Software Vault: The Gold Collection/Software Vault - The Gold Collection (American Databankers) (1993).ISO/cdr11/wh930427.zip/4-27D.TXT

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From @lex-luthor.ai.mit.edu:[e-mail] Tue Apr 27 18:17:52 1993
Date: Tue, 27 Apr 1993 18:08-0400
From: The White House <[e-mail]>
Subject: Press Briefing by George Stephanopoulos  4.27.93
To: [e-mail]

                           THE WHITE HOUSE

                    Office of the Press Secretary
_____________________________________________________________________
For Immediate Release                                  April 27, 1993

                            PRESS BRIEFING
                       BY GEORGE STEPHANOPOULOS

                          The Briefing Room

1:10 P.M. EDT

         MR. STEPHANOPOULOS:  The President has some major
disasters to declare today in Oklahoma.  (Laughter.)  These are
resulting from severe storms and tornadoes on April 24th, 1993.  FEMA
will provide assistance to individuals and families affected.  In
Oregon, resulting from an earthquake on March 25th, 1993, FEMA will
provide public assistance to cities and towns affected.  And in Iowa,
resulting from severe storms and flooding on March 26th 1993, FEMA
will provide assistance to individuals and families affected.

         He's also approved expanded emergency aid for North
Carolina and Alabama, following the March snowstorms in those states.
And we will have a release for all of you.

         Q      What about Hurricane Leon?  (Laughter.)

         MR. STEPHANOPOULOS:  No FEMA declaration yet.

         Q      Is the President concerned about the Budget
Director's statements, and does that characterize the President's
view of what his chances are on the passage of key elements of his
proposal on the Hill?

         MR. STEPHANOPOULOS:  No, I don't think so.  Not at all.
I think the President, first of all, is in a very upbeat mood.  For
anybody who saw the speech today would see that.  And, obviously, on
the passage of the President's economic and health care plans and his
entire agenda for change, nobody ever said it was going to be easy.
I don't think the President expects that when you go in for big
changes, trying to reverse 12 years of neglect and abandonment by the
federal government and bringing down the deficit, it's going to be
easy.  But we're not going under with any illusions, but we're moving
forward.

         Q      Has he spoken to Panetta, or has McLarty?  Has
anyone wood-shedded him?

         MR. STEPHANOPOULOS:  No, not at all.  Mr. Panetta came
to the senior staff meeting this morning, as he always does, and --

         Q      What was said about that?

         MR. STEPHANOPOULOS:  First of all, he walked in --
(laughter.)

         Q      Then what happened?

         Q      Then what happened?

         MR. STEPHANOPOULOS:  And we all acknowledged his
presence.  (Laughter.)

         Q      How?  By booing?

         MR. STEPHANOPOULOS:  No, no boos for --

         Q      Was there joking about it?

         MR. STEPHANOPOULOS:  I think that we all understood what
happened.

         Q      What was that?

         MR. STEPHANOPOULOS:  I mean, I just don't think this is
a very big deal.

         Q      Well, would you explain it to us then?

         Q      You mean someone spoke the truth?

         MR. STEPHANOPOULOS:  Someone spoke the truth?  Well, as
you know, really, the announcement we were going to make today is
that Mr. Panetta is going to be appointed Communications Director for
the administration, and I'm taking over at OMB.  (Laughter.)

         Q      What do you think did happen?

         MR. STEPHANOPOULOS:  I think that he was just giving his
assessment of where we are.  I think that in some ways the remarks
were taken a bit out of context at times, and probably pumped up a
little bit at other times.  But he's just clearly -- if you take it
issue by issue I can answer the questions, but he was noting that it
is going to be a tough fight for the President's economic package,
which it undoubtedly will be.  There are a lot of people in the
Congress who are wedded to the past, who are wedded to the status
quo, who don't want the kind of changes the President is coming
forward with.

         Q      You're the one that insisted that the passage of
the budget meant that basically the deal was done and that the budget
resolutions are binding and that, therefore, that you needn't worry
after that because the budget was passed.

         MR. STEPHANOPOULOS:  The budget is passed and now we're
moving forward with the next parts of the President's package.  And
we're going to fight hard for every --

         Q      I know, but if the budget resolution is binding,
then what are you worried about?

         MR. STEPHANOPOULOS:  Well, what we're worried about is
making sure that we protect as many of the President's priorities as
we can.  As you know, the overall targets in the budget resolution
are binding, but there are specific allocations by committee, and
there obviously can be changes in the internals of different
programs.  And we're going to fight for every bit of the President's
program we can get through this process.

         Q      Is there anything that Panetta said that the
President disagrees with?

         Q      Foley and Panetta made a strategic argument
yesterday that said that if you try to go simultaneously with health
care and finishing the budget reconciliation process, you're going to
run into a situation where all these taxes are going to be out there,
people are going to lose track of which taxes are for what, and in
the end the whole thing is going to come unraveled.  Are you saying
the President does not share that view expressed by Panetta and by
Foley yesterday?

         MR. STEPHANOPOULOS:  I think what -- obviously, the
House and the Senate can only deal with one huge piece of legislation
at a time.  And as the Speaker said this morning, clearly the House
and the Senate will finish the reconciliation bill before taking up
the health care legislation.  That is indisputably true; it's what
you must do.  I mean, they both go through the Finance and the Ways
Committees.  You can't simply put them both through the same channel
at the same time.  And that's the direction we're headed in right
now.

         I think it is wrong, necessarily, to assume that we're
going to have huge taxes for health care.  I don't think that that is
right.  We haven't made any decisions yet.  We don't have any
announcements to make on that score yet.  We do believe that we have
to fight right now for the President's reconciliation package, we
have to fight right now to get the budget done.  We're trying to get
it done as quickly as we possibly can, which is why -- and I think,
again, the Senate and the House leaders indicated today that they are
trying to move up consideration of the reconciliation bills and get
them done in what we hope will be record time, as we did with the
budget.

         Q      Two things on what Panetta said.  First, following
up on what Tom said, he specifically suggested that you shouldn't
announce the health care package until after reconciliation was done.
Is that --

         MR. STEPHANOPOULOS:  I'm not sure that he suggested it.
I mean, I saw the articles as well, and the words "urge" was never
really in quotes, it was the words used by the reporters, not the
words used by Panetta.  What he said is that it would complicate the
situation.  That is true.

         Q      Regardless of whether he specifically suggested it
or not -- I don't want to argue about that --is that under
consideration?  Is the possibility of delaying the announcement until
after reconciliation is done an open subject, or is that not --

         MR. STEPHANOPOULOS:  I think we're going to stay on the
track that we're committed to right now.  We're going to do
everything we possibly can to get health care done this year, because
we think it's important to get it done this year.

         Q      That includes making the announcement in May rather
than waiting --

         MR. STEPHANOPOULOS:  I think that's the track we're on
right now, sure.

         Q      And the other thing is, the budget resolutions, as
you know, are several billion dollars below the budget that you
announced.  A lot of people on the Appropriations Committee are
saying that the only way to get down to the caps in the budget
resolution is to eliminate large numbers of the President's new
spending proposals, which is what Panetta was talking about
yesterday.  How do you plan to try to get over that problem of the
fact that there just isn't enough money in the budget to cover the
existing programs plus the new spending that you'd like?

         MR. STEPHANOPOULOS:  Well, I think we've found that with
over 200 budget cuts with the budget resolution so far we think that
it's possible we can get more.  I don't think that we accept as a
self-evident proposition that that must come out of the President's
investments.  And we're going to fight for as much of the President's
investments as we can get throughout the reconciliation process.  And
that's exactly what we're going to be discussing with the
Appropriations Committees over the next several weeks, and as we go
up to testify.

         Q      Do you have additional spending cuts to propose to
bring the budget into line with the resolution?

         MR. STEPHANOPOULOS:  I think that's what we'll be
working with the committees on.

         Q      What do you see as the political impact of this
kind of downbeat analysis as we approach the magical 100 days mark
coming from within the administration itself as opposed to from
outsiders who generally share this view?

         MR. STEPHANOPOULOS:  Again, I don't know that I accept
your characterization of what he said.  I mean, he says what we all
know, that this is  --

         Q      Thought this was upbeat?  (Laughter.)

         MR. STEPHANOPOULOS:  I didn't say that -- that change is
tough.  It's very hard to get the kind of changes that the President
is calling for.  But we're going to fight for them.  We're realistic
about the challenges we face, but we're also determined to face them
down and to succeed.

         Q         change is tough if you pursue them with the
strategy that the President is pursuing them with.

         MR. STEPHANOPOULOS:  Susan, do you want to come back?

         Q      I forgot.  Go on.

         Q      He said change was tough it you pursue them with
the present strategy.

         MR. STEPHANOPOULOS:  No, he said --

         Q      What do you disagree with about what Panetta said?
Anything?  Does the President agree with what Panetta said?  His
assessment?

         MR. STEPHANOPOULOS:  We're optimistic.  We think we're
going to get this stuff done, and we're going to fight for it as hard
as we can.

         Q      So you disagree with what you have to accept is a
downbeat --

         MR. STEPHANOPOULOS:  No, I don't have to accept the
characterizations that you put on what he said.  I don't.

         Q      No, but look point by point through his concerns
about deficit reduction, his concerns about NAFTA, his concerns about
health care --

         MR. STEPHANOPOULOS:  Let's take them one by one.  NAFTA.
He said if NAFTA were sent up to the Congress today, it would not be
passed.  That is absolutely, positively true.  We don't expect to
send NAFTA up to Congress today because we have not completed the
negotiation of the side agreements which are necessary for the
passage of NAFTA because they're necessary to protect American
workers in the American environment; point number one.  What is point
two?

         Q      Russian aid.

         MR. STEPHANOPOULOS:  Russian aid?  Again, the President
himself said that we cannot expect to go forward with -- that it
would be difficult to go forward with the Russian aid program unless
we're also moving forward on programs for American workers and the
American agriculture and the American economy.  And we intend, as the
leaders in the Congress said today, to move forward with the new jobs
package as soon as we can work one out, and we intend to fight for
the American economy and the President's investment package.  Again,
we're not going to go forward, we just don't think it's possible to
go forward unless we have -- we're also investing in the American
economy, and that's exactly what the President intends to do.

         Q      Are you suggesting there's no thought in the
administration to delay the health care until June rather than May?
That's not under consideration?

         MR. STEPHANOPOULOS:  What I'm suggesting is that we're
going to stay on the track that we've set forward right now.

         Q      What do you mean by staying on the track?

         MR. STEPHANOPOULOS:  Staying on the track.  We are
hoping to have some sort of announcement in May with probably the
introduction, as the Speaker said today, consideration of the
legislation in June, or after the reconciliation were done.

         Q      Would you not send the legislation until June then?
You'd hold it?

         MR. STEPHANOPOULOS:  I'm not sure about when it would be
finally drafted and when it would be ready, but we're still on the
same track we've been on.

         Q      Are you staying on the track because you feel that
you can overcome the difficulties that Panetta talks about, or
because you don't think they're serious enough to derail it -- either
reconciliation or health care?

         MR. STEPHANOPOULOS:  We obviously take all these
concerns into account, and we're going to make sure that we work on a
track, that we'll do everything we can to get the reconciliation bill
passed this year and to get the health care bill passed this year.
But we don't necessarily see them in opposition.

         Q      Would you acknowledge that there is a division
within the White House among those who think the President should
focus exclusively on the economy and what he wants to do there, and
those who want him to simultaneously pursue other -- his whole
activist agenda and campaign finance reform and other issues --health
care?

         MR. STEPHANOPOULOS:  I think everyone in the White House
is committed to the President's agenda, the agenda that he ran on,
the agenda that he's governing on.  And that includes, one, turning
the economy around; two, reforming this nation's health care system
so we can provide security to the American people.  It also includes
the other parts of his agenda that he's laid out:  campaign finance,
national service.  Those are the four big priorities he said he
wanted to move forward on right away, and those are the four big
priorities he is moving forward on right away.

         Q      Are the agreed on the timing, George?  Are they all
agreed here on the timing?

         MR. STEPHANOPOULOS:  I think there are a lot of
discussions over the exact days when things should go forward.  I
mean, there's just no question about that.  But I think we're all
agreed to move forward on the reconciliation bill as quickly as we
possibly can, and to move in short order, also, with health care.  We
believe it has to get done.

         Q      On NAFTA again, Panetta's word was "dead," which
has a distinctly different implication than "awaiting major surgery,"
which is what you're saying.  (Laughter.)

         MR. STEPHANOPOULOS:  I would say what I just said.  I
mean, I think that we have no intention to send NAFTA up tomorrow.
If it were sent up tomorrow, it would not pass.

         Q      But, George, the issue isn't tomorrow, the issue is
--

         Q      Never.

         Q         this legislative session or ever.  Are you
committed to sending NAFTA up this spring or summer or fall?

         MR. STEPHANOPOULOS:  We're committed to sending NAFTA up
when we negotiate good supplemental agreements with the Mexicans to
protect American workers in the American environment.

         Q      Are you avoiding moving on negotiating such
agreements --

         MR. STEPHANOPOULOS:  Absolutely not.  And the U.S. Trade
Ambassador is working very hard on that.  And he's entering into
negotiations with the Mexicans, and we hope we can conclude
successful negotiations on the side agreements as quickly as
possible.

         Q      But don't you think that this headline has done a
lot of damage to NAFTA, and what is the White House or the President
going to do about it?  Are you going to take additional steps to
clarify that situation?

         MR. STEPHANOPOULOS:  I can't control The Washington Post
headlines as much as I might like to, and there were, in fact, two
different headlines in The Washington Post today.  The first one --it
actually got progressively worse during the day -- the first one was,
The President Faces Battle, and then it was moved on to President In
Trouble later in the day.  So I don't think -- if we paid too much
attention to headlines, we'd be going back and forth every 10
minutes.

         Q      So is it fair to say that you disagree that Mr.
Panetta's assessment is pessimistic?  You don't accept that at all?

         MR. STEPHANOPOULOS:  Oh, I accept it.  I think that he
clearly pointed up the challenges that we face as we go forward on
the big parts of our package.  It's clear that we have those --

         Q      And that the President agrees with his assessment
of those challenges?


         MR. STEPHANOPOULOS:  The President is optimistic by
nature.  He's upbeat about our chances and he's going to keep on
fighting.

         Q      George, usually when an official makes a statement
like this publicly it's because he can't get the message across
privately.  Is that the case here?  Has Panetta told the President
the exact same thing in private?

         MR. STEPHANOPOULOS:  Well, I certainly am not going to
talk about the President's private conversations with Mr. Panetta.
But I would just say that I don't think that Mr. Panetta was trying
to send any signal here that wasn't being sent anywhere else.  I
think that's pretty clear.  He came to the staff meeting this morning
and said, listen, I don't think that that was the right
characterization of the way I was talking.  I'm sorry for the way it
turned out.  I didn't mean it to turn out that way.

         Q      George, with respect to Mr. Panetta's statement on
NAFTA, why would he be making such an obvious statement if everybody
knows that the administration has plans to conclude these side deals
and send it up and the President has said from when he was a
candidate that he was going to look for these side deals?  So why
would Leon make such an obvious statement?

         MR. STEPHANOPOULOS:  I suppose he was asked a question.

         Q      George, to follow up on my own question, during the
transition I recall the President saying something like Panetta is
going to be a good teacher for me.  We were asking questions about
Panetta disagreeing with the President as a campaigner.  Has Panetta
succeeded, or is he now trying to teach the President something on
this matter as far as getting something through Congress?

         MR. STEPHANOPOULOS:  I don't know about that.  I think
the President talks to Leon Panetta every day.  He's given a lot of
good advice.  He did yeoman's work in producing a budget resolution
that passed the Congress in record time of record magnitude.  And the
President is very proud of the work of Mr. Panetta and he looks
forward to continue to work with him.

         Q      Is campaign finance reform going to happen this
week?

         MR. STEPHANOPOULOS:  I'm not really sure.  That came up
a bit in the meeting this morning with the leaders.  I think we're
very close to a final agreement.  There might be some additional
consultations that are needed, but we're trying to move forward as
quickly as we can.

         Q       What is hanging it up, George, because it's one of
your 100-day four pillars, if you will, and it's

         Q         printed in the book.

         Q         of course, it's already in the book.

         Q      It's done.  (Laughter.)

         Q      What is holding it up?  Are you also trying to have
a --

         MR. STEPHANOPOULOS:  I can't concede that it's held up
yet because it's not.

         Q      If you announced that it's going to happen today it
would appear to be --

         Q      Campaign finance reform -- you're not conceding --

         MR. STEPHANOPOULOS:  Andrea wants to know what's going
on with campaign finance reform.

         Q      The answer is?

         MR. STEPHANOPOULOS:  What did she say?  The answer is
we're working on it.  I think we're very close to an announcement.
Whether it's the end of this week or the beginning of next, I'm not
sure which one it will be.  But the only possible hold would be over
some additional consultations that we might need and that would be
the only reason to go --

         Q      When is the meeting on Bosnia and which committees?
We can't get any answers.

         MR. STEPHANOPOULOS:  Yes, it's not completely nailed
down yet.  We expect to have a meeting with some congressional
leaders on Bosnia this afternoon.  I'm not sure if it's going to be
one or two meetings.  We think it's going to be one.

         Q      Is it foreign affairs, intelligence?

         MR. STEPHANOPOULOS:  Foreign affairs -- probably be
foreign affairs, defense, intelligence, maybe defense appropriations.
I'm not sure of the exact list, but we're trying to finalize that
right now.

         Q      Do you consider this the official notification
under War Powers?

         MR. STEPHANOPOULOS:  No, I think this is the predecision
consultation by the President with congressional leaders, as he said
he would do.  He's had continuous phone calls and things like that
with congressional leaders and it came up in the meeting this
morning.  But he wants to broaden out the consultation before he
makes a decision.

         Q      Has he talked to any foreign leaders?

         MR. STEPHANOPOULOS:  Not today.

         Q      Speaking of War Powers, no administration has ever
acknowledged its constitutionality.  It seems to me you had one
letter on an earlier issue which said, as earlier administrations
have, that you were making a notification consistent with, but not
under the War Powers Act.  What is the administration's position on
the constitutionality of the War Powers Act?

         MR. STEPHANOPOULOS:  I think we'll continue to make
notifications when appropriate that are consistent with the War
Powers Act.  I don't want to get into it further at this point.  I
would check with counsel, but we will continue to notify consistent
with the War Powers Act.

         Q      So you're not accepting or not accepting its effect
or constitutionality?

         MR. STEPHANOPOULOS:  Not right now.

         Q      Why can't we assume that the "consistent with"
language, which is the language both the Bush and the Reagan
administration used --

         Q      Carter.

         Q      Sorry, I wasn't here that long.  (Laughter) -- is
not, in effect, saying the same exact thing which is you don't
recognize the constitutionality of notifying under the provisions of?

         MR. STEPHANOPOULOS:  Well, we certainly intend to notify
and consult under the provisions of War Powers.  Consistent with the
provisions of War Powers.  And I thank you for pointing that out.

         Q      What time is the Bosnia meeting?

         MR. STEPHANOPOULOS:  It's not completely set yet.  I
believe it's like 3:00 p.m. or 4:00 p.m. but we just haven't finally
nailed it down.

         Q      Can you confirm that Christopher's going to Europe?

         MR. STEPHANOPOULOS:  No.

         Q      George, on Bosnia, Lord Owen said --

         Q      Can you confirm he's not?

         MR. STEPHANOPOULOS:  No, I can't comment.

         Q      Is he going?

         MR. STEPHANOPOULOS:  No decisions have been made.

         Q      If he goes, when will he go?  (Laughter.)

         Q      If he goes, why would he go?  Should he go, just
hypothetically, would this be with a decision in hand or would this
be in consultation to arrive at a decision?

         MR. STEPHANOPOULOS:  I just can't comment on it until we
have some decisions on whether or not he's going to go.

         Q      Are you encouraged by what Douglas Hurd apparently
said in Denmark over the weekend?

         MR. STEPHANOPOULOS:  There was a question over whether
or not Secretary Christopher is going to Europe.  And I said I can't
comment on it.

         Q      Do you view the discussions in Denmark as a
softening of the British and French opposition to air strikes?

         MR. STEPHANOPOULOS:  I think that we've had continuous
consultations with the British and French over a number of ways to go
in Bosnia.  We haven't had any specific consultations yet based on
any decision that the President has made.  But I think what you're
seeing across Europe is an increasing sense of urgency over the
situation in Bosnia.  And we expect to work closely with our allies
on our policy.

         Q      You don't deny that they've told you that of the
military options the one they prefer is air strikes.

         MR. STEPHANOPOULOS:  I just can't speak to it.

         Q      George, Lord Owen said that the U.S. ought to put
up or shut up, in effect, and put ground troops in, that air strikes
won't do any good unless there are ground troops, too.  Is the
President changing his position on ground troops?

         MR. STEPHANOPOULOS:  The President has not changed his
position on ground troops.

         Q      George, I wanted to get back to your feeling that
health care could be passed this year.  A number of Senate Democrats
who were in on this briefing on Saturday left after that briefing
feeling that it is going to take much longer than just this year.
And I was wondering what specific techniques you're going to try to
use to try to consolidate some of the jurisdictional nightmares of
health care reform, or the financing mechanism, the complexity to try
to get something done this year.

         MR. STEPHANOPOULOS:  Sweet reason.  (Laughter.)  We're
going to talk to them.  Obviously when we have the package ready we
will work out all the jurisdictional disputes, and we'll work out the
different referrals and try and get as quick a consideration as we
can -- in the House and the Senate.

         Q      Is there any comment from the President about
Yeltsin's call for what he called decisive measures in Bosnia, the
call he made this morning one day after he talked to Mr. Clinton on
the phone?

         MR. STEPHANOPOULOS:  Well, I think what was encouraging
about what President Yeltsin said is that he was willing to say to
the Serbs that the aggression must stop as well.

         Q      But was it a code word he was using to talk about
air strikes?

         MR. STEPHANOPOULOS:  I couldn't speak to that, I don't
know.

         Q      Did the President ask Mr. Yeltsin to make a
statement like that in their phone conversation?

         MR. STEPHANOPOULOS:  No.

         Q      Did he encourage him to make --

         MR. STEPHANOPOULOS:  No.  Didn't come up.

         Q      Did he discuss anything like that?

         MR. STEPHANOPOULOS:  Did not come up.

         Q      Has he talked to Mitterrand?

         MR. STEPHANOPOULOS:  No.

         Q      Back on health care, you said you think it's wrong
to necessarily assume that there's going to be a huge new tax for
health care.  Is that to say that the VAT is no longer on the table?
Are you trying to push that aside or what?

         MR. STEPHANOPOULOS:  No, I just think that it stands on
it's own.  I don't think that we can assume until a decision is made
that any tax has been proposed.

         Q      Do you have -- what the Speaker said today?

         MR. STEPHANOPOULOS:  Which part?

         Q      The part where he said that he came away from the
meeting with the Clinton's believing that the VAT is dead for health
care purposes.

         MR. STEPHANOPOULOS:  That's not exactly what he said.

         Q      That's what he said on the drive this --

         MR. STEPHANOPOULOS:  He didn't use the word dead.

         Q      He said that is was very unlikely that anything --

         MR. STEPHANOPOULOS:  That's different from saying the
VAT is dead.

         Q      Very unlikely?

         Q         said there will not be the kind of -- he also
said there will not be the kind of broad taxes that have been
discussed.

         MR. STEPHANOPOULOS:  I think it's fair to say that it's
not at the top of the list.  And I don't know that it ever was.

         Q      George, in the conversation with Yeltsin, did the
President discuss with him the prospects for getting additional
Russian aid through Congress?  And did he explain to him the sense
that it can't be done until you get some sort of movement on it?

         MR. STEPHANOPOULOS:  No, they didn't have an in-depth --
almost all of their discussion was about the election, the election
results and Yeltsin expressing his thanks to the President and the
American people for their support in his elections.

         Q      And about Bosnia, too, I guess.

         MR. STEPHANOPOULOS:  Yes.

         Q      George, on Russian aid, President Clinton from the
very beginning made the argument that Russian aid was not an economic
issue, it wasn't a jobs issue, it was a national security issue.

         MR. STEPHANOPOULOS:  I think -- to be fair.

         Q      No, that stabilizing Russia was not something --was
not charity, it was not unemployment, it was an issue that was
involved with our own national security that will allow us to cut
other places, particularly the defense budget.

         MR. STEPHANOPOULOS:  That's only one-half of his
argument though, Tom.  The second half of his argument was that by
helping the Russian people invest in their economy we would also be
increasing economic opportunities for the American people.

         Q      Absolutely, no question about it.  But why now?  I
have not heard anyone -- maybe I just haven't heard it.  But I
haven't heard anyone up there saying no jobs bill, no Russian aid.
All I've heard is administration officials saying -- like Panetta and
others -- oh, if we don't get our jobs bill through, now there'll be
no aid for Russia.  Why in the world would you introduce -- why would
you link the two?

         MR. STEPHANOPOULOS:  First, I don't think -- I just
don't agree with your assumption.  I mean, go spend a day, first of
all, up on the Hill and ask people the question.  And I think you'll
find out that it is very, very difficult to imagine passing a bill on
aid to Russia at this point unless we are moving forward on our jobs
bill or other kinds of investments for the American economy.  I just
think that that is a misreading of where Congress is.

         Q      And you say the President is going to concede that
argument --

         MR. STEPHANOPOULOS:  No, obviously the President has
gone forward.  He's introduced Russian aid, he's pushed the G-7 for
an international package, he's come forward with a second bilateral
package.  He believes that aid to Russia is in the American national
security interest, is in our economic interest.  He will fight for
it.  At the same time, it is difficult to imagine that it can get
through Congress in this current environment unless we're also moving
forward on the President's jobs initiatives, economic initiatives,
health care initiatives.

         QQ       George, two quick things.  On Bosnia, do you expect
the announcement this week?

         MR. STEPHANOPOULOS:  No.

         Q      Not this week?

         MR. STEPHANOPOULOS:  I'm not ruling it out, but I'm --

         Q      What did the President mean?

         Q      Do you have anything on the President having met or
going to meet with the Dalai Lama while he's in town?

         MR. STEPHANOPOULOS:  Yes, he had a brief meeting with
the Dalai Lama earlier today, and they had a discussion over human
rights concerns in China and Tibet.

         Q      Why don't you tell us things that are on his
schedule?

         MR. STEPHANOPOULOS:  It was a brief stop-by when he came
back.  It was actually on the Vice President's schedule, and he
walked by the office and went in and said hello to the Dalai Lama,
and they spent about five minutes.

         Q      There are parts of the world --

         Q      Hello, Dalai.  (Laughter.)

         MR. STEPHANOPOULOS:  I'm not sure.

         Q      Can you tell us a little more about what the
President had to say to the Dalai Lama about Tibet or anything the
Dalai Lama might have asked for?

         MR. STEPHANOPOULOS:  I don't think he asked for anything
in particular.  He thanked him for his support for human rights in
China.  And the President just greeted him.  But I don't think they
had a much longer discussion than that.

         Q         impact this meeting might have on relations with
China, trade issues or other things?

         MR. STEPHANOPOULOS:  I think the President's concerns
about human rights in China are well-known and have been well
expressed, and he will continue to express them.

         Q      Speaking of China, George, last week Mitchell, as
you know, and Pelosi introduced their legislation, and the White
House's response was they were looking at the bill to determine
whether or not they could endorse its conditionality clauses.  Has
the White House decided what it's going to do in that --

         MR. STEPHANOPOULOS:  No, I mean, we have until June 1st
to announce our policy on MFN, and obviously --

         Q      This legislation is, if anything, less tough on --
is a little bit less tough than last year's legislation.  Have the
Chinese done anything that you could name that would make you -- and
which the President endorses a candidate -- has the Chinese done
anything that you can think of that would make the President not
endorse legislation --

         MR. STEPHANOPOULOS:  Well, the President continues to
support the thrust of this legislation, continues to support the idea
of conditionality and will continue to demand progress from China on
human rights and other issues before he approves MFN.  We're still
reviewing the entire range of Chinese actions, entire range of
conditions.  And when we have an announcement we'll let you know, but
he certainly supports the thrust of conditionality.

         Q      George, is the President aware that some Democrats
are very hurt because they haven't been called on to bring any advice
or jobs where the third, fourth, fifth tier of jobs are still being
filled by influential Republicans who are undermining the President's
policies?

         MR. STEPHANOPOULOS:  I didn't know that to be true.  If
it is, we'll get on top of it.  I don't that that's anything that we
want.

         Q      Well, it is true in every department.

         Q      Talking about holdovers, I think.

         MR. STEPHANOPOULOS:  Oh, I thought she was saying new
appointments.  We're trying to fill up the appointments as soon as --
(laughter).

         Q      The Republicans are still there and many
influential, good Democrats have not even been touched, not even been
asked for advice.

         MR. STEPHANOPOULOS:  We're reaching out to ask as many
Democrats and others as we can for advice on the personnel --

         Q      These Republicans -- Republicans are taking actions
and making policies by government today and hurting the President.

         MR. STEPHANOPOULOS:  Well, if we come up upon an action
where they're hurting the President, we'll certainly take action.
But we're going to move forward very quickly, as quickly as we can on
these personnel appointments.  And we expect to be making more
progress soon.

         Q      The President told realtors that he thought a
compelling case could still be made for investment incentives.  Does
that -- does he still believe that holds true for the capital gains
cut proposal and investment tax credit proposal?

         MR. STEPHANOPOULOS:  Oh, I think so.  The President
believes that these proposals can make a difference, that they can
provide for needed investments in the private economy.

         Q      Is there any reason he didn't particularly fight
those two, given that the didn't -- other provisions in his program?

         MR. STEPHANOPOULOS:  Not necessarily, no.

         Q      When he talked about battle of ideas, was he
referring to Democrats as well as Republicans -- Democrats like
Rostenkowski, who disagreed on these particular tax provisions?

         MR. STEPHANOPOULOS:  I don't know that he was referring
specifically to Chairman Rostenkowski.  In fact, I'm quite confident
that he wasn't referring specifically to him.  But he did say in the
speech that he was elected to change the thinking of both parties.
And there are going to be times when he disagrees with Republicans,
times when he agrees with Republicans, times when agrees with
Democrats, and times when he disagrees with Democrats on the Hill.
That's all par for the course, and it's part of big change.

         Q      Did someone write that speech?  (Laughter.)

         MR. STEPHANOPOULOS:  Why do you ask?

         Q      Was he -- he had a text?

         MR. STEPHANOPOULOS:  He had a written text.  I'm certain
how closely it as followed.  I think it was -- some parts it was and
some it wasn't.  I mean, he always uses the text as sort of a take-
off point.

         Q      No, I know that, but in recent days he seems to be
more --

         Q      Rambling.

         Q         some would say rambling.

         MR. STEPHANOPOULOS:  How about ebullient and upbeat.
(Laughter.)  No, it was -- he had a written text, but he does what he
always does, which is work off notes and then say what's on his mind.

         Q      George, knowing that sometimes the answers come --
that questions have to -- let me start on Panetta one time.  Did the
President talk to Panetta last night?  Did Panetta try to reach the
President last night?

         MR. STEPHANOPOULOS:  No, he had a meeting with Panetta
at about 6:00 p.m. yesterday, but it was a fairly broad meeting,
there were probably 15 people there.

         Q      Sort of -- since the headlines have appeared,
whatever, and that includes last night's from 10:00 p.m. on to the
current moment when you came out here, had the President and Panetta
had a conversation that you know of?

         MR. STEPHANOPOULOS:  I don't think so.

         Q      Has Panetta tried to reach the President?

         MR. STEPHANOPOULOS:  I'm not sure.  I can't speak to the
10:00 p.m. to kind of midnight period.  I just don't know.  I don't
think they've spoken, but I couldn't guarantee that they haven't.
I'll just have to check.

         Q      Has the reacted in your presence or that you know
of --

         MR. STEPHANOPOULOS:  Yes, I mean, he just is not overly
concerned by a one-day story.

         Q      What was his reaction?

         Q      What did he say?

         Q      How about a two-day story?  (Laughter.)

         MR. STEPHANOPOULOS:   Well, that would be different.
(Laughter.)

         Q      What did he say?

         MR. STEPHANOPOULOS:  He just shook his head and said --

         Q      Goddamn Leon.  (Laughter.)

         MR. STEPHANOPOULOS:  No.  (Laughter.)

         Q      Go ahead.

         Q      Go ahead.

         Q      He just shook his head --

         MR. STEPHANOPOULOS:  I don't know his exact words, but
he just wasn't upset.  He shook his head, he kind of had a small
smile on his face and said -- you know, obviously he wished the story
wouldn't have happened, but I don't know what the exact words.  It
wasn't a big deal.

         Q      Is he troubled at all by the candor of a high
administration official

         MR. STEPHANOPOULOS:  No.

         Q         on the fate of his -- this didn't bother him?

         Q      Was the Chief of Staff upset with Panetta?

         MR. STEPHANOPOULOS:  Obviously, we talked about this at
the staff meeting.  And we all wanted to know exactly what happened.
But Mr. Panetta came to the staff meeting this morning, explained
what had happened, and we all accept his explanation.

         Q      Which is what?

         MR. STEPHANOPOULOS:  Exactly what I said before.  He
went through each of the issues.  And when you go through each of the
issues, they all make perfect sense.  I think it was -- some things
were kind of put into a slightly different cast for the article,
including the headline set off in a direction that was not intended
or expressed by the Budget Director.  And so it just is not that big
of a deal.

         Q      Had he said anything to Clinton prior to when they
met last night, that he'd done this interview and basically --

         MR. STEPHANOPOULOS:  No, because I don't think he
thought -- this is just one of those things.  I don't think he
thought after his lunch yesterday that he was going to wake up this
morning and see what he saw.

         Q      He talked to at least two reporters who were
working on the story last night at about 6:00 p.m. after his press
secretary called and said we understand that you are doing a front-
page story about what Leon said.  So he clearly knew yesterday that
this was major story.

         MR. STEPHANOPOULOS:  I'm not meaning to suggest that
this is something that later on he didn't have some indication.  That
is, I'm talking about when he went to the lunch, he just did not
think it was a big deal, and he did not know that it was going to be
as big a deal as it turned out to be.

         Q      But later on, once he knew it was going to be a big
deal, did he call anyone?  Did he call you or anyone and say --

         MR. STEPHANOPOULOS:  Our office certainly knew.  I think
Barry Toiv must have called Dee Dee at some point.  And we certainly
knew by last night that it was coming out.  But there's only --

         Q      George, do these views expressed in this article
reflect that he has expressed here and to the President about the
legislative circumstance on the --

         MR. STEPHANOPOULOS:  I can't comment on his private
advice to the President.

         Q      I won't ask you to put it in those terms.  Do they
reflect views he expressed here at the White House and among the
senior staff about what the situation is and some sense of urgency
that he feels about working on the problem?

         MR. STEPHANOPOULOS:  I think we all feel a sense of
urgency about passing the President's program.  I just can't speak to
his comments in private meetings in the White House.

         Q      Lloyd Bentsen, when asked about this today, said he
found the comments "interesting," and did not take issue with them.
Now, that -- it's hard to tell what that means, but there is --
(laughter) -- there is some suggestion here that perhaps there is
some senior --

         MR. STEPHANOPOULOS:  No headline there.

         Q         former Capitol Hill hands who believe that the
administration's program may be in somewhat more trouble than others
here at the White House feel it is, and have been trying in one way
or another to communicate that view.  Is this consistent with that?

         MR. STEPHANOPOULOS:  We are constantly monitoring the
status of the President's economic package, the status of his health
care package on Capitol Hill.  We understand the challenges that we
face in passing these programs.

         Q      Did McLarty speak to Panetta about his remarks
since last night or today?

         MR. STEPHANOPOULOS:  I think they had a discussion this
morning.

         Q      Do you know what the tenor of the discussion was?

         MR. STEPHANOPOULOS:  Just trying to find out what
happened.

         Q      Was McLarty disappointed or express any kind of --
         MR. STEPHANOPOULOS:  I think he was disappointed in the
story, sure.

         Q      Was he disappointed in Mr. Panetta?

         MR. STEPHANOPOULOS:  He understands what happened.

         Q      There are two theories that keep coming back are,
one, that Panetta did this deliberately knowing it would cause these
headlines because he was unsuccessful at conveying --

         MR. STEPHANOPOULOS:  I think that theory is wrong.

         Q      What about the other theory that he did it
deliberately in order to lower expectations?

         MR. STEPHANOPOULOS:  I think they're both wrong.
(Laughter.)

         Q      Why do you think the first is wrong?

         MR. STEPHANOPOULOS:  Because I just -- I simply think
that he was talking about the issues and that he clearly has
opportunities to express, and he knows that he has opportunities to
express his views in the White House, and he has no complaints over
the ability to express his views in the White House.  And he did not
know that his comments were going to be taken the way they were
taken.  I mean, I think that is clear from anybody who's talked to
him.

         Q      George, will any other Cabinet members being having
lunch with reporters --

         MR. STEPHANOPOULOS:  Sure.  (Laughter.)

         Q      I think this goes to Panetta's record in the House.
Republicans know him as a man who is king of pork.

         MR. STEPHANOPOULOS:  King of what?

         Q      Pork -- P-O-R-K -- a man who believes in getting
pork barrel messages in who's gotten several in for himself.

         MR. STEPHANOPOULOS:  Not Panetta, Sarah.  No, he's --

         Q         million dollars for a language center that was
-- (inaudible) -- some doings like that, and I just wonder if Panetta
had anything to do with the amount of  pork that got into the jobs
stimulus bill.

         MR. STEPHANOPOULOS:  I couldn't find any.

         THE PRESS:  Thank you.

                                 END                    1:46 P.M. EDT

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