DEFENSE CONVERSION: 7/29/92 July 29, 1992 PRESIDENT BUSH ON DEFENSE CONVERSION o Ending the Cold War While Easing Economic Hardship: President Bush has worked tirelessly to achieve a rapid and peaceful end to the Cold War. At the same time, the President understands that the Cold War's end has brought economic hardship for many workers in defense-related industries. o The President's Sensible Defense Cuts: The President has proposed a sensible, prudent defense build-down. The President's blueprint for America's national security needs recognizes post-Cold War realities, but still provides for strong, flexible, and responsive armed forces. o Clinton's irresponsible defense cuts would cost one million jobs. Governor Clinton wants to slash America's defense programs by nearly $60 billion -- cuts much larger and deeper than those the President and Congress have deemed appropriate, and have already started to make. -- Clinton's irresponsible defense cuts would cost one million defense industry workers their jobs. These additional cuts, on top of those already passed, would devastate already hard-hit defense-intensive states like California. o Easing defense conversion and defense workers' adjustment: The President's plan to ease economic hardship associated with defense conversion will help defense-related firms by: -- Expanding federal support for R&D of basic and applied technologies, through his National Technology Initiative; -- Eliminating so-called "recoupment fees" which severely penalized American defense contractors in making non- government sales. o The President is providing $7.1 billion in assistance to help defense workers and communities affected by cuts. Actions by the President are also creating new career opportunities in teaching for former defense workers. In addition the Administration is expanding GI Bill educational opportunities and options for early retirement from the Defense Department. # # #