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John Roger Bolton: U.S. Office of Government Ethics Letter, (April 13, 1989)...
Charles H. Dallara: U.S. Office of Government Ethics Letter, (October 7, 1988)
Hollis S. McLoughlin: U.S. Office of Government Ethics Letter, (April 12,

Kay C. James: U.S. Office of Government Ethics Letter, (April 19, 1989).
Planned Parenthood Federation of America, Inc.

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TUESDAY, MAY 9, 1989


Washington, DC. The hearing was convened, pursuant to notice, at 2:30 p.m. in room SD-215, Dirksen Senate Office Building, Hon. Lloyd Bentsen (chairman) presiding.

Also present: Senators Moynihan, Baucus, Pryor, Rockefeller, Packwood, Roth, Chafee, Durenberger, and Armstrong. [The press release announcing the hearing follows:)


NOMINATIONS WASHINGTON, DC-Senator Lloyd Bentsen (D., Texas), Chairman, announced today that the Finance Committee will hold a hearing and executive session on nominations for the Departments of Treasury and Health and Human Services, on Tuesday, May 9, 1989 at 2:30 p.m. in Room SD-215 of the Dirksen Senate Office Building

The Treasury nominations are Charles H. Dallara to be Deputy Under Secretary for International Affairs, Hollis S. McLoughlin to be Assistant Secretary for Policy Development, and Roger Bolton to be Assistant Secretary for Public Affairs and Public Liaison

Dallara is Assistant Secretary for Policy Development at Treasury, McLoughlin serves as a Treasury consultant, and Bolton is Special Assistant to the President for Public Liaison and Director of the Economic Division at the White House.

Additionally, the Committee will consider nomination of Kay C. James to be As. sistant Secretary for Public Affairs of the Department of Health and Human Serv. ices. Ms. James is currently serving as a consultant at HHS. OPENING STATEMENT OF HON. LLOYD BENTSEN, A U.S. SENATOR

The CHAIRMAN. This hearing will come to order.

Dr. Dallara has been nominated to be Deputy Under Secretary of the Treasury for International Affairs. The Under Secretary for International Affairs is charged with advising the Treasury Secretary on international, monetary, financial, commercial and trade policies. Dr. Dallara has been with the Treasury Department since 1976. Most recently, he has served as the Assistant Secretary for Policy Development. He has also served as the Senior Deputy Assistant Secretary far International Economic Policy and as the U.S. Executive Director of the International Monetary Fund. Prior to that time, he worked in the Treasury Department's Office of International Monetary Affairs.

I must say your background gives you an expertise on a myriad of issues, including the Third World debt, the trade deficit and the coordination of monetary policies between the United States and the Western allies. Other than that, you won't have much else to do, I guess. [Laughter.]

The CHAIRMAN. We are very pleased to have you.
I defer now to my distinguished colleague, Senator Packwood.
Senator PACKWOOD. I have no opening statement, Mr. Chairman.
The CHAIRMAN. All right.

We are very pleased to see the distinguished senior Senator from the State of Virginia here, my good friend, John Warner. Would you proceed, sir? STATEMENT OF HON. JOHN WARNER, A U.S. SENATOR FROM

VIRGINIA Senator WARNER. Thank you, Mr. Chairman, Senator Packwood. I shall be very brief.

Both of these distinguished Americans are well known to this committee and I would like to ask unanimous consent that my statements on behalf of each will be inserted into the record in its entirety.

They are both Virginians, and as such it is a distinct honor for me to come before the committee and introduce them.

I would like to just mention briefly one thing about Dr. Dallara, which I am sure the Chairman, in view of his distinguished military record, will understand why.

Dr. Dallara comes to this position with an impressive ray of experience and background. He served our country in the United States Navy in the early 1970s as an Admiral's aide and a Flag Lieutenant to a Rear Admiral, serving as executive assistant with a variety of duties, including flotilla watch officer at sea. These coincided with my tenure as Secretary of the Navy, so I can personally attest to how hard we worked the Flag Lieutenants and the Admirals' aides. Need I say more, Mr. Chairman?

The CHAIRMAN. Well, once upon a time, I thought about joining the Navy, but I would have been Ensign Bentsen and I would never have been promoted. [Laughter.]

Senator WARNER. Well I am fully aware the distinguished chairman's record is a member of the old Army Air Corps many years ago.

And also, Mr. Chairman, I am honored to represent here Kay Cole James to be Assistant Secretary for Public Affairs in the U.S. Department of Health and Human Services. She, likewise, has had a distinguished record of public service, but I have had the opportunity to work with her on a number of very controversial issues. I would say unequivocally that she has a sense of fairness and objectivity in her approach to decisions which I think will do her very well in the duties for which the President of the United States has designated her, subject to confirmation by the Senate.

I thank the chair and I thank the ranking member for the privilege of appearing.

The CHAIRMAN. Senator, we are very pleased to have you and appreciate your introduction of these two nominees.

Senator WARNER. Thank you.

The CHAIRMAN. Now, Dr. Dallara, the introduction is over and you are on your own.

[The prepared written statements of Senator Warner appear in the appendix.) STATEMENT OF CHARLES H. DALLARA, DEPUTY UNDER

SECRETARY OF THE TREASURY-DESIGNATE Dr. DALLARA. Thank you, Mr. Chairman. I would like to thank the Senator for his very kind introductory comments. I appreciate very much him joining the hearings here today to introduce me.

It is indeed a pleasure to appear before you and your committee today, Mr. Chairman, as you consider my nomination to the position for the Assistant Secretary of the Treasury for International Affairs.

I am honored to have been nominated by President Bush for this position, and I am, of course, prepared to answer any questions you or your colleagues may have concerning my qualifications, experience, or the responsibilities associated with the position to which I have been nominated.

It was my pleasure to have appeared before this committee only seven months ago in connection with my nomination to the position of Assistant Secretary for Policy Development. At that time, Mr. Chairman, I underscored my willingness and intent to work with Congress in the fulfillment of my duties if confirmed. I made every effort to follow up on that commitment and I would like to reiterate that pledge to you today. If confirmed to the position to which I am nominated, my duties will cover, as you have already indicated, Mr. Chairman, a full range of Treasury activities in the international arena.

I would plan to work closely with the appropriate committees, subcommittees, and individual members of the Senate and House, as well as their staffs, in an effort to ensure full and continuing consultation with the Congress on such matters of vital national interest.

Before closing, Mr. Chairman, I would like to take the opportunity, if I may, to introduce my family who is here with me today. My wife, Carolyn, and my children, Stephen and Emily, all of whom have tolerated the demands for my positions in Government for a number of years, and who are apparently willing to do so for at least a few more.

I would also like to thank Secretary of the Treasury Nicholas Brady, and President Bush for the confidence they have expressed in me by nominating me to this position.

If this committee were willing to share their confidence, I will do my utmost to serve my country in these duties.

Thank you, Mr. Chairman. I would be happy to answer any questions which you or the members of the committee may have at this time.

The CHAIRMAN. Dr. Dallara, one of the most serious problems facing this country is the trade deficit. The previous Administra

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