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OMB coming in and altering testimony like that, I don't think we have heard the last of this. And I am glad to hear you state your position.
Senator PACKWOOD. Can I ask a further question, Mr. Chairman? The CHAIRMAN. Senator Packwood.
Senator PACKWOOD. I am curious about your definition of "truth" because I know the statement that was changed. While the preponderance of scientific evidence is on the side of that, not all of it. And I am not sure where the truth lies And I am curious how Mrs. James would be so sure as to what the truth is so that you could always recognize it.
Ms. JAMES. Well that is why I think I said it would depend on how, you know, if we were altering the testimony to make it more accurate or make it more truthful, that would not be an issue.
Senator PACKWOOD. But you said you should always go with the truth. But how do you know what that is?
Ms. JAMES. I think it depends on the situation. In that particular situation, if it is a matter of scientific evidence. And I am not familiar with the particular case that is brought before me right now. It is important I think for all of us—and I know that you struggle with this as Senators as well—to find out to the best of your ability what is accurate, what is honest, what is fair, what is truth. And I think that when you ask those kinds of questionswhen you seek to do that—then the best that you could possibly hope for is by asking the right kinds of questions, you can find out what the truth and what honesty is.
Senator PACKWOOD. Let me give you an example. Let's say we are on July 15th, and OMB is making its economic projections for next year. And Director Darman comes in and says “Interest rates are going to be 6 and 42 percent. We thought 5 and 1/2 but they are going to be 6 and 12.” And one of his subordinates is convinced it is going to be 8 and 1/2. And that is the statement that person would make. And OMB says, "No, you can't make that statement." Now where is the truth?
Ms. JAMES. I would be more comfortable with one in the health care policy area, but in that particular case I would have to rely on the experts. I would have to go back to my operating and staff divisions. I would look to the Secretary for leadership because I don't have the expertise in that particular area.
Senator PACKWOOD. But what happens as you go back and the experts just come down like this. One says 10 and 1/2 and one says 6 and 1/2, and the average is 8 and 42, and the OMB Director says we are going with 6 and 1/2.
Now one of the experts, a Ph.D at Harvard in Economics, says “I think that is untruthful." Is it untruthful?
Ms. JAMES. I think that the answer to that is that the Secretary of the Department of Health and Human Services is the one who will set policy, who will set standards and who will determine what is accurate. And I would have to take my leadership from him. I would look to the Secretary and say, Mr. Secretary, you are the expert. You know the policy questions that are here. I am happy to go forward with your advice and your expertise and what you think the accurate information is.
I think it would almost be ludicrous for me to sit here and just say that I could make those kinds of determinations in such a broad scope, whether it is Social Security or Medicare or whether it is something dealing with Health Care Financing Administration. It is going to require that I look to the Assistant Secretaries who are heading up those divisions to give me the accurate information, give me good information, and I will take that to the public.
But I am going to have to trust the people that I work with in terms of representing policy at HHS.
Senator PackWOOD. Thank you.
The CHAIRMAN. Are there any further questions of the nominees?
Senator BAUCUS. Mr. Chairman, I don't want to belabor the point, but what if you, in preparing testimony before us in Congress, were to submit that testimony to OMB, and OMB were to strike a portion of your testimony that you believed in very strongly. I think I heard you say earlier that would not be a dilemma, that is, you would speak the truth. Is that to say that you would either not testify, or that you would not follow these instructions?
Ms. JAMES. I think the question at that particular time was more one that had to do with OMB asking you to say something that was patently not true. If OMB struck something from testimony for a policy reason, I would have no problem with coming before the United States Senate and offering that testimony.
Senator BAUCUS. What if OMB instructed you to say that life does not begin at conception?
Ms. JAMES. Ah, that is where we are going.
If OMB said to me that life does not begin at conception, and that is official United States Government policy, it is my job to articulate Government policy. I have very personal views about that, and I think my views are very clear. But my job is not to represent my personal views. My job is to represent the views of the United States Government.
Senator BAUCUS. Which is to say that you may say something that you believe not to be true if that is perceived to be, in your judgment, the policy of the United States Government.
Ms. JAMES. Well I think I understand now better the question about truth and truth. There is true truth and there is truth. It is something that I believe that I hold very personally. I recognize it is something that is not settled in the whole area of public policy.
One of the things that I have learned by being very active in my involvement in surrounding the prolife issue is that there are people of integrity and compassion, people who believe that they speak very truthfully and honestly on both sides of these issues.
I think, my job again, while I have personal views about this, I recognize on the public policy area that the United States Government may take positions which are opposed to mine. However, I am delighted that I have no such conflict of interest in serving the Secretary and serving the President. I can serve them both well, I feel comfortable in representing the views of the United States Government and of the Secretary on these issues. So I don't anticipate any problem.
Senator BAUCUS. Thank you.
Senator ARMSTRONG. Mr, Chairman, I don't want to belabor the point, but if I could have the last word on this.
The CHAIRMAN. Senator Armstrong.
Senator ARMSTRONG. Far be it for me to put in a good word for the OMB, but nobody else has and so maybe I will. [Laughter.]
Senator ARMSTRONG. OMB practically exists to ruffle people's feathers and to cancel worthy spending projects and to clip the wings of people who have got presentations they want to make and so on. And I, like all of the other members of the committee, frequently disagree with one position or another of the OMB. But we shouldn't leave the implication that somehow there is something sinister about this. That is their job, in part, to provide coherence to the policy of the Government. And if you don't have somebody who, on behalf of the President, coordinates the activities of the different agencies of Government you get an Administration that speaks with a thousand voices. And that is true whether it is the FSX, whether there was a dispute initially between the Defense Department and the Commerce Department. It comes up on trade matters all the time. It comes up on economic matters and so on.
And so while any of us may at some point disagree with the policy of the Administration, the function is an important one and a proper one.
Now in the particular case that Senator Pryor mentioned this morning, the paper may or may not have been responsive of the exercise, but the function is a proper one, and I just didn't want to leave the sense that somehow we were criticizing that function.
The CHAIRMAN. I think they go beyond just doing what has to be done for budget making. And I think they get very much into policy issues that don't involve just numbers. That gives me a great deal of concern. There has been a trend since I have been in the United States Senate that I have seen accelerate and this disturbs me very much. So I have some difference of viewpoint on that.
Before you get hit by any ricochets, we have been pleased to have you and we wish you well.
Ms. JAMES. Thank you very much.
A P PENDI X
ALPHABETICAL LISTING AND MATERIAL SUBMITTED
PREPARED STATEMENT OF ROGER BOLTON Mr. Chairman, it is an honor to appear before the Finance Committee today as President Bush's nominee to be Assistant Secretary of the Treasury for Public Affairs and Public Liaison.
The position is responsible for Treasury 5 relations with the press, state and local governments, labor, business and professional organizations. I believe in a strong communications program that thoroughly explains Treasury's positions on issues, as well as the processes by which policy decisions are made. Having worked both as a newspaper reporter and as a Congressional staff member, I have a healthy appreciation for the importance of an informed electorate in the functioning of our representative democracy.
I also believe strongly in the need to involve the private sector in governmental decision-making processes. At the Office of the U.S. Trade Representative, I was responsible for supervising the operation of the trade advisory committee system that this Committee has authorized. Throughout the negotiations of the Canada Free Trade Agreement and the Uruguay Round, I worked to assure that the Administration's negotiating objectives accurately reflected the advice we received from the advisory committees.
Finally, Mr. Chairman, I would like to say a word about the bipartisanship that President Bush and Secretary Brady have said will be a hallmark of this Administration's relations with Congress. I served as Administrative Assistant to Congressman Clarence J. Brown when he was the ranking Republican and you were the Chairman of the Joint Economic Committee. I remember well the excellent working relationship you and he developed and how it led in 1979 and 1980 to the first unanimous annual reports ever issued by that Committee. It is in that cooperative spirit that I would like to work with this Committee and its staff if confirmed by the Senate.
Thank you for taking time from your busy schedules for this hearing. I would be pleased to answer any questions that you may have.
THE WHITE HOUSE PRESS RELEASE, MARCH 28, 1989 The President today announced his intention to nominate Roger Bolton to be an Assistant Secretary of the Treasury (Public Affairs and Public Liaison). He would succeed Edith E. Holiday.
Since 1988, Mr. Bolton has served as a Special Assistant to the President for Public Liaison and Director of the Economic Division at the White House in Washington, DC. Mr. Bolton has also served as Assistant U.S. Trade Representative for Public Affairs and Private Sector Liaison for the Office of the U.S. Trade Representative, July 1985-1989. Prior to this, he was Deputy Assistant Secretary for Public Affairs at the Department of the Treasury, 1984-1985. Mr. Bolton was Director of Speechwriting for Reagan-Bush '84, 1984; Press Secretary for the Joint Economic Committee of Congress, 1983; and Deputy Director of Government Affairs for the National Transportation Safety Board, 1983. Mr. Bolton has also served as Administrative Assistant for Congressman Clarence J. Brown, 1977-1983; and as Press Secretary, 1975-1977. From 1972-1975, he was a Political Reporter for The Marion (Ohio) Star.
Mr. Bolton was graduated from Ohio State University (B.A., 1972). He is married to the former Lynne Melillo. He was born June 12, 1950, is a native of Cincinnati, Ohio and currently resides in Reston, Virginia.
PREPARED STATEMENT OF CHARLES H. DALLARA Mr. Chairman, Senators: It is a pleasure to appear before you today as you consider my nomination to the position of Assistant Secretary of the Treasury for International Affairs. I am honored to have been nominated by President Bush for this position and am, of course, prepared to answer any questions you 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 of the Treasury for Policy Development. At that time, I underscored my willingness and intent to work with Congress in the fulfillment of my duties, if confirmed. I have made every effort to follow up on that commitment since those hearings and would like to reiterate that pledge to you today. If I am confirmed to the position of Assistant Secretary for International Affairs, my duties will cover the full range of Treasury activities in the international arena, including such matters as the international debt problem, economic policy coordination and exchange rate policy, and trade and investment policies. I would plan to work closely with the appropriate committees, subcommittees, and individual members of the Senate and the 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 to thank Secretary of the Treasury Brady and President Bush for the confidence they have expressed in me by nominating me to this position. If this Committee is willing to share their confidence, I will do my utmost to serve my country's interests during the period of my service.
Mr. Chairman, at this time, I would like to offer to respond to any questions you or any other members of the Committee may have.
Treasury News Release, October 24, 1988
CHARLES H. DALLARA, ASSISTANT SECRETARY OF THE TREASURY FOR POLICY
DEVELOPMENT AND SENIOR ADVISOR FOR POLICY Charles H. Dallara was confirmed by the United States Senate as Assistant Secretary of the Treasury for Policy Development on October 19, 1988, and was sworn into office by Secretary Nicholas F. Brady on October 20, 1988. President Reagan had nominated Dr. Dallara for this position earlier this month.
As Assistant Secretary for Policy Development, Dr. Dallara will continue to serve as Senior Advisor for policy to the Secretary of the Treasury, a role he assumed in September. He will support the Secretary in the monitoring and development of policies covering the full range of the Department's activities. He will also be responsible for the oversight of the Executive Secretary and the functions of the Executive Secretariat.
Since 1984, Dr. Dallara has also been serving as United States Executive Director of the International Monetary Fund (IMF). He had served as Senior Deputy Assistant Secretary of the Treasury for International Economic Policy from 1985 to 1988, and prior to this had held a variety of other positions at the Treasury, and served as the U.S. Alternate Executive Director at the IMF. Dr. Dallara received his Ph.D., M.A., and M.A.L.D. from the Fletcher School of Law & Diplomacy, Tufts University, and a B.A. in economics from the University of South Carolina. He also served as an officer in the U.S. Navy from 1970-1974. Dr. Dallara was born on August 25, 1948 in Spartanburg, South Carolina to Harry P. and Margaret Dallara. He is married, has two children, and resides in Falls Church, Virginia.
PREPARED STATEMENT OF KAY 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 (HHS). I look forward, if confirmed, to