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TREAS.
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u.s.
Department of the Treasury
PRESS RELEASES
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FOR RELEASE AT 2:30 P.M.
December 3, 1993
,I
CONTACT:
Office of Financing
202/219-3350
TREASURY'S 52-WEEK BILL OFFERING
The Treasury will auction approximately $16,000 million of
52-week Treasury bills to be issued December 16, 1993. This
offering will provide about $1,225 million of new cash for the
Treasury, as the maturing 52-week bill is currently outstanding
in the amount of $14,783 million.
In addition to the maturing
52-week bills, there are $23,430 million of maturing 13-week and
26-week bills, as well as $10,045 million of maturing 36-day and
$4,020 million of maturing 10-day cash management bills.
Federal Reserve Banks hold $9,569 million of bills for their
own accounts in the five maturing issues. These may be refunded
at the weighted average discount rate of accepted competitive
tenders.
Federal Reserve Banks hold $4,268 million of the five
maturing issues as agents for foreign and international monetary
authorities. These may be refunded within the offering amount at
the weighted average discount rate of accepted competitive
tenders. Additional amounts may be issued for such accounts if
the aggregate amount of new bids exceeds the aggregate amount of
maturing bills. For purposes of determining such additional
amounts, foreign and international monetary authorities are
considered to hold $440 million of the maturing 52-week issue.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, washington, D. C. This offering of Treasury securities is
governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356, published as a final rule on
January 5, 1993, and effective March 1, 1993) for the sale and
issue by the Treasury to the public of marketable Treasury bills,
notes, and bonds.
Details about the new security are given in the attached
offering highlights.
000
Attachment
HIGHLIGHTS OF TREASURY OFFERING OF 52-WEEK BILLS
TO BE ISSUED DECEMBER 16, 1993
December 3, 1993
Offering Amount .
. . . . .
Description of Offering:
Term and type of security .
CUSIP number . . . . . . .
Auction date
. . .
Issue date . . .
...
Maturity date . . . . .
original issue date . .
Maturing amount. . .
...
Minimum bid amount
Multiples . . . . . . .
Submission of Bids:
Noncompetitive bids
$16,000 million
364-day bill
912794 M2 7
December 9, 1993
December 16, 1993
December 15, 1994
December 16, 1993
$14,783 million
$10,000
$1,000
Accepted in full up to $1,000,000
at the average discount rate of
accepted competitive bids.
(1) Must be expressed as a discount rate
with two decimals, e.g., 7.10%.
(2) Net long position for each bidder
must be reported when the sum of the
total bid amount, at all discount
rates, and the net long position are
$2 billion or greater.
(3) Net long position must be reported
one half-hour prior to the closing
time for receipt of competitive bids.
competitive bids
Maximum Recognized Bid
at a single yield
35% of public offering
Maximum Award .
35% of public offering
. .
Receipt of Tenders:
Noncompetitive tenders
competitive tenders .
.
payment Terms . . . .
. . .
Prior to 12:00 noon Eastern Standard
time on auction day.
Prior to 1:00 p.m. Eastern Standard
time on auction day.
Full payment with tender or by charge
to a funds account at a Federal
Reserve bank on issue date.
_
UBLIC DEBT NEWS ~~~
.
~I
DC2.dnmenl of the Treasury •
=OR ~MMEDIATE RELEASE
December 6,1993
Bureau of the Public Debt • \'·ashing-ron. DC 20239
CONTACT: Of:ice of
2C2-2:"9-3350
1 •
RESULTS OF TREASURY'S
AUCT~ON
O?
13-~EK
EIL~S
Tenders for $13,518 f trii11ion of· li"week bills to ce issued
9, 1993 and to mature March 10, 1994 were
accepted today (CUSIP: 912794J47).
Dec~~er
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Discount
Rate
Low
High
Average
Investment
Rate
3.10%
3.12%
3.11%
3.17%
3.19%
3.18%
Price
99.216
99.211
99.214
Tenders at the high discount rate were allotted 6~
The investment rate is the equivalent coupon-issue
TENDERS RECEIVED AND ACCEPTED (in thousands)
Received
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
-
-
-
Accented
~
$58,120,410
$13,517,728
$53,111,892
1,275,441
$54,387,333
$8,509,210
',275,441
$9,784,651
2,771,555
2,771,555
961,522
$58,120,410
961,522
$13,517,728
An additional $85,678 thousand of bills will be
issued to foreign official institutions for new cash.
LB-539
~
?i~a~cing
y~elQ.
UBLIC DEBT NEWS
Depanmem ot' the Treasury •
FO~ IMwS=:A':'E/RELE~E
Dec ~-~~~
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.
OF TREASURY'S
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Te~ce~s for
Dec~mbe~ 9, 1993
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AUC~:CN
d
--- - 26-'~~~ '::.l...L_:::
OF
$13,407 miIlion of 26-week
and to mature June 9, 1994
accented :cday (CUSIP: 912794K94).
Rk~GE
bi~ls
we~e
0= ACCEPTED
BIDS:
CO~ETIT~
:':ow
::i.gh
Average
Discount
Rate
3.26%
3.27%
3.27%
Inves :::-.en c
Rate
3.36%
3.37%
3.37%
98.3=2
98.347
98.347
Tence~s at the high discount ra:e were allotted 44%.
The investment rate is the equivalent coupon-issue v:"eld.
TE~uERS
RECEIVED
TOTALS
AND
ACCEPTED (in
Received
$60,013,878
Acceoted
$J..3,406,909
$55,146,37:
917.229
$56,063,600
--c .!O""
_
L
$8 ,:J.jJI
i
9 7.229
3,100,OOC
3,100,000
850.278
$60,013,878
850.272
$J..3,406,909
Type
Com~etitive
Noncomnetitive
St:.btotal, Public
Reserve
Fore:'gn Official
:::scitutions
TOTALS
Fede~al
thousa~ds)
c .!t:;~..... ,
$ -',-_
--
6-::'~
An ajditional $75,922 thousand of bills will be
issued co foreign official institutions for new cash.
LB-540
1- ,_ ,
FOR IMMEDIATE RELEASE
Text as Prepared for Delivery
.December 7, 1993
STATEMENT OF TREASURY SECRETARY LLOYD BENTSEN
APPOINTMENT OF EUAY BOWRON AS SECRET SERVICE DmECTOR
It gives me great pleasure this afternoon to announce the appointment of Eljay
Bowron as the new director of the Secret Service. The position has been vacant for two
months since I asked John Magaw to help Treasury by becoming director of the Bureau
of Alcohol, Tobacco and Firearms.
The Secret Service is a critically important component of the Treasury
Department's law enforcement team. It was created after the Civil War, and it has
played an increasingly important role in our criminal justice system. The men and
women who work for the Secret Service -- both in the United States and abroad -- have
established a respected tradition of professionalism.
Most Americans probably know of the agency because of its role in protecting our
presidents, candidates and visiting foreign Heads of State. This is a crucial assignment,
but the Secret Service has a much larger role than that. It investigates currency
counterfeiting, credit card fraud, and fraud against our financial institutions. This aspect
of the Secret Service's work takes on even more significance in an era when criminals
are becoming more and more sophisticated and have access to the latest technology.
There is a tradition in the Secret Service of selecting directors from the career
service, and the Clinton Administration is continuing that tradition today.
I'm delighted to announce that Assistant Director Bowron will serve as the 18th
Director of the Secret Service. My staff and I reviewed the backgrounds of dozens of
candidates and interviewed ten. I believe that Eljay Bowron is the right choice for this
critical bureau in challenging times. He's intelligent and energetic, and he has nearly 20
years of seasoning at a number of challenging posts throughout the Secret Service. Eljay
has committed his life to fighting crime on the streets and in the boardroom. He knows
that more often than not financial crime hits people who can least afford it. He has real
world experience and a hometown heart.
(MORE)
LB-541
2
One of the things that struck me when we interviewed Mr. Bowron was his
commitment to strengthening the career development path for Secret Service agents.
That's not surprising when you consider that his family and his wife's family have made
careers in law enforcement. His father and brother both served as police officers in
Detroit, Eljay began his career there, his father-in-law was a Detroit policeman, and his
two brothers-in-law are also in law enforcement.
I have discussed the appointment with the President and he met with Mr. Bowron
this morning at my request. The President and I are confident that this appointment will
provide the Secret Service with the quality leadership it needs to perform one of the
most challenging jobs in law enforcement.
Congratulations, and since you're turning 43 next month, let me wish you an early
happy birthday.
-30-
FOR IMMEDIATE RELEASE
December 7, 1993
Contact: Peter O'Brien
202-622-2960
TREASURY ANNOUNCES NEW SECRET SERVICE DIRECTOR
Treasury Secretary Lloyd Bentsen today announced the appointment of E1jay Bowron
as the new Director of the United States Secret Service. Mr. Bowron succeeds former
Director John Magaw, currently the Director of Treasury's Bureau of Alcohol, Tobacco &
Firearms.
Prior to being named Director, Mr. Bowron was Assistant Director of the Secret
Service for Protective Operations, responsible for the overall planning and implementation of
the protective operations for the President, Vice President, and visiting heads of state. He
has also served as the Special Agent in Charge of the Atlanta field office; Deputy Assistant
Director, Office of Investigations; and Deputy Special Agent in Charge, Intelligence
Division.
"Most Americans probably know of the Secret Service because of its role in
protecting our presidents, candidates, and visiting foreign heads of state. This is a crucial
assignment, but the Secret Service mission has a much larger role than that," Bentsen said.
He noted that Eljay also will oversee the agency's efforts to investigate currency
counterfeiting, credit card fraud, and fraud against financial institutions. "This aspect of the
Secret Service's work takes on even more significance in an era when criminals are
becoming more and more sophisticated and have access to the latest technology," Bentsen
said.
Mr. Bowron grew up in Detroit and comes from a family of law enforcement
officers. His father and brother served as Detroit police officers, as did he for 13 months
early in his career. His appointment continues a long tradition in the Secret Service of
selecting directors from the career service.
-30LB-542
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DIRECfOR EWAY":BOWRON
UNITED STATES SECRET SERVICE
Mr. Bowron was appointed as the 18th Director of the U.S. Secret Service on
December 7, 1993.
Mr. Bowron's career with the Secret Service began in July 1974. Prior to being
named Director, he served as Assistant Director, Protective Operations, responsible for
the overall planning and implementation of the protective operations for the President,
Vice President, and visiting Heads of State.
Mr. Bowron held a number of other postitions, including Special Agent in Charge
of the Atlanta Field Office; Deputy Assistant Director, Office of Investigations; and
Deputy Special Agent in Charge, Intelligence Division. Early in his career, he also
worked in the Chicago and Houston field offices.
Mr. Bowron grew up in Detroit and comes from a family of law enforcement
officers. His father and brother served as Detroit police officers, as did he for 13 months
early in his career.
Mr. Bowron holds a B.S. in Criminal Justice from Michigan State University
(1973). He was born on January 2, 1951, and is married with one son.
-30-
FOR RELEASE AT 2:30 P.M.
December 7, 1993
t
L..
CONTACT:
' .•••••••
I
~,...
:
,~_ ~
Office of Financing
202/219-3350
\j
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $26,000 million, to be issued December 16,
1993. This offering will result in a paydown for the Treasury of
about $11,500 million, as the maturing bills total $37,495
million (including the 36-day cash management bills issued
November 10, 1993, in the amount of $10,045 million and the 10day cash managment bills issued December 6, 1993, in the amount
of $4,020 million).·In addition to the maturing 13-week, 26-week,
36-day, and 10-day bills, there are $14,783 million of maturing
52-week bills. The disposition of this latter amount was
announced last week.
Federal Reserve Banks hold $9,569 million of bills for their
own accounts in the maturing issues. These may be refunded at the
weighted average discount rate of accepted competitive tenders.
Federal Reserve Banks hold $4,703 million of the maturing
issues as agents for foreign and international monetary
authorities.
These may be refunded within the offering amount
at the weighted average discount rate of accepted competitive
tenders. Additional amounts may be issued for such accounts if
the aggregate amount of new bids exceeds the aggregate amount
of maturing bills. For purposes of determining such additional
amounts, foreign and international monetary authorities are
considered to hold $4,263 million of the original 13-week'and
26-week issues.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C. This offering of Treasury securities
is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356, published as a final rule on
January 5, 1993, and effective March 1, 1993) for the sale and
issue by the Treasury to the public of marketable Treasury bills,
notes, and bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
LB-543
HIGHLIGHTS OF TREASURY OFFERINGS OF WEEKLY BILLS
TO BE ISSUED DECEMBER 16, 1993
December 7, 1993
Offering Amount .
.
.
.
.
Description of Offering:
Term and type of security .
CUSIP number . . . . . .
Auction date
Issue date
Maturity date . . .
Original issue date . . . .
Currently outstanding
Minimum bid amount
Multiples . . . . . . .
.
$13,000 million
$13,000 million
91-day bill
912794 J5 4
December 13, 1993
December 16, 1993
March 17, 1994
September 16, 1993
$11,389 million
$10,000
$ 1,000
182-day bill
912794 L2 8
December 13, 1993
December 16, 1993
June 16, 1994
December 16, 1993
$10,000
$ 1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids
Competitive bids
Accepted in full up to $1,000,000 at the average
discount rate of accepted competitive bids
(1) Must be expressed as a discount rate with
two decimals, e.g., 7.10%.
(2) Net long position for each bidder must be
reported when the sum of the total bid
amount, at all discount rates, and the net
long position is $2 billion or greater.
(3) Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid
at a Single yield
35% of public offering
Maximum Award .
35% of public offering
Receipt of Tenders:
Noncompetitive tenders
Competitive tenders
Payment Terms .
Prior to 12:00 noon Eastern Standard time
on auction day
Prior to 1:00 p.m. Eastern Standard time
on auction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
FOR IMMEDIATE RELEASE
Text as Prepared for pelivery .
December 8, 1993
" . :. - ..
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
CRAREGULATIONANNOUNCEMENT
We've developed another element in our program to improve access to credit for
Americans. I want to briefly tell you about it and how it fits into the Clinton
adminsitration's initiatives for change.
We have developed proposed regulations to take the uncertainty out of the
Community Reinvestment Act. The heavy lifting on this one has been done
cooperatively by the Office of the Comptroller of the Currency, the Office of Thrift
Supervision, the Fed, and the Federal Deposit Insurance Corporation. This effort has
been led by Gene Ludwig of the OCC and Lawrence Lindsay of the Fed. Gene will be
able to give you a great deal of detail on this in a moment.
In a nutshell, what we're proposing is to make it easier for lenders to show how
they're complying with the Community Reinvestment Act. For those who aren't familiar
with this area of banking law, the changes we're proposing are important because banks
now will have very clear, quantitative standards by which their compliance with the law
can be measured. And that gets very important to banks when it comes time to ask
regulators to approve mergers, new branches and the like. Before our proposal, banks
had no certainty what effect the steps they were taking toward community reinvestment
would have on applications.
What we are trying to do is to make credit more readily available for small
businesses, small farms, and in distressed areas of our country. The only thing that
ought to matter on a loan application is whether you can pay it back, not where you live.
There are businesses out there that are safe bets for loans. Those businesses are critical
to creating jobs and sustaining the growth we're beginning to see. Above that, there are
men and women out there with dreams that can be achieved. And we think this
regulatory change will make that credit available, so we can see more jobs created and
deserving Americans can see their dreams fulfilled.
(MORE)
LB-S44
2
Back in March we were out on the lawn with the president talking about a very
active agenda when it comes to getting the kinks out of financial services regulation and
getting money flowing again to creditworthy borrowers -- making changes to make our
economy work better. We've come a long way, and I think we can be proud of what
we've accomplished and gotten started in less than a year.
We talked then about breaking the credit crunch. Substantial progress has been
made on that front. We promised that we were going to start getting rid of the
duplicative regulation of our financial institutions, and we have developed legislation to
accomplish that. We said the Clinton Administration was going to get money flowing
into Community Development Financial Institutions, and we are doing that. And we
also promised by years' end to install some sanity in the standards of the Community
Reinvestment Act, and this proposal does that.
-30-
t,
FOR IMMEDIATE RELEASE
December 8, 1993
Contact: Michelle Smith
(202) 622-2960
BENTSEN, OTHERS TO BRIEF REPORTERS ON COMMUNITY
REINVESTMENT ACT
Treasury Secretary Lloyd Bentsen, Assistant to the President for Economic Policy
Robert Rubin and Comptroller of the Currency Eugene Ludwig will participate in a
press briefing on the Community Reinvestment Act at 1:30 p.m., Wednesday, December
8, 1993 in the White House Press Briefing Room.
The briefing wilI be on the record and for camera. Press without White House
press passes should call the White HOllse Press Office at (202) 456-2100 for clearance.
-30-
LB-545
PUBLIC DEBT NEWS
Department of the Treasurv •
Bureau 01 the Public Debt • \Vasnin~ton. DC '20239
IL_ 0.. ...
(, ,
-- i
~-
FOR RELEASE AT 3:00 PM
December. 6. 1993
\0)
t
Contact: Peter Hollenbach
(202) 219-3302
PUBLIC DEBT ANNOUNCES ACTIVITY FOR
SECLlUTIES IN THE STRIPS PROGRMl FOR NOVDffiER 1993
Treasury's Bureau of the Public Debt announced activity figures for the month of November 1993.
securities within the Separate Trading of Registered Interest and Princmal of Securities program
STRIPS).
Jr
Dollar Amounts in Thousands
Principal Outstanding
(Eligible Securities)
$739.824,633
Held in Unstripped Form
$536.911,327
Held in Stripped Form
$202.913,306
$8.268.640
Reconstituted in November
The accompanying table gives a breakdown of STRIPS activity by individual loan description. The
balances in this table are subject to audit and subsequent revision. These monthly figures are
included in Table VI of the Monthly Statement of the Public Debt, entitled "Holdings of Treasury
Securities in Stripped Form."
Information about "Holdings of Treasury Securities in Stripped Form" is now available on the
Department of Commerce's Economic Bulletin Board (EBB). The EBB. which can be accessed
using personal computers. is an inexpensive service provided by the Department of Commerce.
For more information concerning this service call 202-482-1986.
000
PA-134
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9-114"- BanI 2016 .........................
2115116 ............ ..
7.266.854 ,
5.992.454
7·1/4" Band 2016 .........................
5115116 ..
18.823.551
I,
18.306.751
516.800
7-1ft BanI 2016 .........................
11115116 ............ .
18.864.44
I
17.733246
8-314" BaIId 2017 ....... .................
5115117
lB.I94.169
II
3.578,649
1131.200 \
14.615.520
,
62.810
8-7_ 8and 2017 .........................
8/15117 .. .... .
14.016.858
i
5.751258
8265.SlO!
331.200
6.731.200
3.241.200
5.2.1KlO
11~
1~
Band 2004 ........................
8and axJS ...........................
BanI 2008 .........................
Band 2015 .. .
9-1_ BanI 2018 .........................
9"- Band 2018
........
I
r
I
I
I
,i
5115118 .......... .
6.708.639 1
11115118 .
9.032.870 I
1.9n.439 1
791.670
~
200.000
3233,SlOI
332.800
1.274,400 1
599.200
;
t.SlO
I
~
~
19,250.796 I
3.161.198
I
. 6.089.SlO 11
. S'15119
20213.832 I
13.789.192
I
6.424.640i!
267.520
8-112"- Band 2020 .
, 2. 15.'20
10.226.868 I
3:i58.468
I
,; 870.400 II
218.400
8-314" Bona 2020 ..
5.15.'20
10.158.883 I
1873.443
I
3285.44011
120.320
8-314" Band 2020 .. .
8.15.'20
21.418.606 ,
3.175.086 I
•9.243.520 II
368.000
• 099.200 II
184.000
8-718"4 BanI 2019 ...
8-11811. BanI 2019 ..
........... 12115119
...
..
I
7·718"4 Bona 2021
2.'15/21
11.113.373
!
10014.173 .
8-118"4 BanI 2021
~15/21
11.958.888 I
3.987.048 I
"971.840
8-11811. BanI 2021
8.'15/21
12.163.482 I
7.722.5Z2 I
~
8"- fIond 2021
11'15/21
32.798.394 I
7·114" Band 2022 .. .
8.15122
10.352.790
J
7·5/11"- Bona 2022 .... .
11115122 .
10.699.626 I
145.600
!I
24.000
440.960 II
695.040
13.75.2.319 '
'9046.07511
462.400
9.197.590 ;
, 155.200 II
19.200
9.058.026 I
· 641.SlOIl
171.200
21
t_
TABLE YI-+tOLDINGS OF 'mEASURY SECURrTES .. 8n.1PPED FORM. NOVEl....
(In thouunda)
I Pmc:Ip.t
AmcU'II 0uIsIar01g
e
r
m1
I
~
LC*l 0eec:r1l0an
Por1Ion Held
MaU1lV Dale
Total
\JnsIrQ)IId
II
Form
Por1Ion Held
s~
II
'"- MonI!I'
Form
1ill' Bond 2023
2/15123
18.374361
18.142.361
232.000
14.400
6- 114' Bond 2023
8115123
11 .5:1).334
11.485.374
44.960
~
739.824.633
536.911.327
202.913.306
8.268.640
7
Total
'Eft-=- Mrf 1. 1987. _
held II ~
form
_8
eiIg1DIe
for reconstrtubOn to
~ ~ form
"lOIe On !he 4th ~ 01 eecn montII Tillie 111 .... be aV8II8bte alter 3-00 pm eastem!me on !he Cormwce [)epartment's EcooomtC 8IAeIJn
~ EBB IS (202) 482·1986 The -.ces on tnos table are ~ to audit and ~ 1IdIlJSIInI!nIS.
ao.a (EBB)
The teieJ]hOne runber
tor men WIfamIIIan
j
I
~J 0 UJ S LJ
FOR IMMEDIATE RELEASE
Text as Prepared for Deli~rfr. ~-I,' -.... : i.' T"'-'
December 8, 1993
. ~ .'1:"; S "; ';'
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
CRA REGUIATION ANNOUNCEMENT
We've developed another element in our program to improve access to credit for
Americans. I want to briefly tell you about it and how it fits into the Clinton
adminsitration's initiatives for change.
We have developed proposed regulations to take the uncertainty out of the
Community Reinvestment Act. The heavy lifting on this one has been done
cooperatively by the Office of the Comptroller of the Currency, the Office of Thrift
Supervision, the Fed, and the Federal Deposit Insurance Corporation. This effort has
been led by Gene Ludwig of the OCC and Lawrence lindsay of the Fed. Gene will be
able to give you a great deal of detail on this in a moment.
In a nutshell, what we're proposing is to make it easier for lenders to show how
they're complying with the Community Reinvestment Act. For those who aren't familiar
with this area of banking law, the changes we're proposing are important because banks
now will have very clear, quantitative standards by which their compliance with the law
can be measured. And that gets very important to banks when it comes time to ask
regulators to approve mergers, new branches and the like. Before our proposal, banks
had no certainty what effect the steps they were taking toward community reinvestment
would have on applications.
What we are trying to do is to make credit more readily available for small
businesses, small farms, and in distressed areas of our country. The only thing that
ought to matter on a loan application is whether you can pay it back, not where you live.
There are businesses out there that are safe bets for loans. Those businesses are critical
to creating jobs and sustaining the growth we're beginning to see. Above that, there are
men and women out there with dreams that can be achieved. And we think this
regulatory change will make that credit available, so we can see more jobs created and
deserving Americans can see their dreams fulfilled.
(MORE)
LB-544
2
Back in March we were out on the lawn with the president talking about a very
active agenda when it comes to getting the kinks out of financial services regulation and
getting money flowing again to creditworthy borrowers -- making changes to make our
economy work better. We've come a long way, and I think we can be proud of what
we've accomplished and gotten started in less than a year.
We talked then about breaking the credit crunch. Substantial progress has been
made on that front. We promised that we were going to start getting rid of the
duplicative regulation of our financial institutions, and we have developed legislation to
accomplish that. We said the Clinton Administration was going to get money flowing
into Community Development Financial Institutions, and we are doing that. And we
also promised by years' end to install some sanity in the standards of the Community
Reinvestment Act, and this proposal does that.
-30-
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oee Proposal on the Community Remvestment Act
I".,"
,
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•
The attached document contains a draft preamble and the draft language of a joint
proposed regulation implementing the Community Reinvestment Act that has been
approved by the Office of the Comptroller of the Currency. The preamble and
corresponding regulations have not yet been approved by all of the other Federal
financial supervisory agencies, but approval by all the agencies is expected by
Friday, December 10. 1993.
December 8, 1993
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the Currency
12 CFR part 25
[Docket No.
1
RIN 1557-AB32
FEDERAL RESERVE SYSTEM
12 CFR part 228
[Docket No.
]
RIN 6210FEDERAL DEPOSIT INSURANCE
CORPORA nON
12 CFR part 345
RIN 3064-AB32
DEPARTMENT OF THE TREASURY
Office of Thrift Supervision
12 CFR part 563e
RIN 1550-AA69
Community Reinvestment Act Regulations
AGENCIES: Office of the Comptroller of the Currency.
Treasury (OCC); Board of Governors of the Federal Reserve
System (Board); Federal Deposit Insurance Corporation
(FDIC); Office of Thrift Supervision. Treasury (OTS).
ACTION: Joint notice of proposed rulemaking.
SUMMARY: The Office of the Comptroller of the
Currency. Board of Governors of the Federal Reserve
System. the Federal Deposit Insurance Corporation. and the
Office of Thrift Supervision (the Federal fmancial supervisory
agencies) are proposing to revise their regulations concerning
the Community Reinvestment Act (CRA). The purpose of the
CRA regulations IS to implement the continuing and
affirmative obligation of regulated financial institutions to help
meet the credit needs of their communities. including lowand moderate-income areas. consistent with safe and sound
operations and to provide guidance on how the agencies assess
the performance of institutions in meeting that obligation.
The proposed new regulations are designed to provide clearer
gUidance to fmancial institutions on the nature and extent of
their CRA obligation and the methods by which the obligation
Will be assessed and enforced. The proposed procedures are
deSigned to emphasize performance rather than process. to
promote consistency in assessments. to permit more effective
enforcement agamst mstitutions with poor performance. and
[0 reduce unnecessary compliance burden while sllmulating
Improved performance.
DATES: Comments must be received bv [60 days after date
of publication m the Federal Reg Ister]. .
.
ADDRESSES
OCC: Comments should be directed to: Communications
DIVISion. Office of the Comptroller of the Currency. 250 E
Street. SW. Washmgton. DC 20219. Anentlon: Docket No.
93Comments Will be available for public mspectlOn
Jnd pholOcopymg at the same location.
BOARD: Comments should be directed to: William W.
Wiles. Secretary. Board of Governors of the Federal Reserve
System. 20th Street and Constitution Avenue. NW.
Washington. DC 20,51. Comments addressed to Mr. Wiles
may also be delivered to Room B-2222 of the Eccles Building
between 8:45 a.m. and 5:15 p.m. weekdays. or to the guard
station in the Eccles Building counyard on 20th Street. NW
(between Constitution A venue and C Street) at any time.
Comments may be inspected in Room MP-500 of the Manm
Building between 9:00 a.m. and 5:00 p.m. weekdays. except
as prOVided m 12 CFR 261.8 of the Board's rules regarding
the availability of information.
FDIC: Comments should be directed to: Hoyle L. Robinson
Executive Secretary. FDIC. 550 17th Street. NW.
.
Washington. DC 20429. They may be hand delivered to
Room 402. 1176 F Street. NW. Washington. DC between
8:30 a.m. and 4:30 p.m. on business days. They may be sent
by facsimile transmission to 202-898-3838. Comments will
be available for public inspection at the FDIC Reading Room
#7118 at 550 17th Street. NW. Washington. DC between 9:00
a.m. and 4:30 p.m. on business days.
OTS: Comments should be directed to: Director.
Information Services Division. Public Affairs. Office of Thrift
Supervision. 1700 G Street. NW. Washington. DC 20552.
Anention: Docket No. 93. These submissions may be
hand delivered to 1700 G Street. NW from 9:00 a.m. to 5:00
p.m. on business days; they may be send by facsimile
transmission to FAX number (202) 906-7755. Submissions
must be received by 5:00 p.m. on the day they are due in
order to be considered by the OTS. Late-filed. misaddressed.
or misidentified submissions will not be considered in this
rulemaking. Comments will be available for public mspection
at 1700 G Street. NW. from 1:00 p.m. until 4:00 p.m. on
bus mess days. Visitors will be escorted to and from the
Public Reading Room at established intervals.
FOR FURTHER INFORMATION CONTACT:
OCC: . Stephen M. Cross. Deputy Comptroller for
Compliance. (202) 874-5216; and Matthew Roberts. Special
Counsel. Chief Counsel's Office (202) 874-5200.
BOARD: Glenn E. Loney. Associate Director. Division of
Consumer and Community Affairs. (202) 452-3585. or Scon
G. Alvarez. Associate General Counsel. Legal Division (202)
452-3583.
.
FDIC: Bobbie Jean Norris. Deputy Director Office of
Consumer Affairs. (202) 898-6760; Valerie Thomas. Review
Examiner (Compliance). Division of Supervision. (202) 8987155: Ann Loikow. Counsel. (202) 898-3796: and Sandy
ComenelZ. Counsel. (202) 898-3582. Regulation and
Leglslalton Section. Legal Division.
OTS: Timothy R. Burniston. Deputy Assistant Director for
Policy. (202) 906-5629: Theresa A. Stark. Program Analyst.
Specialized Programs. (202) 906-7054: Lewis A. Segall.
Sentor Anomey. Legal Policy DiVISion. Chief Counsel's
Office. (202) 906-6648.
SUPPLEMENTARY INFORMATION:
Introduction
The Federal fmancial supervisory agencies are jointly
proposing new regulations to implement lhe CRA. The
proposed regulations would replace the existing regulations in
their entirety.
The CRA is designed to promote affirmative and ongoing
efforts by regulated financial institutions to help meet lhe
credit needs of their entire communities. including low- and
moderate-income areas, consistent wilh safe and sound
operations. Despite the CRA' s notable successes. bank and
lhrift industry. community. consumer and olher groups
maintain lhat its full potential has not been realized, in large
part. because compliance efforts have focused on process at
lhe expense of performance.
In accordance wilh a request by lhe President, lhe Federal
fmancial supervisory agencies have undertaken a
comprehensive effort to reform lheir evaluation standards and
examination procedures. The proposed regulations implement
one part of this reform effort by substituting for lhe current
process-based assessment factors a new evaluation system lhat
would rate institutions based on lheir actual performance in
meeting community credit needs. In particular, lhe new
system would evaluate lhe degree to which an institution is
providing (1) loans, (2) branches and olher services, and (3)
invesanents to low- and moderate-income areas. The
proposed regulations also clarify how an institution's CRA
performance would be considered in lhe corporate application
process and seek to make lhe regulations more enforceable.
In addition to lhis rulemaking. lhe agencies will work togelher
to improve examiner training and to increase interagency
coordination regarding application of standards, performance
of examinations, assignment of ratings. and use of
enforcement tools. The agencies will also work togelher to
improve public access to data collected pursuant to lhe Home
Mortgage Disclosure Act (HMDA) and lhe proposed
regulations. These efforts should produce a CRA assessment
process lhat is less burdensome for many institutions and
yields more results for lhe local communities lhe law is
intended to benefit.
Background
In 1977, the Congress enacted lhe CRA to encourage banks
and lhrifts to help meet lhe credit needs of low- and
moderate-income communities. In lhe CRA. lhe Congress
found that regulated fmancial institutions are required to
demonstrate that lheir deposit facilities serve the convenience
and needs of lhe communities in which lhey are chartered to
do business. and lhat lhe convenience and needs of
communities include lhe need for credit as well as deposit
services.
The CRA requires each of the four Federal financial
supervisory agencies to use its authority when examining
regulated banks and thrifts to encourage institutions to help
meet lhe credit needs of the communities in which they do
business. consistent with safe and sound banking practices.
Recently. the CRA has come to play an increasingly
important role in improving access to credit among under-
served communities - bolh rural and urban - across lhis
country. Under lhe impetus of lhe CRA, many banks and
thrifts have opened new branches. rrovided expanded
services, and made substantial commianents to increase
lending to all segments of society. It is estimated that tens of
billions of dollars have flowed to low- and moderate-income
areas as a result of lhe CRA.
Despite lhese successes. the CRA examination and
enforcement system has been criticized. Financial institutions
have complained lhat policy guidance from the supervisory
agencies on the CRA is unclear and that examination
standards are applied inconsistently. Financial institutions
have also complained that the CRA examination process
encourages lhem to generate excessive paperwork at lhe
expense of providing loans, services. and invesanents. In
surveys of compliance costs, lhe institutions have often
identified lhe CRA as lhe most burdensome of consumer
protection and community reinvestment statutes.
Community, consumer. and olher groups have agreed wilh lhe
industry lhat lhere are inconsistencies in CRA evaluations and
lhat current examinations overemphasize process and
underemphasize performance. Community and consumer
groups have also criticized lhe regulatory agencies for failing
to penalize banks and lhrifts aggressively for poor
performance.
Believing lhat lhe CRA examination and enforcement process
can be improved. lhe President requested in July lhat lhe
Federal fmancial supervisory agencies reform lhe CRA
examination and enforcement system. The President asked
lhe agencies to consult with the banking and thrift industries,
Congressional leaders. and leaders of community-based
organizations across the country to develop new CRA
regulations and examination procedures that "replace
paperwork and uncertainty with greater performance, clarity.
and objectivity. "
Specifically, lhe President asked that lhe agencies refocus lhe
CRA examination system on more objective, performancebased assessment standards that minimize compliance burden
while stimulating improved performance. He also asked that
lhe agencies develop a well-trained corps of examiners who
specialize in CRA examinations. The President asked that in
undertaking this effort. the regulators seek to promote
consistency and even-handedness. to improve public CRA
performance evaluations. and to institute more effective
sanctions against institutions with consistently poor
performance.
Public Hearings
To implement the President's initiative, the four agencies held
a series of seven public hearings across the country. At those
hearings, lhe agencies heard from over 250 witnesses. Nearly
50 others submitted written statements. Individuals. small
business men and women. representatives of banks and lhrifts
and lheir trade associations. state and local government
officials. members of bcal community-based orgaDlzations.
and leaders of national community and consumer advocacy
groups presented their views. While the oral and written
statements submitted by lhe over 300 witnesses encompassed
a variety of views, some common themes emerged.
~ost commenters - bankers. Slate and local government
officials. and leaders of community-based organizations endorsed a more performance-based eRA evaluauon system.
Most wJ(nesses. however. alsJ rejected a formulaic approach
that would be applied on a nauonal basis. They emphasized
that exammauons should focus on lending. particularly to
low- and moderate-Income individuals. minorities. small
farms. small bUSinesses. and affordable housing and economic
development organIZations. However. they stressed that the
facts and dala about an Inslltution's lending record should be
evaluated in light of its business strategy. its financial
condition. and the credit needs of the community in which it
operates. A need to make the evaluations more
geographically specific for those institutions that operate in
multiple locations was also noted.
benefits of the Investment may not flow back to the speCific
service community delineated by the mstituuon. While there
was an emphasis on rewards. respondents outside the bankmg
commuOity were overwhelmingly agamst the adoption of a
"safe harbor" for fmanclal institutions from eRA protests on
the basis of ratings aSSigned by the regulatory agencies.
Many small institution respondents also noted tht: burden
imposed by the present regulations. They felt that a differem
level of documentation and different approaches to reviewing
their performance were appropriate. Small bankers stressed
the high costs in terms of both time and money required to
meet the perceived documentation requirements of the presem
approach. In many cases they stated that these burdens were
actually impeding their institutions' ability to meet credit and
service needs.
A number of respondents. both from the fmancial service
industry and community-based organizations. expressed
interest in the idea of financial institutions developing
strategic plans for eRA performance in conjunction with the
representatives of the communities within which they operate.
Some wanted the regulatory agencies to make enforceable
agreements between fmancial institutions and community
groups a central focus of the eRA process. Others suggested
that the agreements should be between the institutions and the
supervisory agencies.
Finally. a number of respondents from the financial services
industry and community-based organizations proposed that
non-chartered fmancial service providers. such as insurance
companies. fmance companies. and other similar types of
credit providers be subject to community reinvestment
requirements similar to the eRA.
We have attempted to address many of these concerns within
the proposed regulations. Without resorting to fIXed
formulas. the proposed regulations set forth a different. more
objective and more enforceable approach to evaluating
performance under the Act. The new regulations would
maintain the present regulations' emphasis on evaluating each
institution's record in light of its business strategy and
community. The new regulations would require additional
data reporting for consumer, small business. and home
mortgage loans. with provisions for disclosing that
information to the public in a timely maMer. To provide
incentives for strong performance. the new regulations would
clarify how eRA performance would be considered in the
application process. However. the regulations would not
contain a "safe harbor" provision. Under the new assessment
system. further incentives would be provided to institutions
that show strong performance by reducing the frequency of
examinations. Finally. the regulations would provide a
different evaluation framework for small institutions.
Many of those same respondents criticized the agencies for a
lack of consistency in examinations and urged the agencies to
develop cooperative training programs for their examiners.
All groups stressed the need to improve the training of
examiners responsible for eRA evaluations. While most
wimesses focused on training for examiners who conduct
eRA examinations. a number of the respondents also urged
eRA training for commercial examiners so that they can
develop a better understanding of community development
lending.
Many community-based organizations and local government
officials commented on the need for data to be collected on
small business and consumer loans similar to that collected for
hOUSing loans under the Home Mortgage Disclosure Act.
Those witnesses urged that the geographic distribution of
those loans be monitored. and many also suggested that data
on the race or ethnicity of the borrower be collected as well.
They contended that the lack of this data was a serious
impediment to the public's and the regulatory agencies' ability
to evaluate an institution's performance in these significant
areas. However. other wimesses. particularly those
representing smaller lenders. complained about current
reporting burdens - citing the Home Mortgage Disclosure
Act reporting requirements - and urged that no additional
reporting of loans be mandated.
The proposed regulations
In general: In order to promote consistency. to reduce
compliance burden and to improve performance. the proposed
regulations eliminate the current regulations' twelve
assessment factors and substitute a performance-based
evaluation system. Under the proposed system. fmancial
institutions would not be assessed on their efforts to meet
community credit needs. Such assessments have given rise to
unnecessary documentation that has reduced the effectiveness
and undermined the credibility of current evaluations.
Similarly. the agencies would not evaluate the methods used
by an institution to assess credit needs. However. to perform
under the proposed performance-based standards. institutions
would have to provide loans. invesanents. and services for
which there is a market. Therefore. they would have an
incentive to perform needs assessments In their commuOities.
Many smaller financial institutions and some community
groups also stated that the present system was tOO focused on
pUnishing Institutions that fail to perform. and the emphaSIS
Instead should be on rewards for institutions truly meeting a
Wide range of community lending and service needs.
Witnesses Identified a need to recognIZe that Investments in
Intermediary community development organIZations are
beneticial for society and should be conSidered as strengths In
evaluaung an Insurution's eRA performance. even though the
In assessing an institution' s eRA performance. the agencies
would recognize that the institution IS expected to help meel
-3-
the credit needs of its entire community. In examinations.
however. particular attention would be paid to the institution' s
record of helping to meet the credit needs in low- and
moderate-income areas.
evaluated under a streamlined measure of lending
performance that would focus on their loan-to-deposit ratio.
the degree to which they make their loans in their service
area. their loan mix (across product lines and income levels of
borrowers). their fair lending record. and their record of
community complaints. Institutions that are currently subject
to reporting under the Home Mortgage Disclosure Act
(HMDA) would also be evaluated on the reasonableness of
the distribution of the loans they have reported. The
investment and service records of small institutions would be
considered to boost their ratings based on the lending
measure.
Institutions would be evaluated based on their lending.
service. and investment performance. Generally. independent
institutions with at least $250 million in assets and members
of holding companies with that level of banking and thrift
assets would be evaluated based on some combination of
lending, service. and investment tests. As a predicate for
evaluation under the tests. institutions would have to report to
the agencies and make available to the public data on the
geographic distribution of their loan applications, denials.
originations and purchases. Small banks and thrifts could
elect to be evaluated under a streamlined method that would
not require them to report this data. Every institution would
have the option to choose assessment based on a pre-approved
strategic plan that had been subjected to review and comment
by community-based organizations and the rest of the public.
However. the plan option would not relieve an institution of
its data reporting obligations.
The regulations would not require institutions to offer specific
loan products. to make specific loans or investments or to
make loans or investments that are expected to result in losses
or are otherwise inconsistent with safe and sound banking
practices. However. the regulations would require
demonstrated performance by institutions in lending. service.
and investments that benefit low- and moderate-income areas
and individuals. Institutions would be permined and
encouraged to develop and apply flexible underwriting
standards that are consistent with safe and sound operations
for loans that benefit low- and moderate-income individuals
and areas.
The lending test applicable to large institutions would consider
the extent to which the institution is making loans in low- and
moderate-income portions of its service areas. The test would
also give an institution credit for other community
development loans and partnerships with community groups to
promote credit availability-. The service test would consider
the extent to which the institution is making branches
accessible to low- and moderate-income areas in its service
areas and is providing other services that promote credit
availability. The investment test would consider investments
in community and economic development activities and would
also take into account grants to support community and
economic development activities. donations or sales on
favorable terms of branches to women- or minority-owned
institutions. and investment partnerships with community
organizations.
Under the proposal. wholesale and limited purpose institutions
are defined as insured depository institutions that are in the
business of extending credit to the public but that do not make
a significant amount of reportable loans. This would include
banks that make primarily large commercial loans. as well as
credit card banks. and similar institutions.
The proposed regulations would not apply to institutions that
engage solely in the correspondent banking business, trust
company business. or the business of acting as a clearing
agent. The agencies have previously indicated that these
institutions are not governed by the CRA because these
institutions generally do not perform commercial or retail
banking services and do not generally extend credit to the
public for their own account.
The three tests would not apply uniformly to all institutions.
As a general rule. institutions would be evaluated on the basis
of the product lines offered to their customers in the normal
course of business. The lending test would apply to retail
institutions. and the investment test would apply to wholesale
and limited-purpose institutions. A retail institution would be
evaluated under the investment test but its performance would
only count to boost its lending test rating. All institutions
would be evaluated under the service test, but wholesale and
limited-purpose institutions would be evaluated under a
different standard than retail institutions.
Community reinvestment obligation and enforcement: The
agencies propose to state in the regulations that fmancial
institutions have a continuing and affirmative obligation to
help meet the credit needs of their communities. including
low- and moderate-income areas. consistent with safe and
sound operations. and that a purpose of the regulations is to
implement this obligation. An institution that received a
composite rating of Substantial Noncompliance would be
subject to enforcement actions under 12 U.S.C. 1818.
The agencies propose these provisions as a method of
improving the effectiveness and fairness of CRA. If the
consequences for inadequate performance are restricted to the
application process. then institutions not contemplating
applications may have linle incentive to comply. Community
reinvestment is an obligation of all institutions. whether or not
they are contemplating an application. In the absence of
agency enforcement actions. communities in which msutuuons
that do not anticipate filing applications are chartered may not
receive the community reinvestment that the statute intends.
The availability of formal enforcement actions would
An institution evaluated under a given test would receive one
of five ratings of its performance under that test:
Outstanding. High Satisfactory. Low Satisfactory. Needs to
Improve. or Substantial Noncompliance. The agencies have
proposed five ratings rather than four ratings for each test to
measure as accurately as possible variations in performance
among institutions. The agencies propose to have only four
composite ratings. however. because the four ratings are
required by the statute.
Small institutions that choose not to report loan data would be
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another. This prop~sal would give the agencies the tlexlblluy
to make the relevant calculauons. weigh the results in
.
reaching an assessm~nt of an IOstitution' s performance, and
discuss them in the public evaluation in the marmer deemed
most informative.
qrengthen the agencies' ability to encourage IOstltutlons to
meet their commuOity relOvesunent obligation.
The lending test: The lending test would evaluate primarily
whether a retail institution is making loans 10 low- and
moderate-lOcome areas as well as 10 other areas. The test
would e)(amme both direct lending by the institution and. if
the instltuuon elected. its proponionate share of indirect
lending made through lending consonia in which the
InsUtuUon panicipates. subsidiaries of the institution. funded
non-chanered affiliates of the insutuuon. and women- or
minority-owned institutions. low-income credit unions. and
other lenders in which the institution has made lawful
invesunents. The test would also take into account loans
made by an institution to community development
organizations and intermediaries.
At the election of an insutution. the agencies would conSider
indirect loans attributable to the institution under the lending
test. Indirect loans would be defmed as loans made by third
panies. such as lending consonia. subsidiaries of the
institution or non-chanered affiliates that it assists in funding.
and women- or minority-owned institutions. low-income credu
unions. and other lenders that lend to low- and moderateincome individuals or areas and in which the institution has
made lawful invesunents. If an institution reponed its
attributable indirect loans and chose to have them attributed 10
it. the agencies would attribute the indirect loans in propomon
to the institution's invesunent taking into account both the
total lending by the third party and the lending done by the
third party in the institution's service area. The proposal
intends that the instituuon receive credit for a proponionate
share of the total loans made by the third party based on the
institution's invesunent. funding or panicipation. However.
in claiming this credit. the loans should not be counted twice
and the institution must take a representative geographic
distribution of the loans in its service area or areas.
Under the lending test. an institution would be evaluated on
the basis of its performance in making reponable loans in
comparison to other lenders subject to eRA in its service
area. An institution would also be evaluated independently of
how others are performing. The agencies would evaluate the
institution's performance relative to other eRA lenders by
comparing the institution's share (market share) of reponed
housing. small business. and consumer loans in low- and
moderate-income areas in its service area with its share of
such loans in the other pans of its service area. The agencies
would evaluate the institution's performance independent of
other eRA lenders' performances by eumining the ratio of
such loans made by the institution in low- and moderateincome areas in its service area to such loans made
throughout its service area or by eumining the geographic
distribution of such loans across the low- and moderateincome areas in the institution's service area. By doing so.
the agencies would assure that. in order to achieve a good
rating under this test. either the institution has a good
distribution of loans in the low- and moderate-income areas in
its service areas or has a significant amount of loans to such
areas.
The proposal makes a distinction between the ability of an
institution to claim credit under the lending test for indirect
loans by its subsidiaries and funded non-chanered affiliates
and its ability to claim credit for indirect loans made by other
lenders. The institution could claim credit for the lending of
subsidiaries or non-chanered affiliates. under the same rules
regarding proponionate shares. whether it invests in the emily
or makes a loan to it. For other third party lenders. the
institution would be required to have made an investtnent in
the entity in order to claim credit under the lending test for its
loans. The purpose of this distinction is to recognize the
unique relationship between the institution and its subsidiaries
and affiliates. and to enhance the ability of institutions and
their parent corporations to structure their community
development lending flexibly.
The agencies believe that this formulation would allow an
institution to target Its community development lending to
panicular areas if doing so is critical to serving as a catalyst
to community development lending throughout its service
area. The agencies are aware that. in some cases. a
concentrated lending effon is more useful and effective than a
dispersed effon across a broader geographic area. However,
the agencies have attempted to make clear that this standard
would not permit institutions unreasonably to e)(c1ude lowand moderate-income areas from their lending.
The agencies could adjust an institution's rating based on the
described factors upward. and. in exceptional cases.
downward. Upward adjusunent might be warranted if an
institution made a substantial amount of loans requiring
irmovative underwriting or loans for which there is special
need, such as loans for multifamily housing construction and
rehabilitation. loans to stan-up or very small businesses, loans
to community development organizations or facilities and
loans to very low-inceme individuals and areas. While the
agencies would expect such lending to be made within the
confmes of safety and soundness. it is understood that lending
in low- and moderate-mcome areas can sometimes require a
unique approach to establishing that the loan can be safely
underwritten. It is the agencies' purpose to recognize the
unique quality of these loans and the speCial expenise and
effon they require on the pan of the lender by making clear
that such loans will be given panicular consideration by the
agencies 10 arriving at a rating under the lending test.
Panlcular consideration will also be given to loans made 10
commuOity development lending IOsututions.
The proposal indicates that the agencies will make all lending
test calculations using both volume of loans made and number
of loans made. In addition. m evaluating an institution' s
performance relative to other eRA lenders. the agencies will
.:alculate market shares separately for small business. home
mongage. and consumer lend 109 and weigh the calculations
for those categories 10 reaching an overall judgment of an
Instltuuon's market share performance. These decisions
reflect the belief that. In different communities. one loan type
may be more Critical than others. and that. for different loan
rypes. one form of measurement (either the number of loans
,)r dollar volume) may be more useful and instrucuve than
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other community dev~lopment fmancial intermediaries; in
consortia or other stru.::tures serving low- and moderateincome individuals and areas; and in state and local
government agency housing bonds or state and local
government revenue bonds specifically aimed at helping lowand moderate-income areas and individuals. The CRA does
not grant institutions any investment authority. so investments
must comply with other statutory and regulatory limitations
and requirements.
An institution could also receive an upward adjustment to its
lending rating based on the operation of a program under
which the institution would reevaluate applications that. based
on an initial evaluation. the institution planned to deny. To
the extent that an institution operates such a 'second look'
program in which applications are reviewed by community
organizations. the institution must request applicants to waive
any privacy rights under state or federal law in order to share
their applications with those organizations. The institutions
should also make sure that the participating organizations take
appropriate steps to protect applicants' confidentiality.
Eligible grants would be considered qualifying investments.
Donation or sale on favorable terms of branches to minorityor women~wned institutions would also count as qualifying
investments. Loans by wholesale and limited purpose banks
that would constitute qualified investments were they in the
form of investments will be treated as qualified investments
for the purposes of the Investment Test. For purposes of the
investment test. wholesale and limited-purpose institutions
would be deemed to have nationwide service areas.
In exceptional cases. an institution's rating might be adjusted
downward. For example. an adjustment might be warranted
if the quantitative measures inaccurately portrayed the
institution's actual lending to low- or moderate-income
geographies or individuals.
Based on these measures. an institution's lending effort would
be assigned a preliminary rating of outstanding. high
satisfactory. low satisfactory. needs to improve. or substantial
noncompliance. Preliminary ratings would be presumptive
and could be rebutted by the institution if. for example. it
believed the presumptive rating did not accurately or
adequately retlect its lending record because of particular
economic or demographic characteristics.
The agencies could adjust an institution's rating under the
investment test to take into account whether the institution's
investments are particularly innovative or meet a special need
and whether the institution' s activ ities in connection with the
investments are particularly complex or intensive or involve
innovative partnerships with community-based organizations.
Examples of such activities include helping to establish a new
entity to conduct community development activities or
providing significant service or assistance in support of a
qualified investment. The agencies could also adjust an
institution's rating if the institution has made a large amount
of investments that would be qualified investments except that
they fail to benefit the bank's service area. Downward
adjustments would only be justified in exceptional cases.
Investments and other !acJors: Wholesale and limited-purpose
institutions would normaHy be evaluated under the investment
test instead of the lending test. Retail institutions would be
evaluated under the investment test. but investment
performance would not be used to lower the overall rating of
a retail institution. However. all institutions would be
encouraged to engage in investment activities.
Based on these measures. an institution's investment effort
would be assigned a preliminary rating of outstanding, high
satisfactory. low satisfactory. needs to improve, or substantial
noncompliance. Preliminary ratings would be presumptive
and could be rebutted by the institution.
The focus of the investment test would be the ultimate impact
of the institution's investment rather than the investment per
se. Therefore. qualified investments would not be credited
under the test unless they had a demonstrable impact. e.g. in
providing loans or community development projects that
benefit low- and moderate-income individuals and areas.
The service test: In the CRA, Congress found that regulated
fmancial institutions are required by law to demonstrate that
they serve the convenience and needs of their communities
and that "the convenience and needs of communities include
the need for credit services as well as deposit services." See
12 U.S.C. 2901. The CRA focuses. however, on an
institution's effort to help meet the credit needs of its
community or communities.
Institutions would be evaluated under the investment test
based on the amount of assets compared to their risk-based
capital that they have devoted to qualified investments for
which they have not already received credit under the lending
test. If an institution made a qualified investment that
generated some attributable indirect loans but also created
non-loan benefits for low- and moderate-income areas or
individuals. the institution could receive credit under the
lending test for the indirect loans and credit under the
investment test for that part of the investment that was not
considered as indirect lending.
Branch availability in a community is critical to the
availability of credit. as well as deposit. services. The loan
origination process (including initial contacts. pre-application
counseling, application completion and application filing)
often occurs at branches. Moreover, accessible branches are
critical to the development of the full-service banking
relationships that facilitate participation in the credit system.
Qualified investments would include lawful investments that
benefit low- and moderate-income geographies or individuals
in an institution's service area: in support of local affordable
housing and community. economic. or small business
development: in community development financial
institutions. community development corporations, community
development projects. small business investment corporations
(including minority small business investment corporations).
and minority- and women-owned finanCIal institutions and
Therefore. the service test would evaluate a retail institution
primarily on the basis of the percentage of its branches that
are located in or that are readily accessible to low- and
moderate-income areas. Generally, in a densely-populated
area. a branch would be considered readily accessible If it
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was In easy w:!lking distance. In a less populated area. a
branch would generally be considered readily accessible if it
was In easy or normal driving distance. The percentage of
branches that an institution would be expected to have In or
readily accessible to low-and moderate-mcome areas in each
ser':lce area would depend. in part. on the number of such
areas In the service area.
both scored as satisfactory. An institution that would
otherwise receive a needs to Improve rating would be rated m
substantial noncompliance If the institution received no bener
than a needs to Improve ratmg on both of its last two
examinations. Finally, the ratmg would be adjusted. if
necessary. to take into account Illegal lending discrimination
by the institution to afflve at a final composite rating.
The agencies could adjust a retail institution's service record
upward or downward to reflect more accurately its branch
service to low- or moderate-Income geographies or
individuals. but downward adjustments would be made only in
exceptional cases.
Lending discrimination: A financial institution is not servmg
its entire community adequately if it is discriminating
illegally. Therefore. there would be a rebuttable presumption
that an institution would receive a composite rating of less
than satisfactory if the institution committed an isolated act of
illegal discrimination of which it has knowledge that it has nOI
corrected fully or is not in the process of correcting fully or
engaged in a pattern or practice of illegal discrimination that
it has not corrected fully. The presumption could be rebuned
in the case of technical or de minimis violations. for example.
if an institution violates the Equal Credit Opportunity Act by
offering a preferential credit program for individuals over age
55 (rather than limiting the program to individuals over age
62 as the law requires).
In determining the appropriateness and degree of any
adjustment. the agencies might consider the institution' s
record of opening and closing branches. whether branches
wherever located are actually serving low- and moderateincome individuals. any signtficant differences in the quality.
quantity or types of services offered to low- or moderateincome individuals or geographies. and similar factors.
The agencies could also adjust a retail institution' s rating
upward to reflect a strong record of providing or supporting
other services that promote credit availability for low- and
moderate-income individuals and areas. Particular weight in
this consideration would be given to credit and homeownership counseling. small and minority-owned business
counseling. low-cost check-cashing. and low-cost deposit
services.
MullipLe service areas: An Institution's CRA rating should
reflect its performance In all the local communities in which il
does business. If an institution operates in more than one
service area. the agencies would evaluate all the institution's
loan data and would conduct full lending and service tests in a
sample of the service areas in which the institution operates.
The agencies would then assign separate composite ratings for
each area. The institution' s overall rating would reflect the
performance of the institution in all service areas studied.
Appropriate consideration would be given to the limitations
faced by institutions with a small number of branches. No
institution would be required to expand the size of its
branching network or to operate branches at a loss. Because
they generally do not have branch systems. wholesale and
limited-purpose institutions would be evaluated based on their
support for services than promote credit availability rather
than their provision of branches.
Small institution assessment option: The CRA requires the
agencies to assess an institution's record of meeting the credit
needs of its entire community. but does not specify the
methods by which the assessments are to be made. The
agencies believe that the Congress gave the agencies broad
discretion to determine the appropriate methods for CRA
assessments. The Congress recognized that assessment
methods must be appropriate for communities and institutions
of different sizes. conditions. needs and attributes.
Based on these measures. an institution's service performance
would be assigned a preliminary rating of outstanding. high
satisfactory. low satisfactory. needs to improve. or substantial
noncompliance. Preliminary ratings would be presumptive
and could be rebutted by the institution.
Many small institutions and their representatives have urged
that the ager.cies exercise their discretion to exempt small
institutions from CRA assessments. However. the agencies
do not believe that an exemption is permitted by the statute.
Moreover. the agencies believe that an exemption would be
unwise because it could result in neglect of the credit needs of
communities that are served by exempted institutions.
Composite ratings: As required by the statute. there would be
four possible composite ratings: outstanding, satisfactory.
needs to improve. and substantial noncompliance. For retail
institutions. the institution's rating under the lending test
would form the basis for its composite rating. For wholesale
or limited-purpose institutions. the institution's ratmg under
the investment test would serve as the basis for the composite
rating. For retail institutions. the rating would then be
Increased by two levels in the case of outstanding investment
performance or by one level in the case of high satisfactory
Investment performance. For all institutions. the rating would
be Increased by one level in the case of outstanding service
and decreased by one level In the case of substantial noncompliance In service.
The agencies believe. however. that they may exercise their
discretion to create different assessment methods to take into
account differences among classes of fmancial institutions.
The agencies further believe that a different assessment
method may be warranted to provide appropriate treatment of
small banks and thrifts. The proposed regulations therefore
generally offer small banks and thrifts the option of choosmg
evaluation under a streamlined assessment method.
Concomitantly. the regulations would not Impose upon small
institutions the data col~ection requirements that are necessary
for the general assessment method applied to other
Institutions. This difference in method may be appropriate
The ratmg would be converted to the statutorily-required four
level rating system. With high satisfactory and low satisfactory
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because the disproponionate burden that would be otherwise
imposed on small institutions does not appear to be necessary
to achieve the purposes of the regulations. Collection and
reponing by small banks and thrifts of data on the geographic
distribution of their loans may impose a burden on those
institutions disproponionate to larger institutions. In addition,
small banks and thrifts often serve geographically compact
communities, so the benefits of geographic coding and
reponing of loans by such institutions are generally minimal.
loan-to-deposit record, its record of lending to Its local
community, and its loan mix. The agency would also contact
members of the commL!n1ty, panicularly in response to
complaints about the institution, and review the findings of its
most recent fair lending examination. In addition. at the
option of the institution, the agency would assess the
institution's record of making qualified investments and its
record of providing branches. RSFs, ATMs, and other
services that enhance credit availability or in other ways meet
the convenience and needs of low- and moderate-income
persons in its service area.
Finally. the streamlined examination process proposed by the
agencies is designed to measure accurately whether small
banks and thrifts are. in fact. serving the needs of their entire
communities. In this regard. the agencies stress that the
examinations for small banks and thrifts will not be
implemented as de facto exemptions. Examinations will not
be formalities or simple reviews in which examiners quickly
determine whether institutions have met the items on a "check
list." Meaningful examinations. including reviews of the loan
files of small institutions. will be conducted. but the burden of
the examinations will be shifted largely from the banks being
examined to the examiners.
If a small institution operates in more than one service area,
the relevant agency would evaluate the institution's
performance in all of those service areas.
Plan assessment option: Any institution, as an alternative to
being rated under the lending. service. and investment tests or
the assessment method for small institutions. could elect to
submit for agency approval a CRA plan with measurable
goals against which its subsequent performance would be
assessed. This plan would be required to be publicly
disclosed and subject to public comment before approval. If
the agency approved the plan, it would assess the institution's
performance to determine if the institution met or exceeded
the plan goals. If the institution failed to meet or exceed the
preponderance of the measurable goals set fonh in the plan.
the institution's performance would be evaluated under the
applicable tests or standards described above. Assessment
under a plan would not relieve an institution from its
obligation to repon data on the geographic distribution of its
loans.
Small banks and thrifts would be defmed as independent
institutions with assets of less than $250 million or institutions
with less than $250 million in assets that are members of
holding companies the total banking and thrift assets of which
are less than $250 million.
The primary basis for a small institution's rating would be an
evaluation of its lending record. An institution would be
presumed to receive a satisfactory rating if it has a reasonable
loan-to-deposit ratio. makes the majority of its loans locally.
has a good loan mix (makes a variety of loans to the extent
permitted by law and regulation and lends across income
levels). has no legitimate. bona-fide complaints from
community members. has not committed an isolated act of
illegal discrimination of which it has knowledge that it has not
corrected fully or is not in the process of correcting fully. and
has not engaged in a pattern or practice of illegal
discrimination that it has not corrected fully. In addition. if
an institution is required to repon loans under the HMDA.
the institution would also be required to have a reasonable
geographic distribution of reponed loans.
Definition of service area: The geographic areas surrounding
each office or group of offices in which a retail institution
(including a small institution) makes most of its direct loans
would be used to defme Its service areas. A rebuttable
presumption would exist that an institution's service area is
acceptable if it is broad enough to include low- and moderateincome areas. alld does not arbitrarily exclude low- and
moderate-income areas. For example. service areas defmed
by the institution to include the areas around branches in
which it makes a substantial ponion of its loans and all other
areas equidistant from the branches would normally be
acceptable. Institutions would not be evaluated on the method
they use to delineate their service areas. Wholesale and
limited-purpose institutions would not have to defme service
areas.
A small institution that meets each of the standards for a
satisfactory rating and exceeds some or all of those standards
could receive an overall rating of outstanding. In assessing
whether a small institution's CRA record is outstanding. the
relevant agency would consider the extent to which the
institution's loan-to-deposit ratio. its lending to its service
area. and its loan mix exceed the standards for a satisfactory
rating. In addition. at the option of the institution, the agency
would evaluate the institution's record of making qualified
investments and its record of providing branches. remote
service facilities (RSFs). automated teller machines (A TMs),
and other services that enhance credit availability or in other
ways meet the convenience and needs of low- and moderateincome persons in its service area.
A retail institution would generally have multiple service
areas if it serves significant areas across state or metropolitan
boundaries. An institution could have multiple service areas
within one metropolitan area, and service areas need not
necessarily be cotermmous with metropolitan statistical area
or state boundaries. However, a service area generally could
not include more than one metropolitan statistical area and
should not include both a metropolitan statistical area and a
rural area.
Data collection and reporting: In addition to data already
If a small institution failed to meet or exceed all of the
standards for a satisfactory rating, the relevant agency would
conduct a more extensive examination of the institution's
collected under the HMDA and the agencies' fair housing
data collection requirements, institutions that do not elect or
are not eligible for the small institution streamlined
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areas that make up each service area. and a copy of the publIC
section of its most recent CRA Performance Evaluation. If an
Institution elected assessment under the plan option. it would
be required to include in the public file a copy of its plan.
Copies of information in the public file would be requIred to
be made available at cost to members of the public on
request. The public file would be required to be maintained
at the institution's main office. Materials relating to a given
service area would also be required to be maintained at each
branch in that service area. Every institution would have to
post in the public lobby of every branch a notice of its eRA
obligation and the public' s ability to comment on and revIew
data concerning that performance.
assessment method would be requIred to collect and report to
the agencIes data on the geographic distribution of theIr home
mortgage. consumer. small business (including small farm)
loan written applicatIons. application denials. originations and
purchases. In the case of a retail institution that elected to
count Its attributable indirect loans for its lending test. data
would have to Include reports on attributable indirect loans
(including loans made outside low- or moderate-income
areas). Data on small business loans would be reported in
four categories based on the sales volume of the bUSiness.
Data on the race and gender of borrowers would not be
requIred to be collected and reported. except to the extent
such data are required by current law. Data would have to be
reported in summary form (see Appendix A) and would have
to be submitted to the agencies by January 31 of the calendar
year following the calendar year for which the data were
collected. These data would be used by the agencies to make
the calculations under the lending test and would be made
available to the public.
Publication of examiTUltion schedule aruJ public comment:
The proposed regulation provides that the agencies will
publish a list of the institutions which are scheduled to
undergo CRA examinations in the next calendar quarter. The
list would be published at least 30 days in advance of the
quarter and would contain the names of the institutions that
have been scheduled for a CRA examination in that quarter.
Members of the public would be invited to submit comments
to the appropriate agency regarding the CRA performance of
any institution whose name appears on the list. If received
prior to the start of an examination. those comments would be
taken into consideration during the examination in addition to
any comments already in the institution's public CRA file.
As the precise timing of any particular examination, inclUding
the length of time any particular examination takes to
complete, cannot always be accurately judged, members of
the public would be urged to submit their comments as soon
as possible after the list of institutions is published.
Additionally, the agencies would urge all interested members
of the public to file comments with institutions regarding their
CRA performance on an ongoing basis and not to wait until
any particular institution has been scheduled for a CRA
examination to file comments either with the institution itself
or the appropriate agency. This is especially important as
from time to time it might be necessary or advisable for the
agencies to conduct a CRA examination of an institution
which had not been previously scheduled to receive an
examination that quarter. In short, the fact that an
institution's name does not appear on the published list would
in no way preclude the agencies from conducting a CRA
examination.
Home mortgage loans would be defined to include all
mortgage loans reportable under HMDA and its implementing
regulations. These include closed-end purchase and
improvement loans (including refinancings) for single family.
1-4 family. and multifamily housing. Institutions already
covered by HMDA would not be required to collect any
additional information on their home mortgage loans but
would be required to submit home mortgage data in summary
form by the January 31 deadline. Institutions not now
covered by HMDA would have to collect and report the
summary home mortgage data required by the proposed CRA
regulations but would not have to report home mortgage data
in the detail required by HMDA. Reporting of open-end
home equIty lines of credit is not required under HMDA and
would nm be required under the proposed regulations.
because the burdens of collection and reporting appear to
outweigh the associated benefits.
Consumer loans are defined to include all closed-end loans.
secured and unsecured. extended to a natural person primarily
for personal. family. or household purposes. except for credit
card loans and motorized vehicle loans and those loans
included in the definition of home mortgage loans. Consumer
loans also would not include open-end credit lines.
The agencies have not proposed to require collection and
reporting of data on open-end credit lines. credit card loans.
and motorized vehicle loans recause the burdens associated
with collection and reporting of the data appear to outweigh
the associated benefits. The legislative history of the
Community Reinvestment Act reveals that Congress was
primarily concerned with the availability of home mortgage
loans and small business loans. In addition. collection of data
on revolving credit (including credit card loans) and
automobile loans is particularly burdensome given the nature
of those loans.
Applications: The CRA requires the agencies to consider the
CRA performance record of an insured depository institution
in considering applications by the institution for a deposit
facility. Applications for a deposit facility include
applications to charter a bank or Federal savings association.
to obtain federal deposit insurance, to establish or relocate a
branch office or A TM. and to acquire another insured
depository institution or its assets. The agencies propose in
the regulation to explain how CRA ratings achieved through
performance-based examinations will be considered in these
applications.
Documentarian aruJ disclosure: Every Institution would have
Under the proposal. the CRA examination rating would
continue to be an important and often controlling factor in
assessmg the CRA aspect of an application. including where
appropriate the convenience and needs factor. The CRA
examination rating IS not conclusive. however. and the
make available for public inspection a tile with all signed.
written comments from the public that It has received for the
past 2 years. Its performance data for that period. maps of its
service areas and lists of the census tracts or block numbering
[0
-9-
proposal recognizes that other information related to CRA
performance and the convenience and needs of communities.
including information collected through public comment and
through periodic and special reports. is also relevant and must
be considered.
at least 3 months pnor to the plan' s proposed effective date.
The purpose of this requirement is to allow the agencies
sufficient lead time to review, assess, and determine whether
to approve the plan.
As proposed. an "outstanding" rating generally would result
in a finding that the CRA aspect of the application is
consistent with approval of the application and would receive
extra weight in reviewing the application. A "satisfactory"
rating generally would result in a finding that the CRA aspect
of the application is consistent with approval of the
application. A "needs to improve" rating generally would be
an adverse factor in the CRA aspect of the application, and
absent demonstrated improvement in the bank's CRA
performance or other countervailing factors. generally would
result in denial or conditional approval of the application. A
"substantial noncompliance" rating generally would be so
adverse a fmding on the CRA aspect of the application as to
result in denial of the application.
Finally, the agencies are concerned that some institutions may
have difficulty adapting to the new assessment standards and
that such institutions may, despite clear efforts to the
contrary, find that their first CRA rating under the new
standards is substantially below their most recent rating under
the old system. The proposed regulations provide a
reasonable accommodation for institutions that fmd themselves
in that situation. If an institution's first rating under the new
standards is more than one category below the institution's
last rating under the old standards, the agencies would not
disapprove any corporate application nor take any other
enforcement action against the institution based on that lower
rating if the agencies determined that the drop in the
institution's rating occurred despite the institution's good faith
efforts to perform at least satisfactorily under the new
standards.
In addition to consideration of CRA performance in the
application process and use of their general enforcement
powers. the agencies plan to use the frequency of CRA
examinations to provide incentives for strong performance.
Institutions with outstanding ratings will generally be
examined less frequently than the average institution, and
institutions with less tharwatisfactory ratings will generally be
examined more frequently. Of course, other factors, such as
an institution's financial condition, will also affect the
frequency of examinations. The agencies believe that linking
examination frequency to performance makes sense not only
because it provides an incentive for strong performance but
also because it reflects a sensible allocation of the agencies'
limited examination resources.
Review
The agencies recognize that the proposed regulations represent
a dramatic change in existing practices and that cautious
administration is therefore required. Consultation by fmancial
institutions with the agencies on compliance with the new
standards and procedures will be encouraged. as will liberal
use of agency appeals processes. The supervisory agencies
will engage in an internal review of the effectiveness of the
new regulations. The agencies contemplate reconsideration of
the regulations to improve their effectiveness within the next
several years. The agencies intend for the proposed
regulations to require demonstrated performance but to
impose as little unnecessary compliance burden as possible.
and the agencies will review the regulations to determine
whether they are advancing these goals.
Transition
Under the proposed regulations, the data collection and
reporting requirements will go into effect July I, 1994 for all
institutions that are required under the regulations to collect
and report data. Data collected from July I, 1994 through
December 31, 1994 would be required to be reported to the
agencies no later than January 31, 1995. Thereafter,
institutions would be required to collect the data on an annual
basis and to report the data no later than January 31 of the
following year.
Other Efforts
In addition to this rulemaking, the agencies will work together
to improve examiner training and to increase interagency
coordination regarding application of standards, performance
of examinations, assignment of ratings, and use of
enforcement tools. The agencies will work together to make
examinations as short in duration as possible, to minimize
unnecessary compliance burden, and to ensure consistency
and reliability in the rating process.
Evaluations based upon the new assessment standards could
begin by April I, 1995, by which time sufficient data will
have been collected and analyzed to accommodate the
quantitative analyses contemplated by the regulations.
However. the agencies anticipate that fmancial institutions
may need time to adjust to the new approach. Therefore.
from April 1. 1995 to July I, 1995, an institution could elect
to be evaluated under the standards that were in place under
the old system rather than the new standards. After July I,
1995. the new standards would be mandatory except that.
until April I, 1996, an institution showing good cause could
request evaluation under the old standards. An institution
could also elect to be evaluated under a strategic plan during
the transition period. However. as would be the case
whenever an institution elects evaluation under the plan
option. the institution would have to submit the strategic plan
The agencies will also work together to improve public access
to data collected pursuant to HMDA and the proposed
regulations. To that end, the agencies will strive to make the
summary data reported under the proposed CRA regulations
available to the public as soon as possible. The Federal
Reserve Board will also strive to make HMDA data available
by May 30 of the year following the year for which the data
are submitted.
CRA Loan Data Formdt
The agencies are proposing a common CRA Loan Data
Format, included in each regulation as appendix A. That
common format appears at the end of this preamble. but
would be published with each agency's regulation if this
proposal is adopted as a tinal rule.
- 10 -
regulation be adjusted to deal With any such problems!
I 1) Are there other approaches to changmg the CRA
regulations that WGuid be more beneficial and cost
effective. and mat would achieve the goals of this refonn
effort? If so. what alternative approach should be
considered and what would its elements be?
Specific areas for public comment
Comment IS mv Ited on all aspects of the proposal. In addition
(0 general comments. the agencies request comments on the
iollowmg particular issues:
I)
Are the lending. service. and invesunent tests meaningful
and workable? Is the appropriate weight given to each
of the three tests in determining the composite rating?
Should numbers or ratios be substituted for the
deSCriptive quantitative terms used m the various rating
levels under the three tests'? If so. what should they be?
2)
Should" indirect loans". or loans made by entities in
which a bank or thrift has made an invesunent. be
included in the lending test as proposed? Is the
treaunent of "indirect loans" meaningful. workable. and
effective?
3) Should the quantitative measures used in the lending.
service. and invesunent tests be expanded to include a
broader array of performance measures? If so. what
would those additional measures include?
4) Should banks and thrifts be permined to elect to be
evaluated on the basis of their performance relative (0 an
approved CRA plan? Is the regulation sufficiently clear
about the bases upon which agencies would approve a
proposed plan?
5) Are the provisions of the regulations on the
circumstances under which the agencies would use their
enforcement authority to promote compliance with the
community reinvesunent obligation of regulated banks
and thrifts appropriate? Is the community reinvesunent
obligation appropriately stated?
6) Should the performance of affiliates be considered in
eRA examinations of a regulated banlc or thrift? Should
the performance of affiliates be considered in decisions
on corporJte applications filed by a bank or thrift?
7) Does the formulation of the regulation strike an
appropriate balance between the need of institutions for
certainty in the evaluation system and the need for the
flexibility to reflect individual institulions' service
capabilities and the credit needs of particular locales?
Will this proposal result in a clearer. more objective
evaluation scheme? If sufficient certainty and objectivity
are not achieved. what adjusunents should be made?
8) Are the data collection provisions under the proposed
regulation warranted and are the appropriate data
collection elements called for? What adjusunents should
be made to the data collection provisions? What costs
will be imposed and what benefits derived from the data
collection provisions?
9) How would the proposed changes affect the amount of
time that fmancial institutions spend on eRA
compliance? If you operate a financial institution. how
much time do you now devote to compliance and how
much time do you anticipate the proposed regulations
would require that you devote? (Please indicate the size
of your institution when answering.) How might
compliance costs be reduced consistent with the
regulatory and statutory objectives?
10) What analytical or computational problems. if any. result
from the fact that thiS proposal requires calculation of
relevant ratios under the lending test usmg only the loans
made by mstltutlons that would be required by the
proposal to report their lending. rather than loans made
by all lenders m the relevant markets) How should the
[Text of common proposed appendix A to part
eRA LOAN DATA FORMAT follows herel
- 1I -
PART A
Loans To Small Businesses
TOlal Sales < $250M
Census TraLli
Tolal II 01 Apps
Tolal II of App Demals
Tolal II of App.s Appmvcd
S AmouR! Approvcd
1',,1 a I II & S l'urlhascd
(jo\'1
"l0d NUIllOellng
Area
Govi
Other
(Jovl
(hher
Govi
Other
Govi
Other
II
Other
S
II
S
Indlrell I "dns II dnd S AIII"unl
Govi
(hher
II
S
II
S
_.
-
PART B
Loans to Small Businesses
Tolal Sales> $250M bUI < $lMM
Census Tra.:1i
Block Numherlllg Area
Tolal II or App'
(jovi
Other
Total II of App Delllais
Govi
Other
Tolal II of Apps Approved
S Amounl
Approved
(juvi
Govi
Other
Other
Tolal II & S l'ur.:hascd
(jovl
Other
II
II
S
S
Indire':l l.oans II and
Govi
II
S
II
S AmouR!
Olher
S
,
PART ('
Loans to Small Businesses
lOlal Sales> $IMM nul < $IOMM
I
t"1I\U\
Iii,,, k
I r alii
Nu",I",,,"~
I
AI<.
(;0'11
I
Towll/ 01 App ()emals
IlIlal 1/ III App'
( )Ihcr
(joyl
I
(illvi
(hher
I
S Ainoum
Tllial 1/ "I Apps Approvcd
G.. vl
Olher
Approved
TOIdI 1/ &<
(ill V I
1/
()Iher
S Purcha\C:d
Olhcr
S
/I
S
~-----~-.
Indueci I.".", /I .lId S A"'''U III
Olhcr
(,n",
/I
S
/I
S
-
PART ()
Loans to Small Businesses
TOlal Sales> $IOMM Wilh < 500 Employees
I
('ell'u, I r aell
I
Till a I 1/ ot Apps
I
I
T .. lal 1/ 01 App Denials
Tolal 1/ "I Apps Apprmcd
I
S AmouOl
Approved
T .. lal 1/ &< S Purdlased
<Jlher
S
#
S
GOVI
lilt" k Nu,,,h,,, "I~ Arca
-
(inv'
( )Iher
(ill V I
( hher
Gove
Olhcr
Govi
Olher
#
Indlrell I.oam 1/ and S Amouni
G"vl
Olher
#
S
1/
S
I
Consumer Loans
.
~mll~
III
~k
haLlI
Numkllllg Area
lolal 1/ 01 App'
(jo\"
(liher
Tolal 1/ 01 App Iknlals
10lal 1/ 01 Apps Appruved
S AmoulIl Approved
(;ovi
(jovi
Gt'VI
(lIhc:r
Olher
Tolal 1/ &. S J>ur(hascd
GOVI
(Jlher
1/
S 1/
S
(Jlhc:r
Indlrnl I.oall\ 1/
Govi
1/
S
dlld
S An1oU1l1
( IIhcl
1/
S
Small Farm Loans
.
c:nsus Tr a(11
IlIoLk Numhc:rlllg Area
Tolal 1/ of Apps
(";0'.11
(lIhc:r
I
I
Tolal 1/ of App Denials
Govi
Other
TOla11/ of Apps Approved
Govi
Olher
I
S AmounI Approved
Gt,vl
Other
TOla11/ &.
(iovi
1/
S
S Pur~hased
Oll,,:r
1/
S
Indlre(1 Loans 1/ and
GOVI
1/
S
1/
S AmounI
Olher
S
I
PART A
Home Purchase Loans
Loan~
l'tll\U' I r dl II
1"ldlll ". ApI"
lin 1104 bmlly Dwdhngs
lolalll o' ApI'
r01a1 II .,r ApI"
I>elllal~
S Amount Apprllved
Apprllvcd
IOlal 1/ &< S Purl hd",d
Olher
S 1/
S
(jovi
III". k Nlllllhu "I~ A'Cd
( IlIvl
( Jllrer
Govi
( hher
Govi
Olher
(,lIvl
Olher
1/
Indll~lI I "JII' II dlld \ A III"U III
Gllvi
1/
( )Iher
\
II
\
PART B
Home Improvemenl Loans
.
Loans on I-Ill 4 Family Dwdlings
('ell"" I r aell
IIll1l k NUlllhclllI~ ArtJ
IlIlal II "' ApI's
(.OV(
I hher
IlIlalll o. ApI' I lemals
(iovl
Other
i
Tolal 1/
(jllvi
IIr ApI's
Approved
Olher
i
S Amounl Approved
Govi
Olher
Tllial II &<
Govi
II
S
S PllH:ha",d
Olher
II
\
Indlre<:1 I "am II alld S Allllluni
Gllvi
( hher
1/
S
II
\
-
PART C
Refinancing
Home Purchase or Home Improvement l-to-4 ramily Dwellings
cn\u\ TralU
rolal /I 01 App\
Tolal /I of App Denials
TOlal /I of Apps Approved
$ Amoum Approved
Tolal /I & $ I'urlhascd
Orner
S /I
S
Indlrcll Loans /I and $ Amounl
GoYI
(hiler
/I
S
/I
S
( JOV(
Ilod. Numhermg Area
( ioYI
Olher
(J(,Yl.
Olher
GoYI
Orner
(J(IVI
Olher
/I
-
I
PART D
Multifamily Dwelling Loans
Home Purchase. Home Improvemenl and Refinancings
CCII'U\
Tr dell
lolal /I 01 App'
Tolal /I of App Delllais
Tolal /I of Apps Approyed
$ Amoum Approvcd
Tolal /I &
S I'urlhascd
(Io\,'
HIIIL k Numhl"llllg Arca
(jO\j(
( 1111",
(jovl
( hllcr
(jov.
Orner
(J('YI
Olher
/I
Oilicr
S
/I
S
Indire,l Loan\ /I and
liOYI
/I
S
/I
S Amount
(hlln
S
Fo I r the reasons set out In the preamble. the Office of
Comptroller of the Currency proposes to revise 12 CFR
chapter I as set forth belOW:
Paperwork Reduction Act
DCC. The collections of mformatlon contamed m thiS notice
of proposed rulemaking have been submitted to the Office of
~anagement and Budget for review In accordance With the
Paperwork Reduction Act of 1980 (44 U.s.c. 3504(h).
Comments on the collections of information should be sent to
the Comptroller of the Currency. legislative. Regulatory. and
International Activities. Attention: 1557-0160.250 E. Street.
SW. Washington. D.C. 20219. With a copy to the Office of
Management and Budget. Paperwork Reduction Project
(1557-0160). Washington. D.C. 20503.
PART 25 - COMMUNITY REINVESTMENT ACT
REGULA TIONS
I. Part 25 is reVised to read as follows:
PART 25 - COMMUNITY REINVESTMENT ACT
REGULA TIONS
Sec.
25.1 Authority and OMB control number.
25_2 Community reinvestment obligation.
25.3 Purposes.
25.4 Scope.
25.5 Defmitions.
25.6 Assessment standards - summary.
25.7 Lending Test.
25.8 Investment Test.
25.9 Service Test.
25.10 Composite ratings.
25.11 Alternative assessment methods.
25.12 Service area - delineation.
25.13 Loan data - collection. reporting. and disclosure.
25.14 Public file and disclosure.
25.15 Public notice by banks.
25.16 Publication of planned examination schedule.
25.17 Effect of ratings - corporate applications.
25.18 Transition rules.
APPENDIX A TO PART 25 - CRA LOAN DATA
FORMAT
AUTHORITY: 12 U.S.C_ 21. 22. 26. 27. 30. 36. 93a. 161.
215. 215a. 481. 1814. 1816. 1818. 1828(c). and 2901 through
2907.
The collections of information in this proposed regulation are
10 12 CFR 25.11. 25.12. 25.13. and 25.14. This information
IS required to evidence national bank efforts in satisfying their
contmuing and affirmative obligation to help meet the credit
needs of their communities. including low- and moderateIOcome areas.
This information will be used to assess national banJc
performa!1ce In satisfying the credit needs of their
communities and in evaluating cenain corporate applications.
The likely respondents/recordkeepers are for-profit institutions
including small businesses.
The estimated annual burden per respondentlrecordkeeper
varies from six to 90 hours. depending on individual
circumstances. with an estimated average of 18 hours.
There will be an estimated 532 respondents averaging two
hours and 3.450 recordkeepers averaging 16 hours.
Regulatory Flexibility Act
DCC:lt is hereby certified that this proposed rule. if adopted
as a final rule. will not have a significant economic Impact on
a substantial number of small banks. Accordingly. a
regulatory flexibility analysis is not required. This proposal
would enable most small banks to avoid the data collection
requirements in part 25 and will encourage greater small
bus mess lending by banks of all sizes.
§ 25.1 Authority and OMB control number.
(a) Authoriry. The authority for this part is 12 U.s.C. 21.
22.26.27, 30, 36, 93a. 161. 215, 215a. 481. 1814. 1816.
1818. 1828(c). and 2901 through 2907.
Executive Order 12866
(b) DMB control number. The collection of information
DCC: This document has been submitted to the Office of
Management and Budget for review. The proposal would
clarify existing requirements and would exempt small banks
from many of the requirements in part 25. Further. the
proposal will encourage greater small business lending by
banks of all sizes.
requirements contained in this part were approved by the
Office of Management and Budget under OMB control
number 1557-0159.
§ 25.2 Community Reinvestment obligation.
National banks have a continuing and affirmative obligation to
help meet the credit needs of their communities, including
low- and moderate-income areas, consistent with safe and
sound operations.
List of Subjects
12 CFR part 25
Commumty development. Credit. Investments. National
banks. Reportmg and recordkeeping requirements.
§ 25.3 Purposes.
AUTHORITY AND ISSUANCE:
For the reasons set out in the preamble. the Federal financial
regulatory agencies propose to amend Title 12 of the Code of
Federal Regulations as follows:
The purposes of this part are to implement the community
reinvestment obligation of national banJcs: to explain how the
Office of the Comptroller of the Currency (OCC) assesses the
performance of national banks in satisfying the commuOlty
reinvestment obligation: and to describe how that performance
is taken mto account In cenam corporate applications.
OFFICE OF THE COMPTROLLER OF THE
CVRRE~CY
12 CFR Chapter I
§ 25.4 Scope.
(a) General. This part applies to all insured national banks
- 17 -
that are in the business of extending credit to the public.
including wholesale and limited-purpose banks.
investments ID or with community development and affordable
housing lenders. women-owned or minority-owned finanCial
institutions. low-income credit unions. and others that lend to
low- and moderate-income geogrdphies and individuals.
(b) Banks not engaged in lending activities. This pan does
not apply to banks that engage solely in the correspondent
banking business. trust company business, or the business of
acting as a clearing agent. Such institutions, although they
are chanered as banks. do not perform commercial or retail
banking services and do not extend credit to the public for
their own account.
(h) Loans or investments benefiting low- and moderateincome geographies or persons means loans or investments
where the proceeds are provided to. invested in. used by or
otherwise directly benefit (I) Persons that reside in low- or moderate-income
geographies or have low or moderate incomes;
(2) Businesses located in low- or moderate-income
geographies or employing mostly persons residing in such
geographies;
(3) Non-profit organizations located in low- or moderateincome geographies or providing services mainly to persons
residing in such geographies; or
(4) Construction or renovation of facilities located in low- or
moderate-income geographies or providing services mainly to
persons residing in such geographies.
(c) Federal branches and agencies. As provided in § 28.102
of this chapter, this pan does not apply to Federal agencies.
limited Federal branches, and uninsured Federal branches.
However. this pan does apply to insured Federal branches.
References in this pan to "head office" mean, in the case of
insured Federal branches of foreign banks, the principal
branch within the United States. The "service area" of an
insured Federal branch refers to the community or
communities located within the United States served by the
branch as described in § 2S.12. The phrase "office or group
of offices" refers to insured branches located within the
United States.
(i) Low- and moderate-income geographies means
geographies where the median family income is less than 80%
of the median family income for the Metropolitan Statistical
Area (MSA) or (in the case of geographies outside a MSA)
less than 80% of the non-metropolitan state-wide median
family income for the state in which the geography is located.
(1) Low-income geographies means geographies where the
median family income is less than SO,% of the median family
income for the Metropolitan Statistical Area (MSA) or (in the
case of geographies outside a MSA) less than SO% of the nonmetropolitan state-wide median family income for the state in
which the geography is located.
(2) Moderate-income geographies means geographies where
the median family income is more that 50% and less than
80% of the median family income for the Metropolitan
Statistical Area (MSA) or (in the case of geographies outside
a MSA) more than 50% and less than 80% of the nonmetropolitan state-wide median family income for the state in
which the geography is located.
§ 25.5 DefmitioDS.
For purposes of this pan, the following defmitions apply:
(a) Automated Teller Machines (ATMs) means immobile.
automated, unstaffed banking facilities at which deposits are
received, checks paid, or money lent.
(b) Branches means staffed banking facilities (shared or
unshared) with a fixed site at which deposits are received or
checks paid or money lent, including mini-branches in
grocery stores or branches operated in conjunction with any
other local businesses. churches, or other non-profit
organizations.
(c) Consumer loans means closed-end loans extended to a
natural person primarily for personal, family. or household
purposes. but does not include home mongage loans as
defmed in § 2S.S(e), credit card loans, or motor vehicle
loans.
(j) Reponable loans means home mongage loans. consumer
loans. and loans to small businesses and small farms.
(lc) Retail banks means insured banks that are in the business
(d) Geographies means census tracts or block numbering
areas.
of extending credit to the public and that make a significant
amount of reponable loans.
(e) Home mongage loans means closed-end loans that are
mongage loans as defmed in section 303(1) of the Home
Mongage Disclosure Act (HMDA) (12 U.S.C. 2802(1», and
implementing regulations.
(I) Small banks means-
(I) Independent banks with total assets of less than $250
million; or
(2) Banks with total assets of less than $2S0 million that are
subsidiaries of a holding company with total banking and
thrift assets of less than $250 million.
(f) Illegal discrimination means discrimination on a
prohibited basis as set forth in the Equal Credit Opportunity
Act. IS U.S.C. 1691 through 169lf. or the Fair Housing Act.
42 U.s.C. 3601 through 3619.
(m) Small businesses means private for-profit organizations
that had for the calendar or fiscal year preceding the making
of the loan(\) average annual gross receipts of $10 million for a
concern providing services; or
(2) up to 500 employees for a manufacturing concern.
(g) Indirect loans means loans made indirectly by a bank
through panicipation in a lending consonium in which lenders
pool their resources. by subsidiaries of the bank. by nonchanered affiliates funded by the bank. or by lawful
- 18 -
geographies In Its service area represent a substantial
percentage of its reportable loans in its service area (prOVided
that the bank does not u!lreasonably exclude low- and
moderate-income geographies from its lending).
(2) High Satisfactory. Subject to rebuttal, the oce presumes
an institution is lending in a high satisfactory fashion if (i) The bank's market share of reportable loans in low- and
moderate-income geographies in its service ar~a is at least
roughly comparable to its market share of reportable loans In
the remainder of its service area; and
(ii) Either:
(A) It has made a significant amount of reportable loans In
most of the low- and moderate-income geographies in its
service area; or
(B) Its reportable loans to low- and moderate-income
geographies in its service area represent a very significant
percentage of its reportable loans in its service area (provided
that the bank does not unreasonably exclude low- and
moderate-income geographies from its lending).
(3) Low Satisfactory. Subject to rebuttal, the oee presumes
a bank is lending in a low satisfactory fashion if (i) The bank's market share of reportable loans in low- and
moderate-income geographies in its service area is at least
roughly comparable (0 Its market share of reportable loans In
the remainder of its service area; and
(ii) Either:
(A) It has made a significant amount of reportable loans in
many of the low- and moderate-income geographies in its
service area; or
(B) Its reportable loans (0 low- and moderate-income
geographies in its service area represent a significant
percentage of its reportable loans in its service area (provided
that the bank does not unreasonably exclude low- and
moderate-income geographies from its lending),
\n) SfTUlli farms means pnvate orgamzatlons engaged in
farmmg operations with average annual gross receipts of less
than $500,000 for the calendar or tiscal year preceding the
makmg of the loan.
Wholesale and limited-purpose ban1<s means msured
banks that are In the bus mess of extending credit (0 the public
but make no significant amount of reportable loans.
10)
§ 25,6 Assessment standards - summary,
(a) Except for banks assessed under the special standards of §
25.11, the oee assesses a bank's eRA performance as
described in this section. The oee reviews, among other
things, the bank's eRA public file and any signed, wrinen
comments about the bank's eRA performance submitted to
the bank or the oee. In assessing a bank's eRA
performance, the oee considers whether the bank is helping
to meet the credit needs of its entire community. In
examinations, however, the oee pays particular attention to
the bank's record of helping to meet the credit needs in lowand moderate-income geographies. That record is primarily
evaluated using three measures: the Lending Test (described
In § 25.7), the Invesunent Test (described in § 25.8) and the
Service Test (described in § 25.9). Based on these separate
assessments, the oee assigns the bank one of four overall
composite ratings as described in § 25.10. The four
composite ratings are Outstanding, Satisfactory, Needs to
Improve, and Substantial Noncompliance.
(b) The composite ratings reflect the extent of compliance or
noncompliance with the community reinvesunent obligation
described in § 25.2. A bank that receives a composite rating
of Substantial Noncompliance shall be subject to enforcement
actions pursuant to 12 u.s.e. 1818.
(c) This regulation and the eRA do not require any bank to
make loans or invesunents that are expected to result in losses
or are otherwise inconsistent with safe and sound operations.
However, banks are permined and encouraged to develop and
apply flexible underwriting standards (that are consistent with
safe and sound operations) for loans that benefit low- and
moderate-income geographies or individuals.
Needs to Improve. Subject to rebuttal, the oee
presumes a bank needs to improve its record under the
Lending Test if(i) The bank's market share of reportable loans in !ow- and
moderate-income geographies in its service area is less than,
and not roughly comparable to, its market share of reportable
loans in the remainder of its service area: or
(ii) It has made reportable loans in only a few of the lowand moderate-income geographies in its service area, and
reportable loans to low- and moderate-income geographies in
its service area represent an insignificant percentage of its
reportable loans in its service area.
(5) Substantial Noncompliance. Subject to rebuttal. the aee
presumes a bank is in substantial noncompliance with the
Lending Test if (i) The bank's market share of reportable loans in low- and
moderate-income geographies in its service area is
significantly less than its market share of reportable loans in
the remainder of its se~vice area; and
(ii) It has made very few, If any, reportable loans in the lowand moderate- income geographies in its service area.
(4)
§ 25,7 Lending Test.
(a) SUmfTUlry. The Lending Test evaluates primarily whether
a retail bank is making loans in low- and moderate-income
geographies as well as to wealthier geographies. The test
examines direct lending by the bank itself and, if the bank
elects, indirect lending to the extent permined by this part.
(b) Standards. The oee rates a bank's lending performance
in a service area under the following rebuttable presumptions.
(I) Outstanding. Subject to rebuttal. the oee presumes a
bank is lending in an outstanding fashion if (i) The bank's market share of reportable loans in low- and
moderate-income geographies in its service area significantly
exceeds its market share of reportable loans in the remainder
of its service area; and
Iii) Either:
(A) It has made a signiticant amount of reportable loans in the
vast maJonty of the low- and moderate-mcome geographies in
Its service area; or
\B) Its reportable loans (0 low- and moderate-income
Method of ComputatIOn.
(I) General. For purposes of the Lending Test, the oee,
rather than the bank, is responSible for making the
computations. The oee bases such computations upon the
(c)
- 19 -
bank's reported loan data required under § 25. 13 and the
aggregate reported loan data supplied by the Federal financial
supervisory agencies. In making lending test computations,
the oee measures market share, amount of loans, and
percentage using both volume of loans and number of loans.
(2) Market Share. The oee computes market share for
volume and number of loans for each type of reportable
loans: home mortgage loans, consumer loans, and small
business and farm loans. The oee awards an overall market
share performance rating after weighing each lending category
based on such factors as the needs of the community being
served, the bank's capabilities and business plans, and the
degree to which the bank's performance with respect to one
of the loan categories, in fact, balances or compensates for its
performance under another category.
(d) Adjustments.
(1) The oee may increase a bank's lending rating if the
bank participates in a program for giving further reviews to
loan applications that would otherwise be denied. More
credit will be given for such a program if it is done in
conjunction with a community organization in such a way that
the organization either participates in the review or offers
applications from low- and moderate-income individuals that
the bank will consider for credit. The oee may also
increase the rating if the bank has made a substantial amount
of loans requiring creative or innovative underwriting (while
maintaining a safe and sound quality) or loans for which there
is particular need, such as loans for multifamily housing
construction and rehabilitation, loans to start-ups, very small
businesses or community development organizations or
facilities and loans to very low-income individuals and areas.
The oee will also consider favorably in reaching a rating
loans made to third parties, such as community development
organizations and intermediaries, that make loans or facilitate
lending in low- and moderate-income geographies, even if the
loans by the bank are not reportable under this part, are not
made to third parties in the bank's service area, or are made
to third parties that serve service areas other than the bank's.
(2) In exceptional cases, the oee may reduce a rating
achieved under this section if it concludes that the quantitative
measures in this section fail to reflect the bank's actual record
of lending to low- or moderate-income individuals or
geographies.
(iii) May any bank be assigned a dispropomonate share of all
loans (measured in both number and volume) made in lowand moderate-income geographies by a lending entity in
which the institutions invested or participated.
(4) If a bank elects, indirect loans attributed to a bank under
this paragraph may be included in "reportable loans" for
purposes of the Lending Test if a bank reports them under §
25.13.
(f) Application to wholesale and limired-purpose banks. The
Lending Test of this section does not apply to wholesale or
limited-purpose banks. In evaluating the record of wholesale
and limited-purpose banks in satisfying their community
reinvestment obligation, the oee uses the Investment Test in
§ 25.8 instead of the standards of paragraph (b) of this
section. For purposes of assigning a composite rating as
described in § 25.10, the oee substitutes a wholesale or
limited-purpose bank's rating under the Investment Test for a
rating under the Lending Test.
(g) Rebutting presumptions. A bank can rebut a presumptive
rating under this section by clearly establishing to the
satisfaction of the oee that the quantitative measures in this
section do not accurately present its lending performance
because, among other reasons (I) The quantitative measures of this section do not reflect
the bank's significant amount of loans benefiting low- and
moderate-income geographies or persons;
(2) Other quantitative measures of the bank's lending
performance demonstrate a higher level than that reflected by
the measures under this section;
(3) Peculiarities in the demographics of the bank's service
area exist that significantly distort the quantitative measures of
this section;
(4) Economic or legal limitations peculiar to the bank or its
service area or unusual general economic conditions have
affected its performance and ought to be considered; or
(5) The bank's performance as measured by the market share
component of the Lending Test does not reflect its overall
lending performance because of the extraordinarily high level
of performance, in the aggregate, by lenders in the bank's
service area.
§ 25.8 Investment Test.
(a) Summary. The Investment Test evaluates banks on the
amount of their investments benefiting low- and moderateincome geographies or persons.
(e) Indirect Lending.
(I) If the bank elects, the oee will attribute to a bank its
reported anributable indirect loans.
(2) In the usual case, the indirect loans attributable to a bank
equal the bank's percentage share (based on the level of the
bank's investment or participation) of each loan made through
the entity in which the bank has invested or participated.
(3) At the option of all investing or participating institutions,
an alternative method of attributing loans among the investing
or participating institutions may be established. In no case,
however:
(i) May the indirect loans anributed to any bank exceed its
percentage share of the total loans (measured in both number
and volume) made directly by the lending entity in which the
institutions invested or participated;
(ii) May the investors or participants claim, in the aggregate,
indirect loans (measured in both number and volume) in
excess of the loans actually made in any geography by the
lending entity in which they invested or participated; or
(b) Standards. The oee rates a bank's investment
performance under the following rebunable presumptions:
(1) Outstanding. Subject to rebunal. the aee presumes a
bank is providing qualified investments in an outstanding
fashion if the bank has made such investments in an amount
that is substantial as compared to its capital.
(2) High Satisfactory. Subject to rebunal. the aee
presumes a bank is providing qualified investments in a high
satisfactory fashion if the bank has made such investments in
an amount that is very significant as compared to its capital.
(3) Low Satisfactory. Subject to rebunal. the aee presumes
a bank is providing qualified investments in a low satisfactory
fashion if the bank has made such investments in an amount
that is significant as compared to its capital.
(4) Needs to Improve. Subject to rebunal. the aee
- 20 -
presumes a bank needs to Improve Its record of providing
quail tied Investments If the bank has made such lllvestments
In an amount that IS insignificant as compared to Its capital.
(5) Substanllal Noncompliance. Subject to rebunal, the ace
presumes a bank IS in substanllal noncompliance with the
Investment Test If the bank has devoted very little, If any,
capital to qualified investments.
(c) QuaLified Investments. Qualified investments are lawful
Investments thaI demonstrably benefit low- and moderateIncome geographies or persons in the bank's service area.
Qualified investments may include investments:
(I) In support of affordable housing, small business,
consumer, and other economic development initiatives;
(2) In community development banks, community
development corporations, community development projects,
small business investment corporations, minority small
business investment corporations and minority- and womenowned financial institutions and other community development
financial intermediaries;
(3) In consortia or other structures serving low- and
moderate-income individuals and neighborhoods and poor
rural areas;
(4) In state and local government agency housing bonds or
state and local government revenue bonds specifically aimed
at helping low- and moderate-income communities and
individuals.
(d) Capital. For purposes of the lnvestment Test, the ace
will evaluate the amount of qualified investments against the
amount of the bank's risk-based capital.
(i) Adjustments to Investment Test. The ace may adjust a
bank's ratlllg under the lnvestment Test. Adjustments may
Increase or, in exceptional cases, decrease the rating. In
making these adjustments the ace considers whether:
(1) The bank's qualified lllvestments are particularly
innovative or meet a speCial need, or if the bank's activities In
connection with its qualified investments have been
particularly complex, innovative or intensive for a bank of its
size, or involve innovallve partnerships with community
organizations (examples include helping to establish an enuty
to conduct community development activities or providing
significant service or assistance in support of a qualified
investment); or
(2) The bank has made a large amount of investments thaI
would be qualified investments but for the fact that they fail
to benefit the bank's service area as required by paragraph (e)
of this section, provided the bank has not neglected
investments that benefit its service area.
§ 25.9 Service Test.
(a) Summary. The Service Test evaluates the accessibility of
a retail banle's branches and the extent to which any bank
provides other services that enhance credit availability. The
Service Test does not require a bank to expand the size of its
branching network or to operate facilities at a loss.
Appropriate consideration is given to the limitations faced by
banks with a small number of branches. The ace evaluates
retail banks with multiple branches under the Service Test
primarily on the extent to which they offer branches. The
ace evaluates wholesale and limited-purpose banks on the
extent to which they provide other services that enhance credit
availability .
(e) Benefit to service area. In order to be eligible as a
qualified investment under paragraph (c) of this section. the
activity or entity supported by an investment need not solely
benefit the bank's service area. However, the activity or
entity supported by the investment must significantly benefit
low- and moderate-income geographies or persons in the
bank's service area.
ace rates a retail
bank's service performance in a service area under the
following rebuttable presumptions.
(l) Outstanding. Subject to rebuttal. the ace presumes a
bank is providing service in an outstanding fashion if a
substantial percentage of the bank's branches are located in or
readily accessible to low- and moderate-income geographies
in its service area.
(2) High Satisfactory. Subject to rebuttal. the ace presumes
a bank is providing service in a high satisfactory fashion if a
very significant percentage of the bank's branches are located
in or readily accessible to low- and moderate-income
geographies in its service area.
(3) Low Satisfactory. Subject to rebuttal. the ace presumes
a bank is providing service in a low satisfactory fashion if a
significant percentage of the bank's branches are located in or
readily accessible to low- and moderate-income geographies
in its service area.
(4) Needs to Impruve. Subject to rebuttal, the ace
presumes a bank needs to improve Its record of providing
service if an insignificant percentage of the bank's branches
are located in or readily accessible to low- and moderateincome geographies in its service area.
(5) Substantial Noncompliance. Subject to rebunal, the oec
presumes a bank is in substantial noncompliance with the
Service Test if very few, if any, of the bank's branches are
located in or readily acceSSible to low- and moderate-income
geographies in its service area.
(b) Standards for retail banks. The
(f) Exclusion of indirect loans. lnvestments that a bank has
elected to report as indirect lending under the Lending Test
are not counted as qualified investments under this Test.
(g) Grants. Grants that would constitute qualified investments
were they in the form of investments will be treated as
qualified investments for purposes of the lnvestment Test. A
bank may also donate, sell on favorable terms, or make
available on a rent-free basis any branch which is located in a
predominately minority neighborhood to a minority depository
institution or women's depository institution as defined in 12
USc. 2907.
(n) Application to wholesale and limited purpose banks. For
purposes of determining qualified investments under
paragraph (c) of this section, the service area of wholesale
and limited purpose banks IS defined to include all low- and
moderate-Income geographies or persons Within the United
States and its territories. Loans by wholesale and limited
purpose banks that would conslltute qualified investments
were they In the form of Investments will be treated as
qualified Investments for the purposes of the Investment Test.
- 21 -
(c) Adjustments for retail banks. If necessary, the oee
adjusts a retail bank's rating to reflect more accurately the
service provided to low- and moderate-income geographies
and individuals.
(l) Adjustment to reflect more accurately branch service.
The oee may adjust a bank's record upward or downward to
reflect more accurately its branch service to low- or
moderate-income geographies or individuals. Downward
adjustments will occur only in exceptional cases. In
determining the appropriateness and degree of any adjustment,
the OCC may consider the bank's record of opening and
closing branches. The OCC may also consider whether
branches in or readily accessible to low- and moderate-income
geographies actually serve low- and moderate-income
individuals and whether branches not located in or readily
accessible to such geographies are nonetheless serving lowand moderate-income individuals. The oec may also take
into account significant differences in the quantity, quality or
types of services offered to low- or moderate-income
individuals or geographies and similar considerations.
(2) Adjustment to reflect other services that promote credit
availability. The OCC may adjust a bank's rating upward to
reflect a strong record of offering or supponing services that
promote credit availability for low- and moderate-income
geographies or individuals. These services include credit
counseling, low-cost check cashing, "lifeline" checking
accounts, financial planning, home ownership counseling,
loan packaging assisting small and minority businesses,
pannerships with community-based organizations to promote
credit-related services, extensive provision of ATMs or other
non-branch delivery systems that are panicularly accessible
and convenient to low- and moderate-income geographies or
individuals. and similar programs.
Service Test if it prrwldes very few, If any, services deSCribed
In paragraph (c)(2) of this section or very Iinle, if any,
suppon for organizations that furnish such services.
(e) Rebutting presumptions. A bank can rebut a presumptive
rating under this section by clearly establishing to the
satisfaction of the OCC that the quantitative measures In this
section do not accurately represent its service performance
because, among other reasons(I) The quantitative measures of this section do not reflect
the bank's significant degree of services that promote credit
availability to low- and moderate-income geographies or
persons;
(2) Peculiarities in the demographics of the bank's service
area exist that significantly diston the quantitative measures of
this section; or
(3) Limitations imposed by the bank's fmancial condition.
economic or legal limitations on branch operation or location.
or similar circumstances have affected its performance and
ought to be considered.
§ 25.10 Composite ratings.
(a) Composite rating standards. OCC assigns composite
ratings as follows:
(I) Base rating. For retail banks. the bank's rating under the
Lending Test forms the basis for its composite rating. For
wholesale or limited-purpose banks. the bank's rating under
the Investment Test serves as the basis for the composite
. rating. The base rating under this paragraph is adjusted as
described in paragraphs (a)(2) and (a)(3).
(2) Effect of Investment Rating. For retail banks. the base
rating is increased by two levels if the bank has an
outstanding rating in the Investment Test or by one level if
the bank has a high satisfactory rating in the Investment Test.
(3) Effect of Service Rating. The base rating is increased by
one level if the bank has an outstanding rating in the Service
Test and is decreased by one level if the bank has a rating of
substantial non-compliance in the Service Test.
(4) Final composite rating. Subject to paragraph (b) of this
section. the OCC convens the rating resulting from
paragraphs (a)( I) through (a)(3) of this section into a final
composite rating as described in this paragraph. High
satisfactory and low satisfactory ratings are both scored as
satisfactory in the fmal composite rating. A bank that would
otherwise receive a composite rating of needs to improve will
receive a final composite rating of substantial noncompliance
if the bank received no bener than a needs to improve rating
on both of its last two examinations.
(d) Application to wholesale and limited-purpose banks. The
OCC rates a wholesale or limited-purpose bank's service
performance under the following rebuttable presumptions:
(1) Outstanding. Subject to rebuttal. the OCC presumes a
bank is providing service in an outstanding fashion if it is
providing a substantial amount of the services described in
paragraph (c)(2) of this section or providing substantial
suppon for organizations that furnish such services.
(2) High Satisfactory. Subject to rebuttal. the OCC presumes
a bank is providing service in a high satisfactory fashion if it
is providing a very significant amount of the services
described in paragraph (c)(2) of this section or providing very
significant suppon for organizations that furnish such
services.
(3) Low Satisfactory. Subject to rebuttal. the OCC presumes
a bank is providing service in a low satisfactory fashion if it
is providing a significant amount of the services described in
paragraph (c)(2) of this section or providing significant
suppon for organizations that furnish such services.
(4) Needs to Improve. Subject to rebuttal. the OCC
presumes a bank needs to improve its record of providing
service if it is providing an insignificant amount of the
services described in paragraph (c)(2) of this section or
providing inSignificant suppon for organizations that furnish
such services.
(b) Effect of discrimination. Evidence that a bank has
engaged in illegal discrimination may affect the bank's eRA
rating. Notwithstanding paragraph (a) of this section and
subject to rebuttal, the oce assigns a bank a final composite
rating lower than satisfactory if the bank has-
(I) Engaged in a panern or practice of illegal discrimmatlon
that it has not corrected fully; or
(2) Committed an isolated act of illegal discrimination of
which it has knowledge and that it has not corrected fully or
is not in the process of correcting fully.
(5) Substantial Noncompliance. Subject to rebuttal. the oce
presumes a bank is in substantial noncompliance with the
(c) Multiple service areas. Where a bank operates in more
- 22 -
than one servIce area, the Gee conducts Lending, lnvestment
and Service tests In a sample of all of the service areas In
which a bank operates. The Gee assigns separate composJle
eRA ratings to the bank's performance in each of the service
areas studied. A list of the service areas in which the bank's
CPA performance was eumined, along with the rating
assigned to the bank's eRA record in each of the service
areas, shall be Included In the bank's public performance
evaluauon. The overall rating for the bank reflects the
performance of the bank in the service areas studied.
(ii) Its record of proViding branches, A TMs, and other
services that enhance credit avatlability or m other ways ser\'C
the convemence and nec:ds of low- and moderate-income
persons In its service area.
(4) Multiple servIce areas. If a small bank operates in more
than one service area, the Gee evaluates the banJc's
performance in all of those service areas.
(b) Strategic plan assessment.
(I) As an alternative to being rated after the fact under the
lending, service and investment tests or the small bank
assessment method, a bank may submit to the Gee for
approval a strategic plan detailing how the bank proposes to
meet its eRA obligation.
(i) The plan must be submined at least three months prior to
the proposed effective date of the plan so that the Gee has
sufficient time to review the plan and to determine whether to
approve it.
(ii) A bank submining a proposed plan for approval must
publish notice in a newspaper of general circulation in each of
its service areas stating that a plan has been submitted to the
Gee for review, that copies of the plan are avatlable for
review at offices of the bank. and that comments on the
proposed plan may be sent to the Gee in accord with §§ 5.10
and 5.11 of this chapter.
(iii) The Gee assesses every plan under the standards of this
pan and will not approve a plan unless it provides measurable
goals against which subsequent performance can be evaluated
and the proposed performance is at least overall satisfactory
under the standards of this pan.
(iv) No plan may have a term that exceeds two years.
Further, during the term of a plan, the bank may petition the
Gee to approve an amendment to the plan on grounds that a
material change in circumstances has made the plan no longer
appropriate.
(2) The GCe will assess the performance of a bank operating
under an approved plan to determine if the bank has met or
exceeded the plan goals. However, if the bank fails to meet
or exceed the preponderance of the measurable goals set forth
in the plan, its performance will be evaluated under the
lending, service and investment tests or the small bank
assessment method, as applicable.
§ 25.11 Alternative assessment methods.
(a) Small bani< assessment standards, A small bank (as
defined in § 25.5(1) may choose to have the Gee assess its
eRA performance under this section rather than the general
standards described in §§ 25.6 through 25.10.
(I) The Gee presumes a small bank's overall eRA
performance is satisfactory if the bank:
(i) Has a reasonable loan-to-deposit ratio (a ratio of 60
percent, adjusted for seasonal variation, is presumed to be
reasonable) given its size, its financial condition, and the
credit needs in its service area;
(ii) Makes the majority of its loans in its service area;
(iii) Has a good loan mix (i.e., makes, to the extent
permlned by law and regulation, a variety of loans to
customers across economic levels);
(iv) Has no legitimate, bona-fide complaints from commumty
members;
(v) Has not engaged in a panern or practice of illegal
discrimination that it has not corrected fully; and has not
commined isolated acts of illegal discrimination, of which it
has knowledge, that it has not corrected fully or is not in the
process of correcting fully; and
(vi) In the case of a bank already subject to reponing home
mongage lending data under HMDA, has a reasonable
geographic distribution of such loans;
(2) A small bank that meets each of the standards for a
satisfactory rating under this paragraph and exceeds some or
all of those standards may warrant consideration for an
overall rating of outstanding. In assessing whether a small
bank's eRA record is outstanding, the Gee will consider the
extent to which the bank's loan-to-deposit ratio, its lending to
its service area. and its loan mix exceed the standards for a
satisfactory rating. In addition. at the option of the bank, the
Gee will evaluate:
(i) Its record of making qualified investments (as described in
§ 25.8(c»; and
(ii) Its record of providing branches, ATMs, and other
services that enhance credit availability or in other ways meet
the convenience and needs of low- and moderate-income
persons in its service area.
(3) A small bank that fails to meet or exceed all of the
standards for a satisfactory ratlng under this paragraph is not
presumed to be performing in a less than satisfactory manner.
Rather, for those banks, the Gee conducts a more extensive
examination of the bank's loan-to-deposit record, its record of
lending to Its local community, and its loan mix. The Gee
will also contact members of the community, particularly In
response to complaints about the bank. and review the
findings of its most recent fair lending examination. In
addition, at the option of the bank, the Gee will assess:
\1) Its record of making qualified Investments (as deSCribed in
§ 25.8(c); and
§ 25.12 Service Area - delineation.
(a) The effective lending territory of a retail bank defmes the
bank's service area. The effective lending territory is that
area around each office or group of offices where the
preponderance of direct reportable loans made through the
office or offices are located.
(b) Subject to rebuttal. a bank's service area is presumed to
be acceptable if the area is broad enough to include low- and
moderate-income geographies and does not arbitrartly exclude
low- and moderate-income geographies.
(c) A bank can show that its service area is acceptable
despite its failure to satisfy the criteria of paragraph (b) of
this section by clearly demonstrating to the satisfaction of the
Gee that the criteria of paragraph (b) of this section are
inappropriate because. for example, there are no low- or
moderate-income geographies within any reasonable distance
given the size and financial condition of the bank.
- 23 -
(d) The ace can reject as unacceptable a service area
meeting the criteria of paragraph (b) of this section if the
ace finds that the service area does not accurately reflect the
true effective lending territory of the bank or reflects past
redlining or illegal discrimination by the bank.
Lending Test under § 25.7.
(c) For purposes of this section, a loan is located in a
geography as follows:
(I) Consumer loans are located in the geography where the
borrower resides.
(2) Loans secured by real estate are located in the geography
where the relevant real estate is located.
(3) Small business loans are located in the geography where
the headquarters or principal office of the business is located.
(4) Small farm loans are located in the geography where the
farm propeny is located.
(e) A bank shall delineate more than one service area when
the geographies it serves extend substantially across state
boundaries or extend substantially across boundaries of a
Metropolitan Statistical Area.
(f) A bank whose business predominantly consists of serving
persons who are active duty or retired military personnel or
their dependents and who are located outside its local
community or communities may delineate a "military
community· for those customers as a service area.
(d) A bank is not required to report under this section
indirect loans unless the bank elects to have the indirect loans
attributed to it as described in § 25.7(e) for purposes of the
Lending Test. If a bank elects to report its indirect loans. it
shall report all attributable indirect loans outside low- or
moderate-income geographies as well as loans inside such
geographies.
(g) A wholesale or limited-purpose bank need not delineate a
service area.
(h) A bank shall compile and maintain a list of all the
geographies within its service area or areas and a map of each
service area showing the geographies contained therein.
§ 25.14 Public me and disclosure.
(a) Banks shall maintain files that are readily available for
public inspection containing the information required by this
section.
§ 25.13 Loan data - coUection. reporting, and disclosure.
(a) Every bank. except small banks electing the small bank
assessment method. shall collect and maintain the following
data on its government insured and other reportable loans:
number of written applications. number of application denials.
number and amount of approvals. number and amount of
loans purchased. and number and amount of indirect loans the
bank elects to have evaluated using the lending test. All
information is to be provided by the geography where the
loan is located.
(1) A bank choosing to be rated under the strategic plan
assessment described in § 25.1 1(b) is not relieved from its
obligation to report the data as required by this section.
(2) The information required under this section shall be
collected:
(i) Beginning July I, 1994. for the remaining six months of
1994. A summary of the bank's data for the six months shall
be submitted to ace by January 31. 1995.
(ii) Beginning January 1. 1995. on an annual basis. a
summary of the bank's data collected under this section shall
be submitted to ace by January 31 of the following year.
The summary data shall be submitted in the format prescribed
herein (See Appendix A).
(3) Small business loan data shall be collected. reported. and
disclosed in the summary format described in § 25.13(a) for
the following categories: small businesses with average annual
gross receipts of less than S250.000. those with average
annual gross receipts of S250.000 or more and less than S 1
million; those with average annual gross receipts of S 1 million
or more and less than S 10 million; and manufacturing
businesses with average annual gross receipts of SIO million
or more and less than 500 employees.
(4) Home mortgage loan data shall be collected. reported.
and disclosed in the summary format described in § 25. 13(a)
for the following categories: 1-4 family home purchase, 1-4
family home improvement. 1-4 family refinancings, and
multi-family loans. (b) The aec will make summary data
collected pursuant to this section available to the public and to
the banks. The data will be used by the aec to apply the
(b) Each bank shall include in its public file the following
information (1) All signed. written comments received from the public
for the current year and past two calendar years that
specifically relate to the bank's performance in helping to
meet the credit needs of its community or communities. and
any response to the comments by the bank;
(2) A copy of the public section of bank's most recent CRA
Performance Evaluation prepared by the ace. The bank
shall place this copy in the public file within 30 business days
after its receipt from th:: aec; and
(3) A list of the bank's service areas and the geographies
within each service area and a map of each service area
showing the geographies contained therein.
(c) A bank that is not a small bank shall include in its public
file the lending data the bank has reported to the acc under
§ 25.13 for the current and past two calendar years.
(d) A small bank shall include in its public file the bank's
Loan-to-Deposit ratio computed at the end of the most recent
calendar year.
(e) A bank that has been approved to be assessed under a
strategic plan as described in § 25.11(b) shall include in its
public file a copy of that plan.
(f) Each bank that received a less than satisfactory rating
during its most recent examination shall include in its public
file a description of its current efforts to improve its
performance in helping to meet community credit needs.
(g) A bank shall maintain its public file or required portIOns
of the file at the following offices(1) Head offices shall have a copy of the complete public
tile; and
(2) Branches shall have copies of all materials in the public
- 24 -
file relating
(Q
la) The OCC takes .nto account the appltcant's record of
performance 10 consldenng applicauons for(I) Establishment of a ;iomesuc branch. ATM. or other
faCIlity WIth the abIlity to accept deposits:
(2) Relocation of the maIO office. a branch office or ATM:
(3) Merger or consolidation WIth or the acqUIsition of asselS
or assumption of liabilities of a federally-insured deposJlorv
msuruuon: and
.
(4) Conversion of a federally-insured depository institution to
a national bank charter.
the servIce area m whIch the branch IS located.
(h) A bank shall provIde copIes of the mformatlon m the
public tile to members of the public upon request. A bank
may charge a reasonable fee not to exceed the cost of
reproducuon and maIling (if applicable).
§ 25.15 Public notice by banks.
A bank shall proVIde, m the public lobby of its head office
and each branch. the public nouce set forth below. Bracketed
matenal shall be used only by banks having more than one
servIce area. The last two sentences shall be included only if
the bank is a subsidiary of a holding company and the last
sentence only if the company is not prevented by starute from
acqUIring additional banks.
(b) An applicant for a national bank charter (other than a
federally-insured depository instirution) shall submit a
description of its proposed CRA performance when the
application is made. In considering the application. the oce
takes into account the bank's proposed CRA performance.
COMMUNITY REINVESTMENT ACT NOTICE
(c) In considering CRA performance in a corporate
application. the OCC will take mto account any views
expressed by State or other Federal financial supervisory
agencies or other interested parties. which are submitted In
accordance with the OCC's procedures set forth in pan 5 of
this chapter or § 25.16.
Under the Federal Community Reinvesunent Act (CRA), the
Comptroller of the Currency evaluates and enforces our
compliance with our obligation (Q help meet the credit needs
of this communtty consistent with safe and sound operations.
The Comptroller also takes our CRA performance into
account when the Comptroller decides on certain applications
submitted by us. Your involvement is encouraged. You
should know that:
(d) In the OCC's conSIderation of the bank's CRA record '"
a corporate applicauon, the CRA rating assigned to a bank IS
an important. and often controlling. factor. However. the
rating is not conclusive evidence of performance. Absent
other evidence on performance. CRA ratings generally affect
corporate applications as follows:
(1) An •outstanding· rating generally will result in a fmding
that the CRA aspect of the application is consistent with
approval of the application and will receive extra weight in
reviewing the application.
(2) A ·satisfactory" ratmg generally will result in a finding
that the CRA aspect of the application is consistent with
approval of the application.
(3) A "needs to improve" rating generally will be an adverse
factor in the CRA aspect of the application, and absent
demonstrated improvement in the bank's CRA performance or
other countervailing factors. generally will result in dental or
conditional approval of the application.
(4) A "substantial noncompliance" ratmg generally will be so
adverse a fmding on the CRA aspect of the application as to
result in denial of the application.
You may look at and obtain in this office information on our
performance in this community. This information includes a
tile of all signed. written comments received by us, any
responses we have made to the comments, evaluations by the
Comptroller of our CRA performance, and data on the loans
we have made in this community during the past two years.
[Current CRA information on our performance in other
communities served by us is avaIlable at our head office,
located at
.)
You may send signed, written comments about our CRA
performance in helping to meet community credit needs (Q
(title and address of bank official) and to the Deputy
Comptroller (address). Your letter, together with any
response by us, may be made public.
You may ask the Comptroller to look at any comments
received by the Deputy Comptroller. You also may request
from the Deputy Comptroller an announcement of our
applications covered by the CRA tiled with the Comptroller.
We are a subsidiary of (name of holding company), a bank
holding company. You may request from the Federal
Reserve Bank of (city, address) an announcement of
applications covered by the CRA tiled by bank holding
companIes.
§ 25.18 Transition rules.
(a) Data collection. The data collection and reponmg
requirements of § 25.13 will go into effect July 1. 1994.
Data collected from July I, 1994 to year end must be reported
to the OCC no later than January 31. 1995. Thereafter banks
will collect data on an annual basis and the data shall be
reported no later than January 31 of the following year.
§ 25.16 Publication of planned examination schedule.
(b) Assessment standards. Evaluation under the new
The OCC WIll publish at least 30 days in advance of the
begtnnmg of each calendar quarter a list of the banks that are
scheduled for CRA examtnauons m that quarter. Any member
of the public may submit comments (Q the OCC regarding the
eRA performance of any bank whose name appears on the
list.
standards is mandatory after July 1. 1995. except that. until
April I, 1996. for good cause. an instirution may request the
OCC to evaluate it under the standards in place prior to
[insert effective date of regulation). During the time period
from April 1. 1995 unul July 1. 1995. a bank may. at Its
opuon. choose to be evaluated under the new standards or
under the standards 10 place pnor to [insert effecuve date oi
regulation) .
§ 25.17 Effect of ratings - corporate applications.
- 25 -
(c) Strategic plan. If a bank elects to be evaluated under an
approved strategic plan during the transition period. a bank
may submit a strategic plan anytime after [insert effective date
of regulation).
(d) Corporate applications. If the first rating a bank receives
under the new standards (whether that rating is given during
the transition period or after the new standards become
effective) is more than one rating category below the last
rating the bank received prior to [insert effective date of the
regulation). the ace will not disapprove any corporate
application or take any other enforcement action against the
bank based on that lower rating if the ace has determined
that the drop in the bank' s rating occurred despite the bank' s
good faith efforts to perform at least satisfactorily under the
new standards.
2. Appendix A to part 25 is added as set forth at the end of
the common preamble.
Date
Eugene A. Ludwig
Comptroller of the Currency
- 26 -
[This signature page relates to the acc's portion of Joint notice of proposed rulemaking
titled "Community Reinvestment Act Regulations."1
I
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Eugen{ A. Ludwig v /
Comptroller of the Currene;
7
C)
NEWS RELEASE
Comptroller of the Currency
NR 93-128
Administrator of National Banks
Washington,
Dd':- io~, ~
,,,I, '"
'.~ " .. ,
For:
Release After White House News Conference
Date:
December 8, 1993
Contact:
(202) 874-4700
CRA REFORM PROPOSAL WOULD INCREASE LOW-INCOME LENDING
AND REDUCE REGULATORY BURDEN ON BANKS
A new regulatory proposal would encourage banks to provide credit, services, and
investments to America's low- and moderate-income communities, while reducing the
regulatory burden on financial institutions. The proposal carries out President Clinton's
initiative to reemphasize the original goal of the Community Reinvestment Act (CRA) by
making credit and financial opportunities available to all people in all communities
throughout urban and rural America.
Comptroller of the Currency Eugene A. Ludwig today released a copy of the new proposed
regulation for public comment. The other federal financial institution supervisory agencies
(the Federal Deposit Insurance Corporation, the Federal Reserve Board, and the Office of
Thrift Supervision) are expected to announce similar proposals later this week.
"The proposed reform package we are unveiling today follows the President's directive and
fulfills the promise of the law," said Comptroller Ludwig at a White House news conference.
"It would channel billions of dollars in new credit into America's distressed communities,
while at the same time reducing unnecessary burdens on the banks. It would make the law
work."
The proposed CRA rule emphasizes performance over documentation. The following three
evaluation standards, or tests, would replace the current 12 assessment factors for CRA
review and rating:
•
The lending test would evaluate direct lending, and if the institution chose,
indirect lending through loan pools, lending consortia, subsidiaries, funded
non-chartered affiliates, or other lenders in which the institution had invested.
•
The service test would evaluate the provision of branches accessible to lowand moderate-income areas, and the provision of services that promote credit
availability.
- more -
DEC 08 '93 12:17 OCC/COMMUNICATIONS
•
~
The investment test would Qke into aceount investment in organizations or
initiatives that foster community development. small and minority~wned
business development, or affordable housing lending.
Banks would not be required to meet all three tests to get satisfactory ratings. Retail banks
would be evaluated primarily on their lending, although their services and investment records
would also be assessed. Wholesale and limited purpose banks would be evaluated primarily
on their investment in organizations and initiatives that promote credit availability or funding
for affordable housing. community development and small and minority~wned business
development.
Small independent banks with under $250 million in assetS, or members of a holding
company structure with less than $250 million in assets, would be elilible for streamlined
examinations. Larger banks would be required to ~rt additional data to regulators on the
geographic distribution of their small business and some consumer loans. New data
reporting requirements would not apply to small institutions.
A bank would also have the option of submitting to its regulator a eRA plan for approval
and then be evaluated under that plan. The plan would have to be publicly available and
have measurable goals. The regulator would consult with community groups to determine
whether the plan responded to community credit needs.
-
The Compuoller said that the proposed changes would improve the consistency of-eRA
examination and enforcement. Banks would continue to make eRA ratings public, and the
public would have an opportunity to comment on eRA performance.
The proposed changes would be phased in. and banks could elect to be evaluated under either
the old or new standards until July 1995.
"This reform package reflects -- not just the thinking of regulators -. but the best thinking of
the American people." said Mr. Ludwig. "It represents the result -- not just of technical
analysis .- but of participatory government. It stands -- not as a policy imposed from above
-. but as a consensus -. and a compromise -- forged among those who will live with its
results. "
The proposed rule will be published in the Federal Register. The public will have 60 days to
comment on the proposal from the date of publication.
##11
()
NEWS RELEASE
Comptroller of the Currency
NR 93-129
Administrator of National Banks
Washington, DC
20219
For:
Release After White House News Conference
Date:
DECEMBER 8, 1993
Contact:
(202) 874-4700
Statement by
Eugene A. Ludwig
Comptroller of the Currency
December 8, 1993
Thank you.
Fifteen years ago, Congress passed the Community Reinvestment Act to ensure that banks
and thrifts served the financial needs of their entire communities, and, in particular, to help
economically empower persons of low and moderate income. But the CRA has never
achieved the full promise Congress had intended.
During the Presidential campaign last year, Governor Clinton, responding to the complaints
of bankers and community leaders, vowed to reform the CRA to make the law work by
emphasizing performance over paperwork.
Following up on his campaign pledge, the President last July challenged the federal banking
regulators to breathe new life and new purpose into the law. He told us to rethink the entire
system of regulation through which we put the CRA into effect to make the law work.
The proposed reform package we are unveiling today follows the President's directive and
fulfills the promise of the law. It would channel billions of dollars in new credit into
America's distressed communities, while at the same time reducing unnecessary burdens on
the banks. It would make the law work.
This reform package is the product of five months of consultation and deliberation. Before
we made a single decision on proposing reform, we turned to the people to ask what the
people thought, what the people needed. We walked through South Central Los Angeles and
a predominantly minority neighborhood in New York City to see with our own eyes and to
listen with our own ears to what should be done. We talked with representatives of the
Navajo nation, to bankers large and small, to poor people in rural North Carolina.
DEC 08 '93 12:18 OCC/COMMUNICATIONS
2
What we saw and what we heard shaped the reform package we announce today. By
replacing paperwork requirements with performance tests, this package would stimulate bank
lending, investment and service in low and moderate income communjties.
This proposal is not about formulas. Community groups and bankers emphasized the need
for flexibility. So this proposal recognizes the diversity of banks and the markets they serve.
It reduces the examination burden, particularly on small banks, without reducing their
obligation to serve their communities. And it recognizes that regular public participation is
critical if we are to achieve the goals of the law.
This reform package reflects -- not just the thinking of regulators -- but the best thinking of
the American people. It represents the result -. not just of technical analysis -- but of
participatory government. It stands -- not as a policy imposed from above -- but as a
consensus -- and a compromise -- forged among those who will live with its results.
Tomorrow, the board of the Federal Deposit Insurance Corporation will consider issuing the
proposal for public comment, and the Federal Reserve Board will take up the issue on
Friday. We anticipate that both regulatory agencies will act positively.
We have confidence that the proposal goes a long way toward building the framework for
eRA reform. Nonetheless, as we go forward we will continue to listen to the voice of the
people -- citizenS, community groups and bankers -- and will continue to shape the reform
package in response to what we hear.
I will now review with you the attached summary of the program.
NNN
For Release After White House Press Conference
December 8, 1993
COMMUNITY REINVESTMENT ACT REFORM PROPOSAL
FACT SHEET
•
Proposed changes to the Community Reinvestment Act (eRA) provide clearer and
more objective evaluation standards, eliminate unnecessary documentation
requirements, and improve the consistency of eRA examinations and enforcement
efforts. The new rule emphasizes performance over documentation.
•
The 12 current eRA assessment factors would be replaced with three tests: a lending
test, a service test, and an investment test. Banks and thrifts would be evaluated
based on the products and services offered in their normal course of business. They
would not have to meet all three tests to get a satisfactory rating.
•
Banks and thrifts would no longer be assessed on their method of community
delineation. Service areas would be defined by the geographic area (or areas) around
branch and main offices where the institution makes the bulk of its loans.
•
New eRA rules would distinguish between large and small institutions. Independent
banks and thrifts with assets under $250 million, or members of a holding company
with total banking and thrift assets of under $250 million, would be eligible for
streamlined examinations. They would, however, be fully responsible for meeting the
requirements of eRA.
•
Large banks and thrifts would be required to report data to regulators on the
geographic distribution of their small business loans and consumer loans.
•
Wholesale and limited-purpose banks would be evaluated based on their investment in
or other support of organizations that promote credit availability to low- and
moderate-income individuals or geographic areas, and organizations and initiatives
that foster community development, small and minority-owned business development
and funding for affordable housing.
•
A bank or thrift would have the option of developing a eRA strategic plan, to be
approved by the regulators, under which it would be evaluated.
•
Banks and thrifts would continue to make their eRA ratings public, and the public
would have an opportunity to comment on eRA performance.
•
Under the proposed rule, large banks and thrifts would begin reporting loan data
January 31, 1995. The new evaluation standards would become mandatory Jul y 1,
1995.
###
For Release After White House News Conference
December 8, 1993
COMMUNITY REINVESTMENT ACT REFORM PROPOSAL
SUMMARY
Overview
In July 1993, the Office of the Comptroller of the Currency (OCC), Office of Thrift
Supervision (OTS), Federal Deposit Insurance Corporation (FDIC) and Federal Reserve
Board, acting at the request of President Clinton, began a comprehen~ive review and
overhaul of the interagency regulation for the Community Reinvestment Act (CRA). The
President's charge was explicit: reform the CRA regulation to emphasize performance over
documentation, and refocus the regulation on making credit and financial services available
to all communities, including underserved areas throughout urban and rural America.
The four federal financial supervisory agencies, working with community organizations,
representatives of local government, and the banking and thrift industries, were committed to
developing clearer and more objective standards for CRA compliance, eliminating
unnecessary documentation requirements, and improving consistency in CRA examinations
and enforcement. The proposed changes to the CRA regulations address and implement
these goals.
Currently, CRA assessments of financial institutions are based on 12 separate factors.
Regulatory agencies and examiners within the agencies have interpreted and judged these
factors differently, resulting in inconsistent CRA ratings. The President's reform initiative
called for distinct assessment standards based on measurable performance in three specific
areas: lending, service, and investment.
Under the proposed rule, not every institution would be subject assessment in each of these
three areas. In general, a bank or thrift would be evaluated based on its record of serving its
entire community, including low- and moderate-income neighborhoods, with the products and
services offered in its normal course of business. Retail banks would be evaluated primarily
on their lending performance. Wholesale and limited purpose banks that do not engage in
significant retail lending would be evaluated primarily on their investments.
Three Evaluation Tests
The first test, a lending test, would evaluate direct lending by the institution itself, and if tne
institution elects, indirect lending through loan pools, lending consortia, subsidiaries and
funded non-chartered affiliates, and community development or affordable housing lenders in
which the bank has made investments. The bank or thrift would be evaluated primarily on
whether it was making loans in low- and moderate-income geographies. The lending test
would compare the institution's market share of loans in low- and moderate-income
geographies to its market share of loans in its entire service area.
- more -
-2-
The lending test would also evaluate the percentage of a bank or thrift's outstanding loans to
low- and moderate-income geographies or individuals, or the percentage of low- and
moderate-income geographies in which the institution has made a significant number of
loans. Lenders would receive extra credit for making complex or innovative loans that serve
pressing community development needs loans without undermining safety and soundness.
Based on these measures, an institution would receive a preliminary lending rating which it
may rebut.
The second test, the service test, would evaluate the provision of branches accessible to lowand moderate-income areas and the provision of services that promote the availability of
credit. Special accomplishments or programs that provide greater access to credit, capital or
services would also receive consideration. Services such as low-cost check cashing, "lifeline
accounts" and credit counseling could improve a retail institution's rating under the service
test and would form the basis for evaluating a wholesale or limited purpose institution.
Third, the investment test would evaluate an institution's record of qualified investment in
organizations and initiatives that foster community development, small and minority-owned
business development, or affordable housing lending, including state and local government
agency housing or revenue bonds.
Service Area Designation
Under existing CRA rules, covered financial institutions delineate their local communities
geographically on a map, using methods that do not unreasonably exclude low- or moderateincome areas. Bank examiners review the reasonableness of the basis for these delineations.
Under the reform proposal, banks and thrifts would not be evaluated on the method they use
to delineate their service areas. The geographic area around each office or group of offices
in which the institution makes the bulk of its loans would be used to define its service area.
Institutions that provide services substantially across state lines or metropolitan areas would
have separate service area delineations for those markets.
Streamlined Examination Procedures
The proposed CRA rule provides streamlined eRA examination procedures for small
institutions. These institutions would still be responsible for helping to meet the credit needs
of their entire communities. The streamlined examinations would take into account an
institution'S loan-to-deposit ratio, whether it makes most of its loans locally, its loan mix -including the distribution of loans across income levels -- and its record of community
complaints and lending discrimination. Small institutions are defined as independent banks
and thrifts with total assets of under $250 million, or members of a holding company with
total banking and thrift assets of less than $250 million.
- more -
-3-
Strategic Plan Assessment
A bank or thrift would have the option of submitting to its regulator a eRA plan for approval
and then being evaluated under that plan. The plan would have to be publicly available and
have measurable goals. Regulators would consult with community groups to determine
whether the plan was responsive to community credit needs. If an institution failed to meet
or exceed the preponderance of goals set forth in the plan, its performance would be
evaluated under the lending and service tests.
Regulatory Burden and Data Collection Requirements
The proposed rule would make significant reductions in regulatory burden. Banks and thrifts
would no longer have to prepare eRA statements, review these statements annually and note
those reviews in the minutes of the board of directors, justify the basis for their community
delineations, ascertain community credit needs and explain their methods of doing so, and
maintain documentation supporting marketing efforts.
Large banks and thrifts would be required to report additional data on the geographic
distribution of their small business and some consumer loans, and summary data collected by
the regulators will be made available to the public.
Data collected for all institutions under the Home Mortgage Disclosure Act (HMDA) would
still be made available to the public by the Federal Reserve Board. eRA performance
evaluations for all covered institutions would be redesigned consistent with the new
evaluation standards but would continue to be made public by the institutions and their
regulators.
CRA Enforcement
The OCC, the OTS, the FDIC and the Federal Reserve would continue to consider CRA
performance and any complaints in evaluating corporate applications. The regulators would
encourage public comment on CRA performance. In addition, banks and thrifts that receive
a rating of Substantial Noncompliance would be subject to formal enforcement actions.
Transition Period
Although the proposal calls for revised data collection and reporting procedures to go into
effect after a short adjustment period, evaluation under the new eRA standards would not
become mandatory until July 1995. During the interim period, banks and thrifts could elect
to be evaluated under either the current CRA regulation or the new CRA provisions.
HHH
For Release After White House Press Conference
December 8, 1993
COMMUNITY REINVESTMENT ACT REFORM PROPOSAL
Major Issues
1.
What will be tbe underlying basis Cor
reConn proposal?
eRA perf'onnance evaluations under tbe
In assessing an institution's CRA performance, regulators recognize that the institution
is expected to help meet the credit needs of its enlire community. In examinations,
however, particular attention will be paid to the institution's record of helping to meet
the credit needs in low- and moderate-income census tracts or rural areas (collectively
referred to as low- and moderate-income geographies in the regulation) and of low- and
moderate-income individuals. That record will be evaluated primarily using three
measures -- a lending test, a service test, and an investment test. An institution's fair
lending record will also be considered.
-
2.
Do banks and tbrifts need to engage in aU three eRA activities - lending,
investment, and service - in order to earn a satisfactory or better eRA rating?
No. As a general rule, banks and thrifts will be evaluated on the basis of the product
lines offered to their customers in the normal course of business.
The lending test will apply to all retail banks and thrifts and will evaluate direct lending
by the institution itself and, if the institution elects, indirect lending through loan pools;
lending consortia; bank subsidiaries and funded non-charter affiliates; and other entities,
in whom the bank or thrift has made investments, that lend in low- and moderate-income
individuals or geographies.
The service test evaluates the accessibility of a retail bank's branches and the extent to
which the bank provides other facilities and services that enhance credit availability. The
service test does not require any bank to expand its branch network or to operate its
facilities at a loss. It considers non-traditional branches, including mini-branches in
grocery stores or branches operated in conjunction with other banks, other local
businesses, churches, or other non-profit organizations. Wholesale and limited purpose
institutions will be evaluated on the extent to which they provide other services that
enhance credit availability.
The investment test evaluates banks on the amount of their investments that benefit lowand moderate-income geographies or persons. The investment test will constitute the
principal test in evaluating the eRA performance of wholesale and limited-purpose
institutions (instead of the lending test). The investment test will apply to provide extra
S.
Will the loans have to be made directly by the bank or thrift to be considered in the
institution's perfonnance evaluation?
No. An institution may elect to count under the lending test loans made through a loan
pool, a lending consortium, by subsidiaries or funded non-charter affiliates, or through
community development and affordable housing lenders, women-owned or minorityowned financial institutions, low-income credit unions, and others that lend directly to
the low- and moderate-income community.
Regulators will attribute to the institution its percentage (based on the level of the bank
or thrift's investment or participation) of each loan in a loan pool, a loan consortium,
subsidiary, funded non-charter affiliate or community lending organization in which the
bank has invested or participated. Lending by the consortia or the community
development lender need not be restricted to the institution's service area for it to be
considered as helping to meet the institution's eRA responsibilities.
6.
What criteria will be used to evaluate an institution's performance under the lending
test?
•
Optstanding
Subject to rebuttal, the regulator will rate a bank or thrift's lending performance
outstanding if:
•
•
The institution's market share of reported loans in low- and moderateincome geographies in its service area significantly exceeds its market
share of reported loans in other geographies in its service area; and
•
Either it has made a significant amount of loans in the vast majority of the
low- and moderate-income geographies in its service area
•
Qr its loans to low- and moderate-income geographies in its service area
represent a substantial percentage of its loans in its service area.
High Satisfactory
Subject to rebuttal, the regulator will rate a bank or thrift's lending performance
high satisfactory fashion if:
•
The institution's market share of reportable loans in low- and moderateincome geographies in its service area is at least roughly comparable to
its market share of reported loans in other geographies in its service area;
and
3
7.
•
The institution's market share of reportable loans in low- and moderateincome geographies in its service area is significantly less than its market
share of reported loans in its entire service area; and
•
It made very few, if any, loans in the low-and moderate-income
geographies in its service area.
Will regulators take other information into account in assessing a bank or thrift's
performance under the lending test?
Yes. The regulator may increase a presumptive rating if the bank or thrift participates
in a program for giving second reviews to loan applications, particularly if done in
conjunction with community organizations who participate in the review or offer
applications from low- and moderate-income individuals that the bank will consider for
credit. Regulators may also increase a presumptive rating if the institution makes a
substantial amount of loans that require creative or innovative underwriting (while
maintaining a safe and sound quality) or loans for which there is a particular need.
Regulators will also consider favorably loans to third parties, such a community
development organizations and intermediaries that make or facilitate lending in low- and
moderate-income geographies.
In exceptional cases, the regulator may reduce a presumptive rating if it concludes that
the quantitative measures fail to reflect the institution's actual record of lending to lowand moderate-income individuals or geographies.
8.
What factors will be considered under the service test?
In order to keep the test relatively straightforward and to reflect the law's expectation
that banks and thrifts be encouraged to help meet the credit needs of their communities,
the service test for retail institutions will emphasize branch location in or readily
accessible to low- and moderate-income geographies in the institution's service area.
Provision of services such as accessible ATMs, credit counseling, low-cost check
cashing, "lifeline" checking accounts, and other programs will be considered favorably,
but generally will not be required. If a bank or thrift offers or provides support for these
or other services designed to facilitate access to the institution in low- and moderateincome communities, those programs will enhance the institution's service record.
Whclesale and limited purpose institutions will be evaluated on the extent to which they
provide other services that enhance credit availability.
9.
What criteria will be used to evaluate an institution's record under the service test?
For retail banks, the service test addresses the availability of branches throughout an
5
geographies or individuals, and similar programs.
A regulator may adjust a bank's record upward or downward to reflect more accurately
its branch service to low- or moderate-income geographies or individuals. In determining
the appropriateness and degree of any adjustment the regulator may consider the
institution's record of opening and closing branches. The regulator might also consider
whether branches in or readily-accessible to low- or moderate-income geographies serve
low- and moderate-income individuals. Regulators may also take into account significant
differences in the quantity, quality, or types of services offered to low- and moderateincome individuals or geographies and similar considerations.
A bank or thrift could rebut a presumption raised by the quantitative measures by
demonstrating that they present an inaccurate picture of its service of low- and moderateincome geographies and individuals because of peculiarities in the demographics of its
service area, limitations imposed by its financial condition, economic limitations on
branch operation, or similar considerations.
11.
Can wholesale banks and limited-purpose banks be evaluated under the service test?
Yes. Wholesale and limited-purpose banks would be evaluated based on the extent to
which tRey offer services to promote credit availability, or provide support to
organizations that offer such services, in low- and moderate-income geographies or to
low- and moderate-income individuals.
12.
What factors will be considered under the investment test?
Wholesale and limited-purpose institutions will normally be evaluated under the
investment test instead of the lending test. Retail institutions will be evaluated under the
investment test (in addition to the lending and service tests), but investment performance
cannot reduce their composite rating.
Institutions will be evaluated based on the amount of capital they have devoted to
qualified investments not already considered under the lending test.
Qualified
investments include investments: in support of local affordable housing and community,
economic, or small business development; in community development banks, community
development corporations, community development projects, small business investment
corporations (including minority small business investment corporations), and minorityand women-owned financial institutions and other community development financial
intermediaries; in consortia or other structures serving low- and moderate-income
individuals and areas; and in state and local government agency housing bonds or state
and local government revenue bonds specifically aimed at helping low- and moderateincome geographies and individuals.
The focus of the investment test is the ultimate impact of the bank or thrift's investment
7
For retail institutions, the base rating may be increased by up to two levels (on the five
rating scale) in the case of outstanding investment performance or by one level in the
case of high satisfactory investment performance. This base rating may be increased by
one level in the case of outstanding service and decreased by one level in the case of
substantial non-compliance in service.
The rating will then be converted to the statutorily-required four level rating system, with
high satisfactory and low satisfactory both scored as satisfactory. An institution that
would otherwise receive a needs to improve rating will be rated in substantial
noncompliance if the institution received no better than a needs to improve rating on both
of its last two examinations.
Finally, the rating will be adjusted, if necessary, to take into account illegal lending
discrimination by the institution to arrive at a final composite rating.
15.
How will a reason to believe tbat an institution bas engaged in illegal lending
discrimination affect its CRA rating?
There will be a rebuttable presumption that to receive a composite rating of satisfactory
or better a bank or thrift has not:
-
16.
•
Engaged in a pattern or practice of discrimination that it has not fully corrected;
and
•
Committed an isolated act of illegal discrimination of which it has knowledge that
it has not corrected fully or is not in the process of correcting fully.
Will extenuating circumstances (little or no loan demand, an innovative product tbat
did not or is taking time to catcb on, etc.) be taken into account in assessing CRA
ratings?
Yes, in at least two ways. First, the tests are set up as rebuttable presumptions.
Therefore a bank or thrift will have the opportunity to rebut the presumptive case by
citing extraordinary circumstances. Second, the tests generally take into account any
special circumstances related to the financial condition of the institution, its product lines,
and the environment within which it is operating.
17.
Will banks and thrifts still be required to assess the credit needs of their
communities?
To perform under the quantitative measures, banks and thrifts will have to offer products
for which there is a market. Therefore, they have an incentive to perform needs
assessments in their communities. Under the proposal, however, the regulators will not
9
•
Has no legitimate, bona-fide complaints from community members;
•
Has not engaged in a pattern or practice of illegal lending discrimination that it
has not fully corrected; or committed isolated acts of discrimination, of which it
has knowledge, that it has not corrected fully or is not in the process of
correcting fully; and
•
For a bank or thrift already subject to reporting home mortgage lending data
under HMDA, has a reasonable geographic distribution of HMDA loans;
A small bank or thrift that meets each of the standards for a satisfactory rating and
exceeds some or all of those standards may warrant consideration for an overall rating
of outstanding. In assessing whether a small bank's eRA record is outstanding, its
regulator will consider the extent to which the bank's loan to deposit ratio, its lending
to its service area, and its loan mix exceed the standards for a satisfactory rating. In
addition, at the option of the bank, the OCC will evaluate:
21.
•
Its record of making qualified investments, especially those in its local service
area; and
•
Iti record of providing branches, ATMs, and other services that enhance credit
availability or in other ways serve the convenience and needs of low- and
moderate-income persons in its service area.
Can a small bank or thrift receive a less than satisfactory rating using the
streamlined procedures?
Yes. A small bank or thrift that fails to meet or exceed all of the standards for a
satisfactory rating under the small bank examination is not presumed to be performing
in a less than satisfactory manner, however. Rather, for those institutions, the regulator
conducts a more extensive examination of the bank or thrift's loan to deposit record, its
record of lending to its local community, and its loan mix. The regulator will also
contact members of the community, particularly in response to complaints about the
bank, and review the findings of its most recent fair lending examination. In addition,
at the option of the bank or thrift, its regulator will assess:
22.
•
Its record of making qualified affordable housing and community development
investments, especially those in its local service area; and
•
Its record of providing branches, ATMs, and other services that enhance credit
availability or in other ways meet the convenience and needs of low- and
moderate-income persons in its service area.
How will enforcement of the CRA be strengthened?
11
•
•
•
•
Home purchase (1-4 family);
Home improvement (1-4 family);
Refinancings (1-4 family);
Multifamily (home purchase, home improvement, refmancings)
Where possible, data collected on home mortgages will be consistent with data collected
under the Home Mortgage Disclosure Act.
26.
Will aU consumer loans be included in the consumer loan category?
No. Credit card loans and auto and other vehicular loans will not be included in the
consumer loan category.
27.
When will the data be collected?
The information will be collected beginning July 1, 1994, for the remaining six months
of 1994. The data for the six months will be submitted to a lending institution's primary
regulator by January 31, 1995.
Beginning January 1, 1995, on an annual basis, a summary of a bank or thrift's data
collected~nder this regulation will be submitted to its primary regulator by January 31,
of the following year. The summary data will be submitted in a format that will be
prescribed in an appendix to the regulation.
28.
Will banks and thrifts be required to report data on indirect loans?
A bank or a thrift will not be required to report indirect loans unless the institution elects
to have the indirect loans attributed for purposes of the lending test. If a bank or thrift
elects to report its indirect loans, it will report all attributable indirect loans outside lowor moderate-income geographies as well as loans inside such geographies.
29.
Will
eRA
perfonnance evaluations continue to be made public?
Yes. The format will be revised to ensure that the evaluations include all data relevant
in reaching a conclusion about an institution's eRA performance.
30.
How will the regulators conduct examinations involving amliated banks or thrifts?
Multiple Branches operating under a Single Charter
•
The primary regulator will conduct complete lending and service tests in a sample
of the service areas in which a bank operates.
13
For Release After White House Press Conference
December 8, 1993
Benefits of Proposed
1.
2.
3.
4.
eRA Regulation
Provides clearer guidance to fmancial institutions.
•
It eliminates the 12 qualitative assessment factors.
•
It stresses quantitative measures of pelj'ormance -- lending, service, and
investment pelj'onnance -- not effort, public relations, or documentation.
•
It eliminates subjective evaluations of minutes, meetings, and marketing efforts.
•
It pennits assessment relative to an approved
•
It clarifies the effect of eRA pelj'onnance on corporate applications.
eRA
plan.
Encourages public participation.
•
It requires regulators to publish examination schedules in advance.
•
It solicits public comment prior to examinations, not just during the corporate
application process.
•
It solicits public comment on
eRA plans prior to
regulatory approval.
Reduces unnecessary compliance burdens and rewards improved performance.
•
It provides for streamlined, but rigorous, small institution examinations.
•
It shifts examination burdens from the institution to the examiner.
•
It relieves wholesale and limited-purpose institutions from requirements to define
a local service area.
Provides necessary flexibility for examinations of diverse institutions.
•
It distinguishes between large and small retail institutions and among retail,
wholesale, and limited-purpose institutions.
•
It bases an institution's rating on the product lines it offers.
•
It sets up five perfonnance levels under each test.
•
It pennits lenders to be evaluated on lending subsidiaries, funded affiliates, and
other entities in which the institution has invested.
•
It recognizes innovativelcomplex products or those meetinJ! J)ressinf! credit needs.
CRA ASSESSMENTS ARE NOW BASED ON TIIESE TWELVE FACTORS:
1.
Activities conducted by a bank or thrift to ascertain the credit needs of its community,
including the extent of efforts to communicate with members of its community regarding
the credit services it provides;
2.
The extent of the bank or thrift's marketing and special credit related programs to
make members of the community aware of the credit services offered;
3.
The extent of participation by the bank or thrift's board of directors in formulating
policies to implement CRA, and reviewing eRA performance;
4.
Existence of any practices intended to discourage credit applications from any segment
of the community, particularly low- and moderate-income neighborhoods;
5.
The geographic distribution of the bank or thrift's credit extensions, credit applications
and credit denials;
6.
Evidence of prohibited discriminatory or other illegal credit practices;
7.
The bank or thrift's record of opening and closing offices in low- and moderate-income
areas, and of providing equivalent services in all areas;
8.
Participation or investment in local community development and redevelopment
projects or programs;
9.
The bank or thrift's origination or purchase of loans, including residential mortgage
loans, housing rehabilitation loans, home improvement loans and small business or small
farm loans within its community;
10.
The bank or thrift's participation in governmentally insured, guaranteed or subsidized
loan programs for housing, small businesses or small farms;
11.
The bank or thrift's ability to meet community credit needs based on its financial
condition, size, legal impediments, local economic conditions, and other factors; and,
12.
Other factors that reasonably have bearing on the bank or thrift's efforts to meet the
credit needs of its entire community.
iHE WHITE: HOUSE
July 15, 1993
MEMORANDUM FOR:
THE HONORABLE £OGENE ).T,T,AN LUDWIG
COMPTROLLER OF THE cDRREHCY
THE HONORABLE ANDREW C. HOVE
ACTING CHAIRPERSON
FEDERAL
DEPOSIT INSURANCE CORPORATION
THE HONORABLE ALAN GREENSPAN
CHAIR, BOARD OF GOVERNORS
FEDERAL RESERVE SYSTEM
THE HONORABLE JONATHAN
FIECHTER
ACTING DIRECTOR
OFFICE OF THRIFT
SUPER~SIOH
Th. co_unity R.inv••tm.nt Act ("CRA") I anactacl in 1977,
requir •• banks and thrift. to h.lp .eet the cr.dit n••d. of
the co_uniti •• in which they do bu.in.... In r.c.nt years,
the statute has co.e to play an increa.inqly important role in
makinq credit opportuniti•• available to undars.rvad communities
both urban and rural, across Aa.rica.
D.spit. it• •ucc••••• , I bali.v. the CRA'. full pot.ntial
r ...in. unrealized. It. ilIpl_entation has foc:uaacl too
much on docuaentation and proc••• , and not .nouqh on actual
p.rtormance. Banka ca.plain about .xc... ive paperwork and
inconsistent t.pl...ntation of the lave Co..unity qroups
co.plain that their co_uni ti.. r_in unserved, and the CRA
evaluation. oft.n fail to reflect actual co. .unity r.investment
activiti...
w. can do better.
By givinq our barut. and thrifts clearer
guidance a. to how the requlatory aqanci.. will evaluate CRA
performanc., w. can eliminate much .eaningl••• docum.ntation
and improve consist.ncy in CRA enforce••nt. By focu.ing that
guidance on the provision of real inv.stm.nt and services, we
can increase support to communities that need it.
C)
Comptroller of the Currency
Administrator of National Banks
Washington, DC
20219
Office of the ComptroUer of the Currency
The Office of the Comptroller of the Currency (OCC) was established in 1863 as a bureau of
the Department of Treasury. The OCC is headed by the Comptroller who is appointed by
the President, with the advice and consent of the Senate, for a 5-year term.
The OCC is the regulator and supervisor of the national banking system. There are currently
approximately 3600 national banks, with about $2 trillion in assets, representing about 60
percent of the total assets of U.S. commercial banks.
The OCC:
•
examines national banks in order to promote safety and soundness by requiring
that national banks adhere to sound management principles and comply with
the law, including the Community Reinvestment Act;
•
takes actions against national banks that do not conform to laws and
regulations or which engage in unsound banking practices;
•
issues rules and regulations that implement federal law governing national
banks; and
•
approves or denies applications for new national bank charters, branches,
capital or other changes in corporate or banking structure.
The Comptroller serves on the boards of the Federal Deposit Insurance Corporation and the
Resolution Trust Corporation and is a director of the Neighborhood Reinvestment
Corporation.
NNNN
()
Comptroller of the Currency
Administrator of NatIonal Banks
Washington, DC
20219
BIOGRAPHICAL INFORMATION
Eugene A. Ludwig
Comptroller of the Currency
Eugene A. Ludwig took the oath of office on April 5, 1993 as the 27th Comptroller of
the Currency.
The Office of the Comptroller of the Currency (OCC)- supervises nearly 3600 federally
chartered commercial banks.
The banks supervised by the OCC account for
approximately 60 percent of the assets of the commercial banking system.
By statute, the Comptroller serves a concurrent term as a Director of the Federal Deposit
Insurance Corporation and the Neighborhood Reinvestment Corporation.
The
Comptroller also serves as a member of the Federal Financial Institutions Examination
Council.
Mr. Ludwig joined the OCC from the law firm of Covington and Burling in Washington,
where he was a partner beginning in 1981. He specialized in intellectual property law,
banking and international trade. He has written numerous articles on banking and finance
for scholarly journals and trade pUblications, and served as a guest lecturer at Yale and
Harvard Law Schools and Georgetown University's International Law Institute.
Mr. Ludwig grew up in York, Pennsylvania. where he attended York Suburban High
School. He earned a B.A. magna cum laude from Haverford College in Pennsylvania.
He received a Keasbey scholarship to attend Oxford University, where he studied politics.
philosophy and economics and earned a B.A. and M.A. He holds an LL.B. from Yale
University, where he served as editor of the Yale Law Journal and chairman of Yale
Legislative Services.
April 1993
( / )/V"V - - ..-...
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NEWr'·
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Department of the Treasury •
Bureau'Of Ih{'>
FOR IMMEDIATE RELEASE
December 9, 1993
JU
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b l1c>.Oebt • Washington, DC 20239
. \:·JCONTACT: Office of Financing
202-219-3350
TREA~~~0,~/A3~eON
RESULTS OF
OF 52-WEEK BILLS
Tenders for $16 ;':09-8C inLLIJPtP..q ,c;>f 52 -week bills to be issued
December 16, 1993 and to mature '·nec~mber 15, 1994 were
accepted today (CUSIP: 912794M27).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
3.45%
3.47%
3.47%
Investment
Rate
3.59%
3.61%
3.61%
Price
96.512
96.491
96.491
Tenders at the high discount rate were allotted 47%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
Received
$50,892,555
$16,098,140
$46,406,105
346,750
$46,752,855
$11,611,690
346,750
$11,958,440
3,700,000
3,700,000
439,700
$50,892,555
439,700
$16,098,140
AcceQt~d
An additional $132,300 thousand of bills will be
issued to foreign official institutions for new cash.
LB-546
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FOR IMMEDIATE RELEASE
Text as Prepared for Delivery
December 9, 1993
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
Good afternoon. We've only had a short time at the Treasury Department to
examine this study. We want to go through it carefully. However, I want to say that our
first look at it was encouraging.
It is encouraging because making projections on a new program on this scale is a
challenge. We have plenty of experience in government making estimates of programs,
but with this one we're looking years into the future with a number of variables.
A number of agencies in the government have worked on the program. The
experts at the Health Care Task Force were very cautious in preparing their estimates.
The Health Care Finance Administration worked very carefully on the numbers. Our
economists and estimators at the Treasury Department have looked at them with a
mangnifying glass. And the five largest accounting firmS and some very talented
actuaries have checked on our methodology.
The fact that this study reaches the same general conclusions as we do reaffirms
my confidence in the estimating job we've done.
We're finding that we agree on a number of points about the finances of health
care reform. We agree that our plan is paid for. And we agree that there will be deficit
reduction. We don't come up with the same deficit number, but we both believe it will
bring down the deficit. And, I would point out that the estimates in this study of the
subsidies required under the plan are lower than the ones the administration reached,
which shows how cautious we were in developing our figures.
Americans deserve comprehensive health care reform that covers everyone. And
they expect the truth about what it will cost. We have an affordable plan that will do
just that.
-30-
LB-547
UBLIC DEBT NEWS
,
'.
RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
Tenders for $13, 074 milj~io~ 9f 13,-wr~k, bills to be issued
December 16, 1993 and to mature March 17, 1~94 were
accepted today (CUSIP: 912794J54).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
3.05%
3.06%
3.06%
Investment
Rate
3.12%
3.12%
3.12%
Price
99.229
99.227
99.227
Tenders at the high discount rate were allotted 22%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
Received
$55,775,696
Accepted
$13,073,996
$50,315,524
1,118,192
$51,433,716
$7,613,824
1,118,192
$8,732,016
2,869,280
2,869,280
1,472,700
$55,775,696
1,472,700
$13,073,996
UBLIe DEBT NEWS
RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
Tenders for $13, 08CJ .mill~ion of l2;G ";week bills to be issued
December 16, 1993 and to mature June 16, 1994 were
accepted today (CUSIP: 912794L28).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
3.24%
3.26%
3.26%
Investment
Rate
3.34%
3.36%
3.36%
Price
98.362
98.352
98.352
Tenders at the high discount rate were allotted 76%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
LB-549
Received
$48,878,949
Accegted
$13,080,408
$44,140,730
861,519
$45,002,249
$8,342,189
861,519
$9,203,708
3,000,000
3,000,000
876,700
$48,878,949·
876,700
$13,080,408
EMBARGOED UNTIL 11:30 A.M"'.
December 14, 1993
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STATEMENT OF
MAURICE B. FOLEY
DEPUTY TAX LEGISLATIVE COUNSEL (TAX LEGISLATION)
DEPARTMENT OF THE TREASURY
BEFORE THE
SUBCOMMITTEE ON SELECT REVENUE MEASURES
COMMITTEE ON WAYS AND MEANS
U.S. HOUSE OF REPRESENTATIVES
Mr. Chairman and Members of the Subcommittee:
I am pleased to have this opportunity to discuss the
provisions in the Health Security Act regarding the tax treatment
of nonprofit health care organizations. Before describing these
provisions and the rationale behind them, I would like to
summarize the tax treatment of nonprofit health care
organizations under current law.
I.
CURRENT LAW
Tax-exempt hospital·s.
In a 1956 revenue ruling, the
Internal Revenue Service (IRS) held that· a hospital did not
qualify for tax exemption as a charitable organization described
in section 501(c) (3) of the Internal Revenue Code (the Code)
unless the hospital, to the extent of its financial ability,
provided care to those unable to pay the cost of the care. Rev.
Rul. 56-185, 1956-1 C.B. 202. This ruling was based on the view
that section 501(C) (3) of the Code used the term "charitable" in
the popular sense of providing relief to the poor. Regulations
issued in 1959, however, provide that section 501(c) (3) of the
Code uses the term "charitable" in its broader common law sense.
Under the common law concept, charity is not limited to the
relief of the poor.
In particular, the promotion,of health is a
separate charitable purpose under common law.
Based on the 1959 regulations and on the expanding role of
governmental and private health insurance, the IRS issued Revenue
Ruling 69-545, 1969-2 C.B. 117, which is the source of the
"community benefit" test that governs the qualification of
hospitals for tax exemption today. Revenue Ruling 69-545
modified the earlier 1956 ruling to remove the requirement that a
tax-exempt hospital provide charity care to the extent of its
financial ability. Revenue Ruling 69-545 addressed the
qualification for exemption of a hypothetical hospital that
operated an emergency room open to all persons and provided
inpatient care to all those persons in the community able to pay
the cost of the care, either directly or through third party
reimbursement. The hospital was controlled by a board of
trustees composed of independent civic leaders. The hospital
2
maintained an open medical staff, with privileges available to
all qualified physicians. Based on these facts, the IRS held
that the hypothetical hospital qualified for tax exemption under
section 501(c) (3) of the Code because it "promot[ed] the health
of a class of persons broad enough to benefit the community" and
was operated to serve a public rather than private interest.
Health maintenance organizations. A nonprofit health
maintenance organization (HMO) that provides health services
predominantly at its own facilities through the use of its own
staff may qualify as a tax-exempt charitable organization under
the same standards that govern nonprofit hospitals. Sound Health
Association v. Commissioner, 71 T.C. 158 (1978). By contrast, an
HMO that does not provide health care services itself may be
denied exemption as a charitable organization under section
501Cc) (3) of the Code. Geisinger Health Plan v. commissioner,
985 F.2d 1210 (3d Cir. 1993). A non-provider HMO may qualify for
exemption, however, as a social welfare organization described in
section 501(c) (4) of the Code~ section 501(c) (4) of the Code
exempts from tax civic leagues or organizations not operated for
profit but operated exclusively for the promotion of social
welfare.
section 501(m) of the Code disqualifies an organization from
exemption under section 501(c) (3) or 501(c) (4) of the Code if it
provides "commercial-type insurance" as a SUbstantial part of its
activities. The definition of commercial-type insurance does not
include incidental health insurance of a type customarily
provided by an HMO.
section 501(m) of the Code was enacted in 1986 in part to
disqualify Blue Cross/Blue Shield organizations from tax
exemption. Thus, Blue Cross/Blue Shield organizations are
generally treated as taxable property/casualty insurance
companies. with the enactment of section 501(m) of the Code,
however, Congress enacted two special rules that provide
favorable treatment to Blue Cross/Blue Shield organizations.
section 833 of the Code provides that these organizations are (1)
entitled to a special tax deduction, equal to the amount by which
25 percent of their health claims exceeds their adjusted surplus,
and (2) exempt from a requirement that property/casualty insurers
include in taxable income 20 percent of the change in their
unearned premium reserves.
Current law provides special rules for calculating the
taxable income of insurance companies. These rules allow a
taxable insurance company to deduct estimates of claims that are
incurred but not reported. The insurance rules override the
general rule that expenses are not deductible until the
occurrence of all events necessary to fix and determine the
taxpayer's liability. It is unclear whether HMOs that are
subject to tax may use the special rules applicable to insurance
3
companies in computing their tax liabilities.
II.
ADMINISTRATION PROPOSALS
1.
Nonprofit Health Care Providers
Under the Health Security Act, hospitals and other nonprofit
health care providers will continue to be eligible for tax
exemption, as they have since the very beginning of our income
tax system. Although the Act does not deny tax exemption to
nonprofit health care providers, it does add a new requirement
that a provider must meet, in addition to the community benefit
test of current law, to qualify for tax exemption under section
SOl{c) (3) of the Code. To meet this new requirement, the
provider must assess the health needs of its community at least
annually and develop a plan to meet those needs. The provider
will have to conduct this needs assessment and plan development
process with the participation of community representatives. The
needs assessment and plan development requirement does not apply
only to hospitals and HMOs. It is intended to apply to any
organization that seeks to qualify as a tax-exempt charitable
organization by reason of its provision of health care treatment
to patients, including, for example, clinics, nursing homes and
home health agencies.
Nonprofit hospitals and other health care providers should
earn tax exemption by providing services that meet the needs of
their communities. The community benefit test of current law
provides some assurance that tax exemption is granted only to
deserving nonprofit providers. The needs assessment and plan
development requirement included in the Act will provide further
assurance that tax-exempt providers are responsive to needs of
their communities and therefore are worthy of tax exemption.
The needs assessment and plan development process
contemplated by the Act may be best understood by reference to a
hypothetical example. This example illustrates one process that
would meet the new requirement. A health care provider need not
follow the particular procedures described in the example,
however, to meet the requirement. Other procedures that allow a
provider's community a meaningful opportunity to participate in
the development of the provider's programs would also meet the
requirement.
Hospital A is a private, nonprofit hospital located in a
large, urban area. The Board of Trustees of Hospital A
adopted a mission statement that declares the hospital's
commitment to implement and conduct a community benefit
program. Hospital A's Chief Executive Officer (CEO) is
responsible for the overall management of the community
benefit program. The CEO directs the hospital's Planning
and community Relations Departments to study the health
4
needs of the locality served by the Hospital.
The Planning Department obtains statistics on morbidity and
mortality. The community Relations Department establishes a
community Advisory Board, which includes representatives of
several community organizations. Among the organizations
represented are the county health department, several local
charitable organizations, the Chamber of Commerce, a senior
citizens' organization, the local public schools, a number
of religious organizations, and a few large employers who
operate facilities within Hospital A's service area.
Personnel from the Community Relations and Planning
Departments meet with the community Advisory Board to
discuss the area's health needs.
The Planning Department then prepares a draft report that
describes the most significant health needs of the
community. The report, for example, refers to the large
population of homeless persons in the community who have
inadequate access to health care services. The report also
discusses increasing rates of pregnancy among drug-addicted
teenagers. The Community Advisory Board meets to discuss
the draft report on community health needs. The Planning
Department takes into account the comments of the Community
Advisory Board in preparing a final report.
The Planning Department, in consultation with the Community
Advisory Board, considers various means of addressing the
community health needs identified in the report. The
Planning Department works with the hospital's Finance and
Budget Departments to estimate the costs of these various
programs. Then, representatives from these three
departments meet with the community Advisory Board to select
new programs to be implemented to address the community's
health needs. These programs are selected on the basis of
the urgency of the need, the cost of the program, the
financial resources of the hospital, and the potential
contributions to the program by other community
organizations. Those programs selected are identified in a
draft community benefit plan.
The draft community benefit plan includes a counselling
program for drug-addicted teenage mothers, to be run in
cooperation with public school counsellors, social workers,
and a local job placement agency. The plan also includes an
outreach program to address the needs of the homeless.
Hospital A will participate in this program with the housing
authority of the local government and several local
charitable organizations. The program will provide
opportunities for shelter, as well as transportation to food
service facilities and a health clinic to be operated by
Hospital A. The clinic will provide preventive care
5
treatment, including nutritional counselling. The draft
plan includes objectives for each program to measure its
progress over time. The plan is then finalized with the
approval of the CEO and the Board of Trustees.
The Community Relations Department reports to the community
Advisory Board periodically regarding Hospital A's
implementation of its community benefit plan.
The needs assessment and plan development requirement is
intended to be flexible. Flexibility is an important criterion
in considering the standards for tax exemption of nonprofit
health care providers because of the wide variety of these
organizations, the diverse needs of the communities in which they
operate, and the changes in the marketplace expected to result
from the adoption of the President's health care reform plan. In
particular, the tax laws should not impede the ability of health
care providers to engage in community outreach, providing the
type of preventive and community-based services that will help
control health care costs while meeting community needs. The
needs assessment and plan development requirement was designed to
accommodate the wide variety of organizations and health care
needs in today's market and the changes expected in the future.
By contrast, more detailed, specific standards might fail to take
into account all of the facts and circumstances that might bear
on an organization's qualification for tax exemption.
Many programs being conducted by health care providers today
illustrate the variety of health needs of different communities,
and the unique means by which providers are meeting those needs.
For example, a group of health care providers in Chicago has
established a program to meet the needs of that city's popUlation
of Russian Jewish immigrants. Special clinics have been
established to meet the health needs of these persons. The
program also includes outreach activities to address language and
cultural differences. Other communities may have different
groups with specific needs. For example, a New Jersey hospital
located in an area with a large elderly population has
established a center for geriatric health. The center offers a
wide range of services, including adult day care for frail and
impaired seniors. The center also arranges laundry and other
services to enable seniors to live independently at home.
These are just a' few examples of the many ways in which
health care providers may respond to the unique needs of their
communities. The needs assessment and plan development
requirement included in the Act, together with the community
benefit test of current law, will provide assurance that taxexempt providers meet the needs of their communities. These
standards will also allow the variety of community needs and
appropriate responses to those needs to be taken into account in
determining a provider's qualification for tax exemption.
6
The hallmark in determining whether the needs assessment and
plan development requirement is met will be whether the community
has been provided a meaningful opportunity to participate in the
development of the provider's programs. The identity of the
relevant community and appropriate persons to represent the
community will depend on the facts of each case. For example,
the community served by a provider of specialized care would not
be defined on the basis of location, but would include all
persons in need of that type of care.
Because of the wide variety of community needs and the
measures appropriate to meet those needs, the community
representatives will be in the best position to judge the
adequacy of a plan developed to meet community needs. Thus, the
IRS will not be required to judge the adequacy of a plan. To
meet the needs assessment and plan development requirement, the
provider will have to take into account any concerns expressed by
the community representatives regarding the adequacy of the plan.
The provider will have to include in the plan measures to meet
these concerns, or have a reasoned explanation for a failure to
include these measures. Meaningful involvement by the community
in developing the plan will help ensure that the plan responds to
community needs.
A failure by a provider to implement a plan developed to
meet community needs may call into question whether the community
has been meaningfully involved in determining the provider's
programs, and, therefore, whether the needs assessment and plan
development requirement has been met. Similarly, a failure to
report to the community on the implementation of the plan, or
otherwise provide community representatives the ability to
monitor implementation, may call into question whether the
provider has afforded the community the meaningful involvement
contemplated by the new requirement. However, a provider that
does not fully implement every element of a plan will not
necessarily jeopardize its tax exemption.
Current law does not require the provision of a particular
amount of charity care as a condition of tax exemption. Because
the President's health care reform plan will provide health
coverage to all Americans, the Act also does not include
provisions relating specifically to charity care. As noted
above, the needs assessment and plan development requirement
included in the Act, in combination with the community benefit
test of current law, will provide a more flexible means of
ensuring that tax-exempt health care providers continue to meet
the health needs of their communities.
The achievement of universal coverage, and resulting
elimination of the need for charity care, does not mean that the
activities of nonprofit health care providers will be
indistinguishable from those of for-profit providers. For-profit
7
providers seek to max~m~ze their profits for the benefit of their
owners. Thus, for-profit providers may have little incentive to
engage in activities other than treating fee-paying patients. By
contrast, nonprofit providers do not face the same "bottom line"
pressure. Therefore, nonprofit providers generally provide
services to the community in addition to the treatment of feepaying patients. Treating patients who are unable to pay the
cost of the care is only one type of additional service that
nonprofit providers offer today. Others include medical
research, education programs, health screening, immunization,
preventive care, and outreach programs. As noted above, these
preventive, community-based services are important to meet
community needs and achieve control over health care costs.
2.
Health Maintenance orqanizations
Health care organizations may be arrayed on a continuum,
with pure providers, such as hospitals, at one end and
traditional indemnity insurers at the other. HMOs, preferred
provider organizations and other hybrid organizations lie between
these two extremes. Recent changes in the health care
environment, such as the growth of HMOs, have blurred the
distinctions between providers and insurers. The continued
eligibility of hospitals for tax exemption and the continued
imposition of tax on indemnity insurers require a line to be
drawn somewhere along the continuum of health care organizations
to separate those that can qualify for exemption from those that
cannot. As explained below, the Health Security Act draws a
rational line on the basis of meaningful distinctions between the
affected organizations. Nonetheless, because of the blurring of
the concepts of provider and insurer, wherever the line might be
drawn, organizations that would be subject to tax could point to
similarities between themselves and those organizations that
would be eligible for exemption.
The Act provides rules that distinguish between taxable
insurance companies and HMOs that may qualify for tax exemption.
The rules accomplish this result by classifying certain forms of
insurance provided by an HMO as either commercial-type insurance
or not. As noted above, section SOl(m) of the Code denies taxexempt status to an organization that provides commercial-type
insurance as a substantial part of its activities. The
classifications made by the Act are consistent with the IRS's
current interpretation of section SOl(m) of the Code.
The Act specifies that insurance provided by an HMO related
to four types of health care treatment is not commercial-type
insurance: (1) treatment provided by an HMO at its own facilities
by its own staff, as is characteristic of "staff" or "group"
model HMOs; (2) primary care provided by a health care
professional who is paid by the HMO on a fixed or "capitated"
basis, so that the amount paid to the provider does not vary with
8
the amount of care provided; (3) services other than primary
care, such as hospital or specialty services, provided within the
HMO's provider network; and (4) emergency care provided to a
member of the HMO outside the member's area of residence.
An HMO will continue to qualify for tax exemption under the
Act only if its activities may be meaningfully distinguished from
the provision of traditional indemnity insurance. In this
regard, the provisions of the Act look to two key factors: (1)
whether the HMO directly provides health care treatment to its
members, and (2) the manner in which the HMO pays the health care
professionals who provide treatment.
An HMO that directly provides health care treatment to its
members more closely resembles a hospital or clinic than a
traditional indemnity insurer. Therefore, under the Act, such an
HMO may qualify for tax exemption under section SOl(c) (3) of the
Code--the provision that applies to hospitals and clinics.
An HMO that pays on a fixed or capitated basis those health
care professionals who provide care to its members essentially
"shifts" to the providers much of the risk regarding utilization
of services. The HMO will pay a provider the same amount for
each member enrolled with the provider, regardless of the amount
of care required by the member. Although the HMO may be
providing "insurance" in a technical sense, the shifting of risk
to the provider makes the arrangement distinguishable from
traditional indemnity insurance. Therefore, under the Act, an
HMO that pays primary care providers on a fixed or capitated
basis may qualify for tax exemption.
consistent with current case law, the Act would allow a nonprovider HMO to qualify for tax-exemption under section SOl(c) (4)
but not section SOl(c) (3) of the Code. A non-provider HMO is not
sufficiently similar to a hospital or clinic to warrant exemption
under section 501(c) (3) of the Code. Further, the principal
federal tax benefits to an HMO of qualifying for exemption under
section SOl(c) (3) instead of section SOl(c) (4) of the Code relate
to the availability of subsidized sources of capital. An
organization described in section SOl(c) (3) may receive taxdeductible contributions and tax exempt bond financing, while an
organization described in section 501(c) (4) cannot. A nonprovider HMO, however, has significantly lower capital needs than
an HMO that must purchase the facilities and equipment to provide
health treatment. Therefore, there is less justification for
allowing non-provider HMOs to receive financing from subsidized
sources such as deductible contributions and tax-exempt bonds.
The Act classifies "point of service benefits" as
commercial-type insurance. Point of service benefits allow a
member of an HMO to obtain treatment outside the HMO's provider
network. The HMO pays the cost of the care in excess of
9
deductible and co-payment amounts for which the member is liable.
Because these benefits are essentially traditional indemnity
insurance, the IRS, in applying section SOlem) of Code, treats
these benefits as commercial-type insurance. The Act would
codify this position.
To maximize the choices available to consumers, the
President's health care reform plan will require HMOs to provide
point of service benefits to their members so that members can
seek care outside the HMO's provider network. As I just noted,
however, these benefits are commercial-type insurance under the
IRS's interpretation of current law and the provisions of the Act
that would codify that interpretation. Therefore, an HMO would
not be entitled to tax exemption if the provision of point of
service benefits were a sUbstantial part of its activities.
Some HMOs have expressed concern that their tax exemption
could be jeopardized by a factor outside their control: the
extent to which their members elect to receive point of service
benefits. We appreciate these concerns and agree that an HMO
should not be unreasonably at risk of losing its tax exemption
because it provides point of service benefits as required by the
President's plan. Therefore, we are working to develop
appropriate measures to address this potential problem. We would
welcome the views of the Subcommittee and staff in resolving this
issue.
In addition, the Act provides rules under which a nonprofit
HMO that does not qualify for tax exemption will be entitled to
compute its taxable income using the provisions applicable to
insurance companies. ThUS, for example, taxable HMOs will be
allowed to deduct estimates of claims that are incurred but not
reported.
3.
Blue Cross/Blue Shield Orqanizations
The Health Security Act will eliminate the special deduction
for Blue Cross/Blue Shield organizations and require these
organizations to include in income 20 percent of the change in
their unearned premium reserves, in the same manner as other
taxable insurance companies. The Act also includes transition
rules that phase in the effects of these changes.
The special deduction for Blue Cross/Blue Shield
organizations provided a subsidy to these organizations in
recognition of the benefits resulting from their practice of
charging community-rated premiums and not excluding from coverage
those with pre-existing medical conditions. The Act, however,
will prevent all insurance companies from denying coverage on the
basis of health, employment or financial status. Further, the
Act will effectively require all plans receiving premiums though
health alliances to charge community-rated premiums. Therefore,
10
providing a subsidy to Blue Cross/Blue Shield organizations will
no longer be necessary to ensure that members of the public are
able to obtain insurance with community rated premiums.
The exemption of Blue Cross/Blue Shield organizations from
the requirement to include in income 20 percent of the change in
their unearned premium reserves was designed to ease the
transition of these organizations from tax-exempt to taxable
status. These organizations, however, have now been subject to
tax for several years. Therefore, the need for transition relief
has passed.
III. INTERMEDIATE SANCTIONS AND HEALTH CARE ORGANIZATIONS
Recent media reports and hearings held by the Ways and Means
Subcommittee on Oversight highlighted cases in which public
charities had provided excessive compensation or other
inappropriate benefits to officers or other "insiders." These
cases raise questions regarding the organizations' compliance
with the inurement prohibition included in section SOl(c) (3) of
the Code.
An organization qualifies for tax exemption under section
SOl(c)(3) of the Code only if no part of its net earnings inures
to the benefit of any private shareholder or individual. Under
current law, revocation of an organization's tax exemption is the
sole sanction available for violations of the inurement
prohibition or other standards for exemption. As Margaret Milner
Richardson, the Commissioner of Internal Revenue, testified
earlier this year before the Oversight Subcommittee, the lack of
a sanction short of revocation causes the IRS significant
enforcement difficulties. Revocation of exemption is a severe
sanction that may be greatly disproportionate to the violation in
issue. Current law, however, may force the IRS to choose between
revoking an organization's exemption or taking no enforcement
action.
The difficulties of the IRS in enforcing the standards for
exemption have led to consideration of "intermediate" sanctions
short of revocation that would apply to violations of these
standards. A bill recently introduced by Rep. Stark, the
chairman of the Ways and Means Subcommittee on Health, provides
examples of intermediate sanctions. That bill, H.R. 3697, would
impose on acts of self-dealing and inurement two-tiered excise
taxes modelled on the taxes that apply to private foundations
under current law.
The intermediate sanctions issue has implications for health
care reform. Some of the abusive cases cited in the media and in
the Oversight Subcommittee's hearings involve hospitals or other
health care providers. Further, the significant restructuring of
the health care market that is expected to result from health
11
reform might in certain cases present opportunities for insiders
to divert to their own benefit the resources of tax-exempt health
care providers.
In recognition of the difficulties the IRS has had in
enforcing the.inurement prohibition and other standards for tax
exemption, we are working with the Ways and Means committee and
its staff to consider the possibility of new, intermediate
sanctions for clear misuses of resources. Intermediate sanctions
may be useful, particularly if they are narrowly-targeted at
clearly abusive transactions of the type that have given rise to
concern, such·as unreasonable compensation and bargain transfers
provided to insiders. Narrowly-targeted intermediate sanctions
might be more effective deterrents than the potential loss of
exemption.
Mr. Chairman, this concludes my prepared remarks. I would
be happy at this time to answer any questions that you or the
other Members may have.
CONTACT:
FOR RELEASE AT 2:30 P.M.
December 14, 1993
r;
"
,
Office of Financing
202/219-3350
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $26,000 million, to be issued December 23,
1993. This offering will provide about $2,550 million of new
cash for the Treasury, as the maturing bills are outstanding in
the amount of $23,461 million.
Federal Reserve Banks hold $5,738 million of the maturing
bills for their own accounts, which may be refunded within the
offering amount at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $2,259 million as agents for
foreign and international monetary authorities, which may be
refunded within the offering amount at the weighted average
discount rate of accepted competitive tenders.
Additional
amounts'may be issued for such accounts if the aggregate amount
of new bids exceeds the aggregate amount of maturing bills.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C. This offering of Treasury securities
is governed by the terms and' conditions set forth in the Uniform
Offering Circular (31 CFR Part 356, published as a final rule on
January 5, 1993, and effective March 1, 1993) for the sale and
issue by the Treasu::;-y to t,he public of marketable Treasury bills,
notes, and bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
LB-551
HIGHLIGHTS
OF
TREASURY OFFERINGS
OF WEEKLY
TO BE ISSUED DECEMBER 23,
BILLS
1993
December 14, 1993
Offering Amount .
$13,000 million
$13,000 million
Description of Offering:
Term and type of security .
CUSIP number
Auction date
Issue date
Maturity date .
Original issue date .
Currently outstanding
91-day bill
912794 J6 2
December 20, 1993
December 23, 1993
March 24, 1994
September 23, 1993
$11,342 million
182-day bill
912794 L3 6
December 20, 1993
December 23, 1993
June 23, 1994
December 23, 1993
Minimum bid amount
Multiples .
$10,000
$ 1,000
$10,000
$ 1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids .
competitive bids
Accepted in full up to $1,000,000 at the average
discount rate of accepted competitive bids
(1) Must be expressed as a discount rate with
two decimals, e.g., 7.10%.
(2) Net long position for each bidder must be
reported when the sum of the total bid
amount, at all discount rates, and the net
long position is $2 billion or greater.
(3) Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid
at a Single yield
35% of public offering
Maximum Award .
35% of public offering
Receipt of Tenders:
Noncompetitive tenders
competitive tenders .
Payment Terms .
Prior to 12:00 noon Eastern Standard time on
auction day
Prior to 1:00 p.m. Eastern Standard time on
auction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
FOR RELEASE AT 2:30 P.M.
December 15, 1993
CONTACT:
Office of Financing
202/219-3350
, -- '- ljJ
TREASURY TO AUCTION 2-YEAR AND 5-YEAR NOTES
TOTALING $28,000 MILLION
The Treasury will auction $17,000 million of 2-year notes
and $11,000 million of 5-year notes to refund $22,603 million of
publicly-held securities maturing December 31, 1993, and to raise
about $5,400 million new cash.
In addition to the public holdings, Federal Reserve Banks
hold $2,910 million of the maturing securities for their own
accounts, which may be refunded by issuing additional amounts
of the new securities.
The maturing securities held by the public include $1,150
million held by Federal Reserve Banks as agents for foreign
and international monetary authorities. Amounts bid for these
accounts by Federal Reserve Banks will be added to the offering.
Both the 2-year and 5-year note auctions will be conducted
in the single-price auction format. All competitive and noncompetitive awards will be at the highest yield of accepted
competitive tenders.
Tenders will be received at Federal Reserve Banks and
Branches and at the Bureau of the Public Debt, Washington, D. C.
This offering of Treasury securities is governed by the terms and
conditions set forth in the Uniform Offering Circular (31 CFR
Part 356, published as a final rule on January 5, 1993, and
effective March 1, 1993) for the sale and issue by the Treasury
to the public of marketable Treasury bills, notes, and bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
LB-552
HIGHLIGHTS OF TREASURY OFFERINGS TO THE PUBLIC OF
2-YEAR AND 5-YEAR NOTES TO BE ISSUED DECEMBER 31, 1993
December 15, 1993
Offering Amount . . . . .
Description of Offering:
Term and type of security
Series . . .
. .
CUSIP number
Auction date . . . . . .
Issue date . . . . . . .
Dated date
. . . . .
Maturity date .
Interest rate .
Yield .
Interest Payment dates.
Minimum bid amount
Multiples .
Accrued interest
payable by investor
Premium or discount .
.
.
.
.
.
.
. .
. .
. .
. .
$17,000 million
$11,000 million
2-year notes
Series AE-1995
912827 N3 2
December 21, 1993
December 31, 1993
December 31, 1993
December 31, 1995
Determined based on the
highest accepted bid
Determined at auction
June 30 and December 31
$5,000
$1,000
5-year notes
Series V-1998
912827 N4 0
December 22, 1993
December 31, 1993
December 31, 1993
December 31, 1998
Determined based on the
highest accepted bid
Determined at auction
June 30 and December 31
$1,000
$1,000
None
Determined at auction
None
Determined at auction
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids . . . Accepted in full up to $5,000,000 at the highest accepted yield
competitive bids . . . . (1) Must be expressed as a yield with two decimals, e.g., 7.10%
(2) Net long position for each bidder must be reported when the
sum of the total bid amount, at all yields, and the net long
position is $2 billion or greater.
(3) Net long position must be determined as of one half-hour prior
to the closing time for receipt of competitive tenders.
Maximum Recognized Bid
at a Single Yield
· 35% of public offering
Maximum Award . . . . . . · 35% of public offering
Receipt of Tenders:
Noncompetitive tenders · Prior to 12:00 noon Eastern Standard time on auction day
competitive tenders . . · Prior to 1:00 p.m. Eastern Standard time on auction day
Payment Terms . . . . . . · Full payment with tender or by charge to a funds account
at a Federal Reserve Bank on issue date
0
(0
federal financinc;J;J?:,qpJ-1.
WASHINGTON, DC. 20220
TE
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(J)
N
S
December 16, 1993
For Immediate Release
FEDERAL FINANCING BANK
Charles D. Haworth, Secretary, Federal Financing Bank (FFB) ,
announced the following activity for the month of November 1993.
FFB holdings of obligations issued, sold or guaranteed by
other Federal agencies totaled $126.5 billion on November 30,
1993, posting a decrease of $855.8 million from the level on
October 31, 1993. This net change was the result of a decrease
in holdings of agency debt of $797.1 million, in holdings of
agency assets of $0.2 million, and in holdings of agencyguaranteed loans of $58.6 million. FFB made 13 disbursements
during the month of November. FFB also received 21 prepayments
in November.
Attached to this release are tables presenting FFB
November loan activity and FFB holdings as of November 30, 1993.
LB-553
N
N
(0
N
0
N
(/J
(/J
~
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0
l!l
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N
N
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LL
Page 2 of
FEDERAL FINANCING BANK
NOVEMBER 1993 ACTIVITY
BORROWER
DATE
AMOUNT
OF ADVANCE
FINAL
MATURITY
$5,000.00
$252,246.00
$8,543.29
$280,020.21
$156,932,675.82
$12,926,671.00
$3,748,303.00
$263,333.02
$8,894,305.83
$55,233.93
$5,810,309.00
$938,504.00
9/5/23
12/11/95
12/11/95
12/11/95
2/15/94
12/11/95
6/30/95
12/11/95
2/15/94
1/3/95
12/11/95
9/5/23
6.054%
4.287%
4.340%
4.375%
3.314%
4.282%
4.037%
4.389%
3.334%
3.848%
4.354%
6.396%
1/3/23
6.183% Qtr.
INTERESTRATE
GOVERNMENT - GUARANTEED LOANS
GENERAL SERVICES ADMINISTRATION
Oakland Office Building
Foley Services Contract
Foley Services Contract
Foley Services Contract
rCTC Building
Foley Square Courthouse
HCFA Headquarters
Foley Services Contract
rCTC Building
Memphis IRS Service Cent.
Foley Square Office Bldg.
Oakland Office Building
11/1
11/2
11/3
11/8
11/15
11/16
11/17
11/22
11/23
11/23
11/24
11/24
5/A
5/A
5/A
5/A
5/A
5/A
5/A
5/A
5/A
S/A
5/A
5/A
RURAL ELECTRIFICATION ADMINISTRATION
Northwest Electric #350
S/A is a semi-annual rate:
11/29
$544,000.00
Qtr. is a Quarterly rate.
Page 3 of 3
FEDERAL FINANCING BANK
(in millions)
Program
Net Change
11/1/93-11/30/93
November 30. 1993
october 31. 1993
$ 5,794.6
29,042.1
6,325.0
9.731.5
50,893.2
$ 5,794.6
29,839.1
6,325.0
9.731.5
51,690.2
f\gency Assets:
FmHA-ACIF
FmHA-RDIF
FmHA-RHIF
DHHS-Health Maintenance Org.
DHHS-Medical Facilities
Rural Electrification Admin.-CBO
Small Business Administration
sUb-total*
8,908.0
3,675.0
26,036.0
30.9
51.3
4,598.9
2.5
43,302.6
8,908.0
3,675.0
26,036.0
30.9
51.3
4,598.9
2.7
43,302.8
0.0
0.0
0.0
0.0
0.0
0.0
=.Qd
-0.2
Government-Guaranteed Loans:
DOD-Foreign Military Sales
DEd.-Student Loan Marketing Assn.
DEPCO-Rhode Island
DHUD-Community Dev. Block Grant
DHUD-Public Housing Notes
General Services Administration +
DOl-virgin Islands
DON-Ship Lease Financing
Rural Electrification Administration
SBA-Small Business Investment Cos.
SBA-State/Local Development Cos.
DOT-Section 511
DOT-WMATA
sUb-total*
4,057.9
4,760.0
0.0
118.1
1,746.5
1,653.7
22.9
1,528.3
17,561.1
84.9
567.5
16.5
177.0
32,294 .. 4
4,077.0
4,760.0
0.0
123.2
1,801.0
1,627.8
22.9
1,528.3
17,560.6
87.9
572.4
16.9
177.0
32,354.9
-19.1
0.0
0.0
-5.1
-54.5
25.9
0.0
0.0
0.5
-3.0
-3.0
-0.4
010
-58.6
6.gency Debt:
Export-Import· Bank
~esolution Trust Corporation
Tennessee Valley Authority
11.S. Postal Service
sUb-total*
grand-total*
*figures may not total due to rounding
+does not include capitalized interest
'$
0.0
-797.1
0.0
010
-797.1
FY '94 Net Change
10/1/93-11/30/93
$
0.0
-2,645.7
0.0
010
-2,645.7
,
---------
$126,490.2
---------
$127,347.9
$
0.0
0.0
0.0
0.0
0.0
0.0
=Q....1.
-0.3
-25.4
-30.0
-30.4
-13.3
-54.5
68.0
0.0
0.0
-92.1
-5.5
-5.5
-0.4
OIQ
-189.1
========
========
-855.8
$-2,835.1
FOR IMMEDIATE RELEASE
December 15, 1993
. t
,.\:
STATEMENT BY SECRETARY LLOYD BENTSEN
Today some 115 nations made history.
The new GATT agreement is the largest ever reached. It is a vote for optimism,
for open trade, for growth, for jobs. Like all good things, the agreement has been a long
time coming -- some 7 years -- but now that we have it, millions of Americans will
benefit. In fact, GATT is expected to give us 10 times the benefits that we expect to get
from the NAFfA trade deal with Mexico.
These are exactly the kind of benefits we want. More jobs, better jobs, better
paying jobs for American workers, and more foreign markets open to our goods and
servIces.
-30-
LB-554
'.
,'"
,
I
FOR IMMEDIATE RELEASE
Text as Prepared for Delivery
December 16, 1993
t
'~',
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
ARUNGTON TERRACE TOUR
QUEENS, N.Y.
I've just seen some clear and convincing evidence of how effective the Community
Reinvestment Act can be. I'm impressed.
One of the primary aims of this law is to make certain that our financial
institutions meet the credit needs of everyone in our communities, not just a select
segment of the market. It can help families find affordable housing. And it can help
small businessmen and women get the loans they need to start a business or expand one.
Expanding opportunities for small business is critical right now because that's where a
substantial portion of our job growth is coming from.
One of the things I saw today was people taking pride in where they live and
work, and that's exactly how it should be. Every American is entitled to the opportunity
to have a decent life and live in decent housing, and the Community Reinvestment Act is
one way to help achieve that goal.
We're working in Washington to make the CRA work even better, and we think it
will generate even more lending for projects such as Arlington Terrace.
The CRA comes into play when a bank asks regulators for permission to open a
new branch, or to buy another financial institution, or the like. The regulators look to
see just how well the bank has been complying with the eRA, but right now the rules
aren't very clear for banks to know with any certainty just how they'll stack up in the
compliance department.
What we've done is propose that there be new, very clear and very measurable
standards about how much lending, and what kind of lending, is being done for programs
such as Arlington Terrace. That will make it easy for the regulators to know what's
going on, and it will give the banks a good deal more certainty about how they will be
judged when they want permission to expand their operations. I would note that we got
four regulatory agencies in Washington to agree to this proposed change, and that may
be a first.
-30B-S55
BLIC DEBT NEWS
RESULTS OF
AUCTION OF 13-WEEK BILLS
r
Tenders for $13,007 ~iiiion of~i~Lweek bills to be issued
December 23, 1993 and to mature March 24, 1994 were
accepted today (CUSIP: 912794J62).
T~ASURY'S
i
"
'
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
3.05%
3.07%
3.06%
Investment
Rate
3.12%
3.14%
3.12%
Price
99.229
99.224
99.227
Tenders at the high discount rate were allotted 31%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
- - ---
---'..-
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
Received
$49,451,381
Acce:gted
$13,007,479
$44,494,306
1,172,223
$45,666,529
$8,050,404
1 1 172 1 223
$9,222,627
2,848,910
2,848,910
935 1 942
$49,451,381-
935 1 942
$13,007,479
An additional $6,658 thousand of bills will be
issued to foreign official institutions for new cash .
.B-556
UBLIC DEBT NEWS
RESULTS Oi;TRR~URY'S ~bCTION OF 26-WEEK BILLS
Tenders for $lf,l15 million of 26-week bills to be issued
December 23, 1993 and to mature June 23, 1994 were
accepted today (CUSIP: 912794L36).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
3.24%
3.26%
3.25%
Investment
Rate
3.34%
3.36%
3.35%
Price
98.362
98.352
98.357
Tenders at the high discount rate were allotted 26%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
-
TOTALS
Received
$45,534,248
Accepted
$13,114,994
$40,501,460
821,030
$41,322,490
$8,082,206
821,030
$8,903,236
2,900,000
2,900,000
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
1,311,758
$45,534,248 .
1,311,758
$13,114,994
An additional $9,342 thousand of bills will be
issued to foreign official institutions for new cash.
-557
Removal Notice
The item identified below has been removed in accordance with FRASER's policy on handling
sensitive information in digitization projects due to copyright protections.
Citation Information
Document Type: Transcript
Number of Pages Removed: 28
Author(s):
Title:
NBC "Meet the Press" Interview with Lloyd Bentsen, Secretary, Department of the Treasury
Date:
1993-12-19
Journal:
Volume:
Page(s):
URL:
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
December 21, 1993
For Immediate Release
.•
~
I
'"
Monthly Release of U.S. Reserve Assets
The Treasury Department today released U.S. reserve assets data for the month of
November 1993.
As indicated in this table, U.S. reserve assets amounted to $74,042 million at the end
of November 1993, down from $74,550 million in October 1993.
U.S .. Reserve Assets
(in millions oid-0Uars)
Total
Reserve
Assets
Gold
Stock 1/
Special
Drawing
RightslJl.!
Foreign
Currencies
y
Reserve
Position in
IMF 2/
October
74,550
11,056
9,038
42,548
11,908
November
74,042
11,054
9,091
42,070
11,827
End
of
Month
1993
1/
Valued at $42.2222 per fine troy ounce.
1/
Beginning July 1974, the IMF adopted a technique for valuing the SDR based on a
weighted average of exchange rates for the currencies of selected member countries. The
U.S. SDR holdings and reserve position in the IMF also are valued on this basis
beginning July 1974.
J/
Includes allocations of SDRs by the IMF plus transactions in SDRs.
~
Valued at current market exchange rates.
'!'If;MQ~~~h~j Treasury Statement
'. of
Receipts and Outlays
J_'c 2..' ~~. ~"'''-vUu
i ' . qf (the United States Government
"For Fiscal
Year 1994 Through November 30, 1993, and Other Periods
.
,
,
'
Highlight
'he Interest on the Public Debt is $22.3 billion which is 18 percent of the total current month
Federal Outlays,
RECEIPTS, OUTLAYS, AND SURPLUS/DEFICIT
THROUGH NOVEMBER 1993
250
Contents
Summary, page 2
B
I
L
L
I
Receipts, page 6
150
Outlays, page 7
100
o
Means of financing, page 20
Receipts/outlays by month, page 26
50
N
S
Federal trust funds/securities, page 28
Receipts by source/outlays by
function, page 29
-50
Explanatory notes, page 30
-1
Compiled and Published by
Department of the Treasury
Financial Management Service
Introduction
of receipts are treated as deductions from gross receipts; revolving and "*IlOlment fund receipts, reimbursements and refunds of monies previously exPllldecl ..
treated as deductions from gross outlays; and interest on the public debt (NIIc
issues) is recognized on the accrual basis. Major information sources incQIe
accounting data reported by Federal entities, disbursing officers, and FIdIraI
Reserve banks.
The Monthly Treasury Statement of Receipts and Outlays of the United States
Government (MTS) IS prepared by the Financial Management Service, Department of
the Treasury, and after approval by the Fiscal Assistant Secretary of the Treasury, is
normally released on the 15th workday of the month following the reporting month.
The publication IS based on data provided by Federal entities, disbursing officers,
and Federal Reserve banks.
Triad of Publications
The MTS is part of a triad of Treasury financial reports. The Daily TIIISIIy
Statement is published each working day of the Federal Govemment. It PIOVides
data on the cash and debt operations of the Treasury based upon reporting of !he
Treasury account balances by Federal Reserve banks. The MTS is a report of
Government receipts and outlays, based on agency reporting. The U.S. Goll8mlll8nt
Annual Report is the official publication of the detailed receipts and outlays of !he
Government. It is published annually in accordance with legislative mandates given
to the Secretary of the Treasury.
Audience
The MTS IS published to meet the needs of: Those responsible for or interested
In the cash position of the Treasury; Those who are responsible for or interested in
the Government's budget results; and individuals and businesses whose operations
depend upon or are related to the Government's financial operations.
Disclosure Statement
This statement summarizes the financial activities of the Federal Government
and off-budget Federal entities conducted in accordance with the Budget of the U.S.
Government, i.e., receipts and outlays of funds, the surplus or deficit, and the means
of financing the deficit or disposing of the surplus. Information is presented on a
modified cash basiS: receipts are accounted for on the basis of collections; refunds
Data Sources and Information
The Explanatory Notes section of this publication provides information concern.
ing the flow of data into the MTS and sources of information relevant to the Mrs.
Table 1. Summary of Receipts, Outlays, and the Deficit/Surplus of the U.S. Government, Fiscal Years 1993 and 1994,
by Month
[$ millions]
Period
Outlays
Receipts
Deficit/Surplus (-)
FY 1993
October
November
........................... ..
December ...
.. ............ ..
January .................................. .
February ...... .
March ..... .
April .......... .
May
.......... .
.......................... .
June
July
............................. .
August .................................. .
September .............................. .
76,824
74,625
113,683
112,712
65,975
83,284
132,012
70,638
128,566
80,626
86,734
127,469
125,616
107,351
152,629
82,896
114,172
127,258
123,921
107,601
117,467
120,204
109,812
118,904
48,792
32,726
38,947
-29,817
48,197
43,974
-8,091
36,963
-11,099
39,577
23,078
-8,565
Year-to-Date ......................... ..
1,153,147
1.2,31,407,831
254,684
78,668
83,107
4124,090
121,488
45,422
38,381
161,775
245,578
83,803
FY 1994
October
November
Year-to-Date ......................... ..
'Outlays in October 1993 have been increased by $79 million lor !he U.S. EnriClvnefll
Corporation to report outlays not previously reported.
Note: The receipt and outlay figures lor FY 1993 and FY 1994 have been revised to rellect tilt
reclassification Irom a governmental receipt to an offsetting governmental receipt 01 IIC(XIIIItI
"Diversion Control Fee, DEA" and "Breached Bond/Dentention Fund, INS".
'Outlays have been decreased in September 1993 by $1 million, $3 million, $34 million, $152
m,lIlO11. and $63 mllhon lor additional reporting lor the OPIC, GNMA, IRS, SBA, and undistributed
oHsetting receipts, respectively.
'Outlays have been increased in September 1993 by $9 million, $7 million, $3 million and $1
mllllOl1 lor additional reporting lor the Army, Indian Health ServiCe, Housing Programs, and FMS.
'Includes a reclaSSIfication from a budgetary status to a non-budgetary status 01 -$31 million
lor FY 1993 lor !he "Foreogn Assistance Programs, Debt Reduction Financing Account"
2
Table 2. Summary of Budget and Off-Budget Results and Financing of the U.S. Government, November 1993 and
Other Periods
[$ millions]
Budget
Estimates
Full Fiscal
Year'
Current
Fiscal
Year to Date
This
Month
Classification
Prior
Fiscal Year
to Date
(1993)
Budget
Estimates
Next Fiscal
Year (1995)'
Total on-budget and off-budget results:
Total receipts .......................................... .
83,107
161,775
1,241,312
151,449
1,329,334
On-budget receipts .. " " " .......................... .
Off-budget receipts ................................. .
58,700
24,407
114,564
47,211
903,425
337,888
106,259
45,190
974,096
355,238
Total outlays ........................................... .
121,488
245,578
1,500,061
232,967
1,536,259
On-budget outlays .................................. .
Off-budget outlays .................................. .
96,724
24,764
197,292
48,286
1,219,390
280,671
187,207
45,760
1,243,698
292,561
Total surplus (+) or deficit (-) ...................... ..
-38,381
-83,803
-258,748
-81,518
-206,925
On-budget surplus (+) or deficit (-) ............... .
Off-budget surplus (+) or deficit (-) ............... .
-38,024
-357
-82,728
-1,075
-315,965
+57,217
-80,948
-570
-269,602
+62,677
Total on-budget and off-budget financing ............ .
38,381
83,803
258,748
81,518
206,925
Means of financing:
Borrowing from the public .......................... .
Reduction of operating cash, increase (-) ........ .
By other means .................................... ..
71,028
-13,451
-19,196
75,283
20,196
-11,675
265,244
60,416
32,074
-10,973
212,679
'These figures are based on the appendix tables in the Mid-Session Review of the FY 1994
Budget, released by the Office of Management and Budget in September 1993.
-6,496
... No Transactions.
Note: Details may not add to totals due to rounding.
Figure 1. Monthly Receipts, Outlays, and Budget Deficit/Surplus of the U.S. Government, Fiscal Years 1993 and 1994
$ billions
Outlays
,,
...
,,
,
~,-
,, ,,
"
"
....... "" ~
,'
,
,,
,
~--
Receipts
Oct.
Dec.
Feb.
Jun.
Apr.
Aug.
Oct. Nov.
FY
94
FY
93
3
-5,754
Figure 2.
Monthly Receipts of the U.S. Government, by Source, Fiscal Years 1993 and 1994
$ billions
1~~~~--------------------------------------~
ITotal Receipts I
1
1
1
Oct.
Dec.
Feb.
Jun.
Apr.
Aug.
Oct. Nov.
FY
FY
94
93
Figure 3. Monthly Outlays of the U.S. Government, by Function, Fiscal Years 1993 and 1994
1nO-r-------------------------------------------~
Total Outlays
1
1
1
Apr.
Jun.
Aug.
Oct. Nov.
FY
FY
94
93
4
Table 3. Summary of Receipts and Outlays of the U.S. Government, November 1993 and Other Periods
[$ millions]
This Month
Current
Fiscal
Year to Date
Individual income taxes ......................................... .
Corporation income taxes ....................................... .
Social insurance taxes and contributions:
Employment taxes and contributions (off-budget) ........... .
Employment taxes and contributions (on-budget) ............ .
Unemployment insurance ..................................... .
Other retirement contributions ................................ .
Excise taxes ..................................................... .
Estate and gift taxes ........................................... .
Customs duties .................................................. .
Miscellaneous receipts ........................................... .
37,634
2,208
75.314
4.366
70.379
3,575
548.215
120.842
24,407
7.118
2.773
385
4.808
1.305
1.688
781
47,211
13,754
3.819
728
8,405
2,296
3.396
22,487
45.190
13.209
3.304
792
7.752
1.981
3.169
22.098
337.888
94,807
27,272
4,676
54.512
12.691
20.374
20.035
Total Receipts •.•.•.••...........•..•.....•.........•..........
83,107
161,775
151,449
1,241,312
(On-budget) ....•.••••••.•.•..•.••.••...•............•....•.•.
58,700
114,564
106,259
903,425
(Off-budget) ••.....•••••.•.••.••••.•.••••••.•.••••••.•.•.•.••
24,407
47,211
45,190
337,888
206
219
18
1.096
7.149
277
21,796
2,515
3,356
1.723
584
377
37
5,088
12.041
541
44.943
5.064
5.161
3,433
414
298
40
34,858
412,674
575
545,901
4.999
65,008
3,105
3.134
3.138
186
12.297
66.603
3.181
264.144
30.545
30.992
16.931
24.695
25.545
2,415
600
905
2.823
586
3.252
50.126
50.106
5.060
1.127
21,654
6.185
1,429
6,403
544.563
46.919
3.5.74,641
1,198
22.128
6,498
1.265
5,899
320.180
315.266
26.986
7.325
10.322
36.640
5.538
36.773
22.260
75
3.169
506
-489
1.214
2.879
146
39,898
-27
5,974
936
-250
2,293
6.214
160
40,484
3.5.6.7-775
5,778
950
-313
2,415
5.676
3208
303.161
9.779
38.038
6.552
836
14.670
38.872
762
-1,169
1,808
-1.162
83.217
-6.206
4.626
5.231
23.279
-5.173
-2.910
-5,533
-5,503
3-5,395
-5,464
-86.125
-45.175
Total outlays .•..•.•.•.••••.....••••.•.•....•.•.•.•..•.•.•••.•..
121,488
245,578
232,967
1,500,061
(On-budget) ........••••.•.••••...••••.•...••••••.•.•.•.•••••.
96,724
197,292
187,207
1,219,390
(Off-budget) .•••.••••...•.••••••..•••.••••••••••.•....•••••••
24,764
48,286
45,760
280,671
Surplus (+) or deficit (-) •...•.••••.•....•.•...•.••.•.•...•.•
-38,381
-83,803
-81,518
-258,748
(On-budget) •.•.•.•...••••.•.••...•.••.•.•.••••.•.•.•.•.•••...
-38,024
-82,728
-80,948
-315,965
(Off-budget) ..••••••.•.•....••••..•••.•....•••.•...•.••••••••
-357
-1,075
-570
+57,217
Classification
Comparable
Prior Period
Budget
Estimates
Full Fiscal Year 1
Budget Receipts
Budget Outlays
Legislative Branch ............................................... .
The Judiciary .................................................... .
Executive Office of the President .............................. .
Funds Appropriated to the President ........................... .
Department of Agriculture ....................................... .
Department of Commerce ...................................... .
Department of Defense-Military ............................... .
Department of Defense-Civil .................................. .
Department of Education ....................................... .
Department of Energy ........................................... .
Department of Health and Human Services, except Social
Security ......................................................... .
Department of Health and Human Services, Social Security '"
Department of Housing and Urban Development .............. .
Department of the Interior ...................................... .
Department of Justice ........................................... .
Department of Labor ............................................ .
Department of State ............................................ .
Department of Transportation ................................... .
Department of the Treasury:
Interest on the Public Debt .................................. .
Other .......................................................... .
Department of Veterans Affairs ................................. .
Environmental Protection Agency ............................... .
General Services Administration ................................ .
National Aeronautics and Space Administration ................ .
Office of Personnel Management ............................... .
Small Business Administration .................................. .
Other independent agencies:
Resolution Trust Corporation ................................. .
Other .......................................................... .
Allowances ....................................................... .
Undistributed offsetting receipts:
Interest ........................................................ .
Other .......................................................... .
"Outlays for the Department of Education have been decreased and outlays for the
Department of the Treasury have been correspondingly increased in September 1993 by $124
million due to the reclassification of the account. "Federal Family Education Loan Program Downward Re-estimate of Subsidies".
70utlays for the Department of Housing and Urban Development have been decreased and
outlays for the Department of the Treasury have been correspondingly increased in November
1992 by $3 million due to the reclassification of the account, "Office of Federal Housing Enterprise
Oversight".
"Outlays in October 1993 have been increased by $79 million for the U.S. Enrichment
Corporation to report outlays not previously reported.
Note: Details may not add to totals due to rounding.
'These figures are based on the appendix tables in the Mid-Session Review of the FY 1994
Budget. released by the Office of Management and Budget in September 1993.
21ncludes a reclassification in FY 1993. from a govemmental receipt to an offsetting
governmental receipt. of $14 million and $13 million for the Department of Justice. Drug
Enforcement Administration and Immigration and Naturalization Service (INS). respectively; and $2
million in FY 1994 for INS.
3Qutlays have been decreased in September 1993 by $1 million. $3 million. $34 million. $152
million. and $63 million for additional reporting for the OPIC. GNMA. IRS. SBA. and undistributed
offsetting receipts. respectively.
'Inc!udes a reclassification from a budgetary status to a non-budgetary status of -$31 million
for FY 1993 for the "Foreign Assistance Programs. Debt Reduction Financing Account"·.
SOutlays have been increased in September 1993 by $9 million. $7 million. $3 million and $1
million for additional reporting for the Army. Indian Health Service. Housing Programs. and FMS.
5
Table 4.
Receipts of the U.S. Government, November 1993 and Other Periods
[$ millions]
This Month
Classification
Gross
Receipts
Refunds
(Deduct)
Prior Fiscal Year to
Current Fiscal Year to Date
Receipts
Gross
Receipts
I (Deduct)
Refunds
Receipts
Gross
Receipts
I (Deduct)
Refunds
D.te -..,
"I
Recetpb
,,
-
I
Individual income taxes:
Withheld
Presidential Election Campaign Fund
Other
37,823
'-27
1,945
72,107
67,595
5,998
5,357
..)
r 0)
(
-
.........................
39,741
2,107
37,634
78,106
2,792
75,314
72,953
2,574
70,379
Corporation income taxes ,,,,,, .. ,,,.,,,, .. ,,,.,,, .. ,, .. ,,, ..
2,855
647
2,208
7,125
2,759
4,366
6,603
3,028
3,575
22,045
42,642
42,642
40,826
....
40,826
)
)
-11
..)
-11
Total-Individual income taxes
Social insurance taxes and contributions:
Employment taxes and contributions:
Federal old-age and survivors ins trust fund:
Federal Insurance Contributions Act taxes
Self-Employment Contributions Act taxes
DepoSits by States
Other
Total-FOASI trust fund
Federal disability Insurance trust fund:
Federal Insurance Contributions Act taxes
Self-Employment Contributions Act taxes
Receipts from railroad retirement account
DepoSits by States
Other
22,045
....
....
(
(
(
(
)
)
Federal hospital Insurance trust fund:
Federal Insurance Contributions Act taxes
Self-Employment Contributions Act taxes
Receipts from Railroad Retirement Board
DepoSits by States
Total-FHI trust fund
Total-Employment taxes and contributions
(
(
)
)
(
n
22,045
42,642
42,642
40,815
40,815
2,362
2,362
4,569
4,569
4,375
4,375
..
)
(")
..
)
..
..
(
)
(
(
(
2,362
2,362
4,569
4,569
4,375
4,375
6,835
6,835
13,163
13,163
12,625
12,625
..
..)
Railroad retirement accounts:
Rail industry pension fund
Railroad Social Security equivalent benefit
....
(
(
22,045
..)
Total-FDI trust fund
)
)
..
)
(
(
6,835
6,835
13,163
..
..
)
(
(
..
..
..
..
)
(")
13,163
12,625
12,625
(
)
)
(
133
150
(
)
133
150
306
285
(
)
306
285
323
268
7
316
268
31,525
(
)
31,525
60,965
(
)
60,965
58,406
7
58,399
3
2,348
423
2
)
3,151
667
7
1
3,151
660
7
1
2,629
639
22
25
2,773
3,826
3,819
3,316
Unemployment insurance:
State taxes depOSited in Treasury
Federal Unemployment Tax Act taxes
Railroad unemployment taxes
Railroad debt repayment
2,348
426
2
Total-Unemployment insurance
2,776
..
..)
(
(
3
7
7
12
12
2,629
628
22
25
3,304
Other retirement contributions:
Federal employees retirement - employee
contributions
Contributions for non-federal employees
374
11
374
11
711
17
711
17
777
15
777
15
Total-Other retirement contributions
385
385
728
728
792
792
Total-Social insurance taxes and
contributions ........................................
34,686
3
34,683
65,519
7
65,512
62,514
19
62,495
3,133
453
1,414
40
316
2
-86
2,818
450
1,500
40
4,849
891
2,833
95
347
2
-85
4,502
889
2,919
95
4,132
861
2,820
104
164
3,968
861
2,819
104
.....................................
5,039
232
4,808
8,669
264
8,405
7,917
165
7,752
Estate and gift taxes '"''''''''''''''''''''''''''''''''''''''
1,340
34
1,305
2,355
59
2,296
2,027
46
1,981
...............................................
1,775
87
1,688
3,573
177
3,396
3,314
145
3,169
509
272
2,033
3456
2
2,033
454
1,508
3591
1,508
591
2,098
Excise taxes:
Miscellaneous excise taxes 2
Airport and airway trust fund
Highway trust fund
Black lung disability trust fund
Total-Excise taxes
Customs duties
...........
Miscellaneous Receipts:
DepoSits of earnings by Federal Reserve banks
All other
509
273
Total -
Miscellaneous receipts.",.", .. , ... "." .. ".
781
781
2,489
2
2,487
2,099
Total -
86,219
3,111
83,107
167,834
6,059
161,775
157,426
5,977
151,449
Total -
........................................
On-budget ......................................
61,812
3,111
58,700
120,623
6,059
114,564
112,236
5,977
106,259
Total -
Off-budget
......................................
24,407
24,407
47,211
47,211
45,190
Receipts
lPnor month adjustment
... No Transactions.
(. 'J Less than $500,000.
Note: Details may not add to totals due to rounding.
21ncludes amounts for windfall profits tax pursuant to P L 9!>-223
llnCludes a reclassification In FY 1993 from a governmental receipt to an offsetting
gover'lrnental receipt of $14 moilion and $13 million for the Department of Justice, Drug
Enforcernert Administration and Immigration and Naturalization Service (INS), respectively. and $2
milhor ,n F"I' 199.1 for INS
6
45,190
-
Table 5. Outlays of the U.S. Government, November 1993 and Other Periods
[$ millions]
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross IApplicable I Outlays
Receipts
Outlays
Gross IAPPlicable! 0 tla
Outlays
Receipts
u ys
Gross IAPPlicable lOti
Outlays
Receipts
u ays
Classification
Legislative Branch:
Senate · . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
House of Representatives . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Joint items ...................................................
Congressional Budget Office ................................
Architect of the Capitol ......................................
Library of Congress ..........................................
Government Printing Office:
Revolving fund (net) .......................................
General fund appropriations ...............................
General Accounting Office ...................................
United States Tax Court ....................................
Other Legislative Branch agencies ..........................
Proprietary receipts from the public .........................
Intrabudgetary transactions ..................................
................................
208
Total-Legislative Branch
34
63
6
2
20
28
(00)
34
63
6
2
20
28
71
124
14
4
41
226
9
9
29
4
3
9
9
29
4
3
-1
21
13
65
6
6
(00)
(00)
-2
206
588
3
4
1
2
(* *)
2
4
r *)
71
122
14
4
39
226
70
131
13
4
47
59
21
13
65
6
6
-1
-2
-19
18
83
6
6
-19
18
83
6
6
-1
(**)
(* *)
584
418
4
3
1
2
4
69
130
13
4
45
59
414
The Judiciary:
Supreme Court of the United States . . . . . . . . . . . . . . . . . . . . . . .
Courts of Appeals. District Courts. and other judicial
services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .
Other ...................................................... ' "
205
12
(* *)
204
12
356
18
(* *)
355
18
294
1
(* *)
294
1
.....................................
220
(* *)
219
377
(* *)
377
298
(* *)
298
Executive Office of the President:
Compensation of the President and the White House
Office · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .
Office of Management and Budget . . . . . . . . . . . . . . . . . . . . . . . . .
Other .........................................................
4
6
8
8
11
18
8
11
18
7
10
23
7
10
23
..............
18
4
6
8
18
37
37
40
40
158
2.164
1.484
-7
2
6
20
83
2.143
1,480
2
8
4
-20
74
3.699
3.808
Total-The Judiciary
Total-Executive Office of the President
Funds Appropriated to the President:
International Security Assistance:
Guaranty reserve fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Foreign military financing grants ..........................
Economic support fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . .
Military assistance .........................................
Peacekeeping Operations ..................................
Other .......................................................
Proprietary receipts from the public . . . . . . . . . . . . . . . . . . . . . .
3
84
278
80
-1
8
2
43
136
2.143
1,480
2
8
4
11
41
278
80
-1
8
2
-11
54
397
3.773
53
3
53
29
105
2.164
1,484
-7
2
6
-29
81
3.727
................
451
International Development Assistance:
Multilateral Assistance:
Contribution to the International Development
Association .............................................
International organizations and programs ..............
Other .....................................................
32
65
32
65
194
41
194
194
41
194
186
118
182
186
118
182
........................
98
98
429
429
486
486
109
52
43
109
52
43
238
98
91
238
98
91
232
111
70
232
111
70
1
52
97
-52
132
8
90
124
-90
87
Total-International Security Assistance
Total-Multilateral Assistance
Agency for International Development:
Functional development assistance program ...........
Sub-Saharan Africa development assistance ...........
Operating expenses .....................................
Payment to the Foreign Service retirement and
disability fund . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Other .....................................................
Proprietary receipts from the public ....................
Intrabudgetary transactions . . . . . . . . . . . . . . . . . . . .. . . . . . . . .
98
10
90
-90
77
.......
302
53
249
559
98
461
501
100
401
Peace Corps ...............................................
Overseas Private Investment Corporation ................
Other · . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . .
31
3
9
38
45
5
18
49
(00)
31
-35
9
(00)
45
-44
18
38
7
10
'53
1
38
-46
10
. . .. .. .. ..
442
90
351
1.056
148
908
1.043
154
889
International Monetary Programs ............................
Military Sales Programs:
Special defense acquisition fund ..........................
Foreign military sales trust fund ..........................
Kuwait civil reconstruction trust fund .....................
Proprietary receipts from the public ......................
Other . . . . .. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
77
77
296
296
618
44
-53
1.087
37
2.123
44
-7
2.123
(00)
(00)
(* *)
51
1.829
1
767
-767
3
1.933
2
-1.933
2
3
1,096
7,287
5,088
7,352
Total-Agency for International Development
Total-International Development Assistance
Total-Funds Appropriated to the President
...........
-9
1.087
(00)
3
2,051
955
7
2,198
618
42
2.218
2,495
9
1.829
1
-2.218
3
4,858
Tible 5. Outlays of the U.S. Government, November 1993 and Other Periods-Continued
[$ millions]
CI•••lflc:atlon
This Month
Current Fiscal Year to Date
Gross jAPPlicablej Outlays
Outlays
Receipts
Gross lAPp'ic.ab,e1 Outlays
Outlays
Receipts
o.partment of Agriculture:
Agricultural Research Service ..
Cooperative State Research Service
ExtenSiOn Service
Animal and Plant Health Inspection Service . . . . . .
Food Safety and Inspection Service
Agricultural Mar1<eting Service ................. ...........
Soil Conservation Service:
Watershed and flood prevention operations ..............
Conservation operations ....................
..........................................
Other
Agricultural Stabilization and Conservation Service:
.................
Conservation programs
Other ...... ................... ....................
Farmers Home Administration:
Credit accounts:
Agricultural credit insurance fund .......................
Rural housing insurance fund ...........................
17
320
116
74
65
70
76
174
137
68
62
85
88
246
245
22
49
7
22
49
7
49
88
13
49
88
13
43
102
15
102
15
1,239
59
1,239
59
1,746
107
1,746
107
1,668
98
1,668
98
-125
36
263
574
21
32
229
598
141
283
(' *)
(OO)
48
9
94
14
Total-Farmers Home Administration ...................
393
-32
945
Foreign assistance programs ..........................
Rural Development Administration:
Rural development insurance fund ......................
Rural water and waste disposal grants ..................
290
290
240
173
56
12
100
446
Total-Food and Nutrition Service ..............
Forest Service:
National forest system .................... ...............
Forest service permanent appropriations ...
Other ........................... ...........................
Total-Forest Service ........................
. ..............
Proprietary receipts from the public .. .................
Intrabudgetary transactions ............ ....................
Other ................
Total-o.partment of Agriculture
o.partment
Economic
Bureau of
Promotion
.......................
of Commerce:
Development Administration .. .................
...........
the Census
of Industry and Commerce .............
Science and Technology:
National Oceanic and Atmospheric Administration
Patent and Trademark Office
National Institute of Standards and Technology
Other .......
Total-Science and Technology
...........
66
30
6
42
295
150
192
30
30
6
-108
104
2,622
36
649
(' *)
.......................
242
542
(
..
)
94
14
113
14
161
954
240
250
1
442
263
95
56
11
-342
183
197
48
12
176
179
1,057
2,923
784
79
137
68
62
85
88
43
277
528
-48
70
(' .)
(")
113
14
805
149
50
64
1
603
277
133
48
12
-428
-98
1,972
3,980
(OO)
(oo)
(OO)
(* *)
4,575
5
2,165
577
260
29
2,165
577
260
29
4,218
1,016
499
63
4,218
1,016
499
63
4,017
1,120
485
167
4,017
1,120
485
167
3.030
3,030
5,796
5,796
5,789
5,789
114
-42
123
114
-42
123
236
-33
225
236
-33
225
242
31
308
242
31
308
195
195
428
428
580
580
699
3,875
5
61
4
78
57
-78
108
5
190
102
-190
1
109
5
157
104
-157
8,682
1,533
7,149
14,863
2,822
12,041
15,286
2,612
12,674
31
25
21
3
28
25
21
53
59
43
4
49
59
43
49
88
53
4
45
88
53
329
7
41
18
7
328
7
41
11
321
17
35
14
6
319
17
35
8
8
387
386
7
379
25
-22
28
22
19
28
-19
33
541
605
30
575
165
10
18
7
3
164
10
18
4
200
4
196
395
16
-10
25
10
17
277
574
Proprietary receipts from the public
Intrabuclgetary transactions
Offsetting governmental receipts
Tcal-o.partment of Commerce
425
16
Other
YI
116
74
65
70
76
175
48
9
Food and Nutrition Service:
Food stamp program .......................... ...........
State child nutrition programs ........................
Women, infants and children programs ................
Other ................................................
0utIe
60
41
32
37
38
65
(' *)
Other .......................................................
Gross jAPPlicablej
Outlays
Receipts
D."
60
41
32
37
38
65
Other .....................................................
Salaries and expenses ....................................
Other .......................................................
Rural Electrification Administration ...................
Federal Crop Insurance Corporation ...........
Commodity Credit Corporation:
Price support and retated programs ......... ............
. ...........
National Wool Act Program .............
Prior Fiscal Year to
294
8
-
Table 5, Outlays of the U,S, Government, November 1993 and Other Periods-Continued
[$ millions]
Classification
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross IAPPlicable I Outlays
Outlays
Receipts
Gross IAPPlicablel 0 tla s
Receipts
u y
Outlays
Gross IAPPllcabie I Oudava
Outlays
Receipts
Department of Defense-Military:
Military personnel:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
2,309
2,016
1,032
2,309
2,016
1,032
4,513
4,257
3,222
4,513
4,257
3,222
4,707
4,523
3,593
4,707
4,523
3,593
................................
5,357
5,357
11,991
11,991
12,823
12,823
Operation and maintenance:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
1,680
1,807
1,839
1,722
1,680
1,807
1,839
1,722
3,199
3,406
3,533
3,323
3,199
3,406
3,533
3,323
3,933
3,463
3,653
2,742
3,933
3,463
3,653
2,742
Total-Operation and maintenance ...................
7,049
7,049
13,461
13,461
13,791
13,791
Procurement:
Department of the Army · . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . .
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies ..........................................
667
2,117
1,934
414
667
2,117
1,934
414
1,416
4,233
3,932
682
1,416
4,233
3,932
682
2,088
4,403
3,952
582
2,088
4,403
3,952
582
.....................................
5,132
5,132
10,263
10,263
11,025
11,025
Research, development, test, and evaluation:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies ..........................................
498
523
1,170
684
498
523
1,170
684
960
1,029
2,507
1,366
960
1,029
2,507
1,366
908
1,086
2,405
31,355
908
1,086
2,405
1,355
Total-Research, development, test and evaluation
2,875
2,875
5,861
5,861
5,754
5,754
Military construction:
Department of the Army ..................................
Department of the Navy · . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Department of the Air Force ..............................
Defense agencies ..........................................
99
-38
96
231
99
-38
96
231
153
53
190
396
153
53
190
396
158
139
247
277
158
139
247
277
.............................
388
388
792
792
820
820
76
43
80
11
76
43
80
9
150
107
163
19
150
107
163
14
173
128
125
11
173
128
125
11
148
112
49
95
49
95
-137
23
560
-4
2,257
-16
2,257
-17
1,133
-4
(0 0)
1,133
-5
(")
(")
r *)
r ')
(")
(* *)
(0 0)
-4
1
3
-5
2
10
7
6
4
6
7
1
6
9
131
97
39
-9
-131
-97
-39
Total-Military personnel
Total-Procurement
Total-Military construction
Family housing:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies ..........................................
Revolving and management funds:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .
Defense agencies:
Defense business operations fund .....................
Other .....................................................
Trust funds:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies ..........................................
Proprietary receipts from the public:
Department of the Army ..................................
Department of the Navy ..................................
Department of the Air Force ..............................
Defense agencies ..........................................
Intrabudgetary transactions:
Department of the Army ..................................
Department of the Navy · . . . . . . . .. . . . . . . . . . . . . . . . . . . . . . . . .
Department of the Air Force ..............................
Defense agencies:
Defense cooperation account . . . . . . . . . . . . . . . . . . . . . . . . . . .
Voluntary separation incentive fund ....................
Other .....................................................
Offsetting governmental receipts:
Department of the Army ..................................
Defense agencies:
Defense cooperation account ...........................
Total-Department of Defense-Military
.............
2
148
112
560
-4
(* ')
(")
3
27
18
55
-152
5
2
51
-27
-18
-55
152
5
3
2
(* 0)
51
145
147
161
39
-145
-147
-161
-39
(0 ')
-137
23
-15
11
3
-15
11
3
108
22
93
108
22
93
122
819
20
122
819
20
(")
(* ')
r *)
(")
-8
-8
-76
-76
-29
-29
-428
-428
21,748
(")
(")
-48
21,796
9
45,444
r ')
(' 0)
502
44,943
46,213
25
-25
312
45.901
Table 5. Outlays of the U.S. Government, November 1993 and Other Periods-Continued
[$ millions]
This Month
Classification
Cummt Ascal Year to Date
Gross lAPPIi<::"ble I Outlays
Outlays
Receipts
Department of Defense-Civil
Corps of Engineers
Construction. general
Operation and maintenance, general
Other
Propnetary receipts from the public
95
94
127
Total-Corps of Engineers
315
Military retirement:
............
Payment to military retirement fund
............
Retired pay
...........
MIlitary retirement fund
Intrabudgetary transactions
...........................
EducallOn benefits
................
Other
.................
Propnetary receipts from the public
Total-Department of Defense-Civil
...................
Department of Education:
Office of Elementary and Secondary Education:
Compensatory education for the disadvantaged
. . . . . . . . . . . . ....................
Impact aid
.................
School improvement programs
................
Chicago litigation settlement
.................
Indian education
.................
............
Other
Total-Office of Elementary and Secondary
Education
Gross
Outlays
Gross jAPPIiCabiel
Receipts
Outlays
212
241
362
25
25
622
815
11,908
11,908
12,273
4,405
-11,908
30
9
1
2
4,405
-11,908
30
9
-2
4,178
-12,273
30
10
27
5,064
5,033
174
181
291
15
15
300
647
2,187
Applic.ableI Outlays
Receipts
174
181
291
-25
95
94
127
-15
2,187
I
Prior Fiscal Year to Dill
OutleY'
212
241
362
32
-32
32
783
12,273
4,178
1
2
-12,273
30
9
-2
34
4,",
1
22
6
-1
17
2,515
5,091
693
463
139
1
6
693
463
139
1
6
1,080
469
256
1
12
1,080
469
256
1
12
1,030
377
290
1
12
1,030
3n
290
1
12
1,302
1,302
1,818
1,818
1,709
1,709
22
7
r ')
2,531
Office of Bilingual Education and Minority Languages
Affairs
Office of Special Education and Rehabilitative Services:
Special education
.............
....................
Rehabilitation services and disability research ............
Special institutions for persons with disabilities
Office of Vocational and Adult Education ..................
22
22
37
37
35
35
239
181
14
194
239
181
14
194
462
364
20
264
462
364
20
264
416
321
26
379
416
321
26
379
Office of Postsecondary Education:
College housing loans
......................
Student financial assistance
......................
Federal family education loans
. , . , ' , ..................
Higher education
..............
Howard University
...........
Other
666
628
41
19
3
-8
666
628
41
19
3
1,369
593
106
26
1
1,349
2,095
33
29
67
63
1,357
Total-Office of Postsecondary Education
Office of Educational Research and Improvement
Departmental management
.............
Proprietary receipts from the public ........................
Total-Department of Education
Department of Energy:
AtomiC energy defense activities
33
29
6
-6
14
3,356
5,190
-19
1,369
593
106
26
22
1,336
507
140
37
-6
19
2,076
2,015
63
72
10
67
63
-10
29
5,161
5,036
-22
1,336
507
140
37
-l)
22
1,993
83
72
46
-l)
28
5,001
3,370
...........
1,147
1,147
2,231
2,231
2,001
2,001
117
187
179
42
58
20
117
187
179
42
58
20
)
231
504
206
68
67
56
59
51
231
504
206
68
67
56
59
(
237
487
182
74
91
36
60
66
(
)
1,233
1,241
201
126
81
-101
-132
-6
365
97
Total-Energy programs
Total-Department of Energy
8
19
........................
Energy programs:
General sCience and research activities
Energy supply. Rand D activities
.............
Uranium supply and enrichment activities
Fossil energy research and development
Energy conservation
................
Strategic petroleum reserve .......................
Nuclear waste disposal fund .................
Other
...................
Power Markellng Administration
Departmental admlnistrallOn
Propnetary receipts from the public
Intrabudgetary transactions
Offsetting governmental receipts
8
.................
38
(
)
38
237
487
182
74
91
36
60
67
675
(
)
675
1,233
160
53
112
328
81
4
48
53
-42
-154
-4
158
1,723
34
..
..
34
42
.................
............................
-154
1,881
10
..
..
101
-132
6
..
..
)
50
)
1,240
207
158
308
-308
-80
3
-3
(
(
-80
97
Table 5, Outlays of the U,S, Government, November 1993 and Other Periods-Continued
[$ millions]
Classification
)epartment of Health and Human Services, except Social
Security:
Public Health Service:
Food and Drug Administration ............................
Health Resources and Services Administration ...........
. ...........................
Indian Health Service ......
Centers for Disease Control ...... ........................
National Institutes of Health ...............................
Substance Abuse and Mental Health Services
........................................
Administration
Agency for Health Care Policy and Research ............
...................
Assistant secretary for health
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross !APPlicable I Outlays
Outlays
Receipts
Gross IAPPlicablel 0 tl
Outlays
Receipts
u ays
Gross IAPPlicablel 0 tl
Receipts
u ays
Outlays
66
186
152
135
955
r ')
141
8
56
66
186
152
135
955
126
317
288
233
1,737
126
317
288
233
1,737
116
260
3267
225
1,467
115
260
267
225
1,467
141
8
56
340
19
108
340
19
108
464
4
111
464
4
111
1,700
3,167
3,166
2,914
2,914
...................
1,700
Health Care Financing Administration:
Grants to States for Medicaid ....... .....................
..............
Payments to health care trust funds
6,626
3,746
6,626
3,746
14,020
7,511
14,020
7,511
11,807
6,355
11,807
6,355
7,920
86
7,920
86
15,258
180
15,258
180
13,696
158
13,696
158
.................................
8,006
8,006
15,438
15,438
13,854
13,854
Federal supplementary medical insurance trust fund:
Benefit payments ................... ...................
Administrative expenses and construction .............
4,715
122
4,715
122
9,236
252
9,236
252
8,472
152
8,472
152
...........
4,838
4,838
9,487
9,487
8,624
8,624
.............. . ..........
55
55
72
72
162
162
...........
23,270
23,270
46,529
46,529
40,802
40,802
Social Security Administration:
Payments to Social Security trust funds .................
Special benefits for disabled coal miners ................
Supplemental security income program ...................
11
68
1,982
11
68
1,982
988
137
3,905
988
137
3,905
1,528
134
3,414
1,528
134
3,414
...................
2,061
2,061
5,031
5,031
5,076
5,076
1,344
121
8
7
64
530
52
186
283
1,344
121
8
7
64
530
52
186
283
2,790
574
46
50
106
569
111
324
568
2,790
574
46
50
106
569
111
324
568
2,752
258
44
63
65
28
24
432
563
2,752
258
44
63
65
28
24
432
563
127
127
382
382
81
(")
(* ')
Total-Public Health Service
Federal hospital insurance trust fund:
Benefit payments ........................................
Administrative expenses and construction . . . . . . . .
Interest on normalized tax transfers ...................
Quinquennial transfers to the general fund from FHI
Total-FHI trust fund
Total-FSMI trust fund
Other .......
............
Total-Health Care Financing Administration
Total-Social Security Administration
Administration for children and families:
Family support payments to States ... ...................
Low income home energy assistance ....................
Refugee and entrant assistance ..........................
Community Services Block Grant .........................
Payments to States for afdc work programs ............
Interim assistance to States for legalization ..............
Payments to States for child care assistance ...........
Social services block grant ................................
Children and families services programs .................
Payments to States for foster care and adoption
assistance ...........................................
Other ............................... ................
Total-Administration for children and families
Administration on aging ......................................
Office of the Secretary ......................................
Proprietary receipts from the public ...............
Intrabudgetary transactions:
Quinquennial transfers to the general fund
From FHI, FOASI, and FDI .......................
Payments for health insurance for the aged:
Federal hospital insurance trust fund .................
Federal supplementary medical insurance trust fund ..
Payments for tax and other credits:
Federal hospital insurance trust fund ..................
Other .....................................................
Total-Department of Health and Human Services,
except Social Security ................................
(")
81
2,723
2,723
5,520
5,520
4,310
4,310
57
13
57
13
-1,384
100
29
100
29
-2,738
50
33
50
33
-2,268
-3,746
-7,511
-7,511
-6,355
-6,355
(* *)
(' *)
1,384
-3,746
26,079
1,384
11
24,695
2,738
52,865
2,739
50,126
2,268
46,832
2,269
44,563
Table 5. Outlays of the U.S. Government, November 1993 and Other Periods-Continued
[$ millions]
Classification
Department of Health and Human Services, Social
Security (off-budget):
Federal old·age and survivors insurance trust fund:
Benefit payments
Administrative expenses and construction
Payment to railroad retirement account
Interest expense on interfund borrowings
Interest on normalized tax transfers
QUinquennial transfers to the general fund from
...........
FOASI
Total-FOASI trust fund
Federal disability insurance trust fund:
......................
Benefit payments
Administrative expenses and construction
Payment to railroad retirement account ..................
Interest on normalized tax transfers ...... ................
Quinquennial transfers to the general fund from FDI ....
Total-FDI trust fund
.....................
This Month
Current Fiscal Year to Date
Gross !APPlicable! Outlays
Receipts
Outlays
Gross !APPlic.able! Outlays
Receipts
Outlays
44,812
288
42,711
327
42.711
327
22,554
22,554
45,100
45,100
43,038
43,038
2,911
87
2,911
87
5,837
153
5,837
153
5,278
132
5,278
132
2,998
2,998
5,990
5,990
5,409
..
(
25,545
Public and Indian Housing programs:
Low-rent public housing-Loans and other expenses
Payments for operation of low-income housing
projects
.................. ....................
Community Partnerships Against Crime
Total-Public and Indian Housing programs ...........
Government National Mortgage Association:
Management and liquidating functions fund
Guarantees of mortgage-backed securities
.............
...........
Total-Government National Mortgage Association
Community Planning and Development:
Community Development Grants
Other
Total-Community Planning and Development
Management and Administration
..................
Other
Propnetary receipts from the public
Offsetting governmental receipts
Total-Department of Housing and Urban
Development .............................................
YI
44,812
288
Total-Department of Health and Human Services,
Social Security(off-budget) ... , ..........................
...............
0utII-
22,404
150
-7
Total-Housing programs
Gross lAPPlicable!
Outlays
Receipts
22,404
150
Proprietary receipts from the public .. ......................
............ ...................
Intrabudgetary transactions 5
Department of Housing and Urban Development:
Housing programs:
Public enterprise funds ......
.....................
Credit accounts:
............
Federal housing administration fund
Housing for the elderly or handicapped fund ..........
Other.
...................
Rent supplement payments
...............
Homeownership assistance ..........................
Rental housing assistance ...........................
Rental housing development grants ......................
Low-rent public housing .....
. ......................
Public housing grants
........................
College housing grants
.............
Lower income housing assistance .......................
Section 8 contract renewals
.......................
Other
..............
Prior Fiscal Year to 0111
..
..-7
(
)
..
(
)
..
)
..
(
-984
-1,528
)
50,106
46,919
-984
)
..
50,107
13
8
5
26
14
13
17
12
583
-9
33
5
9
55
485
59
98
-69
33
5
9
55
1,108
375
75
10
18
110
859
118
249
257
75
10
18
110
871
100
255
597
3
1,763
530
7
1,252
404
36
8
11
106
37
85
382
3
1,781
330
4
..
..
)
(
)
..
(
..
(
)
..
)
219
331
2
877
273
4
255
597
3
1,763
530
7
)
(
5,409
(")
-1,528
25,545
219
331
2
877
273
4
(
..
(
)
(
(
)
(
)
..
(
)
4&,919
381
304
36
8
11
106
7
85
382
3
1,781
330
4
2,395
553
1,842
4.877
991
3,886
4,425
982
3,443
250
174
76
255
189
66
259
17
242
214
11
432
25
432
25
361
14
522
634
17
214
11
361
14
475
174
301
711
189
)
('1
42
83
-41
175
264
-89
188
'276
-88
42
83
-41
175
264
-89
188
276
-88
285
67
14
285
53
586
140
29
586
111
559
64
17
559
47
352
14
338
725
29
697
624
17
~
83
4
44
17
2
-44
103
5
44
83
4
-44
..
(
17
2
3,282
867
12
2,415
..
(
)
6,576
)
1,516
..
(
..
)
5,060
(
..
(
)
5,979
616
103
5
43
B3
-43
1,339
4,641
-3
-
Table 5. Outlays of the U.S. Government, November 1993 and Other Periods-Continued
[$ millions]
Classification
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross ·jAPPlicablel Outlays
Outlays
Receipts
Gross IAPPlicablel 0 tl
Outlays
Receipts
u ays
Gross IApplicable I 0 tla s
Outlays
Receipts
u y
Department of the Interior:
Land and minerals management:
Bureau of Land Management:
Management of lands and resources ................. .
Fire protection .......................................... .
Other .................................................... .
Minerals Management Service ........................... .
Office of Surface Mining Reclamation and
Enforcement ............................................. .
46
46
12
40
61
12
40
61
91
19
56
130
91
19
56
130
25
25
49
184
184
Water and science:
Bureau of Reclamation:
Construction program .................................. .
Operation and maintenance ............................ .
Other .................................................... .
Geological Survey ......................................... .
Bureau of Mines .......................................... .
20
18
40
42
14
20
18
39
1
Total-Water and science ............................. .
135
Fish and wildlife and parks:
United States Fish and Wildlife Service ................. .
National Park Service ..................................... .
99
99
27
44
44
126
126
49
57
57
346
346
353
353
50
5
43
37
26
84
24
50
53
71
120
2
42
12
43
37
76
84
29
33
5
50
53
60
120
28
41
94
269
55
215
327
16
311
95
147
95
147
174
250
174
250
181
262
181
262
242
242
423
423
443
443
Bureau of Indian Affairs:
Operation of Indian programs ............................ .
Indian tribal funds ........................................ .
Other ...................................................... .
139
-73
111
234
..
-64
(
)
139
-73
110
130
234
-64
129
197
-28
63
2
197
-28
61
Total-Bureau of Indian Affairs ....................... .
176
(
)
176
300
299
232
2
230
Territorial and international affairs .......................... .
Departmental officeS ........................................ .
Proprietary receipts from the public ........................ .
Intrabudgetary transactions ................................. .
Offsetting governmental receipts ........................... .
11
26
11
111
29
..
(
(
111
29
-280
-16
129
58
133
26
-133
Total-Land and minerals management
Total-Fish and wildlife and parks
Total-Department of the Interior
Department of Justice:
Legal activities .............................................. .
Federal Bureau of Investigation ............................ .
Drug Enforcement Administration ........................... .
Immigration and Naturalization Service ..................... .
Federal Prison System ...................................... .
Office of Justice Programs ................................. .
Other ........................................................ .
Intrabudgetary transactions ................................. .
Offsetting governmental receipts ........................... .
Total-Department of Justice .......................... .
: Department of Labor:
Employment and Training Administration:
Training and employment services ....................... .
Community Service Employment for Older Americans .. .
Federal unemployment benefits and allowances ........ .
State unemployment insurance and employment service
operations ................................................ .
Payments to the unernployment trust fund ............. .
Advances to the unemployment trust fund and other
funds ..................................................... .
..
(
)
..
(
774
173
180
65
124
193
81
132
)
174
9
-1
....
-16
600
1,462
173
180
65
124
184
81
132
363
353
132
226
362
142
153
-1
-1
)
280
)
-34
43
905
1,730
336
36
17
336
36
17
-61
-61
755
755
13
336
19
..
(
322
-5
..
(
)
1,127
1,538
363
353
132
226
343
142
153
835
371
143
242
366
129
119
-5
-1
11
)
..
(
)
1,198
14
835
371
143
242
352
129
119
-5
-57
71
2,128
1,654
2,199
681
65
681
686
65
62
25
25
18
686
62
18
-46
-46
-21
1.300
1,300
250
250
1,714
76
129
58
-322
-5
340
-57
34
948
..)
(
27
1.714
-21
Table 5.
Outlays of the U.S. Government, November 1993 and Other Periods-Continued
[$ millions]
This Month
Classilication
Department 01 Labor:-Continued
Unemployment trust fund
Federal-State unemployment Insurance:
State unemployment benefits
State admlntstratlve expenses
Federal administrative expenses
Veterans employment and training
Repayment of advances from the general fund
Railroad unemployment Insurance
Other
Total-Unemployment trust fund
Other
Total-Employment and Training Administration
Pension Benefit Guaranty Corporation
Employment Standards Administration:
Salaries and expenses
Special benefits
Black lung disability trust fund
Other
Occupattonal Safety and Health Administration
Bureau of Labor Statistics
Other
Proprietary receipts from the public .
Intrabudgetary transactions
Gross
Outlays
IApplicable
I
Receipts
Current Fiscal Year to Date
Outlays
Gross
Outlays
4,734
600
104
19
5,529
568
22
27
5,529
5
3
5
3
10
5
10
5
10
4
10
2,762
2,762
5,472
5,472
6,160
6,160
3
3
12
12
9
3,847
3,847
7,922
7,922
8,465
310
272
327
126
19
-688
50
10
23
18
30
34
-601
99
24
42
30
68
34
-601
99
24
42
30
68
32
-701
99
24
40
45
63
206
19
-688
50
10
23
18
30
8-105
r
0)
47
32
-701
99
24
40
45
63
-1
-1,616
(0 0)
243
92
243
92
408
93
408
93
125
35
17
125
68
26
125
68
26
68
27
68
27
285
285
554
554
595
595
361
54
11
361
54
11
(0 0)
0)
915
64
15
6
915
64
15
6
567
116
18
15
567
116
18
15
-125
-125
-125
-125
-46
-46
586
586
1,429
1,429
1,265
1,265
1,591
10
28
1,591
10
28
3,361
14
59
3,361
14
59
2,944
21
35
2,944
21
35
1,629
1,629
3,434
3,434
3,000
3,000
20
20
40
40
38
3B
156
33
156
32
214
54
2
214
52
180
52
3
50
190
189
269
2
266
232
3
229
International organizations and Conferences
Migration and refugee assistance
International narcotics control
Other
Proprietary receipts from the public
Intrabudgetary transactions
Offsetting governmental receipts
Total-Federal Railroad Admlnistratton
8,465
79
6,578
Total-Administration of Foreign Affairs
Federal Railroad Administration:
Grants to Nattonal Railroad Passenger Corporation
Other
27
6,185
125
35
17
National Highway Traffic Safety Administration
22
-1,616
53
55
Total-Federal Highway Administration
568
-1,760
53
55
Department 01 Transportation:
Federal Highway Administration:
Highway trust fund:
Federal-aid highways
Other
Other programs
-55
(0 0)
(00)
6,130
Total-Department 01 State ..............................
-
OutIap
4,734
600
104
19
2,823
Department 01 State:
Administration of Foreign Affairs:
Salaries and expenses
Acquisition and maintenance of buildings abroad
Payment to Foreign Service retirement and disability
fund
Foreign Service retirement and disability fund
Other
Gross IAPPlicable)
Outlays
Receipts
2,417
315
14
8
-1,760
.............................
Applic.ableI Outla s
Receipts
y
2,417
315
14
8
-797
Total-Department 01 Labor
I
Prior Fiscal Year to 0.11
-797
2,718
-105
r
14
-55
80
6,498
180
Table 5. Outlays of the U.S. Government, November 1993 and Other Periods-Continued
[$ millions]
Classification
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross IApplicable I Outlays
Outlays
Receipts
Gross IAPPlic.able I Outla s
Receipts
y
Outlays
Gross IAPPlicable lOti
Outlays
Receipts
u ays
Department of Transportation:-Continued
Federal Transit Administration:
Formula grants .............................................
Discretionary grants .......................................
Other .......................................................
-52
127
155
-52
127
155
140
240
174
140
240
174
195
216
69
195
216
69
..................
231
231
555
555
481
481
Federal Aviation Administration:
Operations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .
319
319
688
688
427
427
Airport and airway trust fund:
Grants-in-aid for airports ................................
Facilities and equipment ................................
Research, engineering and development ...............
Operations ...............................................
226
207
22
226
207
22
359
286
35
359
286
35
406
232
26
380
406
232
26
380
................
456
456
680
680
1,044
1,044
.......................................................
(0 0)
(" 0)
(" 0)
(0 0)
(" 0)
(" 0)
(" 0)
(" 0)
(. 0)
.................
775
(" 0)
775
1,368
(0 0)
1,368
1,470
(" 0)
1,470
Coast Guard:
Operating expenses .......................................
Acquisition, construction, and improvements .............
Retired pay ................................................
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
205
31
38
13
(0 0)
205
31
38
12
406
43
71
20
406
43
71
19
419
36
76
22
419
36
76
21
.....................................
287
r 0)
287
539
538
553
552
Maritime Administration ......................................
Other .........................................................
Proprietary receipts from the public .........................
Intrabudgetary transactions ..................................
Offsetting governmental receipts ............................
71
80
r *)
29
42
80
91
99
106
80
(0 0)
r 0)
133
99
r 0)
(" 0)
(0 0)
13
13
-1
-3
31
3,252
6,450
47
6,403
2
Total-Federal Transit Administration
Total-Airport and airway trust fund
Other
Total-Federal Aviation Administration
Total-Coast Guard
r 0)
42
(" 0)
(0 0)
41
1
65
79
(" 0)
(0 0)
12
-3
-12
5,957
58
5,899
-116
61
-5
59
2
-6
59
r 0)
...................
3,283
Department of the Treasury:
Departmental offices:
Exchange stabilization fund ...............................
Other .......................................................
-97
29
-98
29
-114
61
34
587
70
25
39
587
46
340
39
587
46
40
Total-Department of Transportation
Financial Management Service:
Salaries and expenses ....................................
Payment to the Resolution Funding Corporation .........
Claims, judgements, and relief acts ......................
Other .......................................................
21
21
19
14
19
14
34
587
70
25
. .. . . . . . . . . . . . . . . .
54
54
717
717
712
712
Federal Financing Bank ......................................
Bureau of Alcohol, Tobacco and Firearms:
Salaries and expenses ....................................
Intemal revenue collections for Puerto Rico ..............
United States Customs Service .............................
Bureau of Engraving and Printing ...........................
United States Mint ...........................................
Bureau of the Public Debt ..................................
-110
-110
-224
-224
-223
-223
27
22
152
33
5
15
27
22
152
33
5
15
50
37
280
32
-6
28
50
37
280
32
-6
28
60
33
300
5
26
35
60
33
300
5
26
35
131
330
85
131
330
85
228
596
145
228
596
145
'253
'638
171
253
638
171
26
2
180
9
26
2
180
9
43
4
575
22
43
4
575
22
35
4
371
30
35
4
371
30
763
763
1,613
1,613
1,502
1,502
Total-Financial Management Service
Internal Revenue Service:
Processing tax returns and assistance ...................
Tax law enforcement ......................................
Information systems .......................................
Payment where earned income credit exceeds liability
for tax ....................................................
Health insurance supplement to earned income credit ..
Refunding internal revenue collections, interest ..........
Other .......................................................
Total-Intemal Revenue Service
........................
15
Table 5. Outlays of the U.S. Government, November 1993 and Other PeriCl
[5 millions]
This Month
Classification
Department of the Treasury:-Continued
United States Secret Service .'
Comptroller of the Currency
Office of Thrift Supervison
Interest on the public debt:
Public issues (accrual basis)
Special issues (cash basis)
Total-Interest on the public debt .................... .
Other ............... .
Proprietary receipts from the public ...... . ................ .
Receipts from off -budget federal entities ................. .
Intrabudgetary transactions ................................. .
Offsetting governmental receipts ........................... .
TOtlil-Department of the Treasury
Department of Veterans AHairs:
Veterans Health Administration:
Medical care ...................................... .
Other .................................................... .
Veterans Benefits Administration:
Public enterprise funds:
Guaranty and indemnity fund
Loan guaranty revolving fund ... .
Other ............................. .
Compensation and pensions ....... . .................... .
.................................. .
Readjustment benefits
Post-Vietnam era veterans education account .......... .
Insurance funds:
National service life .................................... .
United States government life ......................... .
Veterans special life .................................... .
Other ..................................................... .
Total-Veterans Benefits Administration
Construction .................................. . ............. .
Departmental administration .... . . . .. . ..................... .
Proprietary receipts from the public:
National service life ................ . ..................... .
United States government life ........................... .
Other ...................................................... .
Intrabudgetary transactions ................................. .
Totlil-Department of Veterans AHairs
Environmental Protection Agency:
Program and research operations .......................... .
........... .
Abatement. control. and compliance
......... " ........... .
Water infrastructure financing
Hazardous substance superfund
Other ....................... .
Proprietary receipts from the public
Intrabudgetary transactions ............ .
OHsetting governmental receipts
.................. .
Total-Environmental Protection Agency
General Services Administration:
Real property activities
Personal property activities
Information Resources Management Service
Federal property resources activities
General activities
.......... .
Proprietary receipts from the public
Totlil-General Services Administration
Prior Fiscal Vear 10
Current Fiscal Vear to Date
Gross !APPlicable! 0 tl
Outlays
Receipts
u ays
Gross
Outlays
IAPPli~blel
Receipts
Outlays
Gross iAppatMl
Outlays
Receipts
DIll
-
0uIIIya
-
74
49
27
101
65
41
34.080
5.819
34.080
5.819
34.059
6,426
34.059
22.260
39.898
39.898
40.484
40.484
12
274
12
-274
8
-73
6
73
-890
-86
-2.247
142
-2.247
-142
-3.111
86
16
22,336
40,301
429
39,872
99
22
1.229
77
2.326
117
43
45
129
31
1.406
111
8
69
40
28
-24
89
3
1,406
111
8
81
240
69
2.805
184
15
87
87
1
1
2
182
3
18
-11
141
1,689
3.587
)
67
234
118
322
..30
-30
97
-97
39
29
15
39
28
13
74
58
30
16.651
5.609
16.651
5.609
22.260
6
-890
22,352
1.229
8
5
3
2
1.829
67
234
(
..
)
(
3,459
65
137
170
106
41
..
290
..
(
)
12
-7
3,169
6,462
65
137
170
106
41
-12
133
210
323
230
77
13
-542
-13
46
3
18
..
(
489
)
(0 0)
16
506
972
-542
-13
46
3
18
-258
-59
..
(
29
5
34
)
489
•.6250
-3.111
3',708
2.326
74
2.258
104
39
2,258
66
-42
159
6
2,805
184
15
51
341
87
2,702
153
20
182
3
12
-11
129
13
-21
7
6
-21
3,315
3,476
220
3,258
)
118
322
93
269
(")
93
269
60
-60
..
65
~5
)
(' .)
(")
-113
96
-96
-3
420
s,ne
272
..
)
(
-7
-3
5,974
6,197
154
225
315
34
133
210
323
230
77
-34
2
-2
36
936
970
-258
-59
29
5
34
-251
-56
488
..
)
-250
71
88
53
209
66
-21
253
34
2,702
153
20
129
2
2
1
17
154
225
315
209
65
-17
-1
19
-56
-36
3
29
3
29
-313
950
-251
-38
-1
-249
8
-250
381
6
(
6.426
40,090
113
)
57
29
-109
123
81
63
(
101
8
12
109
(
-1
519
3
..
..)
(
(
(' ')
9
(")
('1
(0 0)
-313
Table 5. Outlays of the U.S. Government, November 1993 and Other Periods-Continued
[$ millions]
Classification
National Aeronautics and Space Administration:
Research and development ................................. .
Space flight, control, and data communications ........... .
Construction of facilities .................................... .
Research and program management ...................... ..
Other ........................................................ .
Total-National Aeronautics and Space
Administration ........................................... .
Office of Personnel Management:
Government payment for annuitants, employees health
and life insurance benefits ................................ .
Payment to civil service retirement and disability fund .... .
Civil service retirement and disability fund ................. .
Employees health benefits fund ........................... ..
Employees life insurance fund ............................. ..
Retired employees health benefits fund ................... .
Other ....................................................... ..
Intrabudgetary transactions:
Civil service retirement and disability fund:
General fund contributions ............................ ..
Other .................................................... .
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross IAPPlicablel Outlays
Outlays
Receipts
Gross IAPPlicablel Outla
Receipts
ys
Outlays
Gross IAPPlicablel Outla
Outlays
Receipts
ys
596
451
37
129
596
451
37
129
1,135
836
65
255
1,137
947
81
249
1,137
947
81
249
1
1,135
836
65
255
2
1
2
2
2
1,214
1,214
2,293
2,293
2,415
2,415
327
327
593
593
540
540
5,918
2,471
225
5,918
-26
-298
5,586
2,261
210
2,412
517
1
2,933
1,227
114
1,351
394
2,933
-124
-280
1
1
2,497
523
5,586
-151
-308
(" oJ
(. 'J
1
(. 'J
1
26
26
33
33
16
16
-3
-3
-6
-6
-8
-8
4,625
1,746
2,879
9,235
3,021
6,214
8,606
2,930
5,676
Small Business Administration:
Public enterprise funds:
Business loan fund ...................................... ..
Disaster loan fund ....................................... ..
Other ...................................................... .
Other ........................................................ .
99
55
3
43
28
27
72
28
147
74
82
60
66
1177
13
136
81
(" oJ
2
8
43
76
(" oJ
41
72
13
82
Total-Small Business Administration •••.•.•••••..•.•••
201
55
146
305
221
208
Total-Office of Personnel Management
Other independent agencies:
Action ....................................................... ..
Board for International Broadcasting ....................... .
Corporation for Public Broadcasting ...................... ..
District of Columbia:
Federal payment .......................................... .
Other ..................................................... ..
Equal Employment Opportunity Commission ............... .
Export-Import Bank of the United States .................. .
Federal Communications Commission ...................... .
Federal Deposit Insurance Corporation:
Bank insurance fund ..................................... .
Savings association insurance fund ..................... ..
FSLlC resolution fund .................................... .
Affordable housing and bank enterprise ................. .
Federal Emergency Management Agency:
Public enterprise funds ................................... .
Disaster relief ............................................ ..
Emergency management planning and assistance ...... .
Other ...................................................... .
Federal Trade Commission ................................ ..
Interstate Commerce Commission .......................... .
Legal Services Corporation ................................ ..
National Archives and Records Administration ............. .
National Credit Union Administration:
Credit union share insurance fund ...................... ..
Central liquidity facility .................................... .
Other ...................................................... .
1
-4
19
-4
19
oJ
76
153
17
82
144
160
429
2
(0
5
9
9
34
32
275
32
275
42
319
698
6
698
-9
31
-125
14
3
34
42
319
75
646
-16
18
-15
11
3
7
698
3
31
85
20
348
3
123
530
-182
676
806
-130
2,154
1,825
-1
4
8
6
7
-1
5
3
2
471
463
7
1
548
296
252
42
110
317
50
411
19
118
-68
646
-4
18
60
12
(0
oJ
115
12
(0
oJ
210
1
24
39
95
22
324
5
698
-20
39
-230
17
329
9
4
9
152
317
34
26
15
4
7
7
7
7
30
14
30
14
31
17
31
59
25
59
25
-25
27
20
79
176
16
12
-21
11
7
24
(" oJ
4
11
(0 oJ
17
54
176
16
12
5
7
(0
oJ
34
26
15
(0
oJ
14
20
(" oJ
17
411
19
33
15
33
15
12
15
27
-1
1
(0
oJ
82
27
(0
oJ
-68
Table 5. Outlays of the U.S. Government, November 1993 and Other Period
[$ millions]
Current Fiscal Year to Date
This Month
Classification
Gross IApplicable I Outlays
Outlays
Receipts
Other independent agencies:-Continued
National Endowment for the Arts
National Endowment for the Humanities
National Labor Relations Board
National SCience Foundation
Nuclear Regulatory Commission
Panama Canal Commission
Postal Service
Public enterprise funds (off-budget)
Payment to the Postal Service fund
Railroad Retirement Board:
Federal windfall subsidy
Federal payments to the railroad retirement accounts
Regional rail transportation protective account
Rail Industry pension fund:
Advances from FOASDI fund
OASDI certifications
Administrative expenses
Interest on refunds of taxes
Supplemental annuity pension fund
Other
Intrabudgetary transactions:
Social Security equivalent benefit account
Payments from other funds to the railroad
retirement trust funds
Other
14
15
18
191
41
40
69
40
3,901
94,138
14
15
18
191
-29
("J
-237
8,263
Gross IApPllcabiel
Outlays
Receipts
0utIeya
33
26
29
413
-35
1
32
25
32
375
70
83
-747
61
8.035
69
47
12
49
16
49
16
32
25
32
375
92
81
-22
8,159
-124
2
69
47
12
(* *J
(* *J
r *J
(* *J
(")
-88
89
5
-88
89
5
-179
179
11
-179
179
11
240
240
1
478
2
478
2
-175
175
12
5
475
2
-175
175
12
5
475
2
394
394
779
779
771
771
-12
-12
-16
-16
664
1,316
1,316
1.313
1.313
1,599
24
45
1,890
169
'°389
2,761
3,793
17
59
1,700
173
189
9,999
'°151
-1,162
24
45
273
169
238
7
-6,206
17
59
5n
173
182
16,630
14,575
2,055
20,588
22,168
-1,580
(* *)
(* *)
(* *)
(")
r *)
r *)
Resolution Trust Corporation
Securities and Exchange Commission
Smithsonian Institution
Tennessee Valley Authority
United States Information Agency
Other
388
14
24
907
82
211
1,557
107
-1,169
14
24
168
82
104
8,063
7,424
639
r *)
r *)
Allowances:
7,516
61
116
86
Outla s
y
23
664
....................
33
26
29
413
81
87
IAPPIi~blel
Receipts
DIte
r *)
23
(* *J
(* *)
Total-Railroad Retirement Board
Total-Other independent agencies
Gross
Outlays
Prior Fiscal Year to
739
r *)
r *J
1,617
(* *J
1,123
r *)
....................................................
Undistributed offsetting receipts:
Other interest
Employer share. employee retirement:
Legislative Branch:
United States Tax Court:
Tax court judges survivors annuity fund
The Judiciary
Judicial survivors annuity fund
Department of Defense-Civil:
Military retirement fund
........................
Department of Health and Human Services, except
SOCial Security:
Federal hospital insurance trust fund:
Federal employer contributions
Postal Service employer contributions
Payments for military service credits
Department of Health and Human Services. Social
Security (off-budget):
Federal old-age and survivors insurance trust fund:
Federal employer contributions
Payments for military service credits
Federal disability insurance trust fund:
Federal employer contributions
Payments for military service credits
Department of State
Foreign Service retirement and disability fund
Office of Personnel Management:
CIvil service retirement and disability fund
Independent agenCies
Court of veterans appeals retirement fund
Total-Employer share. employee retirement
r *J
r *J
r *)
r *J
(* *)
("J
-1,112
-1,112
-2,193
-2,193
-2.210
-2.210
-159
-37
-159
-37
-317
-73
-317
-73
-302
-76
-302
-76
-425
-425
-850
-850
-804
-804
-46
-46
-92
-92
-86
-86
-8
-8
-17
-17
-18
-18
-662
-662
-1,478
-1,478
-1,513
-1.513
2.449
2,449
-5,021
-5.021
-5.009
-5.009
18
Table 5. Outlays of the U.S. Government, November 1993 and Other Periods-Continued
[$ millions]
Classification
Undistributed offsetting receipts:-Continued
Interest received by trust funds:
The Judiciary:
Judicial survivors annuity fund
Department of Defense-Civil:
Corps of Engineers
............ .
Military retirement fund .....
. ............. .
. ............ .
Education benefits fund ...
Soldiers' and airmen's home permanent fund ........ .
Other .................................................... .
Department of Health and Human Services, except
Social Security:
Federal hospital insurance trust fund ............. .
Federal supplementary medical insurance trust fund
Department of Health and Human Services, Social
Security (off-budget):
Federal Old-age and survivors insurance trust fund
Federal disability insurance trust fund ................. .
Department of Labor:
Unemployment trust fund
Department of State:
Foreign Service retirement and disability fund ..
Department of Transportation:
Highway trust fund .
Airport and airway trust fund ..
Oil spill liability trust fund ......... .
Department of Veterans Affairs:
National service life insurance fund ................... .
United States government life Insurance Fund ....... .
Environmental Protection Agency
National Aeronautics and Space Administration
Office of Personnel Management:
Civil service retirement and disability fund ..
Independent agencies:
Railroad Retirement Board .................... .
Other ............................................... .
Other..............
. .......... .
Total-Interest received by trust funds ........ .
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross IAPPlicable I Outlays
Outlays
Receipts
Gross IAPPlicablel 0 tl
Receipts
u ays
Outlays
Gross IAPPlicablel 0 tl
Outlays
Receipts
u ays
-4
..
(
-4
-4
-4
-4,835
-17
-1
-1
-5,004
-17
-4
-1
-5,004
-17
-4
-4,713
-18
-6
-4,713
-18
-6
(
(
(
..
)
(
-4,835
-17
..-1
(
-4
..
)
)
..
..)
)
..
(
-4
..
(
)
)
)
-26
-15
-26
-15
-34
-29
-34
-29
-31
-30
-31
-30
-56
-17
-56
-17
-99
-32
-99
-32
-110
-35
-110
-35
-7
-7
-18
-18
-66
..
-66
(' ')
(
)
-2
-2
-18
-18
-2
-2
-37
-2
-2
-37
-2
-2
-2
-2
....-2
..
(
(
(
....
..
(
(
)
)
(
)
(
(
(
-4
)
)
)
(
(
(
..)
(
)
-16
-7
'-2
....
..
-4
....-2
..
)
)
)
..
(
-16
-7
-2
..-2)
....-2
..
....
)
)
)
(
(
(
(
(
(
)
)
)
)
)
-59
-59
-62
-62
-62
-62
-115
-115
-2
6
-151
-3
-28
-151
-3
-28
-281
-3
'-8
-281
-3
-8
-5,173
-5,533
-5,533
-5,395
-5,395
-2
6
-5,173
Rents and royalties on the outer continental shelf lands ..
Sale of major assets
....................... .
461
-461
483
-483
455
-455
Total-Undistributed offsetting receipts ............... .
-7,622
461
-8,084
-10,553
483
-11,036
-10,405
455
-10,859
Total outlays .................•...............................
136,539
15,050
121,488
275,338
29,760
245,578
269,751
36,784
232,967
Total on-budget
107,637
10,912
96,724
218,789
21,497
197,292
215,832
28,625
187,207
Total off-budget
28,902
4,138
24,764
56,550
8,263
48,286
53,919
8,159
45,760
-38,381
-83,803
-81,518
Total on-budget
-38,024
-82,728
-80,948
Total off-budget
-357
-1,075
-570
Total surplus (+) or deficit ...................•............
MEMORANDUM
Receipts offset against outlays
[$ millions]
Current
Fiscal Year
to Date
Proprietary receipts ..................................................... .
Receipts from off-budget federal entities ............................. .
Intrabudgetary transactions
................................... .
Governmental receipts ............................................... .
Total receipts offset against outlays .................... .
Comparable Period
Prior Fiscal Year
6,932
6,684
35,088
323
42,343
34,944
303
41,931
.Outlays for the Department of Housing and Urban Development have been decreased and
outlays for the Department of the Treasury have been correspondingly increased In November
1992 by $3 million due to the reclassification of the account, "Office of Federal Housing Enterprise
Oversight" .
'Includes a reclassification in FY 1993, from a governmental receipt to an offsetting
governmental receipt, of $14 million and $13 million for the Department of Justice. Drug
Enforcement Administration and Immigration and Naturalization Service (INS), respectively: and $2
million in FY 1994 for INS.
.Includes an increase in net outlays of $146 million for amortization of zero coupon bonds.
"The Postal Service accounting year is composed of thirteen 28-day accounting periods. To
conform with the MTS calendar·month reporting basis utilized by all other Federal agencies. the
MTS reflects USPS results through 11/12 and estimates for $1,089 million through 11/30.
IOOutlays in October 1993 have been increased by $79 million for the U.S. E~richment
Corporation to report outlays not previously reported.
'Outlays have been decreased In September 1993 by $1 million, $3 million, $34 million, $152
million, and $63 million for additional reporting for the OPIC, GNMA, IRS, SBA, and undistributed
offsetting receipts, respectively.
21ncludes a reclassification from a budgetary status to a non-budgetary status of -$31 million
for FY 1993 for the "Foreign Assistance Programs, Debt Reduction Financing Account".
'Outlays have been increased in September 1993 by $9 million, $7 million, $3 million and $1
million for additional reporting for the Army, Indian Health Service, Housing Programs, and FMS.
'Outlays for the Department of Education have been decreased and outlays for the
Department of the Treasury have been correspondingly increased in September 1993 by $124
million due to the reclassification of the account, "Federal Family Education Loan Program Downward Re-estimate of Subsidies".
51ncludes FICA and SEC A tax credits. non-contributary military service credits, special benefits
for the aged, and credit for unnegotiated OASI benefit checks.
19
,Perioda
Table 6, Means of Financing the Deficit or Disposition of Surplus by the U,S,
[$ millions]
Assets and Uabilities
Directly Related to
Budget orr-budget Activity
Net Transactions
(-) denotes net reduction of either
liability or asset accounts
Account Balances
Current Fiscal Year
Beginning of
Fiscal Year to Date
This Month
This Year
1
Prior Year
This Year
I
-
Clott 01
Thls~
This Month
..
Liability accounts:
BorrOWing from the public:
PubliC debt securities, issued under general Financing authorities:
Obligations of the United States, issued by:
United States Treasury ...
. ................................ .
.............................. .
Federal Financing Bank
71,024
82,046
68,206
4,396,489
15,000
4,407,511
15,000
4,478,535
15,000
71,024
82,046
68,206
4,411,489
4,422,511
4,493,535
Plus premium on public debt securities ..................... ..
Less discount on public debt securities ...................... .
56
-2,372
49
-2,828
-10
-25
1,373
86,397
1,365
85,942
1,422
83,570
Total public debt securities net of Premium and
discount
................................................. ..
73,452
84,923
68,221
4,326,466
4,337,936
4,411,389
Total, public debt securities ..................................... .
Agency securities, issued under special financing authorities (see
Schedule B. for other Agency borrowing, see Schedule C) ......... .
257
304
428
24,682
24,730
24,987
Total federal securities ............................................... .
73,710
85,227
68,649
4,351,149
4,362,666
4,436,376
Deduct:
Federal securities held as investments of government accounts
(see Schedule D) ............................................... .
Less discount on federal securities held as investments of
government accounts ........................................ .
-127
7,115
8,208
1,116,740
1,123,983
1,123,856
-2,808
-2,829
-25
12,709
12,688
9,880
Net federal securities held as investments of government
accounts .................................................... .
2,681
9,944
8,233
1,104,032
1,111,295
1,113,976
Total borrowing from the public ........................ ..
71,028
75,283
60,416
3,247,117
3,251,371
3,322,400
Accrued interest payable to the public .................................. ..
Allocations of special drawing rights .................................... ..
Deposit funds ............................................................. .
Miscellaneous liability accounts (includes checks Outstanding etc.) ..... .
-19,036
-44
1,815
1,430
-9,791
-169
2,866
-3,929
-9,921
-460
-589
-2,923
43,819
6,950
5,975
2,928
53,064
6,825
7,026
-2,431
34,028
6,780
8,841
-1,001
Total liability accounts ................................................... .
55,194
64,260
46,524
3,306,788
3,315,854
3,371,041
302
13,149
-10,955
-9,240
-17,601
-14,473
17,289
35,217
6,032
12.828
25,Sn
13,451
-20,196
-32,074
52,506
18,860
32,310
54
-112
-615
9,203
-8,018
9,038
-8.018
9,091
-8,018
54
-112
-615
1,185
1,020
1,073
-240
-2
5
-916
21
-2
-1,682
-380
12
31,762
5,864
-25,514
-98
31.762
5,188
-25,491
-105
31,762
4,948
-25,493
-100
162
620
1,064
90
547
710
-74
-277
-987
12,103
Asset accounts (deduct)
Cash and monetary assets:
U.S. Treasury operating cash: 1
Federal Reserve account ........ .
Tax and loan note accounts .... .
Balance
Special drawing rights:
Total holdings
............................................ .
SDR certificates issued to Federal Reserve banks ................. .
Balance ...
Reserve position on the U.S. quota in the IMF:
U.S. subSCription to International Monetary Fund:
Direct quota payments ............................................. .
Maintenance of value adjustments ................................ .
Letter of credit issued to IMF ...................................... ..
Dollar deposits with the IMF ......................................... .
Receivable/Payable (-) for interim maintenance of value
adjustments ............ . ............................................ .
Balance
Loans to International Monetary Fund ..
Other cash and monetary assets .
Total cash and monetary assets
11,901
11,827
(0 0)
( )
..
206
2,884
-104
22,414
25,091
(',
25,298
13,636
17,700
-33,780
88,208
56,872
70,508
-693
280
3,653
-873
645
-1,501
-262
692
-1,594
-6,320
6,862
-636
-6,500
7.227
-5,790
-7,193
7,507
-2,137
88,114
51,810
88,1'5
+3,264,045
3,302,313
51
114
+3,264,096
+3,302.~
Net activity, guaranteed loan financing
Net activity, direct loan financing ..... .
Miscellaneous asset accounts
Total asset accounts ........... , ... " .... , .. , ........................... .
16,876
19,429
-34,944
Excess of liabilities (+) or assets (-) ................................... .
+38,318
+83,689
+81,468
63
114
49
+38,381
+83,803
+81,518
Transactions not applied to current year's surplus or deficit (see
Schedule a for Details) .
. ................. .
Total budget and off-budget federal entities (financing of defICit (+)
or disposition of surplus (-)) .......................................... ..
6,334
'Major sources of InformatlOl1 used to determine Treasury's operating cash income include the
Dally Balance Wires from FederaJ Reserve Banks, reporting from the Bureau of Public Debt.
eleCtronIC transfers through the Treasury FinanaaJ Communication System and reconciling wires
from Intemal Revenue Centers. OperatIng caSh is presented on a modified caSh basis: deposits
are reflected as received and WIthdrawals are reflected as processed.
+3,218,674
+3,218,674
... No Transactions.
(' 'J Less than $500,000
Note: Details may not add to totals due to rounding
20
Table 6. Schedule A-Analysis of Change in Excess of Liabilities of the U.S. Government, November 1993 and
Other Periods
[$ millions]
Fiscal Year to Date
Classification
This Month
I
This Year
...
Prior Year
3,264,257
3,218,965
2,964,066
-212
-291
101
(' ')
..)
(
Total-off-budget (Table 2)
3,264,045
3,218,674
38,381
83,803
38,381
83,803
38,024
82,728
81,518
357
1,075
Transactions not applied to current year"s surplus or deficit:
Seigniorage ............................................................ .
-63
-114
-49
Total-transactions not applied to current year's Surplus or
deficit .............................................................. ..
-63
-114
-49
Excess of liabilities close of period
-----------------------------
======================
.................................. .
3,302,363
3,302,363
3,045,809
Table 6. Schedule B-Securities isued by Federal Agencies Under Special Financing Authorities, November 1993 and
Other Periods
[$ millions]
Net Transactions
(-) denotes net reduction of either
Liability accounts
Account Balances
Current Fiscal Year
Classification
Fiscal Year to Date
This Month
I Prior Year
This Year
Agency securities, issued under special financing authorities:
Obligations of the United States, issued by:
Export-Import Bank of the United States ............................... .
Federal Deposit Insurance Corporation:
Bank insurance fund .................................................. .
FSLlC resolution fund ................................................ ..
Obligations guaranteed by the United States, issued by:
Department of Defense:
Family housing mortgages ............................................ .
Department of Housing and Urban Development:
Federal Housing Administration ....................................... .
Department of the Interior:
Bureau of Land Management ......................................... .
Department of Transportation:
Coast Guard:
Family housing mortgages .......................................... .
Obligations not guaranteed by the United States, issued by:
Legislative Branch:
Architect of the Capitol ............................................... .
Independent agencies:
Farm Credit System Financial Assistance Corporation ............... .
National Archives and Records Administration ....................... .
Tennessee Valley Authority ........................................... .
Beginning of
I This Month
This Year
..
(
..
(
)
12
..
(
)
41
3
Total, agency securities
... No Transactions.
(' 'J Less than $500,000.
Note: Details may not add to totals due to rounding.
21
..
(
)
..
(
)
93
943
93
943
93
943
)
7
7
6
43
213
243
255
13
13
13
..
(
)
Close of
This month
..
..
r ')
(
2
176
178
179
1,261
302
21,691
1,261
302
21,935
24,730
24,987
245
261
383
1,261
302
21,675
257
304
428
24,682
)
(
)
Table 6. Schedule C (Memorandum)-Federal Agency Borrowing Financed TI
November 1993 and Other Periods
ties,
[$ millions]
Account Balances
Current Fiscal Year
Transactions
Classification
Fiscal Year to Date
This Month
I
This Year
Borrowing from the Treasury:
Funds Appropriated to the President
International Security Assistance:
Guaranty reserve fund
Agency for International Development
Housing and other credit guaranty programs
Overseas Private Investment Corporation
Department of Agriculture:
Foreign assistance programs
Commodity Credit Corporation
Farmers Home Administration:
Agriculture credit Insurance fund
Self-help housing land development fund
Rural housing Insurance fund
Rural Development Administration:
Rural development Insurance fund
Rural development loan fund
Federal Crop Insurance Corporation:
Federal crop Insurance corporation fund
Rural Electrification Administration:
Rural communication development fund
Rural electrification and telephone revolving fund
Rural Telephone Bank
Department of Commerce
Federal Ship financing fund, NOAA
Department of Education
Guaranteed student loans
College housing and academic facilities fund
College housing loans
Department of Energy:
Isotope production and distribution fund
Bonneville power administration fund
Department of Housing and Urban Development
Housing programs
Housing for the elderly and handicapped
PubliC and Indian housing
Low-rent public housing
Department of the Interior'
Bureau of Reclamation Loans
Bureau of Mines, Helium Fund
Bureau of Indian Affairs:
Revolving funds for loans
Department of Justice:
Federal prison industries, incorporated
Department of Transportation:
Federal Railroad Administration:
Railroad rehabilitation and improvement finanCing funds
Settlements of railroad litigation
Amtrak COrridor Improvement loans
Regional rail reorganization program
Federal AViation Administration'
Aircraft purchase loan guarantee program
Department of the Treasury
Federal Financing Bank revolving fund
Department of Veterans Affairs
Loan guaranty revolving fund
Guaranty and Indemnity fund
Direct loan revolving fund
Vocational rehabilitation revolving fund
EnVIronmental Protection Agency'
Abatement, control. and compliance loan program
Small BUSiness Administration:
BUSiness loan and revolVing fund
-16,550
Beginning of
This Year
Prior Year
1
This Month
348
348
348
125
8
125
8
125
8
-15,227
13
-7,116
193
24,745
193
26,068
193
9,518
-2,385
54
5,771
1
2,910
3,386
1
2,910
3,386
1
2,910
1,680
5
1,670
5
1,670
5
113
113
113
25
8,099
802
55
8,099
802
55
8,379
2,058
154
460
2,058
168
460
2,058
168
460
-83
-4
-10
280
32
Close of
This monlll
31
280
32
20
r 0)
834
-2
13
58
200
13
2,332
13
2,390
13
2,390
-475
185
8,959
8,484
8,484
110
110
110
5
252
5
252
5
252
17
17
17
20
20
20
8
-39
2
39
8
-39
2
39
8
-39
2
39
..
)
('1
2
..
(
)
8
..)
..)
..
(
(
-858
-2,839
-7,843
114,329
112,348
111,490
-678
8
860
83
1
2
860
83
1
2
860
83
12
12
12
3,203
3,203
3,203
..
..
(
(
..)
(
22
..
(
..
(
)
)
)
)
(
)
(
Table 6. Schedule C (Memorandum)-Federal Agency Borrowing Financed Through the Issue of Public Debt Securities,
November 1993 and Other Periods-Continued
[$ millions]
Account Balances
Current Fiscal Year
Transactions
Classification
Beginning of
Fiscal Year to Date
This Month
This Year
Borrowing for the Treasury:-Contmued
Other independent agencies:
Export-Import Bank of the United States ............................. .
Federal Emergency Management Agency:
National insurance development fund ................................ .
Pennsylvania Avenue Development Corporation:
Land aquisition and development fund .............................. .
Railroad Retirement Board:
Railroad retirement account .......................................... .
Social Security equivalent benefit account .......................... .
Smithsonian Institution:
John F. Kennedy Center parking facilities .......................... .
Tennessee Valley Authority ............................................. .
Total agency borrowing from the Treasury
financed through public debt securities issued
813
227
458
I Prior Year
This Year
I This Month
Close of
This month
9
386
1,199
1,199
5
42
42
42
(oo)
76
76
76
482
2,128
2,690
2,128
2,921
2,128
3,148
20
150
20
150
20
150
-16,869
-19,250
-14,738
183,196
180,815
163,946
-19
-25
-27
4,083
4,077
4,058
-92
29
22,252
22,160
22,160
8,908
26,036
3,675
8,908
26,036
3,675
8,908
26,036
3,675
1,624
-96
1,624
-96
1,624
-96
4,790
4,760
4,760
85
85
85
1,801
131
1,801
123
1,747
118
23
23
23
17
17
Borrowing from the Federal Financing Bank:
Funds Appropriated to the President:
Foreign military sales ................................................... .
Department of Agriculture:
Rural Electrification Administration ..................................... .
Farmers Home Administration:
Agriculture credit insurance fund .................................... .
Rural housing insurance fund ........................................ .
Rural development insurance fund ................................... .
Department of Defense:
Department of the Navy ................................................ .
Defense agencies ....................................................... .
Department of Education:
Student Loan Marketing Association ................................... .
Department of Health and Human Services,
Except Social Security:
Medical facilities guarantee and loan fund ............................. .
Department of Housing and Urban Development:
Low rent housing loans and other expenses ......................... .
Community Development Grants ....................................... .
Department of Interior:
Territorial and international affairs ...................................... .
Department of Transportation:
Federal Railroad Administration '" ..................................... .
Department of the Treasury:
Financial Management Service ......................................... .
General Services Administration:
Federal buildings fund .................................................. .
Small Business Administration:
Business loan and investment fund .................................... .
Independent agencies:
Export-Import Bank of the United States ............................. .
Pennsylvania Avenue Development Corporation ....................... .
Postal Service ........................................................... .
Resolution Trust Corporation ........................................... .
Tennessee Valley Authority ............................................. .
Washington Metropolitan Transit Authority ............................ .
-30
-54
-13
-54
-5
-52
-5
(' ')
(oo)
17
-30
-21
30
17
52
121
1,436
1,471
1,488
-8
-15
-26
670
663
655
9
16
-797
-2,646
10
537
-8,037
-342
5,795
150
9,732
31,688
6,325
177
5,795
157
9,732
29,839
6,325
177
5,795
166
9,732
29,042
6,325
177
-858
-2,839
-7,843
129,332
127,351
126,493
(oo)
Total borrowing from the Federal Financing Bank ............... .
-30
.. No Transactions.
(0 OJ Less than $500,000
Note: Details may not add to totals due to rounding
Note: This lable includes lending by the Federal Financing Bank accomplished by the purchase
of agency financial assels, by the acquisition of agency debt securities, and by direct loans on
behalf of an agency. The Federal Financing Bank borrows from Treasury and issues its own
securities and in tum may loan these funds to agencies in lieu of agencies borrowing directly
through Treasury or issuing their own securities.
23
Table 6,
Schedule D-Investments of Federal Government Accounts in Fed
Other Periods
[$ millions]
Securities Held as Investments
Current Fiscal Year
Net Purchases or Sales (-)
Classification
T
Federal funds:
.............
Department of Agnculture
...........
Department of Commerce
Department of Defense-Military:
.............
Defense cooperation account
..............
Department of Energy
Department of Housing and Urban Development:
Housing programs:
Federal housing administration fund:
........... .....................
Public debt securities
Government National Mortgage Association:
Management and liquidating functions fund:
..................
Public debt securities
...................
Agency securities
Guarantees of mortgage-backed securities:
..................
Public debt securities ..
.....................
Agency securities
...................
Other
Department of the Interior:
....................
Public debt securities
..............
............
Department of Labor
..................
Department of Transportation
....................
Department of the Treasury
Department of Veterans Affairs:
.......................
Canteen service revolving fund
.......................
Veterans reopened insurance fund
. ..............
Servicemen's group life insurance fund ..
Independent agencies:
...............
Export-Import Bank of the United States
Federal Deposit Insurance Corporation:
. ..................
Bank insurance fund ...............
......................
Savings association insurance fund .
FSLlC resolution fund:
....................
Public debt securities
Federal Emergency Management Agency:
......................
National flood insurance fund
....................
National Credit Union Administration
. .....................
Postal Service ..
......................
Tennessee Valley Authority .....
............ ...................
Other
....................
Other
Total Federal funds
. ............
........... ............
.............................................
Trust funds:
Legislative Branch:
Library of Congress
United States Tax Court
Other
The Judiciary:
Judicial retirement funds
Department of Agriculture
Department of Commerce
Department of Defense-Military:
Voluntary separation incentive fund
Other
Department of Defense-Civil:
MIlitary retirement fund
Other
-1
-1
2
-3
..)
Close of
This rnontII
I This Month
10
3
8
(' ')
(
(
174
165
-830
55
9
4,081
9
4,071
4,246
50
81
-121
5,214
5,245
5,295
..
(
9
20
8
20
20
3,238
1
213
3,312
1
2,68S
13,391
(
)
)
..
..
)
9
8
22
3
3,221
1
191
38
-3,142
9
-60
181
-3,192
25
-60
223
-73
37
479
2,508
16,590
881
5,773
2,651
16,540
897
5,773
-3
-5
-2
-3
-31
38
518
150
38
516
150
51~
90
73
58
(
)
213
90E
5,71~
31
150
43
161
249
76
194
237
205
7
197
-277
-2
4,325
1,283
4,316
1,278
4,522
1,285
42
602
173
828
1,389
1,431
18
363
15
-4
-257
-71
-12
1,065
-50
1
-412
12
67
719
-296
-10
62
71
2,764
3,027
3,452
853
2,715
2,734
3,729
3,387
858
2,561
2,753
4,092
3,403
B54
2,303
-2,430
-1,211
492
)
58,589
21
59,808
21
57,378
21
492
58,610
59,829
57,399
..
)
4
27
6
4
27
6
5
26
..3)
212
5
212
5
229
..
(
-2,430
...........
...........
(
(
)
)
(
(
17
179
16
179
(
(
(
)
)
)
..
............
)
-65
3,513
24
24
-1,211
..
..
..
(
(
(
......................
........................
...........................
. . . . . . . . . ..
..
This Year
Prior Year
This Year
Total publiC debt securities ....
Total agency securities
Beginning of
Fiscal Year to Date
This Month
..4
..
..
3
..)
..
184
)
1'1
844
151
864
155
799
96,690
1,213
107,513
1,210
111,026
1,234
)
(
-45
5
14,336
21
14,013
131
156
Table 6. Schedule D-Investments of Federal Government Accounts in Federal Securities, November 1993 and
Other Periods-Continued
[$ millions]
Securities Held as Investments
Current Fiscal Year
Net Purchases or Sales (-)
Classification
Beginning of
Fiscal Year to Date
This Month
This Year·
1 Prior Year
This Year
I This Month
Close of
This month
Trust Funds-Continued
Department of Health and Human Services. except Social Security:
Federal hospital insurance trust fund:
Public debt securities ................................................. .
Federal supplementary medical insurance trust fund .................. .
Other .................................................................... .
Department of Health and Human Services. Social Security:
Federal old-age and survivors insurance trust fund:
Public debt securities ................................................. .
Federal disability insurance trust fund ................................ .
Department of the Interior:
Public debt securities .................................................. ..
Department of Justice .................................................... .
Department of Labor:
Unemployment trust fund ............................................... .
Other .................................................................. ..
Department of State:
Foreign Service retirement and disability fund ......................... .
Other .................................................................... .
Department of Transportation:
Highway trust fund .................................................... ..
Airport and airway trust fund .......................................... .
Other .................................................................... .
Department of the Treasury .............................................. .
Department of Veterans Affairs:
General post fund. national homes .................................... .
National service life insurance:
Public debt securities ................................................. .
United States govemment life Insurance Fund ........................ .
Veterans special life insurance fund ................................... .
Environmental Protection Agency ........................................ ..
National Aeronautics and Space Administration ......................... .
Office of Personnel Management:
Civil service retirement and disability fund:
Public debt securities ....................... . ....................... ..
Employees health benefits fund ....................................... ..
Employees life insurance fund ........................................ ..
Retired employees health benefits fund .............................. ..
Independent agencies:
Harry S. Truman memorial scholarship trust fund .................... .
Japan-United States Friendship Commission .......................... .
Railroad Retirement Board ............................................. .
Other..........................................
. ................ ..
-795
113
12
-1.770
715
22
-654
-163
20
126.078
23.268
659
125.104
23.870
670
124.309
23.983
682
57
-186
-512
-820
178
-839
355.510
10.237
354.940
9.602
354.997
9,416
116
106
106
-8
184
174
106
290
106
930
-10
253
-17
-1.513
-17
36.607
53
35.930
45
36.860
35
96
-38
14
-38
-54
6.662
38
6.579
38
6.675
-333
68
20
-39
-1.114
341
15
-62
-338
-225
37
-56
22.004
12.672
1.675
209
21.224
12.944
1.671
186
20.891
13.012
1.690
147
(* *J
(* *J
39
39
38
-62
-1
-6
-18
-122
-3
-12
-14
-59
-2
-6
46
(* *)
(* *)
(* *)
11.666
125
1,462
5,477
16
11.606
123
1.456
5,481
16
11.544
122
1,450
5,463
16
-1.709
124
285
-3.566
77
310
-3.168
111
308
(* *J
311.705
6.794
13.688
1
309.848
6.747
13.713
1
308.139
6.871
13.998
1
(* *J
-1
-102
3
1
1
-36
3
52
17
11.961
125
52
16
11.849
128
52
16
11.859
128
2.303
8.326
7.716
1.058.131
1.064.153
1.066,456
Total trust funds ................................................ .
2,303
8,326
7,716
1,058,131
1,064,153
1,066,456
Grand total ................................................................. .
-127
7,115
8,208
1,116,740
1,123,983
1,123,856
(* *J
(* *)
10
Total public debt securities ............... .
Note: Investments are in public debt securities unless otherwise noted .
Note: Details may nol add 10 tOlals due 10 rounding.
... No Transactions
(. 'J Less than $500.000.
25
(* *J
Table 7. Receipts and Outlays of the U.S. Government by Month, Fiscal Year 1994
[$ millions]
Oct.
Classific:lltion
Nov.
Dec.
Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Fiscal
Year
To
Date
Receipts:
IndIvidual Income taxes
Cofporation Income taxes
Social insurance taxes and
contnbutions:
Employment taxes and
......
contributions ..
Unemployment insurance ..... ..
Other retirement contributions .... ...
Excise taxes ..... ....... ..... ... ....
. . . . .. .
Estate and gift taxes
...... ...
Customs duties . .....
Miscellaneous receipts . ... .........
...........
........................
Total-Receipts this year
(On-budget)
(Off-budget) ........................
-
Com-
PlI'IbII
PsrtocI
PrIor
F.Y.
-
37,680
2,158
37.634
2,208
75,314
4,366
70,379
29,440
1,046
343
3.597
990
1.708
1,706
31.525
2.773
385
4,808
1,305
1.688
781
60,965
3.819
728
8,405
2,296
3.396
2.487
sa,399
78,668
83,107
161,775
......
55,864
58,700
114,564
22,804
24,407
47,211
......
......
3,575
3,~
792
7,752
1.981
3,169
2.098
Total-Receipts prior year
76,824
74.625
......
151.449
(On budget)
55,048
51,211
......
106.259
...........
21,776
23,414
." ...
45.190
Legislative Branch ................ ......
The Judiciary ..... .................. ...
Executive Office of the President ......
Funds Appropriated to the President:
International Security Assistance .....
International Development
Assistance ........................ ..
Other ............................ ...
Department of Agriculture:
Foreign assistance, special export
programs and Commodity Credit
Corporation ........... .............
Other ... .......................... ...
Department of Commerce .......... ..
378
158
20
206
219
18
584
377
37
298
46
3,302
397
3.699
3,721
557
133
351
348
908
481
889
900
3,993
264
2,263
4.886
277
3,162
8,879
541
8,745
575
6,634
6,413
5,131
5,357
7,049
5,132
11,991
13,461
10,263
12,823
13,791
11,025
2,987
404
226
2,875
388
208
5,861
792
434
5,754
1,568
816
2,384
1,014
(")
(")
(")
-217
-27
-244
269
Total Military .. ........ .......
23,147
21,796
44,943
45,901
....
. ......
Civil
Department of Education . .... ....
.....
Department of Energy .'
Department of Health and Human
Services, except Social Security:
Public Health Service ... ....
Health Care Financing Administration:
Grants to States for Medicaid
Federal hospital ins. trust fund
Federal supp. mad. ins. trust
fund
2,550
1.805
1,710
2,515
3.356
1,723
5,064
5,161
3,433
4,999
3,105
1,467
1,700
3,166
2,914
7,394
7,432
6,626
8.006
14,020
15,438
11,807
13,854
4,650
3,783
2,970
4,838
3.801
2,061
9,487
7,584
5,031
8,624
6,517
2,797
-5,060
2,723
-5,060
5,520
-10,120
4,310
-8,540
22,546
2,992
-977
22,554
2,998
-7
45,100
5,990
-984
43,038
(Off budget) ....
Outlays
Department of Defense:
Military:
Military personnel .............. ....
Operation and maintenance ........
Procurernent .... .............. ....
Research, development, test, and
evaluation ...... ..................
Military construction ..... ..........
Family housing ......... ...........
Revolving and managernent
funds ..... ........................
....
Defense cooperation account
..... ..........
Other
'"
Other
Social Security Administration
Administration for children and
families .
Other
Department of Health and Human
Services, Social Security:
Federal oId-age and survivors ins.
trust fund
Federal disability ins. trust fund
Other
26
414
242
3,930
820
437
-34
5,~
5,076
5,~
-1,528
Table 7. Receipts and Outlays of the U.S. Government by Month, Fiscal Year 1994-Continued
[$ millions]
Classification
Oct.
Dec.
Nov.
Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Fiscal
Year
To
Date
Comparable
Period
Prior
F.Y.
Outlays-Continued
Department of Housing and Urban
Development ....................... ...
Department of the Interior ..............
Department of Justice ...................
Department of Labor:
Unemployment trust fund .............
Other ..................................
Department of State ....................
Department of Transportation:
Highway trust fund ...................
Other ..................................
Department of the Treasury:
Interest on the public debt ...........
Other ..................................
Department of Veterans Affairs:
Compensation and pensions ..........
National service life ...................
United States government life ........
Other ..................................
Environmental Protection Agency .......
General Services Administration .........
National Aeronautics and Space
Administration ..........................
Office of Personnel Management .......
Small Business Administration ..........
Independent agencies:
Fed. Deposit Ins. Corp.:
Bank insurance funds ..............
Savings association fund ...........
FSLlC resolution fund ..............
Postal Service:
Public enterprise funds (offbudget) ............................
Payment to the Postal Service
fund ...............................
Resolution Trust Corporation .........
Tennessee Valley AuthOrity ..........
Other independent agencies ..........
Undistributed offsetting receipts:
Employer share, employee
retirement ............................
Interest received by trust funds ......
Rents and royalties on outer
continental shelf lands ...............
Other .............. ...................
2,645
527
749
2,415
600
905
5,060
1,127
1,654
4,641
1,198
2,128
2,710
652
843
2,762
61
586
5,472
713
1,429
6,160
338
1,265
1,774
1,377
1,601
1,651
3,375
3,028
2,965
2,933
17,638
-102
22,260
75
39,898
-27
40,484
-775
1,400
66
2
1,338
430
239
1,406
57
1
1,705
506
-489
2,805
123
3
3,043
936
-250
2,702
64
2
3,010
950
-313
1,079
3,335
14
1,214
2,879
146
2,293
6,214
160
2,415
5,676
208
52
-5
(")
-182
4
8
-130
-1
7
329
2
252
-509
-237
-747
-124
61
7
106
1,705
. .....
-1,169
168
2,048
61
-1,162
273
3,753
69
-6,206
577
3,521
-2,572
-359
-2,449
-5,173
-5,021
-5,533
-5,009
-5,395
-21
-461
..
-483
-455
(")
(
)
(. ')
(' .)
124,090 121,488
245,578
100,568
96,724
197,292
23,523
24,764
48,286
-45,422 -38,381
-83,803
-44,704 -38,024
-82,728
......
......
......
......
......
......
Totals this year:
Total outlays
(On-budget)
.........................
........................
(Off-budget) .. , .....................
.....
........................
(Off-budget) ........................
Total borrowing from the public ....
Total-surplus (+) or deficit (-)
(On-budget)
Total-all/lays prior year
......
(On-budget)
...... ... ..
(Offbudget)
... ...... . ....
....
-719
-357
-1,075
4,255
71,028
75,283
60,416
125,616 107,351
232,967
103,775
83,432
187,207
21,841
23,919
45,760
Total-surplus (+) or deficit (-) prior
year.
. ....
-48,792 -32,726
-81,518
.... ..
-48,727 -32,221
-80,948
(On-budget)
(Off-budget)
.......
....
..... ..........
-65
-505
-570
... No transactions.
(' 'j Less than $500, 000.
Note: Details may not add to totals due to rounding.
27
Table 8. Trust Fund Impact on Budget Results and Investment Holdings as
[$ millions]
This Month
Securities held as Investments
Current Fiscal Year
Fiscal Year to Date
Classification
Beginning of
Receipts
Outlays
Excess
Receipts
Outlays
Excess
This Year
Trust receipts, outlays, and Investments
held:
Airport
Black lung disability
Federal disability Insurance
Federal employees life and health
Federal employees retirement
Federal hospital insurance
Federal Old-age and survivors insurance
Federal supplementary medical insurance
Highways
Military advances
Railroad retirement
Military retirement
Unemployment
Veterans life insurance
All other trust
1,245
7,127
22,532
5,044
1,518
767
398
5,948
3,575
32
330
456
50
2,998
-316
2,970
8,006
22,554
4,838
1,750
1,087
640
2,187
2,762
93
142
-4
-11
-572
316
-1,725
-880
-22
206
-232
-320
-242
3,760
813
-61
188
Total trust fund receipts and outlays
and investments held from Table 60 ..........................................
Less: Interfund transactions
51,434
12,299
50,218
12,299
Trust fund receipts and outlays on the basis
.................
of Tables 4 & 5
39,135
Total Federal fund receipts and outlays ....
Less: Interfund transactions ..................
Federal fund receipts and outlays on the
basis of Table 4 & 5
Less: offsetting proprietary receipts
Net budget receipts & outlays
...............
2,438
13,721
44,499
10,113
2,955
1,933
754
19,105
5,592
63
669
680
99
5,990
-210
5,988
15,438
45,100
9,487
3,651
2,123
1,270
4,405
5,472
197
489
212
-3
-1,220
210
-3,550
-1,718
-602
626
-696
-190
-515
14,700
121
-134
180
1,216
107,599
32,893
100,181
32,893
7,418
37,919
1,216
74,706
67,288
7,418
46,226
19
85,823
19
-39,597
92,182
234
183,404
234
-91,222
46,207
85,804
-39,597
91,949
183,170
-91,222
2,235
2,235
4,880
4,880
83,107
121,488
161,175
245,578
452
40
2,426
-38,381
No transactions.
Note Interfund receipts and outlays are transactions between Federal funds and trust funds
such as Federal payments and contributions. and interest and profits on investments in Federal
securities They have no net effect on overall budget receipts and outlays since the receipts side of
such transactions is offset against bugdet outlays. In this table. Interfund receipts are shown as an
adjustment to amve at total receipts and outlays of trust funds respectively.
891
95
4,770
I
This Month
Close of
This Month
I
!
12,672
12,944
13,012
10,237
20,484
318,583
126,078
355,510
23,268
22,004
9,602
20,462
316,644
125,104
354,940
23,870
21,224
9,416
20,871
11,961
96,690
36,607
13,253
10,784
11,849
107,513
35,930
13,185
10,886
11,859
111,026
36,860
13,116
11,069
1,058,131
1,064,153
1,068,451
-83,803
Note: Details may not add to totals due to rounding.
28
-
315,048
124,309
354,997
23,983
20,891
Table 9. Summary of Receipts by Source, and Outlays by Function of the U.S. Government, November 1993
and Other Periods
($ millions]
Classification
This Month
Fiscal Vear
To Date
Comparable Period
Prior Fiscal Year
Individual income taxes ........................................... .
Corporation income taxes ......................................... .
Social insurance taxes and contributions:
Employment taxes and contributions ........................... .
Unemployment insurance ....................................... .
Other retirement contributions .................................. .
Excise taxes ....................................................... .
Estate and gift taxes ............................................. .
Customs ........................................................... .
Miscellaneous ...................................................... .
37,634
2,208
75,314
4,366
70,379
3,575
31,525
2,773
385
4,808
1,305
1,688
781
60,965
3,819
728
8,405
2,296
3,396
2,487
58,399
3,304
792
7,752
1,981
3,169
2,098
Total ........................................................ .
83,107
161,775
151,449
National defense ........... .. .................................... ..
Intemational affairs ................................................ .
General science, space, and technology ........................ ..
Energy ............................................................. .
Natural resources and environment ............................... .
Agriculture ......................................................... .
Commerce and housing credit ................................... ..
Transportation ..................................................... .
Community and Regional Development .......................... ..
Education, training, employment and social services ............ .
Health .............................................................. .
Medicare .......................................................... ..
Income security ................................................... ..
Social Security ..................................................... .
Veterans benefits and services ................................... .
Administration of justice ........................................... .
General government ............................................... .
Interest ............................................................. .
Undistributed offsetting receipts ................................. ..
22,990
1,964
1,522
510
2,784
2,237
-1,361
3,248
930
5,098
8,675
11,491
16,764
25,556
3,198
1,306
1,317
16,171
-2,910
47,271
6,695
2,943
935
4,695
3,679
-984
6,381
1.828
8,684
17,991
22,220
34,106
51,094
6,017
2,315
1,957
33,253
-5,503
47,961
6,150
3,021
1,136
5,142
4,394
-4,682
5,903
1,679
7,763
15,441
20,219
32,411
48,447
5,821
2,398
2,633
32,594
-5,464
Total ....................................................... ..
121,488
245,578
232,967
RECEIPTS
NET OUTLAYS
Note: Details may not add to totals due to rounding.
Explanatory Notes
the employee and credits for whatever purpose the money was withheld.
Outlays are stated net of offsetting collections (including receipts 01
revolving and management funds) and of refunds. Interest on the PUblic
debt (publiC issues) is recognized on the accrual basis. Federal creat
programs subject to the Federal Credit Reform Act of 1990 use the cash
basis of accounting and are divided into two components. The POrtion 01
the credit activities that involve a cost to the Government (main~
subSidies) is included within the budget program accounts. The remaining
portion of the credit activities are in non-budget financing aCCOunts.
Outlays of Off-budget Federal entities are excluded by law from budget
totals. However, they are shown separately and combined with the onbudget outlays to display total Federal outlays.
1. Flow of Data Into Monthly Treasury Statement
The Monthly Treasury Statement (MTS) is assembled from data in the
central accounting system. The major sources of data include monthly
accounting reports by Federal entities and disbursing officers, and daily
reports from the Federal Reserve banks. These reports detail accounting
transactions affecting receipts and outlays of the Federal Government
and off-budget Federal entities, and their related effect on the assets and
liabllilieS of the U.S. Government. Information is presented in the MTS on
a modified cash basis.
2. Notes on Receipts
Receipts included in the report are classified into the following major
categories: (1) budget receipts and (2) offsetting collections (also called
apphcable receipts). Budget receipts are collections from the public that
result from the exercise of the Government's sovereign or governmental
powers, excluding receipts offset against outlays. These collections, also
called governmental receipts, consist mainly of tax receipts (including
social insurance taxes), receipts from court fines, certain licenses, and
deposits of earnings by the Federal Reserve System. Refunds of receipts
are treated as deductions from gross receipts.
Offsetting collections are from other Government accounts or the
public that are of a business-type or market-oriented nature. They are
classified into two major categories: (1) offsetting collections credited to
appropriations or fund accounts, and (2) offsetting receipts (Le., amounts
deposited in receipt accounts). Collections credited to appropriation or
fund accounts normally can be used without appropriation action by
Congress. These occur in two instances: (1) when authorized by law,
amounts collected for materials or services are treated as reimbursements to appropriations and (2) in the three types of revolving funds
(publiC enterprise, intragovernmental, and trust); collections are netted
against spending, and outlays are reported as the net amount.
Offsetting receipts in receipt accounts cannot be used without being
appropriated. They are subdivided into two categories: (1) proprietary
receipts-these collections are from the public and they are offset against
outlays by agency and by function, and (2) intragovernmental fundsthese are payments into receipt accounts from Governmental appropriation or funds accounts. They finance operations within and between
Government agencies and are credited with collections from other
Government accounts. The transactions may be intrabudgetary when the
payment and receipt both occur within the budget or from receipts from
off-budget Federal entities in those cases where payment is made by a
Federal entity whose budget authority and outlays are excluded from the
budget totals.
Intrabudgetary transactions are subdivided into three categories:
(1) interfund transactions, where the payments are from one fund group
(either Federal funds or trust funds) to a receipt account in the other fund
group; (2) Federal intrafund transactions, where the payments and
receipts both occur within the Federal fund group; and (3) trust intra fund
transactions. where the payments and receipts both occur within the trust
fund group.
Offsetting receipts are generally deducted from budget authority and
outlays by function. by subfunction, or by agency. There are four types of
receipts, however, that are deducted from budget totals as undistributed
offsetting receipts. They are: (1) agencies' payments (including payments
by off-budget Federal entities) as employers into employees retirement
funds. (2) interest received by trust funds, (3) rents and royalties on the
Outer Continental Shelf lands, and (4) other interest (Le., interest collected
on Outer Continental Shelf money in deposit funds when such money is
transferred into the budget).
4. Processing
The data on payments and collections are reported by account symbol
into the central accounting system. In turn, the data are extracted from
this system for use in the preparation of the MTS.
There are two major checks which are conducted to assure the
consistency of the data reported:
1. Verification of payment data. The monthly payment activity reported by
Federal entities on their Statements of Transactions is compared to the
payment activity of Federal entities as reported by disbursing officers.
2. Verification of collection data. Reported collections appearing on
Statements of Transactions are compared to deposits as reported by
Federal Reserve banks.
5. Other Sources of Information About Federal Government
Financial Activities
• A Glossary of Terms Used in the Federal Budget Process, March
1981 (Available from the U.S. General Accounting Office. Gaithersburg,
Md. 20760). This glossary provides a basic reference document of
standardized definitions of terms used by the Federal Government in the
budgetmaking process.
• Daily Treasury Statement (Available from GPO, Washington, D.C.
20402, on a subscription basis only). The Daily Treasury Statement is
published each working day of the Federal Government and provides data
on the cash and debt operations of the Treasury.
• Monthly Statement of the Public Debt of the United States
(Available from GPO, Washington, D.C. 20402 on a subscription basis
only). This publication provides detailed information concerning the public
debt.
• Treasury Bulletin (Available from GPO, Washington, D.C. 20402, by
subscription or single copy). Quarterly. Contains a mix of narrative, tables,
and charts on Treasury issues, Federal financial operations, international
statistics, and special reports.
• Budget of the United States Government, Fiscal Year 19_
(Available from GPO, Washington, D.C. 20402). This publication is a
single volume which provides budget information and contains:
-Appendix, The Budget of the United States Government, FY 19_
-The United States Budget in Brief, FY 19 _
-Special Analyses
-Historical Tables
-Management of the United States Government
-Major Policy Initiatives
3. Notes on Outlays
Outlays are generally accounted for on the basis of checks issued,
electronic funds transferred, or cash payments made. Certain outlays do
not reqUire Issuance of cash or checks. An example is Charges made
against appropriations for that part of employees' salaries withheld for
taxes or savings bond allotments - these are counted as payments to
• United States Government Annual Report and Appendix (Available
from Financial Management
Washington, D.C. 20227).
results at the summary level.
and appropriation accounts
30
Service, U.S. Department of the Treasury·
This annual report represents budgetarY
The appendix presents the individual reGel!J1
at the detail level.
Scheduled Release
Listed below are the scheduled release dates for the 1994 Statements.
The release time will be 2:00 p.m. EST.
Accounting
MMth
January 1994
February 1994
March 1994
April 1994
May 1994
June 1994
July 1994
August 1994
September 1994
October 1994
November 1994
December 1994
Release Q.m
2-22-94
3-21-94
4-21-94
5-20-94
6-21-94
7-22-94
8-19-94
9-22-94
(l)
11-22-94
12-21-94
1-24-95
'Release date subject to completion of year-end reporting reqUirements.
For sale by the Superintendent of Documents. U.S. Government Printing
Office. Washington. D.C. 20402 (202) 783-3238. The subscription price is
$35.00 per year (domestiC). $33.73 per year (foreign).
No single copies are sold.
UBLIC DEBT NEWS
Tenders for $17,036 million of 2-year notes, Series AE-1995,
to be issued December 31, '1993 and to mature December 31, 1995
were accepted today (CUSIP: 912827N32).
The interest rate on the notes will be 4 1/4~. All
competitive tenders at yields lower than 4.28~ were accepted in
full.
Tenders at 4.28~ were allotted 32~. All noncompetitive and
sucessful competitive bidders were allotted securities at the yield
of 4.28~, with an equivalent price of 99.943. The median yield
was 4.27%; that is, 50% of the amount of accepted competitive bids
were tendered at or below that yield. The low yield was 4.22%;
that is, 5% of the amount of accepted competitive bids were
tendered at or below that yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Received
$47,292,900
Accepted
$17,035,826
The $17,036 million of accepted tenders includes $793
million of noncompetitive tenders and $16,243 million of
competitive tenders from the public.
In addition, $690 million of tenders was awarded at the
high yield to Federal Reserve Banks as agents for foreign and
international monetary authorities. An additional $1,550 million
of tenders was also accepted at the high yield from Federal
Reserve Banks for their own account in exchange for maturing
securities.
LB-559
CONTACT:
FOR RELEASE AT 2:30 P.M.
December 21, 1993
Office of Financing
202/219-3350
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $26,000 million, to be issued December 30,
1993. This offering will provide about $1,725 million of new
cash for the Treasury, as the maturing bills are outstanding in
the amount of $24,272 million5
Federal Reserve Banks hold $6,206 million of the maturing
bills for their own accounts, which may be refunded within the
offering amount at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $2,955 million as agents for
foreign and international monetary authorities, which may be
refunded within the offering amount at the weighted average
discount rate of accepted competitive tenders. Additional
amounts may be issued for such accounts if the aggregate amount
of new bids exceeds the aggregate amount of maturing bills.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C. This offering of -Treasury securities
is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356, published as a final rule on
January 5, 1993, and effective March 1, 1993) for the sale and
issue by the Treasury to the public of marketable Treasury bills,
notes, and bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
S-560
HIGHLIGHTS OF TREASURY OFFERINGS OF WEEKLY BILLS
TO BE ISSUED DECEMBER 30, 1993
December 21, 1993
Offering Amount . . . . .
Description of Offering:
$13,000 million
$13,000 million
Term and type of security . . . . .
CUSIP number
. . . . . . .
Auction date . . . . . . . . . .
Issue date . . . . . . . .
Maturi ty date . . . .
.... .
original issue date
.. .
Currently outstanding • .
91-day bill
912794 J7 0
December 27, 1993
December 30, 1993
March 31, 1994
September 30, 1993
$11,754 million
182-day bill
912794 L4 4
December 27, 1993
December 30, 1993
June 30, 1994
July 1, 1993
$15,340 million
Minimum bid amount . .
Multiples . . . . . .
$10,000
$ 1,000
$10,000
$ 1,000
• . . .
....
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids
competitive bids
Accepted in full up to $1,000,000 at the average
discount rate of accepted competitive bids
(1) Must be expressed as a discount rate with
two decimals, e.g., 7.10%.
(2) Net long position for each bidder must be
reported when the sum of the total bid
amount, at all discount rates, and the net
long position is $2 billion or greater.
(3) Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid
at a Single Yield
35% of public offering
Maximum Award . . . . . .
35% of public offering
Receipt of Tenders:
Noncompetitive tenders
competitive tenders
Payment Terms .
Prior to 12:00 noon Eastern Standard time on
auction day
Prior to 1:00 p.m. Eastern Standard time on
auction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
FOR IMMEDIATE RELEASE
December 22, 1993
CONTACf: Scott Dykema
(202) 622-2960
U.S.-RUSSIA TAX TREATY TO TAKE EFFECf IN 1994
The Treasury Department announced today that a new tax treaty between the
United States and the Russian Federation will take effect January 1, 1994.
The new treaty will replace the treaty between the United States and the former
Soviet Union, which continues in effect for the other former Soviet republics.
The new treaty was approved by the Senate on November 20. Vice President
Gore and Prime Minister Chernomyrdin exchanged instruments of ratification in Moscow
on December 16.
The new treaty generally will take effect for taxable years beginning on or after
January 1, 1994. With respect to taxes withheld on interest, dividends and royalties, the
new treaty takes effect on February 1, 1994. If the old treaty provides any greater relief
from tax, a taxpayer may elect to have the old treaty apply for the first taxable year that
the new treaty would otherwise have applied.
Copies of the new treaty may be obtained by writing the Office of Public Affairs,
Room 2315, Department of the Treasury, Washington, D.C. 20220, or calling telephone
(202) 622-2960.
-30-
LB-561
RESULTS OF TREASURY'S AUCTION OF 5-YEAR NOTES
Tenders fot'$'1i;-042 mi~liiQn of 5-year notes, Series V-1998,
to be issued December 31, 1993 and to mature December 31, 1998
were accepted tpday (CUSIP: 912827N40).
The interest rate on the notes will be 5 1/8%. All
competitive tenders at yields lower than 5.19% were accepted in
full.
Tenders at 5.19% were allotted 72%. All noncompetitive and
sucessful competitive bidders were allotted securities at the yield
of 5.19%, with an equivalent price of 99.717. The median yield
was 5.19%; that is, 50% of the amount of accepted competitive bids
were tendered at or below that yield. The low yield was 5.15%;
that is, 5% of the amount of accepted competitive bids were
tendered at or below that yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Received
$35,527,717
Accepted _
$11,042,099
The $11,042 million of accepted tenders includes $497
million of noncompetitive tenders and $10,545 million of
competitive tenders from the public.
In addition,
$30 million of tenders was awarded at the
high yield to Federal Reserve Banks as agents for foreign and
international monetary authorities. An additional $1,360 million
of tenders was also accepted at the high yield from Federal
Reserve Banks for their own account in exchange for maturing
securities.
LB-562
UBLIC DEBT NEWS
Department of the Treasury •
Bureau of the Public Debt • Washington, DC 20239
FOR IMMEDIATE RELEASE
February 14, 1994
CONTACT: Office of Financing
202-219-3350
RESULT$ OF TREASURY'S AUCTION OF 26-WEEK BILLS
I;
Tenders for:$i1,V 276 -million of 26-week bills to be issued
February 17, 1994 and to mature August 18, 1994 were
accepted today (CUSIP: 912794M84)
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
3.42%
3.43%
3.4:3%
Investment
Rate
3.53%
3.54%
3.54%
Price
98.271
98.266
98.266
Tenders at the high discount rate were allotted 23%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
Received
$54,681,946
Accepted.
$12,276,380
$49,109,950
955,768
$50,065,718
$6,704,384
955,768
$7,660,152
2,950,000
2,950,000
1,666,228
$54,681,946
1,666,228
$12,276,380
An additional $756,472 thousand of bills will be
issued to foreign official institutions for new cash.
LB-563
FOR IMMEDIATE RELEASE
December 23 , 1993
Contact: Peter 0 'Brien
(202) 622-2960
U. S. ALLOWS PARTICIPATION IN DEVELOPMENT PROJECTS IN VIETNAM
Treasury's Office of Foreign Assets Control ("FAC") today announced that U. S.
corporations and individuals will be permitted to participate in formally proposed or
approved development projects in Vietnam of such international financial institutions as the
International Bank for Reconstruction and Development, the Asian Development Bank, the
United Nations Development Program, and the World Health Organization.
The new regulations, amendments to Foreign Assets Control Regulations, 31 CFR
Part 500, implement the President's decision on September 13, 1993, to allow persons or
corporations subject to U.S. jurisdiction to provide goods and services in connection with a
project once the project has been formally proposed or approved by one of twenty-four listed
institutions for execution, funding, or sponsorship by that institution. No specific level of
funding by the institution is required.
Equity participation with the institution in the project is also permitted, as is equity
participatioR in entities in Vietnam, such as joint venture corporations, established
exclusively to participate in the project. Persons entering into transactions based on the new
regulations are required to file an initial registration statement with FAC, as well as annual
project status reports. Co-financing of or lending to the projects in Vietnam may be
authorized only by specific license on a case-by-case basis.
By separate general license, banking institutions subject to U. S. jurisdiction may
process all transactions of the listed institutions with respect to Vietnam without further
authorization by F AC.
Persons desiring to export or re-export to the above-described projects in Vietnam either
goods, technical data, or the direct products of such data (regardless of U.S. content) are
advised that additional authorization from the U.S. Department of Commerce may be
required pursuant to the Export Administration Regulations, 15 CFR Parts 768-799.
Additional information regarding the new regulations may be obtained from
Treasury's Office of Foreign Assets Control at (202) 622-2480.
-30LB-564
Rules and Regulations
This aectlon of the FEDERAL REGISTER
contains regulatory documents having general
applicability and legal effect, moat of which
ate keyed to and codified In the Code of
Federal Regulations, which Is published under
50 tI1Ies pursuant to 44 U.S.C. 1510.
The Code of Federal Regulations Is acid by
the Superintendent of Documents. Prices of
nMY booka are liated In the fir. FEDERAL
REGISTER Issue of each w..k.
DEPARTMENT OF THE TREASURY
Office of Foreign Aa..ta Control
31 CFR Part 500
Foreign Aaeet. Control Regulatlon.j
Participation In International
Institution.' Development Projects In
Vietnam
AQENCY: Office of Foreign .Assets Control,
Treasury.
ACTION: Final rule; amendments.
SUMMARY: This rule amends the Foreign
Assets Control Regulations to announce the
availability of a general license permitting
participation by persons subject to U.S.
jurisdiction in development projects in
Vietnam formally proposed, approved,
executed, funded or sponsored by an
international institution listed in a new
appendix A to the regulations, subject to
certain registration and reporting
requirements. Specific licenses may be issued
to permit oo-financing of or lending to such
development projects. A further general
license is added 10 permit banking institutions
subject to U.S. jurisdiction to process
transactions of the named international
institutions with respect to Vietnam.
effECTIVE DATE: [insert date of filing for
public inspection]
FOR FURTHER INFORMATlON CONTACT:
Steven I. Pinter, Olief of Licensing (tel.: 202/
622-2480), Dennis P. Wood, ClUef of
Compliance Programs (tel.: 202/622-2490),
or William B. Hoffman, Olief Counsel (tel.:
202/622-2410), Office of Foreign .Assets
Control, Department of the Treasury,
Washington, DC 20220.
SUPPLEMENTARYINFORIlA1lON:
Electronic A vailabUity
This document is available as an electronic
file on The Federal Bulletin Board the day
of publication in the Federal Register. By
modem dial 202/512-1387 or call 202/5121530 for disks or paper oopies. This file is
10:11 Dec 23. 111Q3
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Jkt 00000o
available in Postscript, WordPerfect 5.1 and
ASCI.
Background
In support of the President's decision of
September 13, 1993, to recognize the recent
steps taken by the Vietnamese government
and encourage further progress on achieving
the fullest possible aooounting on U.s.
prisoner of war and missing in action cases
from the Vietnam war, tbe Office of Foreign
Assets Control ("FAC") is amending the
Foreign Assets Control Regulations, 31 crR
part 500 (the "FACR"), to add § 500.576,
whim generally authorizes the participation
by persons subject to U.S. jurisdiction in
development projects in Vietnam formally
proposed or approved for execution, funding
or sponsorship by certain international
institutions, such as the International Bank for
Reconstruction and Development (the
"World Bank"), the Asian Development
Bank, the United Nations Development
Program, and the World Health Organization.
A list of qualified international institutions
appears in new appendix A to the FACR.
Once a project (or a feasibility study for
a project) has been formally proposed or
approved by a qUalified international
institution for execution, funding or
sponsorship by that institution (hereinafter
referred to as a "Qualified Project"), persons
subject to U.S. jurisdiction may, upon
registration with FAC, provide both goods
and services in relation to the Qualified
Project, as oontractors, subcontractors, or
suppliers of related goods or services. An
initial registration and annual reports are
required to be filed with FAC with respect
to the authorized transactions, as provided in
§500576(d) and (e). No specific funding
level on the part of qualified international
institutions is required. This authorization
also permits equity participation with
qualified international institutions in
Qualified Projects, as well as equity
participation by persons subject to U.S.
jurisdiction in entities in Vietnam, such as
joint venture oorporations, established
exclusively to participate in Qualified
Projects. Co-fmancing of or lending to
Qualified Projects in Vietnam may be
authorized by specific license on a case-bycase basis. Certain preparatory transactions
may be undertaken by persons subject to U.S.
jurisdiction with respect to proposed projects
under specific licenses issued pursuant to
FACR § 500574, oonceming executory
contracts in which Vietnam or a Vietnamese
national bas an interest.
The authorization in § 500.576 does not
permit performance of oontracts or
PO 00000
Frm 00001
Fmt .700 Sfm .700
ptrti.:ipation in development projedl or
feasibility studies for development projects
prior to the formal proposal or approval of the
projects or studies by a qualified international
institution. Such participation is prohibited
unless otherwise authorized, for example, by
§ 500.574 with respect to certain executory
oontrac:ts in which Vietnam or a Vietnamese
national has an interest Section 500.413 is
added to provide examples interpreting the
scope of the authorization oontained in this
section.
Exports or reexports to Vietnam of goods
and tedmical data or of the direct products
of technical data (regardless of U.S. content),
in connection with activities authorized by
FAC with respect to Qualified Projedl may
require additional authorization from the U.S.
Department of Commerce pursuant to the
Export Administration Regulations, 15 CFR
parts 768-799.
The FACR are also amended to add
§ 500.577, authorizing by general license
banking institutions subject to United States
jurisdiction to process all transactions of
qualified international institutions with
respect to Vietnam.
Because the FACR involve a foreign
affairs function, Executive Order 12866 and
the provisions of the Administrative
Procedure Act, $ U.S.C. 553, requiring notice
of proposed rulemaking, opportunity for
public participation, and delay in effective
date, are inapplicable. Because no notice of
proposed rulemaking is required for this rule,
the Regulatory Flexibility Act, 5 U.S.C. 601
et seq., does not apply.
This rule is being issued without prior
notice and public procedure pursuant to the
Administrative Procedure Act. For this
reason, the oollection of information
oontained in FACR §500576(c) has been
reviewed and, pending receipt and evaluation
of public oomments, approved by the Office
of Management and Budget under control
number 1501-····. Comments oonceming
the average annual burden and suggestions
for reducing this burden should be directed
to the Office of Management and Budget,
Paperwork Reduction Project, Washington,
D.C. 20503, with oopies to the Office of
Foreign .Assets Control, U.S. Department of
the Treasury, 1500 Pennsylvania Avenue,
NW-Aonex, Washington, DC 20220. Any
such oomments should be submitted not later
than [insert date 60 days from publication].
The oollection of information in this rule
is oontained in FACR § 500.576(d) and (e).
This information is required by the Office of
Foreign Assets Control for oompliance and
enforcement purposes. This information will
be used to determine the identity of
D:\WPS1\REG\VNIA.GPO
2
f 500.576 would authorize the U.S. CoDiultiDg
organizations availiDl themselves of the
Firm's tnDIactiODl.
genenlliceDle in t 500576, to determine
Eumple 1# 2: Upon ADB approval of funding
whether penonasubject to the FACR are in
compliance with applicable requirements. and for the cement plant project, a U.S. company (the
"U.S. Company' ') forms a joint venmre with a
to determine whether and to what extent
Vietnameae
company to bid on coDl1nlClion of abe
enforcement action is appropriate. The likely
cement plants in Hanoi and Ho Chi Minh City. 1'be
respondents are businesaea.
joint venture's bid is successful, and it purchalea
Estimated total annual reporting and or
coDlt:rucSion equipment from the United Stste&,
reoordkeeping burden: 600 hours.
fiDaDced by a U.S. bank and insured by a U.s.
The estimated annual burden per
company. Several items are sourced from the
respondent/recordkeeper is expected to be 4
United Ststes during construc:tion, ind1ldiDe cement
hours.
equipment, which is covered by • ten-year service
The estimated number of respondents IDIl/
and maiDteDlDce agreelDClll 1lae joint venture
or reoordkeepera: 150.
. agreement c:alla for the continued manaaement and
Estimated annual frequency of responses:
operation of the planll by the U.S. Company after
1.
completion, and for the insUraDCe of the plants by
a U.s. insurance company. Each oftbeae
Llat of Subjects In 31 CPR Part 500
lraJIIactioDi with respect to abe Qualified Project is
Administrative practice and procedure.
authorized by f 500.576.
Banks. Banking. Blocking of assets.
Emmple 1# 3: The International FiDlDce
Cambodia, Communist countries, Currency,
Corporation ("IFC") offers equity investment in a
Exports, Finance. Foreign aaima, Foreign
Vietnamese company to finance eavironmental
investment, Foreign trade, International
safeguards for drilling operatiollS in offshore oil
organizations. North Korea, Penalties,
fielcia. Various U.S. investors, ineludilll venture
Reporting and recordkeepiDl requirements,
capital companies, brobnee firms, and investment
Securities. Services. Telecommunications.
banks contribute capital and receive shares in the
Travel restrictions, Vietnam.
Vie1Damese company. This equity investment in a
Qualified Project is authorized by f 500.576. 1lae
For the reasons set forth in the preamble,
U.S. companies purclaasilll these slwea u part of
31 CFR part SOO is amended as follows:
the IFC-spo..ared development project may hold
or resell them, ineludilll reaale to other persons
PART 500--FOREIGN ASSETS
subject to U.S. jurisdiction. Shara acquired by
CONTROLREGULAnONS
entities not subject to U.S. jurisdiction may not
1. The authority citation for part 500
theD be purchased or repurcllued by a person
continues to read as follows:
subject to U.S. jurisdiction.
Emmple 1# 4: (a) An Indonesian company (the
Authorityl 50 U.S.C. App. 1-44; B.O. 9193, 3
"CoDtractor") is a successful bidder on a Qualified
CFR, 1938-1943 Comp., p. 1174; E.O. 9989, 3
Project, and hires a U.S. law firm to represent it
CFR, 194~1948 Comp., p. 748.
in contract negotiatiolll with Vie1Dam to build.
Subpart D--Interpret8tlona
fish processing and c:anDi.Dg facility in Vietnam
funded by the World Bank. 1lae law firm may
2. Section 500.413 is added to subpart D
represent the Contractor tbrovpolll the course of
to read as follows:
the project pursuant to t 500.576, once the project
hu becD formally proposed or approved for
1500.413 P.rtlclfMltIon In certain
funding by the World Bank.
dewlopment projecta In VIetnam.
The following examples illustrate the scope
(b) On~ the Qualified Project is underway,
of the authorization in § 500576 for dealings
the Contractor purchases equipment
in property in which Vietnam or a
manufactured in Fran~ by a French
Vietnamese national has an interest with
company. The long-term servicing of the
respect to development projects in Vietnam
equipment, however, will be provided by the
formally proposed or approved for execution, French company's U.S. subsidiary. The
funding or sponsorsbip by a qualified
servi~ transactions are authorized pursuant to
international institution listed in appendix A
1500576.
to this part ("Qualified Projects").
(c) After the processing facility is
£XlImple 1# 1: 1lae Government of Vie1Dam
completed, Vietnam hires a U.S. marketing
("Vietnam") approac:hea a U.S. financial
fmn to develop marketing strategies for the
consultilll firm (the "U.S. Consulting Firm") for
product
worldwide. It further asks the
advice on building cement planll in Hanoi and Ho
marketing firm to execute the strategies it
Chi Minh City. 1lae project mieltt be elipble for
devises and to represent the product in South£UDding by the Asian Development Bank (the
East Asia, including the domestic market in
"ADB"), and Vietnam wanll the U.S. Co..ulling
Firm's assistance in conducting a feasibility study
Vietnam. The marketing fmn in tum would
for submi.ion to the ADB. Since the project has
hire the brokerage services of a U.S. citizen
not yet been formally proposed or approved for
domiciled in Thailand for the sale of the
£UDding by the ADB, no involvement of the U.S.
product to that country. 1bese transactions are
Consulting Fum is authorized pursuant to
outside the scope of 1 500576, and violate
t 500.576. However, had the ADB formally
1 500.201. because they are not directly
proposed the project in its mODthly ADB BIUiItas
incident to the Qualified Project funded by
OpportJulitiu u a project beilll co..idered for
the Worl4 Bank.
£UDding, or had it funded the feasibility study,
Subpart E~cen.... Authorization ..
and Statementa of Llcenalng Policy
3. Section 500576 is added to subpart E
to read as followa:
1500.571 AulhorlDUon of tnnMC1lone
cone.....lng cen.1n dev..opm....t pro)ect8 In
VI.....m.
(a> All transacliona by persons subject to
U.s. jurisdiction in connection with
participation in development projects in
Vietnam formally proposed or approved for
execution. funding or sponsorship by the
international institutions listed in appendix A
to this part ("Qualified Projects") are
authorized. For purposes of this section.
Qualified Projects include inveslment
projects, structural adjustment lending. sector
adjustment lending, International Monetary
Fund balan~f-payments support, and
general development assistance including
grants. technical assistance. and loans.
(b) Persons subject to U.S. juriadiction may
provide both goods and services to any party
contracting to participate in a Quslified
Project pursuant to the authorization
contained in this section.
(1) Services may include fmancial. legal,
consulting, insurance. shipping and other
services.
(2) Persons subject to U.S jurisdiction may
participate in Qualified Projects as suppliers,
contractors, or subcontractors. and through
joint ventures with thitd-country nationals
and Vietnamese nationals.
(3) Persons subject to U.S. jurisdiction may
finance, or guarantee the performance of,
activities of U.S. participants in a Qualified
Project; co-financing of or lending to the
Qualified Project itself by a person subject to
U.S. jurisdiction may be authorized by
specific Ii~nse pursuant to § 500.801.
IlJustrative examples of transactions covered
by this section are set forth in 1500.413.
(c) Except u otherwise authorized. persons
subject to U.S. jurisdiction may not
participate in development projects in
Vietnam that are bilaterally funded and
administered, or in projects or feasibility
studies prior to formal proposal or approval
by a qualified international institution for its
involvement in the project or study. If a
quslified international institution formally
proposes but thereafter rejects. terminates, or
abandons a project, the project shall no longer
constitute a Qualified Project for purposes of
this section. Except as otherwise specifically
authorized pursuant to this part, persons
subject to U.S. jurisdiction may not enter into
any new commitments with respect to the
project after the date of such rejection.
termination. or abandonment. In addition, this
section does not authorize:
(1) the importation ofVietnamese~rigin
goods into the United States, ex~pt as
required to honor service or warranty
contracts usociated with Qualified Projeds~
(2) offshore transactions of persons subject
to U.S. jurisdiction involving the sale of
10;11 Dec 23". VerOtlal 17·SEP-83 Jkt 00000o ~ 00000 Frm 00CXI2 Fmt .700 Sfmt .700 D:\WPS1\REG\VNIA.GPO
3
VietDameae-origin goodI between Vietnam
aad third cx)UDtriCS, or among third cx)UDtries;
(3) Dighta into or out of Vietnam by
aircraft owned or CX)ntrolled by perIODS
subject to U.s. jurisdiction, except when such
perIOna trlDlport, on aircraft they own, only
paaaengers or cargo lIIOCiated with a
Qualified Project in which such persona are
participating pursuant to this section;
(4) the use in Vietnam of aedit cards
iaaued by a U.S. banking institution; or
(5) a debit to a blocbc1aocoUDt.
bturtple: A ViellWDOIe hilhway project
feutllility INdy fiDaDced by a thirckoUllcry
developmeat apllC)" ia DOt a Qualified Project for
pmpoeea of thia MdiOD. However. the feutllility
ltUdy woulel be a Qualified Project,
DotwitbitaDdillJ the bilateral fundi ... if the
IDtematioaal Development AIaoc:iatiOD bad
formally propoucl the hiJbway projea U ODe
UDder COlllideratiOD for f1mdiDJ in ilS MonJIaly
OpeNtiolUd S"".".." 0/ Wo,lJ BtmIc w IDA
ProporeJ Projecu.
project, request for bid, or other identifying
number);
(5) a brief description of the activity
covered by the agreement, and the CX)ntract
value; and
(6) if the reporting party is a submntrac:tor,
the prime contractor's name, address, and
nationality, and those of all intermediate
subcontractors.
Registration is not required of agencies of the
Federal Government participating in
Qualified Projects.
(e) Upon registration meeting the
requirements of paragraph (d) of this aec:tion,
the Office of Foreign Assets Control will
usign a registration number to the contract
involved. This number should be referenced
in all funck transfers and other banking
transactions that take place through banks
subject to U.s. jurisdiction, aad in all U.s.
export documents, in connection with the
Qualified Project in Vietnam in order to avoid
the blodcing of such funds and to facilitate
export transactions.
(f) Annual reports must be filed with the
Office of Foreign Assets Control on the
anniversary of the issuance of a contract
registration number, briefly desaibing the
status of the project and any material changes
in the information originally provided.
(d) Within 10 business days after entering
into an agreement for goods, services,
financing, investment, or other participation
in or related to a Qualified Project, the
person(s} subject to U.S. jurisdiction entering
into the agreement must register with the
Office of Foreign Assets Control, Compliance
Division, U.S. Department of the Treaury,
Note to 1500.576: ExporlS or reexporlS to
1500 Pennsylvania Avenue, NW-Annex,
Vietnam of loods anel technical data, or of the
Washington, DC 20220. 1be registration shall direct procluclS of technical data (reprclless ofU.S.
reference the fact that the agreement wa
coDteDt), in coDDecUoD with activities liceued by
entered into pursuant to 31 CFR 500.576(a},
FAC may require authorizatioD from the U.S.
and shall provide:
DepartmeDt of Commerce pursuant to the Export
(1) the name, address, telephone and
AclministratioD RegulatiODS, 15 CFR parts 76S799.
facsimile numbers, and nationality of the
person(s) subject to U.S. jurisdiction;
4. Section 500.577 is added to subpart E
(2) if the reporting party is not an
read IS follows:
individual, the name, address, telephone and
facsimile numbers of the individual to CX)ntact • 500.577 Au1horIDlIon of bank
tran. .cIIon. with r•
to Vietnam by
for further information,
(3) the name of the international institution c.rtaln Intern.1Ional organlzallonL
All transactions by banking ~titutions
listed in appendix A formally proposing,
subject to U.S. jurisdiction incidental to the
approving, cxeaJting, funding, or sponsoring
processing of transactions of the international
the project;
institutions identified in appendix A with
(4) the name and a brief description of the
project in Vietnam (with any contract,
reference to Vietnam are authorized.
.,.ct
10:38 Qec 23.
·413 v.ro. 17·8EP~
JIct OOOOOO~PO 00000 Fnn 00003
Fmt 4700 Sfrn 4700
Exiutple: A traaafer to Vietnam or a VietDamele
Ulioul of fuDda from the U.S. account of a
qualified iateraatioaal illl1imtioD liatecl in arpendix
A to thi. put, for a propam. nIlt or ulary
payment, ia DOt bloc:bd 1UIder thia put.
S. Appendix A ia added to the end of part
500 read IS followa:
Appeadlx A to Part ~UIlIIfyIDg
IntenlaUoaallnaUtuUo...
AIiaa Development Bank (ADB)
Food and Aaricultural OrpDizatiOD (FAO)
IDterDatioui Bank for RecoDltrUction and
Developmeat (lBRO, the "World Bank")
IDterDatioui Civil Aviation OrpaizatiOD (ICAO)
IDtematioui DevelopmeDt AssociatioD (IDA)
IDtematioui Finmce CorporatioD (IFC)
IDtematioaal FuDd for Aaricultural Development
(IFAD)
IDtematioui Labor OrpaizatiOD (nD)
IDtematioui Maritime OrJanizatioD (IMO)
IDtematioui MODetary FUIlcl (IMF)
MuitilaterallDvestmeDt Guarantee AIIociatioD
(MIGA)
UN Capital DevelopmeDt FuDd (UNCDF)
UN ChildreD'. FUIlcl (UNICEF)
UN DevelopmeDt FUIlcl for Women (UNDFW)
UN Development Propm (UNDP)
UN EcoDomic &: Social ColDlllillioD for Aaian aDd
the Pacific (UNESCAP)
UN EducatiOD, ScieDtific and Cultural Orpnization
(UNESCO)
UN BDViromnent ProJrADl (UNBP)
UN Food Propm (UNFP)
UN lDelUltrial Development OreaDizatioD (UNIDO)
UN IDtematioui Ora, CODtrol ProJralll (UNIDCP)
UN Population FUDel (UNPF)
World Health OrpnizatiOD (WHO)
World MeteorolOJical OrpaizatioD (WMO)
Dated: December 17, 1993.
R. IUc:laani Newcomb,
Di,edo"Officeo/ForeignAsHtsContro/.
Approved: December 20,1993.
Jolua P. SiaaplOD,
Deputy A.sN1iI1II S«retuy (ReguI.lory, T Griff IINi
T,tuleEn/orcement).
[FR Doc. 93-31749 FtleclI2-23-93; 10:35 am]
8II.LIIIG CODE .... ........"
D:\WPS1\REG\VNIA.GPO
FOR IMMEDIATE RELEASE
December 23, 1993
CONTACf: HOWARD SCHLOSS
(202) 622-0136
RTC ANNOUNCES NEW INTERIM DEPUTY CEO AND GENERAL COUNSEL
WASHINGTON - Roger C. Altman, Deputy Secretary of the Treasury and
Interim Chief Executive Officer of the Resolution Trust Corporation, announced today
that Jack Ryan will become the interim Deputy Chief Executive Officer of the RTC and
Ellen Kulka will become the General Counsel of the RTC.
Ryan's appointment will become effective January 4, 1994, and Kulka's
appointment will become effective January 17, 1994.
Ryan has been Regional Director of the Southeast Region for the Office of Thrift
Supervision since 1989. Before going to OTS, Ryan served as Acting President and
Senior Vice President of the Federal Home Loan Bank of Boston. From 1969 until
1985, he was Director of the Division of Banking Supervision and Regulation for the
Board of Governors of the Federal Reserve System.
"As interim Deputy CEO, Jack Ryan will manage the RTC on a day-to-day basis
and be based at the RTC in Washington," Altman said. Ryan will serve until a
permanent CEO is confirmed by the Senate and takes office, Altman said.
Kulka is currently the Northeast Regional Counsel of the OTS. Before going to
OTS, she was a member of the law firm Hannoch Weisman, where she served as
chairman of the corporate department. During her tenure as chairman of the corporate
department at the firm, the division grew from five attorneys to 30 attorneys.
"Ellen is an exceptional attorney with a great deal of experience with laws
pertaining to the thrift industry," Altman said. "For the last two years she has had the
responsibility for supervising all of the OTS attorneys in the Northeast Region."
-30-
LB-565
CONTACf: Scott Dykema
(202) 622-2960
FOR IMMEDIATE RELEASE
December 27, 1993
U.S.-CZECH INCOME TAX TREA1Y TAKES EFFECf
WASHINGTON - The Treasury Department announced today that the
instruments of ratification of a new income tax treaty between the United States and the
Czech Republic were exchanged in Washington on December 23.
The provisions of the new treaty with respect to taxes withheld on
dividends, interest and royalties will take effect on February 1, 1994. Treaty
provisions concerning other taxes take effect retroactively for taxable years
beginning on or after January 1, 1993.
The new treaty was signed on September 16 in Prague, and was approved
by the U.S. Senate on November 20. The instruments of ratification were
exchanged last week by Ralph Johnson, Coordinator for Eastern European Aid
for the Department of State, and Michael Zantovsky, Ambassador of the Czech
Republic.
Copies of the new treaty may be obtained by writing the Office of Public
Affairs, Room 2315, Department of the Treasury, Washington, D.C. 20220, or
calling (202) 622-2960.
-30LB-566
UBLIC DEBT NEWS
RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
Tenders for $13,069 million of 13-week bills to be issued
December 30, 1993 and to mature March 31, 1994 were
accepted today (CUSIP: 912794J70).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
3.03%
3.06%
3.06%
Investment
Rate
3.10%
3.12%
3.12%
Price
99.234
99.227
99.227
Tenders at the high discount rate were allotted 52%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED ( in thousands)
-
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
LB-567
Received
$39,300,923
1 1 157 1 315
$40,458,238
Acce:gted
$8,065,923
1 1 157 1 315
$9,223,238
3,156.,135
3,156,135
689 1 700
$44,304,073
689 1 700
$13,069,073
F~CPfm1EBlf}{W 1flEt~R'sJ
December 27, 1993
RESULTS OF fTREASURY'S··AtJ&irroN OF 26-WEEK BILLS
Tenders for $13,083 million of 26-week bills to be issued
December 30, 1993 and to mature June 30, 1994 were
accepted today (CUSIP: 912794L44).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
3.20%
3.22%
3.21%
Investment
Rate
3.30%
3.32%
3.31%
Price
98.382
98.372
98.377
Tenders at the high discount rate were allotted 30%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
LB-568
Received
$35,578,972
808,868
$36,387,840
Accepted
$7,373,772
808,868
$8,182,640
3,050,000
3,050,000
1,850,500
$41,288,340
1, 850,500
$13,083,140
FOR IMMEDIATE RELEASE
Text as Prepared for Delivery
December 28, 1993
-
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
CHilDREN'S HOSPITAL AND HEALTH CENTER
SAN DIEGO, CALIFORNIA
Thank you for having me. It's my first time here -- but I feel like I've known this
place for years. Blair Sadler has been a long-time adviser, he testified before the
Senate Finance Committee when I was there, and has been especially helpful with
regards to children with special health care needs.
In fact, several years back, Senator Dole and I were responsible for changing the
name of the Title 5 program from the "crippled children's program" to "children with
special health care needs." I think back to those battles -- just to change the name -- and
it's minor compared to the debate we'll soon see.
1993 was the year to focus on the economy. For once, we brought the deficit
down, which has kept interest rates low. Inflation is low. We're seeing jobs added -although not fast enough here in California.
One of every six new jobs added this year -- and we've added 1.6 million -- has
been in health care. Health care is an important part of this economy, which is why in
1994, so much focus will be on it.
I've seen a lot of attempts to try to reform the system. We never could get
comprehensive health care through, but over the years we extended Medicaid to more
and more kids. Henry Waxman and I worked very hard on that one. We got Medicaid
coverage all the way up through 18 year oids, if their family incomes were low enough.
In the President's plan, these kids will not lose their benefits -- there will be a
"grandfather clause" for them. I know that's important here, since 50 to 60 percent of
your patients are insured under Medicaid.
I think we'll see reform this year, because it's a matter of economics. We're
spending 14 percent of our incomes on health care, while Japan and Germany are in the
single digits. And our numbers keep going up - although recently they've shown some
improvements -- some lessening of the rate of increase. I think it is because of what we
are proposing, and that as you have seen here in San Diego more companies are moving
toward managed care, and that the hospitals are increasing their efforts to control costs.
LB-569
-2-
But we still have a problem. If we do nothing, this country will be spending about
18 percent of our incomes on health care by the end of the decade, and no one else will
be over 10 percent. And the really troubling part is that every one of those countries
paying less than us covers all of their citizens, and we still have 35 to 40 million with no
coverage - one-quarter to one-third of them children.
They tell me that here in this hospital, you have $17 million a year iii
uncompensated care. I was at a children's hospital in Texas, where they have $47 million
a year. But those costs get picked up -- you either shift the costs to the other patients
who have to pay more for a bed, or else the taxpayer picks it up.
I've seen numbers on preventive care. For every $1 spent in pre-natal care, we
save $3.38 in the first year of a child's life. For every $1 invested in immunizations, we
save $10 over a lifetime. Let's not be naive about this. To save money, you'll need to
cover more people and that costs money. So savings will not be $9, or $3, or whatever
number per child.
We've just been working on the '95 fiscal year budget in Washington, and money
is tight. Mter netting out investments, nine out of 14 Cabinet Departments will have
their budgets cut below last year's. But in line with the President's priorities, health care
comes out better.
The President has made cuts elsewhere so he could take that money and invest it
instead on things he thought were more important. like increasing funding for
immunizations; or the funding for the women, infants, and children's nutrition program.
And the '95 deficit will still come in far lower than anticipated -- in the range of $190
billion -- as opposed to the $302 billion forecast last December before the enactment of
the President's deficit reduction plan.
Now, you'll see some things in health care reform that you won't like. One size
doesn't fit all. Children are not little adults. If you'd re-set a bone for a three-month
old like you would for a 30-year old, you'd be in big trouble.
So, there are things that you would do differently -- and I'd like to hear from you
about that. But President Clinton has risen to the challenge. He wants universal
coverage in this country, with a good set of benefits, and not many people are arguing
with that goal. In fact, two weeks ago, I was pleased to see that the American Academy
of Pediatrics, of which I'm sure many of your physicians are members, came out in
support of the direction we're taking.
Let me end with this: there's no party, no branch of government, no branch of
medicine, no part of the country, no industry -- with all the right answers. There is only
an urgent need to work together -- all of us. So, I hope you bring forward your ideas.
-30-
CONTACT:
FOR RELEASE AT 2:30 P.M.
December 28, 1993
Office of Financing
202/219-3350
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $25,200 million, to be issued January 6,
1994. This offering will provide about $325 million of new cash
for the Treasury, as the maturing bills are outstanding in the
amount of $24,867 million.
Federal Reserve Banks hold $6,130 million of the maturing
bills for their own accounts, which maybe refunded within the
offering amount at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $2,078 million as agents for
foreign and international monetary authorities, which may be
refunded within the offering amount at the weighted average
discount rate of accepted competitive tenders. Additional
amounts may be issued for such accounts if the aggregate amount
of new bids exceeds the aggregate amount of maturing bills.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C. This offering of Treasury securities
is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356, published as a final rule on
January 5, 1993, and effective March 1, 1993) for the sale and
issue by the Treasury to the public of marketable Treasury bills,
notes, and bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
HIGHLIGHTS
OF
TREASURY
OFFERINGS
TO BE ISSUED JANUARY 6,
OF
WEEKLY
BILLS
1994
December 28, 1993
Offering Amount . . . . .
Description of Offering:
Term and type of security
CUSIP number
• . • •
Auction date
• .
Issue date . . . . . . .
Maturity date . . . . . .
original issue date . . .
Currently outstanding . .
Minimum bid amount . . •
Multiples . . • . . . • •
.
•
.
.
.
.
•
.
.
.
.
.
.
.
.
.
•
.
.
.
.
•
.
.
.
.
.
•
.
.
.
.
.
.
.
.
.
$12,600 million
$12,600 million
91-day bill
912794 J8 8
January 3, 1994
January 6, 1994
April 7, 1994
April 8, 1993
$26,190 million
$10,000
$ 1,000
182-day bill
912794 M3 5
January 3, 1994
January 6, 1994
July 7, 1994
January 6, 1994
$10,000
$ 1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids •
Competitive bids
Accepted in full up to $1,000,000 at the average
discount rate of accepted competitive bids
(1) Must be expressed as a discount rate with
two decimals, e.g., 7.10%.
(2) Net long position for each bidder must be
reported when the sum of the total bid
amount, at all discount rates, and the net
long position is $2 billion or greater.
(3) Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid
at a Single yield
35% of public offering
Maximum Award .
35% of public offering
.
. . .
Receipt of Tenders:
Noncompetitive tenders
competitive tenders
payment Terms .
Prior to 12:00 noon Eastern Standard time
on auction day
Prior to 1:00 p.m. Eastern Standard time
on auction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
FOR IMMEDIATE RELEASE
Text as Prepared for Delivery
December 29, 1993
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
VISIT TO CUSTOMS FACILmES
SAN DIEGO, CALIFORNIA
It's been a busy morning. I just spent three-and-a-half hours visiting with a
number of Customs officials.
I started with an extensive briefing on drug smuggling and financial investigations,
then I went on a walking tour around the San Ysidro Port of Entry with some of the
inspectors -- even met some of the canines, and I've been briefed here at Otay Mesa.
When I was Chairman of the Senate Finance Committee, we helped get through
the $147 million to build the new facility here -- and I think the taxpayers will like what
we're doing.
In fact, I've been impressed today. Let me say to the Customs people, you have a
tough job -- mentally and physically -- and with the increase in business because of
NAFfA it will get tougher. I appreciate what you're doing here.
George Weise, the Customs Commissioner, tells me that when it comes to
determining new ports of entry -- they have certain criteria. Basically, they look to see if
there'd be sufficient volume of trade moving through to support port status.
Well, if you took the criteria, and applied it to current ports now in existence -half would not qualify. Half!
I don't think that applies here or in San Ysidro, where you had 53 million people
come through last year -- the busiest land border crossing in the world.
Coming from Texas, I know border congestion. I've seen many a back up. But I
learned today that the average waiting period for a car is now down to 15 minutes,
contrasted to a whole hour only one year ago. So, that's good progress.
I guess if I could leave you with one message, it's this: we're ready for NAFfA.
LB-S71
-2-
Three days from now it takes effect. Tomorrow, we'll publish the complete
regulations to implement it. They provide the detailed, specific guidance that the trade
community needs.
Think about this: the agreement was approved by Congress just a month ago, and
we're ready with the regs tomorrow. That's an amazing accomplishment.
We're ready because in blind faith, a group of Treasury and Customs employees,
together with their counterparts from Mexico and Canada, have been working for 18
months to ensure everything would be in place on day one. And it will be.
I don't usually brag about rules, but there's something else that's unusual -- the
rules are the same for all three countries. They apply trilaterally.
So, if you're a U.S. company, and sell in all three countries -- you only have to
know one set of rules. Not three -- just one. That helps big companies, but think of
what that could mean to small businesses that don't have the time or the resources to
worry about three sets of rules. That will be of tremendous assistance.
On the first of January, it won't be like turning on a switch, and suddenly 500
trucks are waiting in line to cross the border.
.
You'll see a gradual increase in traffic, and over time I think you'll see a big
Increase.
And just remember, every truck you see, means more jobs. In fact, I wouldn't
mind seeing lots of congestion!
-30-
FOR IMMEDIATE RELEASE
December 29, 1993
CONTACf: Scott Dykema
(202) 622-2960
U.S.-MEXICO TAX TREATY TO TAKE EFFECf IN 1994
The Treasury Department announced Wednesday that a new tax treaty between
the United States and the United Mexican States will take effect January 1, 1994.
The treaty is the first income tax treaty between the United States and Mexico. It
will significantly complement the existing agreement between the U.S. and Mexico on the
exchange of tax information, signed on November 9, 1989.
The new accord doesn't affect the North American Free Trade Agreement
approved by Congress in November. However, some joint ventures involving U.S.,
Canadian and Mexican investors will now, as a result of NAFfA, be able to take
advantage of tax treaty benefits, including lower withholding rates on interest, dividends
and royalties.
The income tax treaty was approved by the U.S. Senate on November 20. The
United States and Mexico exchanged diplomatic notes December 28, bringing the treaty
into force.
The new treaty will generally take effect for taxable years beginning on or after
January 1, 1994.
Copies of the new treaty may be obtained by writing the Office of Public Affairs,
Room 2315, Department of the Treasury, Washington, D.C. 20220, or calling (202) 6222960.
-30LB-572
FOR IMMEDIATE RELEASE
December 29, 1993
CONTACf: Scott Dykema
(202) 622-2960
PROTOCOL TO U.S.-BARBADOS TAX TREATY TO TAKE EFFECf IN 1994
The Treasury Department announced Wednesday that a protocol amending the
income tax treaty between the United States and Barbados will take effect January 1,
1994.
The protocol updates the treaty between the United States and Barbados, which
was signed on December 31, 1984.
The protocol was approved by the Senate on November 20. Tain Tompkins, the
U.S. charge d' affaires in Barbados, and David Thompson, the Barbadian Minister of
Finance, exchanged instruments of ratification in Bridgetown Wednesday morning.
The new treaty generally will take effect for taxable years beginning on or after
January 1, 1994. For taxes withheld on interest, dividends and royalties, the new treaty
takes effect for amounts paid or credited on or after on February 1, 1994.
Copies of the new treaty may be obtained by writing the Office of Public Affairs,
Room 2315, Department of the Treasury, Washington, D.C. 20220, or calling (202) 6222960.
-30-
LB-573
FOR IMMEDIATE RELEASE
December 30, 1993
TREASURY SECRETARY LLOYD BENTSEN'S
1993 YEAR-END STATEMENT
I'll remember 1993 as the year we got the economy back on solid ground. People
don't speak of recessions anymore. The economic future of this country is brighter than
it's been in a long time.
I'm confident the good news will continue in 1994 for a number of reasons, but
mostly because we showed Americans that government can take tough, painful actions to
cut costs.
In 1993, we saw the deficit decline. The number I want every American to
remember is the $500 billion that we've pledged to take out of the system over the next
five years. That's our bottom line.
Of course, the big challenge is to cut the deficit -- and still grow. In 1993, we've
seen steady growth that has accelerated lately into a solid pattern.
GDP went from 0.8 percent first quarter, to 1.9 percent second quarter, to 2.9
percent third quarter, and I think we'll see a stronger fourth quarter -- something
between 4 and 5 percent. Compare that to Europe or Japan -- where there's no growth.
Next year, I'd like to see us achieve 3 percent real growth and hold inflation to
approximately 3 percent. This should allow interest rates to remain relatively low and
reduce further the rate of unemployment.
There's another reason why I'm confident the economy will have some kick in it
in 1994: corporate America. American companies have cut costs, improved efficiency,
and upped quality. Many of their products are hot sellers.
You can see it in the auto and housing industries and that has spread to furniture
and building "Supplies. For eight months we've seen increases in retail sales.
I also like the strength of business investment, primarily in equipment. We get
carried away in Washington taking credit for things, but I think it's fair to take credit for
deficit reduction, which led to low interest rates for businesses.
LB-574
Our companies' cost of capital compared to what their competitors in Japan were
paying just a few short years ago was an enormous disadvantage. We've turned that
around and we want to keep placing heavy emphasis on investment.
It's tough to add jobs when big companies are still slashing and we're downsizing
defense. But on average, we gained 162,000 jobs per month since October. The
unemployment rate is down to 6.4 percent -- from 7.1 percent in January. Compare that
to Europe, where you see double-digit rates.
As I look to next year, I want to tackle some of the domestic issues like health
care and crime, and I look to expanding markets for American products. I'll be heading
to China and Southeast Asia in January.
So, let's call 1993 a good year. And we're ready to do whatever is needed to
make 1994 an even more prosperous one.
-30-
Contact: Hamilton Dix
(202) 622-2960
FOR IMMEDIATE RELEASE
December 30, 1993
TREASURY ANNOUNCES CIVIL PENALTY AGAINST DAM EN FEDERAL
The Treasury Department today announced that Damen Federal Bank for Savings
of Chicago has paid a civil money penalty of $100,000 for failing to file currency
transaction reports as required by the Bank Secrecy Act (BSA).
The violations occurred during 1989-1991 and involved multiple same day
currency transactions conducted by an officer of the bank. The case was developed
through a compliance examination conducted by the Office of Thrift Supervision (OTS).
Treasury and the bank agreed on the amount of the penalty in complete
settlement of the bank's civil liability under the BSA. In determining the amount of the
penalty, Treasury considered subsequent improvements in the bank's BSA compliance as
noted in recent OTS examinations.
Treasury has no evidence that the bank or any of its employees or officers
engaged in any criminal activities in connection with these reporting violations.
In announcing the penalty, Deputy Assistant Secretary (Law Enforcement) Faith
Hochberg said, "This penalty sends a message to the financial community that it is
important to monitor the activities of insiders as well as customers."
Hochberg commended the Office of Thrift Supervision for its assistance in this
matter and for the effective BSA compliance reviews conducted by the agency.
The BSA requires banks and other financial institutions to keep certain records,
to file reports on currency transactions in excess of $10,000 and, under some
circumstances, to file reports on the international transportation of currency, travelers
checks and other monetary instruments in bearer form. The purpose of the reports and
records is to assist the government in combatting money laundering as well as for use in
ciVil, criminal, tax and regulatory investigations.
-30-
LB-575
J
I",
FOR RELEASE AT 2:30 P.M.
December 30, 1993
'
;
J
~U0
CONTACT:
Office of Financing
202/219-3350
TREASURY'S 52-WEEK BILL OFFERING
The Treasury will auction approximately $16,000 million of
52-week Treasury bills to be issued January 13, 1994. This
offering will provide about $1,200 million of new cash for the
Treasury, as the maturing 52-week bill is currently outstanding
in the amount of $14,809 million.
In addition to the maturing
52-week bills, there are $25,698 million of maturing 13-week and
26-week bills.
Federal Reserve Banks hold $10,085 million of bills for
their own accounts in the three maturing issues. These may be
refunded at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $4,013 million of the three
maturing issues as agents for foreign and international monetary
authorities. These may be refunded-within the offering amount at
the weighted average discount rate of accepted competitive
tenders. Additional amounts may be issued for such accounts if
the aggregate amount of new bids exceeds the aggregate amount of
maturing bills.
For purposes of determining such additional
amounts, foreign and international monetary authorities are
considered to hold $351 million of the maturing 52-week issue.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C. This offering of Treasury securities is
governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356, published as a final rule on
January 5, 1993, and effective March 1, 1993) for the sale and
issue by the Treasury to the public of marketable Treasury bills,
notes, and bonds.
Details about the new security are given in the attached
offering highlights.
000
Attachment
LB-576
HIGHLIGHTS OF TREASURY OFFERING OF 52-WEEK BILLS
TO BE ISSUED JANUARY 13, 1994
December 30, 1993
Offering Amount .
.
.
.
.
.
Description of Offering:
Term and type of security .
CUSIP number . . . . . . .
Auction date . . . . . . .
Issue date . . . .
Maturity date • . . • . . .
Original issue date
Maturing amount. . .
...
Minimum bid amount . . . .
Multiples . . . . . . . . .
submission of Bids:
Noncompetitive bids
$16,000 million
364-day bill
912794 P8 1
January 6, 1994
January 13, 1994
January 12, 1995
January 13, 1994
$14,809 million
$10,000
$1,000
Accepted in full up to $1,000,000
at the average discount rate of
accepted competitive bids.
( 1) Must be expressed as a discount rate
with two decimals, e.g., 7.10%.
(2) Net long position for each bidder
must be reported when the sum of the
total bid amount, at all discount
rates, and the net long position are
$2 billion or greater.
(3) Net long position must be reported
one half-hour prior to the closing
time for receipt of competitive bids.
Competitive bids
Maximum Recognized Bid
at a Single Yield
35% of public offering
Maximum Award .
35% of public offering
.
.
.
Receipt of Tenders:
Noncompetitive tenders
Prior to 12:00 noon Eastern Standard
time on auction day.
Prior to 1:00 p.m. Eastern Standard
time on auction day.
Competitive tenders
Payment Terms .
.
.
.
.
.
.
Full payment with tender or by charge
to a funds account at a Fede~al
Reserve bank on issue date.
DEPARTMENT
OF
THE
TREASURY
NEWS
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR IMMEDIATE RELEASE
December 30, 1993
CONTACT: Scott Dykema
(202) 622-2960
U.S.-SLOVAK TAX TREATY TO TAKE EFFECT IN 1993
The Treasury Department announced Thursday that a tax treaty between the
United States and the Slovak Republic will take effect January 1, 1993.
This is the first tax treaty between the two countries.
The new treaty was approved by the Senate on November 20. Instruments of
ratification were exchanged in Washington Thursday.
The new treaty generally will take effect for taxable years beginning on or after
January 1, 1993. For taxes withheld on interest dividends and royalties, the new treaty
takes effect on February 1, 1994.
Copies of the treaty may be obtained by writing the Office of Public Affairs,
Room 2315, Department of the Treasury, Washington, D.C. 20220, or calling (202) 6222960.
-30--
LB-577
Revised
UBLIC DEBT NEWS
RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
Tenders for $12,634 million of 13-week bills to be issued
January 6, 1994 and to mature April 7, 1994 were
accepted today (CUSIP: 912794J88).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
3.09%
3.10%
3.10%
Investment
Rate
3.16%
3.17%
3.17%
Price
99.219
99.216
99.216
$15,000,000 was accepted at lower yields.
Tenders at the high discount rate were allotted 88%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Received
$55,170,706
_ Accepted
$12,633,925
$50,419,275
1,321,617
$51,740,892
$7,882,494
1,321,617
$9,204,111
3,029,630
3,029,630
400,184
$55,170,706
400,184
$12,633,925
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
An additional $110,816 thousand of bills will be
issued to foreign official institutions for new cash .
•B-578
LIe DEBT NEWS
RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
Tenders for $12,623 million of 26-week bills to be issued
January 6, 1994 and to mature July 7, 1994 were
accepted today (CUSIP: 912794M35).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
3.27%
3.29%
3.29%
Investment
Rate
3.37%
3.39%
3.39%
Price
98.347
98.337
98.337
$15,010,000 was accepted at lower yields.
Tenders at the high discount rate were allotted 27%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Received
$47,065,200
Accepted
$12,623,053
$41,390,083
960,276
$42,350,359
$6,947,936
960,276
$7,908,212
3,100,000
3,100,000
1,614,841
$47,065,200
1,614,841
$12,623,053
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
An additional $447,659 thousand of bills will be
issued to foreign official institutions for new cash.
LB-579
DEPARTMENT
OF
THE
TREASURY
ISOO PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR IMMEDIATE RELEASE
Text as Prepared for Delivery
January 4, 1994
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
FEDERAL LAW ENFORCEMENT TRAINING CENTER AWARDS CEREMONY
WASHINGTON, D.C.
Somebody figured out I gave 180 speeches last year, and I figured out it was
about 100 too many.
But I told my staff that the first speech I give in 1994 must be on crime. I hope
you see symbolism in that, because this year crime is a priority for me personally, and for
us at Treasury.
I'm going to be working closely with Janet Reno, and Congress -- Steny Hoyer is
here, and we'll be working at the state and local levels. Today, I had breakfast at ATF
with heads of the nation's law enforcement organizations - they're here now, and I
appreciate your coming.
Now, I've learned when you're Secretary of the Treasury and you discuss
monetary policy, or a new tax program, you have to be careful because Treasury
Secretaries can take the price of the dollar or the price of stock, up or do~n.
Butl when you're the Secretary of the Treasury and you say something about cri,me
-- well, that's another matter. Not a lot of people even know we're into law
enforcement.
Do you know how I can tell? My mail. When people write to me and say "don't
raise my taxes" they begin the letter: "Dear Mr. Secretary." When they write to say "stop
crime," the letters start: "Dear Senator Bentsen!"
Well, I don't vote anymore. Here, we enforce what's on the books. If you take
out IRS from Treasury, 63 percefit of our staff is law enforcement.
.
We also can propose changes and initiatives -- and I'll do some of that, especially
msofar as ATF is concerned. In the coming months, we'll make more suggestions.
LB..5Bu
-2-
First, let me tell you a story someone on the staff told me about his wife. She
went back to teaching this fall after taking off several years to raise their kids. First
week in her classroom she noticed a blind was always drawn. She wanted to brighten the
place for the kids, so she pulled the blind up -- and in the window were bullet holes.
I think back late last year, to when Walter Annenberg was at the White House
with the President to announce his generous gift to public education. And what hit me
was why he gave the money -- violence.
Do you think that Johns Hopkins, or James Duke, or Leland Stanford gave their
gifts and built their great institutions of higher learning because of violence?
Here we are, the country that invented public high schools, the democratic society
that wanted to make sure none of our kids were cheated out of an education, and now
we're letting violence endanger innocent children.
It comes down to one word: guns.
I'm a gun owner -- been one all my life. Still have the.45 I used when I crashed
in Yugoslavia in a B-24. And I'm a hunter -- went quail hunting two weeks ago.
But when I went to school, students didn't walk in with fmgers on a trigger. Now
in Texas a young adult is more likely to die from gunfire than from a traffic accident.
Think about that.
We have over 200 million guns. Every 10 seconds a gun rolls off an assembly
line. Every 11 seconds we import a gun. Last week a plane landed in Columbus, Ohio
-- brought in 19,000 guns -- from Russia.
All these guns -- yet we haven't had a war going on inside this country for 129
years.
One of our responsibilities at ATF is to license firearms dealers. Let me explain
our problem. There are 284,000 gun dealers -- 31 times more gun dealers than there are
McDonald's restaurants.
Why so many? It's cheap. Best bargain in town.
A new license costs $66 a year, even though it costs the taxpayer about $600 a
year per license. And up until the President signed the Brady Bill, it was only $10 a year
for a license.
-3-
To sell liquor in the five boroughs of New York, it costs $5,200 for a three-year
license. To teach Spanish and history in New York, it costs $200 for a teacher's
certificate. But to sell guns in New York, it's only $66. I spend more than that taking
my wife to a Broadway show.
That isn't just ridiculous. That goes all the way to reckless.
The fee under the Brady Bill has gone up -- but my friends, it's not enough.
It may stop some people from getting a firearms license. Many people get
licenses -- not to sell firearms -- but to buy them cheap, for themselves. They can plop
down $66, call themselves a wholesaler, and buy direct from the manufacturer -so instead of having to pay, say, $400, they pay $250.
We've done studies at ATF, and found 45 percent of licensed dealers don't
acquire any firearms. Another 36 percent acquire less than 10 a year. I can tell you that
you don't rent retail space to sell 10 guns. You do that out of your kitchen or your
car trunk.
In the District of Columbia, there are 49 licensed firearm dealers -- but not one
sells handguns. They can't. It's against the law. You see, under federal law, A TF must
go ahead and license the dealers, but it's against the District's law to sell handguns.
Now, is that a crazy system -- or what?
Who loses in all this? The actual dealers. The taxpayers. ATF.
John Magaw has 240 field inspectors dedicated to inspecting applicants -- and you
tell me how 240 people can monitor and inspect 284,000 current licensees and the 3,000
new applicants we're getting in per month?
Now I never met a law enforcement officer who didn't tell me they needed more
money, more resources, and more cops. It's tough to come up with resources, when we
have a shrinking budget and the President is committed to reducing the deficit and the
Vice President is committed to efficient government. It's a difficult time to get through
new initiatives.
But spending isn't always the answer -- not when the problem is the system itself,
or the laws on the books. Sometimes, good old common horse sense ought to be the
answer.
One other thing -- I'm not up here pretending these initiatives will solve all our
violence. Back in 1968, Congress passed a gun bill that set forth the licensing system,
right after Martin Luther King and Robert Kennedy were killed. It hasn't stopped the
violence, because there's an awful lot we don't know.
-4-
Some things we don't know because ATF is prohibited from collecting
information.
And we don't know where these guns are all coming from. If I drew a big circle,
maybe one third of the guns criminals get are from licensed dealers. Then there's the
other two-thirds. The off-the-street-sales; the criminals who trade drugs for guns, or who
pick them up during burglaries; the black market; the flea markets; or the kids who get
them from their parents. No law enforcers -- not 400, not 4,000, not 400,000 -- can stop
that.
The men and women of Treasury are doing their best, giving everything they have
to come up with new answers. I've sent a four-part anti-violence initiative to the
President. Some parts will require legislation. Some will require funds from the Crime
Bill. Some I'll direct Ron Noble to initiate immediately. In fact, some things, we've
started already.
Let me run you through the initiatives.
First is ATF Law Enforcement. It starts with the Brady Bill.
effect the 28th of February, we'll be ready.
When it takes
It's our job to draft and implement the regulations, and I can tell you that through
the holidays, the midnight oil kept burning at ATF. We're also developing new forms
for compliance, and putting plans in place to notify and educate all parties affected by
the law.
And we're trying to answer the big question: "Where's the money to do these
background examinations?" ATF is developing a model local agents can use to recoup
the costs through a user fee.
In addition, I'm directing ATF to identify all gun dealers for the local police.
Today, I've also directed ATF to begin a program that addresses specific gun
trafficking patterns in the 10 counties in this country with the biggest crime problems.
They account for 23 percent of the nation's felonies.
They are Los Angeles, Orange, and San Diego Counties, in California;
Cook County, Illinois; Harris and Dallas Counties, in Texas; Maricopa County, Arizona;
Wayne County, Michigan; Dade County, Florida; and New York City.
We also have some good programs that we'd like to focus our attention on.
-5-
Specifically, Project Uptown, which addresses the use of firearms in housing
developments. A TF started this in New York City, and we moved into Baltimore last
year. The Achilles program is another one. Here we're going after the shooters -- the
armed career criminals in the highest crime precincts in the country. Criminals who
commit, on average, three crimes a week with a firearm.
One other thing: I believe the most important tools officers have aren't the ones
they carry or load. It's the one between their ears. As we put 100,000 new officers on
the streets, Treasury's Federal Law Enforcement Training Center must be ready to assist
state and local police in training them.
The second initiative is Federal Firearms License reform. It makes no sense to
have 284,000 gun dealers. If we think the best way to lock up criminals is having ATF
inspectors spend all day issuing licenses, we should be the ones locked up.
We don't want to get rid of the actual dealers -- just everybody else. It's time to
change.
We'll ask that the licensing fee be raised to $600 annually. This should eliminate
200,000 dealers, leaving only the actual ones in place. And it will end the defacto
taxpayer subsidizing of the gun business.
We've started eliminating gun dealers in New York on a pilot basis. Working
with the local police, they set up a new screening and investigative process for firearm
license applications.
They've met with success. Since the project began, 90 percent of applications
have been either withdrawn or denied. Before, 90 percent were granted.
But let's not be naive about this. A gun on New York's black market costs
four times more than in Virginia. So, where do you think most of the guns in New York
come from? Virginia.
In two weeks I'm going to China, where guns were invented. I read something
interesting -- it took those guns from China 50 years before they made their way to
Europe. Now, every five minutes we worry about weapons proliferation -- interstate.
We also support Senator Simon's amendment on the Crime Bill, and want to see
it strengthened as it makes its way through the House. My friend Paul Simon has been a
leader on this issue for some time.
-6-
Specifically, we want ATF to have more discretion in granting licenses. We don't
want to keep licensing gun dealers to do something that violates local laws. We want to
change the law so that if a dealer is convicted of a felony his license is immediately
suspended or revoked -- even if an appeal is pending. And we want dealers to provide
us with more timely access to recorded information when we need it for an investigation.
Most dealers are helpful. But there are always some, like the one who tells our
agents: "Sure, you can see my records, between the hours of 2 and 5 on a Sunday
morning." They're not stopping in to say "hi" and have a cup of coffee. Somebody has
been shot -- and they need information -- and now.
The third initiative is intelligence, cracking down on the illicit gun market. A
useful tool to all law enforcement officers is when ATF traces firearms. We now do
50,000 traces a year.
It takes special expertise to initiate a trace, and not just for firearms, but
explosives. I think back one year ago, when an ATF agent found in a pile of rubble a
vehicle identification number on a van, and that lead to the suspects in the World Trade
Center bombing.
Or the bombing last week in Rochester -- ATF agents traced that one down
within hours.
To further strengthen our efforts in this regard, we're drafting legislation requiring
a permit for purchase of any explosive materials and making the theft of any such
explosives a felony.
On guns, if everything goes right, ATF can do a priority trace in minutes. ATF
traced John Hincldy's gun in 16 minutes.
It took five hours to trace the gun of the Long Island subway shooter. Now police
caught that gunman, but let's say they hadn't .- and he had escaped, but he had dropped
his gun. A trace would have provided essential intelligence.
And traces are extremely important in cracking down on the source of weapons,
including the sources for our juveniles.
So today I'm asking ATF to beef up its National Tracing Center, so that they can
computerize records that now sit in a warehouse.
We'll also seek changes in the law. We'll try to make it a felony if a dealer
willfully fails to maintain required records or falsifies records. And we want to require
dealers to report any lost or stolen firearms within 24 hours.
-7-
One more program under this initiative is called Ceasefire, which is being tested
in the District of Columbia. This uses high-tech computer systems to inventory, identify,
and match bullet projectiles, much like fingerprint systems. We can take the bullets
from unrelated crime scenes and determine if the same gun was used, even if we have
not yet recovered the gun.
The fourth and final initiative is crime prevention. Here, we want to continue our
GREAT program. GREAT stands for the Gang Resistance Education and Training
Program.
ATF agents instruct local officers how to go into schools and convince seventh,
fourth, and third graders that drugs and gangs are bad.
People who complain that government is stale ought to talk to Senator
DeConcini. He was the architect of GREAT, and he can introduce you to youngsters
who walked away from gangs because of this.
Now, all of the initiatives I announced today -- these targeted, tested programs -add up to $81 million; $71 million is provided for in the Senate-passed version of the
crime bill, which we support; $10 million will come from a combination of existing and
new resources in the President's '95 budget.
Let me end with this. As much as the President and I think of these initiatives,
we won't stop violence until we fix some societal problems.
I know Treasury law enforcement people understand that. Mer they put 50 or 60
hours in, I hear stories of hundreds of them going back to the communities they serve as
volunteers in our Project Outreach program. They mentor and they become role models
to the unluckier kids who have no father or mother at home. They know, we have to
help children, one child at a time.
Or I look to those programs businessmen and communities across the country are
doing -- trying to get guns and ammunition off the streets, one gun at a time.
We're making progress, but we have tens of millions of guns to go.
So, we want to move forward with these initiatives, we want to keep working with
Justice, with Congress, and with state and local agencies.
We just want to make it harder for the criminal to get guns, and easier for us to
find criminals who use them.
-30-
lREASURY
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR IMMEDIATE RELEASE
January 4, 1994
Contact: Hamilton Dix
(202) 622-2960
SECRETARY BENTSEN PRESENTS lAW ENFORCEMENT AWARDS
Treasury Secretary lloyd Bentsen presented the third annual Awards of Excellence
in Law Enforcement Training in a ceremony Tuesday at the Department of the Treasury.
In presenting the awards, Secretary Bentsen said, '1 believe the most important tools
officers have aren't the ones they carry or load. It's the one they carry between their ears.
As we put 100,000 new officers on the streets, FLETC (Federal Law Enforcement Training
Center) must be ready to assist state and local police in training them."
Edward J. Nowicki, coordinator/instructor of curriculum for police recruit training,
Milwaukee Area Technical Collegereceived the Individual Achievement Award. Mr. Nowicki
was recognized for his innovative leadership and sustained dedication to increasing public
awareness and improvement of law enforcement standards and training.
The California Commission on Peace Officer Staridards and Training (POST),
California Law Enforcement Command College in Sacramento, California receive"d the
Large Organization Award. They were recognized for demonstrated leadership and
innovation in meeting training needs of law enforcement managers and executives through
the use of "futures" training methodology. Representing the California POST was Dr. Nora
Boehm, executive director.
To underscore the critical role law enforcement training plays in achieving these
goals, the FLETC, a bureau of the Treasury Department, has established the Awards of
Excellence to recognize individuals and organizations who make significant contributions to
the law enforcement training profession. These national awards are granted annually.
"Quality training is the foundation upon which the successful law enforcement
officer's career is built," said FLETC Director Charles F. Rinkevich. "As the nation's largest
law enforcement training organization, it is appropriate that the FLETC sponsor the awards
to recognize outstanding achievements by individuals and organizations in law enforcement
training."
(OVER)
LB-581
The FLETC is an interagency training center serving 70 federal law enforcement
training organizations. While the major training effort is providing basic training programs
to federal police and investigators, the FLETC also conducts many advanced training
programs, and assists federal, state and local agencies in conducting specific training
programs. Last year, 24,000 students were trained at the FLETC, either at its headquarters
in Glynco, Georgia, or at one of its satellite training centers at Artesia, New Mexico, or
Tucson, Arizona
-30-
J.
l~d~UI'y ~nme
\..-ontro. Initiatives Summary
*
the Bureau of Alcohol, Tobacco and Firearms (ATF) is responsible for the enforcement and administration of
Federal laws as well as collecting excise taxes ($14 billion in FY 93) on alcohol, tobacco and firearms. Its staff
of 4,300 -- 2,100 special agents and 850 compliance inspectors in 26 field offices and 300 subordinate offices -works closely with state and local law enforcement agencies around the country.
*
Guns in the U.S. There are an estimated 200 miIIion firearms in civilian hands in th~ U.S. Nearly 4 miIIion new
firearms enter the marketplace annually. Each year an estimated 639,000 A!'1ericans will be confronted by a
criminal armed with a handgun. Between 130,000 and 270,000 firearms are takell to school every day by juveniles.
*
Brady Bill (signed into law on November 30, 1993). The Treasury Department, through ATF, is responsible for
drafting and implementing the Federal regulations bu February 29, 1994, for the 5-day waiting period to purchase
a gun. Justice is responsible for developing the computerized criminal information network for the "Instant Check".
In support of the Presidefll's anti-crime commitmefll, Treasury supports the following initiatil'es:
*
Federal Firearms License (FFL) Reform. Federal law requires that all persom who engage in the business of
selling firearms be licensed by ATF. At present there are 284.000 FFL holder~ in the U.S.; over 70 percent of
those are not "engaged in the business" as required by law. We strongly support Senator Simon's FFL reform
package included in the Senate Crime Bill. which would:
require the submission of photos and fingerprints with an FFL application:
require FFLs to notify promptly A TF and local authorities of firearms thefts:
impose additional recordkeeping requirements for FFLs and greater penalties for non-compliance; and
require FFLs to comply with local business ordinances.
In addiTion. Treasury proposes To:
increase the FFL fee to $600 per year by 1995;
increase the penalty from a misdemeanor to a felony for willful falsification of FFL records; and
provide ATF the authority to immediately revocate a license upon the felony conviction of the licensee.
*
Treasury supports other Senate-passed Crime Bill legislation:
a ban on the manufacture, sale and possession of semi-automatic assault weapons;
prohibitions on large capacity ammunition cartridges;
a ban on cop-killer bullets which are designed to pierce bullet proof vests; and
a prohibition on the transfer or sale of handguns to juveniles.
New York City Pilot Project. ATF, in cooperation with the New York City Police Department has developed a
pilot firearms dealer licensing project which was designed to deny FFLs to dealers who intended to use their license
for criminal purposes, thereby limiting the number of illegal firearms in the city. Since the program began, 90
percent of the FFL applications have either been withdrawn or denied. Previously, 90 percent were granted. For
most firearms sold on the black market in New York City, the black market price is four times that of the state of
origin. We propose to expand this project to other cities with serious gun violence problems.
*
Intelligence. Treasury proposes to expand our firearms trace capability to assist Federal, State and local law
enforcement in their criminal investigations. We plan to expand a pilot project currently in Washington, D.C.,
called Operation Ceasefire. Ceasefire utilizes new technology to identify projectiles found at crime scenes, and has
provided valuable information to law enforcement linking otherwise unconnected cases.
*
Law Enforcement. Treasury proposes to expand law enforcement programs. such as "Achilles" which targets
armed career criminals; and Project Uptown which focuses on crime infested public housing. In addition, ATF will
study the illegal gun markets irl the 10 major counties where ~1 percent of the nation's felony crimes are reported.
*
Explosives. Explosives are currently sold over the counter without a background check. Treasury is developing
legislative changes which will in part include the issuance of permits to buy explosives.
*
Prevention:
G.R.E.A.T. With the leadership of Senator DeConcini. ATF has developed the Gang Resistance
Education and Training (GR.E.A.T.) program, a year-round, school based program designed to help
children become responsible members of society, resist negative pressures, learn how to resolve conflicts
and understand how gangs and drugs negatively impact the quality of their lives. G. R. E. A. T. is underway
in 12 cities; Treasury supports the Senate Crime bill provisior. to add 50 new sites.
Project Outreach. Recognizing that poverty, unemployment, and community disillusionment contribute
to the nation's crime crisis, Treasury law enforcement agents and other employees volunteer their time to
reduce the demand for drugs, teach CPR, tutor children. and other endeavors to improve their
communities.
DEPARTMENT OF THE TREASURY
WASHINGTON, D.C. 20220
TREASURY DEPARTMENT ANTI-GUN, ANTI-VIOLENCE PROGRAM
The Treasury Department, through the Bur~u of 'Alcohol, tobacco and
Firearms (ATF), has responsibility for enforcing federal gun control laws,
regulating the firearms industry, and collecting taxes on firearms and
ammunition.
ATF is responsible for the enforcement and administration of federal laws as
well as collecting excise taxes ($14 billion in FY 93) on alcohol, tobacco and
firearms. ATF has a staff of 4,300, including 2,100 special agents and 850
compliance inspectors in 26 field offices and 300 subordinate offices and
3 overseas offices, working closely with state and local law enforcement
agencies around the country.
There are potentially 200 million firearms in civilian hands in the United
States. Nearly four million new firearms enter the marketplace annually. It is
estimated that each year, nearly 639,000 Americans will be confronted by a
criminal armed with a handgun. Between 130,000 and 270,000 firearms are
taken to school every day by juveniles.
Treasury will seek $10 million to carry out initiatives related to enforcing
federal gun control laws and curbing violence from a combination of existing
and new resources. Moreover, $71 million for additional initiatives already is
provided for in the Senate-passed crime bill. The Treasury Department will
work with the Congress to achieve this level of funding.
Brady Law:
-- The signing of the Brady law on November 30, named after President
Reagan's Press Secretary, James Brady, took seven years to enact. The bill
requires that all handgun purchasers will undergo a background check before
they actually get a handgun. A recent study showed that nearly 30% of
criminals in state prisons went to a gun shop to obtain firearms.
-- This is an important improvement in the way guns are sold. Treasury will
ensure that implementing regulations are in place by February 28, when the
waiting period and background check provisions become effective.
Effective 11130/93:
* Raises
initial fee for federal dealer's or pawnbroker's license from $10 a
year to $200 for initial three years and $90 for a three year renewal.
2
* Federal Firearms Licensees (FFLs) are required to submit
r~ports
to state
or local law enforcement agencies when selling two or more handguns in five
working days.
* Common carriers prohibited from placing labels or written notices on
packages indicating the packages contain firearms. On interstate or foreign
commerce deliveries, the carrier is required to get a written receipt from the
recipient of a package containing firearm(s).
* Penalty for not complying with multiple sales or common carrier
provisions by licensee or carrier is not more than five years imprisonment
and/or $250,000 fine.
* It is a federal felony to steal firearms from the business inventory of a
Federal Firearms Licensee (FFL). Penalty: Not more than ten years
imprisonment and/or $250,000 fine.
Effective 2/28/94:
-- Unlawful for Federal Firearms Licensee (FFL) to sell a handgun to
nonlicensee unless:
* obtains statements
from purchaser verifying identity and that purchaser is
not prohibited from receiving or possessing a firearm.
* verifies identity of purchaser by examining identification documents
required by ATF (e.g. driver's license).
* notifies
"local chief law enforcement officer" within 24 hours with
information from buyer. (Note: The Departments of Treasury and Justice are
working on the designation of "local chief law enforcement officer". The
designee may vary from jurisdiction to jurisdiction.)
* gives copy of purchaser's statement to "local chief law enforcement
officer" within 24 hours.
* waits
five business days before transferring handgun to purchaser.
-- Exceptions:
* statement from local chief law enforcement officer that handgun needed
because of threat to life of purchaser or family.
* State handgun license issued within past five years and state law requires
3
that an authorized government official verify that possession of a handgun is
not in violation of law.
* State law requires that an authorized government official verify that
available information does not indicate that the transferee's possession would
be in violation of law.
* Handguns approved
for transfer under the National Firearms Act.
* Certification by ATF that compliance is impracticable because the
remoteness of the FFL premises in relation to the location of the chief law
enforcement officer.
-- Penalties for FFL non-compliance
* Criminal penalties:
Not more than one year imprisonment and/or
$100,000 fine.
* Administrative action: Revocation of license.
-- The Treasury Department is responsible for implementing Brady law
through regulations and enforcement of law as it pertains to licensees,
shippers, and purchasers.
-- The Justice Department is responsible for developing a national
computerized records system allowing an instant check of purchasers. Waiting
period will be replaced by instant check in five years. Justice is also
responsible for ensuring police departments comply with time limits on
retention of records and receiving certifications of compliance.
-- State and local agencies are responsible for making "a reasonable effort" to
determine if purchaser is a prohibited person. Responsible for complying with
records retention and certification requirements. Also required to respond in
20 days to a request from a purchaser for the reason they were prohibited from
making a purchase. State and local agencies are protected from civil liability
arising from failure to prevent a transaction or from preventing a sale to a
non-prohibited person.
-- ATF is developing model state and local legislation providing a system for
agencies to recoup the cost of the background checks through licensed firearms
dealers. There is no provision for federal funds to offset the cost to law
enforcement agencies of conducting the checks.
4
Federal Firearms License Refonn
-- Federal law requires that all persons who engage in the business of
manufacturing, importing and selling firearms must be licensed by the Bureau
of Alcohol, Tobacco and Firearms. The law also requires that persons who
obtain such licenses must engage in the business. Licenses must be issued to
all applicants who are not prohibited persons, who are 21 years of age and
older and who have a premises from which they will conduct such business.
-- Federal law does not require that the licensee be in compliance with state
and local laws to obtain a license.
-- Currently, there are over 284,000 licenses. ATF has only 240 inspectors
dedicated to the inspection of these licensees to ensure compliance with the
law.
-- Over 70% of the persons holding licenses are not engaged in the business as
required by law.
-- The Treasury Department is supporting the reforms of the federal firearms
licensing program contained in the Senate Crime Bill including:
* requiring the submission of photographs and
fingerprints by all
applicants to insure adequate identification of applicants.
* requiring certification by applicant of compliance with state and
local laws. Applicant for license must certify compliance and be
in compliance within 30 days of obtaining a federal license. Chief
law enforcement officer must be notified by applicant of intent to
conduct a firearms' business.
* ATF required to notify chief state and local law enforcement
officers of names and addresses of licenses issued.
* FFL's must respond in 24 hours to ATF requests for information
when a firearm is being traced.
* FFL's
must report thefts and losses of firearms within 48 hours
to ATF and local authorities.
5
-- The Treasury Department is seeking enhancement of these reforms to
include:
* Raise the license fee to $600 a year. This matches the cost of
issuing the license.
* Establish immediate revocation of a license upon the felony
conviction of the Federal Firearms Licensee(FFL).
* Establish periodic reports by FFL's ensuring that authorized
business operation is occurring.
* Reform the definition of prohibited person. Currently, the
definition is dependent on a myriad of conflicting state statutes.
* Increase the penalty from a misdemeanor to a felony for willful
falsification of records by an FFL.
* ATF will work with state and local agencies to replicate a
successful project in New York City in which local authorities and
ATF inspectors are preventing 90 % of FFLs from being issued by
ensuring full compliance with all applicable laws. Formerly, 90%
of license applications were approved.
Intelligence
-- It is essential that ATF be able to provide responses to gun trace requests
quickly in order to help solve violent crimes. Equally important is that ATF
be able to process the intelligence gained from traces to spot illicit trafficking
operations and criminal sources of firearms.
-- The President has expressed a commitment to support modernization and
automation at ATF' s National Tracing Center as essential to achieve the full
potential of this vital intelligence.
-- Legislation (covered under FFL reform) is necessary to allow ATF access to
essential information.
-- Automation is essential for ATF to be able to realize the full potential of its
tracing capability. ATF is statutorily prohibited from maintaining a data base
of current business records. However, FFL holders are required to submit
6
their business records to ATF when they go out of business. These records
are currently housed in boxes.
-- Nearly 40% of all traces require ATF to search these retired records from
the archives. Information reported on multiple sales and stolen firearms as
required in Brady and the crime bill should be automated and integrated into a
system useful to law enforcement.
-- ATF is now on-line with the most sophisticated ballistics computer program
in the world. Project Ceasefire identifies the markings left on projectiles and
cartridge casings and the computer automatically matches identical entries.
-- Expanding this program from the pilot effort in Washington, DC to six
additional cities will cost $5.2 million. These cities are New York, Atlanta,
Houston, Los Angeles, Chicago and St. Louis. Expansion of Project Ceasefire
will be funded through the Treasury Asset Forfeiture Fund.
Law Enforcement
-- ATF's Achilles Program emphasizes prosecution of the armed recidivist
offender. These career criminals, perhaps 15% of the criminal population,
account for over 70 % of serious crime.
-- In 1986, statutes were passed mandating prison terms ranging from five
years to life, without probation or parole, for subjects convicted of using
firearms while trafficking in narcotics and for violent career criminals who
possess firearms.
-- With the recognition that there is a violent marriage between guns and drug
trafficking, ATF committed itself to focusing these statutes in such a way that
would make weapons the "Achilles' heel" by which the powerful drug dealers
and armed career criminals could be brought down.
-- As part of this program, ATF has special Achilles Task Forces in 22 cities.
The task forces, with the help of state and local police, focus their efforts in
the highest crime areas. In fiscal year 1993, this program resulted in the
prevention of an estimated 220,000 serious crimes at a cost savings to
American taxpayers of $570 million. The Department will develop plans to
expand the Achilles Task Forces to additional cities.
-- Project Uptown focuses ATF's jurisdiction into high crime public housing in
New York City and Baltimore. It began as a joint effort between ATF and the
New York City Housing Authority Police Department, aimed at addressing
crime in selected public housing projects. Focusing on armed criminals and
7
gun wielding drug dealers, the task force was begun in 1989 and has been
credited with the nearly 40% decrease in violent crime in New York public
housing projects. In 1993, Project Uptown was extended to include a similar
joint effort in Baltimore. This program will be expanded to Chicago and New
Orleans.
-- ATF will conduct studies of the illicit gun trafficking patterns and trends in
the 10 major urban areas where 20% of the nation's sentencings for felony
crimes are reported. These areas are:
* Los
Angeles, California
* New York City, New York
* Cook County, Illinois
* Harris County, Texas
* San Diego, California
* Orange County, California
* Maricopa County, Arizona
* Wayne County, Michigan
* Dade County, Florida
* Dallas, Texas
-- The Federal Law Enforcement Training Center (FLETC), will develop a
training program for rural drug law enforcement officers.
-- New threats to the lives of the public safety officer appear almost daily.
Devastating bullets such as the Black Talon and the armor piercing M39B have
no place in the open marketplace. Treasury supports language in the Crime
Bill to restrict such ammunition, and is working with the Department of Justice
to develop a performance standard to be used to ban similar ammunition which
may be developed in the future.
Explosives
-- Under current law, explosives are sold over the counter with no background
check on the purchaser. The possession of explosives by convicted criminals
is not prohibited. Deadly precursor chemicals are sold with no reporting to
the government.
-- The Administration will make recommendations to the Congress requiring a
tighter system of ensuring that explosives purchasers are legitimate and
qualified, and that purchasers have a permit to buy explosives.
-- In addition, the Administration will seek tightening of the reporting
8
requirements governing the sale of explosives and the shipping of key
precursor chemicals.
-- The Treasury Department also will undertake research into a state-of-the-art
tagging system to aid in the identification and tracing of explosives used in
criminal bombings.
Prevention
-- Sponsored by Senator Dennis DeConcini, ATF introduced the Gang
Resistance Education and Training Program (GREAT) in 1991.
-- Nearly 500 police officers have received training in implementing the
program in their cities. Over 100,000 at risk youngsters have been reached by
this program which teaches self reliance, self esteem and resistance to negative
peer pressure and drug awareness education. This program also focuses on
alternatives to gang violence.
-- Currently, GREAT is being implemented in 12 cities. The Department
supports the Senate Crime Bill initiative to fund the participation of 50
additional cities. This will cost $40 million, half of which would go directly
to state and local law enforcement.
-- Project Outreach is a Treasury-wide program that brings to communities and
schools volunteers from Treasury law enforcement agencies. The agents and
employees teach skills such as CPR, provide tutoring, and serve as positive
role models for the young people.
DEPARTMENT
OF
THE
TREASURY
NEWS
'IREASURY
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR RELEASE AT 2:30 P.M.
January 4, 1994
CONTACT:
Office of Financing
202/219-3350
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $25,200 million, to be issued January 13,
1994. This offering will result in a paydown for the Treasury of
about $500 million, as the maturing 13-week and 26-week bills are
outstanding in the amount of $25,698 million. In addition to the
maturing 13-week and 26-week bills, there are $14,809 million, of
maturing 52-week bills. The, disposition of this latter amount
was announced last week.
Federal Reserve Banks hold $10,085 million of bills for
their own accounts in the three maturing issues. These may be
refunded at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $4,013 million of the three
maturing issues as agents for foreign and international monetary
authorities. These may be refunded within the offering amount
at the weighted average discount rate of accepted competitive
tenders., Additional amou~ts may be issued for such accounts if
the aggregate amount of new bids exceeds the aggregate amount
of maturing bills. For purposes of determining such additional
amounts, foreign and international monetary authorities are
considered to hold $3,662 million of the original 13-week and
26-week issues.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C. This offering of Treasury securities
is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356, published as a final rule on
January 5, 1993, and effective March 1, 1993) for the sale and
issue by the Treasury to the public of marketable Treasury bills,
notes, and bonds.
. Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
LB-582
HIGHLIGHTS OF TREASURY OFFERINGS OF WEEKLY BILLS
TO BE ISSUED JANAURY 13, 1994
January 4, 1994
Offering Amount .
.
.
• .
Description of Offering:
Term and type of security
CUSIP number
• . . .
Auction date . . . . . .
Issue date
. . • . .
Maturity date . . • .
original issue date .
currently outstanding . .
Minimum bid amount
. . .
Multiples . . . . . . . .
. . . . .
$12,600 million
$12,600 million
. • •
. • .
.
. . .
.•.
...
.
.
.
91-day bill
912794 J9 6
January 10, 1994
January 13, 1994
April 14, 1994
October 14, 1993
$12,986 million
$10,000
$ 1,000
182-day bill
912794 M4 3
January 10, 1994
January 13, 1994
July 14, 1994
January 13, 1994
$10,000
$ 1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids •
Accepted in full up to $1,000,000 at the average
discount rate of accepted competitive bids.
(1) Must be expressed as a discount rate with
two decimals, e.g., 7.10%.
(2) Net long position for each bidder must be
reported when the sum of the total bid
amount, at all discount rates, and the net
long position is $2 billion or greater.
(3) Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
competitive bids
Maximum Recognized Bid
at a Single yield
Maximum Award .
.
.
.
Receipt of Tenders:
Noncompetitive tenders
competitive tenders
Payment Terms •
35% of public offering
.
•
35% of public offering
Prior to 12:00 noon Eastern standard .time
on auction day
Prior to 1:00 p.m. Eastern standard time
on auction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
DEPARTMENT
OF
THE
TREASURY
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
TEXT AS PREPARED FOR DELIVERY
EMBARGOED FOR RELEASE
UNTIL DELIVERY
(Approximately 10 a.m. EST)
REMARKS BY TREASURY SECRETARY LLOYD BENTSEN
THE BROOKINGS INSTITUTION
WASHINGTON D.C.
JANUARY 5, 1994
Today, I want to provide a wrap-up and reflect on where Wl! 've been on economic
policy. It's been a little over a year since President Clinton asked me to join the
Administration. I accepted because I knew he'd put the economy at the top of his
agenda -- and he has.
First, let's talk results. We have an economy that's growing at a steady,
sustainable, and non-inflationary rate. I'm confident the good news will continue in '94
for a number of reasons, but mostly because we showed Americans that government can
take tough, painful actions to cut costs.
The number I want every American to remember is the $500 billion that we've
pledged to take out of the system over the next five years. As a result of deficit
reduction, our long-term interest rates have tumbled. Rates on a 30-year mortgage are
7.2 percent -- close to a 25-year low.
Neither the Federal Reserve nor an administration can control long-term interest
rates. Underlying economic fundamentals are the major influence, hut an administration
can contribute to those with a reversal of deficit increases and a major deficit reduction.
Does anyone seriously helieve interest rates also would have reduced if the deficit
had not heen addressed?
I've heen in government for a while. I saw the last President send up four
hudgets that were dead on arrival. This President took on the deficit, took on trade
issues, is taking on health care -- and he deserves a lot of credit for taking on things that
haven't always heen popular with every constituent.
Low interest rates have hoosted some of our most vital industries like autos and
housing, and that has spread to furniture and building supplies and other areas. For
eig~t months, we've seen increases in retail sales.
2
And inflation is low -- 2.8 percent. In the past 28 years, lhere's been only one
year when we've seen inflation lower than today.
GOP has grown from 0.8 percent the first quarter, to 1.9 percent the second
quarter, to 2.9 percent the third quarter, and I think you'll sCe 4 to 5 percent growth
fourth quarter. If you don't think that's steady and solid progress, look at Japan or
Europe -- where it's negligible or negative.
We're making progress on jobs. Unemployment is down to 6.4 percent, versus 7.3
percent at the end of 1992. You see a lot of coverage abou t hig companies laying off
workers. But it doesn't make the front page when thousands of small companies each
hire one or two people. Since last January, the private sector has added more jobs than
during the previous four years. And not hamburger-flippers, hu t good paying jobs.
These numbers are not amazing -- we have a ways to g() hefore we declare
victory. But let me tell you what we're trying to achieve, not III quantitative terms, but in
the quality of life. My parents raised us with the hope that wc \j live a better life than
they did. That's the American dream. America's great achievement has been helping
millions of parents realize this dream.
But over the past generation, we've seen that hope begin to fade. For the first
time in years we've seen real incomes actually fall. Children don't look confidently
toward the future, and their parents worry about the world their kids will inherit. We
want to reverse that. To do this we have our sights set on the 21st Century -- on a
business climate that encourages growth, and job creation, and a higher standard of
living for all Americans.
We don't expect -- nor should anyone expect -- immediate success. We didn't get
where we are overnight and we can't get where we want to go overnight. So we haven't
advocated the kind of radical policies that would leave us weakened in the end. This
Administration has committed itself to a different task. We want to get the
fundamentals right.
\Ve want the kind of growth that made this country strong -- growth that
hll"iI1l'~~cS (an pbn around, growth thJt will not offer familic'-, h()()m tht:n hust, growth
that \\ill not drive up interest rJtes, and growth that will keep in!lation under control.
Fllf llC~lrly J YCJr, through our domestic initiatives and internati()n~.d agreements, we have
\\orked on these chJllenges. I douht any Democrat or Repuhlican would argue with our
~Imhiti()ll. \\'hcre wc differ is in our approach.
Thi" :\Limini'itrati()ll hclic\c'i that government mmt u"c cvery ounce of its energy,
l'\l'r) Limp ot" its intluence to help create the kind of high-paying, productive, private''i.'d\)r Johs that havc given ..c\mericans the world's highest standard of living.
3
The American people elected Bill Clinton to take on the laugh problems.
We had problems.
Government wasn't doing a good job breaking down the barriers that prevent
business success -- instead government was creating barriers through excessive regulation
and through the deficit, which led to high interest rates. Government wasn't doing
enough to break down the barriers that some countries put up to keep out American
goods and services overseas.
Another problem was that government failed to make the most basic investments
in infrastructure and technology.
We also saw the economy leave some people behind. People just weren't getting
the training they needed or even access to the fundamental right of health care coverage.
So we started tackling the problems -- in three ways. One, to help husiness.
Two, to increase investment. And three, to help the worker. Let me take them one at a
time.
First, business. We wanted to create the conditions where American business
could compete and grow. Some say the way to help business is with a big, sudden tax
break -- but that just wouldn't make good fiscal or business sense. That was the policy of
the 1980s that ended up damaging the real estate industry and led to excesses in the
financial community. These kinds of policies would lead to boom and then gloom -- the
very kind of economy we want to avoid.
Instead, we set out to liberate private capital. We wanted to cut the deficit, to get
control of the federal budget. Year after year, CEOs have made one simple plea: cut
government spending and lower the deficit. The President came into office and cut
popular programs in order to cut the deficit. We cut billions in government spending,
and it wasn't easy.
We did deficit reduction to free up private capital for productive use in the
private sector. We did it to lower interest rates. And we did it so businesses could
invest more in technology and training to make their workers more productive and
increase our national competitiveness.
Low interest rates aren't enough if banks won't lend. So we went after the credit
crunch that has tied hankers' hands and dried up lending. We protected safety and
soundness while stopping government from strangling the capital markets. We went after
the kinds of regulations that led to ridiculous reporting requirements, prevented bankers
from making loans to small businesses, and required expensive appraisals on small pieces
of real estate.
4
We're also pursuing fundamental reform of the banking s~'stem. If our banks are
to compete internationally and give American businesses access to the global credit
markets, they need the flexibility to operate in a rational way. That's why this
Administration supports interstate branching. It's also why we support consolidation of
the regulatory bodies to cut down on excessive, wasteful, and contradictory regulation.
We also increased the expensing allotment for small business to help them buy
new equipment and create more jobs, and we renewed the R& D t~lX credit.
But no business will invest in capacity or create jobs without m:.lrkets for their
products. So we've placed a high priority on opening foreign m:lr\.;l'ts to our goods and
services.
The President can take great pride in the passage of NAFI :\. I h: showed that
free trade does not have to mean irresponsible trade. With NAFL\ we expect U.S.
exports to increase and we think it will create 200,000 new high-payi ng jobs. And we put
in place important programs to help workers compete in this ncw cnvironment.
Ambassador Kantor worked hard to make sure we got a good GAIT. With
GA TI, we are talking about creating thousands of jobs. I've seen conservative estimates
that it can add $300 billion to the world economy by 2002.
And we're hard at work on the most difficult market of all: Japan. Through our
framework agreement we set up a process for lowering barriers to American exports.
For years, the U.S. entered agreements and had no way of tracking progress. This
addresses that problem. It also links our macroeconomic goals with our efforts to open
specific markets. We're working to encourage domestic growth in Japan so that
Japanese businesses and consumers have the ability to buy our products.
The need for domestic demand growth is an important point. Japan, with its huge
traJe surplus, cannot look to the United States and other countries to make up for slack
demand at home. Allowing the yen to slide is not an acceptable way out of recession for
Japan. \Ve want to see Japan's surplus reduced significantly, and this will require strong
dOlllc"tic dem~llld in Japan, more open markets, and exchange rate" that reflect the
underlying cost competitiveness of Japan and its trading partners.
Strengthening the G-7 process has been important. For the first time in recent
mClllory, th:? L'.S. is operating from a position of strength. For vears our allies have
:1"\.;l'J lh to cut our deficits. \Ve\e done that. And it changes t-he way our ideas arc
rl'l'l'i\cJ. :\ow \\c're the ()nes encouraging the other countrie" to Jo things to stimulate
thclr l'(lln()mICS.
5
We're also encouraging companies to export and I applat.;J ~he Commerce
Secretary's efforts on the issue of export controls. We've taken controls off products,
which will be a real help in states like California.
And let me say something about Allia -- which I know is an area of interest here
at Brookings. In fact, over the holidays I studied one of your hooks, "A Fragile
Relationship."
Immediately after the summit in Moscow, I will be making my first trip to the
region since becoming Treasury Secretary. I want to follow up on the progress made in
Seattle at the meeting of the Allia Pacific Economic Cooperation organization that
President Clinton called together.
Our nation has had, and will continue to have, a significant focus on our economic
and security alliances with our European partners. That will not ch:J.nge. But we must
also recognize that the United States hall a suhstantial interest in the Pacific region.
The Asian Pacific region is the fastest growing economic region on the globe.
Fully two-thirds of our trade deficit is with just two countries there -- Japan and China.
We need to make a greater effort to see that the growth taking place in the Pacific
encourages growth not only here in the United States but also among other industrial
nations.
I've made this point a number of times in the past year when I was talking about
NAFTA or GA TI, and I'll make it again today. Exports are a driving force in our
economy. Since the middle of the last decade half of our incre:J.se in income and almost
all of our new manufacturing jobs have come about because of exports. It becomes
clearer every day that the way to make our economy grow is to get better access to more
markets.
And where are those markets? In Allia and in the Pacific, and in Latin America
-- places where economies are taking off and they need the goods and the services that
America can provide.
Look at the growth rates in the countries I'll he visiting. Indonesia, which has the
fourth largest population in the world, has had average real growth rates of over 6
percellt in the past 25 years. In Thailand, which is a regional leader in financial
liheralization, the annual growth rate in the GOP ha.·;~ heen over 7 percent for the past
fivc years. And in China, which now is the world's third-largest economy, GOP growth
rose 1~ pcrccnt last year.
Thl.?rc are other issues that must he raised besides economic ones, such as human
rights in China. But one of the ways to promote human rights is to encourage market
reform and trade. They can be the engine of political change.
6
So I'll be talking with my counterparts in the region about our economic
relationships, about having an APEC finance ministers meeting sometime next year, and
about how each of us sees APEC as a vehicle to further growth and development in our
respective nations. I also expect to talk about sustaining the growth we've seen, about
how d~velopment can be financed, and about how capital markets can be developed.
This is a region to which we've had historic ties, and one I helieve can play an
increasingly important global role.
So, we've worked hard to help businesses -- our first goal.
Second, we wanted to increase the level of public investment in critical areas of
the economy. We're addressing our deteriorating physical infrastructure -- the essential
mechanism through which goods and services flow to users around the country and
around the world.
And combatting crime will be an important priority. Yestcruay, I gave a speech
on crime and visited with a number of heads of law enforcement organizations. It was
the first speech I gave this year -- and I scheduled it that way for a reason. There was
some symbolism there. I wanted to show the high priority that I place this year on
Treasury's law enforcement efforts -- on our efforts to enforce the Brady Bill, and to
reduce the number of gun dealers, and to get guns out of the hands of children. During
the campaign, the President pledged to put 100,000 new police officers on the streets,
and we need to see that happens.
The other piece of our investment strategy focuses on innovation. The National
Information Infrastructure is one example. The private sector is poised to build broadband information highways across the nation.
We've also made critical investments in local communities. With our
emp{)\\,erment zone program, distressed communities will get financial and technical
assistance to help attract business and rebuild their communities.
And with our community development bank and Community Reinvestment Act
initi~lllveS, we will help ensure that all businesses and potential entrepreneurs have access
to the capit:.t1 they need to grow.
\\';Ir \\
\\'e'll also invest in defense conversion, so that those who helped us win the Cold
ill finJ ncw jobs .
. Throu~h puhllc invcstment. v.e will ensure that puhlic user . . , like schools, hospitals
~1I1J II brJrll's, are not left on the curhslde. Bu t v. e wi II only make these investments in a
\ l'r\ I; 1r ~ l' t l' J \\ J y.
7
We've been working on the '95 fiscal year budget, and m{lney is tight. After
netting out investments, nine out of 14 Cabinet Departments will have their budgets cut
below last year's, and we want to cut the government payrolls by 250,000 people. The
President has made cuts, so that he could take that money and invest it instead on things
he thought were more important to this country's future. He has re-prioritized our
budget.
But let me say, that even with these investments, the '95 deficit will still come in
far lower than anticipated -- in the range of $190 billion, as opposed to the $302 billion
forecast in December of 1992 before the enactment of the President's deficit reduction
plan.
Now, the third, and final problem I'll talk about, is the Allll'rican worker. If it is
government's job to create the right environment for businessl.?~ II) "ul'l'l.?ed, it is also the
government's responsibility to give each American the opportunity to ~hare in that
growth. And all citizens are responsible for bettering themselve" ttl take advantage of
these opportunities.
But give American workers access to the right skills, the right education, and
decent health care, and they can compete with anyone in the world. If we're serious
about raising the standard of living, we must first raise the level of training and
education in this country.
Some say these investments run contrary to our efforts to encourage private-sector
growth. They believe that you can't be pro-business and pro-worker. That's wrong.
The battle to reform our health care system is a perfect example. We think it's
wrong that people are locked into jobs for fear of losing their health insurance. And we
think it's wrong that our corporations spend more than their foreign competitors on
health care.
People who work for a living should have insurance and they should help pay for
it. It's the government's responsibility to make the system work, but it's the employers
and the employees responsibility to pay for it. Many companies arc already providing
health care coverage. They know the henefits of a heal~hy, productive workforce. Often
these same companies are the ones that invest in vital resources in job training and
education.
~ot
all c()mpanies make this investment. So this Admini~tration has committed to
prmiding. inccntivL's for company-sponsored training and funds t() train the unemployed
\\ ilo \\ant to get hack to work.
8
This Administration has stood up for workers who want to \...eep learning.
We've also committed to young people who will form the workfor~e of the future. Head
Start makes good economic sense. I applaud the Labor Secretary's goal of creating a reemployment rather than an un-employment insurance system.
In the past, we may have provided incentives for businesses to create jobs, but not
the right incentives for people to take them. That's why the Earned Income Tax Credit
program is so important. We've increased it by $23 billion and provided an additional
tax cut for millions of working families. It's our most successful effort to get people off
welfare and into productive jobs. It puts their incentive back in v. mk and allows working
families to live in dignity.
So, that's our strategy. Help business. Increase investment. And help workers.
We've seen real progress. \Ve've put policies in place. \Ve've :-Cl'll the markets respond,
And this year I'd like to see us achieve 3 percent real gr()\\ 1h -- and hold inflation
to approximately 3 percent. This should allow interest rates to rell1:tin relatively low and
reduce further t~e unemployment rate.
Let me end with this. I was at a meeting in France three years ago. A European
got up and said: "Look at the great changes in the world. The end of the Cold War.
Europe and Asia emerging as the world leaders. And America on the decline." It's a
little ironic that three years later much of Europe and Japan arc in J recession, and
America is not just a political and a military leJder -- we remain the world's economic
leader -- the engine of growth in the world.
It's been a good first year -- solid, steady, non-inflationary growth -- and we're
planning to sustain this one.
-30-
DEPARTMENT
OF
THE
TREASURY
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR IMMEDIATE RELEASE
January 5, 1994
CONTACf: Scott Dykema
(202) 622-2960
BENTSEN TO VISIT RUSSIA, ASIA
Treasury Secretary Uoyd Bentsen will accompany President Clinton to Moscow
next week for a summit meeting with Russian President Boris Yeltsin. Mter the summit,
Bentsen will meet with key officials during visits to China, Indonesia and Thailand to
talk about ways of strengthening economic relations.
"My first trip overseas as Secretary was to London last February to strengthen
economic ties among the industrial countries. But we also need to look beyond the G-7
to the emerging markets. I plan to begin the new year with a trip to Asia. I want to
make sure that we can compete for a growing share of the rapidly expanding markets
there. My agenda is simple: to strengthen economic relations and improve opportunities
for American goods, investment and financial services."
Mter attending the January 12-15 summit in Moscow between President Clinton
and Russian President Boris Yeltsin, Bentsen will visit those nations January 16-22 .
Bentsen will visit Jakarta January 16-17 and then will be in Bangkok January 1719. He'll then be in Beijing January 19-21 and in Shanghai January 21-22. Bentsen will
return to the United States January 23.
-30-
LB-5R4
UBLIC DEBT NEWS
RESULTS OF TREASURY'S AUCTION OF 52-WEEK BILLS
Tenders for $16,029 million of 52-week bills to be issued
January 13, 1994 and to mature January 12, 1995 were
accepted today (CUSIP: 912794P81).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
3.50%
3.52%
3.52%
Investment
Rate
3.65%
3.67%
3.67%
Price
96.461
96.441
96.441
Tenders at the high discount rate were allotted 17%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
LB-585
Received
-- - -$63,046,553
$16,029,478
$58,213,550
567,503
$58,781,053
$11,196,475
567,503
$11,763,978
3,950,000
3,950,000
315,500
$63,046,553
315,500
$16,029,478
Accept~g..
PUBLIC DEBT NEWS
Depanment ofthe Treasury • Bureau of the Public Debt • Washington, DC 20239
FOR REI EASE AT 3;00 PM
January 6, 1994
Contact: Peter Hollenbach
(202) 219-3302
PUBUC DEBT ANNOUNCES ACTIVI'lY FOR
SECURITIES IN THE STRIPS PROGRAM FOR DECEMBER 1993
Treasury's Bureau of the Public Debt announced activity figures for the month of December
1993, of securities within the Separate Trading of Registered Interest and Principal of
Securities program (STRIPS).
Dollar Amounts in Thousands
Principal Outstanding
(Eligible Securities)
$739,824,969
Held in U nstripped Form
$535,365,914
Held in Stripped Form
$204,459,055
$12.994.100
Reconstituted in December
The accompanying table gives a breakdown of STRIPS activity by individual loan description.
The balances in this table are subject to audit and subsequent revision. These monthly figures
are included in Table VI of the Momhly Statement of the Public Debt. entitled "Holdings of
Treasury Securities in Stripped Form."
Information about "Holdings of Treasury Securities in Stripped Form" is now available on the
Department of Commerce's Economic Bulletin Board (EBB). The EBB, which can be
accessed using personal computers. is an inexpensive service provided by the Department of
Commerce. For more information concerning this service call 202-482-1986.
000
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28
TABLE VlaooaHOLDlNGS OF TREASURY SECURmES IN STRIPPeD FORM. DECEMBER 31. 1993-Continuea
(In~.
;J<Jt1IQn _
U~
:0..
I 211$123
'9J14;J61 I
, I ~.D4
811
1
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I
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'!:1IecIw ,.... 1. 1981. _
'- " _
torm _ _ _ _ Iar
~
'"
Fam
181'2.361 I
'I
484 J50 I
535.365.914
I
1)-
232.1lXl "
.S.9&611
,}
::04459.055 "
, 2.994.100
10 ".. . . - - 101m
NaIll: 01 b 4III-.a.¥ 01 ecft _
r_ III.,. . . . . . . . . . . 3:00 am _ _ ..... eomm.c. o..-w'. EalI'lIlmC a.- 80M! tEBSl The l-.one nunc« 101 maw .._
JDaUI EBB IS (202\ 482·19811. The _
" a. _
.. SUD!KI 10 ..... ana ____ _ _ _ _
"
DEPARTMENT
OF
THE
I
TREASURY
NEW,S
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR IMMEDIATE RELEASE
Text as Prepared for Delivery
January 7, 1994
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
MOSCOW/ASIA TRIP PRESS CONFERENCE
I will be leaving early next week for Moscow and the summit, and then we'll be
going on to Asia. I'll be visiting China for a broad discussion of our economic relations.
And I'll be stopping also in Indonesia and Thailand to discuss regional issues such as the
Asia Pacific Economic Cooperation organization and financial services matters.
Let me run down our objectives on the three legs, and then perhaps I can take a
few questions.
I will join President Clinton, as I did in Vancouver, in discussing the various facets
of our economic relationship with Russia. While I'm there I want to commend the
reformers for the progress that has been made in liberalizing and privatizing Russia's
economy. And I also want to urge President Yeltsin to deepen the process of market
reform.
In addition, we will underscore the West's commitment to provide large-scale
financing in support of comprehensive market reform. And we will ask the international
community to pay greater attention to the social hardships of Russia's transformation.
Now, as to the rest of the trip:
In China, among the more significant things I will do is reconvene meetings of the
Joint Economic Committee. This is a forum at which we and the Chinese talk about
bilateral economic issues.
LB-586
(over)
2
Look at what is going on economically in China. They also are in the midst of an
historic economic transformation. In our discussions, I want to stress the shared interest
of both countries in China's successful transition to an open, market economy. But let
me emphasize, at the same time I will make clear that U.S. concerns about human rights
remain fundamental. We will obviously be watching China's actions in this area closely
as we move toward the President's MFN decision this year.
The economic dialogue will include China's recent reforms of its foreign
exchange, tax, monetary and financial systems. In addition, we'll talk about opening
China's markets. And we will discuss areas in which we can cooperate on regional
matters such as APEC. We have a full agenda in China.
I also want to make progress on one of our key foreign policy goals -strengthening regional economic cooperation in Asia. The President's Leaders' Meeting
in Seattle last fall was a big step forward. I want to talk with my counterparts in
Indonesia and Thailand about the Finance Ministers' meeting I will be hosting this year.
This will be an unprecedented opportunity for finance ministers from throughout the
region to discuss the economic policies which will shape our future.
We need to start sharing ideas on the challenges we face, such as how can we
sustain high growth, for rich and poor countries? And how can we promote economic
links that promote region-wide growth? We all have enormous infrastructure needs. We
ought to look at how they can be financed. We should look at how we can promote
private investment, which has been driving much of the growth. And we need to look at
how to have deeper and less volatile capital markets in the region. American investors
can benefit from the opportunities available in the region. We need to look at how
regional cooperation can make that happen.
In addition, while I am in Bangkok I expect to layout our approach to financial
services in the aftermath of the GAIT negotiations.
My emphasis in my discussions with the Asian leaders will be on making the
Finance Ministers meeting a cooperative venture. It should be a consensus-building
exercise, building on the formula which has worked so well in the APEC trade and
investment meetings. I want to stress our common interests, not any country's bilateral
agenda. Our common interest is to sustain this region's strong economic performance.
The APEC region is a primary factor in our growth. Half of our exports go there.
And those exports are up by two thirds in just five years. We clearly have a stake in the
growth strategies of our APEC partners, and they clearly have a stake in ours. It's time
for us to begin talking to each other about these economic issues.
-30-
DEPARTMENT
OF
1500 PENNSYLVANIA AVENUE, N.W.-
THE
TREASURY
-20220- (202) 622-2960
FOR IMMEDIATE RELEASE
Text as Prepared for Delivery
January 7, 1994
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
WHITE HOUSE TRIP BRIEFING
January 7, 1994
As you know, I will be accompanying the President to the Moscow Summit. The
April U.S-Russian Summit was the first such meeting ever attended by a Secretary of the
Treasury, and Moscow will be the second. This shows that balance sheets are every bit
as important as the balance of power in the new partnership between our two countries.
We are going to Moscow to emphasize our continued steadfast support for
Russian reform, and for the Russian reformers.
These reformers have made real progress. For instance, prices for most goods
have been freed. If you look at the operations of the Russian economy, price is now a
major factor in what is produced and what is consumed. Also, privatization is coming
along rapidly with one-third of the industrial labor force in privatized firms. And more
than half the small businesses have been converted to private ownership.
Beyond that, we are now seeing real progress in stabilizing the economy. Russian
inflation in December was down to 12 percent. But Russia needs more reform, not less,
and there's much work to be done.
Our trip to Moscow will give us the opportunity to talk to President Yeltsin about
the course of economic reform in 1994. We hope this is a year in which economic
reform can be solidified with further progress.
LB-587
(over)
-2-
But reform can only move forward if attention is paid to its social consequences.
The Russian people face genuine hardship as they seek to shed the legacy of 70 years of
communism.
We will also want to speak with President Yeltsin about how Russia and the
international financial institutions can energize their relationship. That will allow them
together to advance reform and, very importantly, cushion the social impact of this
transformation. We are not indifferent to the hardships that building a market economy
out of the wreckage of a command economy has created for some of the population.
In addition, we will discuss with President Yeltsin and others how we can
strengthen our trade and investment relationships. And we want to cover what we can
do to reinvigorate Russia's oil and gas industry, as well as discuss recent changes in the
banking system in Russia.
Lastly, I won't be on the European leg with the president before the Summit, but
he'll be dealing with a variety of economic issues that are important to us. Let me give
you four specifics.
First, he'll be talking with the EC and making the point that there is life after the
Uruguay Round of GAlT. He wants to make it clear that this is a beginning, not an
end in our effort to open markets. Second, he'll be discussing efforts to create jobs and
bring down unemployment. H you recall, one of his initiatives is the Jobs Summit in
March.
Thirdly, the President will stress that we need to achieve stronger growth in the
industrial countries. Finally, he will emphasize the importance of opening our markets in
the United States, in Western Europe and Japan, to the products of Eastern Europe and
Russia.
-30-
DEPARTMENT
OF
THE
TREASURY
lREASURY
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C. ·i20~20 ~ (202) 6,22-2960
FOR IMMEDIATE RELEASE
January 7, 1994
STATEMENT OF TREASURY SECRETARY LLOYD BENTSEN
The decline in the unemployment rate, and the creation of 183,000 new jobs, is
additional evidence that our economy is demonstrating steady and sustainable growth.
Now that unemployment has come down to its lowest level in three yearss, I believe that
our recovery is becoming more deeply rooted and we're regaining some of the ground we
lost during the recession.
-30-
LB-588
UBLIC DEBT NEWS
RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
Tenders for $12,844 million of 13-week bills to be issued
January 13, 1994 and to mature April 14, 1994 were
accepted today (CUSIP: 912794J96).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
3.00%
3.02%
3.02%
Investment
Rate
3.06%
3.08%
3.08%
Price
99.242
99.237
99.237
Tenders at the high discount rate were allotted 29%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
LB-589
Received
$61,686,320
Accegted
$12,844,165
$56,700,906
1 1 322 1 694
$58,023,600
$7,858,751
1,322 1 694
$9,181,445
3,035,120
3,035,120
627 1 600
$61,686,320
627 1 600
$12,844,165
UBLIC DEBT NEWS
Department of the Treasury •
FOR IMMEDIATE RELEASE
January 10, 1994
RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
Tenders for $12,618 million of 26-week bills to be issued
January 13, 1994 and to mature July 14, 1994 were
accepted today (CUSIP: 912794M43).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
3.17%
3.18%
3.18%
Investment
Rate
3.27%
3.28%
3.28%
Price
98.397
98.392
98.392
Tenders at the high discount rate were allotted 47%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
LB-590
Received
$66,175,181
AcceQted
$12,617,770
$59,845,663
960,518
$60,806,181
$6,288,252
960,518
$7,248,770
3,100,000
3,100,000
2,269,000
$66,175,181
2,269,000
$12,617,770
DEPARTMENT
OF
THE
TREASURY
NEWS
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR IMMEDIATE RELEASE
January 6, 1993
TREASURY SECRETARY LLOYD BENTSEN'S
STATEMENT ON TIP O'NEILL
America lost a great one.
Early in my career, I served in the House with Tip O'Neill.
When the
Democratic party in Congress needed leadership, he rose to the occasion.
He was a public servant who really did stand up for the pUblic. He'd round up
votes to pass legislation -- always doing it for the good of the people he served.
I admired him for his personal qualities, too. No matter how high he rose in life,
his commitments to his family and to his home never left him.
-30-
I
DEPARTMENT
OF
THE
TREASURY
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 2022Q. (202) 622-2960
•
.•
FOR RELEASE AT 2:30 P.M.
January 11, 1994
~
!.
CONTACT:
.•
•
,
Howard Schloss
(202) 622-2960
TREASURY CALLS 8-1/2 PERCENT BONDS OF 1994-99
The Treasury today announced the call for redemption at par on May
15, 1994, of the 8-1/2' Treasury Bonds of 1994-99, dated May 15, 1974,
due May 15, 1999 (CUSIP No. 912810 BR 8). There are $2,378 million of
these bonds now outstanding, of which $961 million are held by private
investors. Securities not redeemed on May lS, 1994 will cease to earn
interest.
These bonds are being called to reduce the cost of financing the
public debt. The 8-1/2% coupon on these bonds is significantly above the
current cost of securing financing for the five years remaining to their
final maturity.
The Treasury plans to refinance the call of the $961 million that is
held by private investors by issuing an additional amount of S-year notes
to be announced on January 19 for settlement at the end of January. In
current market conditions, we estimate that the budget outlay savings
from the call and refinancing will be about $lS0 - $160 million.
Payment will be made automatically by the Treasury tor bonds in
book-entry for.m, whether held on the books of the Federal Reserve Banks
or in TREASURY DIRECT accounts. Bonds held in coupon or registered form
should be presented for redemption through a financial institution, or to
a Federal Reserve Bank or Branch, or to the Department of the Treasury,
Washington.
Coupon bonds must have all unmatured coupons attached to the
security upon presentation for redemption at par. As required by
Department of the Treasury Circular No. 300 (31 CFR 306.27), if any
coupons for the ten interest payment dates from November 15, 1994,
through May 15, 1999, are missing, the Treasury must deduct the full face
amount of the missing coupons trom the par value.
LB-591
000
DEPARTMENT
TREASURY
OF
THE
TREASURY
NEWS
~~/789~. . . . . . . . . . . . . . . . . . . . . . . . . .. .
............................
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR RELEASE AT 2:30 P.M.
January 11, 1994
CONTACT:
Office of Fi~ncing
202/219-3350
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $25,200 million, to be issued January 20,
1994. This offering will result in a paydown for the Treasury of
about $14,525 million, as maturing bills total $39,732 million
(including the 66-day cash management bills issued November 15,
1993, in the amount of $14,102 million).
Federal Reserve Banks hold $6,468 million of the maturing
bills for their own accounts, which may be refunded within the
offering amount at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $3,681 million as agents for
foreign and international monetary authorities, which may be
refunded within the offering amount at the weighted average
discount rate of accepted competitive tenders. Additional
amounts may be issued for such accounts if the aggregate amount
of new bids exceeds the aggregate amount of maturing bills.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C. This offering of Treasury securities
is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356, published as a final rule on
January 5, 1993, and effective March 1, 1993) for the sale and
issue by the Treasury to the public of marketable Treasury bills,
notes, and bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
LB 592
HIGHLIGHTS OF TREASURY OFFERINGS OF WEEKLY BILLS
TO BE ISSUED JANUARY 20, 1994
January 11, 1994
Offering Amount . . .
. .
Description of Offering:
Term and type of security
CUSIP number
. . .
Auction date . . . . . .
Issue date . . .
Maturity date . . . . . .
Original issue date .
Currently outstanding .
Minimum bid amount . . .
Multiples . . . . . . .
.
. . .
.
.
....
. . .
$12,600 million
$12,600 million
91-day bill
912794 K2 9
January 18, 1994
January 20, 1994
April 21, 1994
October 21, 1993
$12,916 million
$10,000
$ 1,000
182-day bill
912794 M5 0
January 18, 1994
January 20, 1994
July 21, 1994
January 20, 1994
$10,000
$ 1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids .
Competitive bids
Accepted in full up to $1,000,000 at the average
discount rate of accepted competitive bids
(1) Must be expressed as a discount rate with
two decimals, e.g., 7.10%.
(2) Net long position for each bidder must be
reported when the sum of the total bid
amount, at all discount rates, and the net
long position is $2 billion or greater.
(3) Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid
at a Single yield
35% of public offering
Maximum Award.
35% of public offering
....
Receipt of Tenders:
Noncompetitive tenders
Competitive tenders
Payment Terms .
Prior to 12:00 noon Eastern Standard time
on auction day
Prior to 1:00 p.m. Eastern Standard time
on auction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
DEPARTMENT
OF
THE
TREASURY
TREASURY (~J:iNi~ W
178<)
_
S
_
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR IMMEDIATE RELEASE
January 12, 1994
STATEMENT BY TREASURY SECRETARY LLOYD BENTSEN
We welcome the courageous decision of the member countries of the African Franc
Zone to devalue their currency, the CFA Franc. For 45 years it has helped maintain stable
business conditions and low inflation in these countries. It has become increasingly
overvalued in recent years, however, contributing to high costs, a loss of competitiveness on
world markets and resulting disinvestment.
If devaluation is accompanied by appropriate fiscal, monetary and trade policies, it
should make the Franc Zone countries more attractive to domestic and foreign private
investment. The result should be stronger and more diverse economic growth and better
economic opportunities for their citizens. We encourage the International Monetary Fund
and the World Bank to lend appropriate technical and financial assistance to the countries
taking this important step.
-30-
LB-593
DEPARTMENT
IREASURY
OF
THE
TREASURY
fIt) N f: W S
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
Contact: Joan Logue-Kinder
Chris Peacock
956-6422 or
956-6407 in Moscow
FOR IMMEDIATE RELEASE
January 12, 1994
BENTSEN ANNOUNCES
NEW SUPPORT IMPLEMENTATION GROUP DIRECTOR
MOSCOW, Russia - Treasury Secretary Lloyd Bentsen announced today in
Moscow that the United States has appointed Michael Gillette as Director of the
Support Implementation Group (SIG).
"With this appointment, the United States is fulfilling a commitment made by
President Clinton to President Yeltsin to provide more timely and effective support for
Russia's reform efforts," Secretary Bentsen said.
At the April 1993 Vancouver Summit, President Clinton and President Yeltsin
discussed the need to establish a mechanism to ensure more effective implementation of
external support for Russian reform. They agreed there were critical bottlenecks facing
external support due to obstacles on the part of both Russia and the major industrial
countries.
After the Vancouver Summit, the United States took the lead, working with the
G-7, in proposing the creation of the SIG. The SIG was designed to break through these
bottlenecks. The establishment of SIG was endorsed by the G-7 heads of state and the
representatives of the European Community in July at the Tokyo Economic Summit.
The SIG held its inaugural session in Moscow in September 1993, chaired by the
Japanese representative. The SIG has met seven times since then. The attendance of
the group consists primarily of the senior economic officials of the G-7 embassies in
Moscow.
The Russian Government has established a committee, under the supervision of
Finance Minister Boris Fedorov, to ensure effective cooperation with the SIG.
Representatives of the multilateral financial institutions, including the IMF and the
World Bank, based in Moscow, have attended meetings of the SIG.
(more)
LB-594
The SIG is off to an excellent start. It has established a working dialogue with
senior Russian officials and begun to document the principle obstacles to the flow of
external support.
The United States was asked by the G-7 to nominate the first Director of the SIG
and has chosen Michael Gillette for this important task. Mr. Gillette, 56, is a graduate
of the United States Military Academy (West Point) and a Rhodes Scholar. He has a
distinguished and long record of public service in the U.S. military forces, in the U.S.
Department of Energy from 1979-1981, and in the World Bank.
-30-
DEPARTMENT
OF
THE
TREASURY{~l
/71l'l
_
TREASURY
N:E W S
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
MICHAEL JAMES GILLETfE
BORN:
Washington, D.C., October 27, 1937
EDUCATED:
United States Military Academy (West Point), BS 1959
RHODES SCHOLAR, Brasenose College, Oxford University,
England, MA 1963
HARVARD BUSINESS SCHOOL, Program for Management
Development, 1974
CAREER:
1959-70 US Army, Infantry officer. Decorated combat veteran.
Systems Analyst, Officer of the Secretary of Defense.
1970-79, 1982-present, World Bank. Immediate staff of Robert
McNamara, formulated new approaches to programming Bank
development activity, instituted management and control systems
used today.
Division Chief, World Bank African Division. Marketed Bank
lending and technical assistance and guided Bank economic work in
French-speaking West Africa. For two years provided oversight for
all development work plus control of administrative budget.
Five years in Bank Financial Complex. Division Chief for financial
analysis during the period of greatest changes in financial policy in
Bank history. As Director of Accounting and Deputy Controller
introduced several major policy changes in accounting for loan
portfolio performance, control over receivables and payables.
During 1987-1992 as Department Director for French West Africa
implemented major and controversial policy shift toward countries
that won full approval of Bank President and Board of Directors
and remains in force.
(more)
2
CAREER:
As Finance and Policy Advisor to VP(Europe and Central Asia)
since 1992, supported international effort to assist accounting
reforms and foster development of accounting industry to serve
banks and enterprises.
1979-81, U.S. Department of Energy, Deputy Assistant Secretary,
Policy. Oversight of all conservation and renewable energy
programs and policy.
DEPARTMENT
OF
THE
TREASURY
'IREASURY ~ "" . N E W S
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR IMMEDIATE RELEASE
Text as prepared for delivery
January 13, 1994
STATDfENT OF TREASURY SECRETARY LLOYD BENTSEN
MOSCOW, RUSSU
Jonuory 13, 1994
Russia is at a critical junceur., but I liIen..
commitment to prQQQ on ond m~k8 thooe retocaa worK.
the
a
stron9
President Clinton and Presic1ent Yelta:1n had a diaeussion a})cut
that has been made ~o f~r, and it's ~u~Btantlal, 1n
proqrQ~g
reCormln9 the Russian economy. They~" lked ~ue how prlv~ti~&tion
haa com. alon~ 00 vell, 70,000 6~411 businesses and 10,000 1arge
ones convened.
They discussed how inflation 1a down (rgm JO
percent a month -- and that' 8 41.300 parcent a yQar -to 12
p@re@n~ a month, how Rucaia'. b~dget de~i~i~ was rec1uced trom 20
percent ot GOP to 9 percent la8t year, and how dollar wcqe$have
ri~Qn three-fold.
~ter
Preaident
Yelts1n
~ugaia'a
and Oeputy Prime X1niatar
Bor1~
impressive economic recora. pres1~Qnt
clinton said it was a real achiQvamant &nd_~ story ~e have to gat
Fadorov daacribed
out to the world.
And 1 told Mr. Yeltsin that I'va trav.led the world and met 4
lot of economic teams and yours is one ot the best.
president C11nton
an~ Presiden~ Y~lt.in
agreed
• stron9 econo.ic te4a and that thero can be no
fiqhtinq inflation and eontinuin9 to privati •••
~t
Ruoo1a
turnin~ DaCX
h~a
trom
And Preeident Clinton promieed th4t a. lOI~ a& Russia keeps
reforainq. ve'll werk with the ~-1, the IMP and the Wo~ld Bonk to
qet this 5upport de11vere4 os raplaly as po.sible.
president Clinton aaaured President Yaltain of the strong
support the Weet hal! tor the ~ .. 'vrmB that are be1ng maae. we don't
vant this momentum to slow.
LB-595
(KORE)
-~-
President Clinton also agreed with preaident Yeltsin that mora
attention has to be paid to eaainq ~o.e o( the hardships that we're
heArin; about. We talked about !indinq way. to cut throu~h some of
the red tape that can qet. 1n the way ot our support..
In thAt
reqarl'\, the Sugpor~ Illiplementation Croup can play an iJlPor~ant
role.
We disous.tld ftow RUssia anc1 t.he Intaruat10nA 1 Pi"ano.l.l
InQtitutionsa can cooperaL. more .tt.~t.iv.ly 80 we ~an have !lore
reto~, and .Ol~ support.
Ana we di.cue ••d trade and inv•• tment
is.ue~.
Before we had the larger bilateral, I met with Mr. Fedorov And
Firat Deputy Prime Minister Yeqor G&y4ar. w. three of us had a
;ood ~alk about a wide ranqe ot economic subjects.
I !ound redorov and Gaydar quite eager to oArry on tnes@
reforms, and even ~cc.1Qrate thea. And that'. the waY thia haa ~ot
t.o go.
I also assured ~. CardaX' tb~t tile West vantil t.o s@a
foreign assistance advan~8 as fast aa the retorms advance.
When Mr. Fedorov and I were talxin9 about how priv.tia~~ion is
9 0 inq, he told ma that people use~ to line ~p tQr breaa here in
Moscow, but now the lines for shares in thaso buainessea.
Finally, Secretary Christopher and I ma~ with the new American
Chamber of Commerce, and I told thea bow ~e/ra uroinq the Russi~ne
t.o create the kind o( boc1y or law that encourageu tha privat.e
sector ~o come invest in R~881A.
-30-
DEPARTMENT
IREASURY
OF
THE
TREASURY
f;) NE W S
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C· 20220· (202) 622-2960
Text as Prepared for Delivery
For Immediate Release
January 13, 1994
REMARKS BY ASSISTANT SECRETARY FOR ENFORCEMENT
RONALD K. NOBLE
ANNOUNCEMENT OF THOMAS CONSTANTINE AS
ADMINISTRATOR-DESIGNATE OF
THE DRUG ENFORCEMENT ADMINISTRATION
I wear several hats today as I welcome Thomas Constantine to the federal law
enforcement community. As an official of the Department of Treasury, I speak on behalf
of Secretary Bentsen and Treasury. As head of Treasury enforcement, I speak on behalf
of all the Treasury Enforcement Bureaus, Customs, ATF, Secret Service, IRS, FinCEN,
FLETC -- from the directors and commissioners to those working in the field. And I speak
as an individual citizen who hopes that we can make our streets safer and our communities
more drug-free.
In each of these roles, I applaud your nomination, Superintendent Constantine, to be
Administrator of the Drug Enforcement Administration. You have dedicated your career
to law enforcement, and at each stage you have achieved outstanding success. Now, you
bring to DEA vital grass-roots knowledge and leadership skills. But your job and skills
transcend DEA; you are now a crucial part of the Administration's efforts to deal with the
drug epidemic. I join Attorney General Janet Reno and Dr. Lee Brown in welcoming you
to the Administration's team and believe you will make an invaluable contribution towards
reducing the amount of drugs and drug violence in our country.
My welcome comes from all elements of Treasury because all elements of Treasury
are committed to working with DEA and its new Administrator to make sure that the laws
of this country are enforced, that crimes are stopped, and that all criminals are punished
appropriately. From Customs and its anti-smuggling program to FinCEN and its analytic
capabilities, from ATF's' anti-gun and anti-gang agenda to FLETC's training programs, from
(more)
LB-596
-2 -
Secret Service's financial crime enforcement to IRS's anti-money laundering efforts,
Treasury harbors numerous powerful tools that can be used effectively to implement the
President's drug control strategy. In the world we now live in, where criminals respect no
jurisdictional limits and criminals ply their trade throughout the country and world, when
drug crimes go hand-in-hand with guns and violence and when drug dealers use our financial
system to launder their ill-gotten gains, federal, state and local law enforcement in
c'ombination with our communities, must work together to confront the vast criminal
network.
By cooperating we make the best use of the extraordinary expertise of each element
of U.S. law enforcement. As Director Freeh put it -- we must share our toys, and we must
work toward our shared goals. Individually, a single federal agency or a local police
department can limit criminal activity, together we can have a far greater impact on crime.
Individually, we can arrest criminals, together we can dismantle criminal infrastructures.
Individually, we can confiscate drugs at the border or drugs being sold in a school, together
we can diminish the drug trade and drug culture and lessen our children's exposure and
vulnerability to drugs.
Two weeks ago, you demonstrated your personal commitment to cooperation by
participating in a joint investigation into the tragic Buffalo bombings. That investigation
involved ATF, FBI, the Postal Inspection Service, the New Yark State Police and various
local law enforcement agencies. Only because all involved worked together were we able
to detain all suspects within 24 hours of the bombings.
I know that you, as I, already share a relationship of trust and confidence with FBI
Director Louis Freeh, a relationship that will prove essential to coordinating the anti-drug
efforts of this Administration. Superintendent Constantine, I pledge the cooperation of the
Treasury Department to your future efforts to address drug-related crime. And I will make
it my personal goal to help you develop mutually beneficial relationships with Treasury
officials .- including the leadership of the bureaus gathered here today to welcome you on
board.
Before concluding I want to repeat that my welcome comes not only from the policy
makers in Washington but from our agents and field personnel, who work daily with DEA
and who have learned to respect and value the talents, courage and expertise of DEA
agents. I look forward to working with you, and anticipate that cooperation among
Treasury, Justice, and our various bureaus and agencies will result in significant advances
in this country's drug enforcement efforts.
-30-
UBLIC DEBT NEWS
Department of the Treasury •
FOR IMMEDIATE RELEASE
January 18, 1994
Bureau of the Public Debt • Washington. DC 20239
(;.~lJi~\\
(\~
J
~o. .,0
RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
Tenders for $12,680 million of 13-week bills to be issued
January 20, 1994 and to mature April 21, 1994 were
accepted today (CUSIP: 912794K29).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
2.98%
2.99%
2.99%
Investment
Rate
3.04%
3.06%
3.06%
Price
99.247
99.244
99.244
Tenders at the high discount rate were allotted 33%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED ( in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
LB-597
~~
CONTACT: Office of Financing
202-219-3350
Received
$52,425-,686
Accepted
$12,680,355
$47,548,966
1,255,260
$48,804,226
$7,803,635
1,255,260
$9,058,895
3,267,660
3,267,660
353,800
$52,425,686
353,800
$12,680,355
•
;v:st~};.
UBLIC DEBT NEWS
Department of the Treasuf), •
FOR IMMEDIATE RELEASE
January 18, 1994
.~~
~
Bureau of the Public Debt • Washington, DC 20239
Tenders for $12,644 million of 26-week bills to be issued
January 20, 1994 and to mature July 21, 1994 were
accepted today (CUSIP: 912794M50).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Discount
Rate
3.15%
3.15%
3.15%
Investment
Rate
3.24%
3.24%
3.24%
Price
98.408
98.408
98.408
Tenders at the high discount rate were allotted 78%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
TOTALS
,
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
LB-598
"'&~~.<,.
1J1.. rc v£,
CONTACT: Office of Financing
202-219-3350
RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
Low
High
Average
\\
Received
$64,524,461
Acce.Qted
$12,644,273
$57,864,737
1,084,124
$58,948,861
$5,984,549
1,084,124
$7,068,673
3,200,000
3,200,000
2,375,600
$64,524,461
2,375,600
$12,644,273
DEPARTMENT
OF
THE
IRI ~ASURY ~(~Cl
\i~~
TREASURY
NEW S
~/78q~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .
................................
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
CONTACT:
FOR RELEASE AT 2:30 P.M.
January 18, 1994
Office of Financing
202/219-3350
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $25,200 million, to be issued January 27,
1994. This offering will result in a paydown for the Treasury of
about $125 million, as the maturing weekly bills are outstanding
in the amount of $25,319 million.
Federal Reserve Banks hold $6,304 million of the maturing
bills for their own accounts, which may be refunded within the
offering amount at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $2,734 million as agents for
foreign and international monetary authorities, which may be
refunded within the offering amount at the weighted average
discount rate of accepted competitive tenders. Additional
amounts may be issued for such accounts if the aggregate amount
of new bids exceeds the aggregate amount of maturing bills.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C.
This offering of Treasury securities
is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356, published as a final rule on
January 5, 1993, and effective March I, 1993) for the sale and
issue by the Treasury to the public of marketable Treasury bills,
notes, and bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
LB - 5 9. 9-------
HIGHLIGHTS OF TREASURY OFFERINGS OF WEEKLY BILLS
TO BE ISSUED JANUARY 27, 1994
January 18, 1994
Offering Amount .
$12,600 million
$12,600 million
Description of Offering:
Term and type of security
CUSIP number
Auction date
Issue date
Maturity date
Original issue date
Currently outstanding
Minimum bid amount
Multiples .
...
91-day bill
912794 K3 7
January 24, 1994
January 27, 1994
April 28, 1994
October 28, 1993
$13,074 million
$10,000
$ 1,000
182-day bill
912794 L5 1
January 24, 1994
January 27, 1994
July 28, 1994
July 29, 1993
$15,267 million
$10,000
$ 1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids
Competitive bids
Accepted in full up to $1,000,000 at the average
discount rate of accepted competitive bids
(1) Must be expressed as a discount rate with
two decimals, e.g., 7.10%.
(2) Net long position for each bidder must be
reported when the sum of the total bid
amount, at all discount rates, and the net
long position is $2 billion or greater.
(3) Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid
at a Single Yield
35% of public offering
Maximum Award .
35% of public offering
Receipt of Tenders:
Noncompetitive tenders
Competitive tenders
Payment Terms .
Prior to 12:00 noon Eastern Standard time
on auction day
Prior to 1:00 p.m. Eastern Standard time
on auction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
DEPARTMENT
OF
THE
TREASURY (5t,!
~~~
~~'"
TREASURY
NEWS
-
~~/78q~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. .
................................
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR RELEASE AT 2:30 P.M.
January 19, 1994
CONTACT: Office of Financing
202/219-3350
TREASURY TO AUCTION 2-YEAR AND 5-YEAR NOTES
TOTALING $29,000 MILLION
The Treasury will auction $17,000 million of 2-year notes
and $12,000 million of 5-year notes to refund $14,493 million of
publicly-held securities maturing January 31, 1994, and to raise
about $14,500 million new cash.
The 5-year notes announced today include an amount sufficient
to refinance the call, announced on January II, 1994, of $961
million held by private investors of the 8 1/2% Treasury Bonds
of 1994-99.
In addition to the public holdings, Federal Reserve Banks
hold $639 million of the maturing securities for their own
accounts, which may be refunded by issuing additional amounts of
the new securities.
The maturing securities held by the public include $1,521
million held by Federal Reserve Banks as agents for foreign and
international monetary authorities. Amounts bid for these
accounts by Federal Reserve Banks will be added to the offering.
Both the 2-year and 5-year note auctions will be conducted
in the single-price auction format.
All competitive and noncompetitive awards will be at the highest yield of accepted
competitive tenders.
Tenders will be received at Federal Reserve Banks and
Branches and at the Bureau of the Public Debt, Washington, D. C.
This offering of Treasury securities is governed by the terms and
conditions set forth in the Uniform Offering Circular (31 CFR
Part 356, published as a final rule on January 5, 1993, and
effective March I, 1993) for the sale and issue by the Treasury
to the public of marketable Treasury bills, notes, and bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
LB-F,:ru-
HIGHLIGHTS OF TREASURY OFFERINGS TO THE PUBLIC OF
2-YEAR AND 5-YEAR NOTES TO BE ISSUED JANUARY 31, 1994
January 19, 1994
Offering Amount .
Description of Offering:
Term and type of security
series
CUSIP number
Auction date
Issue date
Dated date
Maturity date
Interest rate
Yield .
Interest Payment dates.
Minimum bid amount
Multiples .
Accrued interest
payable by investor
Premium or discount .
$17,000 million
$12,000 million
2-year notes
series AC-1996
912827 N5 7
January 25, 1994
January 31, 1994
January 31, 1994
January 31, 1996
Determined based on the
highest accepted bid
Determined at auction
July 31 and January 31
$5,000
$1,000
5-year notes
Series J-1999
912827 N6 5
January 26, 1994
January 31, 1994
January 31, 1994
January 31, 1999
Determined based on the
highest accepted bid
Determined at auction
July 31 and January 31
$1,000
$1,000
None
Determined at auction
None
Determined at auction
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids
Accepted in full up to $5,000,000 at the highest accepted yield
competitive bids . . .
(1) Must be expressed as a yield with two decimals, e.g., 7.10%
(2) Net long position for each bidder must be reported when the
sum of the total bid amount, at all yields, and the net long
position is $2 billion or greater.
(3) Net long position must be determined as of one half-hour prior
to the closing time for receipt of competitive tenders.
Maximum Recognized Bid
at a Single Yield
. 35% of public offering
Maximum Award . . . . . . . 35% of public offering
Receipt of Tenders:
Noncompetitive tenders
. Prior to 12:00 noon Eastern Standard time on auction day
Prior to 1:00 p.m. Eastern Standard time on auction day
competitive tenders . .
Payment Terms . . . . . . . Full payment with tender or by charge to a funds account
at a Federal Reserve Bank on issue date
DEPARTMENT
OF
THE
TREASURY
178<)
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
STATEMENT OF TREASURY SECRETARY LLOYD BENTSEN
DEPARTURE PRESS CONFERECE
BEIJING, CHINA
JANUARY 21, --1994
We're winding up our visit to Beijing and I wanted to take a
few minutes with you to let you have my impressions or the trip.
We had a very productive set of discussions.
I have a much greater appreciation of China's economic
accomplishments, and of the opportunities and challenges that lie
ahead.
This is a very different country than the one I visited
in 1978.
I came here with three objectives.
America's economic interests in China.
The first was to pursue
Even J::Iefore ..1- arrived there was progress. We reached an
important agreement on textiles, and China decided to unify its
exchange rates. We also saw China make commitments in the
context of the Joint Economic committee to open its financial
markets by allowin9 branches in areas that have previously been
closed to foreign banks.
In addition, the Chinese also saia they
are willing to allow foreign banks, on an experimental basis, to
engage in local ~urrency business.
We have a lot more to do. But we have now in place, in th8
form of working groups under the Joint Economic Committee, a
framework in which to resolve these issues.
My seoond objective in coming to China was to support the
reform efforts in which the entire world has such a great stake.
Mr. Zhu Rongji and I had a good talk about the challenges ahead.
In the joint statement we released on the conclusion of the JEC,
we announced an intensified program of technical assistance.
We also discussed the Asia Pacific Economic Cooperation
or9anization and the upcoming finance minister's meeting.
With China's infrastructure needs and the huge capital flows it
has been experiencing, the agenda promises to be especially
relevant to China.
(MORE)
L\3,-~o\
While we were talking about international economic
integration, we also touched on the GATT. I was able to talk
with the Chinese authorities about ~he next stage of the process
of qsininq en~ry to GATT, which be9ins in a few weeks here 1n
Beijinq.
My third objective was to make clear that our concerns abo~t
human rights remain fundamental. There has been progress, but
more remains to be done.
I had qood, frank discuss.ions with each of the senior
officials. I think We all understand where the MFN issue now
stands. I think they understand the standards laid out in the
executive order. They have heard the same message trom the
American people, from recent congressional delegations, and in
the messaqe I carried from the President.
I am pleased with the progress on prison labor. But let me
just say that this is just one part of the Executive Order. And
the important pOint is overall progress on human rights when it's
time for the President to make his decision.
I leave this afternoon for Shanghai where I am eager to see
first hand the role that the new entrepenuers are playing in
China's impressive economic 9rowth.
-30-
DEPARTMENT
OF
THE
TREASURY
~/7Rq~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1I
..........................................
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR IMMEDIATE RELEASE
Text as Prepared for Delivery
January 23, 1994
STATEMENT OF TREASURY SECRETARY LLOYD BENTSEN
TOKYO FRAMEWORK BILATERAL PRESS CONFERENCE
TOKYO,
JAPAN
President Clinton asked me to stop in Japan and talk with
Japan's leaders about our framework discussions, and the importance
of our strong bilateral relations.
We had some very candid discussions this afternoon with the
Prime Minister and the Finance Minister_
We took stock of where
things stand on our framework agreement and our economic relations
with Japan.
I told the Prime Minister that President Clinton is committed
to opening markets.
We've seen real progress in the past year.
Look at the GATT, and NAFTA, and what's happening in APEC.
With
the summit approaching early next month, attention is shifting to
Japan and markets that are not as open a8 our own.
What we're looking for in the framework is progress in Japan
getting into step with the world economy.
Japan is out of step
right now.
It has a continuing trade surplus.
It has the lowest
penetration of manufactured import~, and it has the lowest foreign
investment levels among the major nations.
We covered a number of points with the Prime Minister.
I told him that we want a good set of agreements in the three
areas with a February 11th deadline.
From our perspective, we
yould far prefer no agreements to weak agreements.
If we do not
have credible agreements by the time of the summit, we would have
to re-examine the basis of the framework.
(MORE)
LB-602
The second major point is that we need to see a sustained and
strong fiscal stimulus by the Japanese.
Under the framework the
United states agreed to cut its deficit. We have done that. Japan
agreed to do what was necessary to achieve strong domestic demandled growth, and a highly significant reduction in its current
account imbalance.
If you look at the figures, that hasn't
happGnGd yet. In addition, the forecasts are not very encouraging.
We're looking for strong and sustained fiscal action.
There will be a lot of negotiating in the next several weeks.
No ona should doubt the United states' determination to see an open
Japanese market.
We're prepared to negotiate on a good faith,
pragmatic basis over the next several weeks.
-30-
DEPARTMENT
OF
THE
TREASURY
~~~~~~/~789c:~. . . . . . . . . . . . . . . . . . . . . . . . . .II....II..1I
..............................
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
STATEMENT OF TREASURY SECRETARY LLOYD BENTSEN
DEPARTURE PRESS CONFEREeE
BEIJING, CHINA
JANUARY 21,-1994
We're windinq up our vi.it to Beijinq and I wanted to take a
few minute. with you to let you have my impressions or the trip.
We had a very productive set of discussions.
I have a much greater appreciation of China's economic
accomplishments, and
the opportunitiQ$ and challenges that lie
ahead. This is a very different country than the one I visited
in 1978.
0'
I came hare with three objective~.
America's economic interests in China.
The first was to pursue
Even _be~oreI. arrived· ther·. was proqrass. We reached an
important aqreement on textiles, and China decided to unity its
exchange rate$.
We also saw China make commitments in the
contQxt of the Joint Economic Committee to open its financial
markets by allowing branch.. in areas that have previously been
closed to foreign banks.
In addition, the Chinese also said they
are ~illing to allow foreign ~anks, on an experimental basis, to
engage in local currency business.
We have a lot more to do. But we have now in placa, in thQ
torm ot working groups under the Joint Economic Committee, a
framework in which to resolve these issues.
My second objective in coming to China was to support the
retorm e~~orts in which the .ntire world has such a great stake.
Mr. Zhu Ronqji and I had a good talk about the challenges ahead.
In the joint statement ~e releaaed on the conclusion or the JEe,
we announced an inten~i!ied program ot technical assistance.
We also discu~~ed the Asia Pacific Economic Cooperation
organization and the upcoming finance minister's meeting.
With China's infrastructure needs and the huge capital flows it
has been experiencing, the agenda promises to be especially
relevant to China.
(MORE)
LB-6~
While we were talkinq about international &conomic
we also touched on the GATT. I was able to talk
with the Chinese authorities about ~he next stage ot the process
of qaininq entry to GATT, which begins in a few weeks here in
in~.qration,
Beijinq.
My third objective was to make clear that our concerns about
human rights rQm~in fundamental. There has been progress, but
more remains to be done.
I had good, frank. discus.ions with each of the senior
I think we ~ll understand where the MFN issue now
stands. I think they understand the standards laid out in the
execu~ive order.
They have heard the same message from the
American people, from recant congressional delegations, ~nd in
the message I carried from tha President.
ot~icials.
I am pleased with the progress on prison labor. But let me
just say that this is just one part of the Executive Order. And
the important point is overall progress on human rights when it's
time for the President to make his decision.
I leave this afternoon tor Shanghai where I am eager to see
first hand the role that the nGW entrepenuers are playing in
China's impressive economic growth.
-30-
DEPARTMENT
TREASURY··
OF
THE
TREASURY
EWS
~j/78q~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ..
....................................
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
ADDRESS OF RICHARD S. CARNELL
ASSISTANT SECRETARY OF THE TREASURY
FOR FINANCIAL INSTITUTIONS
TO
WOMEN IN HOUSING AND FINANCE
LEGISLATIVE AND REGULATORY TASK FORCES
WASHINGTON, D.C.
JANUARY 24, 1994
Introduction
I'm here today to present a dispassionate overview of what -- surprisingly -- has
become a passionate debate on the benefits of consolidating into a new Federal Banking
Commission the depository institution regulation that is now parcelled out among four federal
agencies. Each of the four agencies has essentially the same regulatory powers and
functions. Because of this overlap, depository institutions must carry excessive regulatory
costs and burdens. These costs are passed on -- in one way or another -- to customers. Our
plan to consolidate regulatory functions -- which I modestly tenn the Administration's
proposal -- would make the government operate more efficiently. It is one small effort to
eliminate needless bureaucracy. Banks would benefit, business would benefit, consumers
would benefit -- almost everyone would benefit -- from our modest proposal.
On the administrative level, our proposal is simply the governmental equivalent of a
private manufacturing finn putting all of its accountants in one office, instead of each
division of the company operating an accounting department of its own. Streamlining
operations, it's called.
Of course, that analogy breaks down fairly quickly once you rise above the level of
administration -- who works where and at what desk. In banking, the problem is more than
just a duplicative examination workforce. The regulatory agencies often have differing
substantive standards and procedural requirements, so that depository institutions overseen by
two or more of the agencies are often subject to conflicting regulations, and thus to needless
confusion, inordinate delays and unnecessary paperwork.
For example, a bank holding company that owns a national bank, a state nonmember
bank, and a thrift, will have four federal regulators: the Office of the Comptroller of the
Currency for the national bank, the Federal Deposit Insurance Corporation for the state bank,
the Office of Thrift Supervision for the thrift, and the Fed for the holding company. Each
agency regulates a piece of the whole, sometimes applying different rules to similar
situations, sometimes applying the same rules differently. In thousands of cases, as in this
LB-604--·
2
example, the bank holding company regulator is not even the regulator of any of the holding
company's depository institution subsidiaries.
But the benefits of our proposal go beyond reduced costs. Under the current system,
regulators are sometimes constrained from taking needed action by the knowledge that the
action could prompt an institution to switch charters to a more lax regulator. That is to say,
the current system of multiple regulators undercuts the effectiveness of banking regulation.
This "competition in laxity" -- a term much beloved and belabored by former Federal
Reserve Board Chairman Arthur Bums -- would be ended by our proposal.
Further, in reinventing bank regulation by eliminating redundancy and waste, we're
promoting the competitiveness of our banking industry, which in tum will boost economic
growth and productivity. Will agency consolidation change the world? No. Will it
contribute to greater economic well-being? Undeniably. Every dollar that pays for
unnecessary and redundant regulation adds to the cost of financial services. Under our
proposal, banks and thrifts will focus on what they are supposed to do -- carry on their
business -- instead of wasting time dealing with multiple regulators or exploiting the current
system by playing one regulator off against another.
Specific Benefits
Let's take a moment to look at some of the specific benefits our proposal would bring
to banks, businesses, and consumers.
First of all, in addition to cost savings and an end to duplication and waste, the
Administration's proposal would result in another major benefit for banks. It would give the
industry a single federal agency charged with -- and accountable for -- ensuring the long-term
vitality of banking. The current set-up is too poorly structured to safeguard the viability of
the bank franchise -- and that is a design flaw. Having too many regulators means that
nobody is accountable. And any regulator who assumes accountability has only limited
ability to influence the overall structure and effectiveness of the federal supervisory system.
A single regulator, whose mission is supervision and regulation, will be more efficient and
more responsive to the industry's problems and concerns than is the arrangement we have
now. Further, the Administration's proposal will lead to quicker attention to significant
policy issues by eliminating the need for time-consuming, cumbersome inter-agency
negotiations, which often produce unsatisfactory results. The design flaw in the current
system isn't just theorizing. In the late 1980s, the warning signs were clear that banks had
overinvested in commercial real estate loans, but the regulators could not agree on a unified
strategy to address the problem. As we know only too well, this failure to act led to
enormous financial losses.
Correcting this flaw would particularly benefit smaller, community-oriented
depository institutions. Right now, most community banks have regulators with higher
priorities: conducting monetary policy and managing the deposit insurance system. The
3
Federal Banking Commission will have no higher priorities -- regulation and supervision
would be its focus.
Second, the Administration's proposal would be good for business because it would
help restore stability to a banking industry that -- over the past decade -- swung between
granting credit to anyone with a pulse and granting credit to no one. When federal banking
policy has been adrift, businesses suffer. And small businesses have been hit especially
hard, since they depend heavily on the banking sector for credit.
In one important sense, the current supervisory structure destabilizes banking: Simply
trying to coordinate policies and regulations between the four agencies can take months of
effort, involving hundreds of people in complex negotiations. And still, in the end,
coordination often proves impossible. In recent years, it has sometimes literally taken an Act
of Congress to get the regulators to coordinate.
Let's not forget why we have federal banking supervision -- not simply because we
care about banks in and of themselves, but because we care about the support banks provide
the economy. America's business community faces increasingly competitive markets. It
needs a banking system that can keep pace with it. It does not have one, in part because of
the current regulatory structure. The Administration's proposal would strengthen banking,
and a stronger banking system could support the economy, and business, that much more.
Third, the Administration's proposal would benefit consumers. Just as with business,
it would assure consumers a stable banking system that met their convenience and needs -- in
this case, one that provides individuals with a safe place to keep their money and a stable
source of credit. Over the past decade, millions of consumers have lost the bank branches
they used to do business with and have been forced to find new sources of credit and new
places to keep their savings.
The proposal will also provide a system consumers can understand. The current
system is so complex that most consumers have no idea who to complain to when something
goes wrong.
The proposal will give consumer interests something they have never had before: a
federal regulator that takes them seriously because, again, it is focused on bank supervision,
not on monetary policy or deposit insurance.
Criticisms Addressed
The Administration's proposal is simple and straightforward -- just like the system of
banking supervision we're trying to create with it. Yet it seems that from the moment we
announced it last November 22, some critics have engaged in a campaign to bring every
conceivable argument -- the logical and the illogical, the thoughtful and the fallacious -before the public. None of these arguments has been compelling, despite the forceful and
4
urgent tone used by those who make them. I want to address several of those arguments
today.
Before I do so, I must note that any recommendation for change seems to spark
opposition. This is understandable. By its very nature, change is disruptive and it produces
uncertainty by requiring us to develop new ways to meet on-going responsibilities, or to give
up some longstanding responsibilities, or perhaps both. So proposing change invariably
starts a lot of political maneuvering.
Monetary Policy Responsibilities. Some critics of the proposal argue that the Federal
Reserve's ability to carry out its responsibilities as the Nation's central bank depends on it
having supervisory authority over banks and bank holding companies -- that is to say,
requires intimate knowledge of the condition of banks that can be gained only through direct
examinations.
Contrary to the assertions made by these critics, the Fed can carry out sound
monetary policy without being the primary federal regulator of all or some banks. What the
Fed does need is information about the flow of funds throughout the economy and on
conditions in financial markets and financial institutions.
The reality is that today the Fed supervises only 7 percent of all FDIC-insured
depository institutions -- and only 15 percent of depository institution assets. Most Fedsupervised banks are relatively small -- more than two-thirds have less than $100 million in
assets. Obviously, the integrity of monetary policy and the stability of the financial system
do not rest on continued Fed oversight of these banks. It's interesting to note that several
central banks in major industrialized countries get along fine without any involvement in
bank regulation or supervision.
Of course, we want to avoid any possibility of impeding the Fed from getting all the
information it desires about the overall state of the banking system and in the condition of the
largest banking companies. Under the Administration's proposal, it will have that
information. A representative of the Fed will sit on the 5-person board of the new banking
agency. The Fed will be privy to all the Commission's deliberations. And the Fed will have
access to every report the banking agency's examiners file.
Further, Federal Reserve examiners will be able to participate actively in the
Commission's examinations of key institutions. Considering that the Fed currently examines
only 7 of the top 25 banks, the Administration's proposal represents an expansion of the
Fed's information-gathering capacity. So the argument that the Fed needs to be a primary
federal regulator of banks to get the information it needs to conduct monetary policy is
simply not persuasive, given the facts.
The Administration strongly believes that the Fed -- as our nation's central bank __
must conduct monetary policy, provide discount window lending, oversee the payment
5
system, and coordinate actions with other central banks. Under our proposal, none of those
powers change. The Fed will continue to provide credit through the discount window,
regulate the payment system, and manage the growth of the money supply -- and will retain
the rulemaking and other authority necessary to carry out those responsibilities.
Furthermore, the Fed will still participate in market oversight of government securities
dealers and brokers, as part of its responsibilities for open market operations.
Responding to Crises. Another claim critics make is that the Fed needs to maintain
its examination and supervision authority to respond to crises in the financial system. There
are several flaws in this argument as well.
First, banks no longer dominate the financial system. That's not to say that banks are
unimportant, but it is to say that the Fed's role in systemic stability has been focused for
some time on markets rather than banks -- and quite rightly so. That's where its real
interests are. Second, in the last couple of decades, most of the crises in financial markets
were not triggered by problems in banks. That was the case in the failure of Drexel
Burnham Lambert in 1990, the October 1987 stock market crash, the collapse of private
deposit insurance funds in Rhode Island, Ohio, and Maryland, the collapse of the silver
market, and the bankruptcy of the Penn Central Railroad.
Third, whatever the likelihood that banks might cause a future crisis, recent
legislation, such as the FDIC Improvement Act of 1991, has greatly reduced it. Regulators
must close or sell a bank before it dissipates its capital. The Fed itself must limit healthy
banks' credit exposure to weak banks. Thus, the Fed doing routine examinations of some
banks won't be the key to its preventing future catastrophes.
Fourth, should a crisis occur and people lose confidence in financial markets or in
one or more of their crucial participants, the Fed must provide liquidity quickly. But it can't
lend to an insolvent institution. Unless we're prepared to consolidate all bank supervision
under the Fed -- and neither the Fed nor the Administration advocate that -- then for many
banks, the Fed and the bank supervisor are going to have to work together to make the
decision to lend through the discount window. If this arrangement can work for many banks,
why can't it work for all?
Finally, the Federal Reserve lends to banks only on a fully secured basis. Indeed, it
traditionally accepts only the highest quality collateral, government securities. It doesn't take
knowledge about banking to evaluate government securities. Even if the Fed were to lend
against other types of assets, then it still -- in the words of former FDIC Chairman William
Isaac, "doesn't take an examiner to be a fully secured lender. "
"Moral Suasion". In an unrelated claim, some critics argue that the Fed needs
supervisory authority in order to have "moral suasion" over banks. But given the Fed's
control over discount window lending and the payment system, its role in the Federal
Banking Commission, its participation in the Commission's examinations, and the power of
6
position the Fed Chainnan holds. the central bank won't need to be able to threaten
institutions with supervisory actions to get them to respond to its wishes.
Although this proposal would shift some of the Fed's current functions to the
Commission, but those functions are not essential to the Fed's operations as a central bank.
And unless we're willing to face those kinds of decisions, we cannot make government more
efficient.
Concentrating Authority. Opening the battle on another front, some critics claim that
the Administration's proposal would concentrate too much power over the banking industry
in a single agency -- and that "monopolizing" regulatory authority over banks in a single
federal agency would damage the public interest.
Certainly, the proposal would concentrate bank supervisory authority -- that's the flip
side to eliminating redundancies. The critics here are taking the virtue of the proposal and
trying to make it into a vice. Consolidation would eliminate inefficiencies and the potential
for an institution to get conflicting advice from different bank federal regulators. Those are
tangible benefits. The critics say that agency consolidation would be a bad thing because the
new Commission would "monopolize" regulatory authority -- but never credibly explain why
it would be a bad thing, why it would be damaging. They are using a loaded term -"monopolize" -- to raise a vague, threatening specter -- a specter that dissolves in the light of
analysis. The danger cannot be because banks dominate the market for financial services -with about a third of the financial services industry's assets, they don't. What's the
problem? Where is the danger?
Conclusion
In conclusion, if you were to give the Administration's proposal a fair trial on the
charges levelled against it, you would have to throw out the charges for lack of evidence.
We want to save money -- ultimately, for the consumer -- by reorganizing a function to make
it more efficient. Businesses in this country do that sort of thing every day, but when the
government tries to do it -- simply as a matter of dollars and cents -- suddenly this
managerial issue becomes a battle between good and evil. We want to straighten out a
bureaucratic mess in one small corner of government -- banking regulation -- but some critics
depict our efforts as imperiling the financial system. I can't see how any reasonable,
objective person who really understands our proposal could reach those conclusions.
Give our proposal a fair trial in your own minds -- that's all we're asking. Because
when you do, we believe you'll find it as reasonable -- and as needed -- as we do.
Thank you. I'll be happy to respond to any questions.
UBLIC DEBT NEWS
Department of the Treasurv •
FOR IMMEDIATE RELEASE
January 24, 1994
Bureau of the Public Debt • Washington, DC 20239
•
.
CONTACT: Office of Financing
202-219-3350
Tenders for $12,683 million of 13-week bills to be issued
January 27, 1994 and to mature April 28, 1994 were
accepted today (CUSIP: 912794K37).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Discount
Rate
2.95%
2.96%
2.96%
Investment
Rate
3.01%
3.02%
3.02%
Price
99.254
99.252
99.252
Tenders at the high discount rate were allotted 93%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED ( in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
LB-605
Received
$67,868,148
Accegted
$12,683,119
$63,438,270
1,006,978
$64,445,248
$8,253,241
1,006,978
$9,260,219
3,153,900
3,153,900
269,000
$67,868,148
269,000
$12,683,119
.
.
\A&~~~)
~~~
RESULTS OF TREASURY'S AUCTION OF 13-WEEK BILLS
Low
High
Average
~~f,AS{Jlir ~;,
••
I
UBLIC DEBT NEWS
RESULTS OF TREASURY'S AUCTION OF 26-WEEK BILLS
Tenders for $12,676 million of 26-week bills to be issued
January 27, 1994 and to mature July 28, 1994 were
accepted today (CUSIP: 912794L51).
RANGE OF ACCEPTED
COMPETITIVE BIDS:
Low
High
Average
Discount
Rate
3.13%
3.14%
3.14%
Investment
Rate
3.22%
3.23%
3.23%
Price
98.418
98.413
98.413
Tenders at the high discount rate were allotted 15%.
The investment rate is the equivalent coupon-issue yield.
TENDERS RECEIVED AND ACCEPTED ( in thousands)
TOTALS
Type
Competitive
Noncompetitive
Subtotal, Public
Federal Reserve
Foreign Official
Institutions
TOTALS
LB-606
Received
$60,437,498
$12,675,989
$54,234,317
901,281
$55,135,598
$6,472,808
901,281
$7,374,089
3,150,000
3,150,000
2,151,900
$60,437,498
2,151,900
$12,675,989
Acce~ted
DEPARTMENT
OF
THE
TREASURY
_ _ _ _ _ _ _ _ _ _ _ _...::/7Hf:q:...11 ____________
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR IMMEDIATE RELEASE
January 22, 1994
STATEMENT BY TREASURY SECRETARY LLOYD BENTS13N .
Russia's economic future depends on the vigor with which it implements President
Ycltsin's commitment to reform. I am troubled by some of the indications we are getting out
of Russia. There is no way to have a healthy economy without controlling inflation, and no way
to slow inflation without conlIUlling budge::t de::ficits and credit growth. The capacity of the
International Financial Institutions to provide direct support will depend on Russia taking
credible measures to reduce inflation. The 0-7 and the IFIs continue to be prepared to rapidly
reinforce stabilization and refonn.
-30-
LB-607
DEPARTMENT
TREASURY
OF
THE
TREASURY
rl) NEW S
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
Janauary 24) 1994
For Immediate Release
Monthly Release of U.S. Reserve Assets
The Treasury Department today released U.S. reserve assets data for the month of
December 1993.
As indicated in this table, U.S. reserve assets amounted to $73,442 million at the end
of December 1993, down from $74,042 million in November 1993.
End
of
Month
Total
Reserve
Assets
Gold
Stock 1/
Special
Drawing
Rights 1J.3/
Foreign
Currencies
Reserve
Position in
1/
IMF1/
November
74,042
11,054
9,091
42,070
11,827
December
73,442
11,053
9,039
41,532
11,818
1993
11
Valued at $42.2222 per fine troy ounce.
1/ Beginning July
1974, the IMF adopted a technique for valuing the SDR based on a
weighted average of exchange rates for the currencies of selected member countries. The
U.S. SDR holdings and reserve position in the IMF also are valued on this basis
beginning July 1974.
J./
Includes allocations of SDRs by the IMF plus transactions in SDRs.
1/
Valued at current market exchange rates.
LB-608
DEPARTMENT
TREASURY
OF
THE
TREASURY
r.·'} NEW S
-s-~~
'~~7
.::/7Kq~• • • • • • • • • • • • • • •_
••••••••••••••••
ISOO PENNSYL\,ANL\ A\,ENliE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
Transcripts
of
Public Speaking Engagements
Moscow
1anuary 12, 1994
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Document Type: Transcript
Number of Pages Removed: 20
Author(s):
Title:
Kremlin/Press Conference By U.S. Treasury Secretary Lloyd Bentsen With A Group of
American
Journalists (Metropol Hotel)
Date:
1994-01-12
Journal:
Volume:
Page(s):
URL:
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
DEPARTMENT
OF
THE
'TREASURY ('+)
TREASURY
NEW S
lS()() PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
Transcripts
of
Secretary Bentsen's
Public Speaking Engagements
Jakarta, Indonesia
January 17, 1994
SENT BY:US~~SSY JAKAiTA;l~- 1-94
7:56PM ;USISJKT62-21-3810243~
202 622
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
American Chamber of Commerce in Indonesia
Jakarta, Indonesia
January 17, 1994
unofficial transcript of remarks as delivered, followed by
questions and answers from members of AMCHAM Indanesia:
SECRETARY BENTSEN: Thank you very much Mr. Chairman.
I've
had quite an involvement with Chambers of Commerce. What the
chairman did not say, I spent 16 years building a business of
my own. In turn, I served on a number of International Boards
of Directors while I was in business.
I just left MOSCOW where I joined 1n the organization of the
first meeting of the American Chamber of Commerce in Moscow. I
was on the Board of Directors of the Chamber of Commerce in
Houston Texas, so I understand something about where you're
coming from.
In building a business and doing that for 16 years and then
going to the Senate, I must tell you I never intended to spend
22 years there. But that I did. Seems to me every time
someone else decided they wanted the job, I thought I must be
overlooking something in it and I decided to stay on.
(laughter)
I told my kids, I said, I don't want anyone of you going into
politics, we can afford only one at a time. And I said,
besides that don't you ever get into a business where they pay
you off in plaques. I said, either get something you can eat
or put in the bank, whatever the career is that you go into.
(laughter)
But I am delighted to have a chance to be with you and visit
with you for a few minutes. Let me tell you, too, that I think
the United States government, the United states has got its adt
and put it together.
I believe American business is as competitive as it has ever
been. Squeezed out a lot of the fat. But at the same time
that you saw those big headlines about 20,000 being laid off
here and 5,000 being laid off there, a lot of out-sourcing was
being done to small business. They were adding five welders
over here, three computer workers over there, ten case worker~
over there. And it added up to over 2 million jobs last year
Over 2 million, and they weren't just hamburger-flipping jobs
Some good jobs in that one. So we have seen more businesses,
more jobs added in 1993 than we saw in the preceding four
years.
'999;~
?
One of the reasons is that we were serious about cutting
that deficit. Five hundred billion over five years, and we are
ahead of schedule on it. The skepticism, the cynicism about
are they really going to carry through with it -- we've been
dOing it. And that 1s one of the reasons you are seeing the
lowest interest rates, long-term, that you've seen in 25
years. It's one of the reasons you are seeing the low shortterm rates that you're seeing today.
One of the problems that I can remember so well for American
business just five, ten years ago -- the Japanese having
int.rast rates, long-term, one percent. And then they'd have
some (inaudible) out there, with the conversion factor to
accompany them, were selling 100 times earnings. Or the rate
set by the Bund.esbank, and that cost of capital gave those
countries and their businesses an enormous competitive
advantage. Not true anymore.
You're seeing very competitive rates for American business.
And that's one of the reasons that I think that American
business is in better shape in the way of competition than it
has been in many years -- ready to take them on. Take them ort
around the world.
What you are also seeing on the part of this government is that
we want to assist, we want to help. We'll push your businesses
1n any way we can. That's why your seeing these embassies widh
the attitude of trying to assist.
there thinqs we ean do better? -- Of course there are.
That's one of the reasons that I am here, to listen to your
input and what you think we can do to help make it better. To
look at what's happened in this last year insofar as trade,
what's been taken on and what's been won. NAFTA -- Oh, I adm~t
there are some broken arms left in the Congress, but
nevertheless we've pulled it off and put it together.
At~
I
This is the fastest growing area in the world. The second
tastest growing area 1s Latin America. And we want to be a
part of both of those and participating. As we look at the
kind of jobs that are created, tow and a half million jobs in
the United states dependent on products that we're exporting ~o
this part of the world. That's why it's important.
I know that a lot of people tend to look at trade for the
united States in this part of the world through the prism of
what the relationship 1s with Japan. And we are working on
that with a framework agreement. But it is much more than just
JapAn, to see What we're dOing throughout this part of the
world and how much we want to be a part of it.
Let me give you an example of what trade means to us. The fact
that since the mid-1980s half of our increaaed income and
almost all of our increase in manufacturing jobs have been
brought about because of exports. One job in every eight in
SENT BY:UStLAMEMBASS't.JAKARTAH"7- 1-94
7:58PM ;USISJKT62-21-3810243~
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the United States exists because of trade. And the o.s. trade
with Asia has grown faster than with any other region of the
world.
The APEC nations produce more than half of all the goods and
services in the world. More than half of all the other regions
in the world. We now get 60 percent of our imports from APECi
nations, and those countries buy approximately half of our
.
total exports. That's what we're looking at, that's why it'si
important, that's why we are emphasizing this part of the
world. If we were to increase our market share by just one
percent in ASia, that would add another 300,000 jobs for the
United states.
Here is anothe~ number that I think is important. Trade
between the United states and its APEC partners is 172 percen¢
larger than our trade with the European community.
I
NOW,
if you recall, President Clinton met with APEC heads in
I
seattle in November. That was a Sign of how important we think
this part of the world 1s to us.
The emphasis 1n my discussions today, and those I will hold
during the week, and the meetings I will have, will be how we
can make this a cooperative venture. It ought to be a
consensus-building exercise, building on that formula which
worked so well in the APEC trade and investment meetings. I
want to stress our common interests, not anyone country's
bilateral agenda. Our common interest is to sustain this
region's economic growth.
I also will be liat$ning to my counterparts about their viewsl
on the APEC Finance Minister's meeting which we will be havin~
in March, and we'll be doing that one in Hawaii.
!
Before I wind up things and take some questions, I want to
cover a few specific things that may be on your minds,
particularly here in Indonesia.
It is critical to the development of this region, and to the
global economy, that we make certain that investment flows are
not impeded. A free flow of capital is vital to bringing the
benefits of the developed world to the citizens of the
developing world.
As many of
during the
to open up
that other
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you are aware, this issue was among our top concerns
recent GATT negotiations. The United States wants
the financial markets of the world. And I believe
economies should be just as open as ours.
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World War II, and as we were trying to help other countries of
the world improve their standard of living, put their act back
together, we made amazing concessions in the way of openin9 up
our market. It was just as though you were playing golf with a
fellow that had just started the game and you gave him an
enormous handicap. But as he got his swing back together, and
as he began to sink his putts, we never adjusted the handicap
And that is why it'. important that we get ourselves on an
equal footing and open up these markets.
This economy has had absolutely remarkable success -- to have a
country that for 25 years has had almost a 7- percent
compounded growth; that has had 60 percent of its people living
below the poverty line and now has approximately lS percent.
To see what's going to happen in the way of investment and
upgraded infrastructure in this country and to many of the
countries around the world who are straining at the seams on
the infrastructure now overloaded. Meeting those challenges
will be a great payoff for the private sector. And they are
gOing to require those things that make that market effectively
work. They'll also require things that make it easier to move
capital into Indonesia.
I think that the Indonesian government has recognized that they
have to liberalize the investment regime, and they've done some
of that. But there's more to be done in the way of
deregulation. I believe it can be done here and elsewhere
throughout the region. That's one of the things I'll be
discussing while I'm here.
Now let me close with a couple of thoughts.
There is a lot of development work to be done here in
Indonesia. And I know your companies have been disadvantaged
here and elsewhere, because of the conceseional financing that
our competitors have available to them. So I want you to know
that where there's an American company in the running for a
contract, we're not at all above stepping up to argue you point
of view. And if more than one of you American Companies,
forgive me, but we'll do it in a generic way.
And finally, let me wind up by aaying my main theme: we'll
work to get the climate right for you to do business, and worK
to get those tariffs and other barriers down. And since our
companies have become leaner and mora competitive over the
years, I think you are gOing to do well.
Thank you, and now let me ask for questions. Mr. Chairman, let
me put in a couple of ground rules. First, stand up and give
me your name and who you are associated with. And no six-part
questions. I usually can't remember past the second one. And,
for the moment, I am the only one who is supposed to make a
speech, OK? Let's go ahead.
Mr. Secretary, I chair the Trade Expansion Committee in the
Chamber. You made mention of finanCing, of export credit
financing and so forth. What do you see as the prospects fot
more funding and a more aggressive approach by EXIM bank,
w~ich, as you noted, export finanCing, and particularly project
flnancing, are extremely important here?
Q:
SENT BY:U5~AMEMBAS5Y JAKA~TA:~1- 1-94
BENTSEN:
Q:
7:59PM ;U5ISJKT62-21-3810243~
202 622 1999;# 6
On the Export/Import Bank were you asking?
Yes s1r.
BENTSEN:
You had your hand over the mike there.
well, I tell you it's tough to get additional funds because of
the budget constraints and what we are trying to accomplish jn
that regard. There is •.. It is an absolute priority to
increase trade, to do what we can to level the playing field
out there. But insofar as major, major new appropriations for
that purpose, it 1s an uphill fight. The budgetary caps are
serious. They're real. And you can say, well, now, in the
long run it's going to payoff very handsomely. But the lon~
run tor us is ·five years. That's the budget we are set up or..
I'd like to tell you just what you want to hear, but I can't,
you know.
Mr. secretary my name is John Bates and I'm with
(inaudible) Indonesia here. I wanted to ask you, you mentioned
that one of the big advantages that the O.S. is now
experiencing is lower inflation rates relative to other tradlng
partners. I know you cannot see through your crystal ball ir.to
the future, but if five years is your time horizon, do you
expect the O.S. interest rates to remain competitive to those
foreign countries we are dealing with in the APEC area? Thank
you.
Q:
I
BENTSEN: I've learned not to make predictions on interest
rates. I w1ll tell you that people like those four or five
fellows right seated over there, they'll remind you of what
you've done, those are reporters, you see. They'll take it
down on me. I will tell you this, I refinanced my home
recently. And I did it with an arm, I did not take a
thirty-year mortgage. (laughter, applause)
0: Mr. Secretary, I'm Marvin Turner with an engineering
company from New York And to follow up on the Exim Bank point,
I would register a concern. I am involved in negotiations at
the moment where the use of Exim financing would be helpful.
Our major concern 1s the time required to handle paperwork and
to take advantage of those facilities.
BENTSEN: And so it always is with government. And I
understand that concern. I do not have a direct responsibili~y
with Exim bank, I can punt that one. But I share the concern.
Whatever we can do to help influence it, we will, to try to
accelerate it. Sometimes it takes so 10n9 it becomes academic,
it's after the fact and you lost the deal.
Mr. Secretary, Jim Philgo. I j~at wanted to make one point
and ask for a feelinq on the timing for this. I donlt know if
anyone has mentioned to you (that) Indonesia would be an
excellent stepping stone into the. Vietnamese market. And I
Or
would certainly like to have your idea of when that embargo
will be ended so we can begin moving American interests into
Vietnam. Thank you.
BENTSEN: Well I'd say that decision has not been made, but I
think that it will be forthcoming quite soon. I think that you
have seen progress being made in that direction by the
Vietnamese and by the United states government. But we share
the concern. I cannot give you a definitive date because we
have not decided. I wish I COUld. But what you have seen is
an easing of getting involved in the contracts where you've had
some financing that has been brought about by the bank and
letting American business to a degree take advantage of that
Some of the reports we are getting back are quite encouraging,
what we've heard.
0: Mr. Secretary I think that everyone here understands that
the Administration has been a strong supporter of free trade
and of Indonesia and we always, being 12,000 miles away from
Washington, wonder how we as businessmen here can help in
Washington selling Indonesia's story and how that creates
opportunities and jobs in the united States. Could you give us
your comments on that?
BENTSEN: well I went into that, I thought, some, but the
fastest growing market around the world today is in this part
of the world. We want to be a part of it; we want a closer
relationship, we want a better understanding; we want Indonesia
to have a higher profile back home and particularly for
American businessmen. And not just SOme of the bi9 companies
that are represented here. We want some of the middle
companies, the middle size to show an interest. That's where a
lot ot our growth is coming in the United states today. By
smaller entrepreneurs who are ready to take some risks. And I
think that what we are seeing now, with the- kind of cooperation
we are getting out ot our government and the embassies in these
various parts of the world, it makes it easier for the
medium-sized company to understand and be able to participate.
I'm really amazed at the modesty and the lack of aggressive
point being made on something like 9/11. I really thought I
was going to get a question on 9/11. But I had some earlier
talking to me about it and I want to go back and do some
further research on it. I have not been back on the 9/11 issue
for some time. I do recall that I held hearinqs throughout
this p~rt of the ~orld when I was a United States Senator. At
that tlme, as I reca~l, you all talked me into pushing it up to
$10,000. I asked thlS morning, I said, what is it now? They
said $70,000 and that was a few years ago, so weill go take a
look at it.
MY name is Ari Anardi. I'm from the U.S.-Indonesian
Bilateral Committee of the Indonesian Chamber of Commerce.
Altho~gh there are a lot of positive signs with U.S.-Indonesian
relatlons, there are still some clouds on the horizon, namely
Q:
SENT BY:USI~MEMBASSY JAKA~TA;"- 1-94
6:00PM ;USISJKT62-21-3e10243~
202 622 1999;# 6
the GSP issue, IMET, Feingold. What do you see as the
prospects for those and overcoming some of those difficulties?
Thank you.
BENTSEN: This Administration does not support the Feingold
Amendment. And what we need and what we have to see, we ha~e
seen. We have seen a movement in the right direction on human
rights, on labor relations; we think more has to be done in
order for us to be able to get affirmative decisions in rega~d
to GSP.
I
Q: MY name is Bob Wick, I'm with General Motors Taiwan. I'lm
President of the Chamber in Taiwan. currently there continues
to be a lS-year-old ban on high-level visits to Taiwan. We
have noticed ·in Taiwan that you've come out to the region, ~ut
you've left us off your itinerary, even though Taiwan is the
sixth largest trading partner of the United states. Do you
have any idea or can you tell me if and when that ban will Qe
lifted so that we can get the same kind of support for o.s.
business in Taiwan that our competitors from other countries
receive from their governments?
BENTSEN: Let me assure you that it is not .•. I didn't go, Idid
not deny going to Taiwan for any political reason or any policy
reason. It was, we just didn't have time in the agenda, 1n :he
itinerary to make it to some of the other countries, wnatever
other countries are involved. As I said, I had a l6-hour
flight getting here. But we have a very crowded and full
agenda, itinerary. I don't have a definitive answer for the
other.
Well thank you very much, good to be with you this morning.
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
Indonesian Economists Association
Jakarta, Indonesia
January 17, 1993
SECRETARY BENTSEN: Thank you for your generous remarks
I am
delighted to be here. I understand we have about 200
economists that are present. That must mean we have at least
300 opinions.
But at least there is one thing I'm sure that we can agree on.
Last time I was here it was about 20 years ago. What am
incredible difference in Indonesia. The difference betveen
night and day what has taken place.
To see a country that's had a compounded, almost 7 percent
increase in its GDP. TO see it moving from, at that ti~e,
about 60 percent of the people below the poverty line. And
today, about 15 percent. Indonesia 1s the envy of much of the
world as to what you've been able to accomplish.
And it's not just Indonesia that is doing well. This entire
region 1s the fastest growing area in the world today. AS you
look at it, this area is growing three times as fast as the
rest of the world. The three countries that I'm visiting on
this trip will have approximately 10 percent of the world's
output. Everyone of those countries is growing at a rate in
excess of any of the industrialized nations.
What's happening where we see this kind of economic gro~th.
Well, we're seeing trade cooperation. Not military
confrontation. Trade and growth promotes stability and
prosperity. And they also promote security. There's a clear
linkage between the two. YOU don't have to be able to chart
supply and demand to figUte OUt the issues of economic policy
are now a central feature in international relations.
I was in Moscow last week. I looked at a situation whece you
had President Yelsin, President Clinton and President
Kravchuk. Those three going together to rid this world of ours
of over 1,700 nuclear warheads and missiles. At the same time,
for the third summit in less than a year, I was there talking
with president Ielain and the reformers about keeping the
momentum going in the reform program. We announced a number of
things that I think will help keep up that momentum.
you know" a decade ago if we had said that we had Summit
participants in a vigorous discussion, that would have really
been a diplomatic code that would have said that we were
shouting at,each other about throw-weights and missiles. Today
it means we re talking very forthrightly about critical
problems of opening up markets and investment. Or how to
restore growth amongst the industrialized world. The kinds of
issues that most effect our lives.
SENT BY:US~ AMEIBASSY JAKARTA;t7- 1-94
8:02PM :USISJKT62-21-38102431
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The bottom line is that economic policy today is foreign
policy.
to explain our approach to microeconomic policy, lQt me go
back for just a minute. president Yelsin realized, no,
President Clinton realized, that if we were to be taken very
seriously in so far as counsel to the rest of the world that we
had to get our act in order back home. That we had to
straighten out our own problems first. We have done just
that.
NOW
we've taken 500 billion dollars out of our deficit projections
over the next 5 years. There are all kinds of skeptic$ that
said are they really going to do this. In reality, we're ahead
of schedule in that regard. Our growth rate now, it's steady
and it's growing. Our unemployment is the lowest that it has
been in three years. Our economy today 1s the best performer
amongst the G-7 countries. It was because of good
macroeconomic policy that will sustain it and keep it qOing
that way. We're talking about open, competitive trade policies
and markets. An emphasis on people. The same kinds of things
that have allowed this region to strengthen its economies.
Our pursuit of those trade policies by the way has giv~n this
administration what I think is probably the most successful
year of any administration on trade since World War II - GATT,
NAFTA and the APEC leaders meeting.
Our willingness to make the tough decisions and sometimes
politically very difficult decisions and painful ones. That's
what's helped bring about the turn about in United StaFes'
qrowth in the last year. It's given us creditability in our
dealings with other nations.
The strength of that domestic progress gives us the foundation,
I think, for an ambitious international agenda. The elements
most applicable 1n the Asian and pacific region are the opening
up of markets, the expanding of trade. These are the ~lementa
most likely to support the two qoals: creating jobs and
economic stability.
Let me elaborate. The success of nations such as Indonesia,
that's absolutely critical to the United States. It's
increasingly important to our economic well being. Since the
middle of the last decade, half of our increase in income, half
of our increase in income, has become of increased ex~orts and
trade. Almost all of our industrial jobs have been created
because of exports. Those are jobs at higher wages than the
average job 1n our country. One job in every eight in the
Onited States today is directly attributable to exports.
But beyond that, promoting prosperity abroad, simultaneously I
think promotes stabili ty and seour1 ty. Dollars spent:: .on
developin,g additional trade can be even more important for
security and stability then dollars spent on a new destroyer,
Democracies don't make war on each other. Their economies are
less likely to be made worthless by hyperinflation.
Look around this region. pick out the stable nations~ Look at
their economic policies. They're moving more and more toward a
market economy. Sound stabilization economic policies. Limits
1n government price distortion. Declines in trade barriers and
exchange controls. Tax and tariff policies that favor capital
spending. In addition, there is often an emphasis on public
infrastructure development and that in turn helps private
investment.
Around-these countries, if you look at it, the infrastructure,
some of them are strained right to the limit. Whether you are
talking about telecommunications, or you're talking about the
road structures, those are things where you are going to want
to encourage more private investment coming into these
countries.
There is often an emphasis on people spending. On trying to
help them on basic education, to make them more internationally
competitive. Now compare that with the countries that have
conflict and the answer is obvious. Economic growth helps
bring about stability.
Take Indonesia for an example. If you go back three decades,
before this stronq qrowth that you've seen, we all know what
the case was. There was political turnmoil. There was
significant poverty.
Today under President Suharto's leadership, the poverty level,
substantially down. Education levels have risen
significantly. Per capita GDP has bounced back strongly.
virtually every social indicator in Indonesia is up.
Indonesia made a wise choice back in 1970 when it took the
uncoventional approach of removing controls on external capital
accounts at an early stage in the development process. That
meant that the policy makers received very sensitive market
reactions. And could help them get back on track on where
their objectives really were.
The reconstruction of Indonesia's economy, and that of other
nations in this region, has had both an economic and r I think,
a pol~t1cal dimension. Indonesia is now a regional leader,
polit~cally and economically.
President Suharto's pragmatic
and wise leadership of the non-aligned nations is highly
regarded by the Onited States of America. President Clinton is
proud that he's passing the baton of leadership of the APEC to
pres~dent Suharto. Looking forward to attending the fall
meet~n9 of APEC here in Jakarta.
What has been done here in IndoneSia has been replicated in
many of the nations of the Pacific and 1n Asia. It serveG as
r~
SENT BY:USIS AMEMBASSY JAWARTA,,.'T- 1-94
8:03PM ;USISJKT62-21-3a10243~.
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an example to other nations seeking a path out of poverty.
Indonesia, as head of the Non-Aligned Mov~ment, can build on
its own record of constructive development, on its rOle as a
world leader.
.
I want to concentrate now on the key elements of our policy in
so far as Asia is concerned. We want to encourage continued
regional cooperation and integration. We want to see open
markets. We want to reinforce the accomplishments of the
Uruguay Round. And we want to preserve and enhance ~his
region's security.
One point here: Let me make it clear that while economic
matters have risen in importance, thera is absolutely no
diminution in our commitment to the security of our allies,
here in Asia, the Pacific or in Europe.
Now as to Asia and the pacific, this administration recognizes
there's more to Asia than Japan. Too often when we talk about
Asia, it's viewed in the context of the bilateral tlade
deficits with Japan and with China. They add to 68 billion
dollars. That's two thirds of our trade deficit.
But this region is just more than two countries. We did more
than $7 billion in imports and export business with Indonesia
in 1992. Add if you add to that Thailand, we're up to $18
billion. We get 60 percent of our imports from this region.
Are we involved? Are we interested? Well of course we are
when we see that kind of commerce amongst our nations. Asia
and the Pacific buy 50 percent of our exports. Our imports
from Asia have risen by two thirds in just the past five
yeats. So you can see what that trend is. What you mean to us
and what we mean to you.
Trade clearly is a major factor in the growth not only of the
United States, but also of the Asian and the pacific nations.
It's made the difference, with increasing investment and
development, and riSing levels of income of all of our people.
But there's more to be done.
While we've seen tremendous growth over the last two decades,
incomes in this region are less than one third of what they are
in Europe. Asian nations have substantial infrastructure
needs. We anticipate that Indonesia alone over the next decade
will be spending and will be needing approximately ilOa
billion, on expenditures, on your infrastructure.
We'll be trading more and more with the Asian region and we
will become more and more interested in Jakarta's growth.
Already our exports are more responsive to growth in Asia than I
they are to changes 1n growth in Europe.
Our relationships must reflect the growing natute of our
economic ties to Asia. We have involved ourselves with the
OECD, with NATO, with the G-7 process. Those are the more
traditional organizations for industrial~zed nations. We need
to develop an architecture for our relat~ons with what might
best be described as the new industrializing nations.
Meeting those demands requi~es the devel~p~ent of reg~onal
capital markets and it requ~rea more eff~clent domestlc
financial systems. That will ensure that finance flows to
these areas and to the best projects. And that's why we're so
interested in liberalizing investment rules and the opening of
your financial markets to foreign firms. Their access to
capital and their expertise can be valuable aids to growth
throughout this region.
Oh, I know the feeling of protectionism by financial
institutions. But I can assure you that 1f you expand these
markets, you will strengthen these countries and you will see
further progress.
We also see a crucial role tor the Asian Development Bank in
meeting Asia's needs. That's what APEC is about. And that's
why I proposed bringing the finance ministers into a discussion
on regional economic issues.
I want to let you know that we have invited APEC finance
ministers to meet informally in Hawaii on March 18th and 19th.
I'm looking forward to it as a way for us to begin talking with
one another about faCing the challenges that lie ahead of us,
such as development, opening markets, making investments, and
sustaining growth. Seeing that not just the big companies
come, but try to encourage some of the medium size companies to
participate, some of the entrepreneurs to come.
Let me give you an example of what's happening at home. You
read the headlines in the business section and it says 10,000
laid off by GM, 20,000 laid off by this company, 15,000 laid
oft by another company. And you say we are really headed down
the tube, we're in real trouble.
What the headlines don't say, is that this little company hired
5 more welders. This one took 6 more computer workers. This
took 12 more case workers and this took a dozen more file
clerks. What you've seen durin9 that period of the headlines
1n the business section talking about people laid off, we've
actually seen more than 2 million new jobs, net new jobs,
created in the United States of America. More jobs than in the
previous four years of our country. Those are not just
hamburger flipping jObs. A lot of those are good paying jobs
We've been able to adjust the infrastructure and make that ki;d
of a net gain.
What we want to do is work together in making connections
amongst ourselves. Building up these relationships. I look at
it this way.
It's best to build a relationship and to start
cooperating when you don't have critical problems. When our
economies are doing well. The Asian economies are doing well.
SENT BY:USI5 AMEMBASSY
~~~RTA:'7-
1-94
6:04PM
;USISJKT62-21-36'0243~
202 622 1999;'14
We don't have any crisis to deal with. When I pick up the
phone I want to be able to see a face on the other end of it.
To have that kind of a personal relationship. That's what
we're seeking.
During my discussions here and in Thailand, and in China, I
will be listening to my counterparts for their views on how
with these informal meeting we can share ideas. I want to make
a cooperative venture to make it that. I want to stress our
common interest, not in any country's bilateral agenda. Our
common interest is to sustain non-inflationary growth amongst
all of our people.
Now if you recall at the November meeting of the Leaders, it
was agreed that we should address the challenges of ensuring
that non-inflationary growth, of financing investment and
infrastructure development, and promoting capital market
development. In addition, they suggested we ought to talk
about the need to promote foreign investment, mObilize domestic
savings through developing financial markets, and examine the
issues of the environment and of poverty.
I must say I got an education by President Suharto on some of
the things that you're doing in the rain forest. Some of the
things that you're trying to correct and seeing that you
protect that environment. I never listened to so many
numbers. I finally decided they had a computer up there being
able to bring out as many details as you did in that program.
And that's encouraging_
We have agenda in the region other than economic. There is the
security dimension, of cOut$e. But out foreign poliey has
always been shaped by our values and ideals, in addition to our
economic and security interests. Americans, and their elected
representatives, won't put aside their hopes and ideals just to
make a buck.
President Clinton came to office with a stron9 commitment to
promoting democracy and human rights, to putting people first.
I know that some read this commitment with apprehension. We
are not trying to argue that our way is the only way, just that
democracy and marxet economies produce what people want. I
want to encourage changea, such as more openness, respect for
internationally recognized human rights, economic reform and
liberalization. They are the infrastructure of economic
success and political stability.
Let me close by reminding you that president Clinton's first
trip out of the country after becoming President was to this
region. And he made it clear that we are working for a New
Pacific Community. The United states intends to be actively
engaged here as a partner, in a way that encourages economic
growth, and political stability.
Thank you very much. I would be delighted to take a few
questions if you like. Looks like this crowd has all the
answers.
Thank you excellency. I think, having heard from you about
your statement is really encouraging us about our two countries
relations. I think a lot has to be done, economy, and what}
foresee that we still have a few things to settle. The first
thing that I foresee is this is no psychology for us, there is
the GSP problems that we are facing with united states. Even
the number is quite small according to us, but the psych?logy
is fairly important things about our, for our two countr~es
relations. Especially, I mean, for our business community
here.
Q:
1 l1~e to ask what your government is trying to do with GS2
because this is something that we have a deadline of February,
next month. Because this is very important for us, that is one
thing.
The second thing that I'd like to raise is after we deregulate
our financial ....... .
BENTSEN: NOW, let me interrupt just a minute. Illl take a two
part question, but please no six part questions.
The second part is you know you see that we have to
deregulate our financial sectors and we know that capital
market is playing a very important role in the future. But I
donlt see any interest of the security businesa of the united
States coming here. Where a lot of companies from Europe and
Japan is here. What are the reasons because that also happened
in the past, that we have big companies in oil and gas where
the American business center here, but not in manufacturing.
How do you foresee, because we know that American manufacturing
company is more and more competitive. And that is something
that we have to work together in helping this manufacturing
sector also move in good size. I have some experience, because
we have some investment there in manufacturing ana we know how
competitive we can be together. Ana that is I didn't know what
is the answer, what is the government role of the United states
to encourage the private sectors?
Also to look as important
as what I have heara from your statements today.
Q:
What can we do together and what kina of role your government
can do to encourage them to foresee the futures of our two
countries relations, thank you.
t:u:a.X';'l:il..
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v"'''r
obviously, in human rights. We are interested in
worker relations and we are seeing progress taking place in
Indo~esia o~ that.
We would hope for more in that regard. And
that s what s being evalued by the committee as the come to the
February 15th ~ate. We are lOOking forward to you submission
on January 20 In that regard.
1ntQrQ~tea,
SENT BY:US~AMEMBA55Y JAKARTAi~7- 1-94
6:06PM ;USISJKT62-21-3610243~
202 622 1999;#16
We understand too, that when we talk about workers' rights,
these are the kinds of things that Indonesia itself 1s
interested in. Itts not just from the outside. You know
that's what you need and you realize that. And trying to build
up this economy and the relationship of its people.
So that's one that we agree on as far as trying to bring
about. And we both want to see further progress in that
reqard, I'm sure.
In so far as the next one, when you talk about investments
here. Part of it is needing a high profile for Indonesia in
the United states. A better understanding of what is happening
here. That's one of the reasons I'm here. That's one of the
reasons you've seen two Congressional delegations within this
month. For further emphaSis, a further focus insofar as this
part of the world, I think that will bring further interest by
American business. NOW when you qet to the very large
international companies who have relationships and investments
around the world, they are knowledgeable, but when you qet to
the middle size companies, the entrepreneurial type, the ones
I was referring to earlier, now thatts what I want to see more,
of. Hopefully, we can help in that regard. Thank you very
much.
/5
PRESS CONFEREtCE WITH TREASU"RY sa:RETARY LLOYD BENTSEN
Kintamani Restaurant - Hotel Borobudur International
Jakarta, Indonesia
January 17, 1994
2:00 p.m. local time
(Unofficial transcript of the Secretary's opening statement and
questions and answers:)
8ENrSEN: It certainly won I t be a long statement because you've
heard my speech and I won't be repeating that or try to avoid
it. I had a very productive meeting with President soeharto
this ITCrning. We talked a.bout a further developing
relationship between our countries, about how President Clinton
was so pleased to see the leadership passed on for the ~rr:.
countries to president soeharto as the Chairman for this year.
we discussed again the Finance Ministers Maetinq to be held on
March the 18th and the 19th in Hawaii and qetting his
suggestions and his counsel and advice as to what that agenda
should be, what we can do in furtherinq trade, opening up
markets anongst our countries. With that, let me open it up to
you folks and let you ask what questions you might have in mind.
can we take it for granted that President Clinton will come
here in November, regardless of any questions over human rights
or labor rights here in Indonesia?
0:
BENI'SEN: Well, I would anticipate president Clinton is gOing
to be here. I'm optimistic insofar as progress being nade on
human rights and workers' relationships. I discussed that
during the speech. Obviously, it IS a matter of concern to us
and deep interest that progress be made. It is being made.
And '-.11! eXpeCt l'l'.:'Jtt! of if! eo be dene. The question of GSP has
not been resolved. That conmittee will be meeting on February
15 to make that decision. we're looking forward to ~~e
submission of the report from Indonesia on January the 20th.
we obviously have not seen that at this feint.
I have two questions. One is that I heard that in the
meeting With President SOeharto you requested mere openness of
foreign stock shares in the joint venture law of Indonesia.
can I get a comment on that? What is your intention? And the
second question 1s ~w there is a very big project involving
Indonesia and the Onited States about the development of
natural gas in Natuna Island. What is your opinion? Did you
discuss this matter with the Indonesian side?
Q:
BENTSEN: In meeting with Minister Mohammed and with President
Soeharto, Ioie discussed the situation of opening up financial
markets and talking about national treatment, trying to
enc:curage that. we think that that'll bring mere investment
here, rote finane 1n9 here. '!'hat's important for this country
in developing its infrastructure. As far as the investment
laws, you I ve made some advances. '!'lere are more things that
can be oone on the questions of dive5titure and that type of
1&
thinq. On the question to do with the development of other
islands, outer islands, is that what you asked? (clarification
from aside) •
I'm optimistic that in that situation where we have some very
competitive bids that that's going to be one that the American
Lnvestment and interest will be - we'll win that one.
0:
Now that we have the GATT agreement -
Where are yoU? (Laughter)
voice from on high coming in here.
BENrSEN:
I thought there was a
NOw that the world has concluded the
it still relevant to have APEC?
0:
GATr
negotiations, is
AbsOlutely!'X)t. NO, I don't think so at all. I
think that What APS:: can do insofar as multilateral developnent
1n this area is the exchange of ideas are not in any rigid
coordinated approach, but a contribution of what's ~rJdnq for
one country and not working for another and how those things
can be improved. Insofar as GATr, that is not the end of trade
negotiations. It will continue. It is an ongoing process.
You have reached a plateau and then you Will further negotiate
azronqst all of the nations of GATI'. That will continue to
proceed.
BENrSEN:
0: I just wonder whether you also point this out in your
statement today after your meeting with the President of
Indonesia in Which you said president Clinton came to office
with a atrong oommitment to promoting human rights and whether
this is conditional, whether you have conditions for u.s.
camnitment to Indonesia.
BENrSEN: well, in discussing it with Minister MOhammed and
with president Soeharto, once aqa1n we emphasized president
Clinton's interest in human rights, our government's interest
in human rights, and labor relations. There'S no question
about that Indonesia itself wanta to make headway 1n those
areas and what they're doing. They're making substantial
progress. we hope therels more and we think thera should be
more. You understand insofar as ~rkers' rights, some of those
thi1l9s being done are thinc;s that you feel is important for the
relationship of your ~rkers within this country. SO it is a
fulfillment of an objective that ..,,' re interested in and that
you're interested in.
0: Mr. secretary, I have a philosophical question from your
speech. Secretary Christopher recently gave a speech in which
he said "all diplomacy 1s economics-. You just gave a st:eech
in which you emphasized that basically all economics today is
foreign policy. I'm interested in this overlap that 1s quite
apparent between the secretary of state these days and the
Secretary of the Treasury. How do you see your jobs? I mean
11-
they're obviously different. I don't mean this facetiously.
But with this overlap, how do you distinguish between the t~1
would the real secretary of State or the real secretary of the
T:'easury, please stand up? HOW have they have converged and
how do you separate them?
BENTSEN:
I think 'Nhat you see is something that's
complementary, where they play off eac.~ other and its
compatible objective that w& are trying to bring abOut. SO
that is encouraging as far as I am concerr.ed. Let me give you
another example, insofar as the trade negotiations, the USTR,
econanic. I stronqly support the USTR, but that doesn't keep
us from helping and trying to assist in any we could on NAFTA,
or being very much a part of the GATT negotiations. Mickey
Kantor remained in constant coJ1U'l'llnication with me. We're in
good carmunications, secretary O1ristopher and I are. I think
that, hopefully, we're helpful to each other.
0: You mentioned that you see that there is an
the Indonesian economy. How do you measure the
improvement and what yardstick are you using in
value? My understanding is the value cannot be
value of this improvement. How do you quantify
concern to human rights and so on1
BENTSEN:
improvement in
value of
measuring the
quantified, the
this? With
I think that they're compatible, development of human
rights and labor relations.
You've seen associations that have
That kind of
progress is being mad.. Insofar as human rights, I think also
as you ~evelop your economy and you develop mre middle-inc:cme
folles, that human rights are very eanpatible with that and
further derrl)Crat.ization with that. 'l1'l08. things complement
each other.
been created apart from the major labor union.
0: Sir, can you tell me whether the issue of the rair Trade in
Financial services Act with reference to Indonesia has been
discussed here and whether Indonesia has any cause for concern
in this rec;ard?
we did not ~iscuss the Financial services Act in
itself. We did disc:uaa further opening up of financial
services and continuing negotiations on that. !hat type of
thing, sort ot thing, w.'ll be exchanging ideas on in the
Finance Ministers Meetings.
BENrSEN:
TWO days ago Malaysia's financial minister, Dato Anwar
Ibrahim, was here and he said that Malaysia ~as making up its
mind about ArEX: since Soeharto is gOing to be the chairman of
~~e APEX: summit meeting here in Jakarta. NOW, Iid like to know
about the American stance on EAF.C'? Thank you.
Q:
BENTSEN:
0:
The Amer iean stance on Malaysia _
on EAEX:, the East Asia Economic caucus.
/8
BENTSEN: We ~uld hope that all these countries ~uld attend.
I think it's important to them. I think it's helpful to them.
I think abstention will not help them in that process. I think
there t s much to be learned and gained by this kind of an
exchange and interchange.
Q: I just want to make some clarification of what you said
just now. Did you say that the Inoonesian government told you
that apart from the major labor union, the official one, the
government will allow one rore or Jtl)re than one ncre, another
labor union? '!'hank you.
BENTSEN:
It's my understanding that some associations have
been made of laborers. I do not know beyond that detail.
0:
can
you tell me about the APEC Finance Ministers meeting,
when and where and what they will talk aboUt?
BENTSEN: The Finance Ministers Meetings will start on April
18th in Hawaii. It'll start with a dinner that I will host for
those in attendance. I would anticipate we'd have a full day
on saturday. I'll host another luncheon on saturday and
hopefully, we would have completed our work by Saturday night.
I would think we ~uld not have any kind of rigid, highly
structured meeting. I want it to be informal. I don't want to
have te listen te a whole bunch of prepared speeches. I want
an exchanqe of ideas. I 91 ve enough prepared speeches myself.
How can 'lou say that wa have improved in hunan ri9hts
problem because there was a very big strike in the labor
movement? And then we have the handicap to apply, the minimum
wage standard, that was constructed by the government.
Q:
BENTSEN: I was given the report on what the commanding general
had said insofar as the actions of the army, involving labor
and strikes. I was told a set of regulations had been drafted
1n that reqard. 'lhose are steps in the right direction. What
we're leeking toward 1s the carrying out and the further
commitment of those thinqa that TNe understand have happened
thus far. Thank you very much.
(end transcript)
/~
NEWS
TREASURY
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
Transcripts
of
Secretary Bentsen's
Public Speaking Engagements
Bangkok, Thailand
January 18, 1994
Subject:
Transcript of Remarks by Treasury Secretary Lloyd
Bentsen at a luncheon nosted by the Thai Bankers'
Association, Federation of Thai Industrias and Board of
Trade, Banqkok, Thailand, January 18, 1994
Begin transcript.
Mr. Chairman, thank you very much for that most generous
introduction.
This is my fourth visit to Bangkok. Each time I come away
impressed at how much this city has qrown, how much you've
improved the standard ot living ot your people, how much you've
increased your productivity. I muse tall you that that traffic,
though, cominq from the airport, reminds me a little bit of the
qridlock in Washington bet ore President Clinton was elected.
But I am impressed with the vibrancy.of this economy. I look at
the power ot your economy and it is formidable. Living standards
are risinq so rap'idly. The growth rate in Thailand tor the past
few years haa led the entire region. And that's a reqion of
growth. So that's a remarkable achievement that has taken placQ.
It has translated into benetits tor Thai citizens. Education
levels are coming up. Averaqa income more than doubled over the
last eight years. That's quite a record. They tell me that the
averaqe income in Bangkok is approachinq $5,000.
Thailand has coma so tar and 80 fast because its leaders have
pursued policies that are conducive to qrowth, with fairly stable
prices. It'S amazing what good economic policy can do. My
economists keep telling me that.
Thailand is lookinq to the future. I had a ohance this morning
to visit the steck exchange. That's quite an operation. I'm not
above braqqinq about it .- I want to tell you that we're
delighted that we helped this stock exchange computer1ze~ and
that our Securities and Exchanqe Commission cooperated w~th you
in the creation of a similar cody here.
I think that the mOVQ to computerized tradinq demonstrates why
Bangkok is such a draw tor the financial industry. Now I know a
little bit about this business. I spent 16 year. in the private
sector, very d.eply involved in this sector ot our economy.
I want to talk to you today about that aspect of our economy. In
particular, I want to discuss how the United states expects to
deal with the unfinished financial services aqanda insofar as the
Uruguay Round (is concerned).
But first, I want to talk briefly about how and why the Clinton
Administration has put such an emphasis on global economic
associations. The international economy is central to our
economic prospects and to our domestic economy.
You can see from the president'. recent summit in Moscow,
economic policy is an increasinqly important part ot foreign
policy.
our international economic agenda has several items on it.
But tha ones most applicable to thia reqion -- promotinq growth,
opening markets, expanding trade -- these are the elements that
most lixely do best in supporting the two goals of our foreign
policy, and that's creating jobs for our citizens through trade,
and supportinq stability, harmony and aemocracy throughout the
world.
NOW,
I want to detail briefly how we set the stage for our
international economic agenda. We d1d it by attackinq our own
problems hera at home -- back in the United States -- taking them
on tirst. I can recall going to meetings in the past where
they'd say, you know, "Oon't tell us what to do about our
economies 'til you qet your own house in order." We took on the
deticit and the budget with a commitment to a reduction over the
next tive years ot $SOO billion. That releases an enormous
amount of money tor capital mark.t.. And it had an iDpact tar
outside ot our borders. It used to be that we were at a
competitive disadvantage on interest rates. We saw interest
rates tor some ot our competitors at one percent, and then out
there at some point they'd have some warrants with a conversion
factor on a stock that was 100 to 1 times earninqs. We saw the
competition trom the Bundesbank and the interest rates there.
But now we have the lowest intere8t rates our country has seen in
two decades. And we see inflation under control.
In the past year alone we've created over two million jobs. Oh,
we raaa in the Businesa Section, "IBM has laid ott 10,000";
"General Motors has laid ott 20,000." But what doea not ma.ka the
headlines is the outsourcinq that haa taken place to s~all
business. What doesn't make the headlines is this little company
added !ive welders and this one added six computer workers and
this one added lS tile clerks, that type of thing. We're no
longer at a competitive disadvantage on those. Not anymore .
.
What we're seeing today is an economy that is qrowinq again and
this year thinqs look good tor steady growth and low inflation.
We're outperforming the economies of the other G-7 countries.
And we did it with sound macroeconomic poliCies. And what we're
s •• inq today, I think, is a sustaininq of that growth with open,
competitive trade policies an4 markets. Let me give you an
exa~ple ot that -- what happened to our automobile industry.
To
see foreign competitors coming in and producinq a better car.
Producing it at a lower cost. Not true anymore. Now the quality
of our automobiles is world competitive. And the cost is world
competitive. Ana you see, we're restoring our market share in
those thinqs. Progress is made DY competing, not retreating.
Asia ana the Pacific are central to our economic policy. Let me
touch on two areas with respect to the ragion before I discuss
the area ot financial services.
On the question of Vietnam, the President has taken two steps to
recoqnize the proqresa we have made toward meetinq our objective
'of the fullest possible account1nq on our MIAs ana our POWs. The
first step was the decision in September to restore Vietnam's
access to international financial inatitutions. The second was
to relax the embarqo to allow u.s. firms to bid on projects that
would be fund.~ by thoS8 institutions.
I want to say that I am encouraqed by the statements of Senator
Kerry and Johnston. They have recommended that we move forward
with ending the embargo, based on proqress we have seen thus far.
As has been the casa with other issues, a strateqy of engagement
with Vietnam may be the most effective way to promote our goal of
aceountinq for our POWs and MIAs.
Now the second area that I want to mention is the Asia Pacific
Economic Cooperation orqanization -- APEC. I tell you, we have
so many acronyms in Washington. I'm qoinq to sae if we can't get
a dictionary published on just acronyms.
One or the reasons for my trip to this reqion is to discuss APEC.
I announced yesterday that I will be hostinq in Hawaii on March
the 18th an4 19th a maetlnq with my counterparts, financial
ministers throuqhout this area, and wa'll be discussinq with them
what they think ought to be on that agenda, what we can do for
economic cooperation, tor growth throughout this area with a
minimum ot inflation. A common interest. I believe we should
also be discussinq the financinq ot investment ana infrastructure
investment, and promoting capital market development for all of
our nations.
Question: Mr. Secretary I you talked earlier in your speech about
the importance of exports for the U.S. economy to revive it and
certainly tor Thailand exports have been the drivinq force behind
the economy.
In thailand recently they have talked about some
changes in the value of the baht which have all the central
bankers sayinq that that is ~bsurd. But I curious about the
value of the U.S. dollar versus the Japanese yen in terms of
stimulating exports because Japan is certainly an important
tradinq partner to Thailand as well. So are you happy with the
value ot ehe dollar Versus the yen at the present. Thank You.
Answer: Well, I've bean Secretary of the Treasury lonq enough
not to answer a question like that. If I did somabo~y would be
running tor the wire service. I have no comment on the currency
exchange. Like someone Was askinq the other day to comment on
what was qoin9 to happen on lonq-term interest rates in the
United states and I said I can't comment on that one either but I
can tell you this, that I refinanced the mortqage on my home and
I did not take a thirty-year mortqaqe.
Question: Peter Mytri Unqphakorn from the Bangkok Post. Could
you explain a little bit more about what your vision for the APEC
finance ministers meeting is. Some people suggested that it
miqht be like G-7 finance ministers. Is that possible?
Answer: I don't look at it as being that tightly constructed.
What I want to see, in hosting the finance ministers, is a rather
relaxed agenda. I don't want to listen to too many prepare~
speeches. I've given teo many ot those myself. But I want a
tree exchange of ideas: what works in this part, what doesn't
work over hera and how we can develop more trade among ourselves.
Let me give you an example of that ons. There are other
countries of the world that have a higher per capita income than
we do. aut we have the highest standard of living, of any major
industrial country in the world. And that is because of
competition. And that is because of the prices to our consumers
and the quality ot products that result there from. But I think
we all benefit by increased trade. Lat me give you another
example. The country ot Columbia, and Venezuela, I don't
remember the ax act number or flights in all, but it was somethinq
like three or four flights a week between the two capitals. And
now they brought together an improvement in the trade
relationship and a lowering of the tariffs between the two
countries and ehey'ra having several tliqhts a day between those
two capitals. That kina or an exchange, that's happening around
the,world today, and I think we ouqht to promote more of that.
It lmproves the standard of living of the people on all sides
and I think it adds to stability of governments. But another'
question. Yes sir?
Question: Thank you. Mark T1mm, Knight-Ridder Financial News.
Mr. Bentsen, I'm wondering if you can givQ us any insiqhts on hoW
th. U.S.-Japanese trade frameworx talks will have an impact on
this ragion and perhaps giVe us your thoughts on how well those
talks ara progressing.
Now thae, of course, brings me to tinancial services. As many
countries in this raqion have demonstrated, a well-developed,
efficient financial servicss sector is critical to economic
proqress. Let me otfer a parallel to illustrate why we believe
financial services makes a very major contribution to economic
growth. I think that sector is a little bit like the nervous
system. It sends signals to the industrial muscle as to where
those resources ought to qo, where they'll have the most
effective 9rowtn, the highest return. The financial services
sector in the United states is mora than six percent of our GOP,
a third of a trillion dollars. That's more than a thousand
dollars for avery citizen in the United states, and our financial
services is in a substantial surplus.
The service sector as a whole is a major element of our economy.
Two thirds of our output is in services. Service exports are a
major ccunterbalanca to our imports or manufactured products.
Let me qive you an example. In 1992, we had a serv1ces surplus
ot $6l billion and a merchandise trade deficit ot $96 ~illion.
We covered more than tvo thirds of our merchandise trade deficit
with our services surplus. Our services are now a driVing force
in our economy. since the middle of the last decade, half the
increase in income has been due to those exports. One job in
every eiqht in the United States is attributable to exports. And
those jobs pay substantially hiqher waqes and salaries than the
other jobs in our economy.
Now look at a tew tigures to see the impact ot the tinancial
services here in Bangkok, seventh largest element in the Thai
economy and qrowinq rapidly. The last year for which I saw
fiqures had commercial bank assets almost at Thailand's GOP
level.
Bank profits are risinq, partly because of the financial
deraqulation measures un4ertaken by the Government of Thailand in
recent years. And that includes liDeralizinq interest rate
controls, relaxinq toraiqn exchanqe controls an4 reducinq
controls on the asset management ot banks.
Hera in Thailand the participation in the economy of
international financial firma has meant an influx of capital, and
that capital has helped build factories and create jobs.
What you've also saen is more equity capital cominq in. You're
not seeinq a repetition ot what happened in Latin America years
aqo, with such a reliance on debt as took place at that time.
And with the support of the Central Bank, Thai Danks are moving
into the international market -- I was sittihq here talkinq to my
eolleaques ana some of them were tellinq·me about what they're
beqinninq to do through the United States, the services there.
They're aiscoverinq that an efficient and open financial services
industry helps integrate both the regional and the qlobal
economy. Now trom our perspective, that contributes to our goal
to sustain 9rowth, which in turn both creates jobs and enhances
stability.
Th. united States has one of the most open tinancial markets in
the world. We believe that qreater market access in financial
services is absolutely critical to assisting in creatinq economic
growth tor all nations. One of the Uruquay Round's great
benefits was to take an overall qlobal approach to the
liberalization of trade in servicas. I want to recognize the
fact that Thailand made a very effective contribution in that
Oruquay Round and we're appreciative of that.
Those ot you who followed the negotiations know what a hiqh
priority the United states placed on the area of services in the
tinancial field. But we were left with an unfinished agenda.
And trankly I'm disappointed we did not saa more countries
willing to liberaliza.
The agreement wa reached last month in Geneva allows countries to
review their commitments in ~he six months after this agreement
enters into force. Now durinq that period, our exemption from
the Most-Favorad-Nation principle -- that is, the right to
discriminate between countries and among countries -- will be
suspended in this sector.
We have a two-year window to neqotiate an agreement in financial
services which can be incorporated in GATT.
I want to say today that the United states is eaqer to set up a
network ot bilateral tinancial policy talks with our major
trading partners in this area.
Thera are three principles that are goinq to quiaa our
neqotiations.
First, we want to open up markets, not close ours. We will look
tor aqree~ents that offer reasonable market access and national
traatment. We are prepared to 9uarantee full market access and
national treatment in the future to countries that qive our firms
satisfactory access ana national treatment.
Second, we will neqotiata constructively. We won't take any step
durin; those negotiations and discussions that harms the existinq
operation of firma already in our markets. And beyond that, we
will not unreasonably refuse access to nations that aren't
already 1n United states markets.
And thira, our objeotive remains a multilateral MFN-based
agreement that treats all nation. alike. Howev~r, we cannot
accept a situation in which other nations retain the right to
discriminate against our firms while they are permitted to expand
into our market.
So we are willinq to work with nations which want to liberalize.
We will approach our negotiations in a reasonable and a pragmatic
manner. W. understand thae many nations consider their financial
system to be an integral part of their development strategy, and
that it must remain largely in domestic hands. We understand
that there can be legitimate concerns about Qvar-banking in small
Qconomies. We accept that greater access by foreign firms should
not unduly disrupt domestic markets.
We live in the real world. We recognize that others have
concerns about our views. We are prepared to accommodate
leqitimata concerns and financial services neqotiations, just as
we did in the North American Frae Trade Agreement -- in NAFTA.
LiDeralization is a process. It doasn't happen just by tllppinq
a switch. We are prepared to consider transitional arranqements
that provide breathinq room for domestic firms to let them adjust
to qreater competition.
I strongly believe that financial market integration and
liberalization is in our mutual interest. The increase in
capital flows in the 1960s, when capital began flowing in
significant amounts to developing nations, has been a major
contributor to the growth rates we" have seen in East Asia.
Opening markets and lowering barriers is a crucial element in
sustained growth rates.
I can't help but recall that after World War II, when the
economiss of many countries were devaatated and we thought we had
to do what we could to increase trade to help them restore their
economies and create jobs, we substantially lowered the tariffs
in the United States. It was a bit like having a golf match
where you have someone who is just learning how to play golf and
you give him a big handicap. The problem we have in the United
States is that soma ot these folks have become awfully qood
qolfers in the meantime, and we haven't done what we should do
and lower that handicap.
With that, let me say that I was lookinq at some Thai proverbs
the other d~y. I touna one that I thought was perfectly suited
for cloainq a speech. And I won't try to say it in Thai, becauae
I don't want to do that to your beautiful languaqe.
But the
proverb goes somethinq like this: "Speech is silver; silence is
golden."
Thank you vary much.
I'd like to open it up to questions. I might have a few
qroundrules if I COUld. Whomsoever wants to ask a question, it
you'd take a mike and speak in a loud, clear voice, give us your
name and your association it you like, and please, no six-part
questions. And tor the moment, I'm the only one that's supposed
to be making a speech.
Facilitator: Yes, we do have all the microphones on the floor.
Would anyone like to ask questions? Yes, please?
Answer: Once again, I ~hink that improvement in trade spills
over for allot us to some degree. We have not made significant,
satisfactory progress yet in the framework agreements with Japan.
Much remains to be done. That's more of an answer than you
expected, wasn't it? Any other question?
Question: My nama is Owart Phromratanaponqse trom TV Channel 3
and radio program. I have to organize radio proqram about stock
market almost every day. I would just like your comment on stock
markets in Asia, especially this time why they plunqa so much.
(Laughter)
Answer:
Thank you very much, it's qreat to be here.
(Laughter and applause)
End transcript.
Subject:
T~ansc~ipt ot the on-the-recor~ press conrer~nce by
Treasury Secretary Lloyd Bentsen at the Regent
Ketal, Bang~ok, Thailand, January lS, 1994 (1700
hrs.)
Following 1s text ot Secretary Sentsen/s press conterence, hosted
correspondents Club of Thailand.
by Forei~l
begin transcript.
Lee Miller, Moderator (from Foreign Correspondents Club of
Thailand):
Good atternoon lad1ea and gentlemen, welcome to another ot our
featured press contarences with d1qnitar1es trom around the world
for the foreiqn correspondents club ot Thailand. Today we have
the secra~ary of the Treasury of tho united states o( America,
Mr. Lloyd Bentsen. Mr. Bentsen has been Secratary of the
T~aasury tor about a year now.
Prior to that he was a nnt~~d
states Senator trom Texas for more than twenty years. He became
chairm4n ot the 3.nata Finance committee in 1987. In 198a ho w~s
the OQmoeratio Party nominee for Vice-PreBi~ent an~ he is tamou&
durinq that campaign tor tallinq then Vioo-rreaident Oan Quayle
that he was no J4C~ Xennedy. Mr. Sentsen reoaived a law daqree
from the Univaraity ot Texas School ot Law and I think we all
have his bioqraphy here. Wh~t he is alao noteworthy for as a
qovernment otticial is that he ha~ a lonq and outstand1nq oareer
in the private soot or whioh made him if not the obvious ChOice,
certainly a tine choice tor Secretary ot the Treasury which is
1
why he was confirmed so easily as I recall. I thinx Mr. Bentsen
has an opening address or some opening remarks and then we will
turn the floor over to some questions.
secretary Bentsen:
that comment.
Thank you very much.
Wish I had copyrighted
Well I am qlad to be here again and it is always amazing ~nd
impressive to see how Thailand has qrown from the last trlp. We
have had a relatively short stay hera but a most productive time.
In tha meeting with the Prime Minister and with the Finance .
Minister and the Governor otthe Central Bank, we covered qu~te a
number of points.
With the Prima Ministar I was delighted to have him tell me that
at the meeting in Morocco when they do 80me of the wrap-up of
those things that are not quite finished on the Uruguay Round,
that the government ot Thailand will increase and improve its
otter on financial services. That is important and that is
helpful because this is one of the major financial areas of this
part ot the world. The United states has a major stake in the
prosperity and continued growth of Thailand; as they in turn,
have in our country. We turther agreed that we would continue
negotiations in the context of GATT on financial services. In
addition to that we agreed that we would expedite the
negotiations on the tax treaty that has been underway for almost
twenty years. It is certainly time that we rev it up (as heard),
so they will ba coming to Washington on ?ebruary the seventh to
hopefully bring that to a successful conclusion which in turn
will help both countries settle some ot the differences in the
way taxes are treated here and in our country and be a further
benefit to American business operating here. And finally we have
aqreed that it is important that we do some additional things in
the way of striking deals that will help both countries in this
fastest growing part of the world. I would state that in
addition to that and a tinal point that the Treasury Department
has had representation in the Tokyo ott ice for quite some time
but I am qoinq homa to look at my budqet and see it we can't do
some additional representation of Treasury in this part ot the
World. With that I would like to opan up to any questions you
might have.
The one qround rule hara is to please state your name and your
affiliation. So it wa have any questions? Please use the
microphone so everyone can hear you.
Tom Freidman (The New York Times): Mr. Secretary during your
stay in Indonesia and here you have referred to the tact that we
are very close on establi~hing an end of the embargo with
Vietnam. And I wondered if you could take us through, basically,
elaborate on that a little bit. Where are we exactly? What will
need to be done from now until that point when we get there? How
ia this thing developing?
2
Secretary Bentsen: Well, I think it is pro~essinq well. What we
have aean, wa've seen the President of the United states take the
additional step of helping Vietnam qualify for loans in the
international financial institutions and then take the second
step that says that American business can qet in there and
compete for loans that are made to Vietnam coming out of those
institutions. Since that time we have had delegations going to
Vietnam with encouraging reports back about the cooperation of
the government and the assistance they have given in the search
for MIAs and pows so the proqress is there and I am optimistic
that W8 will finally qat that behind us.
Question (unidentified reporter): If I may ask a question and it
is sort of a tollow-up to something you said at lunch today. In
general -- not to be specific -- are you generally happy with
where the currency valuas around tha world are? In general.
Secretary Bantsen: I really learned not to comment on that.
Thank you. Yes, Clay?
Clay Chandler (The Washington Post): I wonder if you can tell us
a little bit more about what you think still has to happen bet ore
there can be a break-through or announcement on the Vietnam
issue? Where do you see sort ot the major remaining obstacles to
be? Could you elaborate a little on that?
Secretary Bentsen: I have not been that involved in it. All I
know is that I'm told that we are makinq some proqress and that
it is quite encouraqing. I'm optimistic as far as qettinq it
lifted.
Loh Hui Yin (Business Times, Singapore): Can you tell us more
about the Treasury's plans for this part ot the world? Any
ottice you are planninq to open?
Secretary Bentsen: Not till I go back and look at my budget and
decide what I can do in that regard. But I do think it is
important that wa add Treasury representation, additional
representation to that we already have in Tokyo. And more in
this part ot the World. But I have not made a decision on that.
Thanonq Khantonq (The Nation): Mr. Secretary, durin; your talks
with the Prime Ministar did you raise any specific points about
financial liberalization that you would like Thailand to under
taka.
Secretary Bentsen: Well I discussed with him the Chrysler
situation actually, he spoke up on that, the finance minister
did I believe in detail to say that question concerning the tax
considerations on Chrysler had been resolved satisfactorily.
John Schurb (freelance journalist): 00 you have any particular
expectations for the upcoming APEC meeting with the finance
ministers of the reqion?
J
secretary Bentsen: That was one ot the thinqs I was doinq here,
was talking to the Prima Minister and tha Finance Minister as to
what they thouqht should be on the aqenda and in the way ot what
further cooperation should be accomplished in trying to bring
about mutual growth and trying to keep intlation down, what works
in one country and what doesn't work in another. And I did the
same thing in Indonesia in getting their ideas as to what should
be on the agenda. I want it to be an intormal meeting. I don't
want it to be highly structured. And, with all due deference to
the prass, I hope we don't aven have a formal communique. The
problem with a formal oommunique is that you spend halt the time
and most of the night tryinq to detine Cas heard) what this one
word means or that one. I want it to ba something where you qet
a good exchange ot ideas. And I don't look on it as something
where we try to develop soma coordinated ettort insofar as what's
dona by allot the •• countries actinq toqether, because there is
a great deal of variance in tha economies ot each ot these
countries.
Mark Timm (Kniqht Ridder) Mr. Secretary, I know that there has
been some talk about the U.S. government maybe bringing up some
short term interest rates. In December the retail index actually
went down, so intlation seems to be certainly under control. In
that context, what do you think about interest ratas at this
stage?
secretary Bentsen: Let me tell you what the underlyinq economic
things are and that really should have substantial influence on
tha.e ratas. Wa are looking at inflation baing wall contained.
We're lookinq at labor unit costs (ramaininq) quite constant.
We're looking at a cushion of labor still available. We're
looking at an increase in productivity and a substantial
investment in equipment on the part at business. Those things
keep, I think, at the present time, ara not puttinq any pressure
on interest rates. And that's about as close as you are going to
qet me to say anythinq about them.
Reporter: Thank you.
Mark Memmott CUSA Today): This morninq you met with bankers from
around Asia. I wonder it you could tall us what issu.. they
brought to your attention and what, it any, message you brought
to them?
secretary Bentsen:
What you are .eeing all around the world is a
In
need
also
important that they not do it just by borrowing, but that they
get more equity monay in here. And, in turn, American Duainess
and toreign business that wants to come 1n here has b.en
utilizinq otten major financial institutions back in their own
country. And havinq some of that available to them will
encourage ~or. capital coming into this country, will help it
co~cern about toreign banks cominq in and what they mean.
th~s instance, I was telling them that they are going to
a~d1tional capital.
It is important to them. And it is
4
grow, will bring about more trade, and will strengthen their
financial systam; that they will benefit by it. I think that's
one ot the reasons that you are seeing the Prime Minister telling
me that in Morocco -- and the Finance Minister tellinq me -- that
they are going to strengthen their (garbled) financial services.
That's encouraging •.
Bill Murray (AP Dow Jones): Can you elaborate on that, did he
qive you any indication how they are going to strenqthen their
otter?
Secretary Bentsen: He did not qive me the details. He just
said, 'we'll strengthen our offar.' And, they were helpful to us
on tne closinq days ot the GATT. And (garbled) but we're
appreciative ot that, whatever it may be.
Petar Mytri Unqphakorn (Bangkok Post): Several weeks ago when
the United States was talking about the GATT talks and financial
services liberalization, Southeast Asian countries were
identified as a target group for liberalization; that you were
objecting to protectionism hara. Is that one of the reasons why
you've visited Indonesia and Thailand on this trip?
Secretary Bentsen: It is not just Indonesia and Thailand. It is
just a limitation of time, not being able to make more of the
countries. But I went to these two countriaa in particular
because ot their expanding growth and particularly Bangkok,
looking at its stock exchange which has certainly been modernized
and computerized. I am delighted that we were part -- our
country had a part -- in helping them, insofar as the
computerization, insofar as settinq up their own SEC, that ours
came to counsel with them in that reqard. And so those are
things that highlighted the importance ot this area, and made me
want to come here. It has been quite productive.
John Schurb (freelance): What are your expectations on your next
stop, Beijing, and your discussions with the Chinese government?
Secretary Bentsen: Well, I will be talking about human rights,
about labor relations, and of course I will talking about the
economy and what we can do, the ever expanding surplus with us. I
am delighted to se. that the concerns we had over textiles have
been resolved, before I got there. That is a step forward. That
is helpful to us. But there are other areas where we think their
market. should be opened up more, and obviously financial
services is one of those, and trying to encourage that. We see a
very fast expanding economy developing 1n China and it is going
to be more and mora important insofar as the economies around the
world. And we certainly want to have a relationship that is
productive for both of us in that regard. And to the extent that
wa can qet them to further open up those markets to our products,
I think that is an imperative. We will be pushing very hara on
that one.
Jim Gerstenzanq (Loa Anqales Times) : (garbled) I realize that it
has been quite a while that the embargo has been in effect with
Vietnam, but, given their human rights record, and the various
other problems, what is the rush?
secretary Bentsen: Well, it has been qoinq on about twenty years
now. Some of us older fellows think you ought to end these
things. Get them done. And qet it behind us. I think we can.
Wa've ••• n quite a bit of cooperation coming out ot Vietnam in
that regard.
Peter Mytri Unqphakorn (Bangkok post): If you ~on/t mind me
asking another on a bilateral issue. You talked about hoping for
the tax treaty to be concluded. I understand one of the major
sticking points is your (garbled) in which Board of Investment
privilege. would be wiped out, under the double taxation
aqreement. Are you willing, were you able to offer to Mr. Chuan
or Mr. Tarrin the possibility that Board of Investment privileges
would be retained with the knowledge . . .
Secretary Bentsen: We did not negotiate this afternoon
concerning that. We agreed that we wanted to make our best
efforts on both sidas to finally qet this resolved attar twenty
years. And that, hopefully, will be done as we begin
negotiations on FeQruary 7.
Thank you very much.
End transcript.
6
DEPARTMENT
OF
THE
TREASURY
~/~78q~. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .111
................................
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
Transcript
of
Secretary Bentsen's
Press Conference
Beijing
January 19, 1994
1. LLOYD ~ENTSEN, U.S. S~CRETARY OF THE TREASURY, GAVE
AN ON-THc-ReCO~D P~E~S aRleFIN~ ON JANUARY 19, 1994,
THE FIRST ~AY OF HIS OFFICIAL VISIT TO 8EIJING. THE
PRESS BRIEf LNG W~S ATTEND~D at AMERICAN ~ND SOME THIRDCOUNTRY JOURNALISTS AND ~AS HELD AT THE CHINA WORLD
HOTel.
(B€GIN T"ANSC~I~T)
SECRETARY bENTSE~: ~U~D AFTS~~OO~. I ~2T THIS
AFTERNOOi'j .• IT!-t pt(t:j"I~R LI P:i4G. ; Ai..:;a r~::T .-11TH MY
COUNT~RPART, THE FiNANe:; MLrHSTtR, MR. LIU ZHONGLI.
I
THINK THESE ~~~~ ~W~$TA~T:V! Me~Tr~GS ~ND I ~ELr~VE
ALSO THE ~~GINNING OF A V~NY USEFUL DIALOGUE WHILE
wE'~e HERE.
IT'S ~cALLY TIM~ TO ~E-;NGA6E CHINA ON
~CONOMIC ISSUES.
~E ~~EO TU HELP CHINA REFORM.
~E
NEfD A F~~UM 10 ADDR~S~ ~~~ dILAT5~AL CONCE~~S. THAT'S
~HY PReSI~ENT CLINTON As~eD ME TO cc~~ TO CHINA.
I HAVE THREE OiJ~CTIVE~ 0~ TrlIS TRIP.
FIRST, I AM HE~E ~o PU~S~~, OF COURS~, OUR ECC~OMIC
INTER~STS IN CHI~A.
!T'S IN ou~ I~TE~~ST AND IT'S IN
CHINA'S INTERe~T TO OPE~ TH~I~ ~AR~ETS. T~E 5ENEFITS
OF TRA~E AND I~~ESTMENT CANtT HZL~ CHINA UNLESS CHINA
LETS IT H APP &:N.
.
AND seCOND, I ~ANT TO ~EMO~STRAT~ OUR SUPPORT FOR
ECONO~IC ~EFO~~S IN CHI~A.
ASiA IS THE FASTEST GROWING
~lE~ENT IN TH~ GlO~AL ~CUNO~Y.
AND THAT MAKES A
SUCCESS OF CHINA'S TRA~SfOR~ATICN TO A MARKET ECONO~Y
ALL ~He ~OR€ IMPO~TA~T.
AND TrlIRO, I'M MAKI~G IT CLEAR THAT PROGRESS ON HUMAN
RIGHTS IS ~ASIC TO OUR R~LATIO~SHI~. I ~ILL SAY THAT
THERE HAS dE~N P~OG~~S~, cUT SO FA~ IT rlAS~'T GONE FAR
ENOUGH.
dEYO~O THOS{ 08J~CTIVES, ON F~I~~Y 1 WILL ~E COCHAIRING THE fI~S' ~f~TI~~ OF THE JOINT ECONO~IC
COMMITTEE SINC~ 1~~7. THIS ~EVITALlze~ FORUM OFFERS
THE UNITED ST~T~~ AND CHIN~ A PL~CE TO TALK A~OuT OUR
~UTUAL ECONOMIC CO~CEk~S A~D SOL~TIO~~ TO OUR P~08LEMS.
T~EY WE~~ VE~Y U~EFUL ~~SS!O~S, A~D I TOLD THE CHIN~SE
THAT I AM I~~q~SSEC ~IT~ ~o~ ~~wI~LY CHINA IS GRO~ING
A:-40
CHMCiiII'4~.
THANK yOU, I'LL
~U~~TION:
I
i~
·t 0 U"
T \'1 0
~~.
~CC~~T
yaUK
~eCk~TA~Y,
~ ;;. ~ T
r ' I '3 ~
~~~STrON~
~I~
YO~
1; I :., T ~ ~hA.I
1EA~
l N A' 4'(
AS YOU HAVE THE~.
~~YTHI~~ TODAY
.,. .~
y
~ N C :)!J R AbE
YOU TO MuOIFY YOUR STATtMEN~ T~AT wHIL~ THE~~ HAS oEEN
PRuGRES~, IT HAS NOT BEEN ~NCUGH?
WAS THER~ ANY
MOVEMENT TO SHKI~K THAT DISTANCE AT ALL? ~AS THERE
ANYTHING THAT wIDENED IT?
SECRETA~Y BENT5EN
1 DID NOT Sc~ ANY DIFF:~ENCE IN THE
STATE~ENT THAT I M~DE ~~EVIUUSLY.
QUfSTIO~:
COULD YOU JUST T~LL U~ A lrTTl~ ~OPE
SPECIFICALLY EXACTLY WHAT T~E ~5SS~~~ IS THAT YOU WILL
~E DELIVERING TO JrA~G ze~r:~ TO~O~iCJ o~ ~VE~ WHAT YOU
TOLD Ll PEN~ TJUAY ON HUMAi~ HI~~TS AND MFN?
SECRETA~Y ~E~TS~N:
wall, I TC~' HI~ OF cu~ CONC~~~ FOR
rlU~AN ~I~HTS ON T~~ PA~T OF T~~ A~EN!C~~ PEOPLE, ON THE
PA~T OF THE Pi~~I~~NT, ~N~ IN 50 FA~ AS TH~ CONG~ESS.
AND TH~T SO~E PRUGRiSS HAD g~E~ MADE hUT ~E ~ERE
EX~~CTIN~ MO~E, d~FO~~ TrlIS ~~~jID~~T HAS TO ~A~E HIS
DECISION IN JUNe OF THIS Y~AR. ~E GOT INTO QUESTIONS
ON INTELLECTUAL ~~OPERTY 'cI~HT~, CO~?lI~fNTING THEM ON
STARTI~G THAT ~e~IME.
SUT ~~'~E va~y CONCE~~ED A90UT
ENFORCEM~NT ON IT, lOOKI;~~ ~T THE ~NOR~OUS ~XPO~TS OF
CDS, WITH VIOLATIONS OF COPYRI~HTS .~D NO 03S~RVANCE OF
COPYRI~HTS.
QU~STION:
Ole
Y~U
GET ANY
RESPONS~
F~OM
THS
P~OPLE
TODAY TO YOUR CONCER~S ON HU~AN ~IGHTS? DID TH~Y SAY
TO YOU A90UT WHAT THEY'~E OOI~G, ANYTHING N~
THAT THEY'RE P~A~NIN~ TO DO?
ANYTHI~G
BENTSeN: NOTHIIJb 8t::'(OND WHAT TH~Y HAVE
STATeD.
QUESTION: ON TH~ HUMAN RIGHTS ISSU£, NOT TO BEAT IT TO
A PULP, SUT DID YOU SAY SPECIFICALLY WHAT IT WAS, DID
YO~ MAKe ANY SUGGESTIONS FOR WHAT IT ~AS THAT THE
uNITeD STATES MIGHT ~~ LOOKING FOR?
SECRSTA~Y aENTSeN:
HO, I DIe ~OT T~Y T0 DEAL IN
IN~IVIOUkL CASES.
r WAS PLEASED TO SEE T~~T THEY HAD
~ELEAS~D THE TwO TI~ET~N~, 5UT AGAIN, ~AS SPEAKING THAT
~e WANTED TO SE:: MORE ~EINIi ACCO:1PLISHi:O.
AND TH.~T
THAT ~AS AN IM~ERATlve FCH TH~ PkESI)E~T A~~ IN TURN
FO~ THE uNITeD STATeS CONGRESS.
QUESTION: CAN YOU CHA~ACTE~IZ~ w~E~E YOu THINK THE
U.s. A~O CHINA ARE NOW IN ~ESOLVIN~ THIS ISSUE A~D HO~
CLOSE OR HOW FA~ AW~Y YOU THI~K T~~ C~I~ESE A~E TO
~INNI~~ ~FN RENEWAL?
HOW MUC~ PROGRESS ~AVE THEY MADE?
HAVE THSY ~HOW~ THAT THEY A~~ ~ILLINIi TO CHaNG~ OR TO
DO ~NYT~ING CONC~~T~LY seYJ~O JU~T ~0HJS, 3SYONO JUST
KHcTOtHC?
seCRfTARY ~ENTSEN: ~~LL, ~a HAVE SE~N ~O~E SFECIFICS
LN THAT R~~ARD. W~ HAD A VERY F~ANK OIS~USSION ON IT.
AND I THINK IT WAS A HEL~FUL ~ISCU~SIO~.
QUe3TIJN: eEFO~; YOU ~~rT THE STATES, SV~; PEOPLE
THc~E ~ER~ SAYIN~ THAT TH~ ChINESf ~~y ~~ HOPING TO
JU~T DO A LITTLE ~IT M'JR:: A::;> TH~RE' 5 ENOUGH REASON WHY
THe UNITED STATES ~OULO ~~~T TO CO~TINU~ Th~ ~FN, THAT
NO MOR: PROG~ESS WOUL~ PEALLY ~E NcCESSAwy. AFTeR THE
~EETINGS TODAY, C_N TH~~E ~s A~Y CONFJSI0N J~ THEIR
~A~T, HOw Fo~CeFULLY wAS T"I~ puT?-SECRETARY aENTS~~: ~~ h~O ~ V~RY FRANK ~r~CUS~IO~ THAT
IT w~s r~PORTAHT TO THE uNITED STAT~S PRESID~NT, THAT
IT WA S I"" PO RTAN T TO (U i. CL £ A:0, THAT I TwA S I ~1 PC~ TA~ T TO
THE CO~G~E~S. I THINK T~EPt C~N ~E ~o ILLU~ION AeOUT
THAT, NO MISUN~~~STANDING ~80UT THAT.
~UESTION:
HOW MUCH ~O YOu SEE TH~ R~C~NTLY A~RE~D
TEXTILE AG~EEM~~T I~FLuf~CING THIS TRI~ T~~T YOJ A~E ON
~ECReTARY
PR~VIOUSLY
I~OIll?
~ELL, 1 ~~ V2~Y PLE~SfD TO SEE THAT
I T:-t I Ni(. TnAT : N CI) UI{ .... ':i c: S Th ~ :: Ci.) i" 0 Y. ! C
~OOPERATIOr~ Qt:TWEt::-. Tt1:2 Twv COoj~;T~!';:).
! T!1C~1( T-iAT'S
:'\N V'PER~TIVr;. TO Hc~!'< Trj~ COi~C::'~~S A6t)uT !ljTEI..LECTUAL
SECR~TAJY
~~~TS~h:
A(j R c C1'1 E;.. T •
~~O?ERTY
RlbHT~
~~~
~HAT
CA~
THAT ,~ ENe J UI( AGr i .. :..i TO., ~ •
~0,
S! ;'4 C eo:
r '" -\ ~
T r1!; ~ A ~ T T I I': E
I'; TI1;~.L~ i1W;\,,,.~
~R~bR=SSIO;~
~~
~aN~
.., HAT Y~ ,J
H;::' /( t ,
":':LFe.·d~
!~
0\
T~AT
q~Gl~D.
q i: :5 ~ t: I ~ G CHI ill A
1 .;~.
~
T:1Ii~G.l,
~""~
!fI.I
zr N G
SO
FA~
AS
l:~ FAN THO RTAL I T Y, INS 0 FAr< ,0\ S M0 ~ TAL I T Y 0 VERA LL, ItJ S0
fAR AS IMPROVEME~TS IN EDUCATIO~.
O~T COUPLED ~ITH
THAT, ~E WANT TO SEE AN IMPROVEMENT IN ~UMAN RIGHTS.
QU~STIO~:
MR. SECRETARY, THe~E ARS ~ LOT OF PEOPLE ON
~OTH SID~S OF THE PACIFIC ~HO HAVE dEEN WAITI~G FOR THE
CLINTO~ A~MINISTRATION TO DEFIN~ THIS YE~~ AHAT IT
MEANS ~Y OVe~A~~ SIGNIFICANT PR06~ES~.
YOU'R~ THE
HI~HEST, MOST SENIOR OFFICIAL ~HO'S ~~E~ Hs~a.
IS THIS
DEFI~ITIUN COMING TO C~O~UR~?
seCRETARY aENTSE~: ~E~L, I THIN~ IT I~ c~TTE~
ui'4DERSTOJ~ AS wE CO~TINU~ TO P . ~OG~=S').
,1Y O::lJECTIV:
TOO, OF COU~SE, AND ~y RSSPONSI9ILITY, 1$ THE ECONOMIC
SIDE OF THE ISSUE, A~D ~~ ~ILL SE REJUV~~ATI~G THE JEC
TO OISCUS~ SOME OF THE ~CONO~lC CONC~~~S ~~0 ~HAT CAN
SE DON~ IN lHAT ~EGAdO.
III U t:: ST I 0 I~ :
~ IT H K: 3 tJ E CT TOT H E EC0 I'j 0 .,. !;: ! s SUE S .~ N 0 YOU R
CONCERNS IN THAT A~E~A, 00 yeu SEE THE CrlA~CE THROUGH
.OVERLY ~MPHASILI~G A TOO-RAPID C~A~G~ I~ CHINA FO~ THE
A~OSTH~OJ~;~~~~EDI~ADVA~!A~~O R~LATIVE TO T~E EU~OP=ANS
ARE
_.
~ , wITH R~S~ECT TO TRADt?
JE CE~TAI~LY
S~~ING SOME OF T~AT ~s ~E LOOK ~T S01E OF TH~
,
LA~G~R INF~ASTRUCTUR~ PROJ~CTS HE~e IN CriI~A ~I~~
TR~MEN~OUS THREATS FRO~ THE ~URn - .
.
REL~TLVE TO ~~AT T~E A~e~ICA~S C:~A~~F;~~ T~oe JAPANESe,
CA~~ TO COM~ENT ON THAT?
_.. ~ ULD YOU
~ECReT~RY aENTSE~:
wELL, I TH!NK THE A~E~~CANS HAve A
LOT TO OFFER IN S~ FAR A~ THE l~FRASTRUCTURE,
I~PROVEM~NTS TO THE I~F~AST~UCTU~E.
W~ TALKED o\80UT
SO~E Of THAT, ~~ TALKEu ASOUT POWER, W~ TALKED A80UT
TeLaCOMMU~ICATIONS, wE TALKED ABOUT AI~CqAFT.
WE'RE
EXTRE~ELY COMPETITIVE IN ALL OF THOSE AReAS.
A~D THOSE
THINGS wE DISCUSSED.
~U€STIO~:
YOU'Re SAYI~G YOU'~~ P~~P~R~D TO GIV~ SOME
Jf TH~SE MA~~~TS UP IF THE CHr~ES~ ~J~IT MQVE FAST
~NOU~H, iN TH~ DI~~CTIO~ THAT THEY'R
~
CL~~~LY
ALR~ADY
i10V!NG'?
SECRETARY
ef~TSEN:
wELL, THE DECIS!ON O~ ~fN wILL BE
ON T~~ PkOGReSS I~ SO fAN ~S ~JMAN RIGHTS.
IT'S ~ ?ART OF TriAT ~~Cl~I~~.
IIIUt:STIOi4: Rt:CEf!TLY A :W"oE~ OF CHr!~E3~ OISSIOF.~ITS-
peOPL~ WHO HAV~ SPENT LON~ r~~IOOS OF T!ME IN
OETENTIJ~--HAV~ S~ID THAT THEY ~UP~0RT ~XTENSIC~ OF ~FN
fOR CHINA.
COULD SOMET~ING Lr~~ THAT INFLU2NCE T~E
OE~E~D~NT
U.S. DECISION'?
SECRETARY ~ENTSSN: WHAT ~f'~E LOOKI~G FOR IS CONCRETE
SERIOUS ~ROGR~SS.
SO~E OF THAT HA~ )E~~ ~ADE.
wE
ANTICIPATE AND ~Q~~ MOkl.
QUESTION: JAPA~ ~~D CriI~~ AR~ Th~ U.S.'S LA~GEST
MA~KETS II': ASIA.
lli1 JUST '... 0:·JOt:f(I~'\i AS F~R ,1\5 CHINA'S
MA~(ET ACCESS N~GOTIATIONS A~E GOI~G, HOW ~O YOU SEE
ITS IMPL~MENTATION OF THE AGRE~MENT? AN~ UITH YOUR
NEGOTIATICNS wITH J~PAi"" I u;~Oe~STA:JD THAT TALKS ARE
:i TAL LEO 0 NO? ENr N ~ T: Lc; C.: ,~ A-~ ~) it!!:: 0 I C~ L E':,lU I PM ENT.
AND
~HY AriE THESE STALL~~? ,ANU ALSO, ~o YOU THINK THAT THE
Y~N/OOLLAR RAT5 IS SATISFACTORY ANO ~HAT A~E YOUR
CO~~ENTS ON T~~ YUAN ~€I'G FLOATEO?
sec K ETA i(Y ~ E NT ~ e:i : H0 ~ I~ U CH T I :., ~ DO JJ ~ ....·W E HER:?
(LAU~HTEk)
~~LL, QBVIOUSLY T~E FR~MS~O~K TALKS ~Re NOT
?ROG.RESSING A~ '.Jl:.LL ~S TH;:Y SIoiCULO.
~;I~ .E. HAVE TO SEE
FUKTHl:R ADVANC: cY Tn: J,l.?A,-JESc.
~'I1) THAT IS A vERY
S E i( r 0 usc 0 N C ~ RN T 'j US.
i)F
TH~
'" IJ :: S T 1 0 i~
OV~K
Tnf
LI
TJ
I(
=
i)
C Y 'J IJ
..j A 'H
or () T ii. Y FUR A C0 U ? L E
OTHE~S?
:
\J
I II c:'4 T., ~
~o~~
~ ~~
14
T~~~,
~J ~
'(
v c: C(j UP L r NG
CA ! I
~:j
EXP~CT
TO
A ;'1 t: ·d
vO YOu
-)
r i'l F. :, 2
S~E
~~
(! tJ
AIJ 0 I 6 L : )
~OULO
C F i, F ,~ ;. :',: D T H:: '1 J ; ~ fd'1!
~
YOu
I GHT S
IIIU EST I I)N?
SEC~ETAqy
UENT$~N:
THAT'S :;U!tlu
ou"
Tv
.a .) V i: r< r'_ ;'1 t : IT •
f::c
~H
rMc
\~,
I
CA~;:.
••• ! DON'T THI~K
.H·3 NJT Tn: POL:CY OF
DO~IT
T~
T I"l E '( AQ': C'': t.J P L -: L
•
~U~~TION:
YJU SAIO EA~LIER THAT Yeu ARE, THAT T~EY
AR~, YOU AR~ LOO~ING FUK CO~CR~TE PRC~R~SS I~ H~MAN
~ I ~ Ii T.::i •
:) 0 YOU " X? ECT Ii ,~ D J\ .'H I CI PAT:: i"lO RE? I S THE ~ J:
ANYTH II~~-~EC~~TA~Y
~O
I'~
3£NTS~N:
AN OPTI~IST TO START ~ITH, SO,
EXPECT1NG ~ORE.
SuT!~ IT SJM~THI~G THAT TH~ CHIN~S~ HAVE
ANO A~E THE~~ SIGNALS TH~T TMEY HAVE GIVc~
rlOPING FOR
I'M
~ORE,
QUESTIO~:
I~DIC~T:D,
f0U. THAT ARE OIFFE~ENT FR0~?
SEC~~TA~Y d~~TSE~:
THAT'S AS
~UCk
OF
A~
ANS~ER
AS
TO ~ET.
CAN YOU GIV~ u3 ~OMc S?EC!FiC~ ABOUT TH~
~O~K OF THE J~C?
~MAT IS 04 Y0~~ A~~N~~, ~HAT ARE YOU
Hopr~b TU ACCC1PLI~H?
! MEAN SO~E SP2CIFIC GOAL~, NC~
THAT IT IS GETTING ~fSTARTED FOR THE FIRST TIME SINCE
YOU'~~
G01~G
~U~STIJN:
'a7.
~EC~ETA~Y
T~
E
aENTS~~:
=C J:,.o MY
QUESTIO~:
SECR~TARY
~ROVIi)ES
YO~
MeAN IF
TH~
JOINT ~CO~O~!C-THE JEC. OH w~LL, I THINK
~~
A~E
T~L~INC
~~OUT
.~Ow?
THE
J~C,
~~NT$~N:
~H,
US A FUI<Ul1 TO
€,(CHA~h.i;;
VIEW~
A~i)
TRY
Tn
T~AT
•••
(NOISE FROM MIC~O?~ONE) ••• YOU ~LL ~I~HT? (LAUGHT~R)
TO TRY TJ RESO~Ve OIFFERE~CES.
w~ GOT I~TO T~AT Ih T~~ DI~LJGUE WITH T~E ~REMIEP.
IN
SO FA~ ~~ THAT J~'~E NOT ~I~~ORS OF EACH OTH~R, THER~
ARE
IN OUR CULTURE, ~IFF~~~NCES IN ~UR
THAT ~~'~~ THE LARGEST ~~V€LOPED COUNTRY
IN THE ~ORLO A~O THAT THEY A~~ THE LARGEST DEVELOPING
COUNT~Y I~ THE ~O~LU.
AND THose T~O CAN PLAY OFF OF
OIFFER~NCe~
~CONOMIES, AND
~ACN
so
OTH~R
A~D
~e
~UTUALLY ~ENEFICIAL.
~S CAN 00 TO
IN TALKING A8uUT JHAT
~ND
G~O~TH
~IT~
OF T~INGS ~='LL
US T.I1AT (!.'4u (H
~INIM~M
I~FLAT!ON,
FUrtTHER
~E u~SCUSS:~~ ~T TH~ JEC.
~ FiJ~J:·i, T~AT(':) :i-:LFtful.
Th~~ L~ TL~N, r TAL'~D T0 ~IM
AN L> T ri c; J. ii R E c;,' E ,JT ,.., Y TH~ L ~ A :>
.~ WOULD ri~\I:: 1:1 Tn:' fo'ACIFIC,
A~OUT
=~ s
PRCGR~SS
ARE THE
THOS~
~EATTLE
TH:
TY~ES
IT PROVIDES
~E~TI~G
0 F J J ,~ CC U~l T PIE S THAT
THAT I \.C:0~;: l!~ HOSTING A
TH~ FINAhCE ~~~ISTf~S.
~ND I'M DOING TH~T
UN MARCri TH~ 1~TH AN~ THE 1~r~ ~HICH THEY'V~
AG~ E~ 0 TJ ATT~ i'W • A'H) k:i t=: S :. D TO !\ J :> !: J ~':': J THE ~ TIi I NG5
TO TH~ AG~~OA TJ ~~ OIS~~~S~~.
I w~s ~~KING FOR THEIR
COUN~~L IN THAT.
~E'LL JE HAVING ~ ~€~T:~~ OF TH~
~€puTI~~ T0
FU~TNak uI~C~~~ T~AT
~~~~O~ ~iO ~HAT SHOULD
dE ON rT.
JOAN LJGu~-KINu~R, TR£ASURY ~S~T. $cC~CT~~Y
(O~SIG~ATE), PU9LIC AFFAl~S:
TH~ S~C~iT~RY HAS TI~~
FaN Twa MO~f ~UESTrON5.
~UESTIO~:
OECE~~~~ j1ST ~AS T~~ JE~DLIN~ FOR C~INA TO
('leeT SOr-lt: iJr THo: ;C:GtUIR':'iI:~T~ JN~t~ TIi£ r;Ail.I<.ET ACCESS
A~I<':Ei'1:;:NT OF L.
~ STY EA~ •
I U;W :: ;~ STAN J TH; CHH~ .; ::i:: r\ T
THE LAST ~lNUT~ CAM~ TH~8UGM ~rTk SOME ~XPLANATIONS,
~ESPONS~S--AR~ Jh2Y ~ATI~FACTJijY?
OIJ T~~Y I~DEED ~EET
rHE ~~~UI~~Me~T~ ~y TriAT TI1E?
~EC~r:TAr\Y ~::NT:le:~:
! JON'T K~H)'" T;'P: OF.T"'rL ON TH~T,
YOU'~ ~A~E TO TAL( TU UST?, dJT 0~~I0USLY ~~'VE ~~DE
ME~TING
I~
OF
HA~AII
:i iJ d :) T A.'1 T r A L ? !'! 0 I,) f( E S ~
THAT'~ ~ MAJO~
"'U~STrJ1,:
YOU
ri U Ir. AN" £ L FA? ~
'JF YOur<
~o
y~U
•
0 , ~ T Ii c: T u<T .) F T Pi ,;
~
N0 ~
GR F E f' E !II T •
PLUS.
Ht:~TruN~)
14. ~ ~
i)~FLoIIT~Oi~
~ ~,
$L:2;)T!~
f~.H
I.'i~'''~OvE:'''I€rH~
.TIAL
r- " 0 'J E.~ ~ "l T.j :
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4~j
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CJ~~!OE~--
~ECRfTA~Y
~UtST~O~:
~~~T~E~:
10,
T~J.T'~
T~AT'S
C0~P~~T~~~
M0T •••
fEPA~~T~
•••
• It ~ T '~0 :) r F F E ~ ,:: ;'1 i • •• ~ H ~ r: I wAS
r A L t<. r !'.j Ii-\ :$ J 'J T h IJ "~I .4 N '" t:. L F';' {:;, I ~:.' ~ 1 ~ L It I ~, . i ' : Ci 'T T H ~
1 NCR;. ,; ~ l.) L;." ~ I.. S (} F I: Ii 1..' ~ A T r j 'j T ~,;. T .;.\ 'J ~= =i.: '"
'" ceo ~i ? ~ ~ ~ ~ ;; () • IN i-I ;) T ~ ~ ~ r :~ .; Po c_:;.; T ~ H:d T H ~f • VE .., CC,~
~dL.l T0 JG IN INF_~T ~~~T;~lTY, ""~T T~~Y'VE ~EEN A~L~
r 0 ~ U J ·f ... ~ ~ L. L j :. ~.: ALT~ • I • 'Ii:: ~,=;:'! V:' -t Y :i I J J.j :; T~ :H I AL
~
=: <= ~ ~ T \~. Y
r H ..: 'r
:;: ~ T ~ .: :', :
PRJ~'H3S Slj~Cc: TrlE LA~T r1;"!:.; r "'~'') ~;:~:.:;
LO~~~-~IND~u:
T~A~~ YJU V~~Y ~~CH,
S E C11 :: TAr:"( ~ .: ;. r .) E ~
T H.'\ .; I<: Y u u •
MS.
I
:
J!-'C<
~~.
I-J 197~.
~fC4~T~~Y.
DEPARTMENT
'IREASURY
OF
THE
TREASURY
f,t, NEW S
ISOO PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
Transcripts
of
Public Speaking Engagements
Moscow
January 12, 1994
Removal Notice
The item identified below has been removed in accordance with FRASER's policy on handling
sensitive information in digitization projects due to copyright protections.
Citation Information
Document Type: Transcript
Number of Pages Removed: 20
Author(s):
Title:
Kremlin/Press Conference By U.S. Treasury Secretary Lloyd Bentsen With A Group of
American
Journalists (Metropol Hotel)
Date:
1994-01-12
Journal:
Volume:
Page(s):
URL:
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
DEPARTMENT
OF
THE
TREASURY
1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I"~~/7HqC:"1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I1I
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR
IMMEDIATli RELEAS2
Text as prerared for dallyery
January 13, 1'N4
STATDfDlT OP '1'RDSURY SZCRftAaY UCYD !SEM'I'SEN
MOSCOW, ROSSU
January ll, 199..
Ru•• ia
i.
&t
a
cr1t.i~1
eommitment to praQQ on ond
~.
junc~ura,
but
I
118n..
thooo retoc. . vorx.
a
Q~ronq
President Clinton 4nd Pr •• i~en~ Yel~a1n had a dlgeU88ion ~Do~t
the pr09Yess ~hat haa b ••n -ade 50 f~r, _nd it's a~.t.an~1al. in
r.Cocm.i119 the Russian economy. Thay~" lked U)oue hov pr1 v~~iz.tion
has eo. . alan. 00 vall, 70,000 . . . 11 bualn..... ana 10,000 larg_
on. . conv.reed.
Th.y discussed hov intlAtion 1. down 'roa JO
parcent • laGnth -- 4l1d that' • ~ , J 00 parcan~ II year -to 12
p.re.ft~ • won~, bow Rucaia'. ~dget d.~i~1~ w•• c84ucaa rroa 20
percant at GDP eo , percent last year. and how 4allar v.qe~ hAve
r!=.n thr •• -told.
Atter Pre.ident Yel~s1n and Oeputy Priae K1niatar Bori~
~.dorov dQacribed Ruaaia'. impre6aive e~onoai~ reCOrQ, preS1Qant
clinton sai~ i~ Was ~ real aahiev. .8nt and_A utory ~e h4ve ~o ~.t
out to
~e
world.
An~
lot of
1 eol~ Hr. Yalta1n that l/v. traveled the wo~ld &nd met &
econoaic teAaa and YO~B 1. one 0' ~ best.
n_ic1en~ C11n1:on aDd Praa1denf: y~lt.ln .~e_ ~t RuGG13 h~o
a auon" ec:onoaic teGa ond that. there gan be no eurninc; ~ClC rro.
tighting lntla~1on and eontinuin9 to privati•••
Ancl IT. . iclont C1iD~OD proal.eel that _ 10111) •• Rus.ia keepa
reforainq. v.'ll wort with the C-1, ~. IMP and the Wo~ld Bank to
qet this support dallvered •• rap1dly aa poaaibia.
presiden~ C11n~on aaaured President Yaltain ot the strong
aupport the Weat has tor tll~ .L ,,'\,IrIl8 that are ba1nq ma<1e. We don t t
IJ&nt thi~ momentum to .low.
LB-595
(MORE)
-2President Clinton also aqroed with president Yel~ain th4t mora
attention has to b. paid to eaain9 ~o•• o( the hardahipa that ve're
he .. r1nq about. We tallc8d ~b4\lt Cindinq' ",ay. to cut tbzouCJh SO.8 ot
the red tape th~t can q81: 1n the way or our suppon!.
In that
reqar-t, ~e sugpor~ Implementation Croup ~ pl~y an ilII~or~2lnt:
role.
Wa diaou3aed aow Rus.ia and th. In~eru.t1on.l .1nanoJ.al
In8~itutionlJ C~n cQoperac.a ]la1" • • tt.c:tively 80 ",. ~an have IIOre
ratorw, ~d 1t01." support. Anci ve cii.cu•• eel tr~da and inveatJllant
ia."a.
Betore ",e hAd tAa lar98Z' bilateral, I .et wi ~ xr. lPedorov and
Firat DelNty Pri.. ltinistar
Qoed bllc allQut a vide ranq.
Y~or
Geydar.
Wa thre. at u. bad
suQjacu.
at ac:onoaic:
th....
~
I.
I !ound F.dorov and GaydA%' quit. qqer to oarry on tne••
reforma, and even .!ccalQrate
And that
the way 1:h111 haa qot
t.o qo.
I alao as.ureQ Mr. C~yQGr tJWt ~e W. .i: vant.. to lIee
foreiqn aa8ist~nc. advan~. a8 :ast .a the r.tarma advance.
When Mr. Fedorov and I vera talJdnq AQoU1: how pr1v.t:1.3~tion is
9 0i nq, he told me ~t people uaea to 11~e ~p tQr breaa hare in
Moscow, but now the lin•• tor Ch.r •• in ~•• buaine. . . . .
Finally, S.cretu-y Chri"topher and I ••t: vita t.he n.,. American
ot Co-.arce. and I told thea hov ~e're urGinq the Rus.:1.~~.
to cr •• t . the kind oC body at law tha~ enc:oUZ'all!.. the pr1vat:.•
••ctor ~o co.. 1ftv••t in Russia.
Ch~
-30-
DEPARTMENT
OF
THE
TREASURY
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
Transcripts
of
Secretary Bentsen's
Public Speaking Engagements
Jakarta, Indonesia
January 17, 1994
SENT
BY:USl~
AMEMBASSY
JAKA8TA:~-
1-94
7:56PM
;USlSJKT62-2'-3a'0243~
202 622 1999;# 2
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
American Chamber of Commerce in Indonesia
Jakarta, Indonesia
January 17, 1994
Unofficial transcript of remarks as delivered, followed by
questions and answers from members of AMCHAM Indanesia:
SECRETARY BENTSEN: Thank you very much Mr. Chairman.
I've
had quite an involvement with Chambers of Commerce. what the
chairman dld not say, I spent 16 years building a business of
my own. In turn, I served on a number of International Boards
of Directors while I was in business.
I just left MOSCOW where I joined 1n the organization of the
first meeting of the American Chamber of Commerce in Moscow. 1
was on the Board of Directors of the Chamber of Commerce in
Houston Texas, so I understand something about where you're
coming from.
In building a business and dOing that for 16 years and then
going to the Senate, I must tell you I never intended to spend
22 years there. But that I did. Seems to me every time
someone else decided they wanted the job, I thought I must be
overlooking something in it and I decided to stay on.
(laughter)
I told my kids, I said, I don't want anyone of you going into
politics, we can afford only one at a time. And I said,
besides that don't you ever get into a business where they pa~
you off in plaques. I said, either get something you can eat
or put in the bank, whatever the career is that you go into.
(laughter)
But I am delighted to have a chance to be with you and visit
with you for a few minutes. Let me tell you, too, that I think
the United states government, the United States has got its act
and put it together.
I believe American business is as competitive as it has ever
been. Squeezed out a lot ot the fat. But at the same time
that you saw those big headlines about 20,000 being laid off
here and 5,000 being laid off there, a lot of out-sourcing was
being done to small business. They were adding five welders
over here, three computer workers over there, ten case workers
over there. And it added up to over 2 million jobs last year.
Over 2 million, and they weren't just hamburger-flipping jobs.
Some good jobs in that one. So we have seen more businesses,
more jobs added in 1993 than we saw in the preceding four
Years.
.
One of the reasons is that we were serious about cutting
that deficit. Five hundred billion over five years, and we are
ahead of schedule on it. The skepticism, the cynicism about
are they really goinq to carry through with it -- we've been
doing it
And that is one of the reasons you are seeing the
lowest i~tere8t rates, long-term, that you've seen in 25
years. It's one of the reasons you are seeing the low shortterm rates that you're seeing today.
One of the problema that I can remember so well for A~erlcan
business just five, ten years ago -- the Japanese hav1ng
interest rates, long-term, one percent. And then they'd have
some (inaudible) out there, with the conversion factor to
accompany them, were selling 100 times earnings. Or the rate
set by the Bundesbank, and that cost of capital gAve those
countries and ~eir businesses an enormous competitive
advantage. Not true anymore.
you're seeing very competitive rates for American business.
And that's one of the reasons that I think that American
business is in better shape in the way of competition than it
has been in many years -- ready to take them on. Take them on
around the world.
What you are also seeing on the part of this qovernment is that
we want to assist, we want to help. We'll push your businesses
in any way we can. That's why your seeing these embassies with
the attitude of trying to assist.
Ate thete things we ¢an do better? -- ot course there are.
That's one of the reasons that I am here, to listen to your
input and what you think we can do to help make it better. To
look at what's happened in this last year insofar as trade,
what's been taken on and what's been won. NAFTA -- Oh, I admit
there are aome broken arms left in the Conqress, but
nevertheless we've pulled it off and put it together.
This is the fastest growing area in the world. The second
fastest growing area is Latin America. And we want to be a
part of both of those and participatinq. As we look at the
kind of jobs that are created, tow and a half million jobs in
the Onited states dependent on products that we're exporting do
this part of the world. That's why it's important.
I know that a lot of people tend to look at trade for the
United States in this part of the world through the prism of
what the relationship is with Japan. And we are working on
that with a framework agreement. But it is much more than just
Japan, to see What we're dOing throughout this part of the
.
world and how much we want to be a part of it.
Let me give you an example of what trade means to us. The fact
that since the mid-1980s half of our increased income and
almost all of our increase in manufacturinq jobs have been
brought about because of exports. One job in every eight in
SENT
BY:USI~AlEI8ASSY JAKA~-
1-94
7:56PM
;USISJKT62-21-3610243~
202 622 1999;# 4
the United states exists because of trade. And the o.s. trade
with Asia has grown faster than with any other region of the
world.
The APEC nations produce more than half of all the goods and
services in the world. More than half of all the other regions
in the world. We noW qet 60 percent of our imports from APEC
nations, and those countries buy approximately half of our
total exports. That's what we're looking at, that's why it's
important, that's Why we are emphasizing this part of the
world. If we were to increase our market share by just one
percent in Asia, that would add another 300,000 jobs for the
United states.
Here 1s anothe~ number that I think is important. Trade
between the United states and its APEC partners is 172 percen~
larger than our trade with the European community.
NOW, if you recall, President Clinton met with APEC heads in
Seattle in November. That was a sign of how important we thi~k
this part of the world is to us.
The emphasis in my discussions today, and those I will hold
during the week, and the meetings I will have, will be how we
can make this a cooperative venture. It ought to be a
consensus-building eXercise, building on that formula which
worked so well in the APEC trade and investment meetings. I
want to stress our common interests, not anyone country's
bilateral agenda. Our common interest is to sustain this
region's economic growth.
I also will be listening to my eounterparts about their views
on the APEC Pinance Minister's meeting which we will be havins
in March, and we'll be dOing that one in Hawaii.
Before I wind up things and take some questions, I want to
cover a few specific things that may be on your minds,
particularly here in Indonesia.
It 1s critical to the development of this region, and to the
global economy, that we make certain that investment flows ar.
not impeded. A free flow of capital is vital to bringing the!
benefits of the developed world to the citizens of the
!
developing world.
As many of
during the
to open up
that other
you are aware, this issue was among our top concerns
recent GATT negotiations. The United States wants
the financial markees of ehe world. And I believe
economies should be just as open as ours.
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World War II, and as we were trying to help other countries of
the world improve their standard of living, put their act back
together, we made amazing concessions in the way of opening up
our market. Ie was just as though you were playing golf with a
fellow that had just started the game and you gave him an
enormous handicap. But as he got his swin~ back together, and
as he began to sink his putts, ~e never adJusted the handicap
And that is why it'. important that we get ourselves on an
equal footing and open up these markets.
This economy has had absolutely remarkable success -- to have a
country that for 25 years has had almost a 1- percent
compounded growth; that has had 60 percent of its people living
below the poverty line and now has approximately 15 percent.
To sea what's going to happen 1n the way of investment and
upgraded infrastructure in this country and to many of the
countries around tha world who are atraining at the seams on
the infrastructure now overloaded. Meeting those challenges
will be a great payoff for the private sector. And they are
g01ng to require those things that make that market effectively
work. They'll also require things that make it easier to mov.
capital into Indonesia.
I think that the Indonesian government has recognized that they
have to liberalize the investment regime, and they've done some
of that. But there's more to be done in the way of
deregulation. I believe it can be done here and elsewhere
throughout the region. That's one of the things I'll be
discussing while I'm here.
Now let me close with a couple of thoughts.
There is a lot of development work to be done hara in
Indonesia. And I know your companies have been disadvantaged,
here and elsewhare, because of the concessional financing tha
our competitors have available to them. So I want you to know
that where there's an American company in the running for a
contract, we're not at all above stepping up to argue you poipt
of view. And if more than one of you American Companies,
forgive me, but we'll do it in a generic way.
And finally, let me wind up by saying my main theme: weill
work to get the climate right for you to do business, and wor~
to get those tariffs and other barriers down. And since our
companies have become leaner and more competitive over the
years, I think you are going to do well.
Thank you, and now let me ask for questions. Mr. Chairman, let
me put in a couple of ground rules. First, stand up and give
me your name and who you are associated with. And no six-part
questions. I usually can't remember past the second oneo And,
for che moment, I am the only one Who is sUppOsed to make a
speech, OK? Let's go ahead.
Mr. Secretary, I chair the Trade Expansion Committee in the
Chambe 7• You made mention of financing, of export credit
financlng and so forth. What do you see as the prospects fot
more funding and a more aggressive approach by EXIM bank
w~ich, as you noted, export financing, and particularly ~roject
flnancing, are extremely important here?
0:
BENTSEN:
Q:
On the Export/Import Bank were you asking?
Yes sir.
BENTSEN:
You had your hand over the mike there.
well, I tell you it's tough to qet additional funds because of
the budget constraints and what we are tryinq to accomplish in
that regard. There is •.• It is an absolute priority to
increase trade, to do what we can to level the playing field
out there. But insofar as major, major new appropriations fer
that purpose, it 1s an uphill fight. The budgetary caps are
serious. They're real. And you can say, well, now, in the
long run it's qoing to payoff very handsomely. But the long
run for us is -five years. That's the budget we are set up ort.
I'd like to tell you just what you want to hear, but I can't~
you know.
Mr. Secretary my name is John Bates and I'm with
(inaudible) Indonesia here. I wanted to ask you, you mentiOned
that one of the biq advantages that the U.s. is now
experiencing is lower inflation rates relative to other trading
partners. I know you cannot see through your crystal ball irito
the future, but if five years is your time horizon, do you
expect the O.S. interest rates to remain competitive to those
foreign countries we are dealing with in the APEC area? Thank
you.
Q:
BENTSEN: I've learned not to make predictions on interest
rates. I will tell you that people like those four or five
fellows riqht seated over there, they'll remind you of what
you've done, those are reporters, you see. They'll take it
down on me. I will tell you this, I refinanced my home
recently. And I did it with an arm, I did not take a
thirty-year mortgage. (laughter, applause)
0: Mr. Secretary, I'm Marvin Turner with an engineering
company from New York And to follow up on the Exim Bank point,
I would register a concern. I am involved in negotiations a~
the moment where the use of Exim financing would be helpful.
Our major concern is the time required to handle paperwork and
to take advantage of those facilities.
BENTSEN: And so it always 1s with government. And I
understand that concern. I do not have a direct responsibili~y
with Exim bank, I can punt that one. But I share the concern.
Whatever we can do to help influence it, we will, to try to
accelerate it. Sometimes it takes so long it becomes academic,
it's after the fact and you lost the deal.
Or Mr. Secretary, Jim Philgo. I juat wanted to make one point
and ask for a feeling on the timing for this. I don't know if
anyone has mentioned to you (that) Indonesia would be an
excellent stepping stone into the Vietnamese market. And I
would certainly like to have your idea of when that embargo
will be ended so we can begin moving American interests into
Vietnam. Thank you.
BENTSEN: Well I'd say that decision has not been made, but I
think that it will be forthcoming quite soon. I think that you
have seen progress being made in that direction by the
Vietnamese and by the United States government. But we share
the concern. I cannot give you a definitive date because w~
have not decided. I wish I COUld. But what you have seen 18
an easing of getting involved in the contracts where you've had
some financing that has been brought about by the bank and
letting American business to a degree take advantage of that
Some of the reports we are getting back are quite encouraging,
what we've heard.
0: Mr. Secretary I think that everyone here understands that
the Administration has been a strong supporter of free trade
and of Indonesia and we always, being 12,000 miles away from
waShington, wonder how we as businessmen here can help in
Washington selling Indonesia's story and how that creates
opportunities and jobs in the united States. Could you give us
your comments on that?
I
BENTSEN: well I went into that, I thought, some, but the
fastest growing market around the world today is in this part
of the world. We want to be a part of it; we want a closer
relationship, we want a better understanding; we want Indone~ia
to have a higher profile back home and particularly for
American businessmen. And not just som~ of the oi9 compan1eG
chat are represented here. We want some of the middle
companies, the middle size to show an interest. That's where a
lot of our growth is coming 1n the United states today. By
smaller entrepreneurs who are ready to take some risks. And I
think that what we are seeing now, with the- kind of cooperation
we are getting out of our government and the embassies in these
various parts of the world, it makes it easier for the
medium-sized company to understand and be able to participat~.
I'm really amazed at the mo~esty an~ the lack ot aggressive
point ~elng made on something like 9/11. I really thought I
was gOlng to get a question on 9/11. But I had some earlier
talking to me about it and I want to go back and do some
further research on it. I have not been back on the 9/11 issue
for some time. I do recall that I held hearings throughout
this p~rt of the world when I was a United States senator. ~t
that tlme, as I reca~l, you all talked me into pushing it up to
$70,000. I asked thlS morning, I said, what is it now? They
said $70,000 and that was 4 few years 4go, so weill go take ~
look at it.
Q:, My name is Ari Anardi.
I'm from the U.S.-Indonesian
Bl.ateral Committee of the Indonesian Chamber of Commerce.
Altho~gh there are a lot of positive signs with U.S.-Indones1an
relatlons, there are still some clouds on the horizon, namely
the GSP issue, IMET, Feingold. What do you see as the
prospects for those and overcoming some of those difficulties?
Thank you.
BENTSEN: This Administration does not support the Feingold
Amendment. And what we need and what we have to see, we have
seen. We have seen a movement in the right direction on human
rights, on labor relations; we think more has to be done in
order for us to be able to get affirmative decisions in regard
to GSP.
My name is Bob Wick, I'm with General Motors Taiwan. I'm
President of the Chamber in Taiwan. Currently there continues
to be a lS-year-old ban on high-level visits to Taiwan. We
have noticed -in Taiwan that you've come out to the region, but
you've left us off your itinerary, aven though Taiwan is the
sixth largest trading partner of the United states. Do you
have any idea or can you tell me if and when that ban will be
lifted so that we can get the same kind of support for 0.5.
business in Taiwan that our competitors from other countries
receive from their governments?
Q:
BENTSEN: Let me assure you that it is not .•. I didn't go, did
not deny going to Taiwan for any political reason or any policy
reason. It was, we just didn't have time in the agenda, in the
itinerary to make it to some of the other countries, whatever
other countries are involved. AS I said, I had a la-hour
flight getting here. But we have a very crowded and full
agenda, itinerary. I don't have a definitive answer for the
other.
Well thank you very much, good to be with you this morning.
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
Indonesian Economists Association
Jakarta, Indonesia
January 17, 1993
SECRETARY BENTSEN: Thank you for your generous remarks. I am
delighted to be here. I understand we have about 200
economists that are present. That must mean we have at least
300 opinions.
But at least there is one thing I'm sure that we can agree on.
Last time I was here it was about 20 years ago. What an
incredible difference in Indonesia. The difference betfeen
night and day what has taken place.
To see a country that's had a compounded, almost 7 perc,nt
increase in its GDP. To see it moving from, at that time,
about 60 percent of the people below the poverty line. And
today, about IS percent. Indonesia 1s the envy of much of the
world as to what you've been able to accomplish.
And itls not just Indonesia that is doing well. This entire
region is the fastest growing area in the world today. As you
look at it, this area is growing three times as fast as the
rest of the world. The three countries that I'm Visiting on
this trip will have approximately 10 percent of the world's
output. Everyone of those countries is growing at a rate in
excess of any of the industrialized nations.
What's happening where we see this kind of economic growth.
Well, welre seeing trade cooperation. Not military
confrontation. Trade and growth promotes stability and
prosperity. And they also promote security. There's a' clear
linkage between the two. YoU don't have to be able to chart
supply and demand to figure OUt the issues of economic policy
are now a central feature in international relations.
I was 1n Moscow last week. I looked at a situation whete you
had President Yelsin, President Clinton and President
Kravchuk. Those three going together to rid this world of ours
of over 1,700 nuclear warheads and missiles. At the same time,
for the third summit in less than a year, I was there talking
with president Yelsin and the reformers about keeping the
momentum qOing in the reform program. We announced a number of
things that I think will help keep up that momentum.
you know" a decade ago if we had said that we had Summit
participants in a vigorous diSCUssion, that would have really
been a diplomatic code that would have said that we were
shouting at each other about throw-weights and missiles. Today
1t means we're talking very forthrightly about critical
problems of opening up markets and investment. Or how to
restore growth amongst the industrialized world. The ~lnds of
issues that most effect our lives.
The bottom line is that economic policy today is foreign
policy.
Now to explain our approach to microeconomic policy, let me go
back for just a minute. President Yelsin realized, no
President Clinton realized, that if we were to be taken very
seriously in so far as counsel to the rest of the world that we
had to get our act in order back home. That we had to
straighten out our own problems first. We have done just
that.
We've taken sao billion dollars out of our deficit projections
over the next 5 years. There are all kinds of skeptic$ that
said are they really going to do this. In reality, we re ahead
of schedule in that regard. Our growth rate now, it's steady
and it's growing. Our unemployment is the lowest that it has
been in three years. Our economy today is the best performer
I
amongst the G-7 countries. It was because of good
macroeconomic policy that will sustain it and keep it qoing
that way. We're talking about open, competitive trade policies
and markets. An emphasis on people. The same kinds of things
that have allowed this region to strengthen its economies.
Our pursuit of those trade poliCies by the way has given this
administration what I think is probably the most successful
year of any administration on trade since World war II - GATT,
NAFTA and the APEC leaders meeting.
Our willingness to make the tough decisions and sometimes
politically very difficult decisions and painful ones. That's
what's helped bring about the turn about in Onited states'
growth in the last year. It's given us creditability in our
dealings with other nations.
The strength of that domestic progress gives us the foundation,
I think, for an ambitious international agenda. The elements
most applicable in the Asian and pacific region are the opening
up of markets, the expanding of trade. These are the elements
most likely to support the two goals: creating jobs and
economic stability.
Let me elaborate. The success of nations such as Indonesia,
that's absolutely critical to the United States. It's
increasingly important to our economic well being. Since the
middle of the last decade, half of our increase in income, half
of our increase in income, has become of increased exports and
trade. Almost all of our industrial jobs have been created
because of exports. Those are jobs at higher wages than the
average job in our country. One job in every eight in the
Onited States today is directly attributable to exports.
But beyond that, promoting prosperity abroad, simultaneously I
think promotes stability and seourity. DollArs spent ~n
developing additional trade can be even more importan~ for
security and stability then dollars spent on a new destroyer.
Democracies don't make war on each other. Their economies are
less liKely to be made worthless by hyperinflation.
Look around this region. pick out the stable nations
Look at
their economic policies. They're moving more and more toward a
market economy. Sound stabilization economic policies. Limits
in government price distortion. Declines in trade barriers a~
exchange controls. Tax and tariff policies that favor capital
spending. In addition, there is often an emphasiS on public
infrastructure development and that in turn helps private
investment.
Around"these countries, if you look at it, the infrastructure,
some of them are strained right to the limit. Whether you are
talking about talecommunications, or you're talking about the
road structures, those are things where you are going to want
to encourage more private investment coming into these
countries.
There is often an emphasis on people spending. On trying to
help them on basic education, to make them more internationally
competitive. Now compare that with the countries that have
conflict and the answer is obvious. Economic growth helps
bring about stability.
Take Indonesia for an example. If you go back three decades,
before this strong growth that you've seen, we all know what
the case was. There was political turnmoil. There was
significant poverty.
Today under president Suharto's leadershi~, the poverty level,
substantially down. Education levels have risen
significantly. Per capita GDP has bounced back strongly.
Virtually every social indicator in Indonesia is up.
Indonesia made a wise choice back in 1970 when it took the
uncoventional approach of removing controls on external caplt
accounts at an early stage in the development process. That
meant that the policy makers received very sensitive market
reactions. And could help them get back on track on where
their objectives really were.
The reconstruction of Indonesia's economy, and that of other
nat ions in this region, has had both an economic and, I think,
a pol~t1cal dimension. Indonesia is now a regional leader,
polit~cally and economically.
President Suharto's pragmatiC
and wise leadership of the non-aligned nations is highly
regarded by the United States of America. President Clinton
proud that he's paSSing the baton of leadership of the APEC to
pres~dent Suharto.
LOOking forward to attending the fall
meetlng of APEC here 1n Jakarta.
what has been done here 1n Indonesia has been replicated in
many of the nat ions of the Pacif ic and 1n A~la. It serveS as
r ,....,
an example to other nations seeking a path out of poverty.
Indonesia, as head of the Non-Aligned Movement, can build on
its own record of construct1ve development, on its role as a
world leader.
.
I want to concentrate now on the key elements of our policy in
so far as Asia is concerned. We want to encourage continued
regional cooperation and integration. We want to see open
markets. We want to reinforce the accomplishments ot the
Uruguay Round. And we want to preserve and enhance this
region's security.
One point here: Let me make it clear that while economic
matters have risen in importance, there is absolutely no
diminution in our commitment to the security of our allies,
here in Asia, the pacific or in Europe.
Now as to Asia and the pacific, this administration recognizes
there's more to Asia than Japan. Too often when we ~alk about
Asia, it's viewed in the context of the bilateral trade
deficits with Japan and with China. They add to 68 billion
dollars. That's two thirds of our trade deficit.
But this region is just more than two countries. We did more
than $7 billion in imports and export business with Indonesia
in 1992. Add if you add to that Thailand, we're up ~o $18
billion. We get 60 percent of our imports from this region.
Are we involved? Are we interested? Well of course we are
when we see that kind of commerce amongst our nations. Asia
and the Pacific buy SO percent of our exports. Our imports
from Asia have risen by two thirds in just the past five
yea~a.
SO you can see what that trend 1s. What you mean to us
and what we mean to you.
i
Trade clearly is a major factor in the growth not only of the
United States, but also of the Asian and the pac1fid nations.
It's made the difference, with increasing investmenb and
development, and riSing levels of income of all of our people.
But there's more to be done.
I
While we've seen tremendous growth over the last two decades, :
inccmes in this region are less than one third of wriat they ar~
in Europe. Asian nations have substantial infrastructure
i
needs. We anticipate that Indonesia alone oyer the next decade
will be spending and will be needing approximately 100
billion, on expenditures, on your infrastructure.
I
We'll be trading more and more with the Asian region and we
will become more and more interested in Jakarta's growth.
Already our exports are more responsive to growth in Asia than
they are to changes 1n growth in Europe.
Our relationships must reflect the growing nature of our
economic ties to Asia. We have involved ourselves with the
OECD, with NATO, with the G-7 process. Those are t~e more
I
f
traditional organizations for industrial~zed nations. We need
to develop an architecture for our relatlons with what might
best be described as the new industrializing nations.
Meeting those demands requires the devel~p~ent of reg~onal
capital marxets and it requires more efflclent domestlc
financial systems. That will ensure• that finance
flows to
,
I
these areas and to the best projects. And that s why we re so
interested in liberalizing investment rules and the opening of
your financial markets to foreign firms. Their access to
capital and their expertise can be valuable aids to growth
throughout this region.
Oh, I know the feeling of protectionism by financial
institutions. But I can assure you that 1f you expand these
marxets, you will strengthen these countries and you will see
further progress.
We also see a crucial role for the Asian Development Bank in
meeting Asia's needs. That's what APEC is about. And that's
why I proposed bringing the finance ministers into a diSCUssion
on regional economic issues.
I want to let you know that we have invited APEC finance
ministers to meet informally in Hawaii on March 18th and 19th.
I'm looking forward to it as a way for us to begin talking with
one another about facing the challenges that lie ahead of us,
such as development, opening markets, making investments, and
sustaining growth. Seeing that not just the big companies
come, but try to encouragQ some of the medium size companies to
partiCipate, some of the entrepreneurs to come.
Let me give you an example of what's happening at home. YOU
read the headlines in the business section and it says 10,000
laid off by GM, 20,000 laid off by this company, 15,000 laid
otf by another company_ And you say we are really headed down
the tUbe, we're in real trouble.
What the headlines don't say, is that this little company hired
5 more welders. This one took 6 more computer workers. This
took 12 more case workers and this took a dozen more file
clerks. What you've seen dur1nq that period of the headlines
1n the business section talking about people laid off, we've
actually seen more than 2 million new jobs, net new jobs,
created in the United States of America. More jobs than in the
previous four years of our country. Those are not just
hamburger flipping jobs. A lot of those are good paying jobs
We've been able to adjust the infrastructure and make that ki~d
of a net gain.
What we want to do is work together in making connections
amongst ourselves. Building up these relationShips. I look at
it this way. It's best to build a relationship and to start
cooperating when you don't have critical problems. When our
economies are doing well. The Asian economies are doing well.
We don't have any crisis to deal with. When I pick up the
phone I want to be able to see a face on the other end of it.
To have that kind of a personal relationship. That's what
welre seeking.
During my discussions here and in Thailand, and in China, I
will be listening to my counterparts for their views on how
with these informal meeting we can share ideas. I want to make
a cooperative venture to make it that. I want to stress our
common interest, not 1n any country's bilateral agenda. Our
common interest is to sustain non-inflationary growth amongst
all of our people.
Now if you recall at the November meeting of the Leaders, it
was agreed that we should address the challenges of ensuring
that non~inflationary growth, of financing investment and
infrastructure development, and promoting capital market
development. In addition, they suggested we ought to talk
about the need to promote foreign investment, mobilize domestic
savings through developing financial markets, and examine the
issues of the environment and of poverty.
I must say I got an education by President suharto on some of
the things that you're dOing in the rain forest. Some of the
things that you're trying to correct and seeing that you
protect that environment. I never listened to so many
numbers. I finally decided they had a computer up there being
able to bring out as many details as you did in that program.
And that's encouraging.
We have agenda in the region other than economic. There is the
security dimension, of cOut$e. But our foreign poliey has
always been shaped by our values and ideals, in addition to our
economic and security interests. Americans, and their elected
representatives, won't put aside their hopes and ideals just to
make a buck.
President Clinton came to office with a strong commitment to
promoting democracy and human rights, to putting people first.
I know that some read this commitment with apprehension. We
are not trying to argue that our way 1s the only way, just that
democracy and market economies produce what people want. I
want to encourage changes, such as more openness, respect for
internationally recognized human rights, economic reform and
liberalization. They are the infrastructure of economic
auccess and political stability.
~et me close by reminding you that president Clinton's first
:rip out of the country after becoming President was to this
~e9ion.
And he made it clear that we are working for a New
~acific Community.
The United statea intends to b~ actively
~ngaged here as a partner, in a way that encourages economic
Jrowth, and political stability.
Thank you very much. I would be delighted to take a few
questions if you like. Looks like this crowd has all the
answers.
Thank you excellency. I think, having heard from you about
your statement 1s really encouraging us about our two countries
relations. I think a lot has to be done, economy, and what I
foresee that we still have a few things to settle. The first
thing that I foresee is this is no psychology for us, there is
the GSP problems that we are facing with united States. Even
the number is quite small according to us, but the psych~loqy
is fairly important things about our, for our two countrles
relations. Especially, I mean, for our business community
here.
Q:
I li~e to ask what your government is trying to do with GSP
because this is something that we have a deadline of February,
next month. Because this is very important for us, that is one
thing.
The second thing that r'd like to raise is after we deregulate
our financial ....... .
BENTSEN: NOW, let me interrupt just a minute. I'll take a two
part question, but please no six part questions.
The second part is you know you see that we have to
deregulate our financial sectors and we know that capital
market is playing a very important role in the future. But I
don't see any interest of the security business of the united
States coming here. Where a lot of companies from Europe and
Japan is here. What are the reasons because that also happened
in the past, that we have big companies in oil and gas where
the American business center here, but not in manufacturing.
How do you foresee, because we know that American manufacturing
company is more and more competitive. And that is something
that we have to work together in helping this manufacturing
sector also move in good size. I have some experience, because
we have some investment there in manufacturing and we know how
competitive we can be together. And that is I didn't know what
is the answer, what is the government role of the United States
to encourage the private sectors?
Also to look as important
as what I have heard from your statements today.
Q:
What can we do together and what kind of role your government
can do to encourage them to foresee the futures of our two
countries relations, thank you.
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obviously, in human rights. We are interested in
worker relations and we are seeing progress taking place in
Indo~esia o~ that.
We would hope for more in that regard. And
that s what s being evalued by the committee as the come to the
February 15th ~ate. We are looking forward to you submiSSion
on January 20 In that regard.
We understand too, that when we talk about workers' rights,
these are the kinds of things that Indonesia itself is
interested in. It's not just from the outside. You know
that's what you need and you realize that. And trying to build
up this economy and the relationship of its people.
So that's one that we agree on as far as trying to bring
about. And we both want to see further progress in that
reqard, I'm sure.
In so far as the next one, when you talk about investments
here. part of it is needing a high profile for Indonesia in
the United States. A better understanding of what is happening
here. That's one of the reasons I'm here. That's one of the
reasons you've seen two Congressional delegations within this
month. For further emphasis, a further focus insofar as this
part of the world, I think that will bring further interest by
American business. NOW when you qet to the very large
international companies who have relationships and investments
around the world, they are knowledgeable, but when you qet to
the middle size companies, the entrepreneurial type, the ones
I was referring to earlier, now that's what I want to see more
of. Hopefully, we can help in that regard. Thank you very
much.
/5
PRESS CONFEREN:E WITH 'l'REASU"RY sn:RETARY
umo
BENTSEN
Kintamani Restaurant - Hotel BOrobudur International
Jakarta, Indonesia
January 17, 1994
2:00 p.m. local time
(Unofficial transcript of the Secretary's opening statement and
questions and answers:)
BENtSEN: It certainly won't be a long statement because you 've
heard my speech and I won't be repeating that or try to avoid
it. I had a very productive meeting with President Soeharto
this rrorning. we talked about a further developing
relationship between our countries, about how President Clinton
was so pleased to see the leadership passed on for the APEX:
countries to President Soeharto as the Chairman for this year.
we discussed again the Finance Ministers Meeting to be held on
March the 18th and the 19th in Hawaii and getting his
suggestions and his counsel and advice as to what that agenda
should be, what we can do in furthering trade, openinq up
markets am:mqst our countries. With that, let me open it up to
you folks and let you ask what questions you might have in mind.
0: can we take it for granted that President Clinton will cane
here in November, regardless of any questions over human rights
or labor rights here in Indonesia?
BENTSEN: Well, I would anticipate President Clinton is going
to be here. I 'm optimistic insofar as progress being nade on
human rights and workers' relationships. I discussed that
during the speech. Obviously, it S a matter of concern to us
and deep interest that progress be made. It is being made.
And ~ e~ \'l't)te of it to be done. '!'he question of GSP has
not l:een resolved. That corrmittee will be meeting on February
15 to make that decision. we're looking forward to ~'e
submission of the report from Indonesia on January the 20th.
we obviously have not seen that at this point.
I
I have two questions. one is that I heard that in the
meeting with President Soeharto you reques~ed mere openness of
foreign stocK shares in the joint ~enture law of Indonesia.
can I gat a comment on that? What is your intention? And the
second question is now there is a very big project involving
Indonesia and the United States about the development of
natural gas in Natuna Island. ~t is your op1nion? Did you
discuss this mat tar with the Indonesian side?
Q:
In meeting with Minister Mohammed and with President
Soeharto, ~ discussed the situation of opening up financial
markets and talking about national treatment, trying to
encourage that. we think that that'll bring rrcre investment
here, lOOt! fina.ne 1n9 here. 'I'hat 's important for this country
in developing its infrastructure. As far as the investment
laws, you ''Ie made some advances. There are more things that
can be done on the questions of divestiture and that type of
BENTSEN:
/u
thinq. On the question to do with the development of other
islands, outer islands, is that what you asked? (clarification
from aside).
I'm optimistic that in that situation where we have some very
competitive bids that that's going to be one that the American
investment and interest will be - weill win that one.
Q:
Now that we have the GATT agreement -
Where are yoU? (Laughter)
voice from on high caminq in here.
BENrSEN:
I thought there was a
NOw that the world has concluded the GAT!' negotiations, 1s
it still relevant to have APEC?
0:
Absolutely not. NO, I don't think so at all. I
think that What APEX: can do insofar as multilateral developnent
in this area is the exchange of ideas are not in any rigid
coordinated approach, but a contribution of What's working for
one country and not working for arx>ther and how those things
can be improved. Insofar as G.\'I'T, that is not the end of trade
negotiations. It will continue. It is an ongoing process.
You have reached a plateau and then you Will further negotiate
aIrJ:)ngst all of the nations of GAT!'. That will continue to
proceed.
BENl'SEN:
0: I just wender whether you also point this out in your
statement today after your meeting with the president of
Indonesia in Which you said president Clinton came to office
with a strong commitment to promoting human rights and Whether
this is conditional, whether you have conditiOns for tJ.s.
commitment to Indonesia.
BENrSEN:
Well, in discussing it with Minister MOhammed and
with President Soeharto, once aqaln we emphasized president
Clinton's interest in human rights, our government's interest
in hwnan rights, and labor relations. There's no question
about that Indonesia itself wants to make headway in thoae
areas and what they're doing. They're making substantial
proqress. we ho}.:8 there's more and we think there shoUld be
more. You understand insofar as workers' rights, sane of those
things being done are things that you feel is irrrportant for the
relationship of your workers within this coWltry. SO it is a
fUlfillment of an objec:ti ve t:.hat ';.,'9' re interested in and that
you're interested in.
Q: Mr. Secretary, I have a philosophical. question from your
speech. Secretary Christopher recently gave a speech in which
he said "all diplomacy is economics-. YoU just gave a speech
in which you emphasized that basically all economics today is
foreign policy. I'm interested in this overlap that is quite
apparent between the secretary of state these days and the
Secretary of the Treasury. How do you see your jobs? I mean
11-
they're obviously different. I don't mean this facetiously.
aut wit."l this overlap, how do you distinguish between the t\rt'07
WOUld the real secretary of State or the real Secretary of the
Treasury, please stand up? How have they have converged and
how do you separate them?
I think ·..mat you see is something that's
complementary, where they playoff each other and its
cOJtC)atible objective that we are trying to bring about. So
that is encouraging as far as I am concerr.ed. Let me give you
another example, insofar as the trade negotiations, the USTR,
econanic. I strongly support the usm, but that doesn't keep
us from helping and trying to assist in any we could on NAFTA,
or being very much a part of the GATT negotiations. Mickey
Kantor remained in constant comnunication with me. We're in
good communications, Secretary Christopher and I are. I think
that, hopefully, we're helpful to each other.
BENl'SEN:
You mentioned that you see that there is an
the Indonesian economy. How do you measure the
improvement and what yardstick are you using in
value? My understanding is the value cannot be
value of this improvement. How do you quantify
concern to human rights and so on?
Q:
improvement in
value of
measuring the
quantified, the
this? With
BENTSEN: I think that they're compatible, development of human
r 19hts and labor relations. You I ve seen associations that have
been created apart from the major la.t:xlr union. That kind of
progress is being made. Insofar as human rights, I think also
as you ~evelop your economy and you develop mre middle-1nc::cme
tolks, that human rights are very campatible with that and
further dfil1l)Ctatization with that. 'ttlose things complenJmt
each other.
0: Sir, can you tell me whether the issue of the Fair Trade in
Financial services Act with reference to Indonesia has been
discussed here and whether Indonesia has any cause for concern
in this regard?
BENrSEN: We did not ~iscuss the Financial services Act in
itself. We did discusa further openinq up of financial
services and continuing neqotiations on that. 'Ihat type of
thin;, sort ot thing, W8 '11 be exchanqin; ideas on in the
Finance Ministers Meetings.
Q: TWo days ago Malaysia's financial minister, Dato AnWar
Ibrahim, was here and he said that Malaysia was making up its
mind about AilS: since Soeharto is gOing to be the chairman of
~"le APEC summit meeting here in Jakarta. NOw, Iid like to know
about the American stance on EAEC? Thank you.
BENTSEN:
Q:
The Amar iean stance on Malaysia _
on EAEC, the East Asia Economic caucus.
/8
BENTSEN: We vwould hope that all these countries w:luld attend.
I think it's iIl'(:)Ortant to them. I think it r s helpful to them.
I think abstention Will not help them in that process. I think
there's much to be learned and gained by this kind of an
exchange and interchange.
I just want to make some clarification of what you said
just now. Did you say that the Inoonesian government told you
that apart from the major labor union, the official one, the
government will allow one ITI:)re or rrcre than one rrcre, another
labor union? Thank you.
Q:
BENI'SEN: It's my understanding that some associations have
been made of laborers. I do not know beyond that detail.
can you tell me about the APEC Finance Ministers meeting,
when and where and what they will talk about?
Q:
BENTSEN: The Finance Ministers Meetings will start on April
18th in Hawaii. It'll start with a dinner that I will host for
those in attendance. I would anticipate we'd have a full day
on saturday. I'll host another luncheon on saturday and
hopefully, we would have completed our work by saturday night.
I vwould think we would not have any kind of rigid, highly
structured meeting. I want it to be informal. I don't want to
have to listen to a whole bunch of prepared speeches. I want
an exchanqe of ideas. I give enough prepared speeches myself.
HOW can you say that wa have improwa in hWMn rights
problem because there was a very big strike in the labor
movement? And then we have the handicap to apply, the minimum
wage standard, that was constructed by the government.
Q:
BENTSEN: I was given the report on what the commanding general
had said insofar as the actions of the army, involving labor
and strikes. I was told a set of regulations had been drafted
in that reqard. '!hose are steps in the right direction. What
we're look1nq toward 1s the carrying out and the further
commitment of those thinqs that we understand have happened
thus far. Thank you very much.
(end transcript)
/~
DEPARTMENT
OF
THE
TREASURY
. NEW S
fIRI ~ASURY ~r~.)·
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..............................
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
Transcripts
of
Secretary Bentsen's
Public Speaking Engagements
Bangkok, Thailand
1anuary 18, 1994
Subject:
Transcript of Remarks by Treasury Secretary Lloyd
Bentsen at a luncheon nosted by the Thai Bankers'
Association, Federation of Thai Industria. and Board of
Trade, Bangkok, Thailand, January 18, 1994
Be9in transcript.
Mr. Chairman, thank you very much for that most generous
introduction.
This is my fourth visit to Bangkok. Each time I come away
impressed at how much this city has grown, how much you've
improved the standard of livinq ot your people, how much you've
increased your productivity. I must tall you that that traffic,
though, coming from the airport, reminds me a little bit of the
gridlock in Washinqton before President Clinton was elected.
But I am impressed with the vibrancy.of this economy.
I look at
the power ot your economy and it is formidable. Living standards
are risinq so rapidly. The 9rowth rate in Thailand for the past
few years has led the entire region. And that's a re9ion of
growth. So that's a re~arkable achievement that has taken place.
It has translated into benefits for Thai citizens. Education
levels are comin9 up. Averaqe income more than doubled over the
last eight years. That's quite a record. They tell me that the
averaqe income in Ban9kok is approachinq $5,000.
Thailand has come so far and 80 fast because its leaders have
pursued policies that are conducive to qrowth, with fairly stable
prices. It's amazinq what qood economic policy can do. My
economists keep tel11nq me that.
Thailand is lookinq to the future. I had a chance this morning
to visit the stock exchanqe. That's quite an operation. I'm not
above braqqing about it •• I want to tell you that we're
delighted that we helped this stock exchange computerize~ and
that our Securities and Exchanqe Commission cooperated w~th you
in ths creation of a similar body here.
I think that the move to computerized tradinq demonstrates why
Bangkok is such a draw tor the tinancial industry. Now I know a
little bit about this busin.ss. I spent 16 year. in the private
sector, very deeply involved in this sector ot our economy.
I want to talk to you today about that aspect ot our economy. In
particular, I want to discuss how the United States expects to
deal with the untinished financial services aqanda insotar as the
Uruquay Round (is concerned).
But tirst, I want to talk briefly about how and why the Clinton
Administration has put such an emphasis on global economic
associations. The international economy is central to our
economic prospects and to our domestic economy.
You can see from the president'. recent summit in MoscoW,
economic policy is an 1ncreasinqly important part ot foreign
policy.
Now, our international economic agenda has several items on it.
But the ones most applicable to thia reqion -- promotinq growth,
openinq markets, expanding trade -- these are the elements that
most lixely do best in supportinq the two goals of our foreign
policy, and that's creating jobs for our citizens through trade,
and supportinq stability, harmony and democracy throuqhout the
world.
want to detail briefly ho~ we set the stage for our
international economic agenda. We did it by attackinq our own
problems hera at home -- back in the Unite4 states -- taking them
on first. I ean recall goinq to meetings in the past where
they'd say, you know, "Oon't tell us what to do about our
economies 'til you qat your own house in order." We took on the
deficit and the budqet with a commitment to a reduction over the
next tive year. ot $500 billion. That releases an enormous
amount ot money tor capital markets. And it had an impact far
outside of our borders. It used to be that we were at a
competitive disadvantage on interest ratas. We saw interest
rates for some ot our competitors at one percent, and then out
there at some point they'd have some warrants with a conversion
factor on a stock that was 100 to 1 times earnings. We saw the
competition trom the Bundesbank and the interest rates there.
But now we have the lowest interest rates our country has seen in
two decades. And we see inflation un4er control.
I
In the past year alone we've create4 over two million jobs. Oh,
we read in the ausinesa Section, "IBM haa laid. ott lO 000'"
"General Motors has laid off 20,000." But What does ~ot m~ka the
headlines is the outsourcinqthat has taken place to amall
business. What doesn't make the headlines is this little company
added five welders and this one added six computer workers and
this ona added lS tile clerks, that type of thinq. We're no
longer at a competitive disadvantage on those. Not anymore .
.
What we're seaing today is an economy that is growing again and
this year thinqs look good tor steady growth and low intlation.
We're outperforming the economies of the other G-7 countries.
And we did it with sound macroeconomic poliCies. And what we're
saaing today, I think, is a sustaininq of that growth with open,
competitive trade poliCies an~ markets. tet me give you an
example ot that -- what happened to our automobile industry. To
see foreign competitors coming in and producing a better car.
Producing it at a lower cost. Not true anymore. Now the quality
of our automobiles is world competitive. And the cost is world
competitive. And you see, we're restoring our market share in
those thinqs. Progress is made by competing, not retreating.
Asia and the Pacific are central to our economic policy. Let me
touch on two areas with respect to the region before I discuss
the area of financial services.
On the question of Vietnam, the President has taken two steps to
recoqnize the proqress we have made toward meetinq our objective
'of the fullest possible account1nq on our MIAs and our POWs. The
first step was the decision in September to restore Vietnam's
access to international financial institutions. The second was
to relax the embar90 to allow U.S. firms to bid on projects that
would be funde~ by those institutions.
I want to say that I am encouraged by the statements of Senator
Kerry and ~ohnston. They have recommended that we move forward
with endinq the embarqo, based on proqress we have seen thus far.
As has been the case with other issues, a strategy of engaqement
with Vietnam may be the most effective way to promote our goal of
accountinq for our POWs and MIAs.
Now the second area that I want to mention is the Asia Pacific
Economic Cooperation orqanization -- APEC. I tell you, we have
so many acronyms in Washinqton. I'm going to see if we can't qet
a dictionary published on just acronyms.
One or the reasons for my trip to this reqion is to discuss APEC.
I announced yesterQay that I will be hosting in Hawaii on March
the 18th an~ 19th a meetinq with my counterparts, financial
ministers throughout this area, and we'll be discussinq with them
what they think ouqht to be on that aqenda, what we can do for
economic cooperation, tor growth throuqhout this area with a
minimum ot inflation. A common interest. I believe we should
also be discussinq the financinq ot investment ana infrastructure
investment, and promoting capital market development tor all of
our nations.
Question: Mr. Secretary, you talked earlier in your speech about
the importance of exports for the U.S. economy to revive it and
certainly tor Thailand exports have been the drivinq force behind
the economy.
In Thailand recently they have talked about Some
changes in the value of the baht which have all the central
bankers saying that that is ~bsurd. But I curious about tha
value of the U.S. dollar versus the Japanese yen in terms of
stimulating exports because Japan is certainly an important
tradinq partner to Thailand as well. So are you happy with the
value of the dollar versus the yen at the present. Thank You.
Ans~er:
Well, I've been Secretary of the Treasury long enough
not to answer a question like that. If I did som.bo~y would be
running tor the wire service. I have no comment on the currency
exchange. Lika someone was asking the other day to comment on
what was going to happen on long-term interest rates in the
United States and I said I can't comment on that one either but I
can tell you this, that I refinancad the mortgage on my home and
I did not take a thirty-year mortgaqe.
Question: Peter Mytri Ungphaxorn from the Bangkok Post. Could
you explain a little bit more about what your vision for the APEC
finance ministers meeting is. Some people suqgested that it
might be like G-7 finance ministers. Is that possible?
Answer: I don't look at it as being that tightly constructed.
What I want to sea, in hosting the finance ministers, is a rather
relaxed agenda. I don't want to listen to too many prepared
speeches. I've given too many ot those myselt. But I want a
tree exchange ot ideas: what works in this part, what doesn't
work over here and how we can develop more trade amonq ourselves.
Let me give you an example of that one. Thera are other
countries ot the world that have a higher per capita income than
we do. But we have the highest standard ot living, of any major
industrial country in tha world. And that is because of
competition. And that is because or the prices to our consumers
and the quality ot products that result there trom. But I think
we all benefit by increased trade. Let me give you another
example. The country ot Columbia, and Venezuela, I don't
rem.~.r the exact number or flights in all, but it was somethinq
like three or tour flights a week between the two capitals. And
now they brought together an improvement in the trade
relationship and a lowering of the tariffs between the two
countries and they're having several flights a day between those
two capitals. That Kind or an exchange, that's happeninq around
the.world today, and I think we ought to promote more of that.
It lmproves the standard of living of the people on all sides
and I think it adds to stability of qovernments. But another'
question. Yes sir?
Question: Thank you. Mark Timm, Knight-Ridder Financial News.
Mr. Bentsen, I'm wondering if you can qiva us any insiqhts on hoW
the U.S.-Japanese trade framework talks will have an impact on
this ragion and perhaps qive us your thouqhts on how well those
talks ara progressinq.
Now that, ot course, brings me to financial services. As many
countries in this reqion have demonstrated, a well-developed,
efficient financial services sector is critical to economic
progress. Let me offer a parallel to illustrate why we believe
financial services makes a very major contribution to economic
growth. I think that sector is a little bit like the nervous
system. It sends signals to the industrial muscle as to where
those resources ought to go, where they'll have the most
erfective 9rowth, the highest return. The tinancial services
sector in the United states is more than six percent of our GOP,
a third ot a trillion dollars. That's more than a thousand
dollars for avery citizen in the United states, and our financial
services is in a substantial surplus.
The service sector a8 a whole is a major element of our economy.
Two thirds of our output is in services. Service exports are a
major counterbalance to our imports or manufactured products.
Let me give you an example. In 1992, we had a serv1ces surplus
of $61 billion and a merchandise trade deficit of $96 billion.
We covered more than two thirds of our merchandise trade deficit
with our services surplus. our services are now a drivinq force
in our economy. Since the middle of the last decade, half the
increase in income has been due to those exports. One job in
every eiqht in the United States is attributable to exports. And
those jobs pay substantially higher wages and salaries than the
other jobs in our economy.
Now look at a few fi;ures to see the impact of the financial
services here in Banqkok, seventh largest element in ths Thai
economy and qrowinq rapidly. The last year for which I saw
figures had commercial bank assets almost at Thailand's GOP
level.
Bank profits are risinq, partly because of the financial
deragulation measures undertaken by the Government of Thailand in
recent years. And that includes liDeralizinq interest rate
controls, relaxinq foreign exchanqe controls and reducinq
controls on the asset manaqement of banks.
Hera in Thailand the participation in the economy of
international financial firms has meant an influx ot capital, and
that capital has helped build factories and create jobs.
What you've also saen is more equity capital cominq in. You're
not seeinq a repetition ot what happened in Latin America years
8go, with such a reliance on debt as took place at that time.
And with the support ot the Central Bank, Thai banks are moving
into the international market -- I was sittihq hera talking to my
colleaques and some ot them were telling me about ~hat they're
beginning to do throuqh the United States, the services there.
They're 4iscoverinq that an efficient and open financial services
industry helps inteqrate both the regional and the global
economy. Now from our perspective, that contributes to our goal
to sustain growth, which 1n turn both creates jobs and enhances
stability.
The united State. has one of the most open financial markets in
the world. We believe that qreater market access in financial
services is absolutely critical to assisting in creatinq economic
growth tor all nations. One of the Uruquay Round's great
benefits was to take an ovarall qlobal approach to the
liberalization of trade in services. I want to recognize the
fact that Thailand made a very effective contribution in that
Oruquay Round and we're appreciative of that.
Those ot you who followed the negotiations know what a high
priority the United states placed on the area ot services in the
financial field. But WQ were left with an unt1nishad aqenda.
And frankly I'm disappointed Wa did not ••• more countries
willinq to liberalize.
Th. agreement we reached last month in Geneva allows countries to
review their commitments in ~h. six months after this agreement
enters into torce. Now durinq that period, our exemption from
the Most-Favored-Nation principle -- that is, the right to
discriminate between countries and amonq countries -- will be
suspended in this sector.
We have a two-year window to neqotiate an agreement in tinancial
services which can be incorporated in GATT.
I want to say today that the United states is eaqer to set up a
network ot bilateral tinancial policy talks with our major
tradinq partners in this area.
Thera are three principles that are going to quid. our
neqotiations.
First, we want to open up markets, not close ours. We will look
tor agreements that ofter reasonable market access and national
treatment. We are prepared to ;uarantee full market access and
national treatment in the future to countries that qive our firms
satistactory access and national treatment.
Second, we will negotiate constructively. We won't taka any step
during thoae negotiations and discussions that harms the existinq
operation of firma already in our markets. And b.yond that, we
will not unreasonably refuse access to nations that aren't
already in United State a markets.
And third, our objeotive remains a multilateral MFN-based
agreement that treats all nation. alike. Howev~r, wa cannot
accept a situation in Which other nations retain the right to
discriminate against our firms while they are permitted to expand
into our marxet.
So we are willin; to work with nations which want to liberalize.
We will approach our neqotiations in a reasonable and a pragmatic
manner. We understand tha~ many nations consider their financial
system to ca an integral part of their development strategy, and
that it must remain larqely in domestic hands. We understand
that there can be legitimate concerns about ovar-banking in small
Qconomies. We accept that greater access by foreign firms should
not unduly disrupt domestic markets.
We live in the real world. We recoqnize that others have
concerns aDout our views. We are prepared to accommodate
leqitimata concerns and f1nancial services negotiations, just as
we did in the North American Free Trade Agreement -- in NAFTA.
Liberalization is a process. It doesn't happen just by tlippinq
a switch. We are prepared to consider transitional arrangements
that provide breathing room for domestic firms to let them adjust
to greater competition.
I strongly believe that financial market integration and
liberalization is in our mutual interest. The increase in
capital flows in the 1960s, when capital began flowing in
siqnificant amounts to developing nations, has been a major
contributor to the growth rates we have seen in East Asia.
Opening markets and lowering barriers is a crucial element in
sustainea growth ra~as.
I can't help but recall that aftar World War II, when the
economies of many countries were devaatated and we thought we had
to do what we could to increase trade to help them restore the1r
economies and create jObs, we substantially lowered the tariffs
in the United States. It was a bit like having a golf match
where you have someone who is just learning how to play golf and
you give him a big handicap. The problem we have in the United
states 1s that some ot these folks have become awfully good
golfers in the meantime, and we haven't done what we should do
and lower that handicap.
With that, let me say that I was lookinq at some Thai proverbs
the other day. I tound one that I thought was perfectly suited
for closing a speech. And I won't try to say it in Thai, because
I don't want to do that to your beautiful language. But the
proverb goes somethinq like this: "Speech is silver; silence is
golden."
Thank you vary much.
I'd like to open it up to questions. I might have a fev
groundrules it I COUld. Whomsoever wants to ask a question, it
you'd take a Mike and speak in a loud, clear voice, qive us your
name and your association if you like, and please, no six-part
questions. And tor the moment, I'm the only one that's supposed
to be making a speech.
Facilitator: Yes, we do have all the microphones on the floor.
Would anyone like to ask questions? Yes, pleasa?
Answer: Once again, I think that improvement in trade spills
over for allot us to some degree. We havQ not made significant
satisfactory progress yet in the framework agreements with Japan:
Much remains to be done. That's more of an answer than you
expected, wasn't it? Any other question?
Question: My nama is Owart Phromratanapongsa trom TV Channel 3
and radio program. I have to organize radio proqram about stock
market almost every day. I would just like your comment on stock
markets in Asia, especially this time why they plunge so much.
(Laughter)
Answer:
Thank you very much, it's great to be here.
(Laughter and applause)
End transcript.
Subject:
Transcript ot the on-tha-recor~ press conrer~nce by
Treasury Secretary Lloyd Bentsen at the Regent
Hotel, Bang~oK, Thailand, January lB, 1994 (l700
hrs.)
following is text ot Secratary Bentsen's press conference, hosted
Forei~l Correspon~en~s Club of Thailand.
by
begin transcript.
Lee Miller, Moderator (from Foreign Correspondents Club ot
Thailand):
ar~ernoon ladle. and qentlamen, welcome to another ot our
teatured press conterences with d19nitaries trom around the world
for the foreign correspondents club or thailan~. TOday we have
the secra~ary of the Treaaury of tho united states
America,
Mr. Lloyd Bentsen. Mr. Bentsen hag baan Secretary of the
Treasury tor about a year now. Prior to that he was a nnit~d
states Senator trom Texas for mare than twenty years. He became
chairman ot the Senate r1nance committee in 1987. In 1988 ho w~s
the DQmocratio Party nominee for Vice-President and he is tamous
durinq that campaign tor tellinq then VioQ-rresident Dan Quayle
that he was no Jack Xennedy. Mr. Sentsen received a law daqree
tram the UnivQraity of Texas School ot Law and I think we all
have his b10qraphy hare. Wh~t he is alao noteworthy tor as a
qovernmen~ otticial is that he ha~ a long ana outgtandinq career
1n the privata sector whioh made him if not the obvious ChOice,
certainlY a tine choice tor Secretary ot the Treasury which is
Goo~
0'
1
why he was confirmed so easily as I recall. I think Mr. Bentsen
has an openin~ address or some opening remarks and then we will
turn the floor over to some questions.
Secretary Bentsen:
that comment.
Thank you very much.
Wish I had copyrighted
Well I am glad to be here again and it is always amazing ~nd
impressive to see how Thailand has qrown from the last trlp. We
have had a relatively short stay hara but a most productive time.
In the meeting with tha Prime Minister and with the Finance
Minister and the Governor ot the Central Bank, we covered quite a
number of points.
with the Prima Minister I was delighted to have him tell me that
at the meeting in Morocco when they do 80me ot the wrap-up of
those things that are not quite finished on the Uruquay Round,
that the government ot Thailand will increase and improve its
otter on financial services. That is important and that is
helpful because this is one of the major financial areas of this
part of the world. The United states has a major stake in the
prosperity and continued growth ot Thailand; as they in turn,
have in our country. We further agreed that we would continue
negotiations in the context ot GATT on financial services. In
addition to that we agreed that we would expedite the
negotiations on the tax treaty that has been underway for almost
twenty years. It is certainly time that we rev it up (as heard),
so they will be coming to Washington on 'ebruary the seventh to
hopefully bring that to a successtul conclusion which in turn
will help both countries settle soma ot the differences in the
way taxes are treated hera and in our country and be a further
benefit to American business operating here. And finally we have
agreed that-it is important that we do soma additional things in
the way of striking deals that will help both countries in this
fastest growing part of the world. I would state that in
addition to that and a final point that the Treasury Department
has had re~ra •• ntation in the Tokyo office tor quite soma time
but I am qoing home to look at my budqet and see it we can't do
some additional representation ot Treasury in this part of the
World. With that I would like to opan up to any questions you
might have.
The one ground rule hera is to please state your name and your
affiliation. So if we have any questions? Please use the
microphone so everyone can hear you.
Tom Freidman (The New York Times): Mr. Secretary during your
stay in Indonesia and here you have referred to the tact that we
are very close on establi~hing an end of the embargo with
Vietnam. And I wondered it you could taka us through, basically,
elaborate on that a little bit. Where ara we exactly? What will
need to be done from now until that point when we gat there? HoW
i8 this thing developing?
2
Secretary Bentsen: Well, I think it is progressinq wall. What we
have aaan, wa'va seen the President of the united states take the
additional step of helping Vietnam qualify for loans in the
international financial institutions and then take the second
step that says that American business can get in there and
compete for loans that are made to Vietnam cominq out of those
institutions. Since that time we have had delegations going to
Vietnam with encouraginq reports back about the cooperation of
the government and the aseistance they have given in the search
for MIAS and pows so the proqress 1s there and I am optimistic
that we will finally qet that behind us.
Question (unidentified reporter): If I may ask a question and it
is sort of a follow-up to something you said at lunch today. In
general -- not to oe specific -- are you generally happy with
where the currency values around the world are? In general.
Secretary Bentsen: I really learned not to comment on that.
Thank you. Yes, Clay?
Clay Chandler (The Washinqton Post): I wonder if you can tell us
a little bit more about what you think still has to happen betore
there can be a break-through or announcement on the Vietnam
issue? Where do you see sort ot the major remaininq obstacles to
oe? Could you elaborate a little on that?
Secretary Bentsen: I have not been that involved in it. All I
know is that I'm told that we are making some progress and that
it is quite encouraqinq. I'm optimistic as far as qettinq it
lifted.
Loh Hui Yin (Business Times, Singapore): Can you tell us more
about the Treasury's plans for this part of the world? Any
ott ice you are planninq to open?
Secretary Bentsen: Not till I qo back and look at my budget and
decide what I can do in that regard. But I do think it is
important that we add Treasury representation, additional
representation to that we already have in Tokyo. And more in
this part of the World. But I have not made a decision on that.
Thanonq Khantonq (The Nation): Mr. Secretary, durin; your talks
with the Prime Ministar did you raise any specific points about
financial liberalization that you would like Thailand to under
taka.
Secretary Bentsen: Well I discussed with him the Chrysler
situation actually, he spoke up on that, tha finance minister
did I believe in detail to say that question concerning the tax
considerations on Chrysler had been resolved satisfactorily.
John Schurb (freelance journalist): 00 you have any particular
expectations for the upcoming APEC meeting with the finance
ministers ot the region?
J
secretary Bentsen: That was one ot the things I was doing here,
was talking to the Prima Minister and the Finance Minister as to
what they thouqht should be on the aqenda and in the way of what
!urther cooperation should be accomplished in tryinq to bring
about mutual qrowth and trying to keep inflation down, what works
in one country and what doesn't work in another. And I did the
same thing in Indonesia in getting their ideas as to what should
be on the aqenda. I want it to be an informal meetinq. I don't
want it to be hiqhly structured. And, with all due deference to
the press, I hope we don't even have a formal communique. The
problem with a formal oommunique is that you spend halt the time
and most of tha night trying to detina (as heard) what this one
word means or that one. I want it to ba somethinq where you qet
a good exchange of ideas. And I don't look on it as something
where wa try to develop some coordinatad effort insofar as what's
dona by all of the •• countries acting together, because there is
a great deal ot variance in the economies ot each of these
countries.
.
Mark Timm (Kniqht Ridder) Mr. Secretary, I know that there has
been some talk about the u.s. government maybe bringing up some
short term interest rates. In December the retail index actually
went down, so inflation seems to be certainly under control. In
that context, what do you think about interest rates at this
staqe?
secretary Bantsen: Let me tall you what the underlyinq economic
thinqa are and that really should have substantial influence on
th ••• rates. We are lookinq at inflation beinq wall contained.
We're looking at labor unit costs (ramaininq) quite constant.
We're looking at a cushion of labor still available. We're
lookinq at an increase in productivity and a substantial
investment in equipment on tha part ot business. Those things
keep, I think, at tha present time, are not puttinq any pressure
on interest rates. And that's about as close as you are going to
qet me to say anything about them.
Reporter: Thank you.
Mark Memmott (USA Today): This morninq you met with bankers from
around Asia. I wonder if you could tall us what issues they
brought to your attantion and what, it any, me.saqe you brouqht
to them?
secretary Bentsen: What you are .esing all around the world is a
co~cern about toreign banks cominq in and what they mean.
In
th~s instance, I was telling them that they are goi n 9 to need
~dditional capital.
It is important to them. And it is also
~mportant that they not do it just by borrowinq, but that they
qet more equity monay in here. And, in turn, American business
and toreign business that wanta to coma in here haa been
utilizing otten major financial institutions back in their own
country. And having 80me o! that available to them will
encourage %ore capital coming into this country, will help it
4
qrow, will brinq about more trade, and will strengthen their
financial systam; that they will benefit by it. I think that's
one ot the reasons that you are seeinq the Prime Minister telling
me that in Morocco -- and the Finance Minister tellinq me -- that
they are going to strengthen their (garbled) financial services.
That's encouraqinq.
Bill Murray (AP Dow Jones): Can you elaborate on that, did he
qive you any indication how they are going to strenqthan their
ofter?
secretary Bentsen: He did not give me the datails. He just
said, 'we'll strengthen our offer.' And, they were helpful to us
on tne closinq days ot the GATT. And (garbled) but we're
appreciative ot that, whatever it may be.
Peter Mytri Unqphaxorn (Banqkok Post): Several weeks ago when
the United States was talxinq about the GATT talks and financial
services liberalization, Southeast Asian countries were
identified as a target group for liberalization; that you were
objectinq to protectionism hara. Is that one of the reasons why
you've visited Indonesia and Thailand on this trip?
secretary Bentsen: It is not just Indonesia and Thailand. It is
just a limitation ot time, not being able to make more of the
countries. But I went to theBe two countries in particular
because ot their expanding growth and particularly Bangkok,
looking at its stock exchange which has certainly been modernized
and computerized. I am de11qhte4 that we were part -- our
country had a part -- in helping them, insotar as the
computerization, insofar as settinq up their own SEC, that ours
came to counsel with them in that regard. And so those are
things that highlighted the importance ot this area, and made me
want to come here. It has been quite productive.
John Schurb (freelance): What are your expectations on your next
stop, Beijing, and your discussions with the Chinese government?
Secretary Bentsen: Well, I will be talking about human rights,
about labor relations, and of course I will talkinq about the
economy and what we can do, the ever expanding surplus with us. I
am delighted to see that the concerns we had over textiles have
been resolved, betore I got there. That is a step forward. That
is helptul to us. But there are other areas where we think their
markets should be opened up more, and obviously financial
services is one ot those, and trying to encourage that. We see a
very fast expanding economy developing in China and it is going
to be more and mora important insofar as the economies around the
world. And we certainly want to have a relationship that is
productive for both ot us in that regard. And to the extent that
we can qet them to further open up those marxets to our products,
I think that is an imperative. We will be pushing vary hard on
that one.
5
Jim Gerstenzanq (Los Angeles Time&): (garbled) I realize that it
has Dean quite a while that the embargo has bean in etfect with
Vietnam, but, given their human rights racord, and the various
other problems, what is the rush?
secretary Bentsen: Well, it has baen going on about twenty years
now. Some of us older fellows think you ought to end theae
things. Get them done. And get it behind us. I think we can.
W.'va s ••n quite a bit of cooperation coming out of Vietnam in
that regard.
Pater Mytri Unqphakorn (Bangkok Post): It you don't mind me
asking another on a bilateral issue. You talked about hoping for
the tax treaty to be concluded. I understand one of the major
sticking points is your (garbled) in which Board of Investment
privileges would be wiped out, under the double taxation
agreement. Are you willing, were you able to offer to Mr. Chuan
or Mr. Tarrin the possibility that Board at Investment privileges
would be retained with the knowledqe . . .
secretary Bentsen: We did not negotiate this afternoon
concerning that. We agreed that we wanted to make our best
efforts on Doth sides to finally qet this resolved attar twenty
years. And that, hopefully, will be done as we begin
negotiations on FeDruary 7.
Thank you very much.
End transcript.
DEPARTMENT
OF
THE
TREASURY (.~·······~.<~i
~~-'b
'<'~'t-
TREASURY
NEW S
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
Transcript
of
Secretary Bentsen's
Press Conference
Beijing
January 19, 1994
1. LLOYD dENTSEN, U.~. S~CkETARY OF THE TREASURY, GAVE
AN ON-TH~-RECO~D P~E~S aRltFIN~ ON JANUARY 19, 1994,
THE FIRST DAY OF HIS OFFICIAL VISIT TO BEIJING. THE
PRESS BRIEf LNG W~S ATTEND~D af AMERICAN AND SOME THIROCOUNTRY JOURNALISTS AND wAS HELD AT THE CHINA WORLD
HOTel.
(B€GIN T~A~SC~I?T)
seCRETARY bENT$E~: ~U~D AFT5~~OON. I ~~T THIS
AFT~RNOO~ ,~ITh PK~MIER LI P~~G.
I AL~O ~~T ~ITH MY
Cou lit T ERPART, THE f rNA NC:; Mr 'H S T ~ R, MR. L I U Z H0 NGL I •
I
THINK THESE ~~~E ~U~$TA~T:V~ ~e~TINGS ~NO I ~ELI~VE
ALSO THE JiGINNI~G OF A V~~Y USEFUL DIALOGUE WHILE
we'~E HERE.
IT'S ~cALLY TIM~ TO ~E-:NGAGE CHINA ON
SCONO~IC ISSUES.
~~ ~~E~ TO HELP CHINA REFORM.
~E
NE~D A F~~UM 10 ADDR~S~ O~~ dILAT5~.L CONCE~~~.
THAT'S
~HY PReSI~ENT CLINTON AS~eD ME TO CC~~ TO CHINA.
1 HAVE THREE OiJ~CTIVES 0~ TriIS TRIP.
fIRST, I AM H~~~ ~O PUWS~~, OF COURS~, OUR ECCNOMIC
INTEREST~ IN CHr~A.
:T'5 IN OU~ I~TE~~ST ANO IT'S IN
CHINA'S INTERe~T TO aPf~ TH~I~ ~ARKETS. T~E 5ENEFITS
OF TRA~E AND I~~~STM~NT CAN'T HZL~ CHI~A UNLESS CHINA
LETS IT HAPP~N.
"
AND SECOND, I ~ANT TO ~EMO~STRAT~ OUR SUPPORT FOR
ECONO~IC ~EFO~~S IN CHINA.
ASIA IS THE FASTEST GROWING
tLE~ENT I~ TH~ GlO~AL ~CUNO~Y.
AND THAT MAKES A
SUCCESS Of CHINA'S TRA~$FORMATICN TO A ~ARKET ECONO~Y
ALL pHE ~OR€ IMPO~TA~T.
AND T~IRO, I'M MAKI~G IT CLEAR THAT PROGRESS ON HUMAN
RI~HTS IS aASIC TO OUR R~LATIO~3HI~.
I ~ILL SAY THAT
THERE HAS dEEN ~~OG~~S~, ~UT SO FA~ IT HAS~'T GONE FAR
ENOUGH.
dEYOND THOSt 06J~CTIVES, ON FqI~hY 1 ~ILL ~E COCHAIRING THE FI~Sl ~f~TI~~ OF THE JOINT ECONO~IC
COMMITTEE SINCa 1js7. TMIS ~EVITALIZE~ FORUM OFFERS
THE UNITED STATS~ ANO CHIN~ A PL~CE TO TAL' A~OuT OUR
~UTUAL ECONOMIC CO~CE~~S A~D SOL~TIO~3 TO OUR P~OBLEMS.
THEY ~E~~ VEiY U~EFUL ~~SS!O~S, AiD I TOLD TH~ CHIN~SE
THAT I AM IM~q~5SeC ~ITH ~O~ ~~~IOLY CHINA IS GRO~ING
A~u
CHAtiiiI~G.
T~ANK
YOU, I'LL
~U~~TIO~:
Ii~
"tOUR TylO
~~.
~CC~~T
Y0UK
seC~~TA~Y,
~c£Tr·:·.::~
i;I.:.,T
~~~STrON~
~IC
YO~
"\}uL.,,
~N
1EA?
p... ~y
AS YOU HAVE THEM.
~~YTHIN~ TODAY
....~y
~NCO!JRAbE
YOU TO M00IFY YOUR STATfMENT T~AT wHIL~ THE~~ HAS ~EEN
PR0GRES~, IT HAS NOT BEEN ~NOUGH?
WAS THER~ ANY
MOVeMENT TO SHRI~K THAT OISTANCE AT ALL? ~AS THERE
ANYTHING THAT WIO~NEO IT?
SECRETA~Y eENTS~N
I OlD NOT Sf; ANY DIFFERENCE IN THE
STATE~ENT THAT I MADE ~~EVIUUSLY.
QUESTION: COULD YOU JUST T~LL U~ A L!TTL~ ~OPE
SPECIFICALLY ~XACTLY WHAT T~E ~ESS~ti~ IS THAT YOU WILL
dE OELIVERING TO JlA~G Z~~I:~ TO~O~~CJ o~ ~VE~ WHAT YOU
TOLD Ll PEN~ TJuAY ON HUMAi~ RI~~TS ANO ~FN?
SECRETA~Y ~E~TS~N:
W~LL,
I TeL' ~I~ OF cu~ CONC~~~ FOR
rlU~AN ~I~HTS ON T~~ PA~T OF Tk~ ~ME~!t~~ P~OPLE, ON THE
PA~T OF THE Pi~~I~~NT, ANO IN 50 FA~ AS TH~ CONG~ESS.
ANO TH~T SO~E PRUGRiSS HAD g~E~ ~ADE ~UT ~E ~ERE
EX~~'TIN~ MO~E, d~FO~~ TrlIS ~~£3!D5~T HAS TO ~A(E HIS
DECISION IN JUNE OF THIS Y~AR. ~E GOT INTO QUESTIONS
ON INTELLECTUAL ~~OPERTY 'cI~HT~, CO~?LI~fNTING THE~ ON
STARTI~G THAT ~euIME.
8~T ~f'~S va~y CONCE~~ED A90UT
E~fORCEM~NT aN IT, LOOKI;~~ AT THE ~NORMOUS ~lPO~TS OF
COS, WITH VIOLATIONS OF CapYRI~HTS ~~D NO O~S~RVANCE OF
COPYRI~HTS.
.
QU~STION:
Ole Y~U GET ANY R~SPO~$~ F~OM T~E P~OPLE
TODAY TO YOUR CONCER~S ON HU~AN ~IGHTS? DID TH~Y SAY
TO YOU A90UT WHAT TH~yl~E OOI~G, ANYTHING Nf~
THAT THEY'RE P~A~NIN~ TO DO?
ANYTHI~~
~ECR~TARY
NOTHlrH~
SHnScN:
6t:YONO
WHAT THEY HAVE
STATED.
QUESTION: ON THE HUMAN RIGHTS ISSUE, NOT TO BEAT IT TO
A PULP, eUT DID YOU SAY SPECIFICALLY ~HAT IT WAS, DID
YO~ ~AKE ANY SUGGESTIONS FOR WHAT IT ~AS THAT THE
UNITcO STATES MIGHT ~E LOOKING FOR?
SECR5TA~Y aENTScN:
HO, I ~lC ~OT T~Y 10 DE~L IN
IN~IVI~U~L CASES.
! WAS FLEAS ED TO SEE TYAT THEY HAD
~ELSASEO THE TwO TI~ET~~S, 5UT AGAIN, ~AS SPEAKING THAT
II e WAN Tel) TO S E: t'10 R E .::s E I N b A C CO:1 P LIS Hi: 0 •
AND TH !~ T
THAT ~AS AN I~PERATIVE FC~ TH~ PkESI~ENT A~~ IN TURN
FO~ THE uNITED STAT~S CONGRESS.
QUESTION: CAN YOU CHA~ACTE~rZf ~~E~E YOu THINK THE
U.S. ~~o CHINA ARE NOW IN ~ESOLVING THIS ISSUE A40 HO~
CL~SE OR HOW fA~ AWAY yOU THI~K T~~ C~I~ESE A~E TO
~INNI~G MFN RENEWAL?
HOW MUC~ PRO~R2SS ~AVE THEY MADE?
HAVE THSY ~HOW~ THAT THEY A~~ ~ILLING TO CHaNG~ OR TO
DO ANYT~ING CONC~~T~LY SeYJ~O JU~T ~0RJS, JEYONO JUST
RHcTOKIC?
SECR~TA~Y ~eNTSEN:
~lLL, ~e HAVE SE~N !O~E SFECIFICS
IN THAT R~~ARD. W~ HAD A VERY F~ANK OIS~USSION O~ IT.
AND I THINK IT WAS ~ HEL~fUL ~ISCU~SIO~.
QUc3TIJN: eEFO~= YOU ~~rT THE STATES, SU~£ PEOPLE
rH~~f ~ER~ SAYIN~ THAT T~~ ChINESF ~~Y ~~ HOPING TO
JU~T D~ A LITTLE ~lT Ma~E ~~~ THERE'S ENOUGH REASON WHY
Tkc UNITED STATES WOULD ~~~T TO CO~TINUE T~~ ~F~, THAT
NO MOR: PROG~eSS WOUL~ PEALL1 ~E N~CESSAWY. AFTeR THE
~EETINGS TODAY, C'N TH~~E ~S A~Y CONFJSI0N J~ THEIR
~A~T, HOw FO~CEFULLY w~S TnI~ PUT?-seCRETARY aENTS~~:
~~ ~~~ ~ V~RY FRANK ~rtCuSSIO~ THAT
IT w~s I~PORTANT TO THE uNI1ED STAT~S PRESID~NT, THAT
IT WAS I (It PO RTAN T TO <. Ui. CLEA :0, TH ~ TIT wAS Pl PC~ r AII: T TO
THE CO~~~ESS. I THl~K T~EPt C~N qE NO !LLU~IO~ A80UT
THAT, NO MISUN~E~STANOlij' ~BOUT THAT.
~UESTION:
HOW ~uCH 00 10~ SEE T~~ RaC€NTLY ~bRE~D
Te~TILe AG~EE~~~T I~FLu~~CING THIS TRI~ T~~T YCJ A~E ON
PR~VIOUSlY
I~OW?
V2RY rLE~SfD TO SEE THAT
AGil CC11 Er. T •
I T:i IN i<. T MAT : Net) UI{ ,Il,.,i cST h ~ ~ c \) '" 0 Y, ! C
~OOPERATIOr. oI:TfiEt::'I TH~ TwO CO •.H.T~!';~.
! T!1L~~1( Tr.fAT'S
,\N I.~PER~TIVc.. TO "t.;:'~ TIi: COi~C:'~:'I!S AQt~uT !liTt:LLECTU~L
SECR~TAay
~RO?ERTY
THAT'~
va,
S!:~
~~~TSE~:
albHT~
~~~
ENCJUfo(AGli~;';
C~ T rt!:
?RO~R~SSIO;~
1';
~ A~
~ELL,
1
~H~T
C~~
TO ,'::'.
T TI
Tt1::J.~
I'~
E
r
HU;\.".~
~~
~~
~QN~
"';.fAT y.~.J
I't~ ~ H': r< I:-. ,
":::LFe.,<F.
r~
~~c
l
,;~,
T~AT
q~Gs~o.
3::t:r~G
N
T:-iIi~G,j,
~ :"'~
CHI.'4A
Z IN G
:1\1 so
FA~
AS
LHANT HORTALITY, IN SO FAR .-\$ r;ORTALITY OVEHALL, Ir~ SO
fAR AS IMPROVEME~TS IN EDUCATION. n~T COUPLED WITH
THAT, ~E WANT TO SEE AN IMPROVEMENT IN ~UMAN RIGHTS.
QU~STIO~:
MR. SECRETARY, THE~E AR5 A LOT OF PEOPLE ON
~OTH SID~S OF TH~ PACIFIC ~HO HAV~ dEEN WAITI~G FOR THE
CLINTON A~MINISTRATION TO DEFIN~ THIS YE~~ AHAT IT
MEANS ~y OVERALL ~IGNIFICANT PRO~~ES~.
YOU'R~ THE
HI~HEST, MOST ~ENIO~ OFFICIAL ~HO'S ~~E~ H~~~.
IS THIS
DEFI~ITIUN COMING TO CLa~URE?
SfCRETARY aENTSE~: ~ELL, I THINK IT I~ c~TT!~
JNOERSTOJ~ AS \liE CONTINU~ TO P,-<OG~=S').
,1Y O::iJECTIV:
TOO, OF COU~SE, AND ~y RSSPONSI9ILITY, IS THE ECONOMIC
SIDE OF THE ISSUE, A~D wE ~ILL BE REJUV~~ATING THE JEC
TO OISCUS~ SOME OF THE ~CONO~IC CONC~~~S ~~~ ~HAT CAN
9E OON~ IN THAT riEGAdO.
wUt:STIOI~:
IIIITH K:3t-1ECT TO THE ccor'jO'~I:': !SSuES AND YOUR
CONCERNS IN THAT'A~E~A, 00 YOU SEe THE CrlA~CE THROUGH
OVERLY ~MPHASIZI~G A TOO-RAPID C~A~G~ I~ CHINA FO~ THE
A~OSTH~OJ~;~~:;E~I:~~~A~~~~~~TR~~A~I~€_!O
TYE
EU~OP:ANS
ARE SE~I~G SOME OF THAT ~S W~ LOOK :;D~b~EJ~FC~~!AINLY
LA~G~R INF~ASTRUCTUkf PROJ~CTS HE~~ I~ -riI~~ ~I~=
TREMENOOUS THREATS FRO~ THE ~
-_. ~
RELATIVE TO ~~AT T~e A~-~ICA~~R~P~A~S ~~D T~E JAPANES~,
CA~E TO COMI'IENT ON THAT;
AN OFFd~.
WOULD YOU
·oJ
SECRETARY 3ENTSEN: wELL, r T~!NK THE A~E~~CANS HAve A
LOT TO OFFER IN S0 FAR AS THE l~F~AST~UCTURE,
IMPROVE"~NTS TO TH~ I~F~A5T~UCTU~E.
W~ TALKED ABOuT
SO~E 0; THAT, ~~ TALKEu ASOUT POWER, W= TALKED ASOUT
we'RE
TEL:COMMu~rCATIONS, wE TALKED A60UT AI~C~AFT.
EXTREMELY COMPETITIVE IN ALL OF THOSE AR~AS. AND THOSE
THINGS WE DISCUSSED.
~U~STIOH:
YOU'R~ 3AYI~G YOU'li PRep~R~D TO GIV~ SOME
Jf fH5$E MA~~~TS UP IF TH~ CHr~ES~ ~JN'T ~QVE FAST
~NOU~H, iN TH~ DI~~CTIO~ THAT THEY'R
~
CL~~~LY
ALR~ADY
i10V INC;;?
SECRETARY eENTSEN: wELL, THE OECIS!ON O~ ~FN wILL BE
~E~e~D~NT ON T~~ PkOGR~SS I~ SO FA~ ~$ ~JMAN RIGHTS.
IT'S A PART OF TriAT ~~CI~I0N.
IIIUt:STIOi4: Rt:CEf!TLY A ;·W\oi;;C:~ OF CH!~~E3:: !HSSIDE~!TS-
PEOPL~ ~HO HAV~ SPE~T LON~ P~~!OOS OF T:ME IN
OETENTIJ~--HAV~ S~IC THAT THEY ~UP~ORT ~XTE~SION OF MFN
fOR C~INA. COULD SOMET~ING LI~~ THAT I~FLU2NCE T~E
u.s. DEC!SION'?
SECRETARY ~ENTseN: wH~T ~E'~E LOOKI'~G FOR IS CONCRETE
SERIOUS ~ROGR~SS. $O'E OF TH~T HA~ le~~ ~ADE. wE
ANTICIPATE AND HQ~E MOk~.
QUESTION: JAPAN ~~~ CriI~A ARE Th~ U.S.'S LA~GEST
KAtlKETS II_ ASI~. l'r1 JUST iltC,:H>E:r<I:.. \i AS F~R .~s CHINA'S
MA~(ET ACCESS ~!GOTIATIONS A~E GOI~G, HOW ~o YOU SEe
1T5 IMPL~MENTATION OF THE AGRE~MENT? AN' UITH YOUR
NEG 0 T I ATIC ~l S wIT H J '" P A~, I u ;H> t; ? ;) T A:JOT HAT TAL KS ARE
STALLED ON O?ENrNb TEL~C~~ A~D ~~DIC~L EQUIPMENT. AND
~HY A~E THESE STALLi~? . ANU ALSO, ~u YOU THINK THAT THE
YEN/OOLLAR RAT~ IS SATISFACTO~Y ANO JHAT A~E YOUR
CO~~ENTS O~ Th~ YuAN ~eliG FLOATED?
SEC~ETA~Y eEMT~~~:
HO~ ~UCH TI~t 00 ~~ ~AVE HERS?
(LAU~HTEk)
~tLL, OSVIOUSLY T~E FR~ME~OqK TALKS ARe NOT
PROG.RESSINu A~ \..I~LL "S TH::Y S~Cl..JLO.
~;.It)~:: HAVE TO SEE
F U tH H t: R A 0 V A r.. C ~ c Y T ri :: J,1. ? At'-l ESc •
SEi<IOUS CONC~rtN T;j us.
\)F TH': OTHE~S?
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~o~~ T~~M, ~o YOU ~XP~CT TO S~E ~R WOULD YOu
~~c: A vc:CGUPLIN:3 Cf i.F,~ ;:.::0 TH:: 'iJ:!rd'~ iHGHTS
S T 10 i4 :
Trif
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Ju"
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\~,
I DOi'T ••• ! DON'T THINK
T~~T'3 NOT T~2 POL:CY OF
CASE.
AI)':
C(~UPL-:l..
~U~~TION:
YJU SAIO EA~LIER !HAT YOU ARE, THAT T~EY
AR~, YJU AR~ LOO~ING FOK CO~CR~TE PRO~R~SS I~ H~MAN
~I~riT~.
~O YOU ~XPECT A~D A~TICIPAT~ ~ORE?
IS THE~E
ANYTH Il~~--
~EC~=TA~Y 3ENTS~N:
I'M AN OPTIMIST TO START ~ITH, SO,
SO I'~ riOPING FOR ~ORE, EXPECT1NG ~CRE.
QUESTIO~:
BuT!~ IT SJMSTHI~G T~AT TH~ CHIN~SE HAVE
I~OIClTEO, AND ARE THE~~ SIGNALS TH~T T~EY HAVE GIVEN
fJU. THAT ARE DIFFERENT FR0~?
d~~TSE~:
THAT'S AS ~UCH OF A~ ANS~ER AS
YO~'j~ 60l~G TO ~~T.
JU~STIJN:
CAN YOU GIV~ u3 ~OMe S?ECIF!C~ ABOUT TH~
~O~K OF THE J~C?
~MAT IS O~ YOU~ A~~N~A, ~HAT ARE YOU
HOpr~b lU ACCC1PLI~~?
! ~EAN SO~E SP2CIF!C GOAL~, NC~
THAT IT IS GETTING ~fSTARTED FOR THE FIRST TI~E SINCE
5EC~~TA~Y
tal.
~EC~ETA~Y
aENTS~~:
YOJ
MeA~
IF
J~
A~f
T~LKINC
~90UT
T ME.: C J:" 0 MY .~ 0 iii ?
QUESTI01:
SECReTARY
THE JtC, THt JOINT ~CO~O~!C-JH, THE JEC. OH wELL, I THINK T~AT
~ROVlj)eS
TO E'(CHA~hi:: VIEw~ ANa) TRY TO •••
(NOISe FROM MIC~O?~ONE) ••• YOU ~LL ~I~HT?
(LAUGHT5R)
TO TRY TJ RESO~Vc D!fFERE~CE3.
w~ GOT I~TO T~AT Ih T~~ DI~LJGUE wITH T~e ~REMIER.
IN
SU F~~ ~~ THAT J~'~E NOT ~I~~ORS OF ~ACH OTHER, THEQ~
b~NT$~N:
us A FU~Ut1
ARE ~IFFE~ENC~~ IN OUR CULTURE, ~IFF~~~HCES IN ~UR
ECONOMIES, AND THAT ~~'~~ THE LARGEST ~SVELOPED COUNTRY
IN THE ~ORLO A~O THAT THEY A~E THE LARGEST DEVELOPING
tOUNT~Y I~ THE ~O~LD.
AND THOS~ T~O CA~ PLAY OFF OF
~ACN
OTH~R
A~O
~E
~UTUALLY
~ENEFICIAL.
SO IN TALKING A8uUT JHAT ~£ CAN 00 T0 FUrtTHE~ PRCGR~SS
~ND Ii~OwT;; WITt1 ~~!HI!1L,I'1 I~FLAT!ON, TtiOS~: ARE THE TY?ES
OF T~INGS ~='LL ~E ~~SCUSS:~~ ~T TH~ JEC.
IT PROVIDES
US T.I1AT 1<.!.'40 Ur ~ FU~J;·i, T!·QT(':) i1-:LPflJ:'.
Th~~ L~ T~~N, r lAL~~D T0 ~IM ~~OUT TH~ ~EATTLE ~EETING
ANI> T rl c;: ~ I.i R E c: ;·1 E I IT ,., Y THE L t;; A:> :: R S 0 F 0 J ,~ CCUNT PIE S T HAT
.c WOULD rlk"E Ll TI1:' F'ACIFIC, THAT I \~C'LiI..~' lJ~ HOSTING A
~E~TING OF TH~ F1NA~C~ ~r~ISTf~S.
~ND 1JM DOING TH~T
IN HA~~II UN MARCri TH~ 1~TH AN~ TH~ 1~r~ ~HICH THEy'V2
AG~E~D TJ ATT~~D.
AiU ~~RS:D TO AJO ~o~s JTHE~ THINGS
TO T~~ AGf~DA T0 ~~ OIS~U~SEQ.
I ~~s ~~KING FOR THEI~
COUN~EL 0N THAT.
WE'LL JE H~VING ~ ~~~T:~~ OF TH~
~EPuTI~~ T~ fURThak vI~C~S~ T~AT ~GE~O~ ~iO ~HAT SHOULD
dE ON rT.
JOAN L~GU~-KINU~R, TR£ASuRY AS~T. ~EC~CT~~Y
(DfSIG~ATc), PU~LIC AFFAI~S:
TH~ S~C~iT~RY HAS TI~~
fOK TwO MO~f ~UESTrONS.
~uaSTI0~:
DECE~~ER j1ST 4HS T~~ ~E~DLIN~ F0R CHI~A TO
MEtT so~~ OF TH~ ~~'UI~~1~~T~ JN~E~ THE ~A~,eT ACCESS
~uk':Ei'l:::NT J F I~ST YEA~.
I U~Oe~STANJ THa CHI~2s! AT
ThE LAST ~lNUT~ CAM~ TH~OUGH ~lTk SOME ~XPLANATIONS,
~ESPONS~S--AR~ T~2Y ~ATI~FACTO~Y?
DIJ T~~Y I~DEED ~EET
;)EC~C:TA"Y
:)::~T·lE'.:
!
.)Cti'T
K~V'"
DF.T;.rL ON
T:1~
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TO TALI<. TU USTP, dJT OR~IOUSLY ~~'VE ~~DE
AL ? K 0 t~ Ii: ES Z 0 r~ TIi ~ T::. )( T J F Ti; .; l. I.~ RF Ef'. t ~.. T • NOw
THAT'~ ~ ~AJO~ PLUS •
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rl U II, AN" £ L FA?. ;. •
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SECR~TAr:t ~c;;T')E,n
TH .... ·~' Yut.i.
(OJ S.
DEPARTMENT
OF
THE
TREASURY(~)
TREASURY
NE W S
171-\'l=::..• • • • • • • • • • • • • • • • • • •
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
ADDRESS OF nEASORY SECRETARY LLOYD BENTSEN
Cl:lDfESE ACADEMY OF SOCIAL SCIENCES
BEIJING, CHINA
JANUARY 20, 1994
Good a~ternoen, ana thank you for the invitation to come
speak with you today. The acaaemy is a well-known ana respectea
forum for the iaeas that have helped shaped the economic
transformation of this country. It is an honor to be asked to
address you.
This is not my first visit to China. I can tell you, the
ehanqas since I was last nere have been siqnificant. Just about
the only thinq that hasn't changed are the mountains that
surround the city.
Parts of China are growing so rapidly that the road maps ara
out of data well before they're printea, ana the telephone beok
can't keep up with the number o~ new listings. That's just one
measure of the p~ce ot qrowth occurring in China.
There's a saying in your country, I understand, about our
two countries. I believe it says that the United States is the
large~t developed economy.
And China i3 the largest developing
economy in the worla.
There's no que.tion about that. The question is, where is
that development -- both political and economic -- leading.
I
think we ought to call that the "1.5 billion people question" -that's how many people are in our two nations, Ana I guarantee
you every one will be aftected in one way or another by the
manner in which our economic and political relations evolve.
Both ot our nations f~ce a choice in the coming four
months. That choice is: Do we want to deepen the integr~tion ot
our economies and strenqthen our relation~hips, or do we want to
risk drift ~na disinteqration. One is tar preferable to the
othar, but either is possible.
(MORE)
LB-6(,) ,
-2-
The right choica ma~s we ~th benefit.in a number.of ways.
There'll be a closer relationsh~p.
There w~ll b. more ~~v.~tmant
in China. our ~usinesse. will have qraa~ar access to Ch~na s
market, and China will have the opportun.ty to take adv~taq. ot
our m~ket
And I would point out that our market is st~ll the
largest in'the world, and we account tor one-third of Chir.a's
exports.
The wrong choice means reduced access to our ~arkets.
It
means a decreasing role tor American business in China's markets.
It will affect avery aspect of our relationship.
We need to work this ona out in the short term to ensure
that we have a cooperative and beneficial relationship over the
long term.
Whil~ WQ
think about how our relationship will evolve, I
think it would be useful to examine how China has changed in
recent years, and saa what has baan accomplished
It has become an economic force to be reckoned with.
In the
past decade, growth in China'. GOP has been averaging 9.S percent
a year.
It was 13 percent last year. China's economy is the
world's third largest. Incomes are risinq. Prices have been
freed.
The literacy rate is ~e highest in the developing world.
Lite expectancy is on the ri~e.
Lite tor the Chine•• ia dramatically batter than it was when
was last here. Urban residents now think about buying
motorcycle. and VCRs. Years ago they were worrying about
~icycles, ration books and radios.
Change has been good for the
Chinese.
I
~rasident Clinton ia convinced that America's interests lie
in supporting openesa and economic reform in China.
I want to
let you know that I have brought a letter from President Clinton
to Presidant Jiang Zemin.
It emphasizes that our interests lie
in the development of a strong, stable, open and prosperous
China. My visit i. symbolic of the series ot steps President
Clinton ~~s.taken.over the pa.t tew months to engage the Chinese
leadQr~h.p .n a d~alogue to solve the issues that divide us.
I have three objectivQs on this trip.
First, I want to pursue America'. economic interests in the
Chi~ese market ~r talking about the problems U.S. firms race in
~ry~n~ t~ ~~are .n China's prosperity.
I want to show how it is
~n ~~na s ~ntercst t~ open markets, to liberalize financial
serv~ces~ ~o Qnfor 7e .ntallectual property ri9hts, and to drop
the :ema~n~ng b~rr~ers on ace ••• to foreign Qxchange.
Those
ba~rlers stand ~n thQ way of our exports and investments in
Ch~na.
-3-
My second objective is to demonstrate our support ~or
economic reform in China and for the further integration of
China'. economy with the world economy. The successful
tran.formation of the China into a mora open, market-oriented
economy i . of profound importance to the United States and to the
entire Asian reqion.
And tinnIly, I'm qoinq to make it clear that progress on
human riqhta i. fundamental to our relationship. There has been
proqr.... But much remains to be done. China must do more
before early June when President Clinton must mAka a decision on
the renewal of MFN status.
I'm pleased to announce today that we've made some progress
on the prison labor front. Our qovernmenta have agreed on
measures to @nsur@ more effective prevention of the export o~
good. made with pri.on labor. China has also agreed to permit
inspections of five prison. alleqed to be producing goods for
export. I trust that thie pattern of cooperation will continue.
Our aim i. not to impo.e our particular political system on
any nation, or to undermine retorming governments. All cultures
have unique charactaristics. Our aim is to encouraqe the
creation of conditions that respect the universal principles of
hUman rights. Beyond steps that directly affect the riqhts of
Chinese citizens, we believe that market reform and trade provide
the infrastructure of both economic success and political change.
The decision on MFN is up to the preaident.
up to China.
The choice is
Let me get back to economics. I want to acknowledge that
China is making positive choices. It has made several in the
weeks betore I came to visit, such as the agreement on textiles
that was siqned three days ago and the recent proqress on the
market acce•• aqr.ement to eliminate import restrictions.
I would note that China i . ateppinq out into the global debt
market with a $1 ~illion bond issue that will be put to use on
in~rastructur. n ••ds.
Th ••• projects can help China continue the
enviable pace of dcv~lopment it has established.
I am also encouraqed that the Chinese leadership has agreed
to reforms of China's tax system, central bank, and the financial
system. These steps will put in place the tools tor more
e~fective manaqement ot China's rapidly growing economy and an
expand ad role for the market.
-4-
It was also an axcellant choice to unity the exch~gQ rata,
and move toward full convertiDility tor trade transact1ons. thIs
will help brinq China into compliance ~ith.the ~,standard.on
exchanqe controls, and and it will ass 1St 1n Ch1na sentry .nto
GATT •
Despite proqress in these areas, we still have some
important differences. In the financial area, tor instance,
forei9D banks are prohiDited from anqaqinq ;n l~c~l currency
busines., and the ability to open branches 1S I1m1tad.
I am pArticularly concerned &bout the lack of
intellectual property rights.
en~orcement
ot
And I am disappointed that there are still restrictions on
buying foreign exchange tor tho.e who want to import certa~
qoods and repatriate profits.
I have another important responsibility on this trip.
We
will bQ reactivating the Joint Economic Committee. Tomorrow, I
will co-chair the first m••ting ot the committee since 1987.
That in it.elf is siqnificant. But beyond that, a revitalized
committee can be a vehicle for both qovernments to discuss the
two economic points an my agenda for the trip -- opening markets
to u.s. business •• and supportinq retorms.
OUr bilateral discussion. within the context
help us narrow our ditterence ••
o~
the JEC can
a.
The committee also will serve
a place to talk about our
reqional issues, such aa the Asian Pacific Economic Cooperation
orqanization and the March meeting of financQ minsiters. In this
context, we'll be abl. to discuss the further economic
integration of our region.
The Asian and Pacific reqion is important to our economy.
sixty percent of what we import comes from this reqion. Half of
what ~. export <?om•• to this area of the world. And exports are
b.com~nq the Qr1vinq force in our economic growth.
Halt ot our
growth since the mid 19805 and almost all 0: our increase in
~anufactur~nq j~bs have been brought about by exports.
One job
~n every
exports.
e~9ht
1n the United States is exists because of
In another arena, the political one, we have a number of
common strategic inter.sts -- most significantly in North Korea
where we ~hare the goel of securing a non-nUclear penninsula.
And in th1S area of non-proliferation, it is important that we
work t097ther to reduce and eliminate weapons of mass
destruct1on.
-5I hope the choices made in the next tour months will deepen
the integration of our two economies and strengthen the ties
between our two countries.
A century from now hi.torians will look back and make a
judqmant about how well the economic transition of the world's
lar~est nation was accomplished.
Was it done well and w1sely,
and done so that the most ben~fit flowed to the most people? Or
was it done in such a manner that ~aranteed failure.
Down one path lias a course that holds no benefit fer the
Down the other lie. growing prosperity,
integration into the 910bal market, and a better li~e ~or the
citizens of this great country.
Chinese people.
I am encouraqed by what I've heard trom China's leaders
about economic reform. And I am deeply impressed by the chanqes
takinq place in China's economy.
I want to closa by recallinq an old Chine5e story. It's a
story about diligence and per.erveranca. It's a story about
will.
A long time aqo, an old man named Yu lived in the mountains.
One day, he decided to remove.one ot the mountains that closed
him in. He called his f~mily together and set to the task. Some
thou9ht he was fooliah tor trying to do what seemed to be
impossible. But Yu, and his children and grandchildren after
him, worked with aogged determination, and a~ter not months or
years but generations, Yu and his descendants got he job aone.
nyu Gonq Yi Shan (SHAHN)."
I know that there are i ••u •• which divide our two countries.
But I am confident that in the same unyielding spirit o~ Old Man
Yu, we can resolve those differences. And I balieve that by
COmmitting ourselves to the resolution of these issues, together,
W8 too can move mountains.
But we just need to move a little
more quickly than he.
Thank you.
-30-
DEPARTMENT
OF
THE
IREASURY ~(~.)
. .::.+c~
~~~~
TREASURY
NEW S
~~17Rq~.~. . . . . . . . . . . . . . . . . . . .~~. . . . . . . . . . . ..
......................................
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
STATEMENT OF TREASURY SECRETARY LLOYD BENTSEN
DEPARTURE PRESS CONn:RECE
BEIJING, CHINA
JANUARY 21,-1994
We're windinq up our visit to Beijing and I wanted to take a
tew minutes with you to let you have my impressions or the trip.
We had a very productive .et of discussions.
I have a much greater appreciation of China's economic
accomplishments, and of the opportunitias and challenges that lie
ahead.
This is a very different country than the one I visited
in 1978.
I came hare with three objectives.
America's economic interests in China.
The
tirs~
was to pursue
Even _be:tore ..%. arrivecl there waa proqraas. We reached an
important agree.ent on textiles, and China decided to uni~y its
exchanqQ rates.
We also saw China make commitments in the
context of the Joint Economic Committee to open its financial
markets by allowinq branch•• in areas that have previously been
Closed to foreiqn b~nks.
In addition, the Chinese also saia they
are willing to ~llow foreiqn bank., on an experimental basis, to
engage in local ~r.ncy business.
We have a lot more to de. But we have now in place, in thQ
torm o~ werkinq groups under the Joint Economic Committee, a
framework in which to reselve these issues.
My second objectiv. in cominq to China was to support the
reform et:torts in which the entire world has such a great stake.
Mr. Zhu Ronqji and I had a good talk about the challenqes ahead.
In the joint statement we relea.ed on the conclusion o~ the JEC,
we announced an intanzified program of technical assistance.
We also discussed thQ Asia Pacific Economic Cooperation
orqanization and the upcoming finance minister's meeting.
With China's infrastructure needs and the huge capital flows it
has been experiencing, the agenda promises to be especially
relevant to China.
(MORE)
LB-603
While we were ta1kinq about international economic
intaqration, we also touched on the GATT. I was able to tAlk
with the Chinese authorities about the next stage ot the process
of qaininq entry to GATT, which begins in a tew weeks here in
Beijinq.
My third objective was to make clear that our concerns.ab~ut
human rights remain fundamental. There has been progress, but
more remains to be done.
I had qood, frank discus.ions with each or the senior
otticials. I think we All understand where the MFN issue now
stande. I think they unclerstand the standards laid out in the
executive order. They have heard the same message trom the
American people, trom recent Conqressional delegations, and in
the messaqe I carried trom the President.
I am plaa ••d with the proqress on prison labar. But let me
just say that this i . just one part of the Executive Order. And
the important point is overall progress on human rights when it's
time tor the President to make his decision.
I leave this afternoon tor Shanghai where I am eager to see
first hand the role that the nGW entrepenuers are playinq in
China's impressive economic growth.
-30-
Monthly Treasury Statement
of Receipts and Outlays
of the United States Government
For Fiscal Year 1994 Through December 31, 1993, and Other Periods
Highlight
Military active duty pay, veterans benefits, and supplemental security income payments for January 1,
1994 were accelerated to December 30, 1993, thereby inflating outlays for the month of December.
RECEIPTS, OUTLAYS, AND SURPLUS/DEFICIT
THROUGH DECEMBER 1993
B
I
L
L
I
o
400
350
300
250
200
150
Contents
Summary, page 2
Receipts, page 6
Outlays, page 7
Means of financing, page 20
Receipts/outlays by month, page 26
N
Federal trust funds/securities, page 28
S
Receipts by source/outlays by
function, page 29
Explanatory notes, page 30
Compiled and Published by
Department of the Treasury
Financial Management Service
Introduction
of receipts are treated as deductions from gross receipts, revolving and management fund receipts, reimbursements and refunds of montes preViously expended are
treated as deducllOns from gross outlays, and Interest on the public debt (publIC
issues) is recognized on the accrual baSIS. Major Information sources Include
accounting data reported by Federal entilles, disburSing officers, and Federal
Reserve banks.
The Monthly Treasury Statement 01 Receipts and Outlays 01 the UMed States
Government (MTS) IS prepared by the FinanCial Management Service, Department of
the Treasury and after approval by the Fiscal Assistant Secretary of the Treasury, IS
normally released on the 15th workday of the month following the reporting month.
The publication IS based on data provided by Federal entities, disbursing officers,
and Federal Reserve banks
Triad of Publications
The MTS is part of a triad of Treasury finanCial reports. The Dally Treasury
Statement is published each working day of the Federal Government. It provides
data on the cash and debt operations of the Treasury based upon reporting of the
Treasury account balances by Federal Reserve banks The MTS IS a report of
Government receipts and outlays, based on agency reporting The US Government
Annual Report is the official publication of the detailed receipts and outlays of the
Government. It is published annually in accordance with legislative mandates given
to the Secretary of the Treasury,
Audience
The MTS IS published to meet the needs of Those responsible for or interested
In the cash poSition of the Treasury, Those who are responSible for or interested in
the Government s budget results, and Individuals and businesses whose operations
depend upon or are related to the Government's financial operations,
Disclosure Statement
This statement summarizes the finanCial actiVities of the Federal Government
and off-budget Federal entitles conducted in accordance with the Budget of the U,S,
Government, Ie , receipts and outlays of funds, the surplus or deficit, and the means
of finanCing the defiCit or dispOSing of the surplus, Information is presented on a
modified cash baSIS: receipts are accounted for on the basis of collections; refunds
Data Sources and Information
The Explanatory Notes section of this publication prOVides InformallOn concerning the flow of data into the MTS and sources of information relevant to the MTS.
Table 1. Summary of Receipts, Outlays, and the Deficit/Surplus of the U.S. Government, Fiscal Years 1993 and 1994,
by Month
[$ millions]
Period
FY 1993
October
November
December
January
February
March
April
May
June
July
August
September
Year-to-Date
FY 1994
October
November
December
Year-to-Date
Outlays
Receipts
Deficit/Surplus (-)
76,824
74,625
113,683
112,712
65,975
83,284
132,012
70,638
128,566
80,626
86,734
127,469
125,616
107,351
152,629
82,896
114,172
127,258
123,921
107,601
117,467
120,204
109,812
118,904
48,792
32,726
38,947
-29,817
48,197
43,974
-8,091
36,963
-11,099
39,577
23,078
-8,565
1,153,147
1,407,831
254,684
78,668
83,107
125,416
124,090
121,488
133,667
45,422
38,381
8,252
287,191
379,246
92,055
Note Details may not add to totalS due to rounding.
2
Table 2. Summary of Budget and Off-Budget Results and Financing of the U.S. Government, December 1993 and
Other Periods
[$ millions]
Total on-budget and off-budget results:
Total receipts
On-budget receipts .'
Off-budget receipts
Total outlays .
On-budget outlays
Off-budget outlays
Total surplus (+) or deficit (-)
On-budget surplus (+) or deficit (-)
Off-budget surplus (+) or deficit (-)
Prior
Fiscal Year
to Date
(1993)
287,191
1,241,312
265,132
1,329,334
99,721
25,694
214,285
72,905
903,425
337,888
195,845
69,286
974,096
355,238
133,667
379,246
1,500,061
385,596
1,536,259
121.985
11,683
319,277
59,969
1,219,390
280,671
303.775
81,821
1,243,698
292,561
-8.252
-92,055
-258,748
-120,465
-206.925
-22,263
+14.012
-104,992
+12,936
-315,965
+57,217
-107,930
-12,535
-269,602
+62.677
8,252
92,055
258,748
120,465
206.925
13.995
-17,412
89.278
2,783
-6
265,244
81,494
28,899
10,072
212.679
11,669
'These figures are based on the appendix tables In the Mid-Session Review of the FY 1994
Budget. released by the Office of Management and Budget In September 1993.
-6,496
... No Transactions.
Note: Details may not add to totals due to rounding.
Figure 1. Monthly Receipts, Outlays, and Budget Deficit/Surplus of the U.S. Government, Fiscal Years 1993 and 1994
$ billions
1~n-~--------------------------------------------1
Outlays
1
,
,,
,
,,
1
,
'.......
,
,,
,, ,,
, ,
.... --'
,,
.
..,...,.",
,,
,
,
-----'
''
'
,
Receipts
Defic~( -)/Surplus
Dec.
Feb_
Budget
Estimates
Next Fiscal
Year (1995)1
125,416
Total on-budget and off -budget financing
Means of financing:
Borrowing from the public .'
Reduction of operating cash, increase (-)
By other means .
Budget
Estimates
Full Fiscal
Year 1
Current
Fiscal
Year to Date
This
Month
Classification
Jun_
Apr-
Aug.
Oct
FY
94
FY
93
3
Dec.
-5,754
Figure 2.
Monthly Receipts of the U.S. Government. by Source. Fiscal Years 1993 and 1994
$ billions
160,-------------------------------------------------,
ITotal Receipts
140.-1
1
,
120~
I
100
J
Ii
Dec.
Feb.
Apr.
Jun.
Aug.
FY
93
Figure 3.
Oct.
Dec.
FY
94
Monthly Outlays of the U.S. Government, by Function, Fiscal Years 1993 and 1994
$ billions
Total Outlays
Oct.
Dec.
Feb.
Apr.
Jun.
Aug.
Oct.
FY
FY
94
93
4
Dec.
Table 3.
Summary of Receipts and Outlays of the U.S. Government, December 1993 and Other Periods
[$ millions]
This Month
Current
Fiscal
Year to Date
54,183
28,239
129.497
32.604
121,548
26.525
548,215
120.842
25.694
7,579
259
423
4,695
1,179
1,584
1,582
72,905
21.332
4,078
1,150
13,101
3.475
4,980
4,069
69,286
20.365
3,549
1.213
11,766
2,940
4,708
3,233
337,888
94,807
27,272
4,676
54.512
12,691
20,374
20,035
Total Receipts ................................................ .
125,416
287,191
265,132
1,241,312
(On-budget) ................................................. .
99,721
214,285
195,845
903,425
(Off-budget) ................................................ .
25,694
72,905
69,286
337,888
204
190
16
625
6.408
282
25,752
2,550
2,535
1.492
787
568
53
5,713
18,449
823
70,695
7,614
7,697
4,925
608
481
54
5,671
19,319
802
74,848
7,508
7,672
4,654
3,134
3,138
186
12,297
66,603
3,181
264,144
30,545
30,992
16,931
29,294
25,901
2,309
514
773
3,818
478
3,740
79.420
76,007
7,368
1,640
2,427
10,003
1,908
10,143
69,370
95,882
6,873
1,645
2,977
10,367
1,794
8,859
320,180
315,266
26,986
7,325
10,322
36,640
5,538
36,773
52,712
983
4.438
458
384
1,191
3,079
49
92,611
956
10,412
1,394
3,484
9,293
209
92,162
-241
9,902
1,461
421
3,681
8,662
252
303,161
9,779
38,038
6,552
836
14,670
38,872
762
Classification
Comparable
Prior Period
Budget
Estimates
Full Fiscal Year'
Budget Receipts
Individual income taxes
............................. .
Corporation income taxes ............................ .
Social insurance taxes and contributions:
Employment taxes and contributions (off-budget)
Employment taxes and contributions (on-budget) .......... .
............ .
Unemployment insurance
Other retirement contributions ...................... .
Excise taxes
Estate and gift taxes
Customs duties
Miscellaneous receipts .
Budget Outlays
Legislative Branch
............. .
The Judiciary ............
. ................................. .
Executive Office of the President
.......... .
Funds Appropriated to the President .......... .
Department of Agriculture
Department of Commerce ...... .
Department of Defense-Military
Department of Defense-Civil
Department of Education
Department of Energy
.............
. ........... .
Department of Health and Human Services, except Social
Security
................. .
Department of Health and Human Services, Social Security ."
Department of Housing and Urban Development
Department of the Interior
............... .
Department of Justice
Department of Labor ....
Department of State
Department of Transportation
Department of the Treasury:
Interest on the Public Debt
Other .......... .
Department of Veterans Affairs ................. .
Environmental Protection Agency
General Services Administration
National Aeronautics and Space Administration
Office of Personnel Management
............... .
Small Business Administration
Other independent agencies:
............ .
Resolution Trust Corporation
Other ...
. ........................... .
Undistributed offsetting receipts:
Interest ....
Other
2.471
-216
1,310
3,001
-7,598
5,614
5,231
23,279
-36,027
-2,737
-41,560
-8,240
-39,856
-8,247
-86,125
-45,175
Total outlays ................................................. ..
133,667
379,246
385,596
1,500,061
(On-budget) ................................................. .
121,985
319,277
303,775
1,219,390
(Off-budget) ................................................ .
11,683
59,969
81,821
280,671
134
Surplus (+) or deficit (-) .................................. ..
-8,252
-92,055
-120,465
-258,748
(On-budget) ................................................. .
-22,263
-104,992
-107,930
-315,965
(Off-budget) ................................................ .
+14,012
+12,936
-12,535
+57,217
'These figures are based on the appendix tables in the Mid·Session Review of the FY 1994
Budget. released by the Office of Management and Budget in September 1993.
Note: Details may not add to totals due to rounding.
5
Table 4,
Receipts of the U,S, Government, December 1993 and Other Periods
[$ millions]
----
This Month
Classification
Gross
Receipts
Individual Income taxes:
Withheld
PreSidential Election Campaign Fund
Other
Prior Fiscal Year to Date
Current Fiscal Year to Date
I (Deduct)
Refunds I
.
Receipts
Gross
Receipts
I (Deduct)
Refunds I Receipts
Gross
Receipts
I (Deduct)
Refunds I
.
Receipts
115.782
51.184
123.291
(' 'j
(' OJ
(' 'j
3.501
9.499
9.023
.........................
54,685
502
54,183
132,791
3,294
129,497
124,805
3,258
121,548
Corporation income taxes " ...... , .... ,." .. " .. ,., .. , ... " ..
28,963
725
28,239
36,088
3,484
32,604
30,324
3,799
26,525
Social insurance taxes and contributions:
Employment taxes and contributions:
Federal old-age and survivors Ins trust fund:
Federal Insurance ContributIOns Act taxes
Self-Employment ContributIOns Act taxes
DepOSits by States
Other
23,249
23,249
65,891
65,891
62,591
62,591
-45
-45
-45
-45
-10
-10
(OOj
(. 'j
(OOj
("j
(OOj
( )
23,204
23,204
65,846
65,846
62,581
62,581
2.490
2.490
7,059
7,059
6,706
6.106
(OOj
("j
("j
("j
-1
-1
2.490
2,490
7.059
7.059
6.705
6.105
7.263
7.263
20.426
20.426
19.461
19,461
Total-Individual income taxes
Total-FOASI trust fund
Federal disability Insurance trust fund:
Federal Insurance Contributions Act taxes
Self-Employment ContributIOns Act taxes
Receipts from railroad retirement account
DepOSits by States
Other
Total-FDI trust fund
Federal hospital Insurance trust fund:
Federal Insurance Contributions Act taxes
Self-Employment Contributions Act taxes
Receipts from Railroad Retirement Board
DepOSits by States
Total-FHI trust fund
Railroad retirement accounts:
Rail industry pension fund
Railroad Social Security eqUivalent benefit
Total-Employment taxes and contributions
Unemployment Insurance:
State taxes deposited In Treasury
Federal Unemployment Tax Act taxes
Railroad unemployment taxes
Railroad debt repayment
(00)
(OOj
(OOj
(OOj
-3
-3
7,263
7.263
20.426
20.426
19.458
19.458
186
151
21
165
151
492
436
21
471
436
481
433
7
474
433
33.294
21
33.273
94.259
21
94.238
89.658
7
89.651
218
42
3
218
40
3.369
709
7
10
3.369
700
7
1
2.831
685
23
26
259
4.087
10
4,078
3.565
(OOj
(OOj
261
Total-Unemployment insurance
..
(OOj
(OOj
3
16
16
2.831
669
23
26
3.549
Other retirement contributions:
Federal employees retirement - employee
contributions
Contributions for non-federal employees
417
6
417
6
1.128
22
1.128
22
1.186
26
1.186
26
Total-Other retirement contributions
423
423
1.150
1.150
1.213
1.213
Total-Social insurance taxes and
contributions ........................................
33,978
24
33,954
99,496
31
99,466
94,436
23
94,413
2.789
453
1.468
54
68
2.721
453
1.468
54
7.638
1.344
4,301
149
415
2
-85
7.223
1.342
4.387
149
6.315
1.211
4.287
156
99
5
99
6.216
1.206
4.188
156
.....................................
4,763
68
4,695
13,432
332
13,101
11,969
204
11,766
Estate and gift taxes ........................................ ,
1,214
35
1,179
3,569
94
3,475
3,016
75
2,940
...............................................
1,655
71
1,584
5,228
248
4,980
4,910
202
4,708
1,292
290
1.292
290
3.326
746
2
3.326
744
2.367
867
........................
1,583
1,582
4,072
2
4,069
3,234
........................................
126,841
1,425
125,416
294,675
7,485
287,191
272,693
7,561
265,132
1,425
99,721
221,770
7,485
214,285
203,407
7,561
195,845
25,694
72,905
72,905
69,286
Excise taxes:
Miscellaneous excise taxes 1
Airport and airway trust fund
Highway trust fund
Black lung disability trust fund
Total-Excise taxes
Customs duties
Miscellaneous Receipts:
DepOSits of earnings by Federal Reserve banks
All other
Total -
Miscellaneous receipts
Total -
Receipts
Total -
On-budget
......................................
101,147
Total -
Off-budget
.....................................
25,694
I' ') Less Ihan $500.000
Note Details may not add to totals due to rounding
'InCludes amounts for windfall profits tax pursuant to P L 96-223
No Transactions
6
2.367
866
3,233
69,286
Table 5. Outlays of the U.S. Government, December 1993 and Other Periods
[$ millions]
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross IAPPlicablel
Outlays
Receipts
Outlays
Gross IAPPlicablel 0 tl
Receipts
u ays
Outlays
Gross jAPPlic.ablej Outla s
Outlays
Receipts
y
Classification
Legislative Branch:
Senate ...
House of Representatives
Joint items
Congressional Budget Office
Architect of the Capitol
Library of Congress ..
Governrnent Printing Office:
Revolving fund (net)
General fund appropriations
General Accounting Office
United States Tax Court
Other Legislative Branch agencies
Proprietary receipts frorn the public .. .
Intrabudgetary transactions
............ .
Total-Legislative Branch .....................•..........
The Judiciary:
Supreme Court of the United States ................ .
Courts of Appeals, District Courts. and other judicial
services
Other
Total-The Judiciary
Executive Office of the President:
Compensation of the President and the White House
Office
.......... ..
Office of Managernent and Budget
Other
Total-Executive Office of the President
Funds Appropriated to the President:
International Security Assistance:
...................... .
Guaranty reserve fund
Foreign military financing grants ........................ ..
Economic support fund
.............. .
Military aSSistance
.............. ..
Peacekeeping Operations
. . . .. .. . .. . . . .. . ........ ..
Other
............ ..
Proprietary receipts from the public ............... .
Total-International Security Assistance
International Development Assistance:
Multilateral Assistance:
Contribution to the International Development
......................... .
Association
International organizations and programs ............. .
Other.. .... .........
.. ............................ .
Total-Multilateral Assistance
Agency for International Development:
Functional development assistance program .. .
Sub-Saharan Africa development aSSistance ....... .
Operating expenses .....
. ........................... .
Payment to the Foreign Service retirement and
disability fund .
.. ........................ ..
Other ..............
. ............................. .
Proprietary receipts from the public
Intrabudgetary transactions
Total-Agency for International Development
33
13
20
13
20
104
192
20
5
54
246
13
10
39
13
10
39
2
2
2
-1
-2
204
793
2
179
68
(")
1
6
2
2
2
-2
206
2
2
179
9
191
(. ')
..
( )
3
3
34
22
103
-7
29
117
8
8
8
8
8
8
-3
-3
-3
787
613
6
6
6
534
28
534
28
470
9
190
568
568
481
6
(")
2
2
2
6
105
190
19
5
62
76
-7
29
117
8
8
-2
-3
608
6
(")
470
(0 0)
481
5
5
11
11
9
9
14
28
13
32
13
32
53
54
54
106
2,378
1.575
19
249
2,499
1,703
-8
10
8
8
53
24
235
96
11
196
2,378
1,575
3
19
4
8
1
2
-1
10
89
3
131
118
2,499
1,703
-8
10
83
-83
214
4,247
8
25
-25
114
4,065
4,461
5
194
114
199
194
114
199
186
140
240
186
140
240
78
78
507
507
566
566
38
66
38
38
66
276
163
129
276
163
129
376
158
107
376
158
107
4
-4
40
366
4,179
73
73
5
406
38
66
4
56
61
-56
198
13
146
185
-146
127
16
232
111
-232
207
60
147
767
158
608
768
248
521
16
61
-7
7
9
61
-52
25
55
12
21
67
55
-55
25
61
(' ')
1
20
242
1,369
219
1,150
1,423
316
1,107
364
703
-19
3,346
78
2,962
(")
3
16
7
11
(' ')
Total-International Development Assistance ......... .
313
72
Total-Funds Appropriated to the President ...••.....•
34
22
103
16
4
105
192
19
5
10
1
11
103
189
20
64
76
16
36
2
5
14
28
60
235
96
(")
52
246
3
3
Peace Corps ......
.. ..................... .
Overseas Private Investment Corporation ............... .
Other ..
International Monetary Programs ........................... .
Military Sales Programs:
Special defense acquisition fund ......................... .
Foreign military sales trust fund
................... ..
Kuwait civil reconstruction trust fund .................... .
Proprietary receipts from the public ..................... .
Other ...............
. ................................ ..
33
67
6
4
68
364
30
-12
1,223
54
3,346
(")
(")
1,260
-1,260
-2
68
17
1,223
(")
-2
2,026
1,401
7
625
73
3,193
9,312
3,599
-3,193
1
4
5,713
9,634
703
74
4
3,359
2,962
3
-3,359
4
3,963
5,671
Table 5.
Outlays of the U.S. Government, December 1993 and Other Periods-Continued
[$ millions]
This Month
Classification
Gross lAPPlicablel Outlays
Outlays
Receipts
Department of Agriculture:
Agricultural Research Service
Cooperative State Research Service
Extension Service
Animal and Plant Health Inspection Service
Food Safety and Inspection Service
Agricultural Marketing Service
SOil Conservation Service:
Watershed and flood prevention operations
Conservation operations
Other
Agricultural Stabilization and Conservation Service:
Conservation programs
Other
Farmers Home Administration:
Credit accounts:
Agricultural credit insurance fund
Rural housing insurance fund
Other
Salaries and expenses
Other
175
114
102
106
116
234
203
109
94
124
122
281
203
109
24
48
7
24
48
7
72
136
20
72
136
20
62
145
22
62
145
22
27
61
27
61
1.773
168
1,773
168
1,703
160
1,703
160
-200
-225
299
677
-179
-194
250
702
536
875
(
(" .)
236
329
143
21
158
22
-370
1,140
-209
1,131
33
272
272
106
-31
28
6
-178
380
214
84
18
174
860
63
84
17
-520
563
256
70
18
649
277
2,581
1
7,413
1
5,503
1
8,344
1
2,146
748
310
79
2,146
748
310
79
6,364
1,764
809
142
6,364
1,764
809
142
6,052
1,778
759
199
6,052
1,778
759
199
3,283
3,283
9,079
9,079
8,788
8,788
100
152
113
100
152
113
336
119
338
336
119
338
390
133
415
390
133
415
365
365
794
794
938
938
41
28
6
75
413
3,433
1
565
72
(" .)
253
33
852
1,349
151
1
695
296
1,909
)
..)
(
143
21
33
Total-Forest Service
..
-286
-174
(" .)
Foreign assistance programs
Rural Development Administration:
Rural development insurance fund
Rural water and waste disposal grants
Other
Rural Electrification Administration
Federal Crop Insurance Corporation
Commodity Credit Corporation:
Price support and related programs
National Wool Act Program
...........
478
871
94
124
122
280
49
7
195
Forest Service:
National forest system
Forest service permanent appropriations
Other
Gross IAPPlicablj Outl
Receipts
ay.
Outlays
Outlays
175
114
102
106
116
234
Total-Farmers Home Administration
Total-Food and Nutrition Service
IAPPII~bli
Receipts
Gross
Outlays
59
40
37
36
40
59
49
7
Food and Nutrition Service:
Food stamp program
State child nutrition programs
Women, infants and children programs
Other
Prior Fiscal Year to Date
59
40
37
36
40
59
36
104
...........
Current Fiscal Year to Date
(")
158
22
1,411
-280
106
121
1
1,136
298
1,177
135
70
18
-488
-22
7,166
1
52
2
178
50
-178
160
8
367
152
-367
160
8
291
152
-291
8,363
1,955
6,408
23,226
4,776
18,449
23,765
4,445
19,319
21
19
25
2
19
19
25
74
78
68
6
68
78
68
67
104
75
8
60
104
75
186
10
23
9
2
515
16
65
27
4
9
511
16
65
18
468
17
66
24
8
2
184
10
23
7
9
460
17
66
15
Total-Science and Technology
228
5
224
623
12
611
576
17
559
Other
Proprietary receipts from the public
Intrabudgetary transactions
Offsetting governmental receipts
3
3
-8
29
8
..
29
-30
34
30
29
-29
872
48
54
802
Other
Proprietary receipts from the public . . . . . . . . . . . . . . . . . .
. . . . . . . . . ..
Intrabudgetary transactions
Total-Department of Agriculture
Department
Economic
Bureau of
Promotion
.......................
of Commerce:
Development Administration
the Census
of Industry and Commerce
SCience and Technology:
National Oceanic and AtmospheriC Administration
Patent and Trademark Office
National Institute of Standards and Technology
Other
Total-Department of Commerce
.......................
297
..
(
(" .)
15
8
)
282
(
)
..
(
)
823
856
34
Table 5" Outlays of the U"S" Government, December 1993 and Other Periods-Continued
[$ millions]
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross !APPlicable! Outlays
Outlays
Receipts
Gross IAPPlicable! 0 tI
Outlays
Receipts
u ays
Gross JAPPlic.ablel Outla s
Outlays
Receipts
y
Classification
Department of Defense-Military:
Military personnel:
Department of the Army
Department of the Navy
Department of the Air Force
...........
3,204
3,126
2,296
3,204
3,126
2,296
7,717
7,382
5,518
7,717
7,382
5,518
7,976
7,858
6,107
7,976
7,858
6,107
8,626
8,626
20,617
20,617
21,942
21,942
Operation and maintenance:
Department of the Army
Department of the Navy
...........
Department of the Air Force ................... ...........
Defense agencies
............
1,674
1,735
1,891
1,654
1,674
1,735
1,891
1,654
4,873
5,141
5,423
4,978
4,873
5,141
5,423
4,978
6,183
5,644
5,976
4,129
6,183
5,644
5,976
4,129
Total-Operation and maintenance .............
6,953
6,953
20,415
20,415
21,931
21,931
938
2,270
2,151
386
938
2,270
2,151
386
2,354
6,503
6,083
1,068
2,354
6,503
6,083
1,068
3,073
7,410
6,694
823
3,073
7,410
6,694
823
5,746
5,746
16,009
16,009
18,000
18,000
Research, development, test, and evaluation:
............
Department of the Army
...........
Department of the Navy
...........................
Department of the Air Force
.................
Defense agencies
463
590
1,273
623
463
590
1,273
623
1,423
1,619
3,780
1,989
1,423
1,619
3,780
1,989
1,432
1,693
3,754
2,212
1,432
1,693
3,754
2,212
Total-Research, development, test and evaluation ...
2,949
2,949
8,810
8,810
9,092
9,092
Military construction:
Department of the Army
.............. ................
Department of the Navy
......................
......................
Department of the Air Force ...
...............
Defense agencies
106
37
88
159
106
37
88
159
258
90
278
556
258
90
278
556
287
249
372
412
287
249
372
412
390
390
1,182
1,182
1,320
1,320
106
55
77
5
106
55
77
2
256
162
240
24
256
162
240
16
284
195
202
20
284
195
202
19
-107
47
-58
143
-58
143
31
41
31
41
(" "j
r"j
2,588
-14
1,624
-5
1,624
-6
(" "j
(""j
r"j
r"j
3
15
12
15
5
11
(" "j
Total-Military personnel
Procurement:
Department of the Army
Department of the Navy
Department of the Air Force
Defense agencies
................
......................
.................
......................
Total-Procurement
Total-Military construction
.............
Family housing:
............. ..................
Department of the Army
..................
Department of the Navy
................
Department of the Air Force
..............
Defense agencies
Revolving and management funds:
.............
Department of the Anmy ..
Department of the Navy ........ ..........................
Department of the Air Force ........................
Defense agencies:
Defense business operations fund ............
................
Other
Trust funds:
..........................
Department of the Army
....................
Department of the Navy
............
Department of the Air Force
............
Defense agencies
Proprietary receipts from the public:
............
Department of the Army ....
...........
Department of the Navy
.....................
Department of the Air Force
Defense agencies
Intrabudgetary transactions:
Department of the Army
...........
Department of the Navy
.................
Department of the Air Force
Defense agencies:
.................
Defense cooperation account
Voluntary separation incentive fund ....................
............
.................
Other.
Offsetting governmental receipts:
Department of the Anmy
Defense agencies:
...........
Defense cooperation account
Total-Department of Defense-Military
.............
2
-107
47
332
3
2,588
-13
(" "j
(""j
(" "j
2
1
52
1
7
3
103
332
3
(" "j
(" "j
52
r"j
(" "j
-26
1
18
26
-1
-18
7
4
3
(""j
103
144
121
162
57
-144
-121
-162
-57
9
15
95
122
126
2
-95
-122
-126
-2
28
518
4
28
518
4
136
539
96
136
539
96
121
807
38
121
807
38
(" "j
r "j
(" "j
r "j
-11
-11
-35
-35
-64
-64
-428
-428
25,752
3
-3
3
-3
7
-7
(" "j
(" "j
r"j
r"j
25
-25
(. 'j
25,752
502
70,695
396
74,848
9
71,197
75,244
Table 5. Outlays of the U.S. Government, December 1993 and Other Periods-Continued
[$ millions]
This Month
Classification
Current Fiscal Year to Date
Gross IAPPlicablel Outlays
Outlays
Receipts
Department of Defense-Civil
Corps of Engineers
Construction. general
Operation and maintenance, general
Other
Proprietary receipts from the public
96
95
162
15
353
Total-Corps of Engineers
Military retirement
Payment to military retirement fund
Retired pay
Military retirement fund
Intrabudgetary transactions
Education benefits
Other
Proprietary receipts from the public
15
2,182
...................
Departmenl of Education:
Office of Elementary and Secondary Education:
Compensatory education for the disadvantaged
Impact aid
School Improvement programs
Chicago litigation settlement
Indian education
Other
Total-Office of Elementary and Secondary
Education
338
2,182
I
Outlays
Gross IApplicable I Out!
Outlays
Receipts
.ya
303
363
559
40
270
277
453
-40
40
961
1,225
11,908
11,908
12,273
12,273
6,588
-11,908
50
20
1
3
6,588
-11,908
50
19
-3
6,268
-12,273
50
12
1
3
6,268
-12,273
50
11
-3
43
7,614
7,556
48
7,508
270
277
453
1,000
44
303
363
559
-44
44
1,181
1
20
10
-1
16
2,550
7,657
685
93
107
4
5
685
93
107
4
5
1,765
562
363
5
17
1,765
562
363
5
17
1,697
418
405
4
18
1,697
418
405
892
892
2,711
2,711
2,541
2,541
20
11
Total-Department of Defense-Civil
96
95
162
-15
Gross -!APPlic.able
Outlays
ReceIpts
Prior Fiscal Year to Dale
2,566
(00)
4
18
Office of Bilingual Education and Minority Languages
Affairs
Office of Special Education and Rehabilitative Services:
Special education
Rehabilitation services and disability research
Special Institutions for persons with disabilities
Office of Vocational and Adult Education
13
13
51
51
40
40
235
196
10
46
235
196
10
46
697
560
30
311
697
560
30
311
653
504
35
352
653
504
35
352
Office of Postsecondary Education
College hOUSing loans
Student financial assistance
Federal family education loans
Higher education
Howard UniverSity
Other
1
594
400
64
24
4
2
-2
594
400
64
24
4
1
1,963
993
170
50
5
22
-21
1,963
993
170
50
5
1,993
1,155
182
55
-1
1,087
2
1,084
3,182
22
3,160
3,385
97
98
17
97
98
-17
90
109
7
30
36
-7
10
2,535
7,735
39
7,697
7,709
993
993
3,224
3,224
3,026
3,026
117
276
10
33
31
17
17
29
(" 0)
117
276
10
33
31
17
17
29
355
762
192
107
122
53
77
95
0)
355
762
192
107
122
53
77
95
350
742
279
105
109
86
85
59
350
742
279
105
109
86
85
59
530
(" 0)
530
1,763
(00)
1,763
1,814
1,814
149
26
123
477
108
324
15
153
108
-148
-159
-15
506
131
9
27
26
-48
-28
-9
179
1,492
487
4,925
Total-Office of Postsecondary Education
Office of Educational Research and Improvement
Departmental management
Proprietary receipts from the public
Total-Department of Education
........................
Department of Energy:
AtomiC energy defense actiVities
Energy programs:
General sCIence and research activities
Energy supply, Rand D activities
Uranium supply and enrichment activities
FOSSil energy research and development
Energy conservation
Strategic petroleum reserve
Nuclear waste dlspcsal fund
Other
Total-Energy programs
Power Marketing Administration
Departmental administration
Proprietary receipts from the public
Intrabudgetary transactions
Offsetting governmental receipts
Total-Department of Energy .. " ...................... ,.
30
36
2,545
48
-28
1,672
10
r
148
-159
5,413
27
-27
1,993
1,155
182
55
-1
27
3,358
10
90
109
-10
36
7,672
321
403
-94
-94
5,383
185
131
-403
4
-4
729
4,654
Table 5. Outlays of the U.S. Government, December 1993 and Other Periods-Continued
[$ millions]
This Month
Classification
Department of Health and Human Services, except Social
Security:
Public Health Service
Food and Drug Administration
Health Resources and Services Administration
Indian Health Service
Centers for Disease Control
National Institutes of Health
Substance Abuse and Mental Health Serv'lces
Administration
Agency for Health Care Policy and Research
Assistant secretary for health
Current Fiscal Year to Date
Gross IAPPlicablel Outlays
Outlays
Receipts
64
157
158
138
948
..)
(
217
-1
-48
(
..
)
Gross
Outlays
IApplicable
I 0 utlays
Receipts
Prior Fiscal Year to Date
Gross IAPPlic.able I Outla s
Outlays
Receipts
y
64
157
158
138
948
190
474
445
371
2,685
190
474
445
371
2,685
177
435
407
329
2,244
175
435
407
329
2.244
217
-1
-48
557
18
59
557
18
59
724
3
169
724
3
169
1,633
4,799
4,799
4,488
4,487
Total-Public Health Service ,
1,633
Health Care Financing Administration:
Grants to States for Medicaid
Payments to health care trust funds
7,088
3,791
7,088
3,791
21,107
11,302
21,107
11,302
18,127
14,063
18,127
14,063
9,226
93
9,226
93
24,485
273
24,485
273
21,736
235
21,736
235
9,319
9,319
24,758
24,758
21,971
21,971
5,683
164
5,683
164
14,918
415
14,918
415
13,349
261
13,349
261
5,846
5,846
15,334
15,334
13,609
13,609
-9
-9
64
64
176
176
26,036
26,036
72,565
72,565
67,947
67,947
17
61
3,814
17
61
3,814
1,005
199
7,719
1,005
199
7,719
1,548
268
6,742
1,548
268
6,742
3,892
3,892
8,923
8,923
8,559
8,559
1,285
230
46
32
88
4
80
334
354
1,285
230
46
32
88
4
80
334
354
4,075
804
93
82
194
573
192
658
922
4,075
804
93
82
194
573
192
658
922
3,911
435
82
102
178
34
52
686
899
3,911
435
82
102
178
34
52
686
899
374
374
755
755
438
( )
..
438
( )
2,828
2,828
8,348
8,348
6,817
6,817
102
34
102
34
-1,439
202
63
202
63
-4,177
151
54
151
54
-4,582
-3,791
-11,302
-11,302
-14,064
Federal hospital Insurance trust fund:
Benefit payments
Administrative expenses and construction
Interest on normalized tax transfers
Quinquennial transfers to the general fund from FHI
Total-FHI trust fund
Federal supplementary medical insurance trust fund:
Benefit payments
Administrative expenses and construction
Total-FSMI trust fund
Other
Total-Health Care Financing Administration
Social Security Administration:
Payments to Social Security trust funds
Special benefits for disabled coal miners
Supplemental security income program
Total-Social Security Administration
Administration for children and families:
Family support payments to States
Low income home energy assistance
Refugee and entrant assistance
Community Services Block Grant
Payments to States for afdc work programs
Interim assistance to States for legalization
Payments to States for child care assistance
Social services block grant
Children and families services programs
Payments to States for foster care and adoption
assistance
Other
Total-Administration for children and families
Administration on aging
Office of the Secretary
Proprietary receipts from the public
Intrabudgetary transactions:
Quinquennial transfers to the general fund
From FHI, FOASI, and FDI
Payments for health insurance for the aged:
Federal hospital insurance trust fund
Federal supplementary medical insurance trust fund
Payments for tax and other credits:
Federal hospital insurance trust fund
Other
Total-Department of Health and Human Services,
except Social Security ................................
1,439
-3,791
4,177
4,582
..
(
30,733
1,439
11
29,294
83,598
4,178
79,420
..
-14,064
..
)
73,953
(
4,584
)
69,370
Table 5. Outlays of the U.S. Government, December 1993 and Other Periods-Continued
[$ millions]
This Month
Classification
Department of Health and Human Services, Social
Security (off-budget):
Federal old-age and survivors Insurance trust fund:
Benefit payments
Administrative expenses and construction
Payment to railroad retirement account
Interest expense on Intertund borrowings
Interest on normalized tax transfers
QUinquennial transfers to the general fund from
FOASI
Total-FOASI trust fund
Federal disability Insurance trust fund:
Benefit payments
Administrative expenses and construction
Payment to railroad retirement account
Interest on normalized tax transfers
QUinquennial transfers to the general fund from FDI
Total-FDI trust fund
Proprretary receipts from the public
Intrabudgetary transactions'
Total-Department of Health and Human Services,
Social Security(off-budgetJ ..............................
Department of Housing and Urban Development:
Housing programs:
Public enterprise funds
Credit accounts:
Federal housing administration fund
Housing for the elderly or handicapped fund
Other
Rent supplement payments
Homeownership assistance
Rental hOUSing assistance
Rental housing development grants
Low-rent public housing
Public hOUSing grants
College housing grants
Lower Income housing assistance
Section 8 contract renewals
Other
Total-Housing programs
Public and Indian Housing programs
Low-rent public housing-Loans and other expenses
Payments for operation of low-income housing
............
proJects
Community Partnerships Against Crime
Total-Public and Indian Housing programs
Government National Mortgage Association:
Management and liqUidating functions fund
Guarantees of mortgage-backed securities
Total-Government National Mortgage Association
Community Planning and Development:
Community Development Grants
Other
Total-Community Planning and Development
Management and Administration
Other
Proprietary receipts from the public
Offsetting governmental receipts
Tota/-Department of Housing and Urban
Development .............................................
Gross IAPPlicable
Outlays
Receipts
Current Fiscal Year to Date
I Outlays
Gross
Outlays
I
Applic.eble
ReceIpts
I
Outlays
Prior Fiscal Year to Dete
Gross (APPlicable
Outlays
Receipts
I
OUt/
aYI
22.751
176
22.751
176
67.562
465
67.562
465
86.387
489
86.387
489
22.927
22.927
68.027
68,027
86,876
86,876
2,921
70
2,921
70
8,758
223
8,758
223
10.363
191
10,363
191
2,991
2,991
8,981
8,981
10,555
10,555
(' ')
-17
25,901
(* *J
15
14
575
-1
42
4
9
51
475
57
71
270
1
868
281
4
("')
(")
(")
(")
-1,001
-1,549
..
)
76,007
95,882
41
28
13
22
17
100
-59
42
4
9
51
1,683
374
117
14
28
162
1.334
175
349
198
117
14
28
162
1,405
149
(' ')
(' ')
71
270
1
868
281
4
327
867
5
2,631
811
10
327
867
5
2,631
811
10
1,912
400
59
14
17
164
13
159
607
5
2.195
523
6
-17
-1,001
25,901
76,007
(
(")
(")
-1,549
(
..
)
..
(
)
95,882
507
251
59
14
17
164
13
159
607
5
2,795
523
6
2,192
546
1,645
7,069
1,537
5,532
6,698
1,572
5,126
9
3
6
264
192
73
266
18
248
210
17
642
42
642
42
561
21
210
17
561
2t
236
3
234
948
192
756
848
18
1
132
-1
-7
-1
-96
( )
300
1
396
(" 'J
125
295
391
-95
125
133
-8
300
397
-97
295
391
-95
335
91
11
335
80
921
230
40
921
191
874
82
26
874
56
426
11
415
1,151
40
1,111
956
26
930
42
2
125
6
142
7
66
125
6
-66
42
2
22
3,023
714
12
-22
2,309
(
..)
9,598
2,230
7,368
..
3
142
7
-64
-3
2,074
8,873
64
8,947
830
Table 5. Outlays of the U.S. Government, December 1993 and Other Periods-Continued
[$ millions]
This Month
I
Classification
Gross IAPPlicable
Receipts
Outlays
Department of the Interior:
Land and minerals management:
Bureau of Land Management:
Management of lands and resources
Fire protection
Other
Minerals Management Service
Office of Surface Mining Reclamation and
Enforcement
Total-Land and minerals management
Water and science:
Bureau of Reclamation:
Construction program
Operation and maintenance
Other
Geological Survey
Bureau of Mines
43
-1
24
55
...........
...........
Fish and wildlife and parks:
United States Fish and Wildlife Service
National Biological Survey
National Park Service
........ ....
Total-Fish and wildlife and parks
............
135
17
81
185
135
17
81
185
77
77
83
83
495
495
502
502
23
19
57
43
17
14
66
56
133
127
46
64
6
66
56
69
127
39
70
75
117
158
50
25
2
23
19
43
43
15
7
70
75
92
158
43
159
15
143
428
70
358
470
32
438
104
22
103
104
22
103
278
22
353
278
22
353
279
279
390
390
229
229
653
653
669
669
86
42
9
86
42
8
319
-22
139
2
319
-22
137
322
18
81
3
322
18
79
136
135
436
2
434
422
3
419
10
3
10
3
-151
-5
121
32
121
32
-431
-21
156
34
151
431
-21
'
'
...........................
Department of Labor:
Employment and Training Administration:
Training and employment services
Community Service Employment for Older Americans
Federal unemployment benefits and allowances
State unemployment insurance and employment service
operations ...
Payments to the unemployment trust fund
Advances to the unemployment trust fund and other
funds
681
216
145
68
109
195
81
-6
..
(
167
10
514
2,143
216
145
68
109
185
81
-6
579
498
200
335
557
223
147
-2
..)
(
)
566
..)
-9
503
1,640
2,245
29
971
485
219
362
552
267
405
-178
81
579
498
200
335
528
223
147
-2
-81
110
2,427
3,082
(
.......................
145
36
62
176
145
36
62
176
28
-5
Department of Justice:
............
Legal activities
Federal Bureau of Investigation
Drug Enforcement Administration
Immigration and Naturalization Service
Federal Prison System
Office of Justice Programs ..
Other
Intrabudgetary transactions ..
............
Offsetting governmental receipts
Total-Department of Justice
Gross [APPlic.8ble[ Outlays
Receipts
Outlays
149
TerritOrial and international affairs
Departmental offices
Proprietary receipts from the public
Intrabudgetary transactions
Offsetting governmental receipts
Total-Department of the Interior
Gross /APPlicable [ 0 tl
Outlays
Receipts
u ays
149
Bureau of Indian Affairs:
Operation of Indian programs
Indian tribal funds
Other
Total-Bureau of Indian Affairs
43
-1
24
55
Prior Fiscal Year to Date
28
............
Total-Water and science
Outlays
Current Fiscal Year to Date
..)
(
156
34
-566
-9
..
(•• j
(
601
1,645
22
83
971
485
219
362
530
267
405
-178
-83
105
2,977
)
24
-24
34
773
2,538
340
29
16
340
29
16
1.020
94
42
1,020
94
42
996
93
36
996
93
36
35
35
-11
-11
54
2,253
54
2,253
582
582
2,296
2,296
250
250
807
13
Table 5. Outlays of the U.S. Government, December 1993 and Other Periods-Continued
[$ millions]
-
Classification
Department of Labor:-Continued
Unemployment trust fund
Federal-State unemployment Insurance:
State unemployment benefits
State administrative expenses
Federal administrative expenses
Veterans employment and training
Repayment of advances from the general fund
Railroad unemployment insurance
Other
Total-Unemployment trust fund
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross ./APPlicable/ Outlays
Outlays
Receipts
Gross IAPPlicablel Outlays
Outlays
Receipts
Gross /APPlicablel 0 tI
Outlays
Receipts
u ays
2,846
260
9
23
2,846
260
9
23
7,580
860
113
43
7,580
860
113
43
8,708
818
30
42
8,708
818
30
42
7
7
17
5
17
5
17
6
17
6
3,146
3,146
8,617
8,617
9,620
9,620
6
6
18
18
17
17
4,153
4,153
12,075
12,075
13.318
13,318
162
473
489
193
18
44
51
13
24
29
44
51
-557
150
37
66
59
113
51
-557
150
37
66
59
113
-1
-2,480
56
-649
153
36
68
70
104
-2,750
10,003
10,600
Other
Total-Employment and Training Administration
Pension Benefit Guaranty Corporation
Employment Standards Administration:
Salaries and expenses
Special benefits
Black lung disability trust fund
Other
Occupational Safety and Health Administration
Bureau of Labor Statistics
Other
Proprietary receipts from the public
Intrabudgetary transactions
39
201
18
44
51
13
24
29
44
..)
(
..
(
-16
)
231
-38
56
-649
153
36
68
70
104
-1
-2,750
-720
-2,480
3,818
9,988
187
64
187
64
430
156
430
156
564
137
564
137
34
8
34
8
125
102
34
125
102
34
119
100
33
119
100
33
Total-Administration of Foreign Affairs
293
293
847
847
954
954
International organizations and Conferences
Migration and refugee aSSistance
International narcotics control
Other
Proprietary receipts from the public
Intrabudgetary transactions
Offsetting governmental receipts
62
101
15
8
62
101
15
8
977
165
30
13
977
165
30
13
780
173
33
19
780
173
33
19
..
)
-125
-125
-165
-165
478
478
1,908
1,908
1,794
1,794
1,503
13
27
1,503
13
27
4,863
27
86
4,863
27
86
4,255
30
51
4,255
30
51
1,543
1,543
4,977
4,977
4,336
4,336
NatJonal Highway TraffiC Safety Administration
27
27
68
68
64
64
Federal Railroad Administration·
Grants to NatJonal Railroad Passenger Corporation
Other
41
(
.. )
41
214
95
3
214
93
180
92
3
180
89
41
(
41
309
3
307
271
3
269
Total-Department of Labor
.............................
Department of State:
Administration of Foreign Affairs·
Salaries and expenses
AcquisitJon and maintenance of buildings abroad
Payment to Foreign Service retirement and disability
fund
Foreign Service retirement and disability fund
Other
Total-Department of State ' .............................
Department of Transportation:
Federal Highway Administration·
Highway trust fund:
Federal-aid highways
Other
Other programs
Total-Federal Highway Administration
Total-Federal Railroad Administration
-720
3,858
(
39
..)
(
..)
14
-15
232
10,367
Table 5"
Outlays of the U"S" Government, December 1993 and Other Periods-Continued
[$ millions]
This Month
Current Fiscal Year to Date
Classification
Gross \APPlicablel Outlays
Outlays
Receipts
Department of Transportation:-Continued
Federal Transit Administration:
Formula grants
Discretionary grants
Other
Total-Federal Transit Administration
Federal Aviation Administration:
Operations
Airport and airway trust fund:
Grants-in-aid for airports
Facilities and equipment
Research, engineering and development
Operations
..............
Total-Airport and airway trust fund
Other
Gross lAPPlicable
Outlays
Receipts
I
0
utlays
Prior Fiscal Year to Date
Gross !APPlic.able
Outlays
Receipts
j
Outla s
y
117
129
700
117
129
700
257
369
874
257
369
874
438
349
102
438
349
102
946
946
1,500
1,500
890
890
-125
-125
563
563
512
512
141
169
14
574
141
169
14
574
500
455
50
574
500
455
50
574
615
434
46
570
615
434
46
570
898
898
1,578
1,578
1,665
1,665
r")
("")
r")
(" ")
r")
r")
("")
(" ")
(" ")
Total-Federal Aviation Administration
774
r")
773
2,141
("")
2,141
2,177
(" ")
2,177
Coast Guard:
Operating expenses
Acquisition, construction, and improvements
Retired pay
Other
263
20
43
7
263
20
43
7
669
63
114
27
669
63
114
25
658
58
114
46
658
58
114
45
333
333
872
871
876
875
50
28
197
127
141
127
260
112
13
(" ")
("")
r")
("")
15
3,740
10,205
-80
11
-81
11
-194
72
15
15
45
16
Total-Coast Guard
64
28
Maritime Administration
Other
Proprietary receipts from the public
Intrabudgetary transactions
Offsetting governmental receipts
Total-Department of Transportation
19
162
109
-1
-2
-19
8,984
125
8,859
-197
72
-191
50
3
-194
50
45
16
49
587
116
41
49
587
116
41
56
587
93
63
56
587
93
63
76
76
793
793
799
799
561
561
337
337
337
337
42
20
165
-56
-2
44
42
20
165
-56
-2
44
92
58
445
-24
-8
73
92
58
445
-24
-8
73
97
56
448
-7
29
76
97
56
448
-7
29
76
115
290
92
115
290
92
343
885
237
343
885
237
373
952
267
373
952
267
2-9
2
214
13
-9
2
214
13
34
7
789
35
34
7
789
35
50
5
517
30
(" ")
50
5
517
30
2,330
2,330
2,194
("")
2,194
r")
...................
Department of the Treasury:
Departmental offices:
Exchange stabilization fund
Other
Financial Management Service:
.............
Salaries and expenses
Payment to the Resolution Funding Corporation
Claims, judgements, and relief acts
Other
Total-Financial Management Service
Federal Financing Bank
Bureau of Alcohol, Tobacco and Firearms:
............
Salaries and expenses
Internal revenue collections for Puerto Rico
United States Customs Service
. . . . . . .. . . .
Bureau of Engraving and Printing
United States Mint
...........
Bureau of the Public Debt
Internal Revenue Service:
Processing tax returns and assistance
Tax law enforcement
Information systems
Payment where earned income credit exceeds liability
for tax
Health insurance supplement to earned income credit
Refunding internal revenue collections, interest
Other
Total-Internal Revenue Service
14
("")
(" ")
3,755
718
718
15
56
(" ")
r")
98
3
r")
13
-1
-2
62
10,143
3
Table 5.
Outlays of the U.S. Government, December 1993 and Other Periods-Continued
[5 millions]
Classilication
Department 01 the Treasury:-Continued
United States Secret Service
Comptroller 01 the Currency
Office of Thrift Supervlson
Current Fiscal Year to Date
Prior Fiscal Vear to Da..
Gross lAPPlicablej Outlays
Outlays
Receipts
Gross /APPlic.ablej Outlays
Outlays
Receipts
Gross !APPllcable/
Outlays
Receipts
OutlaY'
117
78
48
137
95
67
51.429
41.182
51.429
41.182
51.530
40,632
51.530
40,632
52.712
92.611
92.611
92.162
92.162
5
-312
17
586
17
-586
13
312
-245
-54
-2.492
196
-2.492
-196
-3.781
54
54,068
373
53,695
94,369
803
93,567
1.129
60
27
1.129
33
3.454
177
70
77
115
86
2.748
139
12
230
394
200
5.553
323
27
103
2
-70
-7
286
5
29
-18
43
33
22
Interest on the publiC debt·
Public Issues (accrual basis)
Special Issues (cash basis)
Total-Interest on the public debt
Department of Veterans AHairs:
Veterans Health Administration
Medical care
Other
Veterans Benefits Administration:
Public enterprise funds:
Guaranty and indemnity fund
Loan guaranty revolving fund
Other
Compensation and pensions
Readlustment benefits
Post·Vietnam era veterans education account
Insurance funds:
National service life
United States government life
Veterans special life
Other
Total-Veterans Benefits Administration
Construction
Departmental administration
Proprietary receipts from the public:
National service life
United States government life
Other
Intra budgetary transactions
17.349
35.363
17.349
35.363
52.712
72
38
45
149
154
131
2,748
139
12
103
2
12
-7
82
3.443
238
3.206
7.030
52
110
r ')
52
110
170
432
29
-29
r ')
62
.................
Total-Environmental Protection Agency
4,793
(
..
)
-8
356
4,438
11,256
2
13
70
76
179
115
32
-13
203
286
502
345
111
70
76
179
115
34
-1
...............
General Services Administration:
Real property activities
Personal property actiVities
InformatIOn Resources Management Service
Federal property resources actiVities
General activities
Proprietary receipts from the public
474
384
-31
18
2
11
16
..
(
................
384
..
)
( )
16
458
1,446
384
-31
18
2
11
126
-90
47
7
46
(
..
)
384
14
5
195
119
108
88
510
(
..)
135
14
13
137
82
54
438
13
-438
192
-3.781
-192
92,581
860
91,922
3.454
107
3.291
184
65
3,291
118
35
275
92
5,553
323
27
79
501
117
5,396
263
35
286
5
-58
-18
213
4
23
-15
6,521
6,618
170
432
150
406
104
136
114
-25
366
3
5,396
263
35
213
4
80
-57
-15
433
6,185
..
(
)
150
406
98
-98
..88)
-88
(
r')
175
-175
-8
146
-5
-146
-5
844
10,412
10,645
742
9,902
2
47
203
286
502
345
109
-47
233
310
537
328
99
3
-3
52
1,394
1,508
126
-90
47
7
46
-1
407
-43
10
4
43
(
-62
-1
-1
Environmental Protection Agency:
Program and research operations
Abatement. control. and compliance
Water infrastructure financing
Hazardous substance superfund
Other
Proprietary receipts from the public
Intrabudgetary transactions
Offsetting governmental receipts
Total-General Services Administration
117
91
52
-245
.....................
Total-Department of Veterans AHairs
43
29
21
4
5
Other
Proprietary receipts from the public
Receipts from off·budget federal entities
Intrabudgetary transactions
Offsetting governmental receipts
Total-Department of the Treasury
This Month
..)
134
n
233
310
537
328
98
2
44
-44
2
-2
47
1,481
407
-43
10
4
43
-1
421
421
Table 5. Outlays of the U.S. Government, December 1993 and Other Periods-Continued
[$ millions]
Classification
This Month
Current Fiscal Year to Date
Prior Fiscal Year to Date
Gross lAPPlicablel Outlays
Outlays Receipts
Gross lAPPlicablel 0 U
OuUays Receipts
u ays
Gross IAPPlicabie I OuUa s
OuUays Receipts
y
National Aeronautics and Space Administration:
Research and development ...................... .
Space flight, control, and data communications ..... .
Construction of facilities
...................... .
Research and program management ............... .
Other ........................................................ .
629
390
50
120
2
629
390
50
120
2
1,764
1,226
115
375
1,764
1,226
Total-National Aeronautics and Space
Administration " ....... , ................................. .
1,191
280
Office of Personnel Management:
Govemment payment for annuitants, employees health
and life insurance benefits ................................ .
Payment to civil service retirement and disability fund .... .
Civil service retirement and disability fund ................. .
Employees health benefits fund ........................... ..
Employees life insurance fund .............................. .
Retired employees health benefits fund ................... .
Other ....................................................... .
Intrabudgetary transactions:
Civil service retirement and disability fund:
General fund contributions ..................... .
Other .................................................... .
Total-Office of Personnel Management
Small Business Administration:
Public enterprise funds:
.. .......................... ..
Business loan fund .......
Disaster loan fund ....................................... ..
Other ..................................................... ..
Other ....................................................... ..
Total-Small Business Administration
Other independent agencies:
Action ....................................................... .
Board for Intemational Broadcasting ....................... .
Corporation for Public Broadcasting ....................... .
District of Columbia:
Federal payment .......................................... .
Other ..................................................... ..
Equal Employment Opportunity Commission ............... .
Export-Import Bank of the United States .................. .
Federal Communications Commission ...................... .
Federal Deposit Insurance Corporation:
Bank insurance fund ..................................... .
Savings association insurance fund ...................... .
FSUC resolution fund .................................... .
Affordable housing and bank enterprise ................. .
Federal Emergency Management Agency:
PubliC enterprise funds ................................... .
Disaster relief
............................... ..
Emergency management planning and assistance ...... .
Other
....... .....
.. .............................. .
Federal Trade Commission ......
. ................. ..
Interstate Commerce CommiSSion
................... .
Legal Services Corporation
........................ ..
National Archives and Records Administration ..... .
National Credit Union Administration:
Credit union share insurance fund ............... .
Central liquidity facility .................. ..
Other ..................................................... ..
375
1,815
1,361
127
374
1,815
1,361
127
374
4
4
4
4
1,191
3,484
3,484
3,681
3,681
280
873
873
832
832
8,895
-198
-308
8,356
3,441
320
2,976
1,213
114
1,385
124
2,976
-172
-10
1
1
(oo)
8
8
8,895
3,684
339
2
40
-3
-3
-9
115
3,882
647
2
3,678
637
2
8,356
-237
-317
(0 0)
(0 0)
2
40
39
39
-9
-12
-12
4,589
1,509
3,079
13,824
4,531
9,293
12,979
4,317
8,662
67
39
27
28
-21
214
80
120
254
202
123
1
rO)
('0)
9
42
42
117
4
rO)
94
-8
5
117
(. 0)
51
62
14
125
116
67
49
420
212
209
582
330
252
16
19
25
50
275
25
50
275
55
55
61
319
61
319
6
1
16
19
88
698
25
222
10
123
3
351
rO)
695
3
1,445
-5
491
(00)
46
148
32
22
24
25
-473
7
698
-2
52
904
10
698
-9
56
-597
21
799
2,251
-1,452
3,410
9
2
954
7
7
-133
3
12
56
307
30
(* 0)
-1,322
8
-140
822
(0 0)
1
22
148
32
22
198
465
65
47
21
10
96
40
rO)
6
2
6
2
185
18
125
339
32
673
8
698
-27
52
-335
24
-518
730
-53
562
46
65
21
10
117
45
-1
282
1
66
132
465
65
47
21
10
96
39
77
130
562
46
65
21
10
117
45
(* 0)
94
38
(00)
65
23
-12
12
-25
6
14
26
27
26
-12
6
7
39
38
6
7
1
6
7
17
24
3,928
8
448
65
23
1
5
-55
7
Table 5.
Outlays of the U.S. Government, December 1993 and Other Periods-Continued
[$ millions]
This Month
Classification
Gross [APPlicable [ Oullays
Oullays
Receipts
Other mdependent agencies:-Continued
National Endowment for the Arts
National Endowment for the Humanities
National Labor Relations Board
National SCience Foundation
Nuclear Regulatory CommiSSion
Panama Canal CommisSion
Postal Service
Public enterpnse funds (off-budget)
Payment to the Postal Service fund
Railroad Retirement Board
Federal windfall subSidy
Federal payments to the railroad retirement accounts
Regional rail transportation protective account
Rail Industry pension fund:
Advances from FOASDI fund
OASDI certifications
Administrative expenses
Interest on refunds of taxes
Supplemental annuity pension fund
Other
Intra budgetary transactions
Social Security eqUivalent benefit account
Payments from other funds to the railroad
retirement trust funds
Other
16
13
11
187
35
37
4,893
3
50
49
39
40
600
116
125
34,747
146
12,410
61
..23)
..)
69
12
47
37
43
562
108
125
-600
61
12.578
69
69
12
74
16
94
132
12.353
47
37
43
562
14
-7
225
69
74
16
-89
89
9
18
240
-268
268
20
18
719
3
-268
268
20
18
719
3
-347
263
18
5
710
3
-347
263
18
5
710
3
392
392
1.171
1.171
1,182
1,182
-12
-12
-16
-16
682
1,999
1,999
1,908
1,908
5.218
37
66
2.528
252
535
6,620
22
99
2.307
261
280
14.218
246
1,310
37
66
374
252
289
11
-7,598
22
99
692
261
269
28,139
23,828
4,311
31,792
33,775
-1,984
(" .)
(")
3.619
13
22
638
83
146
1.148
96
2,471
13
22
101
83
50
11,508
9,253
2,256
(' ')
(")
Undistributed offsetting receipts:
Other Interest
Total-Employer share. employee retirement
49
39
40
600
-3
-12
-89
89
9
18
240
..
(
Resolution Trust Corporation
Securities and Exchange Commission
Smithsonian Institution
Tennessee Valley Authority
United States Information Agency
Other
Employer share, employee retirement:
Leglslahve Branch
United States Tax CourtTax court Judges survivors annUity fund
The Judiciary
JudiCial survivors annuity fund
Department of Defense-Civil:
Military retirement fund
Department of Health and Human Services. except
Social Secunty'
Federal hospital Insurance trust fund'
Federal employer contnbutions
Postal Service employer contributions
Payments for military service credits
Department of Health and Human Services, SOCIal
Secunty (off-budget)
Federal old-age and survivors Insurance trust fund:
Federal employer contnbutlons
Payments for military service credits
Federal disability Insurance trust fund
Federal employer contnbutlons
Payments for military service credits
Department of State
Foreign Service retirement and disability fund
Office of Personnel Management
Civil service retirement and disability fund
Independent agencies
Court of veterans appeals retirement fund
13.010
Gross [ApPlicablei
Outlays
Receipts
OutlaY'
Outlays
(
682
....................
119
136
l
(")
( )
Total-Railroad Retirement Board
Total-Other independent agencies
Gross [APPlicable
Oullays
Receipts
16
13
11
187
32
--13
23
Prior Fiscal Year to Date
Current Fiscal Year to Date
537
..
r .)
(
3,909
2,154
..)
(
(")
..
(
)
..
(
)
)
n
1.615
("'J
(")
r')
r'J
(")
-998
-998
-3.192
-3,192
-3,296
-3,296
--159
-37
-159
-37
-476
-110
-476
-110
-453
-114
-453
-114
-425
-425
-1.275
-1.275
-1,206
-1.206
-46
-46
-138
-138
-129
-129
-9
-9
-26
-26
-26
-26
-920
-920
-2,397
-2.397
-2.307
-2.307
- 2.592
-2,592
-7,613
-7.613
-7,532
-7,532
18
Table 5. Outlays of the U.S. Government, December 1993 and Other Periods-Continued
[$ millions]
This Month
Current Fiscal Year to Date
Gross !APPlicable!
Outlays
Receipts
Outlays
Gross JAPPlicable!
Outlays
Receipts
Outlays
Prior Fiscal Year to Date
Classification
Undistributed offsetting receipts:-Continued
Interest received by trust funds:
The Judiciary:
Judicial survivors annuity fund
Department of Defense-Civil:
Corps of Engineers
Military retirement fund
Education benefits fund
Soldiers' and airmen's home permanent fund
Other.
Department of Health and Human Services, except
Social Security:
Federal hospital insurance trust fund
Federal supplementary medical insurance trust fund
Department of Health and Human Services. Social
Security (off-budget):
Federal old-age and survivors insurance trust fund
Federal disability insurance trust fund
Department of Labor:
Unemployment trust fund
Department of State:
Foreign Service retirement and disability fund
Department of Transportation:
Highway trust fund
Airport and airway trust fund
all spill liability trust fund
Department of Veterans Affairs:
National service life insurance fund
United States government life Insurance Fund
Environmental Protection Agency
National Aeronautics and Space AdministratJon
Office of Personnel Management:
Civil service retirement and disability fund ...
Independent agencies:
Railroad Retirement Board
Other.
Other
Total-Interest received by trust funds
..
(' ')
(
)
..)
78
(.. )
)
..)
78
(.. )
-4
(.. )
-5.216
-974
-5,216
-974
-5,249
-1,003
-13,561
-332
-13,561
-332
-1,239
Gross IAPPlicable
Receipts
Outlays
I
Outla s
y
-4
-4
-4
-1
-4.925
-1
-4,925
-17
-8
-4.659
-18
-7
-4,659
-18
-7
-5,249
-1,003
-5,203
-871
-5,203
-871
-13,660
-364
-13,660
-364
-12,455
-496
-12,455
-496
-1.239
-1,257
-1,257
-1,318
-1,318
-279
-279
-280
-280
-267
-267
-665
-414
-665
-414
(
(
..)
-701
-416
-2
-701
-416
-2
-743
-546
-3
-743
-546
-3
-533
-5
-536
-5
-536
-5
-537
-5
-537
-5
(
..
(
-4
(
..)
-533
-5
-17
(
..
..)
..)
(
(
..-8)
..
(
....
( )
(' ')
(
(
....
)
)
(
(
..
(
-4
)
(
..
)
)
)
)
(
(
..
..
)
(
(
)
..)
..)
-12,846
-12.846
-12,908
-12,908
-12,385
-12,385
-37
-37
(
(
..-3
)
-188
-3
-31
-188
-3
-31
-322
-4
-11
-322
-4
-11
-36.027
-41,560
-41,560
-39,856
..)
-3
-36,027
Rents and royalties on the outer continental shelf lands
Sale of major assets
145
-145
145
-38,764
627
-627
627
-49,800
-39,856
716
-716
716
-48,103
Total-Undistributed offsetting receipts ............... .
-38,619
Total outlays ................................................ .
151,374
17,707
133,667
426,712
47,467
379,246
443,583
57,987
385,596
Total on-budget .......................................... .
134,944
12,959
121,985
353,733
34,456
319,277
349,409
45,633
303,775
Total off-budget .......................................... .
16,430
4,747
11,683
72,979
13,010
59,969
94,174
12,353
-49,173
-47,388
81,821
-8,252
-92,055
-120,465
Total on-budget
-22,263
-104,992
-107,930
Total off-budget
+14,012
+12,936
-12,535
Total surplus (+) or deficit ............................... .
MEMORANDUM
Receipts offset against outlays
[$ millions]
Current
Fiscal Year
to Date
Proprietary receipts
Receipts from off-budget federal entities
Intrabudgetary transactions
Governmental receipts
Total receipts offset against outlays
Comparable Period
Prior Fiscal Year
10,683
11,489
78,098
417
89,199
81,174
429
93,692
No Transactions
(' ') Less than $500.000
Note' Details may not add to totals due to rounding
'Includes FICA and SEC A tax credits. non-contributory military service credits. special benefits
for the aged, and credit for unnegoliated OASI benefit checks.
'Prior month adjustment
'The Postal Service accounting year is composed of thirteen 28·day accountmg penods. To
conform With the MTS calendar·month reporting baSIS utilized by all other Federal agencies, the
MTS reflects USPS results through 12/10 and estimates for $1.272 million through 12/31
19
Table 6.
Means of Financing the Deficit or Disposition of Surplus by the U.S, Government, December 1993 and Other PeriOds
-------- - - - - -
[$ millions]
._-
------
Net Transactions
(-) denotes net reduction of either
liability or asset accounts
Assets and Liabilities
Directly Related to
Budget Off·budget Activity
Account Balances
Current Fiscal Year
Beginning of
Fiscal Year to Date
This Month
This Year
liabIlity accounts:
Borrowing from the public
PubliC debt SeCUrities, Issued under general FinanCing authOrities
Obligations of the United States, Issued by
Unoted States Treasury
Federal FinanCing Bank
Total, publiC debt securilies
Plus premium on public debt securities
Less dIscount on public debt secunlles
Total publiC debt securities net of Premium and
discount
Deduct:
Federal seCUrities held as Investments 01 government accounts
(see Schedule D)
Less discount on federal secunt,es held as Investments of
government accounts
Net federal securities :,eld as Investments of government
accounts
This Year
I This Month
42,152
124,198
112,389
4,396,489
15,000
4,478,535
15,000
4,520,687
15,000
42,152
124,198
112,389
4,411.489
4,493.535
4,535,687
-8
-3.089
41
-5,917
-15
61
1,373
86,397
1,422
83.570
1,414
80,480
45,233
130.156
112,312
4.326,466
4,411.389
4,456,622
Agency SeCUrities, Issued under speCial financing authorities (see
Schedule B for other Agency borrowing, see Schedule C)
Total federal securities
I Prior Year
Close of
This month
1,626
1,930
667
24,682
24.987
26,613
46,859
132,086
112,979
4.351,149
4,436,376
4.483,235
29,656
36,771
31,371
1,116.740
1,123,856
1,153,512
-3,208
-6,037
-114
12,709
9,880
6,672
32,864
42,808
31,485
1,104,032
1,113,976
1,146,840
13,995
89,278
81,494
3,247,117
3,322,400
3,336,395
Accrued Interest payable to the public
Allocations of speCial drawing rights
Deposit funds
Miscellaneous liability accounts (InCludes checks Outstanding etc.)
9,135
-51
-4,204
1,411
-656
-220
-1,338
-2,517
-981
-479
-557
8,257
43,819
6,950
5,975
2,928
34,028
6.780
8,841
-1,001
43,163
6,730
4,637
410
Total liability accounts .................................................. ..
20,287
84,548
87,734
3,306,788
3,371,048
3,391,335
8,476
8,937
-2,480
-303
-17,094
-11,804
17,289
35.217
6,334
25,977
14,809
34,914
17,412
-2,783
-28,899
52,506
32,310
49}23
-68
-179
-3.608
2,000
9,203
-8,018
9,091
-8.018
9,023
-8,018
-1,608
1.185
1,073
1,005
79
-8
12.063
-1,979
-9.348
-20
31,762
5,864
-25,514
31,762
4,948
-25,493
-100
31,762
4,737
-25,435
Total borrowing from the public
Asset accounts (deduct)
Cash and monetary assets:
US. Treasury operating caSh:'
Federal Reserve account
Tax and loan note accounts
Balance
SpeCial drawing rights:
Total holdings
SDR certificates Issued to Federal Reserve banks
Balance
Reserve POSition on the U.S. quota In the IMF:
US subscnptlon to International Monetary Fund:
Direct quota payments
Maintenance of value adjustments
Letter of credit Issued to IMF
Dollar deposits With the IMF
Receivable/Payable (-) for interim maintenance of value
adjustments
-68
-179
-211
58
-1,127
-6
-98
-106
143
763
1,276
90
710
853
-16
-292
1,991
12,103
11,827
11,811
Loans to International Monetary Fund
Other cash and monetary assets
-2,830
54
-2,626
(' .)
22,414
( )
25,298
22,468
Total cash and monetary assets
Balance
..
(")
14,499
-3,201
-31,141
88,208
70,508
85,007
Net activity. guaranteed loan finanCing
Net activity. direct loan financing
Miscellaneous asset accounts
-576
203
-2,026
-1,449
848
-3,527
-677
880
-1,710
-6,320
6.862
-636
-7,193
7,507
-2,137
-7,769
7,710
-4,164
Total asset accounts
................................................... ..
12,100
-7,329
-32,648
88,114
68,685
80,785
Excess of liabilities (+) or assets (-) .................................. ..
+8,188
+91,877
+120,382
+3,218,674
+3,302,363
+3,310,551
64
178
83
114
178
+8,252
+92,055
+120,465
+3,302,477
+3,310,729
Transactions not applied to current year's surplus or deficit (see
Schedule a for Details)
Total budget and off-budget federal entities (financing of deficit (+)
or disposition of surplus (-)) ............................................ ..
I~~alor sources Of Information used to determine Treasury 5 operating cash Income Include the
Oall\' Ba1a"ce WirE'S trom Federal Reserve Banks. reportIng from the Bureau of PublIC Debt
elE'-('t'C'nIC :'anste r ::; t>:rOLJgh me Treasury FinanCial Communication System and reconCIling wires
!'orr I'"'~erral Re\e"c.Je Centers Operating cash IS presented on a modified cash baSIS. depoSits
are 'e l ec~o::>.,j :1S '0::'.:0::> ,t'(! and ",Ithdrawals are reflected as proceSSed
+3,218,674
NO Transactions
r .)
Less than $500.000
Note. Details may not add to totals due to rounding
20
Table 6.
Schedule A-Analysis of Change in Excess of Liabilities of the U.S. Government, December 1993 and
Other Periods
[$ millions]
Fiscal Year to Date
Classification
This Month
This Year
...
Excess of liabilities beginning of penod:
Based on composition of unified budget in preceding period
Adjustments during current fiscal year for changes in composition
of unified budget:
Reclassification of the Disaster Assistance Liquidating Account.
FEMA. to a budgetary status ........... . ......... .
Revisions by federal agencies to the prior budget results
Reclassification of Thrift Savings Plan Clearing Accounts to a
non-budgetary status .................................. .
Reclassification of Deposit in Transit Differences (Suspense)
Clearing Accounts to a budgetary status .......... .
Excess of liabilities beginning of period (current basis) ...... .
Budget surplus (-) or deficit:
Based on composition of unified budget in prior fiscal yr ..
Changes in composition of unified budget ..... . ............ .
Total surplus (-) or deficit (Table 2) ............. .
3,302,363
I
Prior Year
3,218,965
2,964,066
-291
101
(")
..
(
)
174
3,302,363
3,218,674
2,964,341
8,252
92,055
120,465
8,252
92,055
120,465
Total-on-budget (Table 2)
22,263
104,992
107,930
Total-off-budget (Table 2)
-14,012
-12,936
12,535
-64
-178
-83
-64
-178
-83
3,310,551
3,310,551
3,084,722
Transactions not applied to current year's surplus or deficit:
Seigniorage ............................. . ...................... .
Total-transactions not applied to current year's Surplus or
deficit ......................................................... .
Excess of liabilities close of period .................................. .
Table 6. Schedule 8-Securities isued by Federal Agencies Under SpeCial Financing Authorities, December 1993 and
Other Periods
[$ millions]
Net Transactions
(-) denotes net reduction of either
Liability accounts
Account Balances
Current Fiscal Year
Classification
Fiscal Year to Date
This Month
I Prior Year
This Year
Agency securities, issued under special financing authorities:
Obligations of the United States, issued by:
Export-Import Bank of the United States ............ .
Federal Deposit Insurance Corporation:
Bank insurance fund ............................................... .
FSLlC resolution fund ..................................... .
Obligations guaranteed by the United States, issued by:
Department of Defense:
Family housing mortgages ........................ .
Department of Housing and Urban Development:
Federal Housing Administration ..................... .
Department of the Interior:
Bureau of Land Management
Department of Transportation:
Coast Guard:
Family housing mortgages ............................ .
Obligations not guaranteed by the United States, issued by:
Legislative Branch:
Architect of the Capitol .............................. .
Independent agencies:
Farm Credit System Financial ASSistance Corporation
National Archives and Records Administration ..
Tennessee Valley Authority ................... .
..
..
... No Transactions.
21
(")
(")
(")
93
943
93
943
93
943
(")
(")
7
6
6
(
)
42
73
213
255
255
13
13
13
1,626
Note: Details may not add to totals due to rounding.
I This Month
)
1,624
(' 'J Less than $500.000
This Year
Close of
This month
(
..
)
..
(")
(
3
176
179
180
1,885
590
1,261
302
21,675
1,261
302
21,935
1,261
302
23,560
1,930
667
24,682
24,987
26,613
4
Total, agency securities
Beginning of
(
)
Table 6.
Schedule C (Memorandum)-Federal Agency Borrowing Financed Through the Issue of Public Debt Securities,
December 1993 and Other Periods
[$ millions)
Account Balances
Current Fiscal Year
Transactions
Classification
Beginning of
Fiscal Year to Date
This Month
I
This Year
Borrowing from the Treasury:
Funds Appropriated to the President
International Security Assistance
Guaranty reserve fund
Agency for International Development:
HouSing and other credit guaranty programs
Overseas Private Investment Corporation
Depar1ment of Agriculture
Foreign assistance programs
Commodity Credit Corporatton
Farmers Home Administration:
Agriculture credit Insurance fund
Self-help housing land development fund
Rural housing Insurance fund
Rural Development Administration'
Rural development Insurance fund
Rural development loan fund
Federal Crop Insurance Corporation:
Federal crop Insurance corporation fund
Rural Electrification Administration:
Rural communication development fund
Rural electrification and telephone revolving fund
Rural Telephone Bank
Depar1ment of Commerce:
Federal ship finanCing fund, NOAA
Depar1ment of Education'
Guaranteed student loans
College housing and academic facl"ties fund
College housing loans
Depar1ment of Energy'
Isotope production and distribution fund
BonneVille power administration fund
Depar1ment of Housing and Urban Development'
Housing programs
Housing for the ederly and handicapped
Public and Indian housing:
Low-rent pub"c housing
Depar1ment of the Interior
Bureau of Reclamation Loans
Bureau of Mines, Helium Fund
Bureau of Indian AffairS
RevolVing funds for loans
Department of Justice
Federal prison Industries, Incorporated
Department of Transportation:
Federal Railroad Administration
Railroad rehabl"tatlon and Improvement financing funds
Settlements of railroad "tlgatlon
Amtrak COrridor Improvement loans
Regional rail reorganization program
Federal AViation Administration
Alfcraft purchase loan guarantee program
Depar1ment of the Treasury
Federal Financing Bank revolVing fund
Depar1ment of Veterans AffairS
Loan guaranty revolVing fund
Guaranty and Indemnity fund
Dlfect loan revolVing fund
Vocational rehabilitation revolVing fund
Envlfonmental Protection Agency
Abatement, control and compliance loan program
Small BUSiness Administration
Business loan and revolVing fund
1.977
-13,250
-2,385
This Year
Prior Year
This Month
348
348
125
8
125
8
125
8
13
-3,874
193
24,745
193
9,518
193
11,495
80
5,771
1
2,910
3,386
1
2,910
3,386
1
2,910
1,680
5
1,670
5
1,670
5
113
113
113
25
8,099
802
55
8,379
834
55
8,341
818
2,058
154
460
2,058
168
460
2,058
168
460
r .)
-10
31
242
16
1
348
7
-38
-16
Close of
This month
5
36
..)
(
-2
13
58
1
200
13
2,332
13
2,390
13
2,390
-475
185
8,959
8,484
8,484
110
110
110
5
252
5
252
5
252
17
17
17
20
20
20
8
-39
2
39
8
-39
2
39
-39
2
39
..
)
( )
2
..
(
)
(. 0)
(
..
)
8
(
1,697
..)
-1,141
(
.. )
..
22
)
)
(
..
-9,428
114.329
111,490
113,187
-678
8
( )
( )
860
83
1
2
860
83
1
2
860
83
12
12
12
3,203
3,203
3,203
..
..
(
..
(
8
Table 6, Schedule C (Memorandum)-Federal Agency Borrowing Financed Through the Issue of Public Debt Securities
December 1993 and Other Periods-Continued
'
[$ millions]
Account Balances
Current Fiscal Year
Transactions
Classification
Fiscal Year to Date
This Month
This Year
Borrowing for the Treasury:-Contmued
Other independent agencies:
Export-Import Bank of the United States
Federal Emergency Management Agency:
National insurance development fund
Pennsylvania Avenue Development Corporation:
Land aquisition and development fund
Railroad Retirement Board:
Railroad retirement account
Social Security equivalent benefit account
Smithsonian Institution:
John F. Kennedy Center parking facilities
Tennessee Valley Authority
Total agency borrowing from the Treasury
financed through public debt securities issued
..................
Borrowing from the Federal Financing Bank:
Funds Appropriated to the President:
Foreign military sales
Department of Agriculture:
............
Rural Electrification Administration
Farmers Home Administration:
Agriculture credit insurance fund
Rural housing insurance fund ...
Rural development insurance fund
Department of Defense:
Department of the Navy
Defense agencies
Department of Education:
Student Loan Marketing Association
Department of Health and Human Services.
Except Social Security:
Medical facilities guarantee and loan fund
Department of Housing and Urban Development:
Low rent housing loans and other expenses
Community Development Grants
Department of Interior:
Territorial and international affairs ........... , ..
Department of Transportation:
...........
Federal Railroad Administration
Department of the Treasury:
Financial Management Service
General Services Administration:
Federal buildings fund
Small Business Administration:
BUSiness loan and investment fund
Independent agencies:
Export-Import Bank of the United States
Pennsylvania Avenue Development Corporation
Postal Service
Resolution Trust Corporation
Tennessee Valley Authority
Washington Metropolitan Transit Authority
Total borrowing from the Federal Financing Bank ................
This Year
Prior Year
I
Close of
This month
This Month
-2
811
16
386
1.199
1.197
125
125
6
42
42
167
(")
76
76
76
739
2.128
2.690
2.128
3.148
2.128
3.405
20
150
20
150
20
150
258
...........
I
Beginning of
716
4,002
-15,248
-12,670
183,196
163,946
167,948
-13
-38
-58
4.083
4.058
4.045
17
-75
-7
22.252
22.160
22.177
8.908
26,036
3.675
8.908
26.036
3.675
8.908
26.036
3.675
1.624
-96
1.624
-96
1.624
-96
4.790
4.760
4,760
85
85
84
1.801
131
1.747
118
1.747
117
23
23
23
17
16
-30
..
(
)
('0)
-1
-54
-14
-30
-52
-10
-1
-1
17
-30
-21
30
9
61
391
1.436
1,488
1,497
-5
-20
-36
670
655
650
-485
10
-485
27
1.500
-1.146
-490
16
537
-9.332
-335
5.795
150
9.732
31.688
6.325
177
5.795
166
9.732
29.042
6.325
177
5.309
176
9.732
30.542
6.325
842
-9,428
129,332
126,493
128,190
(")
665
665
1,697
-1,142
.. No Transactions.
(' ') Less than $500.000
Note: Details may not add to totals due to rounding
Note: This table includes lending by the Federal Financing Bank accomplished by the purchase
of agency financial assets. by the acquisition of agency debt securities. and by direct loans on
behalf of an agency. The Federal Financing Bank borrows from Treasury and issues its own
securities and in turn may loan these funds to agencies in lieu of agencies borrowing directly
through Treasury or iSSUing their own securities.
23
Table 6.
Schedule D-Investments of Federal Government Accounts in Federal Securities, December 1993 and
Other Periods
[$ millions]
Securities Held as Investments
Current Fiscal Year
Net Purchases or Sales (-)
Classification
This Year
Federal funds:
Department of Agriculture
Department of Commerce
Department of Defense-Military
Defense cooperation account
Department of Energy
Department of HOUSing and Urban Development:
HOUSing programs
Federal hOUSing admlmstratlon fund:
Public debt securities
Government National Mortgage Association:
Management and liqUidating functions fund:
Public debt securities
Agency securllies
Guarantees of mortgage-backed securities:
Public debt securities
Agency securities
Other
Department of the Interior:
Public debt securities
Department of Labor
Department of Transportation
Department of the Treasury
Department of Veterans Affairs:
Canteen service revolVing fund
Veterans reopened insurance fund
Servicemen's group life Insurance fund
Independent agencies:
Export-Import Bank of the Umted States
Federal Deposit Insurance Corporation:
Bank Insurance fund
Savings association insurance fund
FSLlC resolution fund
Public debt securities
Federal Emergency Management Agency:
National flood Insurance fund
National Credit Union Administration
Postal Service
Tennessee Valley Authority
Other
Other
This Year
Prior Year
-2
(" .)
I
Close 01
This month
This Month
10
2
7
12
3
-16
148
-830
23
9
4.081
9
4.246
9
4,229
-201
-120
-422
5,214
5,295
5,094
)
9
20
8
20
9
20
..78
3
3.221
1
191
3,312
1
213
3,313
2
163
..
(
2
1
-50
92
1
-28
-24
-3,368
3
-8
158
-6,560
28
-67
192
-75
22
1,774
2,508
16,590
881
5,773
2,689
13,398
906
5,714
2,666
10,030
3
21
-109
3
16
-109
-2
18
-25
38
518
150
38
513
150
41
534
41
381
541
221
76
237
618
1,335
-7
1,532
-6
556
4,325
1,283
4,522
1,285
5,857
1,277
139
741
359
828
1,431
1,569
18
8
1,619
1
251
-71
6
1,073
1,570
2
-161
12
48
648
-296
-11
52
71
2,764
3,027
3,452
853
2,715
2,753
4,092
3,403
854
2,303
2,771
4,100
5,022
855
2,554
4
-1,207
1
2,343
( )
58,589
21
57,378
21
57,382
22
5
-1.206
2,343
58,610
57,399
57,404
6
5
..)
4
27
5
5
26
27
3
-1
( )
212
5
229
184
( )
..
233
184
(")
844
151
799
156
801
157
96.690
1,213
111,026
1,234
109,830
1,221
.............................................
Trust funds:
Legislative Branch
library of Congress
United States Tax Court
Other
The JudiCiary
JudiCial retirement funds
Department of Agriculture
Department of Commerce
Department of Defense-Military:
VOluntary separation Incentive fund
Other
Department of Defense-CIvil'
Military retirement fund
Other
1
3
2
1
5
Total public debt securities
Total agency seCUrities
Total Federal funds
Beginning of
Fiscal Year to Date
This Month
.. )
(
..
(
)
4
4
..)
(
(
..
)
.. )
20
179
( )
2
-43
(
..
(
)
..
..2)
(
(
..
5
-1,196
-13
24
13,140
8
12,998
136
909
5,706
Table 6, Schedule D-Investments of Federal Government Accounts in Federal Securities, December 1993 and
Other Periods-Continued
[$ millions]
Securities Held as Investments
Current Fiscal Year
Net Purchases or Sales (-)
Classification
Fiscal Year to Date
This Month
Beginning of
1
This Year
This Year
Prior Year
I This Month
Close of
This month
Trust Funds-Continued
Department of Health and Human Services, except Social Security:
Federal hospital insurance trust fund:
PubliC debt securities ....................... .
Federal supplementary medical insurance trust fund
Other
.... .......
. .......... .
Department of Health and Human Services, Social Security:
Federal old-age and survivors insurance trust fund:
PubliC debt securities ............................... .
Federal disability insurance trust fund
........... .
Department of the Interior:
Public debt securities ............ .
Department of Justice
........... .
Department of Labor:
Unemployment trust fund ..... . ........................ .
Other ..... .
Department of State:
Foreign Service retirement and disability fund
Other
.... ........ ...
. ................. .
Department of Transportation:
Highway trust fund
....................... .
Airport and airway trust fund
..................... .
Other ...
. ............................................ .
. ................ .
Department of the Treasury ..........
Department of Veterans Affairs:
General post fund, national homes
National service life insurance:
Public debt securities .............. .
................ .
United States government life Insurance Fund
Veterans special life insurance fund .................... .
Environmental Protection Agency ............... .
National Aeronautics and Space Administration
Office of Personnel Management:
Civil service retirement and disability fund:
PubliC debt securities .'
...................................... .
Employees health benefits fund ....
. ........... .
Employees life insurance fund ............................ . .......... .
Retired employees health benefits fund ................... .
Independent agencies:
Harry S. Truman memorial scholarship trust fund ........ .
Japan-United States Friendship Commission ......... .
Railroad Retirement Board
.......... .
Other..
. .................... .
4,496
879
8
2,726
1,594
30
3,938
5,800
27
126,078
23,268
659
124,309
23,983
682
128,804
24,862
690
14,338
-407
13,825
-1,227
213
-1,697
355,510
10,237
354,997
9,416
369,335
9,010
12
-24
118
82
-77
169
184
290
106
302
82
-983
-11
-730
-28
-1,621
-30
36,607
53
36,860
35
35,877
25
-8
5
322
50
12
6,662
38
6,675
( )
6,667
50
803
-310
165
1
-78
266
-64
53
-81
22,004
12,672
1,675
209
20,891
13,012
1,690
147
21,694
12,837
1,676
132
39
38
38
)
11,666
125
1,462
5,477
16
11,544
122
1,450
5,463
16
11,984
122
1,508
5,551
16
7,604
199
318
( )
311,705
6,794
13,688
1
308,139
6,871
13,998
1
319,335
7,044
14,008
1
1
( )
-44
52
16
11,859
128
52
16
11,799
129
-175
-15
-15
(")
..
440
318
(")
-3
404
-1
59
88
47
74
132
(")
(")
11,196
173
10
(")
7,630
250
320
(")
(")
(")
-1
-60
1
-162
4
2
52
17
11,961
125
29,651
37,977
29,028
1,058,131
1,066,456
1,096,108
Total trust funds .......................... , ..................... .
29,651
37,977
29,028
1,058,131
1,066,456
1,096,108
Grand total ................................................................. .
29,656
36,771
31,371
1,116,740
1,123,856
1,153,512
Total public debt securities
(")
55
..
(
..
..
Note: Investments are in public debt securities unless otherwise noted
Note: Details may not add to totals due to rounding
... No Transactions
(" .) Less than $500,000.
25
Table 7.
Receipts and Outlays of the U.S. Government by Month, Fiscal Year 1994
[$ millions]
Classification
Receipts:
Individual Income taxes
Corporation Income taxes
Social Insurance taxes and
contnbutlons
Employment taxes and
contributions
Unemployment Insurance
Other retirement contnbutions
Excise taxes
Estate and glh taxes
Customs duties
Miscellaneous receipts
...........
........................
........................
Total-Receipts this year
(On-budget)
Jan.
March
Feb.
April
May
June
July
Aug.
Sept.
Fiscal
Year
To
Date
Comparable
Period
Prior
F.Y.
Oct.
Nov.
Dec.
37.680
2.158
37.634
2.208
54.183
28.239
129.497
32.604
121.548
26,525
29.440
1,046
343
3,597
990
1,708
1,706
31,525
2,773
385
4,808
1,305
1,688
781
33,273
259
423
4,695
1,179
1,584
1,582
94,238
4,078
1,150
13,101
3,475
4,980
4,069
89,651
3,549
1,213
11,766
2,940
4,708
3,233
78,668
83,107 125,416
287,191
......
55,864
58,700
99,721
214,285
25,694
72,905
......
......
22,804
24,407
[owl-R('celpls prIOr year
76,824
74,625 /13.683
265,132
(On hlld/iel!
55.048
5UJl
89.586
195,845
21,776
21,414
24.096
69,286
378
158
20
206
219
18
204
190
16
787
568
53
608
481
3,302
397
366
4,065
4,247
557
133
351
348
242
17
1,150
498
1,107
316
900
3,993
264
2,263
4,886
277
2,614
3,794
282
5,777
12,673
823
7,274
12,046
802
6,634
6.413
5,131
5,357
7,049
5,132
8,626
6,953
5,746
20,617
20,415
16,009
21,942
21,931
18,000
2,987
404
226
2,875
388
208
2,949
390
241
8,810
1,182
675
9,092
1,320
701
275
2,659
(Off-budget)
(Olf hud/iel)
Outlays
Legislative Branch
...
The Judiciary
Executive Office of the President .
Funds Appropriated to the President:
International Security Assistance
International Development
....
ASSistance
....
Other ..
Department of Agriculture:
Foreign assistance, special export
programs and Commodity Credit
Corporation
........ ....
....
Other
....
Department of Commerce
Department of Defense:
Military:
Military personnel
Operation and maintenance
Procurement
Research, development, test, and
evaluation
.....
Military construction
Family housing
Revolving and management
funds
Defense cooperation account
Other
Total Military
CIVil
Department of Education
Department of Energy ..
Department of Health and Human
Services, except Social Security:
PubliC Health Service
Health Care Financing Administration:
Grants to States for Medicaid
Federal hospital Ins. trust fund
Federal supp. med. Ins. trust
fund
Other
Social Secunty Administration
Administration for children and
families
Other
Department of Health and Human
ServiceS. Social Secunty·
Federal old-age and SUrviVorS ins.
trust fund
Federal disability Ins trust fund
Other
-217
-27
328
1,690
-37
211
23,147
21,796
25,752
70,695
74,848
2,550
1,805
1,710
2,515
3,356
1,723
2,550
2,535
1.492
7,614
7,697
4,925
7,508
7,672
4,654
1.467
1,700
1,633
4,799
4,487
7,394
7,432
6,626
8,006
7,088
9,319
21,107
24,758
18,127
21,971
4,650
3,783
2,970
4,838
3,801
2,061
5,846
3,782
3,892
15,334
11,366
8,923
13,609
14,239
8,559
2,797
-5,060
2,723
-5,060
2,828
-5,094
8,348
-15,214
6,817
-18,440
22,546
2,992
-977
22,554
2,998
-7
22,927
2,991
68,027
8,981
-1,001
86,876
10,555
-1,549
1,568
n
816
54
n
r ')
n
572
-17
26
Table 7.
Receipts and Outlays of the U.S. Government by Month, Fiscal Year 1994-Continued
[$ millions]
Classification
Oct.
Nov_
Dec_
Jan.
Feb.
March
April
May
June
July
Aug.
Sept.
Fiscal
Year
To
Date
Comparable
Period
Prior
F.Y.
Outlays-Continued
Department of Housing and Urban
Development
Department 01 the Interior
Department of Justice
Department of Labor:
Unemployment trust fund
Other
Department of State
Department of Transportation:
Highway trust fund
Other
Department of the Treasury:
Interest on the public debt
Other,
Department of Veterans Affairs:
Compensation and pensions
National service life
United States government life
Other,
Environmental Protection Agency
General Services Administration
National Aeronautics and Space
Administration
Office of Personnel Management
Small Business Administration
Independent agencies:
Fed, Deposit Ins, Corp,:
Bank insurance funds
Savings association fund
FSLlC resolution fund
Postal Service:
PubliC enterpnse funds (offbudget)
Payment to the Postal Service
fund
Resolution Trust Corporation
Tennessee Valley Authority
Other Independent agencies
Undistributed offsetting receipts:
Employer share, employee
retirement
Interest received by trust funds
Rents and royalties on outer
continental shelf lands
Other, .
2.645
527
749
2,415
600
905
2,309
514
773
7,368
1,640
2,427
6,873
1,645
2,977
2,710
652
843
2,762
61
586
3,146
673
478
8,617
1,386
1,908
9,620
748
1,794
1,774
1,377
1,601
1,651
1,516
2,224
4,891
5,253
4,286
4,574
17,638
-102
22,260
75
52,712
983
92,611
956
92,162
-241
1,400
66
2
1,338
430
239
1,406
57
1
1,705
506
-489
2,748
75
2
1,613
458
384
5,553
197
5
4,656
1,394
134
5,396
115
4
4,386
1,461
421
1,079
3,335
14
1,214
2,879
146
1,191
3,079
49
3,484
9,293
209
3,681
8,662
252
52
-5
(")
-182
4
8
-1,322
8
-140
-1,452
7
-133
-518
-1
282
-509
-237
146
-600
225
61
7
106
1,705
-1,169
168
2,048
2,471
101
991
61
1,310
374
4,744
69
-7,598
692
4,865
-2,449 -2,592
-5,173 -36,027
-7,613
-41,560
-7,532
-39,856
-145
-627
-716
(")
(")
(. ')
-2,572
-359
-21
(")
-461
n
Totals this year:
Total outlays .........................
124,090 121,488 133,667
379,246
......
(On-budget) """""".""""",
100,568
319,277
......
(Off-budget) " .. """ .. " .. ", .. ",
23,523
96,724 121,985
24,764
11,683
59,969
......
Total-surplus (+) or deficit (-) ..... -45,422 -38,381
-8,252
-92,055
......
(On-budget) ........................ -44,704 -38,024 -22,263
-104,992
......
+12,936
......
(Off-budget) ........................
TOlal borrowing from Ihe public ....
Total-outlarl prIOr year
-719
4,255
303, 77.'
21.841
(OfJbudgel)
81,494
83.432 116,568
103.775
(On·hud"cl)
89,278
13,995
385.590
(On-hud"cl)
(+)
71,028
125.616 107.351 152.629
(Off-hudget)
Total-surplus
year
-357 +14,012
23,9/9
36,06/
8/1\::/
-48,792 -]2,726 -38,947
-/:!O.465
-411.727 -32,22/ -26,982
- /()7930
or de/tell (-) prIor
-65
- 1:'.53.1
-505 -11.965
No transactions.
(. ') Less than $500.000
Note: Details may not add to totals due to rounding
27
Table 8. Trust Fund Impact on Budget Results and Investment Holdings as of December 31, 1993
[$ millions]
This Month
Fiscal Year to Date
Securities held as Investments
Current Fiscal Year
Classification
Beginning of
Receipts
Outlays
Excess
Receipts
Outlays
Excess
This Year
Trust receipts, outlays, and investments
held:
Airport
Black lung disability
Federal disability Insurance
Federal employees life and health
Federal employees retirement
Federal hospital Insurance
Federal old-age and survivors insurance
Federal supplementary medical insurance
Highways
Military advances
Railroad retirement
Military retirement
Unemployment
Veterans life Insurance
All other trust
14,476
12,725
37,207
6,077
2,132
1,260
353
920
2,217
567
411
898
51
2,991
-174
3,012
9,319
22,927
5,846
1,665
1,223
660
2.182
3,146
36
419
-31
2
-122
174
11,465
3,406
14,280
230
467
36
-307
1.263
-929
531
-8
Total trust fund receipts and outlays
and investments held from Table 60 ..........................................
Less: Interfund transactions
82,133
43.182
54,201
43,182
Trust fund receipts and outlays on the basIs
of Tables 4 & 5
38,951
Total Federal fund receipts and outlays
Less: Interfund transactions
Federal fund receipts and outlays on the
basis of Table 4 & 5
Less: oHsetting proprietary receipts
Net budget receipts & outlays
...............
16,915
26,446
81,706
16,189
5,088
3.193
1,107
20,025
7,809
630
1,073
1,578
150
8,981
-384
9,000
24,758
68,027
15,334
5,317
3,346
1,929
6,588
8,617
233
908
180
-1
-1,342
384
7,915
1,688
13,679
856
-229
-153
-822
13,437
-808
397
165
27,932
189,726
76,076
154,382
76,076
35,343
11,019
27.932
113.650
78,307
35,343
89,231
19
125,414
19
-36,184
181,420
253
308,819
253
-127,399
89.211
125,395
-36,184
181,167
308,566
-127,399
2,747
2.747
7,626
7.626
125,416
133,667
287,191
379,246
867
54
2,869
-8,252
This Month
12,672
13,012
12,837
10,237
20,484
318,583
126,078
355,510
23,268
22,004
9,416
20,871
315,048
124,309
354,997
23,983
20,891
9,010
21,054
326,239
128,804
369,335
24,862
21,694
11,961
96,690
36,607
13,253
10,784
11,859
111,026
36,860
13,116
11,069
11,799
109.830
35,877
13,615
11,153
1,058,131
1,066,456
1,096,108
-92,055
Note: Details may not add to totals due to rounding.
No transactions
Note Interfund receipts and outlays are transactions between Federal funds and trust funds
such as Federal payments and contributions, and Interest and profits on Investments
1,758
149
7,639
!
In
Federal
secuntles They have no net eHeet on overall budget receipts and outlays Since the receipts Side of
such transactions IS oHset against bugdet outlays In thiS table, Interfund receipts are shown as an
adjustment to amve at total receipts and outlays of trust funds respectively
28
Close of
This Month
Table 9. Summary of Receipts by Source, and Outlays by Function of the U.S. Government, December 1993
and Other Periods
[$ millions]
Classification
This Month
Fiscal Year
To Date
Comparable Period
Prior Fiscal Year
54,183
28,239
129,497
32,604
121,548
26,525
33,273
259
423
4,695
1,179
1,584
1.582
94,238
4,078
1,150
13,101
3,475
4,980
4,069
89,651
3.549
1,213
11,766
2,940
4,708
3,233
125,416
287,191
265,132
26,809
548
1,496
385
1,567
3,074
1,126
3,714
772
4,455
8,906
13,803
19,771
25,917
4,469
1,244
1,708
16,638
-2,737
74,080
7,244
4,439
1,320
6,263
6,753
143
10,095
2,600
13,139
26,897
36,023
53,877
77,012
10,486
3,560
3,665
49,891
-8,240
77,973
7,319
4,593
1,661
6,683
7,808
-6,556
8,880
2,453
12,287
23,632
31.074
50,914
97,430
9,969
3,633
4,939
49,152
-8,247
133,667
379,246
385,596
RECEIPTS
Individual income taxes
Corporation income taxes
Social insurance taxes and contributions:
Employment taxes and contributions
Unemployment insurance
Other retirement contributions
Excise taxes
Estate and gift taxes
Customs
Miscellaneous
Total ........................................................ .
NET OUTLAYS
National defense
International affairs
General science, space. and technology
Energy
Natural resources and environment
Agriculture
Commerce and housing credit
Transportation
Community and Regional Development
Education, training, employment and social services
Health
Medicare
Income security
Social Security
Veterans benefits and services
Administration of justice .
General government
Interest
Undistributed offsetting receipts
Total ........................................................ .
Note: Detarls may not add to totals due to roundrng.
29
Explanatory Notes
the employee and credits for whatever purpose the money was withheld
Outlays are stated net of offsetting collections (Including receipts of
revolVing and management funds) and of refunds Interest on the public
debt (public issues) IS recognized on the accrual baSIS. Federal credit
programs subject to the Federal Credit Reform Act of 1990 use the cash
basis of accounting and are diVided into two components. The portion 01
the credit activities that Involve a cost to the Government (mainly
subsidies) is included within the budget program accounts. The remaining
portion of the credit activities are in non-budget financing accounts
Outlays of off-budget Federal entitles are excluded by law from budget
totals. However, they are shown separately and combined with the on·
budget outlays to display total Federal outlays.
1. Flow of Data Into Monthly Treasury Statement
The Monthly Treasury Statement (MTS) IS assembled from data In the
central accounting system The major sources of data include monthly
accounting reports by Federal entities and disbursing officers. and dally
reports from the Federal Reserve banks. These reports detail accounting
transactions affecting receipts and outlays of the Federal Government
and off-budget Federal entities. and their related effect on the assets and
liabilities of the US Government Information is presented in the MTS on
a modified cash basIs
2. Notes on Receipts
Receipts Included In the report are classified into the following major
categories (1) budget receipts and (2) offsetting collections (also called
applicable receipts). Budget receipts are collections from the public that
result from the exercise of the Government's sovereign or governmental
powers. excluding receipts offset against outlays. These collections. also
called governmental receipts, consist mainly of tax receipts (including
social InSurance taxes), receipts from court fines, certain licenses, and
deposits of earnings by the Federal Reserve System. Refunds of receipts
are treated as deductions from gross receipts.
Offsetting collections are from other Government accounts or the
public that are of a business-type or market-oriented nature. They are
classified into two major categories: (1) offsetting collections credited to
appropriations or fund accounts, and (2) offsetting receipts (i.e., amounts
deposited in receipt accounts). Collections credited to appropriation or
fund accounts normally can be used without appropriation action by
Congress. These occur in two instances: (1) when authorized by law,
amounts collected for materials or services are treated as reimbursements to appropriations and (2) in the three types of revolving funds
(public enterprise, intragovernmental, and trust); collections are netted
against spending, and outlays are reported as the net amount.
Offsetting receipts in receipt accounts cannot be used without being
appropriated. They are subdiVided into two categories: (1) proprietary
receipts-these collections are from the public and they are offset against
outlays by agency and by function, and (2) intragovernmental fundsthese are payments into receipt accounts from Governmental appropriation or funds accounts They finance operations within and between
Government agencies and are credited with collections from other
Government accounts. The transactions may be intrabudgetary when the
payment and receipt both occur within the budget or from receipts from
off-budget Federal entities in those cases where payment is made by a
Federal entity whose budget authority and outlays are excluded from the
budget totals.
Intrabudgetary transactions are subdivided into three categories:
(1) Interfund transactions, where the payments are from one fund group
(either Federal funds or trust funds) to a receipt account In the other fund
group: (2) Federal intrafund transactions, where the payments and
receipts both occur within the Federal fund group; and (3) trust intrafund
transacllons. where the payments and receipts both occur within the trust
fund group.
Offsetting receipts are generally deducted from budget authority and
outlays by function, by subfunction, or by agency. There are four types of
receipts, however, that are deducted from budget totals as undistributed
offsetting receipts They are: (1) agencies' payments (including payments
by off-budget Federal entities) as employers into employees retirement
funds, (2) Interest received by trust funds, (3) rents and royalties on the
Outer Continer,tal Shelf lands, and (4) other interest (i.e., interest collected
on Outer Continental Shelf money in deposit funds when such money is
transferred Into the budget).
4. Processing
The data on payments and collections are reported by account symbol
into the central accounting system. In turn, the data are extracted from
this system for use In the preparation of the MTS.
There are two major checks which are conducted to assure the
consistency of the data reported:
1. Verification of payment data. The monthly payment activity reported by
Federal entities on their Statements of Transactions is compared to the
payment activity of Federal entities as reported by disbursing officers.
2. Verification of collection data. Reported collections appearing on
Statements of Transactions are compared to deposits as reported by
Federal Reserve banks.
5. Other Sources of Information About Federal Government
Financial Activities
• A Glossary of Terms Used in the Federal Budget Process, March
1981 (Available from the U.S. General Accounting Office, Gaithersburg,
Md. 20760). This glossary provides a basic reference document of
standardized definitions of terms used by the Federal Government in the
budgetmaking process.
• Datly Treasury Statement (Available from GPO, Was;1ington, D.C.
20402, on a subscription basis only). The Daily Treasury Statement is
published each working day of the Federal Government and provides data
on the cash and debt operations of the Treasury.
• Monthly Statement of the Public Debt of the United Stales
(Available from GPO, Washington, D.C. 20402 on a subscription baSIS
only). This publication provides detailed Information concerning the public
debt
• Treasury Bulletin (Available from GPO, Washington, D.C. 20402, by
subscription or single copy). Quarterly. Contains a mix of narrative, tables,
and charts on Treasury issues, Federal financial operations, intemational
statistics, and special reports.
• Budget of the United States Government, Fiscal Year 19_
(Available from GPO, Washington, D.C. 20402). This publication IS a
single volume which provides budget information and contains:
-Appendix, The Budget of the United States Government, FY 19_
-The United States Budget in Brief, FY 19 _
-Special Analyses
-Historical Tables
-Management of the United States Government
-Major Policy Initiatives
3. Notes on Outlays
Outlays are generally accounted for on the basis of checks issued,
electronic funds transferred, or cash payments made. Certain outlays do
not reqUire Issuance of cash or checks. An example is charges made
against appropriallons for that part of employees' salaries withheld for
taxes or savings bond allotments - these are counted as payments to
• United States Government Annual Repor1 and Appendix (Available
from Financial Management Service, U.S Department of the Treasury
Washington, D.C. 20227). This annual report represents budgetary
results at the summary level. The appendix presents the individual receipt
and appropriation accounts at the detail level.
30
Scheduled Release
The release date for the January 1994 Statement will be 2:00 pm EST February 22, 1994.
For sale by the Superintendent of Documents, US. Government Printing
Office, Washington, D.C. 20402 (202) 783-3238. The subscripllOn price is
$27.00 per year (domestic), $33.73 per year (foreign).
No single copies are sold
~~
UBLIC DEBT NEWS ........
&~~'"
)
~
.
./
...
De~artment
of the Treasury • Bureau of the Public Debt • Washington, DC 20239
FOR IMMEDIATE RELEASE
January 25, 1994
iJLIC
p~
CONTACT: Office of Financing
202-219-3350
RESULTS OF TREASURY'S AUCTION OF 2-YEAR NOTES
Tenders for $17,040 million of 2-year notes, Series AC-1996,
to be issued January 31, 1994 and to mature January 31, 1996
were accepted today (CUSIP: 912827N57).
The interest rate on the notes will be 4%. All
competitive tenders at yields lower than 4.11% were accepted in
full.
Tenders at 4.11% were allotted 43%. All noncompetitive and
sucessful competitive bidders were allotted securities at the yield
of 4.11%, with an equivalent price of 99.791. The median yield
was 4.09%; that is, 50% of the amount of accepted competitive bids
were tendered at or below that yield.
The low yield was 4.05%;
that is, 5% of the amount of accepted competitive bids were
tendered at or below that yield.
TENDERS RECEIVED AND ACCEPTED (in thousands)
--
TOTALS
Received
$48,617,280
Accepted
$17,040,220
The $17,040 million of accepted tenders includes $822
million of noncompetitive tenders and $16,218 million of
competitive tenders from the public.
In addition, $1,010 million of
high yield to Federal Reserve Banks
international monetary authorities.
of tenders was also accepted at the
Reserve Banks for their own account
securities.
LB-609
tenders was awarded at the
as agents for foreign and
An additional $339 million
high yield from Federal
in exchange for maturing
DEPARTMENT
OF
THE
TREASURY
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR RELEASE AT 2:30 P.M.
January 25, 1994
CONTACT:
Office of Financing
202/219-3350
TREASURY'S WEEKLY BILL OFFERING
The Treasury will auction two series of Treasury bills
totaling approximately $25,200 million, to be issued February 3,
1994. This offering will result in a paydown for the Treasury of
about $675 million, as the maturing weekly bills are outstanding
in the amount of $25,883 million.
Federal Reserve Banks hold $6,416 million of the maturing
bills for their own accounts, which may be refunded within the
offering amount at the weighted average discount rate of accepted
competitive tenders.
Federal Reserve Banks hold $3,016 million as agents for
foreign and international monetary authorities, which may be
refunded within the offering amount at the weighted average
discount rate of accepted competitive tenders. Additional
amounts may be issued for such accounts if the aggregate amount
of new bids exceeds the aggregate amount of maturing bills.
Tenders for the bills will be received at Federal
Reserve Banks and Branches and at the Bureau of the Public
Debt, Washington, D. C.
This offering of Treasury securities
is governed by the terms and conditions set forth in the Uniform
Offering Circular (31 CFR Part 356, published as a final rule on
January 5, 1993, and effective March 1, 1993) for the sale and
issue by the Treasury to the public of marketable Treasury bills,
notes, and bonds.
Details about each of the new securities are given in the
attached offering highlights.
000
Attachment
LB-6-~lO'tJ---
HIGHLIGHTS OF TREASURY OFFERINGS OF WEEKLY BILLS
TO BE ISSUED FEBRUARY 3, 1994
January 25, 1994
Offering Amount .
$12,600 million
$12,600 million
91-day bill
912794 K4 5
January 31, 1994
February 3, 1994
May 5, 1994
May 6, 1993
$27,791 million
$10,000
$ 1,000
182-day bill
912794 M6 8
January 31, 1994
February 3, 1994
August 4, 1994
February 3, 1994
Description of Offering:
Term and type of security
CUSIP number
Auction date
Issue date
Maturity date .
Original issue date
Currently outstanding
Minimum bid amount
Multiples .
$10,000
$ 1,000
The following rules apply to all securities mentioned above:
Submission of Bids:
Noncompetitive bids .
Competitive bids
Accepted in full up to $1,000,000 at the average
discount rate of accepted competitive bids
(1) Must be expressed as a discount rate with
two decimals, e.g., 7.10%.
(2) Net long position for each bidder must be
reported when the sum of the total bid
amount, at all discount rates, and the net
long position is $2 billion or greater.
(3) Net long position must be determined as of
one half-hour prior to the closing time for
receipt of competitive tenders.
Maximum Recognized Bid
at a single yield
35% of public offering
Maximum Award .
35% of public offering
Receipt of Tenders:
Noncompetitive tenders
Competitive tenders
Payment Terms .
Prior to 12:00 noon Eastern Standard time
on auction day
Prior to 1:00 p.m. Eastern Standard time
on auction day
Full payment with tender or by charge to a funds
account at a Federal Reserve Bank on issue date
DEPARTMENT
OF
THE
TREASURY
1500 PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR IMMEDIATE RELEASE
Text as Prepared for Delivery
January 26, 1994
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
NATIONAL ASSOCIATION OF MANUFACTURERS
WASIllNGTON, D.C.
LB-6ll
FOR IMMEDIATE RELEASE
Text as Prepared for Delivery
January 26, 1994
REMARKS OF TREASURY SECRETARY LLOYD BENTSEN
NATIONAL ASSOCIATION OF MANUFACIURERS
WASHINGTON, D.C.
I just got back from a 12-day trip, went to five countries, and logged 51 hours on
an airplane.
Before I left, I thought: 'This trip, with so many time zones, is going to be tough."
So, I went to the pharmacy to pick up some sleeping pills and to fill a prescription for
cholesterol medicine.
On the cholesterol pills, the pharmacist said: $190.
I wasn't looking for a bargain, but that sounded awfully high. I'm a priceconscious consumer. So, I told him I belonged to a health plan, and he said: "Oh, then
it's just $80!"
Sleeping pills -- they went from $14 to 90 cents.
You can talk health care in the abstract. Talk about spending 14 percent of GNP,
or a trillion dollars this year, but how many Americans have ever seen a trillion dollars?
I see $190 vs. $80 for one prescription -- and I see a system that's gone haywire,
and that's what we're going to talk about. I'm going to talk straight -- real straight -- and
who knows, I may even have a few surprises for you.
You just heard from Jim Cooper, and I'm sure you heard the President last night.
We're about mid-way in the first quarter on this one. Sam Rayburn used to say,
when two men agree on everything, one of them is doing all of the thinking. We still
have many thinkers on the field -- in addition to the President's, something like six
proposals. You'll see a lot of fleshing out of alternatives.
2
By the way, before I get into this, Jerry Jasinowski and I go way back. Jerry
worked on the Joint Economic Committee in the late '70s, when I took my first trip to
the Far East to see how we could help American business do more selling to Asia.
This trip, I also went as a salesman. What I saw was an exploding market -- and
our manufacturers and financial services industry must be a part of it.
The point I want to make is that the Joint Economic Committee got together that
year. I was the Committee Chairman, and Democrats and Republicans came together,
for the first time, and issued a joint report.
Now, they tell me it was not only the first time, it was also the last time. They
haven't done it since.
Well, I think this year you'll see a coming together, on a bipartisan basis, on a
sensible health care plan.
In fact, let's be real sensible about this.
It doesn't make any sense to me that our nation accounts for 40 percent of all
health care spending in this world, but we only have 5 percent of the population.
It doesn't make any sense that what we get for all that additional spending is a
lower proportion of citizens with health insurance coverage than the other industrial
countries.
And listen to this: a typical insurance policy here provides less coverage than in
the other industrial countries.
I worry that in the last five years, we've lost 1.7 million manufacturing jobs, while
gaining 1.7 million health care jobs. It's nice to be healthy, but unless we have a strong
manufacturing base, we won't be able to pay our hospital bills.
We have a problem with crime in this country. A top priority of mine, and the
law enforcement functions we have at Treasury, is to get guns off the streets.
I've heard that each year we spend over $14 billion treating gunshot wounds. And
85 percent of that is taxpayer subsidized. You and I pay for that.
Throughout my public life, many of you have come to me seeking comprehensive
reform. You have never seen a more ardent advocate for reform than this President.
Never. He has put a bold proposal on the table, a proposal with many components that
I know you embrace.
3
Let's talk about where we agree.
We agree on universal coverage within an employment-based system.
We agree on portability regardless of where you work or your health status. We
need to reduce job lock and to start agreeing to insure unhealthy people, instead of only
healthy ones.
We agree we need more in the way of preventive medicine -- immunizations, and
the like -- so doctors don't have to see children come into an emergency room seriously
ill because their parents couldn't afford a shot for them.
We agree consumers need more information -- need to know about the quality
and the costs of their care.
And we agree that to be effective a plan must achieve real cost containment.
Head-on, we're tackling costs.
Last year, health care prices rose less than they've risen in 20 years, and I think
it's because of what we're proposing and of your efforts to trim costs. But those prices
still rose twice as fast as the consumer price index.
This plan has serious cost containment; the first line of defense is more aggressive
private sector competition -- but we back it up with limits on premium increases as a
fail-safe. We phase in coverage, and we've put a limit on the amount of funds available
to finance premium discounts.
We've labored over finances. It's fiscally responsible. If we do nothing, that
would be fiscally irresponsible.
We've run the numbers through many a computer, worked them over at Treasury,
hired outside experts to scrub them.
I am fully aware that when you do something this big, it's subjective. So we
insisted on some circuit breakers to ensure that the plan pays for itself and makes
headway on the deficit.
We stretched out the phasing in of the program, so if something isn't working, we
can change it.
We've had experience with runaway entitlements and the President has made it
clear that he will not support a plan that could become another runaway entitlement.
He won't do it.
4
If someone can convincingly demonstrate that the numbers are wrong, we'll
modify the plan to make it right.
In this town, you don't do anything big anymore unless it's going to reduce the
long-term deficit. For all those skeptics who didn't believe that this Administration and
this Congress could cut the deficit, here we are more than $65 billion ahead of
projections and more than $120 billion ahead of what it would have been if we had done
nothing. I say we're earning some credibility.
Now, let's talk differences.
When you're real sick, you go to another doctor for a second opinion.
On something that affects one-seventh of this country's economy, we're looking
for some second opinions. And maybe some third and fourth opinions. The President
has said he's willing to modify his proposal -- that's not a standard line you hear out of a
President.
But he's willing to make modifications, so long as reform achieves his goal of
universal coverage with a defined set of benefits. Without defined benefits, you as
employers and we as public officials have no way of evaluating the true costs.
One at a time, let's look at our differences.
First, the alliance structure. I know this is a major issue for you. You think the
5,000 employee threshold for joining regional alliances is too high. You want it reduced
to 500.
We hear you. We're willing to discuss this and other details of our plan.
Let me explain how the Administration came up with the number, because this is
one of the issues we debated extensively.
You recommended to us that companies should have the chance to self insure, to
opt out as they do today under ERISA That recommendation weighed heavily in our
thinking, and we said any firm with more than 5,000 employees could form its own
alliance.
We got the concept right, but the President couldn't have been more clear when
he said we're open for discussion on this as well as other issues.
Here's the problem. We can't agree to so Iowa threshold that everybody opts out
and only the smallest companies and individuals remain in the alliances. This is not just
a philosophical issue, it's an employer cost issue.
5
I used to run an insurance company. I know how these things work, and to hold
down premium costs it's critical that the alliances be large enough that the risk can be
spread.
Insofar as businesses having their own alliances and being charged 1 percent more
-- there's a very valid reason for that. Businesses (especially manufacturers) don't go out
of their way to hire the sick or older worker.
How many times have I seen factories close in cities and new ones go up in the
middle of a green field? Why? So you can attract young, healthy workers who don't
have big pensions and big salaries yet.
Regional alliances must take all comers. Like the older worker; or the very sick,
who today can't buy any coverage because they have pre-existing conditions.
And speaking as the fellow who helps run the books of this country, I have an
obligation to make sure that we don't watch companies opt out when they're too small.
And later, when they can't cover their costs, the American taxpayer pays the price. I
will oppose that.
Some say the number should be 100. I'm troubled by that number. We have to
work carefully with the actuaries and the benefit managers. We shouldn't just pick a
number out of thin air. It has to be driven by consideration of risk.
So, as far as the threshold, let's work together on this.
Two, the benefit package. You think we're too generous. We thought about
limiting the coverage required under the plan. You know where I've been in the past on
that one -- the incremental approach. I've agreed with you.
The problem is, when you're talking something this comprehensive, if you fail to
have a standard package that includes benefits that people use, you risk losing the cost
containment war.
Say some service is not covered, like mental health -- well, there's little incentive
for doctors to be cost conscious on that one, is there? If you don't cover, say substance
abuse, the provider can charge whatever they wish -- driving the costs up.
When I watch your companies squeeze the fat -- not much is sacred. The more
comers you squeeze from, the more you get out.
So, it's a matter of economics. Insofar as saving money for you and your
employees, we do it better if we put a comprehensive package out there -- containing
growth in all health spending -- rather than just a narrow group of services.
7
Six, tort reform. You say we don't go far enough, and I suspect that's an issue
we'll debate extensively.
But let's not get wound up on this because there's a misconception on how much
of a burden malpractice insurance is in running a practice. We have a situation where,
on average, that insurance is two to three percent of a physician's annual costs. That's
all -- two to three percent.
We think ours is a good proposal, but we're willing to go back to the drawing
board if you have a better idea.
Seven, ERISA For those of you who are multi-state employers, ERISA is a
serious issue. Some of you may know that I had a little something to do with ERISA
20 years ago. A fellow I knew in Houston -- he was a Sunday School teacher at our
church -- had worked for a company 29 years. At that time, at that company, you had to
have worked there 30 years to be vested.
In his 29th year they fired him -- so they wouldn't have to pay his pension. I went
to Russell Long, and with Russell and Jake Javits, I spent a lot of time on it, and we got
it enacted.
I'm well acquainted with how it's been expanded to cover health benefits. And I
am well acquainted with your concerns. I think some of them have been addressed -like the uniform benefits package across all 50 states. But I know some of you remain
troubled by the authority states will have under this plan.
If we lower the threshold from 5,000 to some other number, that will address
some of your concerns. But let's keep having a dialogue on ERISA, too. I think we can
make some accommodations. Let's talk about the appropriate balance between
flexibility at the state level and employers' ability to self-insure.
Now, let me end with this. When it comes time for you to endorse a plan, you'll
probably ask a lot of questions. But one question deserves to be asked above all else:
Which one provides universal coverage?
Unless you have universal coverage, you cannot contain costs, and you cannot deal
with cost shifting. If you lock yourselves into one that doesn't include universal coverage,
you won't fix what's really wrong with this system, will you? The American people may
not agree on every issue, but they're overwhelmingly for universal coverage.
Don't get yourself committed too early. We want to hear your second opinions,
and together let's come up with something sensible that we can enact this year.
-30-
RESULTS OF
T~~l~Y'S
AUC~=2N
2:
~-y~~
~OTES
Tenders for $12,029 mi~l:::~ of =-ye~~ ~otes, Series J-1999,
De issued January 3:, 199~ ~~d to ~:c~e Jancary 31, 1999
·,.-e~e accepted today (ClJSIP: 9:2827N6~).
The interest rate on tie ~otes w:ll De 5%. All
::::npetitive tenders at yields =..ower :::-_a:: =.10% 'Ne~e accepted i.n
:·..:.~l.
Te:1ders at 5.10% were a=-lotte:: 38%. All ::oncompetitive a::::
s~cessful competitive Didde~s ~ere a=-=-otted sec~~:::ies at the yie=-::
v_
__
__
_ __
.......
u
~= c:; lOSWlth an equiv-le r - r~icc.,..,=
q::;.~;L1_.
~
. . . - me"';~-n
y~-l"';
that l'S , 1SOc
~~o"~n=
-~~-D~C."'; ~nm~c.-~rl'VC. bi"';~
..... - - 07°1>;!.L
> of -hc.. •• :::::
u_
~e~e tendered at or below tia:: yield.
7~e low y:e=-d was 5.00%;
::~at is, 5% of the amount 0: a::ceDte-:: cO:Ece::itive ::ids 'Ne~e
:e:1dered at or below ttat yie=-d.
______
0,
__
__
~::::l.
~
.. _l..
~
__
c;o...l.lI
_
~
'-' •• ~
c.~,-c_
I..._~
~V
_G. .. _ _ :::
~ ___ ~
_
TENDERS RECEIVED AND ACCEPTED (in tiousa::ds\
-
-
TOTALS
Received
$28,678,165
AcceDted
$12,029,06'=
The $12,029 million of accepted tenders includes S566
of noncompetitive te~ders a::d $11,'=63 million
::::npetitive tenders frem tte public.
~i.llion
In addition, $550 millie:: of te::de~s was awarded at the
yield to Federal ~sse~e 3anks as ~gS~LS f8~ :ore~g~ and
:::ternational monetary auttori:ies. F~ a::ditio::a~ $30C million
:: tenders was also accepted a: the ~ig~ yield :~c~ Federal
~eserve Banks for their own account i:1 exciange for maturing
Securities.
~~gn
LB-612
-~~
Removal Notice
The item identified below has been removed in accordance with FRASER's policy on handling
sensitive information in digitization projects due to copyright protections.
Citation Information
Document Type: Transcript
Number of Pages Removed: 62
Author(s):
Title:
Remarks by Lloyd Bentsen, Secretary of the Treasury, Before National Association of
Manufacturers and Association of Private Pension and Welfare Plans
Date:
1994-01-26
Journal:
Volume:
Page(s):
URL:
Federal Reserve Bank of St. Louis
https://fraser.stlouisfed.org
DEPARTMENT
OF
THE
TREASURY
TREASURY (~.;.+'~
~~~
N
EL'
W
S
c
_
_---------1IIi.:j}/7H9:::..__________
1500PENNSYLVANIA AVENUE, N.W.· WASHINGTON, D.C.· 20220· (202) 622-2960
FOR IMMEDIATE RELEASE
January 25, 1994
STATEMENT OF TREASURY SECRETARY LLOYD BENTSEN
President Clinton is clearly committed to putting people first -- with health care,
welfare reform, job training and anti-crime programs. This year we're going to give
Americans universal health coverage. This year we'll see to it that more Americans have
jobs, and fewer are on welfare.
This year we're going to make neighborhoods safer and get
more guns off the streets. President Clinton's second year, like his first year, is going to be a
year of accomplishment.
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LB-613
@FedFRASER