April 14, 1997

PRESS BRIEFING BY MIKE MCCURRY




                           THE WHITE HOUSE

                    Office of the Press Secretary

_____________________________________________________________________
For Immediate Release                                  April 14, 1997


                           PRESS BRIEFING
                           BY MIKE MCCURRY


                          The Briefing Room


2:20 P.M. EDT


	     MR. MCCURRY:  Other subjects?  
	     
	     Q	  What's the $57 on to the $200,000, and how did 
Chelsea make $13,000?
	     
	     MR. MCCURRY:  On the President's tax returns --
	     
	     Q	  Did you release those already? 
	     
	     MR. MCCURRY:  We have indeed.  And the President and the 
First Lady, as you know, paid federal taxes of nearly $200,000 on an 
adjusted gross income just over $1 million in wages and salaries.  
You will see that the amount listed is $200,057 -- the President's 
salary being $200,000; the $57 being remaining residuals from the 
President's 1992 appearance on the Arsenio Hall Show.  (Laughter.)  
Now, that amount has declined steadily over time, so the interest 
level in those -- that bonus performance.
	     
	     Q	  How can he get residuals if Arsenio is off the 
air.?
	     
	     Q	  Is that part of the agreement?
	     
	     MR. MCCURRY:  They still, from time to time do replays 
and there is residual income that derives to the President from the 
replays of that 1992 appearance and for his $57 I should tell you the 
President also got to file a California State income tax return 
indicating he owed them $2.  I'm sure Governor Wilson will be happy 
to receive that.  
	     
	     Q	  What's Chelsea's income?
	     
	     MR. MCCURRY:  And Chelsea's income derives from the 
royalty proceeds from her grandmother's book, from Virginia Kelley's 
book, "Leading With My Heart."  As you know from last year's returns, 
she had roughly the same royalty income reported, although I think 
she also had some interest dividend and capital gains income that was 
also reported on her return, which we elect not to make available.
	     
	     Q	  It said that Mrs. Clinton had the royalty income of 
$742,000 and donated $609,000.  What's the --
	     
	     MR. MCCURRY:  Let me walk through -- as a general 
principle, Mrs. Clinton will neither benefit nor end up in less 
fortunate circumstances as a result of having written her book.  She 
-- let me walk you through the charitable contributions that the 
Clintons made.  Mrs. Clinton donated from the royalty income that she 
got on the book, $742,000, she donated a total of $590,000 from that 
royalty income to charities which the First Lady publicly revealed in 
December of 1996.  If you will recall at that time the First Lady's 
Office put out the list of all the various children's hospitals and 

entities that received charitable contributions from the proceeds of 
her book.
	     
	     Under federal law, you cannot claim more than one-half 
of your adjusted gross income in charitable deductions.  That's all 
you can itemize.  So, they had an overall cap of $532,000 that they 
could claim.  That's the amount you see reflected on their Schedule 
A.  Some of that money will carry over to next year.  So, if they 
don't reach the one-half threshold next year, she will be able to 
deduct some of that additional amount next year.  And you can see the 
carry-over amount is listed on their Schedule A.  
	     
	     The balance, which is about $152,000, was used to pay 
the state and federal taxes that the Clintons owe as a result of the 
royalty income that Mrs. Clinton got from the book.  They had, I 
think, about $20,000 worth of state taxes, $125,000 worth of federal 
taxes, and then also administrative costs just to maintain the 
royalty fund which she pays for from the royalty income derived from 
the book.
	     
	     Q	  D.C. taxes?
	     
	     Q	  Could that have all been avoided, Mike, if their 
publisher had just given the money directly to charities?  I mean, 
they didn't pass through?
	     
	     MR. MCCURRY:  I don't believe you can do that.  You can 
only, as in the case of the President, specifically decline the 
royalty that's -- then the publisher makes a different judgment.  If 
royalty income is generated, it then has to be imputed to the 
individual and then she elects to make the balance of it in 
charitable contributions.
	     
	     Q	  What state, Mike?  What state taxes?
	     
	     MR. MCCURRY:  They pay state taxes principally in 
Arkansas.  The President, as a federal elected office holder here in 
the District of Columbia, can elect to report in his state of home 
residence.  Arkansas is his state of legal residence and voting 
residence.  You'll note -- this question comes up every year, why 
does he get a home mortgage interest deduction.  That's because he 
pays half of the mortgage on the home that Dorothy Rodham lives in 
Little Rock, and that is the Clintons' voting and legal residence in 
Arkansas.  
	     
	     And then, in addition, they paid, as I indicated, the de 
minimis amount in California state taxes for their residuals. 
	     
	     Q	  And Mrs. Clinton's royalties, the taxes on that 
goes to Arkansas?
	     
	     MR. MCCURRY:  No, the royalties on the book come to her.
	     
	     Q	  No, the taxes on that.  You said the taxes --
	     
	     MR. MCCURRY:  Yes, that is incorporated in their overall 
gross income and taxes are paid for pursuant to Arkansas state law on 
their state return.
	     
	     Q	  Can you walk us through the Schedule D, the capital 
gains that are shown here?
	     
	     MR. MCCURRY:  The Schedule D capital gains?  Sure.  The 
amounts there reflected in both short-term and long-term capital 
gains which add up to just in excess of $100,000 of the amount 
generated by the President's and Mrs. Clinton's blind trust, operated 
by Boston Harbor Trust, and that because it is a blind trust, we 
don't know from whence came that income, nor can we know because 
that's why it's a blind trust.
	     
	     Q	  Did you make the amount going into the blind trust 
in '92 publicly available at that time?
	     
	     MR. MCCURRY:  I'm not sure what they disclosed, but we 
have annually disclosed the activity within the fund, and it's gone 
up, reflecting market conditions.  Presumably, there have been 
different amounts different years.  I think it was about $88,000 last 
year.  But they had some increase in capital gain income this year as 
against last year.
	     
	     Obviously, the main difference in the return this year 
over last year is the royalty income from Mrs. Clinton's book.
	     
	     Q	  But you never made the base public.
	     
	     MR. MCCURRY:  Not that I know of, unless it was included 
in the first annual disclosure form that the President would have 
filed in 1993 for the 1992 year.  I'd have to go back and ask one of 
the accountants that question.
	     
	     Q	  The President had no activity from his book?
	     
	     MR. MCCURRY:  The President, as we had previously said, 
elected not to receive any royalty income from his book, probably so 
his sales wouldn't be measured against her sales.  (Laughter.)  No, 
he allowed -- he waived any royalty income, and that allowed the 
publisher to make a different set of economic decisions about the 
book itself.
	     
	     Q	  The old charitable giving was what Hillary set up 
for her book?
	     
	     MR. MCCURRY:  No, the charitable giving -- let me go 
through that a little bit so you get some sense of the Clintons.  As 
they have in the past, they have donated considerably to charities 
beyond just the amounts generated from the royalty income.  There is 
first the Henry -- I think we referred -- we have got a note on that 
in the release -- the Henry J. Freeman Pin Money Fund, which 
generates annually income of $12,000 that Mrs. Clinton elects to 
donate to charities, and they've used that for some of their 
charitable giving.  
	     
	     In addition, the Clintons, from other sources, have made 
another $7,300 worth of charitable donations.  So they have a total 
of about $19,300 worth of charitable donations above and beyond Mrs. 
Clinton's book royalties.  And we annually do not disclose who the 
specific recipients of their charitable contributions are, but I have 
said in the past and it is true this year that they tend to be the 
churches at which the Clintons worship, their alma maters, other 
organizations that you can expect that they would have some interest 
in having an affiliation with.
	     
	     Q	  Is the White House going to release the manifests 
of the Air Force One and Air Force Two --
	     
	     MR. MCCURRY:  We will be putting out sometime later this 
afternoon a list of donors and finance-related travelers who flew on 
Air Force One in 1995 and 1996.  We'll make an announcement here in 
Lower Press as soon as we know exactly how and when we're going to do 
that.
	     
	     Q	  A list of -- so that's not complete?  You said a 
list of some of the donors, so it's not complete?
	     

	     MR. MCCURRY:  No, it's all donors and finance-related 
travelers.  It's not the full manifest, but of those who are 
traveling in some capacity with respect to fundraising. 
	     
	     Q	  What about '93 and '94?
	     
	     MR. MCCURRY:  We've been able only to compile at this 
point '95 and '96.
	     
	     Q	  Mike, could you give us some insight into how 
people were chosen to ride on Air Force One?
	     
	     MR. MCCURRY:  I'll refer that to those who make the 
release, and you can ask them that question later.
	     
	     Q	  What time do you think it will be?
	     
	     MR. MCCURRY:  As soon as it's available later this 
afternoon.
	     
	     Q	  What about the Camp David visitors?  Will that be 
released as well?
	     
	     MR. MCCURRY:  You can call Ann Lewis about Camp David.  
I don't know -- we're not making a separate disclosure with respect 
to Camp David, because there are only a handful of people who are 
there; in their capacities they're more as friends of the President 
than as donors.  There's really not much in that category that's of 
interest.
	     
	     Q	  But -- 
	     
	     Q	  But when you say we can call her, does that mean 
she will give the information to us?
	     
	     MR. MCCURRY:  She can walk you through some of the 
individuals who have been up at Camp David.  They've used it mostly 
as a retreat for their own private purposes.
	     
	     Q	  Pardon me, this seems really impractical to have 
everybody in the room call Ann Lewis.  (Laughter.)  Why don't you 
just do it in coordination?
	     
	     MR. MCCURRY:  Well, we'll see how we coordinate it.  I 
think the real -- my guess is that your real focus is going to be on 
the Air Force One list, and then in answering questions on that, we 
can answer on Air Force One.
	     
	     Q	  And how are you going to -- is Lanny Davis going to 
come here, or it's going to be another one of those off-camera 
things?
	     
	     MR. MCCURRY:  We're still figuring that out.
	     
	     Q	  What time?
	     
	     MR. MCCURRY:  I just said as soon as it's ready to go.  
It will be another hour or two.
	     
	     Q	  Any reaction to the documents that the DNC released 
today?
	     
	     MR. MCCURRY:  I don't have one, no.
	     
	     Q	  Is there anything specific you want to make about 
those?  Any points you want to make?
	     

	     MR. MCCURRY:  No.  I mean, they've already characterized 
that.  This is the material they've produced to Chairman Burton's 
committee with respect to one of the document requests relating to 
John Huang.  And I think the documents speak for themselves.
	     
	     Q	  Mike, is there any --
	     
	     Q	  Mike, since you -- since you're in a position of 
riding in the front of Air Force One and we're not likely the people 
who won't be coming in here later or not, can you give us some feel 
as to what kind of hospitality donors who have that privilege 
receive?
	     
	     MR. MCCURRY:  They got pretty much the hospitality that 
Newt Gingrich did.  They sat in the same cabin. in the same seat.  
And the President used to visit with them from time to time.  And -- 
	     Q	  Back door?
	     
	     MR. MCCURRY:  There aren't that many -- there are about 
-- I think -- I haven't seen the full list myself.  I think in the 
period we're talking about -- probably several dozen total that 
travel.
	     
	     Q	  Can we assume that everybody who's not on this list 
was an official --
	     
	     MR. MCCURRY:  Well, not -- you can because they were not 
all official trips.  Some of these were campaign trips, so they were 
-- in some cases, if they were traveling during the campaign year, 
when all the costs were deemed political, they would have been either 
paid for their own travel or they would have been absorbed in 
Clinton-Gore expenses for the trip; in other cases, they're official 
trips; in some cases, people were traveling as guests of the 
President.  
	     
	     Q	  But the names on this list are people who traveled 
and also gave money to the campaign? 
	     
	     MR. MCCURRY:  This -- yes, these are people who are 
somehow or other connected to donor activity to the party or to the 
President's campaign, and others who did not routinely travel with 
the President who had some fundraising-related capacity.
	     
	     For example, we didn't include every time Chairman 
Fowler or Chairman Dodd traveled because they travel frequently.  
They went to fundraisers with the President, but they would have been 
traveling in their capacities as party officials.  But we have 
included some of those who were involved in running and maintaining 
the donor programs for the party.
	     
	     Q	  Just one other question -- every one of the people 
on this list either paid for the trip themselves or the appropriate 
campaign committee paid for it?
	     
	     MR. MCCURRY:  We'll have -- we'll be in a position to 
answer more questions for you later about reimbursements.
	     
	     Q	  Has the White House been told already by Janet Reno 
what her decision is going to be?
	     
	     MR. MCCURRY:  We have not heard anything from Justice 
about the Attorney General's intent with respect to that matter.
	     
	     Q	  Can I follow up to that?  Yesterday, Speaker 
Gingrich suggested if she says no to an independent counsel once 
again, he would suggest she should be investigated for her behavior.  
Do you have any reaction to Speaker Gingrich?
	      
	     MR. MCCURRY:  Well, she has to make a decision based on 
the law and based on the facts and not based on politics.  And we 
would hope the Speaker would consider taking the same approach.
	     
	     Q	  Mike, do you consider that call from the Speaker 
and from Senator Don Nickles intimidation?  Is it appropriate for 
them to --
	     
	     MR. MCCURRY:  I'll just rest with what I just said.
	     
	     Q	  Have there been any discussion between anyone here 
at the White House or in the administration outside the Justice 
Department with Attorney General Reno or anybody at the Justice 
Department about this independent counsel decision?
	     
	     MR. MCCURRY:  I -- that's a broadly sweeping question.  
I can't answer on behalf of everyone in the universe.  I have no way 
of knowing really who the Attorney General has talked to.  To my 
knowledge, no one at the White House has communicated with her about 
this decision because the President has indicated that's a decision 
for her to make based on her understanding of the law.
	     
	     Q	  In a recent -- 
	     
	     MR. MCCURRY:  But who she has consulted with, I'm not in 
a position to answer.
	     
	     Q	  At a recent news conference though -- I think it 
was in response to a Wolf question -- the President indicated that 
even last time an independent counsel wouldn't have been considered 
necessary if the law had been in effect.  
	     
	     MR. MCCURRY:  The President has consistently said that 
she should make the decision based on the law.
	     
	     Q	  I'm a little unclear on the Air Force One list.  If 
a major donor flew that the President considers his friend, would we 
get that name or not?
	     
	     MR. MCCURRY:  That's my understanding -- it would be 
included.  But you should really follow up on that with those who 
would know more about the list.
	     
	     Q	  Who pays for that seat?
	     
	     MR. MCCURRY:  As I say, we'll follow up with that once 
we make the list available.
	     
	     Q	  Mike, how much coordination was there between the 
White House and the DNC about today's release?  Did you discuss over 
-- the timing of it and what was going to be released?
	     
	     MR. MCCURRY:  No, I mean, I think we understood that 
they were doing their production of documents today or they were 
going to make public their production of documents today, and it 
struck some here as not a bad idea for us to privy some of our 
material today.
	     
	     Q	  Mike, can you look ahead to tomorrow's trip?  Any 
kind of preview on what he hopes to accomplish; how long he's going 
to talk; what's the tone of what he's going to say is?
	     
	     MR. MCCURRY:  He will I think very appropriately refer 
to the important historic breakthrough that Jackie Robinson's entry 
into major league baseball presented for the life of the nation.  I 
think, given that he's talking on a baseball field and given what 
most politicians are smart enough to know about appearing before 
sporting crowds, I don't think he plans to be out there very long.  
	     
	     I think he wants to appropriately reflect on the 
contribution that Jackie Robinson made both through his stature, his 
excellent play, his demeanor as he broke an important barrier.  
	     
	     And I think he'll probably also remark on the stunning 
and thrilling breakthrough in another major sport that we witnessed 
this past weekend.  He had an opportunity to have a short 
congratulatory call with Tiger Woods last night after he won the 
Masters.  The President, among other things, said the best shot he 
made all day -- or the best shot he saw all day was the shot of Tiger 
Woods embracing his dad at the end of the 18th hole, which I think 
was a thrilling moment in many ways for millions of Americans.
	     
	     Q	  Speaking of which, has he talked to him about 
coming to the White House?
	     
	     MR. MCCURRY:  Not that -- I don't know whether he 
invited him here or not.
	     
	     Q	  Mike, this speech tomorrow.  I mean, do you 
consider this a major speech on race relations and will the President 
give us any inkling of what he's considering doing as part of --
	     
	     MR. MCCURRY:  No, he's not going to deliver a major 
speech on race relations standing on the infield at Shea Stadium.  
(Laughter.)  He's going to very briefly say this is an important 
historic moment and it's one that we should remember as we think 
about the status of race relations in America.  
	     
	     But there will be a lot more that he plans to say on the 
general subject, but I think celebrating these moments in our 
nation's life that are truly historic, like the one we had this past 
week here and like the one we had 50 years ago are part of coming to 
better and deeper understandings about what it means to be one 
America, which is a theme that the President will be stressing often.
	     
	     Q	  Mike, I don't know how far you will go into the DNC 
documents today, but one document suggested that there was a 
fundraiser where it was intended that Nancy Soderberg would appear 
and share a table with James Riady.   Don't know if it actually 
happened, but in principle, is it proper, is it improper, is it 
unusual for somebody of that rank to attend a fundraiser?
	     
	     MR. MCCURRY:  I'm not familiar with the document or the 
circumstances, so I'll have to refer you to those who know more about 
it.
	     
	     Q	  Mike, does the President plan to have any sort of a 
semiofficial meeting with Mayor Giuliani while he's in town?
	     
	     MR. MCCURRY:  To go over parking tickets and things?  
(Laughter.)  I don't know and I don't know whether the Mayor is 
actually going to be there.  Anyone know?  If the Mayor is there, I 
know the President will look forward to seeing him.  He highly values 
and respects the Mayor and they talk from time to time about issues 
affecting urban life an America and issues related to New York in 
particular.
	     
	     Q	  What else is he doing with the day, then?
	     
	     MR. MCCURRY:  He's -- of course, as you know, he's got 
an event at Mark Knoller's alma mater early in the day which is, some 
will say, the important and interesting moment.  It's a "Kick Butts" 
event at Adries Hudde Middle School in Brooklyn.  He then goes to a 
DCCC luncheon at the Brooklyn Botanical Gardens and then a little bit 
of down time before they go out to Shea.
	     
	     Q	  Some critics of the Attorney General say that the 
decision on an independent counsel should be triggered not only by 
the specifics of the law, but also if there is a need in terms of 
public confidence for there to be an independent inquiry.  I wonder 
if the White House is, at all, persuaded that that's a legitimate 
reason?
	     
	     MR. MCCURRY:  The White House and the President believe 
that she should make the decision based on the law.
	     
	     Q	  Mike, do you get the feeling there will be any 
ambassadorial appointments this week?
	     
	     MR. MCCURRY:  There will be sometime this year, but I 
don't guarantee they'll be happening this week.  (Laughter.)
	     
	     Q	  How about this one?  Is the White House aware 
of -- does it have any knowledge about North Korea deploying Rodong 
missiles as the Japanese foreign minister said today?
	     
	     MR. MCCURRY:  Well, the status of knowledge I might have 
on that is heavily restricted in its public availability because some 
of the stories you've seen make reference to intelligence 
information, but we have long been concerned about North Korea's 
missile program.  Indeed, we have a venue within the dialogue that we 
current have to raise our proliferation-related concerns.  And we've 
got a round of talks scheduled for New York City in May in which we 
have a venue for pursuing some of our proliferation objectives.
	     
	     And one of the things we are doing as we carry out 
aspects of the agreed framework is to address some of the specific 
proliferation matters that we have concern about.  It is one of the 
values of that process stemming from the 1994 Geneva agreement that 
we have a venue for raising precisely the concerns that you mention 
we might have in that very volatile region.
	     
	     Q	  If I could try again on Speaker Gingrich and 
Senator Nickles' comments -- what is -- we'd assume since you don't 
want to -- you decline to go beyond your initial comment on that -- 
that you feel the comments were proper and not an attempt at 
intimidation.
	     
	     MR. MCCURRY:  I think the gave you a nice crisp sound 
bite that you can use on that subject.
	     
	     Q	  I'm looking for an answer though.  (Laughter.)
	     
	     MR. MCCURRY:  I gave you a very good answer.
	     
	     Q	  When?
	     
	     MR. MCCURRY:  I gave you a sense of what we feel about 
the matter already.
	     
	     Q	  Mike, among the papers the DNC released today, I 
couldn't hear the question up front, so maybe I'm repeating 
myself -- were a list of names of the -- DNC of people they would 
have liked to have seen the President appoint to positions.  How much 
weight was given to that list?
	     
	     MR. MCCURRY:  Well, most of the individuals they named 
were people already known to the President because they had been 
active.  As you will note from the lists, some were appointed, some 
weren't.  But overall, the President made ambassadorial appointments 
based on the merits and qualifications of the individual, 
irrespective of contributions -- although clearly, contributions was 
one way that a President would come to know people who wanted to be 
active in the life of our nation and wanted to render public service.
	     
	     Q	  Did he see that list?
	     
	     MR. MCCURRY:  I don't know whether or not he saw that 
particular document.
	     
	     Q	  So, does that mean that the DNC advice was heeded 
or not?
	     
	     MR. MCCURRY:  I said the President would have had a 
number or reasons to make ambassadorial appointments beyond any 
recommendation or flagging for attention individuals that the DNC 
thought merited review.  In any event, it wouldn't have been 
disqualifying for someone to have been recommended by the national 
committee.
	     
	     Q	  Did the President act on the Fed memo he got, and 
do you think it's possible to get announcements later this week?
	     
	     MR. MCCURRY:  No, and likely not.
	     
	     Q	  I have one more New York question -- might he be 
pushing any Democratic opponents for Giuliani while he's doing a 
luncheon tomorrow?
	     
	     MR. MCCURRY:  I don't think he's planning to do any New 
York City politics while he's up there.
	     
	     Q	  Back on taxes, did he say anything about his taxes 
today?  I know you said he met with his accountant.
	     
	     MR. MCCURRY:  He said he obviously pays a considerable 
amount of taxes.  That's not new.  He did say that he was proud that 
the First Lady had been able to sell so many books and proud that she 
had been in a position to give the proceeds from those books to a 
number of very worthy charitable causes.
	     
	     Q	  But he thought that he paid a lot of taxes, you 
say?
	     
	     MR. MCCURRY:  He felt he -- he pays a lot of taxes.  
There's no question about that. 
	     
	     Q	  He thinks he --
	     
	     Q	  Did he say anything about wanting a tax cut?
	     
	     MR. MCCURRY:  The President always is interested in 
advancing his ideas for tax relief.  But as you all know, he would 
not likely benefit from that tax relief being a little bit above in 
income the amounts who would really benefit.
	     
	     Q	  -- deduction -- the $10,000 deduction -- next year.
	     
	     MR. MCCURRY:  But you're right.  Mr. Harris makes a good 
point -- that college deduction that the President's talking about is 
looking better and better with each passing day.  (Laughter.)
	     
	     Q	  I thought there's a cap -- 
	     
	     MR. MCCURRY:  Also contemplating the kind of tuition 
bills they're going to be looking at.

	     
	     Q	  I thought there was a $100,000 a year --

	     Q	  No go.
	     	  
	     MR. MCCURRY:  Oh, that's right.  Harris just withdrew 
the observation because he's still above the income tax on that.  It 
phases out over -- income levels and the Clintons are well beyond 
that income phase-out.
	     
	     Q	  Did he say how it felt to be a millionaire on 
paper?
	     
	     MR. MCCURRY:  Say it again?
	     
	     Q	  Did he say how it felt to be a millionaire on 
paper?
	     
	     Q	  For the first time.
	     
	     MR. MCCURRY:  No, but I think, as some of you know that 
he's got some bills hanging around.  That probably diminishes 
enthusiasm for that designation.
	     
	     Q	  Just ask O.J.
	     
	     Q	  The President -- does the President have a position 
on cutting the inheritance tax?
	     
	     MR. MCCURRY:  We've not ruled out considering ideas that 
come from elsewhere about tax relief, but our ideas on tax relief are 
those that are included in our balanced budget proposal now pending 
before Congress.  That is the right way to write tax relief to 
millions of Americans.
	     
	     Q	  But you are not opposed to the idea?
	     
	     MR. MCCURRY:  We are in favor of our approach on tax 
relief, but understand that we must be flexible enough to consider 
ideas coming from elsewhere.  Although, those concepts, as I believe 
-- some of the Republican-produced budget deliberations have 
indicated we're not -- have not been a factor in their side of the 
equation so far.
	     
	     Anything else?  Yes, sir.  One last one.

	     Q	  DNC about ambassadorial positions -- about the 
consideration for ambassadorial positions?
	     
	     MR. MCCURRY:  Asked and answered.  We did that already.

	     Q	  What about administrative positions beyond 
ambassadorial?  Say, John Long was considered for a Commerce position 
or a State Department position?
	     
	     MR. MCCURRY:  The people who know the documents will be 
able to help you on that later.
	     
             END                          2:50 P.M. EDT