[Weekly Compilation of Presidential Documents Volume 29, Number 26 (Monday, July 5, 1993)]
[Pages 1219-1223]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
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

[[Page 1220]]

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. 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.]


[[Page 1221]]


    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 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.
    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.

[[Page 1222]]

    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 estimate 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.
    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

[[Page 1223]]

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 than 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.