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In his remarks, Father Jenco referred to Thomas Sutherland, David Jacobsen, and Terry A. Anderson, who are being held hostage in Lebanon.

Father Lawrence Martin Jenco

Statement by the Principal Deputy Press
Secretary to the President on the President's
Meeting With Father Jenco.
August 1, 1986

The President and Mrs. Reagan met with Father Lawrence Martin Jenco in the Oval Office today. The President welcomed Father Jenco after his long and cruel ordeal and received a confidential message from him. The President noted that his happiness on this occasion is tempered by the knowledge that other Americans remain captive in Lebanon.

The warm welcome that Father Jenco has received this week from the Pope, the Archbishop of Canterbury, and his friends, family, and nation serves as a tribute to a brave man and his faith. The President said he is grateful for the work of those of many different nationalities and organizations who continue to work for the safe return of all hostages-of whatever nationality.

The President said: "Those who held Father Jenco in cruel confinement must realize that their objectives cannot be achieved by these means. They bring no sympathy or honor to themselves or to the cause they profess to support. It is time for them and those with influence over them to end this prolonged situation in the name of peace and justice. We continue to hold the captors and those who support them responsible for the safety of all the remaining hostages.

"We rejoice in Father Jenco's safe return. We will continue to work and pray for the release of the others, and we are prepared to continue our efforts at a dialog leading to this end."

The meeting lasted from 2:28 p.m. to 3:01 p.m., after which the President met for 5 minutes with the Jenco family. Also present were Chief of Staff Donald Regan,

Secretary of State George Shultz, Admiral John Poindexter, and Ambassador Robert Oakley.

Note: John M. Poindexter is Assistant to the President for National Security Affairs, and Robert B. Oakley is Director of the Office for Counter-terrorism and Emergency Planning at the State Department.

Grain Sales to the Soviet Union

Statement by the Principal Deputy Press Secretary to the President. August 1, 1986

The President has made a decision today to allow grain to be sold to the Soviet Union at current world market prices in sufficient quantities to fulfill the terms of the U.S.Soviet long-term grain agreement. The unfulfilled portion of the contract calls for the Soviets to purchase 4 million metric tons of U.S. wheat by September 30, 1986.

Unfair Trade Practices of Taiwan

Memorandum From the President. August 1, 1986

Memorandum for the United States Trade Representative

Subject: Determination under Section 301 of the Trade Act of 1974

Under Section 301 of the Trade Act of 1974, as amended (19 U.S.C. 2411), I have determined that use of a duty paying system to calculate customs duties by the authorities on Taiwan violates a trade agreement and is unjustifiable and unreasonable and a burden or restriction on U.S. commerce. Under Section 301 of the Trade Act, I have determined to retaliate commensurately against Taiwan so long as it fails to meet its obligations in this regard and am directing the United States Trade Representative to propose an appropriate method for such retaliation.

Reasons for Determination

In 1979 the United States and many trading partners concluded a trade agreement, the Customs Valuation Code, specifying the way in which imports are valued for purposes of calculating customs duties. That agreement allows developing countries to delay their implementation of it for a specified time period.

Through a bilateral exchange of letters, Taiwan agreed in 1979 to observe obligations "substantially the same" under this agreement as those applicable to developing countries. This means it should have implemented those obligations effective January 1, 1986.

It did not. In February it agreed to meet this obligation by July 1, 1986. Instead, it enacted a law effective July 1 under which its customs authorities calculate duties upon the basis of a duty paying system (under which values of import items are determined administratively), rather than upon "transaction value" (ordinarily the invoice price). This practice is inconsistent with Taiwan's agreement to apply "substantially the same" obligations as set forth for developing countries in the Customs Valuation Code.

I have made these determinations and directed the United States Trade Representative to propose appropriate retaliation to enforce U.S. trade rights and to respond to the Taiwan practices in question. I would strongly prefer that Taiwan adhere to its agreement to apply the Customs Valuation Code.

This determination shall be published in the Federal Register.

Ronald Reagan

Panama Canal Commission Authorization Act, Fiscal Year 1987

Statement on Signing H.R. 4409 Into Law. August 1, 1986

H.R. 4409, the Panama Canal Commission Authorization Act, Fiscal Year 1987, which I am pleased to sign into law, will continue to protect the national interest of

the United States in the continued, uninterrupted availability and safe, efficient operation of the Panama Canal at no cost to United States taxpayers. I offer commendation and appreciation to the many Americans and Panamanians who have long cooperated in sustaining this important service to American and world maritime com

merce.

The Panama Canal treaties of 1977 and the Panama Canal Act of 1979 provide the framework in which the United States can continue to exercise its rights to operate and defend the canal in a manner consistent with our responsibilities and obligations under the treaties. In signing this act, which will in part amend the Panama Canal Act, I want to assure Members of Congress and the Government of Panama that this legislation will also be interpreted and applied by the executive branch in strict conformity with the terms and intent of the

treaties.

Intergovernmental Advisory Council on Education

Appointment of Five Members. August 1, 1986

The President today announced his intention to appoint the following individuals to be members of the Intergovernmental Advisory Council on Education for terms expiring July 27, 1990:

John K. Andrews, Jr., of Colorado. This is a reappointment. Mr. Andrews is president, Independence Institute, Golden, CO. He graduated from Principia College (B.A., 1966). Mr. Andrews is married, has three children, and resides in Englewood, CO. He was born May 1, 1944, in Allegan, MI.

Lana Bethune, of Arkansas. She would succeed Vance R. Kelly. Mrs. Bethune graduated from the University of Arkansas (B.A., 1970). She is married to former Congressman Ed Bethune. They have two children and reside in Little Rock, AR. Mrs. Bethune was born October 29, 1937, in Little Rock, AR.

Larry D. Dixon, of Alabama. He would succeed Barbara Marumoto. Mr. Dixon is a State senator in Montgomery, and he is executive director, Alabama State Board of Medical Examiners, a position he has held since 1981. He graduated from Washington State University (B.A., 1968; M.A., 1970). Mr. Dixon is married, has two children, and was born August 31, 1942, in Nowata, OK.

Anne Lindeman, of Arizona. This is a reappointment. Mrs. Lindeman is a State senator in Phoenix, and she previously was a member of the State house of representatives, 1972-1976. Mrs. Lindeman graduated from Memorial Hospital School of Nursing, South Bend, IN (1954). She has three children and was born September 10, 1932, in East Orange, NJ.

M. Joyce Van Schaack, of California. This is a reappointment. Mrs. Van Schaack is finance director, Citizens for the Republic, in Santa Monica. She graduated from the California State University (B.A., 1975; M.A., 1976). Mrs. Van Schaack is married, has three children, and resides in Tarzana, CA. She was born July 30, 1930, in Indianapolis, IN.

Digest of Other

White House Announcements

The following list includes the President's public schedule and other items of general interest announced by the Office of the Press Secretary and not included elsewhere in this issue.

July 26

The President declared a major disaster for the State of Washington as a result of a severe storm on May 20, which caused extensive damage.

July 27

The President returned to the White House from a weekend stay at Camp David, MD.

July 28

The President met at the White House with:

-members of the White House staff;

-Secretary of Defense Caspar W. Weinberger;

-Senator James T. Broyhill of North Carolina, who expressed opposition to legislation that would increase the tobacco tax.

In the afternoon, the President telephoned Father Lawrence Martin Jenco in Wiesbaden, West Germany, to express his happiness at Father Jenco's release from captivity in Lebanon and to reiterate his determination to seek the release of the remaining American hostages.

The White House announced that the President has invited Chancellor Helmut Kohl of the Federal Republic of Germany to make an official working visit to the United States. Chancellor Kohl has accepted the invitation and will meet with the President at the White House on October 21.

The President transmitted to the Congress the 1985 annual reports of the Department of Labor, the Department of Health and Human Services, and the Occupational Safety and Health Review Commission under the Occupational Safety and Health Act of 1970.

The President transmitted to the Congress the following amended fiscal year 1987 appropriations requests for the Department of Labor:

-$114 million to provide funds for the extension of trade adjustment assistance benefits. The Consolidated Omnibus Budget Reconciliation Act of 1985 extended these benefits until 1991.

-A reduction of $413 million in advances to the Black Lung Disability Trust Fund and a reduction of $727.2 million for the Black Lung Disability Trust Fund. These reductions are possible because the Budget Reconciliation Act of 1985 waived for 5 years the requirement that interest be paid to the Treasury for advances made to the fund. Benefits to recipients would not be affected.

-$1.3 million to start a 5-year revision of the Government's Standard Industrial

Classification Code.

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The President met at the White House with:

-members of the White House staff; -Representatives Robert H. Michel of Illinois, Sam Gibbons of Florida, Philip M. Crane of Illinois, and Bill Frenzel of Minnesota, to discuss the Textile and Apparel Trade Enforcement Act of 1985;

-Greg Lemond, the bicyclist from Sacramento, CA, who won the Tour de France;

-the Joint Chiefs of Staff;

-Secretary of State George P. Shultz.

In the afternoon, the President left the White House for a weekend stay at Camp David, MD.

Nominations

Submitted to the Senate

The following list does not include promotions of members of the Uniformed Services, nominations to the Service Academies, or nominations of Foreign Service officers.

Submitted July 28

Dennis Kux,

of New York, a career member of the Senior Foreign Service, Class of MinisterCounselor, to be Ambassador Extraordinary and Plenipotentiary of the United States of America to the Republic of Ivory Coast.

Richard B. McQuade, Jr.,

of Ohio, to be United States District Judge for the Northern District of Ohio, vice Nicholas J. Walinski, retired.

George Landon Phillips,

of Mississippi, to be United States Attorney for the Southern District of Mississippi for the term of 4 years (reappointment).

James L. Fyke,

of Illinois, to be United States Marshal for the Central District of Illinois for the term of 4 years (reappointment).

Thomas A. O'Hara, Jr.,

of Nebraska, to be United States Marshal for the District of Nebraska for the term of 4 years (reappointment).

Arthur David Borinsky,

of New Jersey, to be United States Marshal for the District of New Jersey for the term of 4 years, vice Eugene G. Liss, term expired.

Louis F. Laun,

of New York, to be an Assistant Secretary of Commerce, vice Joseph F. Dennin, resigned.

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