[Weekly Compilation of Presidential Documents Volume 29, Number 30 (Monday, August 2, 1993)]
[Pages 1480-1482]
[Online from the Government Publishing Office, www.gpo.gov]

<R04>
Remarks Following a Luncheon With Business Leaders and an Exchange With 
Reporters

 July 28, 1993

    The President. Thank you very much. Please be seated. First let me 
thank all the business leaders who are here: Felix Rohytan, John 
Johnson, Ron Hall, Harry Buckley, and Mike Walsh for the fine words that 
they said but all those who are also on this platform behind me today. 
They represent companies of all sizes and shapes from Main Street to 
Wall Street.
    They're here united in an unwavering desire and commitment to the 
health of the American economy over continued political rhetoric, to 
productivity over politics, to action over gridlock. They are here, just 
as I am, not because anyone agrees with every last line and jot and 
tiddle of this economic program as it will doubtless come out of the 
conference, but because of what it does and because it does far more 
good than harm; because it brings down the deficit by $500 billion; 
because it has an equal apportionment of cuts and new revenues; because 
the revenues are fairly apportioned. And I was very proud of the 
speakers because the people who are up here with me are the ones who are 
really going to pay all the revenues that others are complaining about. 
And they have determined that they will do it to bring the deficit down, 
to keep interest rates down, to restore the stability and health of the 
American economy.
    We talked a lot today about a few other issues at lunch, and I just 
would emphasize what I have tried to emphasize before, which is that 
over 90 percent of the small businesses in this country will be eligible 
for a tax cut if this plan passes; that working families with incomes 
under $30,000 will be held harmless; the working poor with children in 
their homes who spend 40 hours a week on the job will, for the first 
time, be able to work themselves out of poverty; that we have new and 
important incentives for high tech companies, extension of the 
incentives for research and development, and a real commitment to grow 
this economy.
    I want to say again, as I have on so many other occasions, that for 
every $10 of deficit reduction, $5 is in spending cuts; $4 in new 
revenues from the upper 6 percent of the American work force; and $1 
from middle class families with incomes of between $30,000 and $140,000.
    The people on this platform today represent what makes America 
work--the fact that they have become more involved in this, that they 
are willing to put their own names on the line. And many of them are 
Republicans; some are Democrats; some are independents. They're all 
united here because they're Americans, and they know that we've 
neglected our problems long enough.
    I thank them for their presence here, for their willingness to lobby 
the Congress. And I assure them that together our best efforts, I 
believe, will produce a victory in this economic battle.
    Thank you very much.

Bosnia

    Q. Mr. President, if I could turn your attention to the situation in 
Bosnia. The United States has long promised to provide air support if 
U.N. peacekeepers are threatened. French peacekeepers have now been 
fired on for 2 days in a row. Are you now prepared to deliver your air 
power, and would that alone be enough to deter Serbian aggression?
    The President. We are prepared to fulfill our commitments, yes. The 
procedure is as follows: The United Nations forces in Bosnia must ask 
the Secretary-General of the United Nations for assistance. He will then 
relay that request to NATO, and we would act through NATO. And the 
answer to your question is, we are prepared to move if we are asked to 
provide that assistance by the Secretary-General.
    Will it be enough to deter aggression, to stop the shelling of 
Sarajevo, to bring the parties to the peace table? I don't know. But we 
are prepared to do our part.
    Q. Mr. President, do you feel that the United States and its NATO 
allies already have the assets in place, the air power and the air 
traffic controllers to go ahead with these kinds of air strikes? And 
what does your gut tell you? Do you think the U.S. and its allies will 
be bombing Serbian targets in Bosnia within the next few days?

[[Page 1481]]

    The President. There are a few questions on which a President's 
conversation with his gut should not be made public until the facts 
present themselves. [Laughter] Let me say this: If the request comes, we 
certainly can be prepared. NATO can be prepared within a very brief time 
span.

Middle East

    Q. [Inaudible]--bombing--near silence of the United States during 
this fourth day of bombardment of Lebanon--the civilians being driven 
from--is being interpreted in the Middle East as supportive of these 
assaults. What are you going to do to stop the bombing, and would 
Christopher really be welcome in these outraged capitals?
    The President. The reason I asked--well, I didn't ask; Secretary 
Christopher and I had a conversation, and we agreed that he should come 
home--is because we are so concerned about what is going on in the 
Middle East. I think Hezbollah should stop its attacks, and I think 
Israel should stop the bombardments. I think that Syria should go from 
showing restraint to being an active participant to try to stop the 
fighting. And we ought to do whatever we can to stop the fighting as 
quickly as possible.

Economic Program

    Q. Mr. President, on the subject of the budget, at least eight 
Democratic Senators, possibly as many as 10 or 12, have said that they 
are leaning against voting for it. And five Democratic Senators have 
written to the conference committee chairman and have said that they do 
not want the gasoline tax or any form of energy tax. Do you believe you 
will have to make major compromises, such as eliminating the gasoline 
tax entirely, in order to get it past the Senate? How do you propose to 
get Senator----
    The President. I don't.
    Q. ----Boren and Senator Nunn----
    The President. I don't, because I haven't--no one's answered the 
question that--almost all the ones who say that also say I want $500 
billion in deficit reduction and, by the way, put all the economic 
incentives for growth in. It becomes an arithmetic problem at some 
point. And that's really basically what it is. The fuel tax that's in 
there now is modest. It will not promote a great deal of energy 
conservation. It has very little environmental significance. The real 
question is, is it necessary to get $500 billion in deficit reduction to 
have real tax fairness in terms of what's provided in terms of the 
earned-income tax credit and to have the economic incentives. And no one 
so far has been able to give a credible alternative. So I would say to 
you I think our plan is still the best one on the table.
    Q. You've been meeting one-on-one with them. Have you been able to 
persuade any of the opponents to switch?
    The President. Let me say this: The atmosphere and discussions here 
is not as bad as--if anything, it's a little better than it was before 
the initial votes were taken in the Senate and the House. We'll just 
have to see. I mean, I think in the end a lot of them, whatever the 
situation is, they're going to have to make up their minds whether the 
consequences of voting no for the country are graver than the 
consequences of voting yes. If that's the question, they'll all vote 
yes.

Bosnia

    Q. Mr. President, I just want to clarify on the Bosnia situation. Is 
it your interpretation that if we do engage in air strikes there, that 
we will go not after the source of fire if it can be identified but 
also, if necessary, against other Serbian targets, headquarters, or 
logistical sites? And just as a followup to that, if I could, are you 
concerned that in doing this that we'll send a signal possibly to the 
Moslems that it could be overinterpreted by them that the cavalry is 
coming and maybe now they should hang back a little bit?
    The President. Let me try to answer both questions. First of all, I 
have not yet had a meeting with the Secretary of Defense and the 
Chairman of the Joint Chiefs. I have not been briefed on our options. 
And I don't think I should comment on that at this time.
    Secondly, we have, at the request of President Izetbegovic, agreed 
to have Reg Bartholomew go and participate in the discussions about 
whether a peace agreement can be reached. We have made it clear to all 
the parties all along that we would never seek to impose an agreement on 
the Bosnian Government. We've also made it clear to the

[[Page 1482]]

Bosnian Government that we think that they should always be willing to 
talk, but we're not going to try to impose a settlement on them. I think 
that they know that our position would be that we should continue to 
discuss a peaceful resolution to this.

Middle East

    Q. Do I detect correctly, sir, a slight shift in your attitude 
towards Syria, which you commended yesterday for its role in the current 
trouble in the Middle East? And do you think you might have been too 
hasty yesterday and have you changed your mind?
    The President. No. I don't think anybody thought that Syria was 
exactly behind Hezbollah. I just believe that they could do more. I 
think it's now time for all the players to do more to bring an end to 
the fighting. I think Syria, and Israel, Jordan, the Palestinians, and 
the Lebanese, everybody except these political groups that make their 
living from the continued misery of the Palestinians, everybody else has 
a vested interest in continuing the Middle East peace process, and I 
hope that we can get it going again.

NAFTA

    Q. On the free trade agreement, you are coming to the end of the 
collateral negotiation with Canada and Mexico. I understand they'll be 
meeting here tomorrow--country are talking about--deficit reduction. 
What new facts are you getting from them on the free trade agreement, 
are they backing you on that?
    The President. I think most of them are for it. I certainly hope 
they are, and I believe they are. I'll take one more.

Bosnia

    Q. Mr. President, Boutros-Ghali has said in the last few hours that 
he thinks the NATO air cover should be able to start early next week. 
Based on what you know about it now, and this plan has been around since 
May, how do you calculate the risk? Do you feel like you have any 
obligation to go to Congress before that first plane takes off or to go 
to the public with this?
    The President. I think I should wait. I asked the Secretary of State 
to come home to discuss the Middle East. He is now home. I want to talk 
about Bosnia with him, with the Secretary of Defense, with some others, 
before I decide on what next has to be done. I think that the commitment 
that we have had all along to defend the United Nations forces there if 
they were attacked is, I think, fairly clear and has been highly 
publicized. But of course, if we have to take any action, I will have 
appropriate consultations with Congress and appropriate conversations 
with the American people.
    Thank you.

Note: The President spoke at 2:12 p.m. in the East Room at the White 
House. In his remarks, he referred to Felix Rohytan, senior partner, 
Lizard Freres; John Johnson, chairman and chief executive officer, 
Johnson Publishing Co.; Ron Hall, president and chief executive officer, 
Citgo Petroleum Corp.; Harry Buckley, president and chief executive 
officer, H&R Block Tax Services, Inc.; Mike Walsh, chairman and chief 
executive officer, Tenneco, Inc.; and Alija Izetbegovic, President, 
Republic of Bosnia-Herzegovina.