G. William Miller Papers, 1977-1981: Official ...

#234

THE SECRETARY OF THE TREASURY WASHINGTON 20220

JAN 12 1981

Dear Bill:

Thanks for sending me a copy of the Annual Report of the Internal Revenue Service for 1980. I have enjoyed very much reading through it and am struck by the number of significant accomplishments we have attained under your and Jerry's service.

The one particularly significant aspect of your combined tenure at the Service which I have come to appreciate more during my own term at Treasury is the unquestioned commitment to administer the tax system fairly The Internal Revenue Service is respected throughout the world as an efficient, well-run organization. Surely this must be the supreme compliment for the public servants and managers like yourself who have devoted their careers to a fair and thoughtful administration of our tax laws.

Finally, your ability to produce this annual report again in record time is a reflection of the enthusiasm and productive efficiency characteristic of the management team at the Internal Revenue Service.

Best wishes and many thanks.

Sincerely,

(Signed) Bin

G. William Miller

Mr. William E. WilliamsActing CommissionerInternal Revenue ServiceWashington, D.C. 20224

SE:SLSkancke:lr:1/8/81

Digitized for FRASER https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

3o2 UGG 3

THE SECRETARY OF THE TREASURYWASHINGTON 20220

January 10, 1981

MEMORANDUM TO: John G. HeimannComptroller of the Currency

SUBJECT: Calendar Year 1981 Comptroller of the CurrencyBudget

The Comptroller of the Currency budget proposal for Calendar Year 1981 has been reviewed, and I approve it as submitted. It is clear that the timely implementation of the revised assessment schedule is critical to your hopes of a balanced budget in 1981. You should take the necessary steps to insure the implementation schedule, and include the assessment revision as a Zero-Based Budget Objective for 1981.

To meet your increased workload demands, I expect that you will depend upon increased productivity and a stricter prioritization of objectives, so that you will not exceed the 3,204 full-time equivalent employment limitation for 1981. Proposed adjustments to this limitation should be submitted in advance to the Department for review and approval as soon as they become firm.

Unlike the 1980 budget, Treasury staff did not participat in the formulation of your 1981 request. This has shortened the time for analysis, and has hampered the review and understanding of your request by the Department. The development of future requests should be coordinated with, and have the involvement of. Treasury budget personnel.


Comptroller of the Currency Administrator of National Banks

Washington, D C 20219

December 12, 1930

Dear Mr. Secretary:

„a s, 30. to«i 3p~ j‘i»-hes;“:t"“-£nsr;t[is8o,riecieaL in average employment for 1981.

The 1981 budoet projects a 13% increase over anticipated 1980 expenses. Substantially all of the grease (87,> can:lSrldOrlllect^theÔctober; im £ay increase of 9 1%

rtP initial salary adjustments that are anticipated as aresult of implementing the recently approved Compensation Program The continued inflationary impact on per diem and

transportation costs is reflected travelSfeor0on-s“r:xamrnra:ai:ens0acc:un?fs fol 93% of ânticipated

increase in this budget icem.

This Office has operated for the past three calendar years at the same OMB-established employment ce^^?Ibilities This hasadditional Congressionallymandate^respon.ibilities. ^Th^

necessitated a stricter pr firiencies have been made m

filings effective January 1, 1981 to recove However, these x:aerrô;ectedtdefioitcofsapproximately_

ILu^X^menrschXlt revenues ^Tn^hâte^ *

TXtitr “eeolên;ianseto -is^th^schedule êffective

Intenth:fSp^^tgUathea0Sfefice on a sound fiscal footing in the


2

future. The present assessment schedule has not been.adjusted since early 1976. The increase in assessments that will result from such a revision is not included in the 1981 revenue projections but will be sufficient to not only balance the budget but also provide a modest increase in the equity accoun

It should be noted that the Comptroller’s equity account as of December 31, 1980 is projected to decline to $33 million, whic represents only a three-month reserve for operating expenses.V7e feel it is important to maintain a sufficient equity reserve to provide for unanticipated contingencies.

We would be pleased to meet with your staff to discuss any questions they might have on the budget and the individual line items in it.

Sincerely,

John G. HeimannComptroller of the Currency

Honorable G. William Miller Secretary of the Treasury Department of the Treasury Washington, D. C. 20220


OFFICE OF THE COMPTROLLER OF THE CURRENCYit jvc a ue and Ex pen a a Suus’.ary

(000)

Total OCC 1978 19791980Esc .

1981Budget

Increase Over 1980 $................ :

(Decrease)Estimate

• • X

Expense s

Salaries and Benefits $66,713 $71 ,796 $81 ,283 $92,212 $10,929 13.4X

Travel-Excluding Education 12,020 12,441 13,656 15,787 2,131 15.6

Education-Including Travel 1,725 2,558 3,307 4,031 725 21.9

Rent and Maintenance 4,275 5,094 6,007 6,506 499 8.3

Of f ice Expenses 2,126 2,475 2,537 2,537 0 -

Other Expenses ••5,365 • • 6,968 ’ 8,170 8,818 648 7.9

TOTAL EXPENSES* $92,724 $101,332 $114,959 $1 29 , 89 1 $14,932 13.OX

Revenue

Assessments 1/ $87,994 $ 94,607 $101 ,400 $108,100 $ 6,700 6.6

Trust Fees 2,970 3,017 3,125 8,162 5,037 161.2

Corporate Fee3 1,007 1 ,597 1 ,356 3,434 2,078 153.2

Interest 2/ 3,362 4,810 5,350 5,000 ( 350 ) (6.5)

Other • 353 •S9?7725

352 ITo4,384

200 200 0Il 11,431 Jl24,896 Il3_L465_ 12.IX

Excess Revenue (Deficit) $ 3 ,001 $ 3,052 $( 3,528) $( 4,995)

l_/ No increase projected in assessments.iy Reflects reduction in liquid equity due to revenue shortfall.

Note: Totals may not add due to rounding


COMPTROLLER OF THE CURRENCY - 1981 BUDGET700 COMPTROLLER OF THE CURRENCY - CONSOLIDATED CODE ACCOUNT CODE AND TITLE

SALARIES5110 REGULAR5111 TEMPORARY & PART-TIME

SALARIES SUBTOTAL5113 OVERTIME511A TERMINAL LEAVE5115 AWARDS5U9 ANNUAL LEAVE ACCRUAL

TOTAL SALARIES5120 BENEFITS

TOTAL SALARIES AND BENEFITSTRAVEL

5160 LODCING ALLOWANCE5161 FIXED DAILY SUBSISTENCE ALLOWANCE5132 AUTO AND OTHER TRANSPORTATION5133 COMMON CARRIER5750 RECRUITMENT EXPENSE5740 REGIONAL STAFF CONFERENCE

TOTAL TRAVELEDUCATION EXPENSE

5140 EDUCATION AND CAREER DEVELOPMENT 5167 EDUCATION TRAVEL

TOTAL EDUCATION EXPENSE

5210 RENT AND MAINTENANCE OFFICE EXPENSE

5220 OFFICE SUPPLIES5221 OFFICE STATIONERY5225 NON CAPITALIZED OFFICE EQUIPMENT 5232 REPPODUCTION SUPPLIES 5310 FRF.ICHT EXPENSE 5410 DEPRECIATION5413 AMORTIZATION - LEASEHOLD 5520 FURNITURE AND MACHINE REPAIRS5550 FURNITURE AND MACHINE RENTAL 5610 REMODELING AND REFURNISHING

TOTAL OFFICE EXPENSE OTHER EXPENSES

5150 RELOCATION5230 CONTRACTURAL PRINTING5240 BOOKS NEWSPAPERS AND PERIODICALS5241 REPORTING SERVICES 6 INVESTIGATIONS5414 AMORTIZATION - COMPUTER SOFTWARE5510 COMMUNICATIONS - POSTAGE5511 COMMUNICATIONS - TELEPHONE 5540 MOTOR VEHICLE EXPENSE5551 DATA PROCESSING5552 WORD PROCESSING EXPENSE5710 INTER-AGENCY SUPPORT PROGRAMS5720 CONSULTANTS AND CONTRACTORS5721 TEMPORARY HELP5730 CONFERENCE EXPENSE5731 REPRESENTATION EXPENSE 5900 MISCELLANEOUS

TOTAL OTHER EXPENSES

APPROVED

81 , 29 5,500 1,278,400

82,573,900 118,900 650,000 200,000 500,000

84,042,800 8 , 169,600

92,712,400

3,576,900 3,720,1004.936.6002.808.600

216.700519.600

15,736,500

1.100.500 2,930,109 4,0 30,600

6,506,000

210.70049.700

156,200 374,800

55,900 714,000 285,30074,300

517.10099,200

2 ,537,200

1,7 51 ,000769.100 224 , 200 32 5 , 700

32.700661.400

1,013,800137.600

2.880.500 247 ,400168.400175.600

57 , 200302,90020,00050,400

8,817,900

TOTAL EXPENSES 129,899,600


4

I»

COMPTROLLER OF THE CURRENCY - 1931 CAPITAL EXPENDITURE BUDGET 700 COMPTROLLER OF THE CURRENCY - CONSOLIDATED

CODE ACCOUNT CODE AND TITLE

1210 FURNITURE AND FIXTURES

1220 MACHINES AND EQUIPMENT

1162 LEASEHOLD IMPROVEMENTS

1170 COMPUTER SOFTWARE

TOTAL EXPENDITURES

APPROVED

243,500

513,100

403,200

110,700

1,275,500


6^o«.:VjAN 9 1981MEMORANDUM FOR.- secretary miller *Thru: Deputy Secretary £jj?£welJ---- _

From: W.J. McDonald, Assistant Secretary (Administration)

Subject: Comptroller of the Currency 1981 Budget

The Comptroller has submitted his Calendar Year 1981 budget for your approval (Tab A). The request has been reviewed by the Office of Budget and Program Analysis which recommends that you sign the attached memorandum of approval to Mr. Heimann (Tab B).

The proposed 1981 budget is for $129.9 million. This is a 13 percent increase over actual 1980 expenses of $114.9 million and a 21 percent increase over the budgeted amount of $107.7 million you approved for 1980. The increase is primarily in personnel costs, travel, education and equipment. These increases are mainly to off-set the impact of inflation, allow for salary adjustments anticipated from the implementation of the approved Compensation Program, and finish procuring word processing capabilities and computer software applications for the regions.

The budget will fund 3,204 full-time equivalent employees (FTE), of which 3,081 are full-time permanent employees. This is an increase of 132 FTE positions from the budgeted 1980 amount, but a decrease of 30 FTE positions from the 1980 actual FTE total of 3,234. The proposed employment level will allow increasing workload demands to be met if continued productivity and stricter prioritization of objectives through the planning and budgeting process are achieved.

The Comptroller in 1981 plans to avoid a deficit similar to the 1980 operating deficit of $3.5 million. Effective January 1, 1981, fees for trust examinations and for processing corporate applications will be raised to recover the costs of performing these activities. However, even with these increases the proposed budget would be in deficit by $5 million. As a result, the Comptroller also plans to revise the assessment schedule which will be effective June 30, 1981. This revision is planned to generate enough revenue to balance the 1981 budget. If the planned implementation is delayed, the Comptroller’s equity will again fund the operating deficit.

Initiator Reviewer Reviewer Reviewer Reviewer Ex. Sec.

SurnameABH7------------STEENBERG

---ABl-----KALLEN

Initials j Date A/«i / /

Hr* OS 3129 Otpanment if Trwwry


Date:

MEMORANDUM FOR: secretary miller

From: Brian Freematf

Subject: USRA Finance Committee Reslution: Settlement with theLehigh & Hudson and the New York and Long Branch.

Attached for your signature as a member of the USRA Finance Committee is a resolution clearing the way for settlements with two more Conrail transferors: the Trustee of the Lehigh and Hudson River Railway Co., for $2.4 million; and the New York and Long Branch Railroad Co., for $7.1 million. The ratios of these amounts to USRA's net liquidation estimates for these lines are roughly comparable to the ratios in the Penn Central settlement. On this basis, the settlements appear reasonable.

Like the Penn Central settlement, the settlements will provide for the immediate redemption of the allocated certificates of value, and such redemptions require the joint determination of the USRA Board and Finance Committee. The attached resolution specifies that the redemption dates for the certificates of value to be allocated to these transferors shall be the closing dates specified in the settlement agreements. The USRA Board passed a similiar resolution at its January 8 meeting.

With these settlements, 5 major claimants remain: Lehigh Valley, Central of New Jersey, Erie Lackawanna, Ann Arbor, and Reading.

Recommendation: That you approve the resolution byexecuting the five attached copies.

Initiator/Iff

Reviewer Reviewer Reviewer Reviewer Ex. Sec.

Surname

Initials/ Date / </r> / / /

Form OS 3129 Department of Treasury


FINANCE COMMITTEE

UNITED STATES RAILWAY ASSOCIATION

RESOLUTION

WHEREAS, the Finance Committee has had described to it the form and terms of proposed settlements with The New York and Long Branch Railroad Company ("NYLB") and John G. Troiano, Trustee of the Property of The Lehigh and Hudson River Railway Company, Debtor ("LHR") of the Valuation Litigation now pending in the Special Court and related claims on terms that the negotiators for the Government Parties deem to be advantageous to the United States; and

WHEREAS, the terms of the proposed settlements as described include redemption of Certificates of Value of the Association to be distributed to NYLB and LHR immediately upon their distribution at closings under the settlements; and

WHEREAS, under Section 306(c)(1) of the Regional Rail Reorganization Act of 1973, as amended, Certificates of Value may be redeemed on a date before December 31, 1987, jointly determined and specified by the Board of Directors of United States Railway Association and the Finance Committee; and

WHEREAS, on January 8, 1981, the Board of Directors of United States Railway Association adopted a resolution determining and specifying the redemption dates for the Certificates of Value to be distributed to NYLB and LHR; and

WHEREAS, the determination and specification of the redemption dates in accordance with the terms of the proposed settlements will assist in the effectuation of those settlements;

NOW, THEREFORE BE IT RESOLVED THAT:

1. The Finance Committee determines and specifies that the redemption dates of the Certificates


-2-

of Value issued and to be delivered to NYLB and LHR pursuant to settlement agreements with the United States and the Association shall be the dates on which, in accordance with the terms of the agreements, such Certificates of Value are issued and delivered. Such Certificates of Value shall be redeemed immediately after the delivery by the Clerk of the Special Court, pursuant to an order of the Court, of instruments evidencing the Certificates of Value.

2. This resolution and the January 8,1981 resolution of the Board of Directors of United States Railway Association constitute the joint specification and determination of the redemption dates for the Certificates of Value to be delivered to NYLB and LHR by the Finance Committee and Board of Directors of United States Railway Association pursuant to Section 306(c)(1) of the Regional Rail Reorganization Act of 1973, as amended

Secretary of the Treasury

(Signed) G. william Miller by _____________________________________

Date: January , 1981

Chairman of the Board of Directors, United,_s£ates Railway Association

DATE: "As of Janurary 10, 1981" Per Blume


THE SECRETARY OF THE TREASURY

WASHINGTON, D. C. 20220

January 10, 1981

Dear Frank:

Your retirement as Chief Engraver is a great loss to the United States. The national coinage and medals that you have designed have won international acclaim and are a source of pride to this country. Your 38 years here have been in the finest tradition of government service.

You have my very best wishes in the years to come and my sincerest thanks for a job well done.

Sincerely

G. WLlliam MillerThe HonorableFrank GasparroChief Engraver of the United States United States Mint Department of the Treasury Philadelphia, Pennsylvania 19106



WASHINGTON 20220

JAN 9 ‘1981

Dear Mr. Minister:

Before leaving my present position I want to express my best wishes as you guide the Israeli economy during these difficult days.

It was a real pleasure to meet with you here in Washington during the annual meetings of the IMF/IBRD. I am disappointed that I did not have the opportunity to visit your country before leaving office. During our meeting in September you invited me to visit Israel to co-chair a meeting of the US-Israel Joint Commission. The press of business in Washington made such a trip impossible for me in the waning days of calendar year 1980. Therefore, I wish to express my sincere regrets about being unable to join with you in chairing the Joint Commission.

I believe the Joint Commission is a valuable and mutually useful vehicle for dealing with economic and financial issues of concern to both nations. As we both know, bilateral issues have a way of becoming irritants if not quickly addressed.High level meetings, such as those of the Joint Commission, often enable us to solve issues before they become irritants.The Commission merits continuing support from both governments. Consequently, I plan to recommend to my successor that he actively participate in the Commission and will suggest that he explore holding a meeting in Israel at an early date.

Best wishes.

Sincerely,

(Signed) G. William Miller

G. William Miller

His ExcellencyYigael HurwitzMinister of Finance of Israel


^*1


WASHINGTON

January 9, 1981

memorandum for the presidentSubject: Highlights of Treasury Activities

1. the markets and the dollarDow Jones Industrial Average

NYSE Composite Index

Prime Rate

Gold (London)

Silver (COMEX)

Today's Close

968.69

76.44

20%

$577.75

$ 15.15

Change Since 1/2

-4.09

-1.82

-1/2%

-$8.55

-$ .46

Stocks after rising sharply early in the week, plungedon profit-taking spurred inârtâ sell^recommendation by a w 1 k compOsite index closedridig^ymOloewer°ondltrieb:Se:dk Trading volume wasêavy^

-dUronW^::dsayWerneeWseteConrdthhe1Ê°fan9dAMEX,

respectively.

-x: sx: i". SLxxxs/xxoxxx »o.hlong-term "-^^ ^ ^ ^ Mn frecono.y in

added X^rXness of the markets. .

“x: ;:"St;:xxat.c,xxx,?x Kixxr

The dollar in London closed ^^the Swiss franc andXXinsXXX X and the Japanese yen.

Today's report of a substantial ^(Ml-A down

aggregates during the wee billion) sparked a majorsxxx'irxxxx; -

of the losses of early today.


-2-

2. CHRYSLER

. The Loan Guarantee Board has informed Chrysler thatJanuary 14 is the last day for a decision by the Board on Chrysler's application for an additional $400 million in loan guarantees. Chrysler has also been told that it must obtain concessions from its workers, suppliers, and lenders which are at least equal to those which Chrysler previously proposed. Negotiations to achieve the concessions are currently underway and are expected to continue through the weekend.

This week, I met with representatives of Chrysler's lenders and will do so again over the weekend to. encourage their cooperation with Chrysler. At his point, it is too early to predict the outcome of negotiations or whether the Loan Guarantee Board will be able to act before the 14th.

G. William Miller


THE SECRETARY OF THE TREASURY WASHINGTON

JAN8 41981

Dear Allan:

Thanks for sharing your thoughts on current international financial and monetary questions and for your suggestions for coordination of views on these important issues.

Your suggestion for consultations on these questions in preparation for next spring's Interim Committee meeting is very helpful. I have asked the Treasury staff to initiate the necessary preparations and will certainly impress upon my successor the importance I attach to these questions and the consultations you propose.

Our earlier discussions on these and other issues facing our two countries have always been most enjoyable and valuable to me. I have g’-oatly appreciated these contacts both officially and personally.

Best wishes.Sincerely,

(Signed| Bill

G. William Miller

The HonorableAllan J. MacEachen Deputy Prime Minister and

Minister of Finance of < Ottawa, Canada


Date: January 6, 1981

MEMORANDUM FOR: Mr. Bergsten

From Kenneth R. Button!

Subject: Letter to Canadian Deputy PM MacEachen

The Secretary would like to reply immediately to Mr. MacEachen’s letter. Please provide a response for the Secretary's signature to Exec Sec by noon Wednesday,January 7.

Specifically, the Secretary would like a very short, positive response which says in essence that he agrees with MacEachen’s suggestion that the G-10 ministers should individual^ consider the issues he raises and should exchange views on them more intensively between now and the Libreville meeting. The reply should also make the points that GWM has enjoyed his previous discussions with MacEachen about these issuei, that GWM is having staff begfn work on the specific issues MacEachen has enumerated, and that GWM will emphasize to his successor the importance he places on the issues and new consultations which MacEachen suggests.

Please limit the circulation of the letter within Treasury and do not discuss it with those outside the Department.

Thanks.


Surname

Initials j Date / / / ■ /

Form OS 3129 Dopartmtflt ot TreasonDigitized for FRASER

https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

1*1 Deputy Prime Ministt Minister o< Finance

Vice-premier mimstre Ministre des Finances

PersonalDEC2 2 1980Mr. G. William Miller,Secretary of the Treasury,Washington, D.C.

My dear Colleague:I am writing to you today to share with you some of my

concerns about the prospects for the future and the adequacy of ^"resent international monetary and financial arrangements.

You recall that in Washington we agreed that the resources nf the Bank and the Fund were adequate for the curren ye that both institutions would need to seek additional resources in 1981 We ilsoAgreed that the private sector should continue to play the -ain role in financial intermediation. While there is cause for some optimism that the "easures now in tr.xn wxll b adequate to deal with the situation in 1981 and 1982 we m guard against adopting too sanguine a view. The risk Vremains of major, unfavourable, surprise developments.

Since our Washington meetings the international economic situation hi: if Anything8 deteriorated. Although exist-g oil stocks are adequate to prevent any immediate overall shortag ,« «Lo? ruleqout the possibility of interruption, and*further large increases in oil prices, ^any Moreoverthe prospect of significant increases in food prices Moreover, there are widespread concerns about the prospects f

about current account balances.

Lying behind these more specific issues are, of course

with the Bank - and their respective program responsibility

Ottawa. Canada K1A OG5


2

and finally, of course, the whole range of issues concerning reform and restructuring that are raised so frequently in the North-South debate and which are often couched in very general tens but seem to call into question the very basis upon which our present institutions have been conceived.

These broader questions raise fundamental political issues which merit the attention of Ministers and my preference would be that they should be addressed by Ministers of Finance.You will appreciate from the above that I feel that we must begin to play a more active role and that it is not too early to start the process of reflection and discussion on such matters, at least within our own ranks.

We will, of course, have an opportunity to review some of these matters when we meet in Libreville next May. But, as is usual on such occasions, time will be short and even though our Deputies may have prepared the ground for our discussions, our attention inevitably will focus on the current issues traditionally addressed in the Interim and Development Committees. Prior to that occasion it might be useful to reflect more broadly on some of the more basic issues, particularly those relating to the work of the Fund and the Bank.

The year ahead will also see a number of other important international meetings whose agendas will include issues on which international financial developments will have a direct bearing.It seems to me we should be considering what contributions we may need to make to these discussions.

I have attached a number of questions -- some general, some specific — which I hope might provide a starting point for our efforts. Others may, of course, wish to raise additional matters and I would certainly welcome your suggestions.

I doubt if it would be particularly easy to convene a meeting of the Group of Ten in advance of Libreville, although I would be delighted to do so if it was thought desirable. My suggestion is that we should individually consider these matters and be prepared to exchange views on such issues during the coming months. I would think this calls for a more extensive exchange of correspondence between us and hopefully more personal contacts. I would certainly be prepared to meet with some of you either individually or together.

Finally, I would appreciate your advice on how we might best call on our Deputies or on the expertise that resides in the Fund and the Bank to help us in this task.


- 3 -

I look forward to having your preliminary reaction to theae auggeations at your earliest convenience. In the meantime may I wish you the very best in this Holiday Season.

»■

Yours sincerely,

Alyan J. MacEachen


A. GENERAL QUESTIONS

1. Are the present arrangements for financial intermediation working satisfactorily? Are they likely to prove adequate for the future? If not, what changes need to be envisaged?

2. Are changes needed in the international monetary system and, if ao, are they likely to be evolutionary or will a more fundamental rethinking of the nature and the basic objectives of the present Bretton Woods institutions be necessary? Will we need new institutions and, if so, how should they be structured?

3. Is the present relationship between the Fund and the private financial markets adequate? If not, what changes are required?Are the private financial institutions likely to need support if they are to continue to play their key intermediation role? If so, what form should this support take: guarantees, back-up lines of credit, joint lending arrangements, associated adjustment undertakings by the borrowers? Should the IMF (and/or the Bank) play a role in this process?

4. Apart from improving the financial intermediation process, does the current energy situation call for new mechanisms to ameliorate the macro-economic and financial difficulties it creates and to promote conservation and supply? What response should we maketo OPEC proposals on new oil pricing structures and on arrangements for protecting their financial assets?

B. SPECIFIC QUESTIONS

1. Borrowing by the IMF

It has been argued that the IMF should play a more active role in the recycling process. As a result Fund lending has beenincreasing sharply and the Staff now are projecting drawings of_some SDR 15 billion for 1980-81. Large amounts of Fund borrowing both from surplus countries and the markets would be needed to finance lending on this scale. This, however, involves a large number of complexities. There are uncertainties about the ability of the Fund to borrow rapidly sufficient amounts. Are we satisfied that the Fund can indeed play the increased role we have entrusted in it? What are implications if difficulties in Fund borrowing arise? Even if 1981 unfolds smoothly is there a danger that the cumulative effect of imbalances will create problems in later years?


- 2

2. IMF Conditionality

Are we agreed that IMF conditionality as it ia applied currently la appropriate and eaaential to the mandate of the Fund or i£ there scope for a further easing of conditionality? In the latter caae what would be the implications for the Fund'a liquidity and the international adjustment process?

3. IMF Surveillance

The persistence of important payments imbalances and differentials in the rates of inflation will continue to place a heavy burden on the adjustment process in the period ahead. Except for deficit countries which draw on its resources, the IMF's ability to promote adjusta^nt remains relatively weak. Surveillance powers of the Fund are still not well defined. Are we agreed that our increasing economic interdependence requires a reinforcement of the Fund's surveillance authority? If so, what new measures are we prepared to contemplate?

4. Quotas -

Despite Fund plans to borrow substantial amounts of money, we are generally agreeq that quotas should remain at the centre of Fund operations. A new round of quota increases will be initiated in 1981. What changes in the relative size of quotas of individual countries and groups of countries are we prepared to contemplate?

5. SDR Issues

A decision on the allocation of SDRs in the next basic period must be made by the middle of 1981. Does the current and prospective international liquidity situation justify the allocation of SDRs? How large an allocation should we contemplate?Can the allocation of SDRs play a useful role in the recycling process? Should we reconsider the question of the SDR/aid link? Are there variants of the link which could possibly be explored further?

6. Decision-Making in the Fund

The LDCs have been pressing for a larger share in decision-making in the Fund. Are there ways by which we could reconcile the wishes of the LDCs with the need to keep the support of the creditor countries and preserve the integrity of the Fund? Can or should this question be dealt with separately from changes in quotas? If not, should changes in the voting power of members basically continue to reflect changes in their relative importance in the world economy?


7. Fund/Bank Relationships

Arc we satisfied with the present policies and working arrangements between the Fund and the Bank? How do we ensure that the breathing spell afforded by the new structural lending facilities in the Bank do not unduly postpone the economic adjustaients that are necessary in borrowing countries? What should the relstionship be between the longer term lending arrangements under the Extended Facility of the Fund and the Bank’s new structural lending program?

8. Global Negotiations

Among the most controversial issues on the agenda of any Global Negotiations are likely to be financial and monetary matters.Since it has been the contention of the industrial countries that the existing institutions are adequate to cope with current problems, whereas the LDCs continue to insist that fundamental changes are necessary, would it be useful to bring together those most directly involved in this sphere at the political level? If so, when should this be done? Would it be desirable, if Global Negotiations get started, to set up a small and informal negotiating group which could act as a sub-group of the Interim Committee?



January 8, 1981

Dear Neil:

Assistant Secretary Downey has written to the Treasury to outline the St. Lawrence Seaway Corporation’s financial condition and to support the Seaway Corporation s request for a further rescheduling of the principal payments on its debt to the Treasury. As you know, interest on the debt was waived by a 1970 amendment to the Seaway Development Corporation Act. Moreover, the original schedule of principal payments was revised in 1978 at the request of the Seaway Corporation and the House Public Works Committee.

The Treasury agrees to accept the schedule of principal repayments that has been proposed by the Seaway Corporation. That schedule, which is enclosed, will reduce annual payments of $2 million in 1981-1985 to align the payments in those years more closely with the Seaway Corporation’s ability to pay. As was the case in the 1978 revision, the payments increase in succeeding years to retain the approximate present value of the obligations.

The HonorableNeil GoldschmidtSecretary of Transportation

Enclosure


Saint Lawrence Seaway Development Corporation Bond Repayment Schedule - Possible Administrative Revision

($ in thousands)

Calendar Year Maturity Date

Present Bond Rodeinption Schcdul

1981 $3,0001982 5,0001983 5,0001984 5,0001985 5,0001986 5,0001987 5,0001988 5,0001989 5,0001990 5,0001991 5,0001992 5,0001993 5,0001994 5,0001995' 5,0001996 5,0001997 5,0001998 5,0001999 5,0002000 5,0002001 5,0002002 3,6002003 2252004 2252005 2252006 2252007 2252003 2252009 2252010 2252011 2502.012 2002013 ___ J?A

$108,976

Proposed Present ValueRevision 0 11%

i U'illt/ $ 1,801' 2,000 1 ,623

2,000 . 1/522,000 1,3172,000 1 ,187;9,50tf 5,0799,000 4,3358,500 3,6888,000 3,5188,000,' 2,8178,000 2,5387,500 2,144

1 ,9316,000 1,3926,000 1,2545,000 9414 ,000 6783,500 5352,500 3442,000 2481,000 111

600 60225- 20225 18225 16225 15225 13225 12225 11225 10250 10200 7

____ 126 4

$1.08,976 $39,139

ROIE: The proposed revision retains the present bond redemption schedule.

same present value as the


12963


WASHINGTON

January 7, 1981

PRIORITY

MEMORANDUM FOR THE PRESIDENT

Subject: Designation of Environmental Resources ofGlobal Importance

We are informed that you have called for an expedited decision on the designation of Natural and Ecological Resources of Global Importance under Section 2—3(d) of Executive Order 12114, particularly the "generic" designation of humid tropical forests, prime cropland, and estuarine and reef ecosystems.

Although we at Treasury are sympathetic to its fundamental intent, we believe the proposed policy is inadvisable for two reasons.

First, we are concerned that the proposal does not define the geographic boundaries of the "generic" ecosystems considered to be of global importance.Federal agencies will therefore be obliged to determine individually whether a foreign geographic area affected by their programs meets the criteria for designation as a "resource of global importance?" if it does, a costly and time consuming foreign environmental document will be required. Few agencies have the financial resources or staff expertise needed to do an adequate job either on the initial determination or on the environmental document. The result is likely to be a policy applied with great inconsistency and/or at excessive cost.

Second, we believe that the proposed designation of "generic" resources could create uncertainty for U.S. exporters in some cases as to the availability of financing from the Export-Import Bank. As a result, the Carter Administration would be seen as having created a new barrier to exports as one of its final acts in office.


2

A unilateral act by the United States is not likely to result in significantly greater protection of "global resources," such as the Amazon jungle, which are located in other countries. We therefore recommend that rather than expediting unilateral action under Section 2-3(d) at this time, the U.S. Government should endeavor to negotiate international agreements to protect humid tropical forests, prime cropland and estuarine and reef ecosystems.

G. William Miller

Approve

Disapprove


January 5, 1979FOR IMMEDIATE RELEASE

Office of the White House Press Secretary

THE WHITE HOUSE

EXECUTIVE ORDER

ENVIRONMENTAL EFFECTS ABROAD OF MAJOR FEDERAL ACTIONS

By virtue of the authority vested in me by the Constitution and the laws of the United States, and as President of the United States, in order to further environmental objectives consistent with the foreign policy and national security policy of the United States, it is ordered as follows:

Section 1.

1_1. purpose and Scope". The purpose of this Executive Order is to enable responsible officials of Federal agencies having ultimate responsibility for authorizing and approving actions encompassed by this Order to be informed of pertinent environmental considerations and to take such considerations into account, with other pertinent considerations of national policy, in making decisions regarding such actions. While based on independent authority, this Order furthers the purpose of the National Environmental Policy Act and the Marine Protection Research and Sanctuaries Act and the Deepwater Port Act consistent with the foreign policy and national security policy of the United States, and represents the United States government’s exclusive and complete determination of the procedural and other actions to be taken by Federal agencies to further.the purpose of the National Environmental Policy Act, with respect to the environment outside the United States, its territories and possessions. . ’’

Sec. 2.

•2-1. Agency Procedures. Every Federal agency taking major Federal actions encompassed hereby and not exempted herefrom having significant effects on the.environment outside the geographical borders of the United States and its terri tori ti es and possessions shall within eight months after the effective date of this Order have in effect procedures to implement this Order. Agencies shall consult with the Department of State and the Council on Environmental Quality concerning such procedures prior to placing them in effect.^ it r Xr*, ;

2-2. Information Exchange. To assist in effectuating the foregoing purpose, the Department of State.and the Council on Environmental Quality in collaboration with other interested Federal agencies and other nations shall conduct

more


2

a program for exchange on a continuing basis of information concerning the environment. The objectives of this program shall be to provide information for use by decisionmakers,_ to heighten awareness of and interest in environmental concerns and, as appropriate, to facilitate environmental cooperation with foreign nations.

2-3. Actions Included. Agencies in.their procedures under Section 2-1 shall esTablish procedures by which their officers having ultimate responsibility for authorizing . and approving actions in one of the following categories . encompassed by this Order, take into consideration in making decisions concerning such actions, a document described in Section 2-4(a): _ . .

(a) major Federal actions significantly affecting the environment of the global commons outside the jurisdiction of any nation (e.g., the oceans or Antarctica);

(b) major Federal actions significantly affecting the environment of a foreign nation not participating with the United States and not otherwise involved in the action;

(c) major Federal actions significantly affecting the environment of a foreign nation which provide to that nation:

* Wr(1) a product, or physical project producing a

principal product or an emission or effluent, which is prohibited or strictly regulated by Federal law in the United States becauseits toxic effects on the environment create a serious public health risk; or

(2) a physical project which in the United States is prohibited or strictly regulated by Federal law to protect the environment against radioactive substances.

(d) major Federal' act i ons outside the- United States, its territories and possessions which significantly affect natural or ecological resources of global importance designated for protection under this subsection by the President, or, in the case of such a resource protectedby international agreement binding on the United States, by the Secretary of State. Recommendations to the President under this subsection shall be accompanied by the views of the Council on Environmental Quality and the Secretary of State. • i ■’ ' ' ‘ .

2-M. Applicable Procedures. (a) There are the.following types of documents to be used in 'connect!on with actions . described in Section 2—• • • -

(i) environmental impact statements (including .generic, program and specific statements); . .

(ii) bilateral or multilateral environmental studies,. , • - relevant or related to the proposed action, by; ’ the United States and one or more foreign nations,

or by an international body or organ!zation in which the United States is a member or participant; or

more


3

(iii)concise reviews of the environmental issues involved, including environmental assessments, •summary^ environmental analyses or^ other appropriate

documents . • 1 c; : v. • - t-

(b) Agencies shall in their’procedures Pr°Vn?! /th preparation of documents described in Section 2 ( ’respect to actions described in Section 2-3,. as follows.

(i) for effects described in Section 2-3(a), environmental impact statement described

• Section 2—4(a)(1); J . .J

anin

’ (ii) for effects described in Section 2-3(b), a document described in Section 2-4(a)(ii) or(iii), as determined by the agency; .

(iii) for effects described in Section 2-3(c), a document described in Section 2-4(a)(n)(iii), as determined by the agency;

(iv) for effects described in Section 2-3(d), adocument described in Section 2-4(a)(i), (n) or (iii), as determined by the agency.

Such procedures may provide that an agency "Ot -prepare a new document when a document described Section 2-4(a) already exists.

(c) Nothing in this Order shall serve to invalidate anv existing regulations.of any agency which have been adopted pursuant to court order or pursuant to Judicial settlement of any case or to prevent any agency from providing in its procedures for measures in addition to those provided for herein to further the purpose of t National Environmental Policy Act and other environmental laws including the Marine Protection Research a?d Sanctuaries Act and the Deepwater Port Act consistent with the foreign and national security policies of t United States. -I . .

fd) Except as provided in Section 2-5(b), agencies taking actionencompassed by this Order shall, as soon as feasible inform other Federal agencies with relevant expertise of the availability of environmental documents prepared under this Order.

Hake

prepared pursuant to those procedures., -.-£ - : - •

In order to avoid duplication of resources, agencies in their procedures shall provide for appropriate utilization, of the resources of other Federal agencies, with relevant., environmental jurisdiction or expertise.., s;;. nnidrr’

2-5*. ‘ Ex em p't ions and' Cons i der at i onlj ? ( a ) di ng•—following act ions _ are .^exempt. from, this . ..

i. t •<’ - - •Section 2-3, Orders •

r -2 ! •»':

by the agency;- . •

’I.’*

more


4

(ii) actions taken by the President;

(iii) actions taken by or pursuant to the direction ofthe President or Cabinet officer when the national security or interest is involved or when the action occurs in the course of an armed conflict;

(iv) intelligence activities and arms transfers; ;. . - * n • • • • •

(v) export licenses or permits or export approvals,and actions relating to nuclear activities except actions providing to a foreign nation a nuclear production or utilization facility as defined in the Atomic Energy Act of 1954, as amended, or a

’ nuclear waste management facility; -

(vi) votes and other actions in international conferences and organizations;

(vii) disaster and emergency relief action.

(b) Agency procedures under Section 2-1 implementing Section 2-4 may provide for appropriate modifications in the contents, timing and availability of documents to other affected Federal agencies and affected nations, where necessary to:

(i) enable the agency to decide and act promptly as and when required;

(ii) avoid adverse impacts on foreign relations orinfringement in fact or appearance_of other nations sovereign responsibilities; or • ;

(iii) ensure appropriate reflection of: .

(1) diplomatic factors; '

(2) international commercial, competitive and . export promotion factors;

(3) needs for governmental or commercial confidentiality;

(4) national security considerations;

(5) difficulties of obtaining information andagency ability to analyze meaningfully environmental effects of a proposed action; an d .

(6) the degree to which the' agency, is involved in or able to'affect a decision to be made.

(c) Agency procedures under Section 2-1 may provi e . for categorical exclusions and for such exemptions in • . u addition to those specified in subsection (a) of this- -• Section as may be necessary to meet emergency circumstances, situations involving exceptional foreign policy.and national security sensitivities and other such special circumstances.In utilizing such additional exemptions agencies shall, as soon as feasible, consult with the Department of State and the Council Environmental Quality._ &

" (d) The provisions of Section 2-5 do"not apply to actions described in Section 2-3(a) unless permitted by law.

i

more


5

Sec. 3-

3-1. Rights of Action. This Order is solely for^the purpose of establishing internal procedures for Federal agencies to consider the significant effects of their actions on the environment outside the United States, its territories and possessions, and nothing in this Order shall be construed to create a catise of action.

3-2. Foreign Relations. The Department of State shall coordinate all communications by agencies with foreign governments concerning environmental agreements and other arrangements in implementation of this Order.

3-3. Multi-Agency Actions. Where more than one Federal agency is involved in an’action or program, a lead agency, as determined by the agencies involved, shall have responsibility for implementation of this Order.

3-14. Certain Terms. For purposes of this Order, "environment" means the natural and physical environment and excludes social,'economic and other environments; and an action significantly affects the environment if it does significant harm to the environment even though on balance the agency believes the action to be beneficial to the environment. The term "export approvals" in Section 2-5(a)(v) does not mean or include direct loans to finance exports.

3_5. Multiple Impacts. If a major Federal action having effects on the environment of the United States or the global commons requires preparation of an environmental impact statement, and if the action also has effects on the environment of a foreign nation, an environmental impact statement need not be prepared with respect to the effects on the environment of the foreign nation.

JIMMY CARTER -

THE WHITE HOUSE, January 4Z 1979

# # #

: •


Date: December 31, 1980

MEMORANDUM FOR: acting secretary carswell

From: Assistant Secretary Bergsten (Initialed) C.Jf.B.

Subject: Designation of Environmental Resources of Global Importance

Eximbank’s General Counsel, Warren Glick, tells us that on Secretary Muskie's recommendation, the President told State to expedite action on designation of environmental resources of global importance under E.O. 12114. (The Executive Order is at Tab 1.)

Although the basic purpose is laudable, the policy as drafted is so vague that it seems likely to create an export barrier and major administrative headaches without necessarily accomplishing its purpose.

Eximbank is strongly o. posing it. Within State,EB Bureau opposed it but was overruled by Muskie. The Commerce Department staff opposes the proposal, but has not been able to get to their principals for a policy decision. USTR may also weigh in to oppose States proposal.

RECOMMENDATION: That you sign the memorandum tothe President at Tab 2.


Surname Barber Lange Munk CornellInitials/Date / /

Form OS 3129 Department of TreasuryDigitized for FRASER

https://fraser.stlouisfed.org Federal Reserve Bank of St. Louis

DEPARTMENT OF THE TREASURY ORDER

Number: 101-5

Subject: Supervision of Bureaus and Offices, Date: JAN 7 1981Delegation of Certain Authority, andOrder of Succession in the Departmentof the Treasury

1. The Deputy Secretary shall be under the direct

supervision of the Secretary.

2. The following officials shall be under the supervision of the Secretary, and shall report to theSecretary through the Deputy Secretary:

Under Secretary for Monetary Affairs

Under Secretary

General CounselAssistant Secretary (Domestic Finance)

Assistant Secretary (Economic Policy)Assistant Secretary (Legislative Affairs)

Assistant Secretary (Public Affairs)

Assistant Secretary (Tax Policy)

Executive SecretaryComptroller of the CurrencyCommissioner of Internal Revenue

Inspector GeneralDirector, Office of Small and Di sadvantaged Business

Utili zationSpecial Assistant (Consumer Affairs)

3. The following official shall be under the supervision of the Under Secretary for Monetary Affairs,

and shall exercise supervision over those officers and

organ!zational entities listed:

TD F 80-01.K (11-78)


-2-

Assistant Secretary (International Affairs)

Deputy Assistant Secretary (Developing Nations) Deputy Assistant Secretary (International Monetary

Affairs)Deputy Assistant Secretary (Trade and Investment

Polic y)

Deputy Assistant Secretary (Commodities and Natural Resources)

Deputy Assistant Secretary (International Economic Analys i s)

Deputy to the Assistant Secretary (Saudi Arabian

Af fai r s)

Deputy to the Assistant Secretary and Secretary of International Monetary Group

4. The following officials shall be under the supervision of the Under Secretary, and shall exercise

supervision over those officers and organizational entities listed:

Assistant Secretary (Administration)

Deputy Assistant Secretary (Administration) Director, Office of Administrative Programs

Director, Office of Budget and Program Analysis Director, Office of Computer Science

Director, Office of Equal Opportunity Program Director, Office of Management and Organization

Director, Office of Personnel

Director, Office of Procurement

Director, Office of the Secretary Equal Employment

Opportunity Staff


-3-

Assistant Secretary (Enforcement and Operations) Deputy Assistant Secretary (Operations)

Deputy Assistant Secretary (Enforcement)Director, Bureau of Alcohol, Tobacco and Firearms

Commissioner of Customs Director, U. S. Secret Service

Director, Federal Law Enforcement Training Center

Director, Office of Foreign Assets Control

Fiscal Assistant Secretary

Deputy Fiscal Assistant Secretary Commissioner, Bureau of Government Financial

OperationsCommissioner of the Public Debt

Treasurer of the United States

National Director, U. S. Savings Bonds Division

Director, Bureau of the Mint

Director, Bureau of Engraving and Printing

5. The following officials shall exercise supervision over those officers and organizational entities listed:

General Counsel

Deputy General Counsel

Legal Division


-4-

Assistant Secretary (Domestic Finance)Deputy Assistant Secretary (Federal Finance) Director, Office of Government Financing

Director, Office of Market Analysis and AgencyFinance

Deputy Assistant Secretary (Financial Institutions and Capital Markets Policy)

Director, Office of Capital Markets Legislation Director, Office of Securities Markets Policies

Deputy to the Assistant Secretary (Corporate Finance)

Director, Office of Corporate Finance and Special Proj ects

Director, Office of Chrysler Finance

Deputy Assistant Secretary (State and LocalFinance)

Director, Office of Municipal Finance

Director, Office of Urban and Regional Economics Director, Office of State and Local Fiscal

Research and Evaluation Director, Office of New York Finance

Director, Office of Revenue Sharing

Assistant SecretaryDeputy Assistant Di rector , Of f ice Director, Office

(Economic Policy)Secretary (Economic Policy) of Financial Analysis of Special Studies

Assistant Secretary (Legislative Affairs)

Deputy Assistant Secretary (Legislative Affairs) Office of Legislative Affairs


-5-

Assistant Secretary (Public Affairs)

Deputy Assistant Secretary (Public Affairs) Office of Public Affairs

Assistant Secretary (Tax Policy)

Deputy Assistant Secretary (Tax Analysis)Director, Office of Tax AnalysisDirector, Office of Industrial Economics

Deputy Assistant Secretary (Tax Legislation) Office of Tax Legislative Counsel (also part of

Legal Division)

Office of International Tax Counsel (also part of Legal Division)

6. The Inspector General shall exercise supervision

over:

Deputy Inspector General (Audit)

Deputy Inspector General (Operations and Investigations)

7. The Deputy Secretary, the Under Secretary for

Monetary Affairs, the Under Secretary, the General Counsel, and the Assistant Secretaries are authorized to

perform any functions the Secretary is authorized to perform. Each of these officials shall performfunctions under this authority in his or her owncapacity and under his or her own title and shall be

responsible for referring to the Secretary any matter on which action should appropriately be taken by the

Secretary. Each of these officials will ordinarily perform under this authority only functions which arise


-6-

out of, relate to, or concern the activities orfunctions of, or the laws administered by or relating

to, the bureaus, offices, or other organizational units over which the incumbent has supervision. Any action heretofore taken by any of these officials in the incumbent’s own capacity and under his or her own title

is hereby affirmed and ratified as the action of the Secretary.

8. The following officers shall, in the order of

succession indicated, act as Secretary of the Treasury in case of the death, resignation, absence, or sickness

of the Secretary and other officers succeeding the

incumbent, until a successor is appointed, or until the absence or sickness shall cease:

A. Deputy Secretary

B. Under Secretary for Monetary Affairs

C. Under SecretaryD. General Counsel

E. Assistant Secretaries, or Deputy UnderSecretaries, appointed by the President

with Senate confirmation, in the order in which they took the oath of office as

Assistant Secretary, or Deputy Under Secretar y.

9. Treasury Department Order No. 101-5, May 16, 1979, is rescinded.


G. William Miller

Secretary


I 2S1X

THE SECRETARY OF THE TREASURY WASHiNGTON 20220

JAN 7 f981

Dear Mary:

Thanks for your letter of December 15 regarding the proposed IDB loan to El Salvador. I understand that you are now fully informed of the circumstances surrounding the U.S. vote on that loan. Let me reiterate that the loan agreement provides that the loan can and will be suspended if El Salvador should fail to meet any of the conditions of the agreement.

I appreciate your continued interest in the Inter- American Development Bank and the important work which is being done by that institution.

Best wishes.

Sincerely,

jgigaed) . Bill

G. William Miller

The HonorableMary Rose OakarHouse of Representatives Washington, D.C. 20515

i



JAN 7' '1981

Dear Henry:

Thanks for your letter of December 15 regarding the proposed IDB loan to El Salvador. I understand that you are now fully informed of the circumstances surrounding the U.S. vote on that loan. Let me reiterate that the loan agreement provides that the loan can and will be suspended if El Salvador should fail to meet any of the conditions of the agreement.

I appreciate your continued interest in the Inter- American Development Bank and the important work which is being done by that institution.

Best wishes.

Sincerely,

(Signed) Bill

G. William Miller

The HonorableHenry ReussHouse of Representatives Washington, D.C. 20515


. -S. WIS.. CHAIRMAN - - ASHLEY. OHIO

8. MOORHEAD. PA.' xNAND J. ST GERMAIN. r’|.

HENRY B. GONZALEZ. TEX JOSEPH G. MINISH. NJ.FRANK ANNUNZIO. Ii i JAMES M. HANLEY. N.Y.FARREN J. MITCHELL. MD WALTER E. FAUNTROY. D C STEPHEN L. NEAL. N.C.

jam« patterson. CALIF. JAMES J. BLANCHARD. MICH. CARROLL HUBBARD. JR KY JOHN J. LAFALCE. N.Y GLADYS NOON SPELLMAN. MD. les aucoin, oreg. david w. evans. ind.NORMAN E. D’AMOURS, N.H.STANLEY N. LUNDINE, N.Y.JOHN J. CAVANAUGH. NEBR

jXrJ*rose OAKAR> °H,°JIM MATTOX, TEX.BRUCE F. VENTO. MINN.DOUG BARNARD. JR.. GAWES WATKINS. OKLA.ROBERT GARCIA, N.Y.MIKE LOWRY, WASH.’

U.s. HOUSE OF REPRESENTATIVESCOMMITTEE ON BANKING, FINANCE AND URBAN AFFAIRS

Ninety-sixth Congress 2129 Rayburn House Office Building

WASHINGTON, D.C. 20515

December 15, 1980

CHaJLm«M STANTON- OHIO CHALMERS P. WYLIE. OHIO STEWART B. MCKINNEY. CONN GEORGE HANSEN. IDAHO HENRY J. HYDE. ILL.RICHARD KELLY. FLA JIM LEACH. IOWA THOMAS B. EVANS. JR.. DELS. WILLIAM GREEN, N.Y.RON PAUL. TEX.ED BETHUNE. ARK.NORMAN D. SHUMWAY. CALIF CARROLL A. CAMPBELL, JR g’c DON RITTER. PA. ’JON HINSON. MISS.JOHN EDWARD PORTER. ILU

225.4247

Honorable William Miller Secretary of the Treasury Washington, D. C. 20220

Hear Mr. Secretary:

be meeting later TisweTôXX^^Tr Bank will

El Salvador to assist that government in imnlPr°P<iSed l0an tO the government of This proposed loan was considered by the Baêarl^ ltS so~called agrarian reform hat time to delay Its decision until thepolS Z J the Bank decided at- fied. We need not relate to you what has han 1‘uatlon 111 El Salvador was ciCi-

countiy. Instead of the rule of law, the rulô/the n, Ulterim 111 that unfortuhsfj rule of the gun seems to be the guiding forc^

States'official rêsentatWe^to Thm bah^311 BeVelopment Bank and the United further consideration of this loan the mB de^ Wmurders are ended and the current polh c^l 1 °f poIiti^ly inspired Ymanner. FaUure of the Un^/Xes to do a orderlyceived m the world community as a vote of 6SS tha” thlS would be per-scale murder and repression. S 3 °f COnfidence “ a regime bent on whole’-

Sincerely,

Henry S. Reuss, airman



WASHINGTON

JAN 7'" 1981

Dear Mr. Yang:

Thanks for your letter United States economy.

requesting material about the

It is a pleasure to provide you with information about our economic system which may be useful to you. I am fowarding to you through the American Embassy in Beijing a number of the publications of various United States Government agencies, including the Treasury Department, and nongovernmental bodies. A list of the publications you will be receiving is enclosed. I hope these documents will suit your interests in the general areas of taxation, banking, and finance at the Federal, state, and local levels as indicated in your letter.

developments , we would about the China's banking

We are very interested in the economic taking place in China today. In this regard appreciate any information you could provide operations of the People's Bank of China and system in general.

Sincerely,


G. William Miller

Mr. Yang PeixinDeputy Director, Research Institute of Finance & Banking People's Bank of China Beijing, China

Enclosure


LIST OF DOCUMENTS

the Seeretary_of_the Treasury on the State 5111^174^57^' Washln9tOn' D-C-/ V.S7 Government Printing

îatiS£i£'l_AEEendix_to_Annual Report of the Senrptarv of n,„ AMI Zthe_stat£of_th77hs777 77b i 5 gt 577 44°-- U.S. Government Printing Office, 1979.

'4444°^ lhe-2nj-ted States Gr- ernment, Washington, D.C. , Oiiice of Management and Budget, 19814 '

The United States Budget in Brief, Washington, D.C., .Oirj.ee of Management and Budget, 1981.

Seecial Analyses Budget of the United States Government. ashing Lon, D.C., Office of Management arid Budget, 1981.

:^KJ7iE§fcr“5S1"’ D-C" °-S' “ “•

°'C-' ”'S- “”»"■=« « ‘>>e

Bulletin Washington, D.C., U.S. Department of the treasury, December, 1980.

Z]}g_ÔffiietÎnternal_Revenue Code (1) , New York. The Pooo^r-ch . Institute of America, Inc., 19804'------ ' Kc,jearch

IL® Code (2), New York. ThP pÂr^bInstitute of American, Inc 7, '"19804----

^3îÊ2fAi_£O5^swê^_rj£_lnternal Revenue, Washing n c U.s, Government Printing Office, 1979. ’ *'

Chicago, Illinois, Commerce Clearing House,

^gnificant Features of Fiscal Federalism, 1979-80, Washinaton n r Advisory Commission on Intergov^S^?tH^lHti3As, 1980

Recession and Inflation: An Economic Washington, D.C., Advisory Commission on Int^F-"

governmental Relations, 1979.

££££*£JUZjiZ-Suburb ̂ cit DistressReIaSons?'l98§:' AdViSOry Co™^sion on Intergovernmental

Washington, D CAdvisory commission on Intergovernmental Relations, 1978. '


-2

Governmental Finances in n , •of the Censusj~19807 “---------- 'wS lln9ton, D.C. , Bureau

State_Government Finances in 1070 r, , .of thef Census, 1979. —------- va£îngton, D.C., Bureau

~ BUreau°ofrthFcensus?C!i8b? 1978~—' Washington, D.C.,

-Metropolitan Areas and CenÎ^-Tggrj------~■ /9' Washington, D.C., BuiVSu^Vf-tte^

of 198th TASSuiÂrynSo?^-^jaf^n.and Monetary Control Act

of"Richmond, 198OT-' ' r^mia, Federal Reserve Bank


•rDec, 5th 1°qc.

Listinfshed Mr. filler, ’’inister of Treasury Ministry of Trepsum;Vasv irrtor.,?.Q»? £T’/'./. 'r'

nEC IE I5 oa tH,o>sr fir: _ r

• t v u • A £ 5.'.s a member of the d^leâticn of the Feiple’s Bank of China to the States ir ’'ay 1orT, headed by our president Mr. Ii Pao-hua, I

v - t’-e honor of ’-avinr visit*-? you 5rg the pleasure of listening to yc-r tali- on th- inflation in the Tnite^ Ptates, which greatly inspired UP 'll.

r>- '•

P„cr~~-5- -c-frr" i" 0"r country hes hear un'er way, as the deput director of the Research Institute of finance anJ Bankinr of the People's Tsp-v cr China, I pay special attention to learning the useful experiences °r other countries for studying a reform of hanking and finance ir our count-/. 7 find th-t T\r'. experience in finance is cf rreat value to us.

r ie s coincidence of the *^ree levels of financial accounting ly federa, s*-t^ or- county ir. +he with +vosc, namely, central,

pr-”i-ci=l an-' co'-r.ty i- Chino, is th- i-co-r +py vr? levied in thewe ere also ccrJ-e~r'1 etir.f the ir+ro-’-ct i <-r of the same tav or. the

7tr + . a,.x_ „r,-sos? inote.= J of p-c'i-1-- over uercporp V- nt-' "msec. ?ytv , j ,• fcr soci-1 relief mdc"l*ure and

o’vc-îo- sre *he main iter? or P.P. finance, "hilc the financing of <--rp-iscs lie wi+v +he âr.ks, orr ba-ks will hereafter play a greater

rol ir. the scê direc*ir"-

Lccordi.ngly, 7 reeves* you to kir-ly furnish m: with a whole set f m-terials, inclrdin-rbocks and pfetiMlts polished bv vour ministry, eg^dinr the syste- of r.C. finance, especirly it? rerulatorv and erolu- ionf-ry aspects. ||tu j? -• |h lOU

oregti

I thank u ir ''’vance. for yofcr-hMuahl-r assistance. ”ith. best regards,

Yens siyjc^rely

rei-xin


I28feo%)rf\


January 5, 1981

Dear Arthur:

Many thanks for sending me a copy of the revised policy statement issued by the Committee to Fight Inflation.

Ariadna and I were away for the holidays but did read the press coverage of your statement.Having your letter and the full text awaiting my return is a pleasant greeting.

Best wishes for the New Year.

Sincerely

G. william Miller

The HonorableArthur F. BurnsChairman, Committee to Fight Inflation American Enterprise Institute for Public

Policy Research 1150 Seventeenth Street, N.W.Washington, D.C. 20036


American Enterprise Institute for Public Policy Research1150 Seventeenth Street, N.W., Washington, D.C. 20036

(202)862-5833

Arthur F. Bums

December 23, 1980

The Honorable William Miller Secretary of the Treasury Department of the Treasury 15th and Pennsylvania Avenue, N.W. Washington, D.C. 20220

Dear Bill

A revised policy statement

will be issued by the Committee to Fight

Inflation tomorrow. I'm enclosing a copy

together with best wishes for the Holiday

Season.

Sincerely

Enclosure


December 18, 1980

COMMITTEE TO FIGHT INFLATION

Arthur F. Burns, Chairman, former Chairman of theBoard of Governors, Federal Reserve System.

Henry H. Fowler, Vice Chairman, former Secretary of the Treasury.

W. Michael Blumenthal, former Secretary of Treasury.

John W. Byrnes, former Ranking Minority Member, Ways and Means Committee, U.S. House of Representatives.

Frederick L. Deming, former Under Secretary of the Treasury.

C. Douglas Dillon, former Secretary of the Treasury.

Paul W. McCracken, former Chairman of the Council of Economic Advisers.

George H. Mahon, former Chairman of the Appropriations Committee, U.S. House of Representatives.

William McC. Martin, Jr., former Chairman of the Board of Governors, Federal Reserve System.

Wilbur D. Mills, former Chairman of the Ways and Means Committee, U.S. House of Representatives.

George P. Shultz, former Secretary of the Treasury.

William E. Simon, former Secretary of the Treasury.

John J. Williams, former Ranking Minority Member, Finance Committee, U.S. Senate.

Mailing address: Sidney L. Jones, Secretary of the Committee to Fight Inflation, American Enterprise Institute for Public Policy Research, 1150 17th Street, N.W., Washington, D.C. 20036


December 18, 1980

Second Policy Statement of the

Committee to Fight Inflation

As the new administration prepares to enter office,

the nation’s economy is undergoing a crisis: the price level

continues to move strongly upward; Interest rates are already

equalling or surpassing the all-time highs established only

nine months ago; and business activity, barely recovered from

the recent recession, may be on the brink of another downturn.

The new recession, if it occurs, will in large part be a

product of the extraordinary levels attained by interest rates;

and those rates, in turn, are the joint product of a resurgence

of inflationary expectations and the recent efforts of the Federal

Reserve to cope singlehandedly with the raging inflation.

It is a sad fact that despite the recession earlier this

year the basic rate of inflation is no lower now than it was

before the recession started. From the standpoint of the nation s

inflation problem, the recession accomplished nothing. And

even if a new recession is avoided in 1981, a robust recovery is

unlikely in view of the strains from which the economy is now

suffering.

Our longer-range economic prospects can, however,

improve dramatically if we go to work seriously on the inflation

problem. The damage that inflation has done is evident all


-2-

around us, and the urgency of dealing with it can hardly be

exaggerated. Inflation has eroded the real value of everyone’s

money earnings and monetary assets. It has deprived people

of effective means of planning for their future and of providing

against the contingencies that arise in life. It has been re

ducing the efficiency of financial markets and of the workshops

of our economy. It has been weakening business innovation and

capital investment by multiplying risks, driving up interest

charges, and causing taxes to be paid on a phantom portion of

profits. It has been weakening the economic security that

Congress sought to build through massive social legislation.

It has been reducing the value of the dollar abroad as well as

at home, thus diminishing our country's power and prestige in

the international arena. In short,•persistent Inflation, besides

making the economy more vulnerable to recessions, has been

undermining our nation's economic, moral, and political strength.

The basic economic requirement at present is to create

confidence that anti-inflation policies will henceforth be pursued

resolutely, consistently, and as far as feasible in ways that

encourage business innovation and investment. The Federal

Reserve has an essential role to play, but It should not be

expected to carry the whole burden of fighting inflation.

Fiscal, regulatory, and structural policies must also be enlisted

in the battle. We must bring the Federal budget under strict

control, and relieve the burdens on the economy imposed by

regulatory and other governmental policies.


-3-

In view of the great danger that inflation poses for

our nation’s future, a number of citizens who have had extensive

governmental experience in handling economic and financial issues

recently established a Committee to Fight Inflation. The Committee

is thoroughly bipartisan in its make-up.. Its members include

five former Secretaries of the Treasury, two former Chairmen of

the Federal Reserve Board, one former Chairman of the Council

of Economic Advisers, one former Under Secretary of the Treasury,

and four former members of Congress who had major responsibilities

in the economic and financial area.

Since June 1980, when the Committee issued its first

policy statement, significant changes have occurred in the

economic and political environment. The Committee has amplified

some of its original recommendations, and it respectfully urges

the President and the Congress to adopt the following nine-point

program:

(1) Prompt passage by the Congress of legislation

authorizing and enabling the President to cut

projected Federal expenditures, including

off-budget outlays, for fiscal year 1981 by

no less than 2 percent of the total.

(2) Encouragement of productivity-enhancing capital

investments by lowering business taxes, effective

in calendar year 1981, and accompanying these

and any other tax reductions with substantial

selective cuts in projected Federal spending for

fiscal year 1982.


-h-

(3) Revision of the Federal budget process,

starting with fiscal year 1983, so as to

require a balanced budget unless a deficit is

authorized by more than a simple majority--say,

two-thirds—of each house of Congress.

(4) Early appointment of a high-level commission to

explore ways of reducing the effects of

entitlement programs, especially those tied to

the cost of living, on the growth of Federal

spend ing.

(5) Support by the President and Congress of

monetary policies designed to reduce over the

next three or four years the growth of the

money supply and of bank credit to rates that

are consistent with a stable consumer price

level.

(6) Reduction of restrictions on competition that

are now imposed by our government; for example,

by introducing a youth differential in minimum

wages in order to increase job opportunities

for teenagers, and by rescinding or amending

the Davis-Bacon Act, which serves to escalate

construction costs.


-5-

(7) Reform of regulations concerned with the

environment, public health, and safety so as

to insure that basic national objectives are

achieved at minimum feasible cost.

(8) Active encouragement of labor—management councils

in individual shops, offices, and stores

throughout the country, so that workers and

managers will jointly seek ways of improving

productivity.

C9) Early decontrol of the price of oil and of

natural gas, despite adverse short-run effects

on the consumer price level, in the interest

of promoting price stability over the longer run

as well as regaining national energy independence.

* * *

The critical problem of inflation did

It has been gathering force for many years,

in the political and philosophical attitudes

the Great Depression of the 1930 s.

not emerge suddenly.

Its roots lie deep

that emerged from

While our inflation is largely a consequence of

government actions, those actions in turn reflect excessive

public demands for the good things of life-rising living

standards, better provisions for income security, more assistance

environment, fullerto the disadvantaged among us, a cleaner


-6-

protection of the public's health and safety, and special

benefits for a growing number of interest groups. Each of

these demands is thoroughly understandable. Together, however,

they release troublesome and persistent inflationary forces,

first by requiring of our government greater outlays than tax

revenues can finance, second, by demanding of the private economy

greater output than its languishing productivity can support.

These forces must be brought under control.

At best, the task of ending inflation will be difficult.

But there is no hope of eventual success unless the American

people come to understand the nature of the problem and are

prepared to support the stern measures required to solve it. We

see some signs that the needed understanding and support are

growing. And we look forward to the time when our nation will

again experience the economic progress that is possible in

an environment of generally stable prices.

z


G. William Miller Papers, 1977-1981: Official ...

Documents

Transcript of G. William Miller Papers, 1977-1981: Official ...