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From @lex-luthor.ai.mit.edu:jcma@REAGAN.AI.MIT.EDU Fri May 21 15:22:16 1993
Date: Fri, 21 May 1993 10:50-0400
From: The White House <75300.3115@compuserve.com>
To: Clinton-News-Distribution@campaign92.org
Subject: Press Briefing by George Stephanopolous 5.20.93
THE WHITE HOUSE
Office of the Press Secretary
_____________________________________________________________________
For Immediate Release May 20, 1993
PRESS BRIEFING
BY GEORGE STEPHANOPOULOS
The Briefing Room
1:30 P.M. EDT
THE PRESIDENT: The President's having lunch with the
Vice President now. And I'm just ready to take questions.
Q George, what is the President's strategy for
getting the economic plan through the House and then the Senate in
the aftermath of Senator Boren's defection?
MR. STEPHANOPOULOS: Well, first of all, the President
said he's against Senator Boren's alternative, and it's for a very
simple reason: Senator Boren's alternative is going to lower taxes
on the wealthy and pay for it by cutting Social Security benefits for
millions of seniors. It's going to index capital gains, which will
also have a benefit for the wealthy, but cut the earned income tax
credit, which is a good start on welfare reform, in half. I mean,
this is the kind of policies we had for the last 12 years, and it's
time to turn it around.
Q George, what about Senator Breaux's criticism of
the President's plan. Senator Breaux did not endorse Senator Boren's
plan, but he put out a statement criticizing the administration's
proposal and saying he won't support it as it now fashioned.
MR. STEPHANOPOULOS: I haven't seen those remarks. I
can't comment specifically on the remarks except to say that the
President is going to continue to meet with members of the House and
members of the Senate and sell his package.
Q Isn't there a risk that in trying to reach the
kinds of compromises that will help him in the Senate, the House
coalition could come unraveled?
MR. STEPHANOPOULOS: Well, that's not what's happening
right now. The President went to the House yesterday. The President
said he was sticking with his package. The President said he
believes that he's got a balanced package that brings the deficit
down by raising taxes on the wealthy and having real spending cuts.
And he's going to continue to try to and make that case in the House
and the Senate.
Q George, you explained a moment ago why the
President opposes Senator Boren's plan, but let me ask you about the
other half of Wolf's question, which is what's he going to do about
this? You don't have 11 votes on the Finance Committee right now.
At best you have 10. How are you going to manage to get a plan that
will get out the Finance Committee?
MR. STEPHANOPOULOS: Well, I think this is the beginning
of the process. Let's take first things first.
Number one, we hope to have a vote on this plan in the
House next week. We feel good about the President's visit to the
Democratic Caucus yesterday. The President is going to continue to
work throughout this week in order to get a good majority in the
House and then we're going to move on to the Senate. He's met with
members of the Senate Finance Committee as well, and we'll continue
that. This is just the beginning of the legislative process.
Q Doesn't this seem eerily reminiscent of the
stimulus package where you managed to get it through the House and
you kept saying when we get to the Senate we're going to get it
worked out; and you got to the Senate and you didn't --
MR. STEPHANOPOULOS: No.
Q you were sort of caught between the two sides
and couldn't get out of it.
MR. STEPHANOPOULOS: Well, I don't think so. Obviously,
you have to work on all fronts at the same time. And the President
has had discussions with the Senate Finance Committee, as you know,
last week. He's had discussions continually with members of the
Senate Finance Committee, including Senator Moynihan, Senators Boren,
Breaux, Senator Johnston, many other members of the Senate. And
those discussions will continue, but the President is using those
discussions to point out the merits of his plan. And we have a long
way to go in the process.
Q George, in the light of the flap over the firing of
the Travel Office, has the White House considered any further action,
perhaps reinstatement on leave or anything for these employees?
MR. STEPHANOPOULOS: A reinstatement?
Q On leave.
MR. STEPHANOPOULOS: No, not at this time, no.
Q One other question about -- somewhat travel
related. There stories in the paper today that the President was
delayed on the runway in Los Angeles while he had Monsieur Cristophe
come in --
MR. STEPHANOPOULOS: Another haircut story.
Q to give him a haircut. Earlier he had sat on
the runway at Andrews for 50 minutes while he finished his dinner
with all the necessary personnel attending him. Is the White House
at all concerned that this makes the President look a little foolish
and self-indulgent, this kind of behavior?
MR. STEPHANOPOULOS: No. (Laughter.) It's the short
answer. Just to explain further, I think it's common practice -- as
you know, President Bush would quite often go to the -- and have the
plane on the runway overnight and sleep on the plane. And often
would go early and have it held. And this is --
Q Excuse me --
Q Vice President Bush --
MR. STEPHANOPOULOS: Vice President Bush?
Q Not President --
Q Yes, he did it once.
Q He did it once going --
Q He did it once, but they flew in the middle of the
night.
MR. STEPHANOPOULOS: Okay, well, that's just one point
--
Q And he was in the hangar when --
MR. STEPHANOPOULOS: At Andrews. But just -- on the
L.A. airport, no planes were held up at all.
Q Well, wait a minute, the FAA says that at least two
were.
MR. STEPHANOPOULOS: According -- the information --
there was no hold placed on the air traffic at LAX. There was just
no hold placed on air traffic.
Q So you've checked -- you've seen the wires with the
FAA spokesman saying that two runways were held up and so that --
citing the commuter planes that were 26, 18, 37 minutes late, you're
saying they made that all up?
MR. STEPHANOPOULOS: No, I'm saying that there was no
hold placed, according to our information, there was no hold placed
on the aircraft at LAX.
Q Where does --
MR. STEPHANOPOULOS: I believe it came from the military
--
Q But, George, doesn't this lengthen everybody's day?
I mean, you've all this staff that's got to work; you've got Secret
Service agents; you've got these two Air Force guys at the bottom of
the runway in formation. Everybody's got to stand there and do this,
do what they do for an extra 45 or 50 minutes while this guy gets his
hair done. Doesn't that smack of high-handedness at least.
MR. STEPHANOPOULOS: Again, I don't think so. I mean,
the President has to get his hair cut. Everybody has to get their
hair cut. I mean, if he would have stayed back -- if he would have
stayed back at the hotel, it wouldn't have made any difference at all
in any of the personnel. There are delays, as you know -- I mean,
we're not always happy about them, but there are delays in all of the
President's trips. There's often -- we often get behind. But the
President had to get his hair cut, as most people do. And if it
wouldn't have been done there, he could have -- I suppose could have
had it done back at the hotel, but it wouldn't have made any
difference on the personnel or anything like that.
Q What does it do in terms of his image, however --
that he gets a $200 haircut while sitting on Air Force One? Forget
about whether or not it costs any extra money, is that perceptually,
is that the kind of image he wants to convey to people?
MR. STEPHANOPOULOS: Well, again, I mean, the President
has to get his hair cut like everybody else has to get their hair
cut.
Q Does he have to get his hair cut by Christophe of
Beverly Hills? (Laughter.)
MR. STEPHANOPOULOS: I think he does have the right to
choose who he wants to cut his hair.
Q Yes, we all believe in the right to choose, George.
(Laughter.)
Q Presidents -- get their haircuts on --
MR. STEPHANOPOULOS: I don't know whether other
Presidents ever got their hair cut --
Q I don't --
MR. STEPHANOPOULOS: I'm not -- I can't swear that they
didn't. I don't know that they have.
Q Well, I mean, your statement he's got to get his
hair cut. Bush got his hair cut, too. He got it cut here; he went
up the street; he got it cut on the Hill when he was up there for
something else. Reagan used to get his cut by his favorite guy in
Los Angeles when he was up there for three days of vacation. I mean,
you don't see any difference between sitting on Air Force One for 60
minutes -- with two runways shut down for 60 minutes to get your hair
cut, and a President going somewhat like a normal person goes to get
their hair cut?
MR. STEPHANOPOULOS: I think the President normally gets
his hair cut sometime during the week. It happens at different
places. As you know, he has a very busy schedule. And he just tries
to work it in when he can. That was when we were able to work it in.
Q George, did the President pay the full $200 for the
haircut?
MR. STEPHANOPOULOS: The President and his family have a
personal services contract with Christophe to cover things like this?
Q Would you tell us the amount and --
MR. STEPHANOPOULOS: I don't know -- it covers things
like makeup and hair and they just -- they pay for it.
Q Does he do the President's makeup?
MR. STEPHANOPOULOS: It's for the whole family.
Q Does that cover the President's makeup when he's
made up here for and event?
Q And Socks?
MR. STEPHANOPOULOS: I don't know what -- (laughter) --
Socks. (Laughter.)
Q in the prior administration when Nancy Reagan
obtained the designer dresses on the basis that was not available to
ordinary people. And so to simply say there's a personal services
contract and not give us any details about what it covers or what it
costs invites speculation that he's getting a Nancy Reagan-type deal.
So can you get us some details.
MR. STEPHANOPOULOS: The only details I can give you is
that they have a contract for these kinds of services. That's all I
know.
Q Can you find out --
Q Is there a going rate?
MR. STEPHANOPOULOS: I don't know what the going rate
is.
Q When was this deal inked? (Laughter.)
MR. STEPHANOPOULOS: I don't know the answer to that
either. I know that they used Christophe quite often during the
campaign.
Q Is he still the President of the common man,
George? (Laughter.)
MR. STEPHANOPOULOS: What?
Q still the President of --
MR. STEPHANOPOULOS: Absolutely. If you look at his
economic package, it's a package that's designed to turn this around
and to really make -- get some real benefits for middle-class
America. That's what's important.
Q Getting back to the delays, I just wanted to make
sure -- the point that you said there were no delays. The FAA just
said, from California, just said that there were two arrival delays
-- two commuter planes -- one for 25 minutes, one for 17 minutes, and
that there may have been others, but they don't keep records --
MR. STEPHANOPOULOS: All I know is that there was no
hold placed on the air traffic. As you know, LAX probably has -- I
mean, I don't know the numbers, but it's probably hundreds if not
more planes come in an hour. It wouldn't necessarily be unusual to
have some sort of delays. All I know is there was no official hold
placed on the air traffic.
Q By the military? I mean, is that --
MR. STEPHANOPOULOS: We've gotten that information from
the military.
Q Who would put a hold on it?
MR. STEPHANOPOULOS: I suppose the Secret Service would
do it, but I mean, this is our information.
Q But who would that go through? What I'm getting at
is the credibility of the information you're getting from the
military. Are they the ones who make the decision to hold the
runways or are they just asking around as well?
MR. STEPHANOPOULOS: No, I think they generally make it
with the Secret Service. But I can double-check, but this is -- I
was just told, as I said, that there was no hold placed on any of the
air traffic.
Q Except the two runways were closed.
Q For 56 minutes.
Q I don't know if you put a hold on them --
Q Maybe the FAA does.
Q but two runways were closed.
MR. STEPHANOPOULOS: I can find out about that. I just
don't know anything about that.
Q George, is there any concern that this would seem
to be of a piece of the President's habit of being late for events,
which is meant that people frequently have to wait for him, and the
business with the dinner at Andrews and all of it, that it adds up to
the picture of a man who is to some degree heedless of the
consequences of his personal behavior on others?
MR. STEPHANOPOULOS: Again, the short answer is no.
But, I mean, I think that he is obviously well aware of that. And I
think that generally the President's been doing a better job of being
on time. On these trips, they're packed with a lot of people. The
President spent an awful lot of time out on the playground with the
kids in South Central, and he ran a little bit behind. He had to get
his hair cut. And this was a convenient way to do it. Obviously
we're mindful of --
Q Was this -- had he otherwise planned to have a
haircut and it was scheduled -- what happened? How did this come
about that it would end up this way?
MR. STEPHANOPOULOS: I honestly don't --
Q It's no small thing with a little security and
everything to get some guy like Monsieur Christophe out to the
airport and onto the plane -- who raised all this, do you know?
MR. STEPHANOPOULOS: I don't know that it would
necessarily be all that difficult to arrange. But I don't know
exactly how it happened at the end. I just know that the President
needed to get his hair cut and this was the time he had to do it.
Q Why does the President have an agreement with a man
who is based in Hollywood? He's based in Hollywood, right?
MR. STEPHANOPOULOS: Actually, I think he's opening up a
shop here. (Laughter.)
Q Why do a West Coast deal with someone's who's
across the country?
MR. STEPHANOPOULOS: Again, I don't know all of the
details of the contract he has. I just know it does cover certain
events and certain services. And this is something that he chose to
do, and he's certainly free to do it.
Q Does he fly out here to do it?
MR. STEPHANOPOULOS: I don't know how often he even
comes out.
Q Then why do have a deal?
MR. STEPHANOPOULOS: Because the President chose --
Q George, is he the only person who cuts the
President's hair?
MR. STEPHANOPOULOS: I don't think so.
Q If he's not then, you come back to the original
question -- if he's not the only person who cuts the President's
hair, why did two commuter planes have -- and why did the entire
staff traveling with the President and the press have to be held up
for 45 minutes so that this particular time he could cut the hair?
MR. STEPHANOPOULOS: Again, I think the President needed
to get his hair cut, and he did it at that time.
Q Can I shift subjects here?
MR. STEPHANOPOULOS: Boy, I don't know. Are you sure?
(Laughter.)
Q Back to travel. (Laughter.)
Q As you know, you all are facing a -- already we're
facing a very tight vote in the House on the package because House
members -- Democrats are very nervous about voting for an energy tax
that was going to disappear on the Senate side and they were going to
be hanging out to dry. The question is if Senator Boren and Senator
Johnston, Democrats on Finance, and you know, in the Senate are
saying --
MR. STEPHANOPOULOS: Johnston's not on the Finance
Committee.
Q in the Senate, Finance on the Senate, are saying
now that the BTU tax is dead. And you're still talking about
strategy and the vote next week. I'm curious, what are you expecting
to see now in the House vote? What implications does this have for
the House vote? And what are you doing strategically to try to --
MR. STEPHANOPOULOS: Well, I think we feel good about
where we are in the House after the President's visit yesterday. And
we're going to continue to work with members of the House through the
week right up until the vote. I don't think that the fact that two
Senators expressed their views is decisive in the House or the Senate
necessarily one way or the other.
Q George, what are you telling those people in the
House who are concerned that they're going to get whipsawed by the
Senate, because right now you don't have the votes to get it out of
the Finance Committee, and you're going to have to do something to
move that process, which those House members don't know what it is.
So what are you telling them?
MR. STEPHANOPOULOS: We're telling them what the
President said yesterday. He says, I'm going to go out there and
fight for my package. If you fight with me, I'll fight for you.
That's exactly what he told them.
Q Senator Breaux has indicated that he might be
willing to support a substitute for BTU's -- a gasoline tax or some
other form of transportation tax. And since he is a pivotal vote on
Senate Finance, wouldn't it behoove the administration to reconsider
their position on that and perhaps consider an alternative to the --
MR. STEPHANOPOULOS: The President is not for a gas tax.
Q As you probably know, some of the groups that
oppose your -- the gas tax -- I mean, oppose the BTU tax and some of
the other parts of your package, are running quite extensive
grassroots campaigns in states like Oklahoma. Is the White House
doing anything to counter that?
MR. STEPHANOPOULOS: Well, the White House as you know,
Vice President Gore had a press conference two days ago, met with
organizations who are fighting for the package here. But also they
activate their grassroots networks out in the states and will
continue to do that. Obviously, as you know, the White House can't
directly lobby --
Q The DNC can.
MR. STEPHANOPOULOS: And I suppose the DNC will continue
to work on this package.
Q You're not doing anything -- I mean, you know what
they're -- I mean, they're doing individual Oklahoma taxpayer charts;
they're doing, you know, surveys, some of them somewhat dubious to
individual communities and stuff -- all of it very locally based.
And there doesn't seem to be any White House answer out there.
MR. STEPHANOPOULOS: No, the White House answer is that
that's not the only place it is. As you know, we continually do
local interviews. We make sure that information on the package is
spread out throughout the country. Groups have fanned out throughout
the country and we're working with the members of Congress in their
districts as well.
Q George, are you saying that unequivocally the
President will not alter the BTU tax, that other parts of the tax
package may be up for change, but you are absolutely committed? He
is going to fight all the way through for the BTU tax?
MR. STEPHANOPOULOS: The President is fighting for his
package and that's exactly what he's going to continue to do.
Q Specifically the BTU part of it?
MR. STEPHANOPOULOS: The BTU is part of the President's
package and that's what he's fighting for.
Q But non-negotiable -- except on the fringes in
terms of BTU tax is considered an essential element of this package,
not to be --
MR. STEPHANOPOULOS: The BTU --
Q it may be changed to help out with the vote here
and there but in it's --
MR. STEPHANOPOULOS: The energy tax is an essential
component of the package. The BTU is an essential component of the
package we're going to continue to fight for -- absolutely.
Q Is there room to modify that BTU tax?
MR. STEPHANOPOULOS: Again, this is the legislative
process. We're fighting for our BTU tax. We are not looking for
changes. We are going to go for the vote in the House. We are then
going to move to the Senate and continue to go for a vote on the
President's package in the Senate.
Q But you weren't looking for changes on the ITC
proposal either on the Ways and Means side, and you were willing to
accept that being dropped. I mean, given the political reality --
MR. STEPHANOPOULOS: I don't know what the political
reality is in the Senate until there's a vote.
Q Aren't you concerned with giving some cover to your
supporters on the House side who are afraid of getting --
MR. STEPHANOPOULOS: And we've told them that we're
fighting for the package. The President went there yesterday, and
said if you stand with me, I'll stand with you. And he's going to
continue to do it.
Q But, George, aren't you setting up perhaps a repeat
performance, and David just suggested, of the stimulus defeat by
refusing to budge now with your more moderate conservative members of
your own party, you're in effect setting up a defeat down the road in
the Senate, even if you get it through the House.
MR. STEPHANOPOULOS: Not setting up a defeat. First of
all, we believe we have the best package. We are going to continue
fight for it. We believe we have majorities in the House to support
the President's package. We believe that we have support in the
Senate for the President's package. The Chairman of the Senate
Finance Committee is going to speak today about the President's
package. Obviously, this is the beginning of the process, the
legislative process. We still have a long way to go. But the
President's committed to fight for the broad outlines of his package.
And I would also point out that so far the budget and also in the
progress through the House committees, the bulk of the President's
package has remained in tact. And we're going to continue to fight
for it.
Q George, can I get my question in?
MR. STEPHANOPOULOS: Sure.
Q Five hundred thousand Salvadorans will have their
status in this country suspended by June 30th if the Clinton
administration does not extend their temporary amnesty, which was
extended by the Bush administration.
MR. STEPHANOPOULOS: I'll have to take the question. I
don't have our latest.
Q George, there's an anonymous editorial in the New
York Times today suggesting that the -- not editorial, excuse me --
novice piece, op-ed piece, suggesting that the policy of the
administration should shift toward U.S. troops to protect safe
havens. Is this a consideration -- is consideration being given to
this in any way?
MR. STEPHANOPOULOS: The President's position on ground
troops is quite clear. He said he would only use ground troops to
implement and enforce an agreement that was already reached among the
parties. That position has not changed.
Q Do you know who wrote it?
MR. STEPHANOPOULOS: I wish I did.
Q Is the President -- are you trying to find out who
wrote it?
MR. STEPHANOPOULOS: This just in. The source of the --
the fact that no hold was placed on the aircraft is the tower manager
at LAX.
Q How about is the administration any attempt to find
out who wrote this article?
MR. STEPHANOPOULOS: Again, we're not going to send out
any kind of a witchhunt or anything. We're just going to -- we don't
know.
Q Are you interested in finding out?
MR. STEPHANOPOULOS: I'm interesting in finding out, but
I don't know if there's any extraordinary measures being taken to
find out, no.
Q On another matter, now the investigators have
determined that Iraq was behind the thwarted the attack on President
Bush, and that Bush was indeed the intended target, what does the
United States intend to do?
MR. STEPHANOPOULOS: The investigation is not yet
complete. I have no further comment.
Q But haven't investigators already determined,
though, that Iraq was behind this?
MR. STEPHANOPOULOS: The investigation isn't complete,
no. We have no final conclusions from the investigation at all.
Q Has the President been briefed on this -- on these
preliminary conclusions?
MR. STEPHANOPOULOS: I don't know if he's been briefed
on the preliminary conclusions. But I'm certain he'll receive the
final report.
Q Is there any meeting now scheduled with the
principals or the other --
MR. STEPHANOPOULOS: No.
Q So does that mean that we withhold any action
because you just consider these preliminary conclusions?
MR. STEPHANOPOULOS: No, it means that we are going to
continue our investigation. We are going to conclude the
investigation. And it's just not finished yet.
Q Do you know how long that will take?
MR. STEPHANOPOULOS: I don't.
Q Sessions investigation?
Q George, I'd like to ask you about Mr. Watkins, the
gentleman who fired the Travel Office. There's a wire report today
that, from just a little while ago, that indicates that he has long
ties to Worldwide Travel Inc, the organization to which he is now
giving, at least on an interim basis, the White House's travel
business. Couple of questions. Obviously, are you aware of these
ties? Was he indeed the man who arranged for Worldwide Travel to do
the Clinton campaign travel during the presidential election? And do
you have an qualms about this situation?
MR. STEPHANOPOULOS: Worldwide Travel is the 23rd
largest travel agency in the country. It's a travel agency we used
in the campaign. It's probably the largest travel agency in Little
Rock. It would make sense that we used them in the campaign. They
served us well in the campaign. I would emphasize that this is, as
you know, simply an interim agreement. Requests for proposals for a
competitive bidding process for this travel service will go out over
the next 90 days, and it will be a contract subject to competitive
bid.
Q But does Watkins have a connection with Worldwide
Travel? That was the question.
MR. STEPHANOPOULOS: I don't know what he's talking
about. I just know -- I do know that Worldwide Travel is a large
Little Rock travel agency. I do know --
Q Is it accurate that the woman who is running
Worldwide Travel these days says that she and Watkins are former
colleagues at a bank, that they worked together, that he's a long-
term client, and that he was the man who arranged for Worldwide
Travel to do the Clinton campaign travel arrangements?
MR. STEPHANOPOULOS: Well, David Watkins was the
administrator of the Clinton campaign. He did run those kinds of
activities for the campaign, so it wouldn't be unusual that he would
sign the contract with Worldwide Travel to serve the Clinton
campaign. But I don't know that it's material.
Q And you have no problems with the image of a man
who worked for this organization previously and has ties to it firing
--
MR. STEPHANOPOULOS: Worked with the -- I mean, what
worked with and ties --
Q Excuse me, let me finish my question. If firing
seven people and then giving their work, in essence, at least on an
interim basis, to the organization with which he worked?
MR. STEPHANOPOULOS: I have no problems whatsoever with
after following through on an investigation, having Peat Marwick, an
accounting firm, find sloppy management, bad accounting procedures,
and reason to move forward on a change immediately in the travel
arrangements doing that. At the same time, this in an interim --this
is an interim arrangement to make sure that we can continue with
travel for the time being while we institute a new system which will
have tighter accounting procedures, competitive bids, that will be
fixed.
Q George, could you just take the question of whether
or not Watkins had any financial relationship --
MR. STEPHANOPOULOS: Okay, I certainly will.
Q with Worldwide? That is, did he get any money
from them in any form when he was -- before he was in the White
House? When he was -- at any period so that he has some financial
interest in that firm?
MR. STEPHANOPOULOS: Okay.
Q And secondly, could you also tell us when you'll
release the accounting -- whatever this is -- review --
MR. STEPHANOPOULOS: The Peat Marwick report.
Q report, as we were told yesterday it would be --
MR. STEPHANOPOULOS: I know it's not in final form yet,
it was in draft form. But, yes.
Q When it was in final form.
MR. STEPHANOPOULOS: Yes, I have to find out -- I'll
take the question, but I think --
Q What is the status of the FBI potential, pending,
whatever you want to call it review, investigation --
MR. STEPHANOPOULOS: I think they're going to take the
final report as well and then make further decisions from there.
Q? So they haven't decided yet whether they are
going to actually investigate?
MR. STEPHANOPOULOS: Well, they were -- I mean, I think
that they were part of the discussions on Saturday.
Q How so --
Q How did this -- could you walk us through that,
what exactly happened with that--
MR. STEPHANOPOULOS: I don't have all the details. I
know that they were part of the discussions on Saturday with the
accounting firm. I don't know if they actually had discussions with
members of the travel office, but I know that they were brought in
and that action was taken pursuant to that and that we are going to
deliver the final report to them.
Q When you say action pursuant to that -- I mean,
pursuant to the FBI's involvement, a recommendation by the FBI? What
was their involvement precisely on Saturday? Who asked them to come
in? What was their role? Did they make recommendations --
MR. STEPHANOPOULOS: First of all, I refer you to the
FBI. I will find out who actually called them, but I refer you to
the FBI for their involvement.
Q But they haven't had a formal investigation per se?
MR. STEPHANOPOULOS: I think they're waiting for our --
for the accounting report is the next step.
Q George, this morning we were told in the briefing
that the FBI found that it would "be prudent" to go forward with an
investigation.
MR. STEPHANOPOULOS: And then the next step is making
sure that they get -- there's no change in that. The next step is
making sure they get the final report.
Q Did they mean it would be prudent to go forward
with their investigation, or would it be prudent for the White House
to follow up with its own review? What was the input --
MR. STEPHANOPOULOS: I know that they are going to
review the accounting report from the White House, which is the next
step.
Q But at this point, they have not made a judgment
that there's any criminality that would require them to proceed with
an investigation?
MR. STEPHANOPOULOS: The only next step is -- well, the
next -- they want to review the report from the accounting firm.
They will then make subsequent judgments after reviewing the report
from the accounting firm.
Q different from what were told this morning. We
were told this morning that the FBI is going ahead with an
investigation of these people --
MR. STEPHANOPOULOS: The next step in the investigation
-- this is -- I think you're -- it's semantics here. I mean, the
next step in the investigation is reviewing the accounting report.
And the FBI can choose at any time to stop it at any time. The next
step -- they are open to the next step in the investigation, which is
to review the report of the accounting firm.
Q The way you seem to be phrasing, you seem to be
suggesting that the FBI has not decided for sure that they're willing
to launch an investigation, or --
MR. STEPHANOPOULOS: I really do think we're getting
into semantics here. The next -- their investigation -- the next
step in their investigation is to review the accounting report.
After they review the accounting report, they can then make other
decisions and determinations based on that review.
Q So it would be accurate to say they are already
investigating?
MR. STEPHANOPOULOS: It would be accurate to say that we
have talked to the FBI. They have been part of the discussions.
This is a review and investigation. It would be accurate to say that
they are going to review the accounting report, which is part of an
investigation. Again, I think that this is -- we're getting into
semantics.
Q But what did they do Saturday, then, George? Did
they just sit back and advise the accounting firm on what kinds of
things to look for, or did they actually get their hands on and delve
into this material themselves? I'm a little bit confused --
MR. STEPHANOPOULOS: Part of the problem with this whole
discussion has been that one of the things the accounting firm found
was that there weren't records to go over in many cases. That was
one of the very real problems they discovered. There weren't
accounting procedures of any kind. I do not know precisely what the
FBI did every minute they were here on Saturday.
Q How long were they here? Do you recall that?
MR. STEPHANOPOULOS: I just don't know. I can try and
find out.
Q Was the FBI contacted, George, because criminality
was suspected? Ordinarily the FBI doesn't investigate shoddy
accounting practices.
MR. STEPHANOPOULOS: Again -- I mean, I will find out
exactly why the FBI was contacted. But clearly they came in. They
were briefed. They were made part of this process and they would
like to review the report of the accounting firm.
Q But who called them in?
MR. STEPHANOPOULOS: I assume David Watkins did, and
I'll just double-check.
Q George, despite the strong language you've used to
describe what went on in that office -- you and Dee Dee over the last
two days -- do you have any qualms or regrets about how that language
may have destroyed the reputations and careers of these seven people?
MR. STEPHANOPOULOS: I think that that's your language,
not mine. I think that what --
Q your quotes, George.
MR. STEPHANOPOULOS: That's not true, Deborah.
Q The language you've used, in the judgment of many
in this room, and myself, may have destroyed these people and made it
impossible for them to get jobs like this in the future.
MR. STEPHANOPOULOS: Again, I think if you do a review
of the transcript, I think that that's not true. I mean, I think
most of the inflammatory language was in the questions. In the
answers that were given -- in fact, in Dee Dee's brief yesterday she
said several times that no criminal allegations are being made here
at all. This was simply a matter of mismanagement.
Q George, your correct about that except that there
was a charge of overbilling, which you said -- you think that
happened. And you acknowledged later in the afternoon that you
couldn't establish that that was so. And there's also this: It was
made clear yesterday that only two people had access to or any
control over that bank account -- only two; and that the rest of the
people were deemed to be subject to firing because, well, they'd been
part of the place for a long time; there were too many of them anyway
doing not enough work; and we thought it was time to make a change.
And every time we pressed with questions about what exactly those who
did not have their hands on the bank account had done that had to do
with gross financial mismanagement with which they were all charged,
you -- the answers came from that platform and elsewhere: Well,
there were too many of them anyway; there wasn't enough for them to
do; they were all in one way or another, quote, "involved in this,"
which is a very vague allegation.
And what the question seems to be is, was it fair to
characterize everybody -- all seven of them -- with this gross
mismanagement, financial sloppiness charge, when it is fairly clear
that the bank account was handled by the two senior members of the
team there and nobody else.
MR. STEPHANOPOULOS: They had the signatory
responsibility over the bank account, that is true. There were lax
procedures throughout the office. That is also true. It is a small
office. It is also true that we feel this can be done in a more
efficient manner. There is no question about that. But I think
there is absolutely no question about what was also going on in this
office. And if you review -- and we will try to provide the Peat
Marwick report -- there is no question that there were serious
questions here about the way this office was run, the way the affairs
were being managed. And we believe we can do it in a better way and
in a way that is more appropriate.
Q Do you regret the loss of the institutional memory
of that office -- its contacts around the world and its ability to
perform under difficult circumstances for both the White House and
the press?
MR. STEPHANOPOULOS: I think that's true. But that's
far outweighed by the fact that the office was not being run in a
professional manner and the money was not being handled in a
professional manner.
Q George, speaking of sloppy recordkeeping, I don't
know anyone on the campaign plane who ever got a detailed accounting
of the charges. I think most of us just got a charge on our American
Express bill saying "signature on file," and had to then call up and
hound Worldwide Travel to get some sort of detailed bill. I mean,
did you hear any complaints from reporters about this during the
campaign? And did you look into their accounting procedures at all
before you selected them as an interim travel agency?
MR. STEPHANOPOULOS: Again, we've had no suggestion that
they have problems with the accounting procedures at Worldwide as far
as I know.
Q You didn't hear any complaints from any reporters
during the campaign about being overcharged or being charged for
things that they didn't even know what they were?
MR. STEPHANOPOULOS: I frankly didn't, but I'm certain
that there are mistakes at times. But it wasn't a pattern and
practice, such as was discovered here.
Q Okay. And the other thing is, Worldwide Travel is
referring all press calls to the White House press office. Is that
an arrangement that you made with them?
MR. STEPHANOPOULOS: Not that I know of. But they just
might not feel comfortable talking to the press.
Q I know, but how are they are going to doing
business with the press --
Q But do you feel all right having the White House
Press Office represent a private company?
Q How can this be? They're going to do all our
travel, but -- talking to us? Are they living in the real world
here?
MR. STEPHANOPOULOS: I'll double-check that. I haven't
talked to anybody at Worldwide. I can double-check.
Q Is it appropriate for you to speak in any event for
a private company that --
MR. STEPHANOPOULOS: Well, I don't know that we'd be
speaking for the private company. We were speaking about our
arrangement with that company.
Q What about the basic business questions you might
ask about that company -- I mean --
MR. STEPHANOPOULOS: -- they can choose to answer them
or not.
Q refer it back to you?
MR. STEPHANOPOULOS: It's their choice to answer it or
not.
Q But they say you told them to do that -- not
personally -- the White House Press Office.
Q No, no, no they just referred calls to the White
House Press Office. They didn't say --
Q Well, I don't know what they told you, Susan. I
know what they told me.
MR. STEPHANOPOULOS: I don't know what they told either
one of you.
Q They said that the White House Press Office told
them and that -- they'll give you the number and so forth.
MR. STEPHANOPOULOS: I will check on it, but again, they
can choose whether or not to comment to the press. And we certainly
answer any questions that we can about the business arrangement.
Q Are you speaking for that company? Should we --
MR. STEPHANOPOULOS: No, I do not -- no. No.
Q address business questions about Worldwide to
you?
MR. STEPHANOPOULOS: No. I speak for the President.
This office speaks for the President.
Q George, could you clarify the --
Q morning flight --
MR. STEPHANOPOULOS: (Laughter.) But we will be handing
out right timetables.
Q Could you clarify the whole, if any, Harry Thomason
connection with the charters and where does that fit into this mess?
MR. STEPHANOPOULOS: What's the question?
Q The question is did he complain to someone on the
White House staff about the fact that no other charter companies were
allowed to bid for the services of traveling with the President?
MR. STEPHANOPOULOS: I think other charter companies,
not his, did call him and say that they were not being allowed to bid
on these.
Q Did he call the President?
MR. STEPHANOPOULOS: I don't think he called the
President. I think he had a conversation with people in the Travel
Office.
Q No, I think he had a conversation with --
Q What's his standing to do that?
Q are you saying he had no conversation with
someone --
Q Was he calling up as an -- calling out here, I'm an
FOB, can I --
MR. STEPHANOPOULOS: He was just passing on the
information, and then David Watkins took the appropriate action.
Q Can I ask one more question about the --
Q use Harry Thomason as a conduit to the White
House? I mean is that what you're saying, Bill, that -- I mean --
MR. STEPHANOPOULOS: Bill? (Laughter.)
Q Is that what you're saying -- that he was actually
contacted by other airline agencies because they know that he's a
friend of Bill's and that he can pick up the phone and have access to
the White House?
MR. STEPHANOPOULOS: Well, I mean they were passing on
information and they were saying that they tried to bid on a trip and
they were told that they couldn't bid on the trip --
Q Who was that, pray tell?
MR. STEPHANOPOULOS: I don't know which ones it was.
Q Does he have any financial interest in this?
MR. STEPHANOPOULOS: None. And he's not -- and none of
his companies are going to bid on any --.
Q One of the things that was not made clear yesterday
in any of the venues where this was discussed was whether or not you
thoroughly investigated these charges that other people were not
allowed to bid or that there were --
MR. STEPHANOPOULOS: I think we've had a -- quite a
thorough investigation. There have been questions raised about this
for several weeks. There were also questions raised by employees in
our office who were reviewing the practices of the Travel Office
pursuant to those questions. And before any action was taken we
called in an accounting firm for review of all the practices. That
accounting firm did a very thorough review over several days and
found a pattern of practice that was just simply not acceptable. And
we took action after that investigation.
Q Was anybody from any other airline interviewed as
part of this investigation? Or does this fall under the category as
yesterday's senior administration official admitted, that the stories
of kickbacks were simply hearsay?
MR. STEPHANOPOULOS: Well, again, those questions
weren't necessarily the determining factor in whether the actions
been taking. Questions were raised about the practices. other
questions were raised by employees in the office. After it was
reviewed by the accounting firm, there was certainly enough evidence
developed to decide to take action. And that's exactly what
happened.
Q Beyond that, are you standing by today -- I'm
getting the impression that it's no longer operative that you believe
flatly that we were overbilled as was asserted yesterday from that
podium?
MR. STEPHANOPOULOS: That's not what was asserted
yesterday from the podium.
Q Read the transcript. And it says --
MR. STEPHANOPOULOS: I think there may have been.
Q No. Not what's in the transcript. The transcript
says, we think that there has been some -- a serious overbilling of
the press.
MR. STEPHANOPOULOS: They think has been. I mean we
have made -- there is no final judgment on that yet. I can't tell
you that there hasn't been.
Q But you're not saying that there has?
Q office -- get a refund. (Laughter.)
Q We want a refund.
MR. STEPHANOPOULOS: We are going to continue to review
it, we are going to continue to investigate it. There is not a final
judgment on that. I cannot tell you that there has not been.
Q And can you also --
Q How are you going to know? I mean, the billing
costs included filing space, ground transportation, a number of
things not connected to the air charter, if you can, in fact, put a
price on that, since it was a nonbid situation. How are you going to
know if we were overbilled?
MR. STEPHANOPOULOS: We're going to look through that.
And you compare it to standard costs in an area, and you try to do
your best. Part of the problem, again, is that these records were
not being kept, and that's one of the reasons we took action.
Q Can you respond to the fact that at least two
members of the people who were let go say none of the allegations of
possible wrongdoing were brought up to them prior to their
termination? That they were told that you simply wanted to downsize
the office and reorganize it, and that all of this information about
the FBI and the audits and that sort of thing came to them later in
the day through news reports?
MR. STEPHANOPOULOS: I don't know anything about that.
I don't know what conversations David Watkins has. But I do know
that after the review by the accounting firm, we felt we had to take
action and he did.
Q I hate to interrupt this, but where does the
process stand on the President making a decision about whether or not
to resume nuclear tests?
MR. STEPHANOPOULOS: As you know, he has not made a
decision yet. And the final decision memo has not been placed on his
desk yet, either. I believe there will be further discussions over
the next several days and a little beyond.
Q Is there a -- I mean, there are some events coming
up that would seem to force some action on this.
MR. STEPHANOPOULOS: No hard deadline at this time.
Q George, let me just follow up one more thing on
this.
Q Is he meeting with any members of Congress on this,
particularly any of 25 or 27 senators who have sent him, together or
separately, letters asking him not to resume tests?
MR. STEPHANOPOULOS: I'm certain that he'll talk with
members of Congress. I don't know that he has any scheduled right
now.
Q I need to return one more time --
Q One other question on the nuclear testing before we
get back -- the decision memo on this is due --
MR. STEPHANOPOULOS: I don't think we have a time on it
now.
Q George -- the Supreme Court do that -- (laughter)
--
Q Back one more time on the issue of the Travel
Office, the Wall Street Journal quotes an administration official as
saying that on Saturday in the discussions with the FBI, you -- oh,
oh -- that you found signs of --
Q going to have to share --
Q lavish lifestyles, fancy houses, buying of
racehorses and boats, and other extravagance that their salaries
would not support. Did the White House find that on Saturday, and is
that part of what you are alleging here?
MR. STEPHANOPOULOS: No. I can't say that that stuff
hasn't happened, but it's not part of -- I don't think there's been
any final conclusions --
Q So as far as you know, there's been no evidence of
-- I mean, you have not seen it -- or anybody you've talked to on
this -- evidence of some lavish lifestyle -- double, multiple houses,
racehorses -- that prompted you to start this investigation?
MR. STEPHANOPOULOS: I can't tell you that that's not
happening, but that was not part of the review by Peat Marwick.
Q And as far as you know, no one from the White House
alleged this to the FBI?
MR. STEPHANOPOULOS: I just don't know. Brit, you do
you got there?
Q Santa Fe, New Mexico, AP. The scissors, clippers,
and brush are going on display at Carl Vigil's hair styling salon.
(Laughter.) But there's no hard evidence of Vigil's encounter with
the Chief Executive. Vigil forget to save a few strands of President
Clinton's hair. Quote -- "I should have done that, but I didn't," he
said Tuesday. Vigil spent 45 minutes Monday with the President after
Clinton spoke in Los Alamos. He shaved Clinton's sideburns and neck,
then applied makeup to his face in a small room at the city's
airport. Is that true? (Laughter.)
MR. STEPHANOPOULOS: I'd better not comment on that at
this time. (Laughter.)
Q And we were waiting at Los Alamos for a shave?
Q "I worked on his jawline a little," said Vigil, 30.
"I left a red spot on his face that I couldn't get out." (Laughter.)
The sun had gotten to him a little too much. (Laughter.)
Q This is a serious question. The question is did he
have a haircut Monday in New Mexico before the haircut Tuesday?
MR. STEPHANOPOULOS: You're right. I'd better take this
a lot more seriously than I'm taking it. No, he did not get his hair
cut in New Mexico. I think he's talking there about a shave, from
what I can tell. (Laughter.)
Q Shaved his sideburns and neck --
Q I'd like to make to you a request that I made to
Dee Dee this morning, which is that you, having said that you were
taking a number of questions here that you're going to get back to us
on --
MR. STEPHANOPOULOS: How long was the FBI here? Who
called them? Does Watkins have a financial relationship --
Q My point is, is how you're going to get back to
everyone. Last night it was a case of you, Dee Dee, apparently Mr.
Eller, and the accountant from Peat Marwick holding a whisper session
up in the back for selected reporters as opposed to the whole bunch,
and discussing a number of things out of the report under cover of
anonymity. I'm wondering if you're going to do it somewhat
differently with the things that you get back to us on today.
MR. STEPHANOPOULOS: We will try and get you the factual
questions. And I'm sure if you call Lorraine, she'll have all the
answers. (Laughter.)
Q Does Lorraine -- questions from the entire group --
all --
MR. STEPHANOPOULOS: We will make sure that Lorraine has
all the information based on the questions we took here and if you
call her she will be able to get you the answers.
Q Why not post the answers to questions you take?
Q How about an afternoon briefing --
MR. STEPHANOPOULOS: I don't think we need another
briefing. We'll make sure you have access to all the answers.
Q follow Frank's -- why don't you post answers to
the questions.
Q Yes.
MR. STEPHANOPOULOS: Okay, that's fine. Easy. I think
Lorraine would like that, too.
Q By the way, do you plan another background session
tonight for the nets and the wires?
MR. STEPHANOPOULOS: No.
Q Why not? (Laughter.)
Q He's getting a haircut.
Q You need a haircut, George.
MR. STEPHANOPOULOS: I know. I've got to wait --
Q Leo, and then we'll end this.
MR. STEPHANOPOULOS: Okay.
Q Several weeks ago, Billy Dale said that since
January 20th, he had tried, not once, but many times to set up a
meeting with the White House Press Office and the White House
Correspondent's Association to go over various cost-cutting options
to reduce the price of travel, and had never been able to get that
meeting from you folks. Is that a fact? Have you checked as to
whether --
MR. STEPHANOPOULOS: I mean, he -- David Watkins is
responsible for administration and I think that he -- David Watkins
had several discussions.
Q No, but I'm asking whether it's true that Billy
Dale specifically tried to get a meeting with the White House Press
Office weeks ago to discuss cost cutting possibilities.
MR. STEPHANOPOULOS: Not to my knowledge, no.
Q Can you check on that?
MR. STEPHANOPOULOS: I can tell you that nobody every
contacted me and Dee Dee's saying nobody over contacted her so.
Q Let me ask as a follow-up. You mentioned that in
the course of several days preceding the Saturday meeting members of
your staff had begun to raise questions about the operation of --
MR. STEPHANOPOULOS: Not members of my staff. I said
that members of the administration staff. There were, of course,
people that dealt with --
Q I thought you said Press Office --
MR. STEPHANOPOULOS: No, I didn't say Press Office.
Q Let me just follow up if I may. My question is at
any time prior to Saturday was there an attempt made to call in Billy
and his people and to say what about this, what about that?
MR. STEPHANOPOULOS: Oh, I'm certain there was. I'm
sure David Watkins talked to them often.
Q George, can you document that prior to Saturday,
Watkins had raised specific questions --
MR. STEPHANOPOULOS: I don't know about specific. He
certainly had conversations with them and he went over the stuff with
Billy?
Q With each of the individuals who were fired?
MR. STEPHANOPOULOS: Not necessarily, no.
Q So in other words people were fired without being
given an opportunity to defend themselves?
MR. STEPHANOPOULOS: Well, again, I think that David
Watkins has laid out the rationale for the decision he made. He made
it after a full review of the operations of that office by Peat
Marwick.
Q So you have no reservations about the fairness of
this action?
MR. STEPHANOPOULOS: Well, I believe it was the
appropriate action.
Q George, is serious consideration being given to
disbanding the office entirely, as has been suggested this morning by
one White House official who said that they would turn it over to the
White House Correspondents' Association?
MR. STEPHANOPOULOS: I mean, if you guys want to
petition for that. (Laughter.)
Q No, I'm just asking if that's a serious point of
discussion, because one White House Official went to various members
of the White House Correspondents' Association today and said we'll
just turn it over to you.
MR. STEPHANOPOULOS: Well, if you have suggestions -- I
mean, we're certainly willing to listen to them. It's not what I
think is planned right now.
THE PRESS: Thank you.
END 2:15 P.M. EDT
#74-05/20