
steps toward imposing sanctions the administration could trigger a
trade war that could wind up hurting American companies as much or
more than Japan's. Are you concerned about that, and are you going
to be taking steps —
SECRETARY BROWN: Certainly — we're not interested in a
fight j u s t to have a fight. But we are committed — we are resolute
in our desire to open markets that are closed to American products
and services. The fact i s that the Japanese market i s not an open
market. There has been some modest progress made j u s t as there was
some modest progress made by Motorola — notwithstanding the decision
that was announced by Ambassador Kantor yesterday — but much of that
market i s s t i l l closed to American products and services. W believe
e
we have to do everything we can to remove those b a r r i e r s . I f
American products and goods and services are the products of choice
in every country in the world but one, common sense ought to t e l l us
that there i s something wrong in that marketplace, and we're going to
do everything we can to correct that situation.
Q
You don't believe that t h i s i s putting American
firms at r i s k in any way?
SECRETARY BROWN: Well, that's one of the reasons why we
evaluate our options — to make a determination about how, in fact,
we open markets and not do damage to the American economy. That's
one of the things you evaluate in a l l of these decisions.
And
Q
What i s the total number of planes in the sale?
i s there also a commitment to buy U.S-made engines?
SECRETARY BROWN: This would include the commitment to
engines, yes. W believe the number i s about 50. And those engines
e
are p r i n c i p a l l y Pratt and Whitney and G.E. engines.
Q
The Saudis have been concerned about f l y i n g twoengine planes across the water. Was that a major part — and I think
the United States government s t i l l hasn't c e r t i f i e d them to f l y over
open water. Did that come into the negotiations at a l l ?
SECRETARY BROWN: I never heard the discussion in
relationship to flying over water. I did hear discussions about two
engines versus three or four, but not in reference to your question
about f l y i n g over water.
President?
Q
What was the personal contact or involvement of the
Did he speak to the King?
SECRETARY BROWN: One telephone conversation with the
King. But he's been involved — I have talked with the President
many times on t h i s issue. He was very familiar with everything that
we were doing. I reported to him both before my — each of my t r i p s
to Saudi Arabia and upon my return. This has been a transaction that
he's been very interested in.
Q
And when was that conversation with the King?
SECRETARY BROWN: I don't know the timing of the
conversation — several months ago.
I t was in between my two t r i p s .
So my guess i s - i t was" probably l a s t f a l l .
�- 6-
Q
There also have been l e t t e r s — the President — at
that level?
SECRETARY BROWN: No, there haven't been l e t t e r s . There
have been — there have been l e t t e r s accompanying me on each of my
t r i p s to Saudi Arabia to the King that involved the a i r c r a f t sale as
well as other commercial matters.
Q
Does t h i s presage any involvement with other
industries down the road? And i f so, where should we be looking for
SECRETARY BROWN: That involvement i s ongoing. That
involvement i s ongoing. As part of my v i s i t s to Saudi Arabia, I've
also talked about telecommunications and the fact that they're about
to put i n 1.5 million new l i n e s . That would be probably a $4 b i l l i o n
transaction. I certainly would l i k e that to be AT&T and not our
foreign competitors.
So we're doing t h i s a l l over the world. W think i t i s
e
a very, very important focal point for the work of the Commerce
Department and t h i s entire administration, committed to economic
growth and job creation. And one way to do i t i s to increase United
States exports.
Q
But how does the Commerce Department or the
government decide whether to promote AT&T or some competitor to AT&T?
How do you get into the business of picking and choosing —
SECRETARY BROWN: Oh, we don't. W don't. Just as we,
e
in t h i s case, we didn't promote McDonnell Douglas or Boeing, we
promoted them both. W were i n there standing with American business
e
and industry. I f there are two or three or four American companies
competing against foreign competitors, we're going to support a l l of
the American companies that are competing. We're not going to choose
among, between American companies.
. Q
.
Why do you think that despite the fact that
President Mitterrand went personally that they rejected the French?
SECRETARY BROWN: I think they thought the American
products were better products. And I honestly believe that American
products are the best, that our industry and our workers are the best
and they produce the best products. The Saudis made that judgment,
too. Not only did President Mitterrand went, but Prime Major went,
the Germans were very involved. This was a very tough international
competition.
W won. We're certainly heartened by that victory. W
e
e
expect many more i n the future.
Thank you.
THE PRESS:
Thank you.
END
11:35 A.M. EST
�THE WHITE HOUSE
O f f i c e o f t h e Press S e c r e t a r y
For Immediate Release
February 16, 1994
FACT SHEET
SALE OF AMERICAN COMMERCIAL AIRCRAFT TO SAUDIA AIRLINES
L a s t year, t h e government o f Saudi A r a b i a d e c i d e d t o purchase
replacement a i r c r a f t f o r i t s commercial a i r l i n e , Saudia A i r l i n e s .
A f t e r i n t e n s e c o m p e t i t i o n between American and European f i r m s ,
the P r e s i d e n t announced today t h a t t h e Kingdom o f Saudi A r a b i a
i n t e n d s t o purchase t h e e n t i r e replacement f l e e t f r o m U.S.
companies -- Boeing and McDonnell Douglas.
Impact on U.S. Economy and Jobs
T h i s i s a g o l d medal w i n f o r American businesses and American
w o r k e r s . The d e a l w i l l t o t a l a p p r o x i m a t e l y $6 b i l l i o n and w i l l
s u p p o r t tens o f thousands o f jobs n o t o n l y i n C a l i f o r n i a and
Washington, where t h e p l a n e s w i l l be b u i l t , b u t i n M i s s o u r i ,
Kansas, Arkansas, Utah and elsewhere, where Boeing and McDonnell
Douglas have e x t e n s i v e o p e r a t i o n s . I n a d d i t i o n , major
s u b c o n t r a c t o r s , i n c l u d i n g U n i t e d T e c h n o l o g i e s ' P r a t t & Whitney
d i v i s i o n i n C o n n e c t i c u t and General E l e c t r i c i n Ohio, w i l l
b e n e f i t s i g n i f i c a n t l y from t h i s order.
For t h e a p p r o x i m a t e l y 100,000 workers who c u r r e n t l y work i n t h e
Boeing and McDonnell Douglas p l a n t s d i r e c t l y a f f e c t e d by t h i s
d e a l , t h i s s a l e i s a v o t e o f c o n f i d e n c e i n American q u a l i t y ,
American workers and American c o m p e t i t i v e n e s s . The U.S.
aerospace i n d u s t r y i s t h e most c o m p e t i t i v e i n t h e w o r l d and t h e
number one c o n t r i b u t o r t o o u r t r a d e b a l a n c e . We e x p o r t $40
b i l l i o n i n commercial a i r c r a f t each year and h o l d o v e r 60% o f t h e
w o r l d market.
The U n i t e d S t a t e s ' f u t u r e depends on o u r a b i l i t y t o compete
s u c c e s s f u l l y i n t h e i n t e r n a t i o n a l m a r k e t p l a c e . Between 1988 and
1992, almost 60% o f r e a l g r o w t h i n t h e U.S. economy came from
e x p o r t expansion. Every $1 b i l l i o n i n U.S. e x p o r t s i s e s t i m a t e d
t o c r e a t e about 20,000 good American j o b s -- j o b s t h a t pay about
17% more t h a n t h e average wage.
(more)
�The N a t i o n a l Export Strategy a t Work
This sale also i s an example of the N a t i o n a l Export Strategy a t
work. Announced on September 29, 1993, the National Export
Strategy i s a government-wide plan designed t o upgrade and
coordinate the U.S. Government's export promotion and export
finance programs t o help U.S. firms compete i n the g l o b a l
marketplace.
One of the elements of the National Export Strategy i s a
commitment by the U.S. Government t o marshall i t s resources i n
support of American companies competing f o r overseas c o n t r a c t s p a r t i c u l a r l y those contracts t h a t w i l l r e s u l t i n a s i g n i f i c a n t
increase i n U.S. exports and U.S. jobs.
This deal was made possible both by the personal e f f o r t s of
senior U.S. o f f i c i a l s -- e s p e c i a l l y Secretaries Brown and Pena •
to promote U.S. exports and by the commitment of the ExportImport Bank t o provide export f i n a n c i n g . I t i s an i l l u s t r a t i o n
of the A d m i n i s t r a t i o n ' s determination t o work hard t o help
Americans t h r i v e i n the g l o b a l economy.
Close R e l a t i o n s h i p w i t h Saudi Arabia
This purchase continues the strong commercial r e l a t i o n s h i p
between the U.S. and Saudi Arabia, p a r t i c u l a r l y i n the f i e l d of
c i v i l a v i a t i o n . I t complements the important p o l i t i c a l and
s t r a t e g i c r e l a t i o n s h i p we have and lays the groundwork f o r
f u r t h e r cooperation.
# # #
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001. briefing paper Meeting with Prince Bandar and CEOs (1 page)
02/16/1994
RESTRICTION
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COLLECTION:
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National Security Council
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OA/Box Number:
3106
FOLDER TITLE:
Saudi Arabia
2011-0516-S
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b(3) Release would violate a Federal statute 1(b)(3) ofthc FOIA]
b(4) Release would disclose trade secrets or confidential or financial
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b(6) Release would constitute a clearly unwarranted invasion of
personal privacy 1(b)(6) of the FOIA]
b(7) Release would disclose information compiled for law enforcement
purposes 1(b)(7) of the FOIA]
b(8) Release would disclose information concerning the regulation of
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financial information 1(a)(4) ofthc PRA]
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and his advisors, or between such advisors |a)(5) of the PRA]
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PRM. Personal record misfilc defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
��SAUDI AIRCRAFT SALES ANNOUNCEMENT
ROOSEVELT ROOM
10:00 - 10:30 A.M.
9:35
a.m.
The P r e s i d e n t i s b r i e f e d by Anthony Lake and
Robert Rubin i n the Oval O f f i c e on t h e
Congressional phone c a l l s and the Announcement
event.
9:45
a.m.
The P r e s i d e n t places c o n g r e s s i o n a l phone c a l l s .
9:57
a.m.
The P r e s i d e n t i s j o i n e d i n the Oval O f f i c e by
S e c r e t a r y C h r i s t o p h e r , S e c r e t a r y Brown and
S e c r e t a r y Pena.
10:00
a.m.
The P r e s i d e n t , accompanied by S e c r e t a r i e s
C h r i s t o p h e r , Brown and Pena, Anthony Lake and
Robert Rubin, e n t e r s t h e Roosevelt Room.
(Frank
Shrontz, Chairman and CEO o f Boeing, John
McDonnell, Chairman and CEO o f McDonnell Douglas.
Joe Kourpias, P r e s i d e n t o f I n t e r n a t i o n a l
A s s o c i a t i o n o f M a c h i n i s t s and Aerospace Workers.
C a r o l i n e F o r e s t , Vice P r e s i d e n t o f UAW, and Princs
Bandar w i l l be p r e - p o s i t i o n e d t o t h e f a r r i g h t of
the l e c t e r n ) .
10:01
a.m.
S e c r e t a r y Brown approaches t h e l e c t e r n and
introduces the President.
(Following the
i n t r o d u c t i o n S e c r e t a r y Brown takes h i s p l a c e
between S e c r e t a r y C h r i s t o p h e r and S e c r e t a r y Pena)
10:03
a.m.
The P r e s i d e n t approaches t h e l e c t e r n
(Anthony Lak;
and Robert Rubin stand t o t h e P r e s i d e n t ' s
left).
10:04
a.m.
The P r e s i d e n t makes t h e s a l e s announcement.
10:10
a.m.
10:12
a.m.
Prince Bandar approaches t h e l e c t e r n , hands a
l e t t e r t o t h e P r e s i d e n t from King Fahd.
Prince
Bandar makes b r i e f remarks (two m i n u t e s ) .
The Boeing r e p r e s e n t a t i v e speaks (two minutes).,
f o l l o w e d by t h e McDonnell Douglas r e p r e s e n t a t i v e
(two m i n u t e s ) .
10:16
a.m.
The M a c h i n i s t and Aerospace Union r e p r e s e n t a t i v e
speaks (two m i n u t e s ) , f o l l o w e d by t h e UAW
r e p r e s e n t a t i v e (two m i n u t e s ) .
10:20
a.m.
The P r e s i d e n t thanks t h e p a r t i c i p a n t s and these
s t a n d i n g t o h i s r i g h t , then proceeds t o shake
hands w i t h i n d i v i d u a l s seated i n t h e f r o n t row.
10:30
a.m.
The P r e s i d e n t e x i t s t h e Roosevelt
Room.
�B
�TALKING POINTS FOR CONGRESSIONAL CALLS
On Saudi A i r c r a f t Sale
o
I'm c a l l i n g t o i n f o r m you about some good news.
o
As you may know, the government of Saudi A r a b i a has been
d e c i d i n g how t o r e p l a c e i t s f l e e t o f about 50 c i v i l i a n
aircraft.
Today, t h e Saudi government w i l l f o r m a l l y n o t i f y
me t h a t they i n t e n d t o purchase the e n t i r e replacement f l e e t
from U.S. m a n u f a c t u r e r s -- s p e c i f i c a l l y , Boeing and
McDonnell Douglas.
o
The s a l e w i l l t o t a l almost $6 b i l l i o n .
I t w i l l s u p p o r t tens
of thousands o f American jobs i n C a l i f o r n i a , Washington
S t a t e , M i s s o u r i , Kansas, Arkansas, Utah and elsewhere.
o
T h i s i s a proud moment f o r American businesses and w o r k e r s .
I t shows we a r e more c o m p e t i t i v e t h a n ever i n t h e w o r l d
market. I t a l s o shows t h a t our f u t u r e l i e s i n e x p o r t i n g and
a c t i v e l y r e a c h i n g o u t t o the r e s t o f t h e w o r l d .
o
I n j u s t a few m i n u t e s , I w i l l be making t h i s news p u b l i c .
P r i n c e Bandar and t h e CEO's of Boeing and McDonnell w i l l be
j o i n i n g me.
o
I'm s o r r y the recess made i t d i f f i c u l t f o r you t o be here,
but I wanted t o l e t you know about t h i s , and I hope you w i l l
t a k e s a t i s f a c t i o n i n being home i n y o u r ' d i s t r i c t w i t h such
good news t o share.
��REMARKS OF PRESIDENT WILLIAM J . CLINTON
Announcement o f Sale o f U.S. A i r c r a f t t o Saudi A r a b i a
February 16, 1994
Good morning. Today i t g i v e s me g r e a t p l e a s u r e t o announce a
g o l d medal w i n f o r American businesses and American workers.
Last year, t h e government o f Saudi Arabia decided t o f i n d
replacement a i r c r a f t f o r t h e Saudia A i r l i n e s c i v i l i a n f l e e t o f
a p p r o x i m a t e l y 50 planes.
Today, Saudi Ambassador P r i n c e Bandar
i n f o r m e d me t h a t King Fahd has decided t o purchase t h e e n t i r e
replacement f l e e t from American companies -- s p e c i f i c a l l y , from
Boeing and McDonnell Douglas.
This purchase, which w i l l be f i n a n c e d by t h e U.S. E x p o r t - I m p o r t
Bank, w i l l t o t a l almost $6 b i l l i o n and w i l l s u p p o r t tens o f
thousands o f American jobs i n C a l i f o r n i a , Washington S t a t e ,
M i s s o u r i , Kansas, Arkansas, Utah and elsewhere.
This purchase i s a v o t e o f confidence i n American q u a l i t y ,
American workers and t h e c o m p e t i t i v e n e s s o f American e x p o r t s . I t
u n d e r l i n e s t h e e f f o r t s t h i s A d m i n i s t r a t i o n has made -- from NAFTA
t o APEC t o GATT t o o u r N a t i o n a l Export S t r a t e g y -- t o expand
markets, reduce t r a d e b a r r i e r s abroad, and c r e a t e good, h i g h paying jobs t h r o u g h i n c r e a s e d e x p o r t s . I t proves once a g a i n t h a t
i n t h i s g l o b a l economy, we must compete, n o t r e t r e a t .
The U n i t e d States and Saudi Arabia have long enjoyed c l o s e
r e l a t i o n s . We have had e s p e c i a l l y s t r o n g commercial r e l a t i o n s i n
the f i e l d o f c i v i l a v i a t i o n . With today's announcement, t h i s
proud t r a d i t i o n w i l l now c o n t i n u e i n t o t h e next c e n t u r y . These
c l o s e economic t i e s complement our i m p o r t a n t p o l i t i c a l and
s t r a t e g i c r e l a t i o n s h i p w i t h Saudi A r a b i a .
Let me note t h a t I have been i n c o n t a c t a l r e a d y w i t h many o f t h e
members o f Congress and s t a t e and l o c a l o f f i c i a l s whose
c o n s t i t u e n t s w i l l b e n e f i t from t h i s s a l e . My message t o them i s
s i m p l e : t h i s A d m i n i s t r a t i o n w i l l c o n t i n u e t o work hard, a t home
and abroad, t o h e l p Americans t h r i v e i n t h e new g l o b a l economy.
In c l o s i n g , I want t o thank King Fahd, P r i n c e Bandar and t h e
government o f Saudi A r a b i a f o r t h e i r d e c i s i o n . L e t me a l s o thank
S e c r e t a r i e s Brown, C h r i s t o p h e r and Pena f o r a l l t h e i r s u s t a i n e d
hard work on t h i s i s s u e , and f o r t h e i r teamwork on b e h a l f o f t h e
American people.
Each o f them p e r s o n a l l y has t r a v e l e d t o Riyadh,
i n p a r t t o emphasize t h e importance o f t h i s s a l e .
And l e t me a l s o o f f e r my c o n g r a t u l a t i o n s t o t h e employees o f
Boeing and McDonnell Douglas. Your hard work has p a i d o f f again.
And i t i s making America proud.
Thank you very much.
�Withdrawal/Redaction Marker
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DOCUMENT NO.
AND TYPE
002a. briefing
paper
SUBJECT/TITLE
DATE
Meeting with Prince Abd Al-Aziz bin Fahd, October 30, 1993 (2
pages)
10/29/1993
RESTRICTION
Pl/b(l)
COLLECTION:
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OA/Box Number:
3106
FOLDER TITLE:
Saudi Arabia
2011-0516-S
kh641
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U.S. Government Report (1 page)
10/25/1993
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COLLECTION:
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b(6) Release would constitute a clearly unwarranted invasion of
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b(8) Release would disclose information concerning the regulation of
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Relating to the appointment to Federal office 1(a)(2) of the PRA|
Release would violate a Federal statute 1(a)(3) of the PRA|
Release would disclose trade secrets or confidential commercial or
financial information 1(a)(4) of the PRA]
PS Release would disclose confidential advice between the President
and his advisors, or between such advisors |a)(5) of the PRA]
P6 Release would constitute a clearly unwarranted invasion of
personal privacy 1(a)(6) ofthc PRA]
C. Closed in accordance with restrictions contained in donor's deed
of gift.
PRM. Personal record misfile defined in accordance with 44 U.S.C.
2201(3).
RR. Document will be reviewed upon request.
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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
Office of Press and Communications - Philip J. “P.J.” Crowley
Creator
An entity primarily responsible for making the resource
National Security Council
Is Part Of
A related resource in which the described resource is physically or logically included.
<a href="http://clinton.presidentiallibraries.us/items/show/36076">Collection Finding Aid</a>
Identifier
An unambiguous reference to the resource within a given context
2011-0516-S
Description
An account of the resource
This collection consists of White House press releases from the files of P.J. Crowley. Crowley served as Special Assistant to the President for National Security Affairs and Senior Director of Public Affairs the National Security Council from 1997–1999. The press releases are arranged by subject or, as in the case of the Weekly Compilation of Presidential Documents, by date.
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
Publisher
An entity responsible for making the resource available
William J. Clinton Presidential Library & Museum
Extent
The size or duration of the resource.
370 folders in 33 boxes
Text
A resource consisting primarily of words for reading. Examples include books, letters, dissertations, poems, newspapers, articles, archives of mailing lists. Note that facsimiles or images of texts are still of the genre Text.
Original Format
The type of object, such as painting, sculpture, paper, photo, and additional data
Paper
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
Saudi Arabia
Creator
An entity primarily responsible for making the resource
National Security Council
Office of Press and Communications
Philip "PJ" Crowley
Identifier
An unambiguous reference to the resource within a given context
2011-0516-S
Is Part Of
A related resource in which the described resource is physically or logically included.
Box 13
<a href="http://catalog.archives.gov/id/7585702"></a>
<a href="http://clinton.presidentiallibraries.us/items/show/36076">Collection Finding Aid</a>
Source
A related resource from which the described resource is derived
7585702
42-t-7585702-20110516s-013-003-2015
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: NSC Cable, Email, and Records Management System
Publisher
An entity responsible for making the resource available
William J. Clinton Presidential Library & Museum
Format
The file format, physical medium, or dimensions of the resource
Adobe Acrobat Document
Medium
The material or physical carrier of the resource.
Preservation-Reproduction-Reference