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Date: Tue, 23 Feb 93 12:18:06 PST
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From: surfpunk@osc.versant.com (Xrrcvat 272 zrffntrf naq qryrgvat 17)
To: surfpunk@osc.versant.com (SURFPUNK Technical Journal)
Subject: [surfpunk-0060] TRANSCRIPT: Clinton Visits SGI, Outlines Tech Initiative

It's not PGP signed by White House, so I'm not sure it's genuine.  
Keith says it's from usenet, comp.something.sgi.something.     --strick
________________________________________________________________________
________________________________________________________________________

# From: keith@cc.gatech.edu (Keith Edwards)

# From schuman@kaweah.esd.sgi.com (Aaron Schuman)
# Subject: Re: Clinton Visits SGI, Outlines Tech Initiative
# Date: Tue, 23 Feb 93 17:53:08 GMT


       E X E C U T I V E   O F F I C E   O F   T H E   P R E S I D E N T



                             THE WHITE HOUSE

                      Office of the Press Secretary
______________________________________________________________
For Immediate Release                          February 22, 1993     

	
                         REMARKS BY THE PRESIDENT
                          AND VICE PRESIDENT TO
                        SILICON GRAPHICS EMPLOYEES
	
                             Silicon Graphics
                      Mountain View, California    


10:00 A.M. PST
	
	
	THE PRESIDENT:  First of all, I want to thank you all for the 
introduction to your wonderful company.  I want to thank Ed and Ken --we 
saw them last night with a number of other of the executives from Silicon 
Valley -- people, many of them with whom I've worked for a good length of 
time; many of whom the Vice President's known for a long time in 
connection with his work on supercomputing and other issues.
	
	We came here today for two reasons, and since mostly we just want 
to listen to you I'll try to state this briefly.  One reason was to pick 
this setting to announce the implementation of the technology policy we 
talked about in the campaign, as an expression of what we think the 
national government's role is in creating a partnership with the private 
sector to generate more of these kinds of companies, more technological 
advances to keep the United States always on the cutting edge of change 
and to try to make sure we'll be able to create a lot of good new jobs 
for the future.
	
	The second reason -- can I put that down?  We're not ready yet 
for this.  The second reason I wanted to come here is, I think the 
government ought to work like you do.  (Applause.)  And before that can 
ever happen we have to be able to get the people, the Congress, and the 
press who have to interpret all this to the people to imagine what we're 
talking about.  
	
	I have, for example, the first state government in the country 
that started a total quality management program in all the departments of 
government, trying to figure out how we could reinvent the government.  
And I basically believe my job as President is to try to adjust America 
in good ways so that we can win in the 21st century, so that we can make 
change our friend and not our enemy.
	
	Ed said that you plan your new products knowing they'll be 
obsolete within 12 to 18 months, and you want to be able to replace them.  
We live in an era of constant change.  And America's biggest problem, if 
you look at it through that lens, is that for too many people change is 
an enemy, not a friend.  I mean, one reason you're all so happy is you 
found a way to make change your friend, right?  Diversity is a strength, 
not a source of division, right?  (Applause.)  Change is a way to make 
money, not throw people out of work, right?  
	
	If you decentralize and push decisions made down to the lowest 
possible level you enable every employee to live up to the fullest of 
their ability.  And you don't make them -- by giving them a six-week 
break every four years, you don't force them to make these sharp 
divisions between your work life and your private life.  It's sort of a 
seamless web.  These are things we need to learn in America, and we need 
to incorporate even into more traditional workplaces.
	
	So I'd like to start -- we'll talk about the technology policy 
later, and the Vice President, who had done so much work, will talk a lot 
about the details at the end of this meeting.  But I just want to start 
by telling you that one of our missions -- in order to make this whole 
thing work we're going to have to make the government work differently.
	
	Example:  We cut the White House staff by 25 percent to set a 
standard for cutting inessential spending in the government.  But the 
work load of the White House is way up.  We're getting all-time record 
telephone calls and letters coming in, and we have to serve our 
customers, too.  Our customers are the people that put us there, and if 
they have to wait three months for an answer to a letter, that's not 
service.
	
	But when we took office, I walked into the Oval Office -- it's 
supposed to be the nerve center of the United States -- and we found 
Jimmy Carter's telephone system.  (Laughter.)  All right.  No speaker 
phone, no conference calls, but anybody in the office could punch the 
lighted button and listen to the President talk.  (Laughter.)  So that I 
could have the conference call I didn't want but not the one I did.  
(Laughter and applause.)
	
	Then we went down into the basement where we found Lyndon 
Johnson's switchboard.  (Laughter.)  True story -- where there were four 
operators working from early morning till late at night -- literally, 
when a phone would come and they'd say, "I want to talk to the Vice 
President's office," they would pick up a little cord and push it into a 
little hole.  (Laughter.)  That's today -- right?
	
	We found procedures that were so bureaucratic and cumbersome for 
procurement that Einstein couldn't figure them out, and all the offices 
were organized in little closed boxes -- just the opposite of what you 
see.
	
	In our campaign, however -- we ran an organization in the 
presidential campaign that was very much like this.  Most decisions were 
made in a great big room in morning meetings that we had our senior staff 
in, but any 20-year-old volunteer who had a good idea could walk right in 
and say, "here's my idea."  Some of them were very good and we 
incorporated them.
	
	And we had a man named Ellis Mottur who helped us to put together 
our technology policy who said -- he was one of our senior citizens; he 
was in his 50s.  (Laughter.)  And he said, "I've been writing about high-
performance work organizations all my life.  And this is the first one 
I've ever worked in and it has no organizational chart.  I can't figure 
out what it looks like on paper, but it works."
	
	The Vice President was making fun of me when we were getting 
ready for the speech I gave Wednesday night to the Congress; it was like 
making sausage.  People were running in and out saying, put this in and 
take this out.  (Laughter.)  But it worked.  You know, it worked.  
(Applause.)  
	
	So I want to hear from you, but I want you to know that we have 
hired a person at the Office of Management and Budget who has done a lot 
of work in creating new businesses and turning businesses around -- to 
run the management part of that.  We're trying to review all these 
indictments that have been issued over the last several years about the 
way the federal government is run.  But I want you to know that I think a 
major part of my missions is to literally change the way the national 
government works, spends your tax dollars, so that we can invest more and 
consume less and look toward the future.  And that literally will 
require rethinking everything about the way the government operates.
	
	The government operates so much to keep bad things from happening 
that there's very little energy left in some places to make good things 
happen.  If you spend all your time trying to make sure nothing bad 
happens there's very little time and money and human energy left to make 
good things happen.  We're going to try to pare away a lot of that 
bureaucracy and speed up the decision-making process and modernize it.  
And I know a lot of you can help.  Technology is a part of that, but so 
is organization and empowerment, which is something you've taught us 
again today.  And I thank you very much.  (Applause.)
	
	We want to do a question and answer now, and then the Vice 
President is going to talk in more detail about our technology policy 
later.  But that's what we and Ed agreed to do.  He's my boss today; I'm 
doing what he -- (laughter.)  So I wonder if any of you have a question 
you want to ask us, or a comment you want to make. 
	
	Yes, go ahead.
	
	Q	Now that Silicon Graphics has entered the supercomputer 
arena, supercomputers are subject to very stringent and costly export 
controls.  Is part of your agenda to review the export control system, 
and can industry count on export regulations that will keep pace with 
technology advances in our changing world?
	
	THE VICE PRESIDENT:  Let me start off on that.  As you may know, 
the President appointed as the Deputy Secretary of Commerce John 
Rollwagon who was the CEO at Cray.  And he and Ron Brown, the Secretary 
of Commerce, have been reviewing a lot of procedures for stimulating U.S. 
exports around the world.  And we're going to be a very export-oriented 
administration.
	
	However, we are also going to keep a close eye on the legitimate 
concerns that have in the past limited the free export of some 
technologies that can make a dramatic difference in the ability of a 
Gaddafi or a Saddam Hussein to develop nuclear weapons or ICBMs. 
	Now, in some cases in the past, these legitimate concerns have 
been interpreted and implemented in a way that has frustrated American 
business unnecessarily.  There are, for example, some software packages 
that are available off the shelves in stores here that are, nevertheless, 
prohibited from being exported.  And sometimes that's a little bit 
unrealistic.  On the other hand, there are some in business who are 
understandably so anxious to find new customers that they will not 
necessarily pay as much attention as they should to what the customer 
might use this new capacity for.  And that's a legitimate role for 
government, to say, hold on, the world will be a much more dangerous 
place if we have 15 or 20 nuclear powers instead of five or six; and if 
they have ICBMs and so forth.
	
	So it's a balance that has to be struck very carefully.  And 
we're going to have a tough nonproliferation strategy while we promote 
more exports.
	
	THE PRESIDENT:  If I might just add to that -- the short answer 
to your question, of course, is yes, we're going to review this.  And let 
me give you one example.  Ken told me last night at dinner that --he 
said, if we export substantially the same product to the same person, if 
we have to get one permit to do it we'll have to get a permit every time 
we want to do the same thing over and over again.  They always give it to 
us, but we have to wait six months and it puts us behind the competitive 
arc.  Now, that's something that ought to be changed, and we'll try to 
change that.
	
	We also know that some of our export controls, rules and 
regulations, are a function of the realities of the Cold War which aren't 
there anymore.  But what the Vice President was trying to say, 
and he said so well -- I just want to reemphasize -- our biggest security 
problem in the future may well be the proliferation of nuclear and 
nonnuclear, like biological and chemical weapons of mass destruction to 
small, by our standards, countries with militant governments who may not 
care what the damage to their own people could be.  So that's something 
we have to watch very closely.
	
	But apart from that, we want to move this much more quickly and 
we'll try to slash a lot of the time delays where we ought to be doing 
these things.
	
	Q	Mr. President, Mr. Vice President, you've seen scientific 
visualization in practice here.  As a company we're also very interested 
in ongoing research in high-performance computing and scientific 
visualization.  Can we expect to see a change in the national scientific 
agenda that includes scientific visualization?  Right now I don't see the 
scientific visualization as being represented, for example, on the FCCSET 
committee.
	
	THE VICE PRESIDENT:  It is a good question.  One of the people 
who flew out here with us for this event and for the release of the 
technology policy in just a few minutes is Dr. Jack Gibbons, who is in 
the back of the room -- the President's science advisor and head of the 
Office of Science and Technology Policy.  And he will be in charge of the 
FCCSET process.  That's an acronym that -- what does it stand for, Jack -
- the Federal Coordinating Council on Science and Engineering Technology.  
And visualization will play a key role in the deliberations of the 
FCCSET.
	
	We were actually, believe it or not, talking about this a little 
bit with Dr. Gibbons on the way over here.  I had hearings one time where 
a scientist used sort of technical terms that he then explained --it made 
an impression on me.  He said, if you tried to describe the human mind in 
terms applicable to a computer you'd say we have a low bit rate but high 
resolution.  (Laughter.)  Meaning --this is one of the few audiences I 
can use that line with.  (Laughter and applause.)
	
	But he went on to explain what that means.  When we try to absorb 
information bit by bit, we don't have a huge capacity to do it.  That's 
why the telephone company, after extensive studies, decided that seven 
numbers were the most that we could keep in short-term memory.  And then 
they added three more.  (Laughter.)  But if we can see lots of 
information portrayed visually in a pattern or mosaic, where each bit of 
data relates to all of the others, we can instantly absorb a lot of 
information.  We can all recognize the Milky Way, for example, even 
though there are trillions of points of light, stars, and so forth.
	
	And so the idea of incorporating visualization as a key component 
of this strategy is one that we recognize as very important and we're 
going to pursue it.
	
	THE PRESIDENT:  Let me just add one thing to that.  First of all, 
I told the crowd last night that the Vice President was the only person 
ever to hold national office in America who knew what the gestalt of the 
gigabit is.  (Laughter.)  But anyway -- and now we're going to get some 
very funny articles out of this.  They're going to make fun of us for 
being policy wonks.  (Laughter.)
	
	Let me say something to sort of take this one step further.  This 
whole visualization movement that you have been a part of in your line of 
work is going to merge in a very short time with the whole business in 
traditional education theory called applied academics.  We're now finding 
with just sort of basic computer work in the elementary schools of our 
country dramatic differences in learning curves among people who can see 
the work they're doing as opposed to people who are supposed to read it.  
And we're now finding that the IQs of young people who might take a 
vocational track in school may not be 
all that different from kids that would stay in a traditional academic 
track and wind up at Stanford, but their learning patterns are 
dramatically different.
	
	And there are some people -- this is a huge new discovery, 
basically, that's coming into the whole business of traditional 
educational theory.  So someday what you're doing here will revolutionize 
the basic teaching in our schools, starting at kindergarten and going 
forward, so that the world of work and the world of education will begin 
to be merged backwards all the way to the beginning.  And it's going to 
be, I think, the most important thing we've ever done.  And very 
important for proving that in a diverse population all people can reach 
very high levels of achievement.
	
	MR. MCCRACKEN:  The President and Vice President have also come 
here today to present a new national technology policy for the country.  
Do you want to --
	
	THE PRESIDENT:  We'll answer some more questions.  (Applause.)  
I'm going to forego my time and just let him announce the policy, so we 
can hear some more questions.  Got to give the man equal time, I know.  
(Laughter.)
	
	Q	I'd just like to say, I didn't vote for you; I wish I 
had.  (Laughter.)
	
	THE PRESIDENT:  I hope you feel that way four years from now.  
(Laughter and applause.)
	
	Q	Well, that's actually why I'm standing up -- I really see 
a possibility in what you stand for and I really think this is why you 
were elected.  That you say you stand for change; you said that during 
your campaign.  I think the company believed that.  They're counting on 
you -- I'm nervous -- and I just want to say we're really with the 
country behind you.  I think that's why the statistics are saying that 
we're willing to have our taxes increased, we're willing to have cuts, 
because you say you're really going to do it this time and decrease the 
deficit.  I hope to God that you do.  We need it not just for this 
present time, but by your actually fulfilling on this it will make a 
major change in how we feel about government; that when government says 
they're going to make a difference and they really come through, it will 
make a huge impact for the future.  And I'm really personally behind you 
all the way.  I wish I'd voted for you.  (Applause.)
	
	THE PRESIDENT:  Thank you.  I really appreciate that.  Let me 
make one comment in response if I might.  I think it's important -- and 
you can help others understand this -- to understand why we have to 
reduce the deficit, which is something that is normally not done when 
unemployment is high.  And unemployment is still too high.  Even though 
we're in an economic recovery, most of our recovery is due to high 
productivity from firms that, in turn, this time are not hiring new 
people for all kinds of reasons.  
	
	And we have to reduce the deficit for two reasons:  Number one, 
if we don't -- we're already spending 15 percent of your tax money just 
to pay interest on past debt.  If we don't change present patterns we'll 
be over 20 cents by the year 2000.  That's money we should be spending on 
education and technology in the future.
	
	Number two, the more money we take out of the pool of funds for 
borrowing the more expensive it is for companies like this and other 
companies that have to go into the markets and borrow to borrow.  Just 
since the election, since we made it clear we were going to try to bring 
the deficit down, long-term interest rates have dropped .7 of one 
percent.  That is a huge savings for everybody that is going to borrow 
money or that has a variable interest rate on a loan, whether it's a 
home mortgage or a business loan or a car loan or whatever.  That's 
important.
	
	The second thing we're trying to do that I know you will also 
appreciate is to shift the balance of money we do spend more away from 
consumption toward investment.  Investments in education technology, 
environmental cleanup, and converting from a defense to a domestic 
economy.  That one of the bizarre things that happened to us in the '80s 
is that we increased the deficit first through defenses expenses and then 
through exploding health care costs and increasing interest payments.  
But we reduced our investments in the future and the things that make us 
richer.
	
	So those are the changes we're trying to effect.  Let me just 
make one other point.  I will not support raising anybody's taxes unless 
budget cuts also pass.  (Applause.)
	
	Q	One of the things that Silicon Graphics has been really 
successful is selling into the international markets, approximately 50 
percent of our revenues come internationally, including a substantial 
market in Japan.  What types of programs does your administration plan to 
help the high-growth companies of the '90s sell to the international 
markets?
	
	THE PRESIDENT:  Two things.  First of all, we intend to try to 
open new markets and new markets in our region.  That is, I believe that 
high-growth companies are going to -- to keep America growing, I believe 
high-growth companies are going to have to sell south of the border more.  
And to do that we have to negotiate trade agreements that will help to 
raise incomes in those countries even as we are growing.  That's why I 
support, with some extra agreements, the NAFTA agreement; and why I hope 
we can have an agreement with Chile, and hope we can have an agreement 
with other countries like Argentina that are making a serious effort to 
build market economies.  Because we want to build new markets for all of 
you.
	
	With Japan, I think what we have to do is to try to continue to 
help more companies figure out how to do business there and keep pushing 
them to open their markets.  I don't want to close American markets to 
Japanese products, but it is the only nation with which we have a 
persistent and unchanging structural deficit.
	
	The product deficit with Japan is not $43 billion, which is our 
overall trade deficit, it is actually about $60 billion in product, in 
manufactured production.  So we have -- we've got a lot of problems we 
have to work out there.
	
	With Europe, we sometimes are in surplus, we're sometimes in 
deficit, but it's a floating thing.  So it's more or less in balance.  
With developing nations like Taiwan and Korea, those countries had big 
surpluses with us, but as they became richer they brought them down, so 
that we're more or less in balance.  We have our biggest trade 
relationship with Canada and we're more or less in balance.
	
	So we have to work on this Japanese issue while trying to help 
more of you get involved.  Let me make one final comment on that.  I 
think we should devote more government resources to helping small and 
medium-size companies figure out how to trade, because that's what the 
Germans do with such great success and why they're one of the great 
exporters of the world.  They don't waste a lot of money on the real big 
companies that have already figured it out, but they have extra efforts 
for small and medium-size companies to get them to think global from the 
beginning of their endeavors.  And I think we're going to have to do more 
of that.
	
	Q	In addition to concerns about the economy, Silicon 
Graphics employees are also concerned about the environment.  Your 
economic plan does a great job of promoting R&D investment.  Are there 
any elements that are specifically targeted to promote the application of 
Silicon Graphics' technology to environmental-friendly initiatives such 
as the electric car or the -- train?
	
	THE PRESIDENT:  I think I should let the Vice President answer 
that since it's his consuming passion.  And if I do it, his book sales 
will go up again.  (Laughter.)  You see, we devoted a lot of time and 
attention to that because -- for two reasons.  One is the environment 
needs it.  Secondly, we think it's wonderful economics, because I believe 
that all these environmental opportunities that are out there for us 
represent a major chunk of what people who used to be involved in defense 
technologies could be doing in the future if we're going to maintain a 
high wage base in America.  
	
	So I'd like for the Vice President to talk a little about the 
specifics that we're working on.
	
	THE VICE PRESIDENT:  That goal is integrated into the technology 
plan as one of our key objectives.  The Japanese and the Germans are now 
openly saying that the biggest new market in the history of world 
business is the market for the new products, technologies and processes 
that foster economic progress without environmental destruction.
	
	Some have compared the drive for environmental efficiency to the 
movement for quality control and the quality revolution in the '60s and 
'70s.  At that time, many companies in the United States felt that the 
existing level of product quality was more or less ordained by the forces 
of supply and demand and it couldn't be improved without taking it out of 
the bottom line.  But the Japanese, taking U.S. innovations from Dr. 
Demming and others, began to introduce a new theory of product quality 
and simultaneously improved quality, profits, wages, and productivity. 
	
	The environmental challenge now presents us with the same 
opportunity.  By introducing new attention to environmental efficiency at 
every step along the way, we can simultaneously reduce the impact of all 
our processes on the environment, improve environmental efficiency and 
improve productivity at the same time.  We need to set clear specific 
goals in the technology policy, in the economic plan.  
	
	And, you know, both the stimulus and the investment package focus 
a great deal on environmental cleanup and environmental innovation.  And 
whereas, we've talked a lot about roads and bridges in the past, and 
they're a big part of this plan also, we're putting relatively more 
emphasis as well on water lines and sewer lines and water treatment 
plants and renovating the facilities in the national parks and cleaning 
up trails; taking kids from inner cities and putting them to work 
cleaning up trails in national parks, for example, as part of the summer 
jobs programs.
	
	So you'll find when you look at both the technology plan and the 
economic plan an enormous emphasis on the environment.  (Applause.)
	
	THE PRESIDENT:  Go ahead sir.  They say we have to quit in a 
minute.  I'll take one more question after this.
	
	Q	Mr. President, Mr. Vice President, the news stories and 
articles that the public has access to regarding the budget and the 
economy are very often confusing and contradictory.  I might explain it 
in the same terms you used:  the information is delivered low-bit rate, 
but the problem is huge and requires the high-road's view.  So my 
question is I wonder if you're using Lyndon Johnson's computer to analyze 
the budget and the economy -- whether or not you might be open to using 
some of the things you've seen here to get the bigger picture and also 
communicate that to us.  (Laughter.)
	
	THE PRESIDENT:  Thank you.  There are two things I'd like to 
respond to on that and I'd like to invite you to help.  I'd like to 
invite you to help and I'd like to invite you to help on two grounds:  
One is the simple ground of helping to decide which visual images best 
capture the reality of where we are and where we're going.
	
	Senator Moynihan and I went to Franklin Roosevelt's home in Hyde 
Park, New York, just a couple of days ago.  You may have seen the press 
on it.  And on the way back he said to me that the challenges that we 
face are different from those that Roosevelt faced, but just as profound.  
Unemployment was higher and America was more devastated when he took 
office, he said, but everybody knew what the problem was.  Therefore, he 
had a lot of leeway working with the Congress in the beginning to work 
toward a solution.  Now, he said, we are facing severe challenges to a 
century of economic leadership and it's not clear to every American 
exactly what the dimensions of the problem are.  
	
	The capacity you have to help me help the American people 
conceptualize this is quite significant:  showing the trends in the 
deficit, showing the trends in the investment, showing how the money is 
spent now and how we propose to spend it.
	
	The second big problem we have you can see if you look at the 
front page of USA Today today, which shows a traditional analysis, 
yesterday's analysis -- of the business section -- of the economic 
program.  It basically says, oh, it will bring unemployment a little and 
it will increase economic growth a little if we do this, but not all that 
much.  Now, why is that?  That's because traditional economic analysis 
says that the only way the government can ever help the economy grow is 
by spending more money and taxing less.  In other words, traditional 
changing economics will run a bigger deficit.  
		
	But we can't do that.  The deficit is already so big, I can't run 
the risk to the long-term stability of this country by going in and doing 
that.
	
	This analysis doesn't really make a distinction between 
investment and consumption; doesn't take any account of what we might to 
with the technology policy or a trade policy to make the economy grow 
faster; has no way of factoring in what other good things could happen in 
the private market if you brought long term interests rates down through 
the deficit.
	
	So you could also help us to reconceptualize this.  A lot of the 
models that dominate policymaking are yesterday's models, too.  I'll give 
you just one example.  The Japanese had a deficit about as big as ours 
and they were increasing spending at 19 percent a year --government 
spending -- back in the early '70s when the oil prices went way up and 
they were more energy-dependant than we were on foreign oil.  And they 
just decided they had change it, but they couldn't stop investing.  
	
	So they had a budget which drew a big distinction -- a literal 
distinction -- legal distinction between investment and consumption and 
they embarked on a 10 or 11-year effort to bring the budget into balance.  
And during that time they increased investment and lowered unemployment 
and increased growth through the right kind of spending and investment.  
	
	And I want to lead in, if I might, and ask the Vice President 
before we go to give you some of the specifics of this technology policy 
by making one more pitch to you about this whole economic plan.  This 
plan has 150 specific budget cuts.  And I will be welcome -- I'm welcome 
to more.  I told the Republican leadership if they had more budget cuts 
that didn't compromise our economy, if they helped us, I would be glad to 
embrace them.  I'm not hung up about that, but I did pretty good in four 
weeks to find 150.  And I'll try to find some more on my own.
	
	It also has the revenue increases that you know about.  It also 
has some spending increases and there will be debate about that.  There 
will be people who say, well, just don't spend this new money, don't 
immunize all the kids, don't fully fund Head Start, don't pay for this 
technology policy, don't invest in all these environmental cleanup 
things, and that way you won't have to raise taxes so much.  
	
	The problem is, if you look at the historic spending trends, we 
are too low on investment and too high on the deficit -- and both are 
problems.  And secondly, we've got to have some of these economic 
cooperations in order to move the economy forward.
	
	So I want you to listen to what the Vice President says in that 
context.  Because what you will hear is, we don't need to do what we 
think we should do in this area.  If we don't, I think we'll be out of 
competition.  People like you will do fine because you've got a good 
company here, but the country as a whole will fall behind.  And you can 
help on both those points.  
	
	So would you proceed?
	
	THE VICE PRESIDENT:  I want to give you just a few of the details 
of this technology policy.  There will be a printed copy available and 
you will be able to see for yourself all of the goals and all of the 
elements of it.  
	
	But I want to start by describing how it fits into the 
President's economic plan.  You know, some of the special interests who 
oppose the President's plan are saying to the American people, don't pass 
this plan because everything is fine just the way it is.  Well, anybody 
who says everything is fine with our economy hasn't been to California 
lately.  We need some change.  We can't stand the status quo.  
(Applause.)
	
	California has to participate in the recovery in order for 
America to have a recovery that is worth the name recovery.  So that we 
can start creating new jobs.  And many of the high-skill, high-wage jobs 
of the future are in technology areas.  And that's why a key component of 
the President's economic plan is the technology policy that we're 
announcing here today.
	
	It starts with an appreciation of the importance of continuing 
basic R&D, because that's the foundation for all of the exciting products 
that this company and others like this company come up with.  It 
continues with an emphasis on improving education, because in order for 
companies like this one to survive and prosper in the world economy, we 
as a nation have to have highly educated, well-trained young men and 
women coming out of colleges on to campuses like this -- it's not called 
-- you call it a campus, right?  That's the term that's very common now.
	
	We also have to pay attention to the financial environment in 
which companies like this have to exist.  In order for this company to 
attract investors for the kind of products that you are building here, 
you have got to be able to tell them that the interest rates are not 
going to be too high if they're borrowing money to invest; you've got to 
be able to tell them, look, President Clinton is making permanent the R&D 
tax credit, for example, and there are going to be specific new 
provisions in the law to  encourage investment in high-risk ventures that 
are very common in the high-technology area.
	
	And then this plan makes specific investments in something called 
the national information infrastructure.  Now, infrastructure is a five-
dollar word that used to describe roads, bridges, water lines, and sewer 
lines.  But if we're going to compete in the 21st century, we have to 
invest in a new kind of infrastructure. 
	
	During the Industrial Revolution, the nations that competed most 
successfully were often ones that did the best job of building deep-water 
ports; those that did the best job of putting in good railway systems to 
carry the coal and the products to the major centers where they were 
going to be sold and consumed.  But now we are seeing a change in the 
definition of commerce.  Technology plays a much more important role.  
Information plays a much more important role.
	
	And one of the things that this plan calls for is the rapid 
completion of a nationwide network of information super highways.  
(Applause.)  So that the kind of demonstrations that we saw upstairs will 
be accessible in everybody's home.  We want to make it possible for a 
school child to come home after class and, instead of just playing 
Nintendo, to plug into a digital library that has color-moving graphics 
that respond interactively to that child's curiosity.
	
	Now, that's not the only reason to have such a network or a 
national information infrastructure.  Think about the importance of 
software.  If we could make it possible for talented   young software 
writers here in Silicon Valley and elsewhere in the United States to sell 
their latest product by downloading it from their desk into a nationwide 
network that represented a marketplace with an outlet right there in that 
person's home or business, we would make it possible for the men and 
women who are interested in technology jobs here in the United States to 
really thrive and prosper.
	
	And in keeping with one of the questions that was asked earlier 
about how we can export more into the world marketplace and how we can be 
more successful in world competition, one way is by making our own 
domestic market the most challenging, most exciting, with the most 
exacting standards and levels of quality of any nation in the world.  And 
then we will naturally roll out of our domestic marketplace into the 
world marketplace and compete successfully with our counterparts 
everywhere in the world.
	
	Now, there are some other specific elements of this package which 
you can read for yourself when you see the formal package.  Let me just 
list them very briefly:  A permanent extension of the research and 
experimentation tax credit; completion of the national information 
infrastructure; specific investments in advanced manufacturing technology 
with measures such as -- (applause.)  And in response to one of the 
questions that was asked over here, there is a specific program on high-
speed rail to do the work necessary, to lay the foundation for a 
nationwide network of high-speed rail transportation, and a specific 
project to work cooperatively with the automobile companies in the United 
States of America to facilitate the more rapid development of a new 
generation of automobiles that will beat all the world standards and 
position our automobile industry to dominate the automobile industry of 
the future in the world.  (Applause.)
	
	We also have a specific goal to apply technology to education and 
training.  Dr. Gibbon* and others have given a tremendous amount of 
thought to this because, after all of the dashed hopes and false 
expectations for computers in schools, ironically, we now have a new 
generation of educational hardware and software that really can make a 
revolutionary difference in the classroom, and it's time to use it.  
(Applause.)
	
	And we are going to save billions of dollars each year part way 
through this decade with the full implementation of environmental 
technologies and energy efficiency technologies, starting with federal 
buildings.  We're going to save a billion dollars a year in 1997 just in 
the energy costs of federal buildings around the United States by using 
off-the-shelf technology that has a four-year payback on the investment.  
And then we're going to encourage the use of those technologies around 
the country, and we're going to invest in the more rapid creation of new 
generations of that technology.
	
	Now, the other details of this technology program will be 
available in the handout that's going to be passed out here.  And any of 
you who have ideas on how we can improve it and make better use of 
technology, we invite you to contact us and let us know how we can 
improve this program as we go along.  
	
	But one final word.  The President's economic program is based, 
as he said, on cutting spending; reducing the deficit over time, 
including with some revenue increases that are progressive and fair; and 
also investing in those things which we know will create good, high-wage, 
high-skilled jobs here in the United States.  You all are pioneers in a 
sense, showing how that can be accomplished.  We want to make it easier 
for working men and women throughout this company and other companies to 
follow your example and to create more jobs in high technology.  
	
	And that is the focus of this economic -- of this technology 
policy, which is part of the overall plan to create more jobs for the 
American people and get our economy moving again.  (Applause.)
	
	THE PRESIDENT:  Thank you very much.  (Applause.) 

                            END10:41 A.M. PST




________________________________________________________________________
________________________________________________________________________

The SURFPUNK Technical Journal is a dangerous multinational hacker zine
originating near BARRNET in the fashionable western arm of the northern
California matrix.  Quantum Californians appear in one of two states,
spin surf or spin punk.  Undetected, we are both, or might be neither.
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