Remarks of the President and Vice President to Silicon Valley.txt

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       E X E C U T I V E   O F F I C E   O F   T H E   P R E S I D E N T



                             THE WHITE HOUSE

                      Office of the Press Secretary
______________________________________________________________
For Immediate Release                          February 22, 1993


                         REMARKS BY THE PRESIDENT
                          AND VICE PRESIDENT TO
                        SILICON GRAPHICS EMPLOYEES

                             Silicon Graphics
                      Mountain View, California


10:00 A.M. PST


        THE PRESIDENT:  First of all, I want to thank you all for the
introduction to your wonderful company.  I want to thank Ed and Ken --we
saw them last night with a number of other of the executives from Silicon
Valley -- people, many of them with whom I've worked for a good length of
time; many of whom the Vice President's known for a long time in
connection with his work on supercomputing and other issues.

        We came here today for two reasons, and since mostly we just want
to listen to you I'll try to state this briefly.  One reason was to pick
this setting to announce the implementation of the technology policy we
talked about in the campaign, as an expression of what we think the
national government's role is in creating a partnership with the private
sector to generate more of these kinds of companies, more technological
advances to keep the United States always on the cutting edge of change
and to try to make sure we'll be able to create a lot of good new jobs
for the future.

        The second reason -- can I put that down?  We're not ready yet
for this.  The second reason I wanted to come here is, I think the
government ought to work like you do.  (Applause.)  And before that can
ever happen we have to be able to get the people, the Congress, and the
press who have to interpret all this to the people to imagine what we're
talking about.

        I have, for example, the first state government in the country
that started a total quality management program in all the departments of
government, trying to figure out how we could reinvent the government.
And I basically believe my job as President is to try to adjust America
in good ways so that we can win in the 21st century, so that we can make
change our friend and not our enemy.

        Ed said that you plan your new products knowing they'll be
obsolete within 12 to 18 months, and you want to be able to replace them.
We live in an era of constant change.  And America's biggest problem, if
you look at it through that lens, is that for too many people change is
an enemy, not a friend.  I mean, one reason you're all so happy is you
found a way to make change your friend, right?  Diversity is a strength,
not a source of division, right?  (Applause.)  Change is a way to make
money, not throw people out of work, right?

        If you decentralize and push decisions made down to the lowest
possible level you enable every employee to live up to the fullest of
their ability.  And you don't make them -- by giving them a six-week
break every four years, you don't force them to make these sharp
divisions between your work life and your private life.  It's sort of a
^L
seamless web.  These are things we need to learn in America, and we need
to incorporate even into more traditional workplaces.

        So I'd like to start -- we'll talk about the technology policy
later, and the Vice President, who had done so much work, will talk a lot
about the details at the end of this meeting.  But I just want to start
by telling you that one of our missions -- in order to make this whole
thing work we're going to have to make the government work differently.

        Example:  We cut the White House staff by 25 percent to set a
standard for cutting inessential spending in the government.  But the
work load of the White House is way up.  We're getting all-time record
telephone calls and letters coming in, and we have to serve our
customers, too.  Our customers are the people that put us there, and if
they have to wait three months for an answer to a letter, that's not
service.

        But when we took office, I walked into the Oval Office -- it's
supposed to be the nerve center of the United States -- and we found
Jimmy Carter's telephone system.  (Laughter.)  All right.  No speaker
phone, no conference calls, but anybody in the office could punch the
lighted button and listen to the President talk.  (Laughter.)  So that I
could have the conference call I didn't want but not the one I did.
(Laughter and applause.)

        Then we went down into the basement where we found Lyndon
Johnson's switchboard.  (Laughter.)  True story -- where there were four
operators working from early morning till late at night -- literally,
when a phone would come and they'd say, "I want to talk to the Vice
President's office," they would pick up a little cord and push it into a
little hole.  (Laughter.)  That's today -- right?

        We found procedures that were so bureaucratic and cumbersome for
procurement that Einstein couldn't figure them out, and all the offices
were organized in little closed boxes -- just the opposite of what you
see.

        In our campaign, however -- we ran an organization in the
presidential campaign that was very much like this.  Most decisions were
made in a great big room in morning meetings that we had our senior staff
in, but any 20-year-old volunteer who had a good idea could walk right in
and say, "here's my idea."  Some of them were very good and we
incorporated them.

        And we had a man named Ellis Mottur who helped us to put together
our technology policy who said -- he was one of our senior citizens; he
was in his 50s.  (Laughter.)  And he said, "I've been writing about high-
performance work organizations all my life.  And this is the first one
I've ever worked in and it has no organizational chart.  I can't figure
out what it looks like on paper, but it works."

        The Vice President was making fun of me when we were getting
ready for the speech I gave Wednesday night to the Congress; it was like
making sausage.  People were running in and out saying, put this in and
take this out.  (Laughter.)  But it worked.  You know, it worked.
(Applause.)

        So I want to hear from you, but I want you to know that we have
hired a person at the Office of Management and Budget who has done a lot
of work in creating new businesses and turning businesses around -- to
run the management part of that.  We're trying to review all these
indictments that have been issued over the last several years about the
way the federal government is run.  But I want you to know that I think a
major part of my missions is to literally change the way the national
government works, spends your tax dollars, so that we can invest more and
consume less and look toward the future.  And that literally will
^L
require rethinking everything about the way the government operates.

        The government operates so much to keep bad things from happening
that there's very little energy left in some places to make good things
happen.  If you spend all your time trying to make sure nothing bad
happens there's very little time and money and human energy left to make
good things happen.  We're going to try to pare away a lot of that
bureaucracy and speed up the decision-making process and modernize it.
And I know a lot of you can help.  Technology is a part of that, but so
is organization and empowerment, which is something you've taught us
again today.  And I thank you very much.  (Applause.)
        We want to do a question and answer now, and then the Vice
President is going to talk in more detail about our technology policy
later.  But that's what we and Ed agreed to do.  He's my boss today; I'm
doing what he -- (laughter.)  So I wonder if any of you have a question
you want to ask us, or a comment you want to make.

        Yes, go ahead.

        Q       Now that Silicon Graphics has entered the supercomputer
arena, supercomputers are subject to very stringent and costly export
controls.  Is part of your agenda to review the export control system,
and can industry count on export regulations that will keep pace with
technology advances in our changing world?

        THE VICE PRESIDENT:  Let me start off on that.  As you may know,
the President appointed as the Deputy Secretary of Commerce John
Rollwagon who was the CEO at Cray.  And he and Ron Brown, the Secretary
of Commerce, have been reviewing a lot of procedures for stimulating U.S.
exports around the world.  And we're going to be a very export-oriented
administration.

        However, we are also going to keep a close eye on the legitimate
concerns that have in the past limited the free export of some
technologies that can make a dramatic difference in the ability of a
Gaddafi or a Saddam Hussein to develop nuclear weapons or ICBMs.
        Now, in some cases in the past, these legitimate concerns have
been interpreted and implemented in a way that has frustrated American
business unnecessarily.  There are, for example, some software packages
that are available off the shelves in stores here that are, nevertheless,
prohibited from being exported.  And sometimes that's a little bit
unrealistic.  On the other hand, there are some in business who are
understandably so anxious to find new customers that they will not
necessarily pay as much attention as they should to what the customer
might use this new capacity for.  And that's a legitimate role for
government, to say, hold on, the world will be a much more dangerous
place if we have 15 or 20 nuclear powers instead of five or six; and if
they have ICBMs and so forth.

        So it's a balance that has to be struck very carefully.  And
we're going to have a tough nonproliferat...
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