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Mr. Dallara was born in Spartanburg, South Carolina. In 1970, he graduated from the University of South Carolina with a Bachelor of Science degree in Economics. Four years later, Mr. Dallara entered the Fletcher School of Law and Diplomacy at Tufts University, where he received a Master of Arts in International Economics, and in Law and Diplomacy. In 1986, he received his Ph.D. in International Economics from the Fletcher School of Law and Diplomacy.

Mr. Dallara served in the United States Navy from 1970-1974. During his service, he was a gunnery officer, deck officer, navigator, legal officer, and personnel officer on the USS Sampson. Additionally, he served as an aide and Flag Lieutenant to Rear Admiral Samuel L. Gravely, Jr. in Newport, Rhode Island.

Mr. Dallara has had considerable experience in the area of international economic policy. Over the last 13 years, Mr Dallara has held several positions of responsibility at the Department of the Treasury. In these jobs, he has been generally responsible for international and domestic economic issues. Additionally, Mr. Dallara is currently the United States representative at the International Monetary Fund.

I believe that his considerable experience will be most valuable to Mr. Dallara in the position to which he has been nominated. It is with much pride that I appear today to present this fine man to the Committee.

PREPARED STATEMENT OF SENATOR JOHN W. WARNER

INTRODUCING MRS. KAY COLES JAMES

Mr.Chairman, members of the committee, I appreciate having the opportunity to come before you today to present to the committee one of my constituents, a fine Virginian, Mrs. Kay Coles James, whom President Bush has nominated to be Assistant Secretary for Public Affairs at the U.S. Department of Health and Human Services.

I have known Kay for some years now, and while we have not always seen eye-toeye on every issue we have discussed, I have always been impressed by her understanding of the issues she presents, her sensitivity to my views when we disagreed, and her excellent presentment during our discussions.

Kay is a Virginian from the word “go”, as her resume learly indicates, having graduated from John Marshall high school in Richmond and going on to receive her Bachelor of Science Degree from Hampton Institute in Hampton, Virginia.

Kay is perhaps best known for her most recent position as Director of Public Affairs for the National Right-To-Life committee. In the more than three years that she held this position, Kay articulately presented the Committee's views on perhaps the single-most controversial and contentious issue in public policy today.

The position to which Kay has been nominated is to be Assistant Secretary for Public Affairs, and I believe she is well-qualified for that post.

INTRODUCING CHARLES DALLARA

Mr. Chairman, it is a great pleasure to return here today to introduce again to your committee Dr. Charles Dallara, President Bush's nominee to be Assistant Secretary of Treasury for International Affairs.

First, let me welcome to the Senate Dr. Dallara's wife Carolyn and his two children, Stephen and Emily.

It seems like it was just last week that we were all together for Dr. Dallara's last confirmation hearing. In fact it was over six months ago, and in a different administration.

Dr. Dallara comes to this position with an impressive array of experience and background. Dr. Dallara 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. This coincided with my tenure as Secretary of the Navy so I can personally attest to how hard we worked the flag lieutenants and admirals' aides.

Dr. Dallara received his Masters of Arts in international economics, Masters of Arts in law and diplomacy, and his Doctorate of Philosophy from the Fletcher School of Law and Diplomacy of Tufts University.

After receiving his Masters Degrees in 1975 and 1976, Dr. Dallara came to Washington to work in the Treasury's Office of International Monetary Affairs as an International Economist.

Mr. Chairman, that important position was just the beginning of Dr. Dallara's Washington career. He has been working in the Treasury, specializing in international monetary matters for the last twelve years, through some of the most challenging times for U.S. monetary policy this country has ever seen.

Appointed to the post of special assistant to the Under Secretary of Monetary Affairs at Treasury, he assisted the Under Secretary in the planning, coordination and implementation of Treasury policy on international monetary, trade and energy issues. Later, he rose to be the special assistant to the Assistant Secretary of Treasury for International Affairs. There Dr. Dallara worked with the Assistant Secretary to formulate and implement U.S. international economic policies, including trade, monetary, investment and development policies.

Continuing his ascension at the Treasury Department, Dr. Dallara went on to become Deputy Assistant Secretary of International Monetary Affairs, Senior Deputy Assistant Secretary for International Economic Policy, senior advisor to the secretary, and-his current post-assistant secretary for policy development where he has also served as senior advisor for policy to the Secretary of the Treasury. In all these positions he has had hands-on exposure to virtually all aspects of our Nation's international monetary policy.

In addition, Dr. Dallara has represented the United States at the International Monetary Fund (IMF), first as alternate executive director and currently as U.S. executive director. His responsibilities there have included presenting the U.S. position to the IMF's executive board on issues concerning IMF operation and policies, the International Monetary System and economic stabilization programs.

Mr. Chairman, there is no question that the next several years will be critical in charting the course of international monetary policy. Secretary Brady needs experienced people in key positions to help maintain the quick start he has made. Dr. Dallara is an outstanding example of just such a person, and I hope the committee will do all it can to speed his confirmation through the Senate.

COMMUNICATIONS

U.S. OFFICE OF GOVERNMENT ETHICS

Washington, DC, April 13, 1989. Hon. LLOYD BENTSEN, Chairman, Committee on Finance, U.S. Senate, Washington, DC.

Dear Mr. Chairman: In accordance with the Ethics in Government Act of 1978, I enclose a copy of the financial disclosure report filed by John Roger Bolton, who has been nominated by President Bush for the position of Assistant Secretary (Public Affairs and Public Liaison) of the Department of the Treasury:

The report has been reviewed and advice obtained from the Department of the Treasury concerning any possible conflict in light of the Department's functions and the nominee's proposed duties. Based thereon, it appears that Mr. Bolton will be in compliance with applicable laws and regulations governing conflicts of interest. Sincerely,

FRANK Q. NEBEKER, DIRECTOR. Enclosure.

U.S. OFFICE OF GOVERNMENT ETHICS

Washington, DC, October 7, 1988. Hon. LLOYD BENTSEN, Chairman, Committee on Finance, U.S. Senate, Washington, DC

Dear Mr. Chairman: In accordance with the Ethics in Government Act of 1978, I enclose a copy of the financial disclosure report filed by Charles H. Dallara, who has been nominated by President Reagan for the position of Assistant Secretary of the Treasury for Policy Development.

The report has been reviewed and advice has been obtained from the Department of the Treasury concerning any possible conflict in light of the Department's functions and the nominee's proposed duties. Based thereon, it appears that Mr. Dallara is in compliance with applicable laws and regulations governing conflicts of interest. Sincerely,

FRANK Q. NEBEKER, DIRECTOR. Enclosure.

U.S. OFFICE OF GOVERNMENT ETHICS

Washington, DC, April 12, 1989. Hon. LLOYD BENTSEN, Chairman, Committee on Finance, U.S. Senate, Washington, DC

Dear Mr. Chairman: In accordance with the Ethics in Government Act of 1978, I enclose a copy of the financial disclosure report filed by Mr. Hollis S. McLoughlin, who has been nominated by President Bush for the position of Assistant Secretary for Policy Management, Department of the Treasury.

The report has been reviewed and advice has been obtained from the Department of the Treasury concerning any possible conflict in light of its functions and the nominee's proposed duties. Enclosed are letters dated April 6 and 11, 1989, from Treasury's ethics official which describe the specific commitment by Mr. McLoughlin to dispose of his common stock holdings in Howard Savings Bank within 90 days

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after confirmation and, pending that disposition, to recuse himself from participation in matters having a direct and predictable affect on the bank. He has also agreed to recuse himself from matters affecting TFMW, a real estate partnership in which he holds a general partnership interest.

Subject to the agreements and undertakings by Mr. McLoughlin noted above, we believe that he is in compliance with applicable laws and regulations governing conflicts of interest. Sincerely,

FRANK Q. NEBEKER, DIRECTOR. Enclosure.

U.S. OFFICE OF GOVERNMENT ETHICS

Washington, DC, April 19, 1989. Hon. LLOYD BENTSEN, Chairman, Committee on Finance, U.S. Senate, Washington, DC

Dear Mr. Chairman: In accordance with the Ethics in Government Act of 1978, I enclose a copy of the financial disclosure report filed by Kay C. James, who has been nominated by President Bush for the position of Assistant Secretary for Public Affairs of the Department of Health and Human Services.

The report has been reviewed and advice obtained from the Department of Health and Human Services concerning any possible conflict in light of the Department's functions and the nominee's proposed duties. Upon confirmation, the nominee has indicated her intent

to resign from her positions on the National Family Institute and the Greenwood Foundation. Subject to the fulfillment of these commitments, we believe that Ms. James will be in compliance with applicable laws and regulations governing conflicts of interest. Sincerely,

FRANK Q. NEBEKER, DIRECTOR. Enclosure

PLANNED PARENTHOOD FEDERATION OF AMERICA, INC.

May 9, 1989 Hon. LLOYD BENTSEN, Chairman, Senate Finance Committee, Washington, DC

Dear Senator Bentsen: Thank you for the opportunity to testify on the appointment of Kay James-formerly an official for the National Right to Life Committee-as Assistant Secretary of Health and Human Services for Public Affairs. I regret that short notice makes it impossible for us to testify in person, but we understand that this submission will become part of the hearing record.

We are opposed to the appointment of Ms. Jame., although it has nothing to do with her character, her personality or her style. We know of nothing in her employment history-several years with a single-issue political organization and a period of time working for an electronics retail chain—that qualifies her to hold one of the top managerial positions in the largest domestic federal agency. Sadly, the appointment of ideologically driven, unqualified or counter-qualified men and women to positions of high public trust at HHS and in other agencies of the Federal government has become all too common these past eight years.

During the Reagan era at HHS we saw a consistent pattern of these sorts of appointees. The first appointee to run the Federal family planning and adolescent pregnancy program, as Deputy Assistant Secretary for Population Affairs, had no public administrative experience and no particular background in or enthusiasm for activities aimed at reducing the misfortune associated with unwanted pregnancy. Predictably, she resigned in an atmosphere of scandal, though not before doing a great deal of harm to the programs she was chosen to administer. Her successor, similarly obsessed with unorthodox and ideologically driven notions about the programs, was fired by the HHS secretary after a public confrontation over her unilateral efforts to run the program contrary to congressional intent.

These kinds of appointments weren't limited to DHHS, of course. It was common in the Reagan era to have those opposed to civil rights laws named to enforce and monitor them; to have those who campaigned against worker protection laws put in charge of them; and to have appointees hostile to the needs and problems of poor Americans given oversight over welfare programs, legal aid and similar Federal activities.

Frankly, we expected more of President Bush. In his campaign he promised a departure from that period-a “kinder, gentler nation.” His selection of Dr. Louis Sullivan of Atlanta, a respected medical school administrator and physician, to head HHS was clearly a step in that direction. But in the early days of the Sullivan appointment, his candor in expressing a public view about abortion held by the overwhelming majority of Americans that decisions about childbearing should be privately arrived at, and that safe abortion should remain legal and available-set in motion a series of capitulations and public humiliations of the Secretary-designee that has led to this hearing today.

The appointment of Kay James of the National Right to Life Committee to the position being considered by this committee today is part of the White House reparations payment for Dr. Sullivan's unfortunate burst of truthfulness. Because he believes—or, at least, used to believe—that abortion is an appropriate medical procedure for some women in this country, the American people are now being asked to accept the appointment of Kay James to a position of major public trust.

The public and the Senate is asked not to notice that Ms. James has nothing in her credentials to suggest a special talent for a public or private sector management as she moves into a top administrative position in a $400 billion agency. There is nothing in Ms. James' recent employment history to suggest that she has the background to assist in the oversight of an agency with 118,000 employees. To the best of our knowledge, Ms. James has no hands-on or academic experience relating to the Social Security program, to Medicaid or Medicare, to health care finance or to health care in general. We are not aware of any particular interest or preparation in her background that associates her with the wide range of critical issues that HHS officials are called upon to deal with every day.

What we do know is that Ms. James was trotted out by the White House during the controversy over Dr. Sullivan's abortion views, even as White House political operatives were “counseling” Dr. Sullivan on the inappropriateness of his public statements. Those public statements, I might add, are consistent with statements and votes cast by the chairman, ranking Republican and most members of this committee. It is to say that most members of this committee could not meet the Bush Administration litmus test to serve at HHS, while Ms. James seemingly makes the grade.

That, then, is the crux of Planned Parenthood's objection to Ms. James. We do not think she is the best qualified person in this country for the job. We do not think her career history, her academic qualifications or her experience in public affairs add up to what it takes to make a significant contribution to the management of this very important Federal agency. Her appointment is nothing more than a gift from the Bush White House to the anti-abortion movement, and we regret that fact. We urge this committee to keep a close watch on all of the political appointees at HHS and on their stewardship. Many, we are pleased to say, appear to have the right stuff to do their jobs and serve the taxpayers well. HHS is too important, too central to the well-being of too many Americans and too significant a burden on American taxpayers to be used as a rest-and-recreation center for veterans of the anti-abortion movement's political wars. Sincerely,

WILLIAM W. HAMILTON JR., Director, Washington Office.

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