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STATEMENT OF HOLLIS S. MC LOUGHLIN, ASSISTANT

SECRETARY OF THE TREASURY-DESIGNATE Mr. McLoughlin. Thank you, Mr. Chairman,

I appreciate the opportunity today to present myself to the members of this committee. I am honored to have been nominated by President Bush for the position of Assistant Secretary of the Treasury for Policy Management, If I am confirmed by the Senate, I look forward to working with Congress as a member of the Administration.

The position of Assistant Secretary of Policy Management, as I see it, has several major components. First and foremost, the Assistant Secretary, working with both the Secretary and the Deputy Secretary, has to ensure that the policies and objectives of the Secretary are clearly developed and communicated.

In addition, the Assistant Secretary must see that policy is reviewed and coordinated within the Treasury Department; to help create an environment in which different points of view are allowed to develop, and present it in such a way that the Secretary can make a sound and well-informed decision.

Finally, I think the Assistant Secretary is responsible for closely monitoring the coordination of the Department with the rest of the Executive Branch.

I believe I have been lucky to have a combination of public and private sector management experiences which will help me carry out these duties.

As an administrative assistant to a United States Congresswoman, and then to a United States Senator, I learned a great deal about the process of Government and the importance of the relationship between the Executive and Legislative Branches.

In addition, my jobs as an executive in business have taught me a great deal about strategy, goal setting and achieving results.

I think all these experiences will help me as an Assistant Secretary of Treasury, and specifically in a policy management assignment.

I would like to close by thanking my family for their support. I particularly want to thank my wife, Caroline, who is here today, and my daughter for being willing to allow me to take on another public service job where the demands are heavy and the hours long.

I would also like to acknowledge my parents, John and Harriette McLoughlin, who more than anyone have instilled in me the sense that serving the country is an important endeavor.

I know you are all very busy and, therefore, I wanted to keep my remarks brief. However, I will, of course, be happy to answer the committee's questions.

The Chairman, Do I understand that you will continue as a general partner in the TFMW Real Estate Partnership?

Mr. McLoughlin. That is correct, Senator.
The Chairman, What is that partnership?

Mr. McLoughlin. It is a real estate holding company that is derived from a transaction that I was involved in in 1987, I have no active involvement. It is at this stage a passive investment on my part.

The CHAIRMAN. But you remain as a general partner, not a limited partner.

Mr. McLOUGHLIN. Yes, sir, that is correct,
The CHAIRMAN. What kind of real estate investments?
Mr. McLOUGHLIN. They are trucking terminals.

The CHAIRMAN. Well, in setting policy, you are going to come in contact with the tax treatment of investment partnerships. How do you intend to manage that?

Mr. McLOUGHLIN. Well, Senator, as I am sure that you are well aware, I have reviewed this with counsel at Treasury and with OGE. I would make two points. First and foremost, I see my job as a manager of policy and making sure that the proper environment is created for the Secretary to have a range of opinion. I see the principal determinant of tax policy at Treasury as the Assistant Secretary of Tax Policy. I do not see myself in my role as being the one determining tax policy.

The CHAIRMAN. But you are going to provide him with a series of options. Is that right?

Mr. McLOUGHLIN. I would be involved in that, yes.

The CHAIRMAN. Would you recuse yourself if a decision would impact you materially?

Mr. McLoughlin. Absolutely.
The CHAIRMAN. It would be difficult to handle for you.

Let me ask you a question I asked before. What do you think about the run up of the dollar and what do you think should be done about it, if anything?

Mr. McLOUGHLIN. Senator, I am not an expert on the dollar and I would defer to my colleagues on that subject.

The CHAIRMAN. Do you have any questions, Senator Packwood?
Senator PACKWOOD. No questions, Mr. Chairman.
The CHAIRMAN. Senator Armstrong.
Senator ARMSTRONG. No questions. Thank you, Mr. Chairman.

The CHAIRMAN. I may want to visit with you later on in some of the previous part of my questions.

Mr. McLoughlin. I would, of course, be happy to meet with you, Mr. Chairman, on that subject.

The CHAIRMAN. Thank you very much for your attendance. Mr. McLoughlin, Thank you. [The prepared statement of Mr. McLoughlin appears in the appendix.]

The CHAIRMAN. Our next nominee is Mr. Roger Bolton for Assistant Secretary of the Treasury for Public Affairs and Public Liaison.

In that position I think you are the Treasury Department's window to the outside world. You have had a lot of experience in public affairs, and press relations. Based on that experience, what steps would you recommend to make that office more responsive to public concerns as well as an effective conveyer of these concerns to the Treasury Secretary?

Mr. BOLTON. Mr. Chairman, thank you.

I believe very strongly in the need to communicate both policy positions and policy development processes and believe that it is essential to the functioning of our representative democracy to do so.

When I was at the Office of the U.S. Trade Representative one of my functions was to manage the trade advisory system which this committee has authorized, and I did so in a way that attempted to guarantee that private sector advice was accurately reflected in the trade policy development process

At the Department of the Treasury I would hope to similarly work with State and local governments and private sector organizations-business, labor, professional organizations-to see that their views are portrayed accurately to the appropriate policy makers, and that policy decisions reflect those views.

The CHAIRMAN. Apparently, from your record, it is a familiar assignment to you.

Mr. Bolton. Yes, sir.

The CHAIRMAN. You served as the spokesman for the United States Trade Representative as well as the Congressional Joint Economic Committee and for Congressman Clarence Brown. You also worked in the White House Public Liaison Office. I would expect that, in that role, you are going to come in contact with some very controversial issues that are going to be facing the Treasury Department. It looks to me like, from your experience, you are up to the task.

Mr. BOLTON. Thank you, sir.

The CHAIRMAN. Do you have any comments you would like to make, Mr. Bolton?

STATEMENT OF ROGER BOLTON, ASSISTANT SECRETARY OF THE

TREASU'RY-DESIGNATE
Mr. Bolton. Yes. Thank you very much, Senator.

Mr. Chairman, I appreciate the opportunity to appear today. I would like to express my gratitude to Secretary Brady for his confidence in me, and to my wife, Lynne, who is here today in the second row, for her support and continued tolerance of my desire to engage in public service. The position to which I have been nominated is responsible for Treasury's relations with the press, State and local governments and the private sector. I believe in a strong communications program that thoroughly explains policy positions and processes.

My background in journalism and on the Hill has given me a healthy appreciation for the importance of information to the functioning of our representative democracy.

I also believe strongly in the need to involve the private sector in governmental decision making processes. And as I have indicated, I was responsible for doing so when I was with the Office of the U.S. Trade Representative.

Finally, Mr. Chairman, I would just like to say a brief word about the bipartisanship that President Bush and Secretary Brady have said will be a hallmark of their relations with the Congress.

As you have mentioned, I served as Congressman Clarence Brown's administrative assistant when you were Chairman of the Joint Economic Committee. He was ranking Republican on that Committee. And I remember well the excellent working relationship you and he developed that led in 1979 and 1980 to the first unanimous annual reports ever produced by that committee. It is in that cooperative spirit that I would like to work with this committee and staff if confirmed by the Senate.

I thank you and the other members of the committee for taking time from your busy schedules. [The prepared statement of Mr. Bolton appears in the appendix.)

The CHAIRMAN. Mr Bolton, you really know how to get to a guy. [Laughter.]

Senator PackWOOD. No questions, Mr. Chairman.

The CHAIRMAN. Let's see. The order of arrivals is Senator Packwood, Armstrong, Heinz, Durenberger, Chafee, Moynihan and Pryor. Senator Armstrong.

Senator ARMSTRONG. Mr. Chairman, I have no questions at this time.

The CHAIRMAN. Senator Durenberger?
Senator DURENBERGER. No questions, Mr. Chairman.
The CHAIRMAN. Senator Chafee?
Senator CHAFEE. No thank you, Mr. Chairman.
The Chairman, Senator Moynihan?
Senator MOYNIHAN. Congratulations, Mr. Bolton.
Mr. Bolton. Thank you, Senator.
The CHAIRMAN. Senator Pryor?
Senator Pryor. No questions, Mr. Chairman.
The CHAIRMAN. Go while you can.
Mr. BOLTON. Thank you, Mr. Chairman. [laughter.]

The CHAIRMAN. Well, Miss James, we are very pleased to have you.

The CHAIRMAN. Senator McConnell, would you like to make a statement on behalf of Mr. Bolton?

Senator McCONNELL. Mr. Chairman, I would like to submit a brief statement.

The CHAIRMAN. That will be fine. We are delighted.

[The prepared statement of Senator McConnell appears in the appendix.)

The CHAIRMAN. Miss James, we are delighted to have you here. We want to welcome you and your family, which is with you today.

Ms. JAMES. Thank you.
The CHAIRMAN. Would your family stand up so we can see them?

Ms. James. Well, you know, I hadn't intended to, but after everyone else did I knew I couldn't live in peace tonight unless I did.

The CHAIRMAN. But of course. We are glad to see them.

Ms. JAMES. And I am very proud. And I would like to introduce my son, Chuck; my son, Robert Arrington James; and my daughter, Elizabeth; my husband, Charles; my daughter, Shana; and the woman who gave me the most wonderful gift in the world, my mother-in-law, Mrs. James.

The CHAIRMAN. We are very pleased to have you all here. From your background file, I know that you have had extensive experience in dealing with the media, sometimes on some very controversial issues. That experience should serve you well in your new post at the Department of Health and Human services. Budget cuts and difficult policy choices inevitably create a lot of controversy.

Your role in dealing with this committee is largely informational, to make available materials needed by us and by our staffs as we review and consider some of the President's health proposals. We would be delighted to have your statement now.

STATEMENT OF KAY C. JAMES, ASSISTANT SECRETARY OF

HEALTH AND HUMAN SERVICES-DESIGNATE Ms. JAMES. Mr. Chairman and members of the committee, I am honored to appear before you as President Bush's nominee to be Assistant Secretary for Public Affairs at the Department of Health and Human Services. I look forward, if confirmed, to serving the President, Secretary Sullivan and the tens of thousands of dedicated HHS employees as we endeavor to preserve, strengthen and broaden the health and economic security of all Americans.

I will strive to make the Office of Public Affairs an important ally in all aspects of Secretary Sullivan's work on behalf of the Nation. We are HHS' vital conduit to the American public, providing important information on health, support for our families and the elderly, and economic security. I will make sure that this information is timely, accurate and easily accessible.

In my previous work, I have had occasion to closely observe and interact with the department. I therefore know that the Department of Health and Human Services has been a creative and credible vehicle for the dissemination for information on health, family policy and economic security. HHS has a long history of service which has forged a strong bond with the American people. This bond of trust is always important and must never be violated. My goal will be to strengthen it.

Let me cite just one example of how important our work can become. The American public is quickly becoming more health conscious and better informed about health risks and health opportunities. Our citizens depend upon us to deliver new and accurate information about the spread of AIDS and the dangers of illicit drug use.

In short, the American people expect us to clearly and completely give them the facts on all relevant health and human service issues.

That is an exciting challenge for the Office of Public Affairs. If we perform our work with competence, insight and imagination, then the American people will greatly benefit from our efforts. If we fail in our task, then our country will suffer.

Along these lines, it is important that the Office of Public Affairs does continue to grow with the times. The advent of satellite, cable and video provides new and unique opportunities for delivering our message to the American public, I will work to make certain that we carefully explore and utilize each medium to the best of its potential.

I am also committed to expansion of our open and extremely helpful dialogue with the local and national media. Many of the top advertising agencies, television and movie production companies and many other members of the media have offered their help and assistance to help us tackle critical health issues like AIDS and illicit drug use. We can also harness their genius and expertise in the struggle against cancer, diabetes, hypertension and heart disease. I will work to keep this dialogue going

I have a particular commitment to the anti-drug effort. Like so many other Americans, I have been personally affected by adult relatives who were alcohol abusers when I was a child. Living

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