    [Public Papers of the Presidents of the United States: William J. Clinton (1993, Book I)]
    [July 2, 1993]
    [Pages 973-976]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Remarks Announcing the Defense Conversion Plan and an Exchange With
    Reporters
    July 2, 1993

        The President. Good morning. On Monday, I leave for Tokyo for the G-
    7 summit, where the world's leading economic powers will seek to build a
    new era of global growth.
        While international summits were once dominated by the drama of the
    cold war confrontation, today we compete in a quieter field, the world
    of global economic competition. Now that the cold war is over, we see
    the opportunity around the world and in this country to reduce defense
    spending rather dramatically and to devote our attention to rebuilding
    our country here at home. But we know now clearly, since defense has
    been coming down since 1987, that this is not an unmixed blessing in the
    short run for Americans here at home.
        Among other things, reduced defense spending means reduced spending
    on defense contracts. And people, therefore, who work in defense plants
    are affected by it. And it is impossible to reduce the number of men and
    women in the armed services without an appropriate reduction in the base
    structure of the United States at home and abroad.
        That is the difficult and painful, but important work the base
    closing commission has had to do. I have received their latest report,
    and I have decided to forward that report on to Congress. As I transmit
    that report to Congress, I am ordering an unprecedented Federal effort
    in the form of a new five-point program to ensure that when we close
    these bases we also open a new and brighter economic future for the
    affected workers and their communities. And this week my administration
    announced that we were going to shut down not only the bases implied in
    the base closing commission, but also some 90 bases overseas, to be fair
    and also because our interests are served by that.
        These five points are as follows: First, we will provide an average
    grant of a million dollars to each community affected by a major base
    closing. Second, we will establish for the first time a single Federal
    coordinator for each community so that all the resources and
    opportunities that attend this reconstruction effort can be made
    available as quickly as possible. Third, we will establish a fast-track
    cleanup program for environmental problems. This has been an enormous
    problem in the past in trying to move bases to commercial uses. Fourth,
    we will establish a fast-tract disposal of Federal property emphasizing
    those uses most likely to create new jobs for the communities affected
    by base closings. And finally, we will have a coordinated effort to pool
    all Federal resources giving all the affected communities easier access
    to Federal assistance. Compared to the past, we will respond more
    quickly, cut redtape more aggressively, and mobilize resources more
    assertively to help these communities so that when they lose their bases
    they do not lose their future.
        In the past, base closings forced communities to cope with a jarring
    economic upheaval without tools or resources. Many bases were heavily
    polluted, the cleanup seemed to take forever.

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    Redtape and bureaucracy frustrated local officials when they sought
    help. And people in the community saw an employer of thousands turn into
    a destroyer of economic security. For communities from coast to coast
    affected by base closings, the Federal Government will now work
    aggressively to help these patriotic citizens, cities, and towns
    prosper. We will help them to use their valuable assets as engines of
    economic growth.
        This Governmentwide effort will cost over $5 billion in the next 5
    years. We will respond rapidly and spend money more wisely. Let me give
    you one vivid example of this new approach. Current law actually
    requires the Federal Government to charge communities full price for
    these closed bases if they are used for job creation and economic
    development. But the Government could give away a base for free for
    recreational uses. That gets it backwards. I believe if a community has
    pulled together and produced a real plan for job creation and economic
    growth, the Federal Government must pitch in by giving that base to the
    community at a discount or, in some cases, even for free.
        Today I am directing the Department of Defense and the National
    Economic Council to write a legislative proposal within 90 days allowing
    us to give job creation and economic development the highest priority in
    the disposition of these assets. This law will be a sizable commitment
    by the Federal Government. These bases are worth, in some instances,
    hundreds of millions of dollars. But it's the least we can do for the
    communities and the people who supported our troops.
        To avoid bureaucratic confusion, one week from now we will appoint a
    team of transition coordinators, senior military personnel who will
    slash redtape and untangle bureaucracy to help these communities.
    Cleanup will proceed faster than before. We've increased the size of
    planning grants to help communities map out their future. And a creative
    worker training program will visit the bases within the next 2 weeks to
    let workers know of their opportunities.
        Even with all these aggressive efforts the closing of a military
    base, as with any large employer, will inevitably be traumatic for the
    host community. And I cannot promise that every job will be saved. But
    this will be a great test for our Nation. Over the past 50 years these
    communities have literally hosted millions of American men and women in
    uniform who were defending our freedom. When we needed them, these
    cities and towns did their duty. When they need us today, we can do no
    less. And I am confident that we will be able to make dramatic progress.
        I'd like now to introduce the Defense Secretary to make a couple of
    remarks. I see you raising your hands. We have four other Secretaries
    who have briefings to give, but after Secretary Aspin speaks, I will
    take a couple of questions on this subject. You'll have access to me I
    think later on other matters, but on this subject I will take a couple
    of questions. But I would like the Secretary of Defense to speak first.

    [At this point, Secretary Les Aspin outlined the defense conversion
    program.]

        The President. Let me make two other quick comments, and then I'll
    take a couple questions.
        This is one program that I think will benefit from the fact that I
    was a Governor who managed a base closing from the other end before we
    went through this. I have had experience with every single problem that
    this five-point program seeks to address, working with a major base
    closing that occurred along the Mississippi River in a county that had
    double-digit employment at the time the base closing was announced. And
    I believe this is a very practical program that will have a huge
    practical difference in the lives of these communities, based on my
    personal experience on the receiving end of the base closing.
        The second thing I want to say is, because I won't be here when they
    speak, is this group of Cabinet officers was here--we had a different
    group yesterday when we announced our program for the Pacific Northwest.
    It will make a big difference for people in these communities. Keep in
    mind a lot of these people have only dealt--the only thing they know
    about the Federal Government is the Defense Department and the bases.
    They have never dealt with the Labor Department, the EPA, HUD,
    Transportation, and Commerce. They don't understand how to deal with all
    these folks at once. And the fact that we're going to make it possible
    for them to access the resources of all these Departments at one time
    and through one person will be a huge boon. It's difficult enough for
    all of you to figure out your way through the maze of the Federal
    Government. For a lot of these folks it is an unending nightmare

    [[Page 975]]

    and a practical impossibility. So I did want to make those two points.
        Yes, in the back. You had your hand up first. Go ahead.

    Defense Conversion Plan

        Q. Mr. President, when you go to Asia, how do you plan to alleviate
    concerns that these closings might restrict the forward basing of air
    and sea forces?
        The President. Well, I plan to make clear statements about our
    commitment to Asia and our involvement in Asia, in both Japan and Korea.
    And I think that we will clearly be able to do that, and it will be more
    explicit when the Secretary of Defense finishes his review.
        Q. Will you address the forward basing question, sir?
        The President. Yes. Go ahead.
        Q. Mr. President, if this is all new money, this $5 billion, and not
    reprogrammed money, how do you expect to get it from Congress in this
    budget climate? Your stimulus package got killed. Everything else has
    been watered down. There isn't money available.
        The President. First of all, I think events will prove that I was
    right to ask for the jobs package.
        Q. Such as today's unemployment numbers?
        The President. We can't discuss that yet. It's not 9:30 a.m.
    [Laughter] But that's not the point. You can't tell anything from the
    month's figures anyway. This thing is moving forward in fits and starts,
    and we're doing a pretty good job of creating jobs, the American economy
    is now. But the global economy dictates a more aggressive response at
    this moment from America.
        But the reason I think that this will work is I think, first of all,
    it's a 5-year program. Secondly, keep in mind, we had allocated in the
    budget, as you remember when we went to the Westinghouse plant, some $20
    billion over 5 years that could be used for the total aggregate amount
    of defense conversion. And some of that money was counted in this. But
    we allocated another $2 billion to environmental cleanup because that's
    a huge deal. We can move these bases in a hurry if we can figure out
    who's responsible for the environmental cleanup and then get about doing
    it. So, the details can be answered.
        I believe the Congress will support this, because I think there's
    enormous bipartisan understanding that you simply cannot take this away
    from communities without reinvesting something in them. And if it is a
    net savings to the Government over the long run, we have to invest
    something back to justify the cut.
        Q. How much will you take?
        The President. Secretary Aspin knows the number.

    Job Creation

        Q. Military downsizing in general is getting the blame for the
    higher unemployment figures which were released an hour ago. Do you
    worry that you're losing the battle on a broader scale on trying to
    create jobs?
        The President. Well, I think that--let me repeat, there are two
    things at work here. In any given month, military downsizing--and keep
    in mind, these decisions we're announcing today will have an impact on
    the economy a year and a half, 2 years from now, some of them even
    longer than that, some of them 3 years from now, the base closing
    commission's recommendations today. So we're giving some advance
    planning time on that. The military cutbacks that are manifesting
    themselves in this unemployment rate were based on decisions made a
    couple of years ago.
        Again, I will say you've got two things at work there. Because of
    the size of the deficit, we are not reinvesting as much as I think we
    should be reinvesting to generate jobs here at home. But the larger
    problem is that two-thirds of our jobs in the last 5 years have been
    generated, or new jobs, have been generated through exports. And with
    Europe down and Japan down--we've got Europe with the lowest economic
    growth in 20 years and Japan with the lowest economic growth in longer
    than that, more than three decades. That's why I'm going to the G-7.
    Because if we don't find a way for all of us to do things together, it's
    going to be difficult to sustain jobs.
        Now, notwithstanding, the country has produced a substantial number
    of new jobs in the first 5 months of this year. We're so far behind in
    coming out of the recession that it's going to be difficult to do unless
    we can have a global strategy of growth so we can start getting some
    jobs out of exports again.
        Q. What is the economic impact of this overall base closing? You
    said that you can't guarantee that everybody will get a job. How may
    people do you--I mean, do you have any esti-

    [[Page 976]]

    mate of how many people are thrown out of work?
        The President. Well, let me say this. What I can tell you based on
    my personal experience with this is that you've got a lot of very
    creative, innovative people out there in these communities. And some of
    these bases have been rumored about now for a couple of years. So in a
    lot of these communities, as a practical matter, you've had the
    community leaders out there imagining the worst for a long time,
    thinking about what they might do, wondering about what they will have
    to do if something like this happens. I am confident, again based on my
    personal experience, if we correct the problems and create the
    opportunities that are embodied in this five-point program, you're going
    to see a lot of economic growth.
        And let me say, the traditional economic analysis is that you can
    create the same number of jobs in the commercial domestic sector that we
    create in defense for roughly half the investment. So that if we can get
    a combination of public effort now and private investment later, we
    might wind up creating more jobs in some of these communities. Some of
    these communities, I think, you've got enormous resources out there in
    these bases, and they'll create more jobs. The only thing I want to say
    is I don't want to over-promise because I can't foresee the next 5 years
    with any kind of precision. I just know that this program is going to
    help these people a lot more than anything that's been done since we
    started defense downsizing.

    President's Tie

        Q. On the G-7, as you're about to head off--by the way, that's a
    very nice tie. [Laughter] I wish the American public could see that tie.
    [Laughter]
        The President. This was designed by a 12-year-old. It's a Save the
    Children tie.
        Q. I remember when you spoke about Gene's ties.
        Q. Do you want this one?
        Q. No, I don't want it.
        The President. If it weren't a gift, I would give it to you.

    Trade With Japan

        Q. Is there any prospect of an agreement with Japan on trade during
    this G-7 summit?
        The President. I don't think I should raise any expectations of that
    just because it's difficult for us to predict now what will happen. I
    can tell you this: We're going to keep talking to them, and in the end
    we're going to get this worked out. I think that the changes now going
    on in Japan over the long run are going to be good for the Japanese
    people and good for the American people. It may be painful for them now,
    but a democracy is an uneven and inexact process. I think that we are
    moving toward a greater integration of the global economy in ways that
    will be good for them and good for us. That's what I believe. But this
    is a transition period for them, and agreements are always more
    difficult in transition periods.
        I'm sorry, I have to go. We have to finish this.

    Note: The President spoke at 9:15 a.m. in the Briefing Room at the White
    House.