Davis, Michele

From: John com

Sent: 5 17, 2002 8:19 AM
To: Michele | .treas.gov
Subject: RE: great seeing you last night

Thanks for your zessage. Hope you're coping with Enren. I'm writing on that
next week -- how it's being used te push campaign finance reform. You wili
sae an item in today’s Wasn Post from Lloyd Grove, a liberal pal of Sicney
renthaljs. I'm not going to say none of it is true but the unfortunate
onship happened in 1999 and since then Sidney S3lumenthal and his gang
worked overtime to exaggerate, distort, and use cyber terrorism to
media. I've held up pretty
» 4nd wilt continue to do so. At points, their fabricated e-mails have
reached absurd Levels. Saying I'm getting married to someone and then
sending cut wedding announcements on the Internet. I don;= want to belabor
it, but I'm now acutely aware of how characte: Sasination by Clintenites
and the people they pay works. Thanks for letting me vent. i will call yeu
again in about ten days if I might.

--Original Messag
From: Michele. fav
Fund, John

tz 1/10/02 9:12 AM

ubject: great seeing you last night

is@do.treas.gov

As always, you prod my thinking, which I need to keep me from getting
buried

an
{(b)(6)]

but it was great to get out and have
some fun instead of staying in the office til 9 at might! thanks for
Gragging me away from my desk, and enjoy your first day of “freedom”!

daily detritus the bureaucracy manufactures around here!

00800000000154


Davis, Michele

From: Nichols, Robert

Sent: aberecey. January 10, 2002 5:46 PM
To: Davis, Michele

‘Subject: another ENRON callFW.

Po Niche!l«

Deputy Assistan= Secretary for Public Affairs
fenertrent of the Treasury
202} 622-2910

41 Message---~--

Fleck, Carole [mailto:CFleck@sarp.org]
: Thursday, January 19, 2002 cS PH
*robert .nicnols@de.treas.gov'

Hi Robert,

I'm a reporter for the AARP Bulletin, working for Suzy Crowley. Could you
call me please, 202/434-3246, about today’s Bush announcement that Treasury
will del g into pension roles in light of Enron? [f I could talk to you
© great I’m outa here at 5. If not today, will you please

ab ty
ore at nome, [(b)(6)}

Carcle Fleck

00800000000279


Michele

From: Glenn Kessier [kessl jpest.com)
Sent: Friday, January 11, 3:09 PM

To: Michele Davis: {reas.gov

Subject: RE; Enron

cllow-up questions. Please call me when you have a
nks

0080000000266


African Growth and Opportunity Act
Suggested Points
Deputy Secretary Larry Summers
. May 6, 1999

((b)(5)]

00800000001369


Davis, Michele

From: Holahan,
Sent: Wednesday, December 19, 2001 6:35 PM
2 Davis, Michele

Ce: Fratto, Tony; Nichols, Robert
Subject: Update on my issues...
Michele,

\ have talked to WSJ re: America West, as well as W_Post, Bloom! and AP. They were ail checking in about AW's
refiting today. Not sure if any of it will generate a story, but you never J

{OUTSIDE SCOPE , (b)(5)]

Also, there is a retail swaps study that Federal Finance is telling me will be ready for release on Friday. It is a study done
See ee OTe, SEC and Feri Rasarvein teapcae t Compose’ racpian: fas lng. reconetestcinSete em roeed aeane

{(b)(5)]

‘Would welcome your thoughts.
have @ good night,
Betsy

00800000000300


MICHELE A. DAVIS
ASSISTANT SECRETARY (PUBLIC AFFAIRS)
TELEPHONE LOG — JANUARY, 2002

6:05 PM
Friday, January 11, 200:
[OUTSIDE SCOPE]
3:53 334-6157 Sue Schmidt, WP called again, She says she needs to talk to
: someone - she's on Deadline REF: ENRON
[OUTSIDE SCOPE}
6:22 334-7326 Glen Kessler, WP called again , REF; ENRON
6:30 393-1388 Hiroshi Yoshitsuga, Nikkei, REF: ENRON & Fisher
[OUTSIDE SCOPE]

00800000000069


payment iasues, integrating science and knowledge, making sure that we have
enough physicians all the way down the pipeline -- pathologists, nurses -- so we
really can translate the care from the lab to the bedside.

‘That's when we're going to see incredible progress, because many of these
drugs and compounds are tailor-made. And as they become more effective, our
technologies are going to have to move through the system faster -- faster FDA
approval, all of those issues.

BLITZER: But you've seen some dramatic developments over the past few years.
Are you optimistic that there can be a cure for breast cancer within, let's say,
our lifetime?

BRINKER: I am extraordinarily optimistic that within the next few years we
will have a real management process for this di ye, that it will become, in
enaence, more chronic. We at the Komen Foundation understand this is probably
going to be built on stages rather than using the word “cure* right away.

The fact is, if we can learn how to prevent the disease, treat it in its
earliest stage, give people more quality of life through quality of care, people
will live longer with it. And then, hence, maybe some day we will have a cure
goon.

BLITZER: Michael Milken in Los Angeles, I know you've been very active in
dealing with prostate cancer. Breast cancer primarily affects, not exclusively,
but primarily affects women; pro: @ cancer, of course, men.

Give us your sense where we are right now in the battle against prostate
cancer.

MICHAEL MILKEN, CANCER SURVIVOR: Well, we've made a lot of progress, Wolf.

And I want to say hi to Nancy and Steve, we've known each cther a long time.
This is actually my 29th year of supporting breast cancer, I'm kind of a new
arrival, only eight years in prostate cancer.

But t think the most telling thing would be that 70,000 less American men
have died in the last eight years from prostate cancer than was originally
projected -- 70,000. That's the same number of people that saw the Super Bowl
in Tampa this year. And so we have had a lot of progress.

Like breast cancer, there has been a growth, maybe 80 to 100 different things
for men with advanced prostate cancer, that are in clinical trials, and that's
probably up from zero 10 years ago. So there's been significant progress.

But Wolf, for many of us we got introduced to you in the Gulf War 10 years
ago. That was a $61 billion effort that carried over eight months, involved 30
nations and more than a half million people. That's more than has been invested
in the war on cancer in the last 30 years. So it takes capital. It takes human
capital like Dr. Rosenberg, and it takes commitment in technology.

All those things are available today, and we at CAPCARE, the Association For
the Cure of Prostate Cancer, are looking forward to going out of business in
2003. And hopefully by that time we'll have prostate cancer under control.

BLITZER: And Michael Milken, I know that when a man is diagnosed with
prostate cancer the two treatments that are generally available now are either
the radiation treatment or surgery.

What is your sense, i# it on a case-by-case basis? Or are these both equally
appropriate in your opinion?

00800000000948


SHOW: CNN LATE EDITION WITH WOLF SLITZER 12:00
June 3, 2901; Sunday
Transcript # 01060300V47
SECTION: News; International
LENGTH: 15551 words

HEADLINE: Colin Powell Discusses Mideast Situation; Paul O'Neill Discusses Tax
Cut's Impact on Economy; ‘American Terrorist' Authors Discuss McVeigh

GUESTS: Paul O'Neill, Colin Powell, Orrin Hatch, Harry Reid, Lou Michel, Dan
Herbeck, Michael Milken, Steve Rosenberg, Nancy S5rinker

BYLINE: Wolf Blitzer, Steve Roberts, David Brooks, Susan Page, Bruce Morton

NIGHLIGHT:

U.S. Secretary of State Colin Powell discusses the latest developments in the
Middle East, and suggests the United States could increase its role in Israel.
Then, U.S. Treasury Secretary Paul O'Neill talks about how he believes the tax
cut will impact the economy. Finally, “American Terrorist" co-authors Lou
Michel and Dan Herbeck discuss the latest developments in the McVeigh case in
terms of how they believe the besber himself sees them.

BODY:

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE
UPDATED.

WOLP BLITZER, HOST: It's noon in Washington, 9:00 a.m. in Los Angeles, 7:00
p-m. in Tel Aviv and midnight in Beijing. Wherever you're watching from around
the world, thanks for joining us for this two-hour LATE EDITION.

We'll get to our interview with Secretary of State Colin Powell shortly, but
first. the hour's top story.

We begin in the Middle East, where tensions remain very high following
Friday's suicide bombing in Tel Aviv that killed 19 Israelis and left dozens
more injured, mostly young people.

(NEWSBREAK)

BLITZER: Here in Washington, the White House is closely watching the
hour-by-hour, very tense situation in the Middle East. Secretary of State Colin
Powell canceled a weekend visit to Costa Rica to personally monitor the crisis.
I spoke with Secretary Powell earlier today.

(BEGIN VIDEOTAPE)

BLITZER: Mr, Secretary, welcome back to LATE EDITION, and thanks for joining
us.

COLIN POWELL, U.S. SECRETARY OF STATE: Thank you, Wolf.

BLITZER: Do you believe that the Palestinian Authority, President Yasser
Arafat is now committed to a cease-fire?

POWELL: It*s not so much what I believe, it's what we all see. He spoke

00800000000930


Davis, Michele

From: Fisher, Peter
Sent: Tuesday, November 27, 2001 3:55 PM
Davis, Michele

To:
‘Sub;

{(b)(5)}

“Original Message-----
From: Schlesinger, Jacob [mailto:Jacob.Schlesinger@ws).con)

Sen Tuesday, November 27, 2001 1:35 PH
To: ‘Peter.Fisher@do,treas.gov'
Subject:

Peter:

I hope you had a good Thanskgiving. If you've got three minutes, I'd love to
talk on whetever basis is appropriate about Enron. Our folks are very eager
to know whet the government sees/thinks, and all our sources point us to you
as the point-person on this.

Also, ['d love to try again to set up that lunch. But in the meantime, this
is nore pressing.

T’il try te call in a bit, bet my number is below if you want to call.

cake

Jake Schlesinger
Office: 202-362-6656
ce 3 202-669-1349

00800000000321


level of those representatives on our side, and I think those representatives
should go to those meetings with a kind of responsibility to help set the
agenda.

(END VIDEO CLIP)
BLITZER: Good advice?
POWELL: We have representatives at a senior level.

POWELL: I have an ambassador, and I have consul general, and we have other
people.

BLITZER: But Ambassador Burns and Ambassador Indyk...
POWELL: Let me finish my conversation.

Dennis has a different view, I guess, that he thinks that these security
discussions require a higher-level person to be in the room.

During the last eight months or the months before we came into power on the
20th of January, the highest-level people you could imagine in the United States
were working in the room at the highest levels imaginable, and we ended up with
a failed peace process and an Israeli government that essentially lost an
election.

The issue right now is security, The problem we have had -- and it isn't a
function of who is in the room for security chats. It‘s whether the two sides
were at a point in their relationship where they were prepared to make those
hard calle on security.

And America coming in and tabling various ideas and positions, we are more
than able to do that, but it wasn't going to be terribly useful if the two sides
were not ready to come inte agreement. That's what caused the last
administration to have difficulty at end of the day. They created huge
expectations as to what might be possible, and then the two sides were not able
to come into the room and agree to what had been put on the table in the form of
the Taba Agreement, as it is called, and the whole process collapsed,

We had want to make sure that we will intervene at a time and at a level when
it igs appropriate to do so and we can see some progress.

I think the Bush administration has handled this well. You have to remenber
that for the first six weeks of the Bush administration, we were watching
transition in the Israeli government: an election, the end of one
administration, and Mr. Sharon taking over on the 7th or 6th of March. And he
took over on the basis of "We're not going to start negotiations until there is
security, and I'm not going just accept assurances of security. I have to sce
other side end the violence."

The security arrangements don't end the violence. The security arrangement
is what happens after political decisions have been made to end the violence and
now you're trying to knit together a structure that will make sure that remains
the case.

So I don't think we've done anything improperly here, And I don't disagree
with Dennis. It's just that we're not doing it quite the same way that he

suggests we should do it. But that's why there has been a change of
administration.

BLITZER; You just came back from trip to Africa and Europe. You were pretty
close to the Middle East. You could have stopped off and met with the Israelis

00800000000934


BLITZER: Are you ready to stop predicting what John McCain might do, Senator
Hatch? You know him quite well as well.

HATCH: I know him really well, and I predict that John will live up to what
he said, and that is that he is @ Republican. He is going to stay a Republican,
and he will be an effective force in Republican Party, as he has been,

BLITZER: But you know that on so many issues, he has lined up with Democrats.
I will give a few examples: on campaign finance reform with Russ Feingold.

HATCH; Right.

BLITZER: On the issue of gun control, he's now come out with Senator Joe
Lieberman to tighten loopholes on gun show sales. On patients’ bill of rights,
he's teamed up with Senator Ted Kennedy and Senator John Edwards for legislation
that the president has vowed to veto. He opposed the tax cut legislation that
was recently enacted and sent to the president.

Wouldn't he feel more comfortable, perhaps, in the Democratic Party?

HATCH: Well, you have named four iesues out of the thousands and thousands of
issues that come before the Congrei most which of John votes with us on on.
And on those four issu he has particular reasons why he has voted in each of
those cases and why he has led the fights in some of these cases,

So, you know, I don't have any problem with that. We all have cur own way
about doing things. I agree with Harry: John McCain is going to be John McCain.
And he is going to have my friendship and the friendship of, I think, both
sides.

HATCH: And he's going to be as effective as he wants to be. I personally
believe that John's going to continue to be a great Republican, and I expect him
to.

BLITZER: Senator Reid, you were among the few Democrats that had those secret
meetings with Senator Jim Jeffords of Vermont, now the independent, that set the
stage for his leaving the GOF.

Can you tell us that the meeting, the visit that Senator Daschle, your good
friend, to Arizona to meet with Senator McCain this weekend was simply social,
that there is nothing going on that could lead te another Republican senator
leaving the GOP? REID: First of all, John McCain has fans all over this country.
Millions of people voted for him in the Republican primary, A lot of Democrats
would like to have voted for him. So I think this visit to Arizona is
instructive only in that John McCain is an individual.

This trip has been planned for a long time. John McCain is a close, personal
friend of Tom Daschle. They are pals, so to speak. So I don't think that we can
read too much into this visit, other than it just came at this time when Senator
Jeffords, as a matter of conscience, decided to switch. We'll wait and see what
John McCain's going to do, but whatever he does is not based on this trip to
Arizona by Linda and Tom Daschle.

BLITZER: But as you know, Senator Reid, it's not just Tom Daschle who's
visiting Senator McCain in Arizona. It's also Bruce Reed, who was the chief
domestic policy adviser to President Clinton, who's now president of the DLC,
the Democratic Leadership Council, a new Democrat organization here in
Washington,

Doesn't that simply fuel all this speculation that something is perhaps going
on?

10

00800000000938


+----Original Message-----

From: Betsy.Holahan@do.treas.gov [nailto:Betsy. Holahan@do.treas.gov)
Sent: Tuesday, Decerber 04, 2001 11:56 AM

To: Ip, Gregory

Subject: Interview Request

Greg.

Can you e-mail me more specifics about the derivatives story you are working
on? What types of things you would like to discuss with Peter, + Thanks!

Betsy

00800000000306


Davis, Michele

From: Figura, Linda

Sent: January 14, 2002 10:58 AM

To: Davis,

Subject: FW: Reuter request for Secretary O'Neill interview

FYI -- whatever you decide -- it might be better to wait until after Japan but I certainly
defer te your judgement! Tim told me late Friday afternoon that we should just schedule
it -- no need to check w/the Secretary first.

Original Message-----

Adams, Tim

: Monday, January 14, 2002 10:55 AM

To: Figura, Linda

Subject: FW: Reuter request for Secretary O'Neill interview

Linda -- FHON agreed to so the Reuters event -- timing is up to Michele.

~----Original Message--
From: Davis, Michele
Senet: Monday, January 14, 2002 10:34 AM

To: Adams, Tim

Subject: FW: Reuter request for Secretary O'Neill interview

Do we neec to wait til Thersday’s scheduling meeting to talk about this? I don't see how
we could de this this week anyway -- maybe I should tell Reuters we'll do it after the
Japan trip?

~----Original Hessage-----

From: glenn.somervillefreuters.com [mailto:glenn.sconmerville@reuters,com)
Sent: Monday, January 14, 2002 10:29 AM

Tot michele.davistdo. treas.gov@ime.reuters.com.treas,gov

Susject; Reuter request for Secretary O'Neill interview

Goed morning Michele:

Just checking in with you on our request for an editorial board with Secretary
O'Neill: 2 was in California last week with Chairman Greenspan but I understand that Sarah
Edmonds Fas had contact with you about it,

I noticed that you were having a busy time with Enron late in the week so didn't want
you.

Sy t there is any progress on timing, or anything further that we can do, I'd he
glad to hear from you.

Thanks, Glenn

© our Internet site at

Any views expressed in thia message are those of the individual
sender, except where the sender specifically states them to be
the views of Reuters Led.

“00800000000184


Davis, Michele

From: Quinn, Katie

Sent: Tuesday, January 08, 2002 2:54 PM
To: Nichols, Robert; Davis, Michele
Subject: enron

Michele and Rob,

Do hay to know what entity within Ti would be responsible for ing Enron, | know the made

Detonator ae pce meet tan rapa

The ion has come up because | received a call PSI, the Permanent Subcommittee on Investigations. They have
a major congressional investigations into this matter and are interested in Treasury's role.

Any direction you can provide would be appreciated,

Deputy

(Enforcement)

Office of Legislative Affairs
of the Treasury

Department
(202) 622-0725
katie.quinn@do.treas gov

00800000000285


DR. STEVE ROSENBERG, NATIONAL CANCER INSTITUTE: It's important to keep the
problem of cancer in perspective. We can today cure about half of all people
who develop the disease by the application of conventional treatments such as
surgery, radiation therapy and chemotherapy.

And so, in many ways, cancer is a very curable dis . The problem is, the
incidence is so high, over 1,200,000 cases in the United States each year, that
the half of people that cannot be cured amount to almost 600,000 deaths.

But we're learning a great deal about the scientific basis of cancer, ite
cause, how it progre how it spreads through the body. And the more we
understand, the more ely we are to develop good rational treatments. And I
think we're seeing substantial progress based on this scientific explosion of
information.

BLITZER: Well, one of the dramatic developments that's been widely reported
the last few weeks is this pill, Gleevec, that deals specifically with a rare
form of leukemia that seems to have this incredible success rate. It goes after
only the bad celle. It doesn't go after the good cells like chesotherapy and
radiation does. How encouraged should we be by this development?

ROSENBERG: It's a wonderful example that concerns how increased scientific
understanding can lead to a new treatment. This disease, which is uncommon,
acute myeloid leukemia, is the result of two chromosomes that break and join
together in a very unique way. and in joining together they form a molecule
that can be the target of attack. And a small-molecule drug has been developed
that can attack that new molecule that exists only in patients with this disease
and only in the bad cells.

And so it's an example of how, the more we understand scientifically, the
more likely we are to develop effective treatments. And so I think it bodes
well for the future.

BLITZER: Is it the sense in the community, among the experts -- and you're
one of them -- that this breakthrough in this rare form of leukemia, with this
pill, could be used in other forms of cancer?

ROSENBERG: This drug itself will only be effective in patients with this one
unique kind of leukemia and some other rare diseases...

BLITZER: But the concept?

ROSENBERG; But the concept is what‘s critical. and that is, if we understand
the molecular basis of the cause of cancer and its progression, we can develop
rational therapies to combat the disease. And I think it bodes very well for the
application of this scientific information to patients with cancer.

BLITZER: Nancy, im 2000, according to the American Cancer Society, 182,800
women were diagnosed with breast cancer. You organized this incredible event
yesterday, thie Race for the Cure, and you've been involved in this for a leng
time.

How close do you think the community is to resolving this issue of breast
cancer?

NANCY BRINKER, SUSAN G. KOMEN BREAST CANCER FOUNDATION: Wolf, I think we're
getting closer, and I just want to build on what Dr. Rosenberg said.

The fact is, today we have over 400 compounds in the pipeline ready to be
delivered to the patient. Twenty years ago maybe we had a 100. The
translational research piece of this is going to be extraordinarily important
all the way down the line; overcoming disincentives for patients to access care,

vo

00800000000947


MICHELE A. DAVIS
ASSISTANT SECRETARY (PUBLIC AFFAIRS)
TELEPHONE LOG — JANUARY, 2002
6:05 PM

Wednesday, January 16, 2002 — pg 2
[OUTSIDE SCOPE]

00800000000060


BRINKER: 1 think there's a link between smoking and everything.

But the real issue, another issue, Wolf, which you sort of alluded to is, we
have spent -- though, as Michael and I agree, we haven't spent enough money in
this country in this fight against cancer -- but also, some people don't even
belicve that we've made the progress we have.

And we have to do a better job of communicating what is in the clinic today,
what people can do about diagnosing your disease earlier, listening to the
messages that we tell them, and then making it easier for them to access care
when they finally get to treatment.

These issues are huge and will make, I believe, the discernible difference
between living with cancer and living a longer life with it if we execute them

properly.

BLITZER: Very quickly to you, Michael Milken -- I know you want to jump in.
But if somebody is diagnosed with prostrate cancer, what advice do you have
immediately? What is the first thing that they should do?

MILKEN: I think they ought to make sure they see a good urologist and an
expert in the area rather than their local doctor. You know, I've been very
active in nutrition and what that can do. And I think they should have a
positive attitude since there are so many things capable for them to do today.

However, I want to come back to one quick point he The: is enormous
progress and hope that's been made. The public awareness, particularly, of
organizations such as CNN, has dramatically changed the public's view of cancer.

It was less than five or six years ago when you hardly ever saw this in a
public aren: Prostrate cancer alone, we've gone from maybe 2,000 stories to
18,000 stories a year,

And I think it's this awareness -- but we need human capital, scientific
capabilities, cooperation. We still only have 3 to § percent of adults in
clinical trials versus maybe 75 percent for children.

So there is a significant difference today in what we can do. We just need
to get participation. And ft think that requires cooperation of patients,
for-profit, nonprofit. And it's this cooperation that's allowed us to actually
win wars, whether it's World War IT, Gulf war and others, and be successful.
And we have the technology today to do it, and let's get on with it.

BLITZER: We have a lot of viewers who want to ask the three of you questicns.
Let's take a caller, first of all, from Illinois.

go ahead with your question,

CALLER: Hi, Wolf, I'm 13 years old, And I was wondering what kind of cancer
education programs there are for biology students such as myself.

BLITZER; All right, let's ask Dr. Rosenberg.

ROSENBERG; The National Cancer Institute has many booklets and programs that
are available. There is a number that the people can call -- 1-800-4CANCER --
that is sponsored by the National Cancer Institute that will supply, not only
patients with cancer, but their families, with information about a whole variety
of topics related to cancer. And so that is certainly one way to do it.

BLITZER: I know, though, Nancy, there was a lot of commotion when Suzanne
Somers went on Larry King a few weeks ago.

00800000000950


MILKEN: Well, there's many forms of radiation therapy, and it is improved
dramatically over the last eight years. I had radiation therapy myself back in
1993, and it is far better today than even when I had it.

Surgery is very effective when it's confined to your prostate. Sut there are
ether things. There are some men with very low-grade prostate cancer, confined,
who are just undergoing nutrition and stress therapy today with some very
interesting results.

BLITZER: All right, we're going to take a quick break.
We have a lot more to talk about including your phone calls. Stay with us.
(BEGIN VIDEO CLIP)

GEORGE W. BUSH, PRESIDENT OF THE UNITED STATES: For the first time in human
history, we can say with some measure of confidence that the war on cancer is
winnable.

{END VIDEO CLIP)

BLITZER: President Bush speaking on Friday at the White House gathering of
participants in Saturday's Race for the Cure. He pledged more federal support
for breast cancer research.

Welcome back to LATE EDITION. We're continuing our discussion about cancer
with Susan G. Komen Breast Cancer Foundation founder Nancy Brinker; Dr. Steve
Rosenberg of the National Cancer Institute; and cancer activist and
philanthropist, Michael Milken.

Dr. Rosenberg, here are a couple of numbers: 1.2 million new cancer cases
were diagnosed in 2000, according to the American Cancer Society. And it
estimated, 552,000 people will die of cancer this year -- about 1,500 people a
day. Those numbers are staggering.

ROSENBERG: It*s a devastating problem. One in every three Americans now
alive will develop an i ive cancer some time during their life. And
unless we find better ways to treat the disease, one in every six Americans now
alive will die of cancer.

BLITZER: What should someone do? He or she goes to the doctor, and the
doctor says, "You have cancer," and you get scared immediately. But what is the
immediate advice that you should give these people who are diagnosed with sone
form of cancer?

ROSENBERG: Well, the devastating impact of a cancer diagnosis is, of course,
real, But it's important for people to realize that if they receive the
appropriate care, they have about a 50 percent chance of being cured by modern
treatments that exist today. So a diagnosis of cancer is not a death sentence
at all. Half the people can be cured and live out their normal life spans.

The greatest advice I could give to someone, of course, is to not smoke
cigarettes; 100,000 of those 520,000 deaths that will occur this year are
completely preventable if we could only convince people to stop smoking. Lung
cancer now exceeds breast cancer as a cancer killer of women. Lung cancer in
women was almost unheard of 50 years ago. But because of this relentless
campaign to convince women to smoke, it's now become the greatest cancer killer
of women -- a totally preventable disease.

BLITZER: And as far as smoking and breast cancer, there's a link there, too,
right?

a

00800000000949


its advances, And I think this is what the future holds, if we have the
commitment.

Bur I think a combination of both the best that Western medicine has to offer
and alternative medicine -- and many of these medicines are 5,000 years old.
They're not just started last week.

BLITZER: All right,

We're going to take another quick break, but we still a lot more to talk
about, including your phone calls for Nancy Brinker, Dr. Steve Rosenberg and
Michael Milken.

LATE EDITION will be right back.
(COMMERCIAL BREAK)

BLITZER: Welcome back. We're continuing our discussion about cancer with
Susan G. Komen Breast Cancer Foundation founder Nancy Brinker, Dr. Steve
Rosenberg of the National Cancer Institute, and cancer activist and
philanthropist Michael Milken.

We have another caller from New Jersey. Please go ahead with your question.

QUESTION: Yes, hi. I'd like to address it to Mr. Milken, Mike. I'm
undergoing right now under chemo, I'm a cancer patient. And I can't tell you
how devastating this is losing your hair and everything else. But ia there
anything I can do to fight thie crazy disease?

MILKEN: I think there's a lot of things you can doe, and one of the things you
can do is participate in your own treatment.

But I think the other thing is to look at this pericd of time where you're
losing your hair ~~ I've lost my hair a long time ago -- as a shore period of
time in your life. And you're looking forward to that period of time in life
when you're healthy, you're spending time with your children and your
grandchildren and enjoying what you want to do, But you're making that
decision.

We have a lot of people that have gone to boot camp in our country's history
to become better soldiers and defend our country and defend democracy, who
didn't like that boot camp experience either. Sut they made them better men,
better women,

And so, this is just a period of time that you have to make a commitment.
And as we all know, sometimes life is not easy, but it's a commitment you're
making to living for you and your family.

Some day we all hope that we take a little pill or get a little shot like a
polio vaccine, and I think that's what all three of us on this show are focused
on.

That the American people $0 years ago, more than 70 percent of them thought
we'd have a cure for cancer by the year 2000. Very few of them thought we'd
have a man or a woman step on the moon by the year 2000. Well, both of those
things proved to be inaccurate, And I think it's partly a fact that we have not
invested enough money or made it a high enough national priority or brought the
human resources.

It wasn't that long ago, Steve, you remember we were sitting in a table maybe
15 years ago, and you were talking about, did you have enough money to rent a
Winnebago to take your three girls on vacation. And I think we've got to create

au“

00800000000952


Davis, Michele

From: Holahan, Betsy

Sent: Friday, January 11, 2002 1:21 PM
To: Davis, Michele

Subject: Enron CNBC requests
Importance: High

CNBC Business Center (after 6 pm) and Market Wrap (4:30 pm) programs both want Peter today. | wil call to decline
unless there is someone else you want to send in his place...

0800000000264


Davis, Michele

From: Strickler, Marie

Sent: Tuesday, January 15, 2002 6:23 PM

To: Davis, Michele

Subject: #3 - Phone Calls

2:05 703-683-9733 Christine Hall, cnsnews.com - would like to speak with someone in the GC's

office re standards of conduct for government employees (political & career) who
receive calls such as the Enron calls

[OUTSIDE SCOPE}

00800000000180


Davis, Michele

From: Adams, Tin

Sent: , January 14, 2002 6:05 PM

To: Davis, Michele

Ce: Nichols, Robert

Subject: Congressional Hearings on Enron

Michele -- to prepare for the ht of document requests and hearings, Davic Aufhuaser and John Duncan are se!

ting
2 prep/response team. We your help. Can assign someone (or multiple somones) from your office to help us.
pate build timelines, monitor the press, etc? Trenke pad ) wy e

00800000000251


uition of it is the path to @ gold standard, which solves the p-cblem
you and Nader and I ail worry about, for cur dif‘erent reasons.

0080000000183


Davis, Michele

Sent. Friday, Janway 11, 2002 2.09 PM

it: fiday, January 11,

To: Davis, Michele”

Subject: Betsy said you are handling Enron calls!

Please call Jim Popkin at NBC at 885-4256 regarding Enron. Thanks!

00800000000265


MICHELE A. DAVIS

ASSISTANT SECRETARY (PUBLIC AFFAIRS)

TELEPHONE LOG - JANUARY, 2002

6:05 PM

[OUTSIDE SCOPE]

$:05 776-9464
$:13 824-8214
[OUTSIDE SCOPE]

5:25 824-0566

[OUTSIDE SCOPE]

5:49 861-4096

5:$5 626-8472

Pete Yost, AP — Please call

Bill Neikirk, Chicago Tribune, REF: ENRON

Rex Nutting, CBS Market Watch — Please call re Secretary and

Ken Lay

Adam Zagorin, Time Mag, REF: ENRON

Ken Fireman, NewsDay, REF: phone conversation between Mr.

O'Neill & Mr. Lay

00800000000073


Potential Onxiots Trade Legisiation

{(b)(5)]

00800000001367


BLITZER: And she was diagnosed with breast cancer. And then she then came up
and defended an alternative approach, not the standard traditional approach. I
want you to listen to what she said on Larry King Live.

(BEGIN VIDEO CLIP)

SUZANNE SOMERS, ACTRESS: We're all looking for all the alternatives. You
know, I straddle the fence between Western, Eastern and holistic medicine. And,
if I can heal first with Eastern and holistic, I'd rather go there than take
chemicals. I'm very antichemical. That's what my books are about,

(END VIDEO CLIP)

BLITZER: Now, she could obviously influence a lot of people out there. Is
that wise, what she's saying, to try some alternatives before you go with the
recommended procedures?

BRINKER: I don't want to comment on anyone's treatment. I mean, what she's
decided, we each have a free choice to make on that issue. And I agree with
Michael, there are some conventional people locking at complementary medicines,
and there already are some data which are somewhat convincing.

But I would say that I still think and believe, as a breast cancer survivor
myself, and as someone who's lost someone very dear to me, that the best route
really is still to understand, look at the literature, take a long look at it.

Patients today have a better chance than ever of being advocates for their
own care. You know, check with the National Cancer Institute, do all the
research in the world you want to do. But it's still a combination of some
very, very gocd conventional therapy.

And, if you want to try some, make sure whatever you do doesn't conflict with
the therapy you're having. That is the real problem we get into.

BLITZER: Dr. Rosenberc?

ROSENBERG: Good medicine is based on evidence. And certainly in breast
cancer there is wonderful evidence that conventional chemotherapy can prevent
the recurrence of breast cancer, following initial treatment of a primary
disease, that it can prolong life even after the disease has spread.

And so, although we'll take any treatment that works, whether it's called
complementary or conventional, certainly people should use treatments that have
been proven to be effective. And certainly many of the conventional treatments
in breast cancer have been shown to be very effective.

BLITZER: Michael Milken, you know that there are a lot of people looking for
that magic pill out there, that bullet to deal with their cancer, but that's
obviously very, very unrealistic.

MILKEN: Well, I have explored, myself, both what we might call alternative --
Indian, Chinese -- medicine, as well as traditional Western medicine. And I
believe some day there will be that pill.

But being a cancer patient takes courage. It takes courage to undergo the
treatments. And it's not always an easy course, and many people don't have that
courage.

The promise is that, as Dr, Rosenberg has said, many of these things are
totally successful today. And when we see people like Scott Hamilton, who had
testicular cancer, Lance Armstrong, who had cancer spread throughout his entire
body, they are living symbols of the commitment of Western, modern medicine and

3B

00800000000951


Chinese that will allow the plane to be brought out and in a manner that we can
hopefully put it back together without too much difficulty. And we have our
plane back, which is what our objective was.

BLITZER: Mr. Secretary...

POWELL: And I'll make a different -- I'l] make a lot of judgments as to
whether or not it is appropriate for me to visit China in the very near future.
I'm looking forward to it, haven't been there in 16 years, and I'm looking
forward to visiting at some point in the future when it's appropriate to visic.

BLITZER: And as far as the president's visit, that's still set for later this
year?

POWELL: It is still on his calendar, and we haven't had any discussions
recently about changing his calendar,

BLITZER: You have a full calendar, a full agenda.
POWELL: Yes.

BLITZER: Mr. Secretary -- General Powell, it's hard for me to still call you
“Mr. Secretary,” I'll call you "Mr. Secretary," though. Thanks for joining us.

POWELL: Well, thank you very much, Wolf.

(END VIDEOTAPE)

BLITZER: And just ahead, with Democrats expected to take control of the
Senate, there's a new question that has come up: Will another Republican change

sides?

We'll talk about the impact of the new power shift with two leading senators,
Utah Republican Orrin Hatch and Nevada Democrat Harry Reid,

LATE EDITION continues right after this.

(COMMERCIAL BREAK)

(BEGIN VIDEO CLIP)

SEN. TOM DASCHLE (D-SD), MINORITY LEADER: We will be providing for 51 place
settings in our caucus, beginning on Tuesday. Fifty-one place settings is, I
think, ample precedent for the one-vote majority that we'll expect to have in
all of the committees.

(END VIDEO CLIP)

BLITZER: South Daketa Democrat Tom Daschle discussing the Senate
reorganization scheduled for this Wednesday, Senator Daschle will assume the
title of U.S. Senate majority leader.

Welcome back to LATE EDITION.

Joining us now to talk about the change and its impact on the legislative
agenda are two leading members of the Senate. Here in Washington, Utah
Republican Senator Orrin Hatch. As a result of the power shift, he'll be the
ranking member of the Judiciary Committee. And joining us from his home state of
Nevada, Senator Harry Reid. He's the Senate's second ranking Democrat and will
assume the title of majority whip.

Senators, good to have you back on LATE EDITION.

00800000000936


MICHELE A. DAVIS
ASSISTANT SECRETARY (PUBLIC AFFAIRS)
TELEPHONE LOG ~ JANUARY, 2002

6:05 PM

Friday, January 11, 2002, pg 1.

[OUTSIDE SCOPE]

9:35 862-6605 Jim McTague, Barrons, REF; ENRON and moneymarket

942 626-2061 Tamara Lipper, Newsweek, REF: ENRON

[OUTSIDE SCOPE]

9:51 862-9255 Debra, Dow Jones, REF: Question about Peter Fisher specifically
relating to ENRON (she already spoke w/Betsy)

[OUTSIDE SCOPE]

12:16 885-4363 David Gregory, NBC News, REF: ENRON

12:16 898-7666 John King, CNN, REF: ENRON

12:17 457-4461 Bill Plante, CBS WH, REF: ENRON - he heard in the AP wires
that Treasury will intervene in credit extension; question about it

1218 393-6880 David Ivanovich, Houston Chronicle, REF: ENRON

12:18 §24-8214 Bill Neikirk, Chicago Tribune, REF: ENRON - & your story today

12:20 222-7276 Arianna, ABC, REF; ENRON

12:25 334-7326 Glen Kessler, WP, REF: ENRON

00800000000065


Davis, Michele

From: Glenn Kessler Tress po ase com]
Sent: Friday, January 11, 2002 12:40 PM
To: Michele Davi treas.gov
Subject: RE: more enron
, I left you « messa o talk to you about it.

ors =

© also talk to the principals.

00800000000262


and Medicare. The Social Security, Medicare money io what is called locked up
in the lockbox, and we have another trillion dollars on top of that.

There is plenty of money to do these things and let the American people have
the fruits of their own labor instead of hauling it into Washington so it can be
turned into more wasteful Washington programs.

BLITZER: How worried should Americans be right now, Mr. Secretary, about a
recession?

O'NEILL: Well, you know, I'm an optimist, and I think that most Americans are
optimistic. And so long as we do the things that we know from economic history
are right -- monetary policy that 1s and provides the interest rate that
Chairman Greenspan has provided, f 1 policy that lets people spend their own
money, and then the American people out there, individually and together,
working hard to improve productivity -- our economy is going to be a continuing
fabulous economy. It's the envy of the whole world.

And we are going to have 3.5 percent real growth rates going forward. We're
going to produce more money that can be sent back to the people than most people
can imagine.

BLITZER: 3.5 percent growth rate this year? Is that what you're predicting?

O'NEILL: No, no, no, 1 didn't say this year. I said, it is the natural
tendency, I think, of our economy to be able to grow in the rate of someplace
between 3 and 4 percent real growth. We've got the fundamentals in place to
achieve that. We have the technology, we have the energy and spirit to make
these things happen. We're going to be fine.

BLITZER: On that note, I'm going to thank you very much, Mr. Secretary, for
joining us.

O'NEILL: My pleasure. Thanks very much.
{END VIDEOTAPE)

BLITZER: And up next, the wait for justice in the Timothy McVeigh case. Now
that the Oklahoma City bomber is asking for a stay of execution, what does his
request mean for a final resolution te the case? We'll ask two men who spent
hours talking with McVeigh, authors Lou Michel and Dan Herbeck, LATE EDITION
will continue right after this.

(COMMERCIAL BREAK)

BLITZER: Welcome back to LATE EDITION.

This past week, Oklahoma City bomber Timothy McVeigh asked his lawyers to
seek a stay of his scheduled June 11 execution. He made the request after the
Justice Department announced it was turning over more previously unreleased
files related to McVeigh's case,

With us now from Buffalo, New York, to offer some insight into this story are
two quests: Buffalo News reporters Dan Herbeck and Lou Michel. They conducted
extensive interviews with Timothy McVeigh, Those interviews were chronicled in
their book, the book they co- authored, entitled, *Aserican Terrorist: Timothy
NeVeigh and the Oklahoma City Bombing.”

Gentlemen, welcome to LATE EDITION.

And I want to begin with you, Lou. Is it your sense right now that Timothy
McVeigh no longer wants to be executed, wants to fight this execution as much as

6

00800000000943


Tomahawk missiles off of Navy warships. He was doing the same thing. He called
the Murrah Building a legitimate target.

In the same breath he says, "I have nothing against the people of Oklahoma
City," though certainly they disagree. But he feels that his target was the
federal government and any federal building would have made a legitimate target.
He calla them command-and-control centers.

BLITZER: Dan, you spent a lot of time with Timothy McVeigh, talking to him.

BLITZER: He grew up in western New York, just as I did, where both of you are
living right now, in Buffalo, or just outside of Buffalo.

What made him snap? What convinced him to begin this warfare, if you will,
against the U.S. government?

DAN HERBECK, CO-AUTHOR, “AMERICAN TERRORIST": Well, I wish I had an easy
answer to that question, Wolf. Sut I think that the real changes in his life
that really put him over the edge took place in the army and immediately after
his army service, because in the army, he learned -- and I am not blaming the
bombing on the army --but he learned that killing can be used to accomplish a
goal. And then after being in the army, he got sore and more ingrained in the
gun culture, and he felt that the U.S. government was treating gun owners
unfairly.

And then, t think, if you want to find any real turning point, it would be
the day that he saw the Waco siege on television in Terry Nichols’ living room
-- James Nichols’ living room, and stood there and watched the Waco compound
burning. I think if there was any one turning point, McVeigh has told us that
was it.

BLITZER: Let's take a quick caller from Georgia. Please go ahead with your
question.

CALLER: Thank you, Wolf.

Do you think that the death penalty deters crime? And do you think that
McVeigh ought to be executed June 11, or do you support the delay?

BLITZER: What about that, Lou?

MICHEL: I don't think that the death penalty does deter crime. I think police
chiefs, police commissioners, law enforcement, judiciary who have been queried
over the years, have found no change in the death penalty. In fact, in some
states where they have the death penalty, particularly down South, you have a
higher murder rate.

$o I think capital punishment sends a subtle message of pushing violence
further and further in our society. We are so enmeshed in it, from our
entertainment to the way we live.

BLITZER: Dan, we only have a few seconds left, but there has been some
speculation in resent days, fresh speculation, about a John Doe number two. Do
you believe that McVeigh is possibly concealing evidence, is trying to protect
someone else who may have been involved in this conspiracy?

HERBECK: I really don't, Wolf. And if anyone wants to find out more about it
-- and I don‘*t mean this as an ad for cur book -- but read the book, And it
lays out step by step what was done to assemble this bomb and deliver this bomb.

Then after reading the book, I would ask people to ask themselves if there
was John Doe number two, if there were all of these other s0- called

v7

00800000000945


conspirators, what were their jobs? What was there for them to do? You'll you
see in the story that there really wasn't any need for other people.

And if there were other John Does, what have they been doing for the last six
years? It just doesn't make sense.

BLITZER: All right. On that note, unfortunately, we have to leave it. Lou
Michel and Dan Herbeck, I want to thank both of you for joining us on LATE
EDITION,

MICHEL: Thanks, Wolf. HERBECK: Thanks you.

BLITZER: Thank you, and we have to take a quick break.

For cur international viewers, World News is next,

For cur North American audience, stay with us for the second hour of LATE
EDITION. We'll have a conversation about the fight against cancer. How close
are we to a curc?

Plus, our LATE EDITION roundtable and Bruce Morton's “Last Word.* It's all
ahead in the next hour of LATE EDITION.

(COMMERCIAL BREAK)

BLITZER: This is the second hour of LATE EDITION, the last word in Sunday
talk.

(BEGIN VIDEO CLIP)

PRESIDENT GEORGE W. BUSH: I hope, I believe and I pray that we are on the
verge of great victories against cancer.

(END VIDEO CLIP)

BLITZER: The capital hosts a race for the cure. How close are we to beating
cancer? We'll get perspective from Breast Cancer Foundation founder Nancy
Brinker, Dr. Steve Rosenberg of the National Cancer Institute, and cancer
activist Michael Milken.

Plus our LATE EDITION roundtable: Steve Roberts, Susan Page and David Brooks.

And Bruce Morton has the “Last Word" on the president's fiscal fairytale.

Welcome back. We'll get to our discussion about cancer and the possibilicy
of a cure in just a moment, but first, let's go to Donna Kelley in Atlanta for a
check on the hour's top stories.

(NEWSBREAK)

BLITZER: We turn now to the fight to cure cancer, Joining us, three guests:
Nancy Brinker is the founder of the Susan GO. Komen Breast Cancer Foundation and
Race for the Cure. The foundation is named in honor of her sister, who died of
the disease. Dr. Steve Rosenberg ia chief of surgery at the National Cancer
Institute. And Joining us from Los Angeles is philanthropist and cancer
activist Michael Milken.

Thanks to all of you for joining us on LATE EDITION.

And, Dr. Rosenberg, I want to begin with you. The war on cancer, how
winnable is it?

00800000000946


Davis, Michele

— _ —— $$$
From: Holahan, Betsy

Sent: Friday, January 11, 2002 12:07 PM

To: Davis, Michele

Subject: Enron inquiries...

Importance: High

Jonathan Fuerbringer, NYTimes, 212-556-3550, wants to talk to Peter off-the-record
Natalie Henry. Greenwire, 202-737-4340, wants to confirm Lay/PON conversations
Tamara Lipper, Newsweek, 202-626-206, wants to tafk to Peter

| can start dectining requests for interviews with Peter if you like, although | assume the reporter will then start putting the
questions to me...let me know if | can do anything to help with your call volume today

00800000000259


domestic policy adviser to President Clinton for eight years, he'a there at --
he was at the ranch with Tom Daschle as well, at McCain's ranch ut we know
that Bruce Reed is passionate about, not only health care, patients’ bill of
rights, but tobacco -- McCain is passionate about that -- and guns, a big issue.
Those are not traditionally associated with the conservative wing of the
Republican Party.

BROOKS: Yes, that's true, but I wi it a Democratic Leadership Council
meeting in Plorida a couple of wee ago, and many of the leaders in that
movement had a sense the Democratic Party was moving to the left, a little way
from them. And so there ie naturally going to be looking to the other side.

The other issue I would finger, aside from the ones you've mentioned, is
national service. Sush really ran on reinstilling faith in America, in
America's young people. I know he and Will Marshall of the DLC have gotten
together to talk about national service, to really find ways to get people,
especially young people, reengaged in public life.

BLITZER: How...

PAGE: David makes a good point in talking about the Democratic Party, as well
as the Republican Party, because I think the Democrats do have a problem.

PAGE: It's going to be a real task for Daschle not to have them run off to
the left and not to have all of this pent-up demand for kind of identifiable,
liberal, Democratic positions, becauge that is going to be no more popular, no
more sustainable than it ie for Republicans to pursue only conservative
positions and conservative bills.

BLITZER; All right. We're going to talk about that ehift in the Senate and
some other issues, including Timothy McVeigh, but we're going to take a quick
break.

When we come back, got more of our LATE EDITION roundtable.
(COMMERCIAL BREAK)
BLITZER; Welcome back to our roundtable.

Steve, on Wednesday, Wednesday morning at the end of the business day,
Tuesday there will be a new majority and a new minority in the U.S. Senate.
Trent Lott will be the minority leader; Tom Daschle will be the majority leader,

Listen to what Trent Lott was quoted as saying in the Washington Times
earlier this week on Thursday. He id this: “There is something liberating
about being in the minority. You're not as consumed with trying to move the
train. You're freer to advocate positions and amendments you really think
should be adopted.*

ROBERTS: Absolutely, it's true. You know that when are you in the minority,
you throw hand gren. #. When you're in the majority, you have to catch then,
It's a much higher-risk occupation.

But this shift is going to be important. [t's not going to be that important
in terms of the Democratic agenda, because there 1 still a veto power in the
Republican House.

But there are two areas to watch. I was talking to Orrin Hatch about this,
and he mentioned this when you talked to her earlier. Already we see judicial
nominations that are not being made because if they're perceived as too
ideological they won't get through.

00800000000956


MICHELE A. DAVIS
ASSISTANT SECRETARY (PUBLIC AFFAIRS)
TELEPHONE LOG — JANUARY, 2002
6:05 PM

Tuesday, January 15, 2002 —pg2
2:05 703-683-9733 Christine Hall, cnsnews.com — would like to speak with someone
in the GC’s office re standards of conduct for government

employees (political & career) who receive calls such as the Enron
calls

[OUTSIDE SCOPE]

00800000000062


MICHELE A. DAVIS

ASSISTANT SECRETARY (PUBLIC AFFAIRS)

TELEPHONE LOG ~ JANUARY, 2002

6:05 PM

Tuesday, Janus:

[OUTSIDE SCOPE]
11:06 393-4340
1:0 776-9464

1:14 861-4032
[OUTSIDE SCOPE}

12:20 434-0980

12:43 201-346-5825

12:55 628-9029

[OUTSIDE SCOPE]

Bob Novack, Syndicated columnist & your friend, REF:

he's

interested in the Secy’s connection with Mr, Wirth & Mr. Lay in

the Kyoto Treaty

Pete Yost — would like to talk with you about getting copies of
Congressional correspondence to Treasury and the responses re

Enron

Jeff Birmbaum, Fortune Mag, REF: ENRON

Pete Spiegel, FT — Please call re Enron

Andrew Conti, CNBC — would like to request interview
w/Secretary on Enron

Darren Gersh — would like interview w/the Secretary today or

tomorrow or when convenient on Enron

00800000000061


MICHELE A. DAVIS

ASSISTANT SECRETARY (PUBLIC AFFAIRS)

TELEPHONE LOG - NOVEMBER 2001

1:24 PM

Wednesday, November 28, 2001 — p. 2

[OUTSIDE SCOPE]

3:16 775-0240

3:19 2-2212

3:23
{OUTSIDE SCOPE]

3:45 456-5280

3:48 942-7165
[OUTSIDE SCOPE}

Steve Marcy, EngArgus — pls call re Enron—is the Admin.
Planning anything kind of assistance for the company?

Jared Gross ~ Peter Fisher said that Ari Fletcher said in his press
briefing that Treasury is handling the Enron situation; Peter thinks
we should get together to discuss how we will handle it

Jake Schlesinger — Note: CNBC flashed something on Enron

Claire — spoke w/Rob re Enron
Michael Robinson, SEC Press — re Enron (gave to Betsy)

00800000000074


MICHELE A. DAVIS
ASSISTANT SECRETARY (PUBLIC AFFAIRS)
TELEPHONE LOG — JANUARY, 2002
6:05 PM

Monday, January 14, 2002 — pg 2
[OUTSIDE SCOPE]

00800000000064


{(b)(5))

ITTRSayly May 4, 1999

00800000001368


PAGE; I think that if the first Supreme Court justice position to be filled,
it would be filled by one of two people. One would be an Hispanic judge, and
there are a couple of possibilities. And the other is the man who was on this
show, Orrin Hatch, because Senator Hatch is a conservative Republican, but he's
a senator with good relations with Democratic senators. And those are the two
nominations, the two types of nominations that could get confirmed, I think,
without very much trouble.

BLITZER: All right. I want to epend a little bit of time talking about the
media's coverage of the Bush twin daughters. It's been a subject that's caused
a lot of controversy. We've been flooded with e-mails from both sides to a
certain degree, but a lot of people think we shouldn't even mention this
subject, these 19-year-old girls who are about to be sophomores in college.

Some people say, though, Bush himself, the president brought this on us by
referring to his own daughters. Listen to this montage of statements the
president said about his daughters and the issue that came up at the end of the
campaign on November 2 when it was revealed he wae arrested many years earlier
driving under the influence of alcohol. Listen to this.

(BEGIN VIDEO CLIP)

BUSH: I made the decision that, as a dad, I did not want my girls doing the
kinds of things I did.

{END VIDEO CLIP)
(BEGIN VIDEO CLIP)

BUSH; I didn’t want to talk about this in front of my daughters. I told my
daughters they shouldn't be drinking and driving.

{END VIDEO CLIP)
{BEGIN VIDEO CLIP}

BUSH: I'm a dad. I'm trying to teach my children right from wrong. I chose
the course that, to my daughters, I was going to tell them they shouldn't drive
and drink, and that's the course of action I tock.

(END VIDEO CLIP)

BLITZER: Is this a story, shouldn't we be reporting when the girls get cited
for false ID or whatever? ROBERTS: Yes, and I know the public doesn't agree with
us. CNN poll, 84 percent said this should be a private matter, so it's an
unpopular point of view,

A, this is a fact, not a rumor. They were cited.

Secondly, one of the daughters, Jenna, has been cited twice in the last
month.

Third, and sost importantly, as what we just saw, Bush himself used his
daughters to deflect criticism. He said, *I'm not going to talk about my own
past because I want to be a good role model for my kids.* Fair enough.

But he hag injected that idea, he used them in the campaign. He is the one
who introduced the whole issue of his daughter's behavior in the political
campaign. It's justified for us to cover it, and it's justified for us to
expect as a country for him to be talking about it now and setting a better
example than he's doing right now.


And don't forget to sign up for my weekly e-mail at cnn.com(email.

When we return, we'll reveal what's on the cover of this week's eajor news
magazines. Stay with us-

(COMMERCIAL BREAK)
BLITZER; Beautiful day here in Washington.
And now a look at what's on the cover of this week's major news magazines.

*TIME" magazine welcomes you to “Amexica: The border is vanishing before our
eyes, creating a new world for all of ua", on the cover.

*“Newaweek" has a special report: *Aids at 20. Can this man find a vaccine?"
with Seth Berkley (ph), founder of the International Aids Vaccine Initiative, on
the cover.

And on the cover of *U.S. News and World Report,” “Sin City mo more? Why Las
Vegas is the face of America's future."

And that's your LATE EDITION for Sunday, June 3. Please join us again next
Sunday and every Sunday at noon Eastern for the last word in Sunday talk.

And if you missed any of today's program, you can tune in tonight, 7:00 p.m,
Eastern, for a one-hour replay of LATE EDITION.

T'll see you tomorrow night on Wolf Blitzer Reports, 8:00 p.m. Eastern. My
special guest, New York Mayor Rudy Giuliani.

Until then, thanks very much for watching. Enjoy the rest of your weekend.
I'm Wolf Blitzer in Washington.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR
SECURE ONLINE ORDER FORM LOCATED AT wew.fdch.com

LOAD-DATE: June 3, 2001

00800000000961


Davis, Michele

Figura, Linda
, January 14, 2002 12°55 PM

Davis,
RE: Reuter request for Secretary O'Neill interview

From:
Sent:
To:

Lunecn on Wed., the 30th?
Breakfast or Lunch on Thursday, the 31st?

-----Original Message--<---

From: Davis, Michele

Sent: Monday, January 14, 2002 12:42 FM

To: Figura, Linda

Subject: RE: Reuter request for Secretary O'Neill interview

then let's schedul
Tuesday, since thi

it for the week of the 23th. What day works? We shouldn't do .
3 the State of the Union

iahababen Original Message=--<--

From: Figura, Linca

Sent: Monday, Canuary 14, 2002 10:58 AM
To: Cavis, Mic!
Subject: FW: Reuter request for Secretary O'Neill interview

FYI == whatever you decide -- it might be better to wait until after Japan but 1 certainly
defer to your judgement! Tim told me late Friday afternoon that we should just schedule
it -- no need to check w/the Secretary first.

--Original Message-----

Adams, Tim

Ri Monday, January 14, 2002 10:55 AM

To: Figura, Linda

Subject: FR: Reuter request for Secretary O'Neill interview

Linda -- FHON agreed to so the Reuters event == timing is up to Michele.

 aeteeael Original Message-----

From: Davis, Michele

Sent: Monday, January 14, 2002 10:34 AM

To: Adams, Tim

Subject: FW: Reuter request for Secretary O'Neill interview

Do we need to wait til Thursday's scheduling seeting to talk about this? <= don’t see how
we could do this this week anyway -- maybe I should tell Reuters we'll do it after the
Japan trip?

-Original Message-----

ille@reuters.com [mailto:glenn.somervilieSreuters.com]
Monday, January 14, 2002 10:29 AM

Te: chele.davisico. treas,gov@ime. reuters.com.treas.gov

Subject: Reuter request for Secretary O'Neiil interview

Geod morning Michele:

cust checking in with you on cur request for an editorial board with Secretary
O'Neill: I wags in California last week with Cheirnan Greenspan but 1 understand that Saran
Edmonds has had contact with you about it,

I noticed that you were having a busy time with Enron late in the week so didn't want

0080000000186


MICHELE A. DAVIS
ASSISTANT SECRETARY (PUBLIC AFFAIRS)
TELEPHONE LOG — JANUARY, 2002

6:05 PM
Frida 00:
10;21 776-9464 Pete Yost ~ Please call re Enron
[OUTSIDE SCOPE]
10:23 222-7715 Katie Texture, ABC — Please call re Enron
[OUTSIDE SCOPE]
11:08 862-6658 Jake Schlesinger, WSJ, REF; following up on an email
[OUTSIDE SCOPE]
1:51 727-893-8217 Sydney Freedberg, St. Petersberg Times ~ Please call re a story for
tomorrow on Enron and International tax havens
1:52 626-2061 Tamara Lipper, Newsweek — Please call re Enron
[OUTSIDE SCOPE]

00800000000056


DESARTMENT OF THE TREASURY
WASHINGTSN, 0.5. 20225

May 5, i999

MEMORANDUM FOR DEPUTY SECRETARY SUMMERS

THROUGH: Linda Robertsen =
Assistant Secretary
Office of Legislative Affairs & Public Liaison
FROM: Steve Bachar
Director
Office of Business & Public Liaison
’
Deputy Assistant Secretary
Office of Public Liaison
SUBJECT: Private Sector Briefing on Africa Growth and Opportunity Act
Date & Time Thursday, May 6
4:00-5:00 p.m.
Location Rocsevelt Room
The White House
PARTICIPANTS:
Treasury Deputy Secretary Summers 5
Others Charlene Barshefsky on
Gene Sperting (t) s
PRESS: Closed
CONTACT: Steve Bachar, 622-1660
BACKGROUND: :

{(b)(5))

00800000001360


eee
From: Holahan,

Sont: Viedresitey, Bocenber 08,2 2001 9:26 AM

To: Davis, Michele; Fisher, Pi

Cec: Gross, Jared

‘Subject: WSJ Interview Request

I asked Greg Ip for more information regarding an interview request he put in for Peter
earlier this week [(b)(5)] Thanks.

~----Original Message--
Ip, Gregory [mailto:Gregory. Ip@wsj.con)
Tuesday, December 04, 2001 3:50 PM
"Betsy. Holahan#do.treas.gov’

Subject: RE: Interview Request

Betsy -

We're asking the question {in the light of Enron), how much has changed with
respect to the disclosure and regulation of derivatives and other sources of
systemic risk since LICM, why, or why not. Peter was talking to us (on the
record) in Auguat about this issue. We'd like to follow up on that
discussion, and om things like the report of the Financial Stebility Forum
on enhanced disclosure that he chaired, to see where he thinks we've made
progress and where more work needs to be done. As I mentioned, we are on a
short deadline but if he ‘¢an't do it by tomorrew, Thursday would probably
also work,

Thanks.

Greg Ip

Eccnomics Reporter

The Wall Street Journal
202-862-9238 (office)

202 [(b)6)] (cet)

chatatatet Original Message--
From: Betsy. Holahanédo, a3.gov (mailto:Betsy.Holahan@do.treas. gov)
Sent: Tuesday, December O4, 2001 11:56 AM

To: Ip, Gregory

Subject: Interview Request

Greg,

Can you e-mail me more specifics about the derivatives story you are working
on? What types of things you would like to discuss with Peter, ete. Thanks!

Betsy

00800000000302


MICHELE A. DAVIS

ASSISTANT SECRETARY (PUBLIC AFFAIRS)

‘TELEPHONE LOG ~ JANUARY, 2002
6:05 PM

Friday, January 11, 2002, pg 3

its 383-0038

1:17 824-6491

1:20 885-4256
1:22 626-8483
[OUTSIDE SCOPE]

1:35 513-2267

1:36

[OUTSIDE SCOPE]

1:55 737-7124
1:59 434-0301
[OUTSIDE SCOPE]

2:05 776-9464

2:19 626-8472

Ken Monitzugu, Knightridder, REF: ENRON

Kelly, Fox News, REF; she would like to have an interview you on
ENRON, pls call her or Maggic at 824-6369

Jim Popkins w/Tom Brokaw, REF: ENRON

Jim Toedtman, Newsday, REF: ENRON

Pam Fessler Nat! Pub Radio, called again, REF; wants to confirm
what's on the wires statement today on ENRON & Peter Fisher;
also wanted to know if there are any press releases (also on Rob's
call list)

Dick Stevenson says his fax # is 862-0427, his email is
rstevenson@nytimes.com; he's expecting the statement from you

Carolyn Lockhead, SF Chronicle, REF; ENRON
Nicole Durand, American Banker, REF: ENRON & Peter Fisher

Peter Yost, AP, REF: ENRON - it's not any breaking news - he can
wait

Ken Fireman, Newsday, REF: ENRON & Peter Fisher

00800000000067


MICHELE A. DAVIS
ASSISTANT SECRETARY (PUBLIC AFFAIRS)
TELEPHONE LOG ~ JANUARY, 2002

6:05 PM

Friday, January 11, 200. 2

12:25 776-7405 Matt, CNBC, REF: ENRON

[OUTSIDE SCOPE]

12:27 862-9238 Greg Simpson, WSJ, REF: ENRON

12:28 898-7647 Chuck, CNN, REF: ENRON

12:30 466-4857 Bob, CBS, REF: ENRON

12:31 861-9220 Eddie, LA Times, REF: ENRON

12:34 682-9029 Darren Gersh, Nightly Busn Report, REF: He heard on the wires
that there will be a briefing for reporters on ENRON

12:35 862-0375 Dick Stevenson, NY Times, REF: 1) ENRON questions and 2)
request interview w/the Secy

[OUTSIDE SCOPE]

12:37 661-8414 Robert Dodge, Dallas Moming News, REF: ENRON

12:40 383-2251 Kathy, Pratt News Svc, REF; ENRON

12:50 $13-2267 Pam Fessler Natl Pub Radio, REF: statement you made today on
ENRON & Peter Fisher, also wanted to know if there are any press
releases

12:59 222-7276 Arianna, ABC, called again, REF: ENRON

[OUTSIDE SCOPE]

1:00 646-223-6660 Michele Fluery, BBC, REF: ENRON, her deadline is 3:30PM

00800000000066


and the Palestinians. Would that have been a useful purpose?

POWELL: No, there was nothing to meet about. I talk to them all of the time.
You can't simply drop in every time you are in the region. And you know, there
is a limit to how much you can just drop in if the two sides are not ready to
have a serious engagement .

In fact, it is over-involvement on occasion. Over-involvement on the part of
the most senior people in government tends to keep people from making the kinds
of decisions they have to make, because they are always looking for a little
better deal, and “The Americans are coming. They'll make it happen,” or, “The
Americans will put pressure here, the Americans will do that.”

Sometimes it's wise to handle things at not the highest level, everybody
dropping in at the drop of a hat. I will go to the Middle East. I will talk ta
the parties concerned in person when there is something that I can bring to the
table that is useful helping to solve the problem and not just chat for the sake
of chatting. I'm able to talk to them any time I wish, and I do on a regular
basis.

BLITZER: I just want to tie up one loose end from the Mitchell report, former
Senator George Mitchell's recommendations, most of which you accepted.
Although, one nuance, there seems to be a problem, the freeze on Israeli
settlements, including the natural growth freeze, What is the position of the
Bush administration? Must the Israelis right now completely freeze settlement
activity, including the so-called natural growth activity?

POWELL: Our position has been -- and it reflects the Israeli position -- that
there will be no new settlements. The natural growth isaue is a very, very
sensitive one, The Israelis say, “You know, families have children, and they
live in that settlement. How can there be no natural growth?" The Mitchell
Committee said that should stop. The Palestinians want that to be stopped.

Im the deal that Mr. Arafat was unable to accept in January, the Taba deal,
the settlement issue was to a larce part solved as a result of that negotiation.
He couldn't accept it.

The American position is that we believe that two sides have to discuss this
expanding-of-existing-settlements issue. But for everybody to categorically say
to Israelis at this point that this is simply not anything that can be discussed
might have caused a different sort of response to Mitchell Committee report.

POWELL: And so we tried to at least leave this as an issue to be resolved
between the two sides as part of the confidence-building measures discussion,

Por 20 years, American administrations have always said to the Israelis,
"These kinds of activiti @ provocative, and they don't help get to us a
settlement." And so we really have to find out a way to break through this
settlement issue in a way that is acceptable to both the Israeli and Palestinian
sides.

BLITZER; We only have a few seconds left, but I want to ask a quick question
on China. The EP-3 is about to be returned in pieces to the United States from
Hainan Island. Will chat set the stage for a visit by Colin Powell to China in
the next several weeks, or set the stage for the president's visit later this
year to Beijing?

POWELL: My judgment as to whether or not it's appropriate for me to visit
China will ke driven by a number of issues, and not just when the plane comes
out or if the plane comes out.

t'm confident the plane will come out. We now have an arrangement with the

7

00800000000935


Davis, Michele
From: Bradshaw, Tara

Sent: ), January 07, 2002 3:31 PM
To: Fratto, Tony. Davis, Michele
Subject: Tax havens & Enron! this will be tun
Importance: High

FY

-----Oricinal Message-----

From: HE-DI PRZYSYLA, BLOOMBERG/ WASHINGTO
(mailto: RPRZYBYLA@b]oomberg.net)

Sent: Monday, Janvary 07, 2002 3:23 PM

v ara,Bradshax@do,treas.gov

Subiect: Re:

hey Tara. Tnanks for the quick response. Th are the questions we need
answered from Treasury: 1) Has there been any contact between the administration
and Enron whatacever on the issue of tax havens 2) What if any was Enron's

role in the Bush administration's position on the OfCD initiative and 3) will
Treasury investigate Enron‘s use of offshore subsidiaries. thanks for your

help. Also Tony returned my call while we were on the phone so can you pls.
forward this to him?

00800000000287


BLITZER: David?

BROOKS: I'm for a little discretion here. They're 19-year-old kids, They're
behaving the way college kids do. Their chance now is to lead a normal life sc
they can grow up normally, mature normally, And, you know, they just turn into
emotional freaks if they have to become national celebrities like the British
royal family.

BROOKS: You know, I'm generally a member of the leave-them-alone club as a
mother of two teenagers. You know, I understand that there's things you do when
you're teenagers you don't want subjected to scrutiny. But I do think when the
police are involved and it's an official police matter that the rules are
somewhat different, and it's hard to expect the news media not to cover that.

BLITZER: On that note, we will obviously continue to cover it, but it's going
te be a source of a lot of controversy.

Susan, David, Steve, thanks for joining us.

And up next, Bruce Morton's "Last Word."

(BEGIN VIDEO CLIP)

BRUCE MORTON, CNN CORRESPONDENT (voice-over); Remember when Ronald Reagan
came into office saying, "We're going to cut taxes, increase defense spending
and balance the budget"?

{END VIDEO CLIP)

BLITZER: The president's budget, can he and Congress stick to the numbers?

(COMMERCIAL BREAK)

BLITZER: Time now for Bruce Morton's “Last Word" on why, when it comea to the
federal government, sticking to a budget is easier said than done.

{BEGIN VIDEOTAPE}

MORTON (voice-over): The House and the Senate have approved President Bush's
budget for the fiscal year that starts October 1. History, though, suggests the
budget is about as real as the Tooth Fairy.

Under the budget, federal spending would incr
previous year's rate. Does that sound like Congre:

by 4 percent, half the
to you?

First, the budget assumes the projected $5.6 trillion surplus over the next
10 years will really happen, even though a number of economists think maybe it
won't.

The budget includes no money for the big new education bill -- the Hous
version of that comes to $24 billion -- and no money for whatever incre: in
defense spending Secretary Rumsfeld may ask for when he finishes his review of
U.S. defenses.

Finally, to believe in the budget, you have to believe that Congress really
will stick to that 4 percent spending increase limit, Uh-huh.

A White House spokesman says, “Our intention is to enforce the numbers in the
budget.”

Democratic Senator Kent Conrad of North Dakota says the budget is a fiction.

un

00800000000959


Davis, Michele

From: Glenn Kessler [kes: ishpost.com]
Sent: Friday. J 11, 2002 12:33 PM
To: Michisle Davestgdo ireas.gov
Subject: more enron
ght of your announcement, I guess we also would like te talk to Peter

00800000000261


Gross, Jared
December 05, 2001 9:53 AM

Davis,
RE: WSJ Interview Request

((b)(5)}

-----Original Message---<--

From: Davis, Michele

Sent: Wednesday, December 05, 2001 9:45 AM
‘To: Holahan, Betsy; Fisher, Peter

Cc: Gross, Jared

Subject: RE: WSJ Interview Request

{(b)(5)}

Original Message-----

Holahan, Betsy e

Sent: Wednesday, December 05, 2001 9:26 AM
To: Davis, Michele; Fisher, Peter

Ce: Gross, Jared

Subject: WSJ Interview Request

I asked Greg Ip for more information regarding an interview request he put in for Peter
earlier this week... [(b)(5)) Thanks.

-----Original Message-----
From: Ip, Gregory (mailto:Gregory. Ipéws}.com)
Sent: Tuesday, December 04, 2001 3:50 2M

bi]

To: hanfdo.treas.gov’
Subject Interview Request
Betsy -

We're asking the question (in the light of Enron), how much has changed with
respect to the disclosure and regulation of derivatives and other sources of
systemic risk since LTCM, why, or why not. Peter was talking to us (jon the
record) in August about this iss We'd like to follow up on that
discussion, and on things like the report of the Financial Stability Forum
on enhanced Gisclosure that he chaired, to see where he thinks we've nade
progress and where more work needs to be done. As I mentioned, we are on a
short deadline but if he can't do it by tomorrow, Thursday would probably
also work,

Thanks -

Greg Ip

Economics Reporter

The Wall Street Journal
202-862-9238 (office)

202 [(b)(6)] feet)

-----Original Message

00800000000303


Davis, Michele

From: Cuddy, Matt (NBC, CNBC) [Matthew.Cudcy@nbc. com
Sent: Fngay’ January 11, 2002 12:23 PM y
‘Michele, 2as.gov"

ENRON -- TODAY

T A NOTE ON THIS? CAN YOU SEND IT TO ME CR EXPLAIN IT IN

(AP) -- The president of Enron Corp. asked a top Treasury

eiel last year to intervene with bankers with whom the company was

for 4 credit extension to avoid bankruptcy.

y Department spokeswoman Michele Mavis provided the information to
tiday as # cascade of revelations about the bankrupt company and
gs with Bush administration officials raised questions about
conflicts of interest. The Justice Department is investigating the

Matt Cuddy
CNBC Washington
(202) 776-7405

Because e-mail can be altered electronically,
the integrity of this communication cannot be guaranteed,

00800000000260


terms of actually being able to turn a policy prescription into legislative
action. And the money's going to flow faster, I think, than anyone could have
imagined, except maybe for the president and a few of us who were determined
that we needed to get this done.

BLITZER: On these taxes, I just want to tie up two ends. Specifically, you
sound a little bit different today than you did during your confirmation
hearings on the economic stimulus benefits of these kinds of tax cuts.

I want you to listen to what you said on January 17, during those
confirmation hearings, on the stimulus impact of what was then envisaged as a
$1.6 trillion across-the-board tax cut. Listen to this.

{BEGIN VIDEO CLIP}

O'NEILL: Would I do it with an expectation that this is somehow -- provides a
boom economy? No, 1 would not do it for that reason.

(END VIDEO CLIP}
BLITZER: You still agree with that assessment?

O'NEILL: Well, Wolf, let's put this into perspective for your viewers. At
the time I was asked the question, the amount of stimulus that was going to be
provided in the year 2001 was $5 billion. Oo I think that was a huge amount of
money in the context of a $10 trillion economy? No. Do I think that $50
billion is a significant amount of money to a $10 trillion economy? Yes, I do.
So, I don't think what I’ve said is anything but consistent.

And, you know, if people expected me to say something I thought was untrue at
the time, that $5 billion dollare was a lot of money, I'm not in the business of
dissembling. I tell people the truth whether they like it or not.

BLITZER: On that issue, though, the stimulus portion thie year, most of that
coming from the tax rebate, that was really a Democratic proposal to have the
tax rebates, opposed to keeping some of that money spread out over long-term
income tax reductions.

O'NEILL: I think the thing that's really interesting about where we are is
that the president was able to organize a bipartisan majority. 25 percent of
the senators voted for this legislation. And I'd be willing to bet you
something: There will not be a single member of Congress that will send a letter
to their constituents saying, “I'm sorry you're going to get tax relief.”

This, I think, is evidence that there is bipartisan support for doing the
things the president believes are principled, that they are right thing for the
American people. And so I think this is a great victory for the American people
because principle is winning.

BLITZER: The next chairman of the Senate Budget Committee, Kent Conrad, wrote
an editorial this week, this Thursday, in one of his newspapers in Worth Dakota.
He said that the tax cut that has now been approved and sent to the president,
to his desk, is in his words, quote, “irresponsible. Uni we pay down our
debt and strengthen Social Security and Medicare now, our surpluses will turn
into deficits within the next decade," Do you accept his criticism?

O'NEILL: No, I'm sorry, I really don't. And I think soon-to-be Chairman
Conrad knows that we have dedicated every dollar of Social Security and Medicare
money to come in to pay down the public debt so that we are honoring the idea
that Social Security and Medicare money should only be used for those purposes.

And we can well afford this tax reduction and take care of Social Security

“4

00800000000942


MICHELE A. DAVIS
ASSISTANT SECRETARY (PUBLIC AFFAIRS)
TELEPHONE LOG — JANUARY, 2002

6:05 PM
Monday, January 14, 2002
[OUTSIDE SCOPE]
10:50 776-9464 Pete Yost — Please call re congressional correspondence re Enron

11:18 212-556-7192 Leslie Wayne, NYT — working on story for tomorrow re Bush
Administration officials who own Enron stock. On his financial
disclosure, Peter Fisher listed owning between $1,000-$15,000 of
Enron. Would like to get an update; does he still have it?

14:21 885-4363 David Gregory, NBC News — Please call re Enron

11:29 703-998-2104 Alan Friedman, The News Hour — would like interview w/Secy re
Enron

[OUTSIDE SCOPE]

1:58 861-4032 Jeff Birmbaum, Fortune — Please call re Enron

[OUTSIDE SCOPE]

00800000000063


fyi

-----Original Messag ire

From: Cuce Wanniski |mailto: jwanniski®polyconomics.com]
Sent: Sunday, January 13, 2002 12:35 PM

To: Tim.Adams@do.treas.gov

Cc: reavie.harvey@do,treas.gov

Subject: enron

Sensational piece in the NYT magazine.... topped off by a terrific
appearance on Sunday. Teli O'Neill my only concern is the corporate
tax-rebate element in the stimulus bill... which had megabucks for Enron.
Tf it came from the White House folks, ie Lindsey, it will be a problem, T
assume if it had passed last year, Enron could have collateralized it and
stayed alive,

Here is a note IT sent to Pat Buchanan on his Meet the Press appearance with
Nader. Please show it to the Secretary. The only point in his interview
that I questioned was the report that 724% of the people think the economy
will improve this year. Tt won't, but the American people are reflecting
what they are being told by the administration and Lindsey's “textbook”
economics, Deflation grinds away and Greenspan remains in denial,

>Date; Sun, 13 Jan 2002 12:12:96 -0500

>To: Pat Buchanan

>From: Jude wanniski <jwanniski@polyconorics. com>
pSublect: nader is right

>Dear Pat.... A gocd show with Nader on Moet the Press. But.....

>You would have gotten a lot more votes in 2000 if you had Nader’s positicn
on how to keep America a “western nation.” Change our foreign policy and
export growth instead of the IMF/World Bank poison!! “Foreigners” would
rather stay home than come hore to make a living. There is no single thing
we could Go right now to make that happen than 4 restoration of the
dollar/gold link. When the dollar was as good gold, the rest of the
world could link to it and grow around a stable unit of account. Under
Bretton Woods, there were no “IMF loans” to desperately poor third-world
metions, The IMF role was to monitor the BN syster and provide short-term
help to countries trying to avoid devaluation from the 535 central gold
link. Private banks arranged the third world loans and did a good business
waen they got paid back. After 1971, with the floating dollar, growth
stopped in the third world and the banks would up with bad loans. The Ime
was then given the job of “collecting,” which meant getting the hard money
our of the US taxpayers and “giving” it to the bankrupt country, which of
course never saw the money. It went to the banks to clear up the bad loans.
tt was ® corrupt system from the start and has become totally corrupt by
now. You xnow ail this, but you still approach the preblem with rhetoric
that you should know by now dees rot fly with the American people. Put up
big fences to keep them out. On this, Nader is sight, although I have not
heard him express himself this way in his campaigns. He hasn't taken on the
TMF, has he?

tude

“PS When are you going to start jumping cn the ssonetery deflation? A
'

0800000000182


(BEGIN VIDEO CLIP)

SEN, KENT CONRAD (D), NORTH DAKOTA: We don't have the soney for item after
item. And the reason is, when we get all of those itema together, what we'll
find is that the overall package does not add up.

(END VIDEO CLIP)
MORTON: History says, bet on Conrad-

Remember when Ronald Reagan came into office, saying how we're going to cut
taxes, increase defense spending and balance the budget? He did two out of
three, but he and the first President Bush ran up enormous deficits, most of the
national debt we have today.

Consider: Roll Call, the Capitol Hill newspaper, reports the House
Appropriations Subcommittee on Transportation -- that's roads, bridges, the gocd
stuff -- has received roughly 10 requests for special projects per congressman,
twice a3 many as last year.

Consider: A Colorado Republican denounced spending; "This place is just a nut
house when it comes to spending." But the same day he asked for $6.6 million to
buy the Beaver Brook watershed in, of course, his district. He explained that
this was an especially worthwhile project, but of course, that's what they all
gay. Nobody stands up and says, *We don't really need this, but give me the

money anyway."

Conservatives like tax cuts because they think they will hold down spending
and the size of government. Republican Orrin Hatch of Utah says, "If we don't
cut taxes, they" -- the Congress -- “will spend every dime of it.*

The trouble is, if you do cut taxes, they're likely to spend it anyway, every
dime and a little bit more.

I'm Bruce Morton.
(END VIDEOTAPE)
BLITZER: Thanks, Bruce.

Now, it's time for you to have the last word. Senator Jim Jeffords' decision
to leave the Republican Party generated the most response from you.

Pat writes th. “Blame should not be placed on President Bush or the
Republican leadership for “Turncoat Jefforda'" jump. It's time for the
Republicans to move on and forget about Jeffords. We did nothing to help the
party. He is now where he belongs.”

But Dan from Michigan says, "I applaud Senator Jeffords for the courage of
his convictions last week. I now hold out great hope that the Senate can work
to restore the true bipartisanship and the voice of the moderate, which our
nation so desperately needs."

Carlton from Oklahoma says, "Others in Congress, both Democrat and
Republican, should follow his lead and do what's right, not what's popular.*

But Sobby and Patty from Texas disagree, They say this, “When a person is
elected as a member of a particular party, they should be obligated to remain in
that party until their term expires.*

As always, It invite your commente. You can e-mall me at lateeditiongcnn.com.

Rn

00800000000960


outlined in the Mitchell Committee report are on the table to be determined and
to be discussed and to be decided how they will be implemented.

And then, at the end of the confidence-building measure, we are prepared to
help the two sides and others interested -- who have been party to negotiations
in the past -- get back together to get serious negotiations going toward final
status issues.

BLITZER: On the joint Israeli-Palestinian security talks that had been
successful over several years, many people think it was in large measure
successful because the United States played a very direct role, the CIA in
particular, including the CIA director, George Tenet.

Do you want George Tenet now to resume that active CIA participation in these
Isracli-Palestinian security talks?

POWELL: That is an option, and we do have it under consideration. George
knows a great deal about this, and so we'll consider that.

But it is not so much who does it, as to whether the sides are serious. IZ
wean, we've had security meetings for weeks now. I mean, we set in place two
levels of security dialogue between the two sides. Regrettably, until now, the
two sides have just come into the room and accused each other, and we didn't get
any action going.

And so, it is not so much who is in the room, but are the people coming into
the room serious about actually putting in place new security arrangements that
will help us separate the two forces.

To the extent that George could help with that process more so than other
people, we'll take that into consideration.

BLITZER: Are there are plans right now to send George Tenet back to the
region?

POWELL: We are always looking at what plans you might have, but I'm not
prepared right now to say George Tenet is on a plane heading back to the region
this afternoon.

BLITZER: But he might be pretty soon.

POWELL: One never knows.

BLITZER: All right, I'll take that as possibly a yes. Dennis Ross, the past
special envoy for the Miadle East, who worked the eight years of the Clinton
administration, before that he worked in the Bush administration as...

POWELL: Dennis worked for me.

BLITZER: That's right.

He thinks that it's time that the U.s., given the fragile situation right
now, the potential for major escalation, for the Sush administration right now
to rethink its attitude towards these negotiations.

Listen to what Dennis Ross told us only over the past day or so, listen to
this.

(BEGIN VIDEO CLIP)

DENNIS ROSS, FORMER SPECIAL ENVOY TO THE MIDDLE EAST: We had security
representatives there on our side. I think it would be wise for us to r.

5

00800000000933


And also, this hasn't received a lot of attention: the power of hearings, the
power to use the Senate. You take an issue like energy, and the whole
involvement of big energy companies in the Republican Party and spending money.
We saw this week Enron iph), a big energy company - half the Bush team has got
stock in this company. That's the kind of thing that Democrats in control of
the Senate can hold hearings on, make life very uncomfortable, A very important
part of this shift. BLITZER: How worried should Trent Lott be about remaining
the Republican leader in the Senate? When he became the majority leader six
years ago I think there were 55 Republicans. Wow there are 49 Republicans in
the Senate. Is there grumbling going on there?

BROOKS: There's a lot of grumbling, but no opponents. There are people who
aren't thrilled with the way he has behaved or the way he'd led the party. But
there's no one person who everyone can rally around. There's lots of talk
about Senator Nickles, and five or six other senators get mentioned, but none of
them have the votes to challenge Trent Lott. So I think Trent Lott is
reasonably secure.

And one of the interesting things about this hearings thing, you know, when
the Republicans took over and Clinton waa in office, I remember Republicans
would say, "Oh, we've got hearings power. We're going to just dominate the
agenda." It didn't work. The presidency is still the dominant player in town,
and I can't imagine the Democrats...

(CROSSTALK)

ROBERTS: But the hearings on campaign financing certainly embarrassed and
distracted the Democrats, the Thompson hearings. There are ways in which the
Republicans used that power. *

BROOKS: In a limited way.

What I would think io an interesting dynamic is how the Bush team goes to the
House and tries to use the House to get on the offensive, rather than waiting
for the Senate and the Democrats to be on the offensive.

BLITZER: But it's not as if they have a huge majority in the House either.
BROOKS: But they've got a working majority.

PAGE: Given House rules too, you know, it's easier to use one or two votes to
keep everybody in line on the House side. I wonder if that's not going to -- it
seems to me that's not exactly a strategy that's going to convince us all they
are on the offenac.

(CROSSTALK)
BROOKS: We're just going to get mishmoshed for a few years.

ROBERTS: Look, part of Lott's problem - Lott's biggest problem comes from the
right. It comes from the hardline conservatives who say he's being too moderate
when he formed this deal with Daschle to share power in the Senate. He got
tremendous heat from his own conservative wing. These are the guys that can't
count.

BROOKS: This is your fantasy about the Cossacks coming over the Caucasus and
attacking Trent Lott. He's got no problem with the right, I don't think.
BLITZER: And Susan, I want to just button this up, judicial nominees. That
obviously - and Steve suggested it - they're going to have to be careful,
sending over moderates. If there is an opening, if Judge Rehnquist, for
instance, the chief justice, if he were to retire, Antonin Scalia becoming the
next chief justice, is that out of the question now?

29

00800000000957


((b)(5)]

ATTACHMENTS: Tab A: List of Private Sector Attendees
Tab B: Administration Letter to Chairman Archer
Tab C: Background on Trade Issues
é Tab D: Talking Points

00800000001361


going te be trying to obstruct so much of the president's remaining agenda, or
are you willing to compromise with them?

REID: Wolf, I was very disappointed to see on the front page of the New York
Times today this memo that Trent has sent to his Republican colleagues. I don't
think this im the time to he passing blame and saying, "The war's going to start
now."

1 personally believe that on Wednesday we should have an open dialogue. 1f
believe that the president needs us; we need him. I think we really need to do
more than just talk about bipartisanship. We have some important iesues that we
need to complete, and we're going to do them right away.

REID: We're going to complete the education bill quickly. We're going go on
then to the patients’ bill of rights.

And I think it's time that President Bush realized that he doesn't have a
mandate. He is the president, and I support him as being the president. But I
think it's time that we really start being bipartisan. And Senator Daschle and
I are going to do everything within our power to make sure that we are
bipartisan and try to move legislation out of the Senate.

BLITZER: Senator Hatch, you agree with that assessment?

HATCH: Well, I wish more Democrats were like Harry Reid. And Harry does help
move legislation on the floor, he does bend over backwards from time to time to
make things work between the two parties. Unfortunately, a lot of the others
don't.

And I think -- I want to compliment Harry. I think Harry has really tried to
do a very good job, I know, myself -- in the majority, I've gone to Harry to
say, look, can't we get this done? And he's worked it out, in many c s. So if
we had more Harry Reids, I think we'd get a lot more done.

BLITZER: Only one Harry Reid, and only one Orrin Hatch.
(LAUGHTER)

BLITZER: I want to thank both of you for joining us. Senator Hatch, Senator
Reid, always good to have you on LATE EDITION.

REID: Orrin, Wolf, thanks.

BLITZER: Thank you.

And just ahead, some Americans will be receiving a tax rebate thie year, but
is the country headed into a recession? I'1) ask U.S. Treasury Secretary Paul
O'Neill in just a moment. Stay with us.

(COMMERCIAL BREAK)

BLITZER: For many Americans, the check will be in the mail. But as they look
forward to a tax rebate this year, what about the long- term future of the U.S.

economy? We'll ask the treasury secretary, Paul O'Neill, in just a moment.
Stay with us.

(COMMERCIAL BREAK)
(BEGIN VIDEO CLIP)

DASCHLE: These projections are no better than weather reports, and so we're
very concerned about the fragile nature of the surplus we have and the fiscal

n

00800000000940


Davis, Michele

From: Glenn Kessler [kess' IkessieroGiwoshy t.com)
Sent: Friday, Janu: 6:58 eM

To: Michele.Dav' ceca

Subject: ‘one more thing

sts this comment from Whalley to Peter re banks was made in
on is he said: would

you could get these banks to lend us some money. But I should
cur crecit is

ad then he laughed.

td peter have any sense this could have been a joke??7?

y. Commerce says Evans remembers he spoke to Oneill at the
the way in, te Enron

~ 00800000000269


opportunities for cur best scientiats to work in the field of cancer research.

BLITZER: Dr. Rosenberg, is enough money being funneled towards this problem
right now, or should the U.S, government come up with a lot more?

ROSENBERG: We have today, I believe, remarkable opportunities. The public
often hears about cures that they here in the media. But in fact the problems
of cancer are enormously complex, and one requires an enormous scientific base
of information if we're going to soive the problems.

We have available today good ideas, new technologies, but the funding of
grants to do research is quite low, and a good deal of good work is not being
funded. And so, there's no doubt in my mind that more funding will result in
more progress and bring us closer to the successful treatment of many more
patients with cancer.

BLITZER: Nancy, you've raised a lot of money for breast cancer re:
money still a problem, or there is enough money right now?

rch. Is

BRINKER: Money is always a problem, And, you know, I think that Steve makes
a great point, that even with the amounts of money we raise at the Komen
Foundation -- we've raised over $400 million since we began -- we can still only
fund the top 25 percent of grants that we receive. And the bittersweet day is
in all those grants arrive in the office, and we know that somewhere
serendipitously maybe in that stack of grants is something we desperately need
but don't have the funding to go below that level.

BLITZER: All right.

MILKEN: Wolf, I think even goes farther than that. Our best scientists are
spending sometimes SO percent to two-thirds of their time trying to raise money.

BRINKER: Right.

MILKEN: We'd sure rather have them working in the laboratories trying to find
the solution to the problems than trying to figure out how to get money.

One of the heads of one of the major cancer centers in America, a number of
years aso, less than 10, when he said he wanted to work in the field of proatate
cancer research, he was told that that was career suicide because there was no
money to work in that field. Well, I'm happy that is not the case today.

But we have to give a promise to our best and brightest that if they choose
to work in the field of cancer, and make available the technologies that are
available today to them, that there will be funds for them, for their careers,
for their families, and to conduct their research.

BLITZER: All right, Michael Milken, unfortunately we have to leave it right
there. We could go on and on but we don't have the time.

Michael Milken in Los Angeles, thank you very much.

Dr. Steve Rosenberg, always a pleasure to see you here.

Nancy Brinker, you're getting ready to be confirmed as the next U.S.
ambassador to Hungary. Good luck overseas once you get that confirmation.
Thanks.

And thanks for all your excellent good work to all of you.

BRINKER: Thank you, Wolf,

3

00800000000953


Davis, Michele

Sent! Thay lana 10, 2002 10:47 AM
it: . . i
To: Davis, Michele 2

I spoke with Meredith at CNBC. They ran that promo because of the news conference yesterday. The stimulus is still going

to be 2 major part of the interview. She also said Enron may be brought up. | stressed the Secretary is going on to discuss
the stimulus.

On another note: Do you want me to go ahead and make plans to fly to Tokyo wi/Tony?

0800000000270


Bradshaw, Tara

From: Bradshaw, Tara

Sent: Friday, September 07, 2001 4:25 PM

To: Lee, Sharon

Subject: RE: LoxisNexis(TM) Email Request (702:0:34462266)

thank you for sending this, as I have given the hard copy to legis. affairs.
thanks

lett Original Message-----

From: Lee, Sharon

Sent: Friday, September 07, 2001 4:24 PM i -
To: Bradshaw, Tara

Cc: Fratto, Tony; Lee, Sharon

Subject: FW: LexisNexis(7TM) Smail Request (702:0:34462266)

Tara, I know I already gave you a hard copy but here is an electronic version of the
transcript you requested. Thanks.

oneee Original Message-----

From: LexisNexis Print Delivery [mailto:lexisnexis@prod.lexisnexis.com]
Sent: Friday, September 07, 2001 3:53 FM

To: sharon. lee@do.treas.gov

Subject: LexisNexis(TM) Email Request (702:0:34462266)

Liowps

Print Request: Selected Document(s): 23

Time of Request: September 7, 2001 03:52 pa EST
Number of Lines: 1506

Job Number: 702:0:34462266

Client ID/Project Name:

Research Information:
<b>Power Search Results for: </b>paul w/3 o'neill and date is 6/3/2001

Note:

23 of 67 DOCUMENTS

Content and programming copyright 2001 Cable News Network

Transcribed under license by eMediaMillwWorks, Inc. (f/k/a

Federal Document Clearing House, Inc.) Formatting copyright

2001 eMediamMillWorke, Inc. (£/k/a Federal Document Clearing
House, Inc.) All rights reserved. No quotes from the

materials contained herein may be used in any media without

attribution to Cable News Network. Thie tranacript may not

be copied or resold in any media.

CNN

00800000000929


Davis, Michele

Sent 5 2002 8:23 PM

Sent: , January 14,

To: Davis, ktichete

Subject: RE: Congressional Hearings on Enron
vanes [(b)(5)]

< from my BlacaBerry reless Handheld (www.BlackBerry.net)

00800000000252


He understands how volatile this situation is. And as we have seen over the
last 24 hours, the Israeli government is very serious about getting the violence
down, and they are ponding so far in a matter befitting of the delicacy of
the situation. ‘They have not suddenly inched military attacks -- but I'm sure
they are reserving that right to themselves -- and they are taking non-military
actions at this time.

So, I spoke to Mr. Sharon in measured and responsible terms yesterday, and
I*m sure I'll speak to him again today and get hie aseesement of the situation.
This is the time for caution, because if this just turns into another cycle of
violence back and forth, we are on the edge of a very, very deep hole, and we
don't want to fall into ir.

BLITZER: Well, then why not ask the Israelis specifically, “Don't retaliate,
keep it calm"?

POWELL: I think it is better for me to make the points I want to make in a
manner befitting the delicacy of this situation.

BLITZER: Last time the Israelis did retaliate, they used U.S.- made F-16
fighters. Is that a problem, in the U.S.-Israeli relationship, when the
Tr lis use equipment they purchased from the United States for these kinds of
retaliatory strikes?

POWELL: It does create something of a difficult situation, because questions
are immediately asked whether or not these U.S. weapons are being used in
accordance with the conditions of sale and for defensive purposes. And then you
get into very interesting discuss as to whether that is the cage or not.
And so it always causes something of a problem when those kinds of weapons are
used.

BLITZER: So you haven't specifically asked the Israelis, don't use U.S.-made
equipment?

POWELL: We always examine -- a good deal of their equipment is U.S.-made. I
mean, there's always that possibility.

And I do take note of the fact that we have not seen the use of F-iés in some
time since they were used a couple of weeks ago. And I think it's better if
that remains the case in the future.

BLITZER: Your call for an immediate cessation of violence, a cease-fire is to
be followed by what you called a cooling-off period. How long should that
cooling-off period be berore there's a resumption of real negotiations?

POWELL: That has te be decided between the two parties, but it would seem to
me some matter of weeks. And you need that cooling-off period so that both
sides can see the seriousness of the other side, and that you can start to put
in place security arrangements.

I have people on the ground, The United States has people on the ground now
-- Ambassador Indyk, Ambassador Burns, Consul General Schlicker (ph), they're
all on the ground. we have other people on the ground, from different agencies,
that are prepared to convene security officials to get together and start to
structure this cooling-off period, structure the cease-fire, as soon as the
parties are ready to do so, and then start us on a road toward the confidence-
building measures.

We have people on the ground now with ideas with respect to the kinds of
timeline one should adopt, and steps along that timeline, to bring into effect
these confidence-building measures. And all confidence-building measures

4

00800000000932


position that we have today.
{END VIDEO CLIP)

BLITZER: Democratic leader Tom Daschle speaking a week ago about the
economy's uncertain future.

Welcome back.

Earlier today I spoke with the U.S, Treasury Secretary Paul O'Keill about the
tax cut and what he thinks its impact will be on the economy. (BEGIN VIDEOTAPE)

BLITZER: Mr. Secretary, thank you so much for joining us.

I want to begin right way with the issue a lot of Americans are anticipating,
those tax rebate checks, $600 for married couples, $500 for single parents and
$300 for individual taxpayers who pay $6,000 in federal -- who have income of
$6,000 in taxable income.

When specifically will those checke atart arriving?

PAUL O'NEILL, U.S. TREASURY SECRETARY: We're going to mail out a letter to
all the taxpayers -- all the federal income taxpayers on the 12th of July, and
that letter will tell people when their check is coming and how much it's going
to be for. The following week, in fact on the 20th of July, we'll send out the
first 11 million checks, and then each week after that we'll send out another 11
million checks. And we'll finish up the last mailing on the 28th day of
September.

And so, the money's going to be flowing, and we're anxious to get it cut
there to people.

BLITZER: One group here in Washington estimated that 34 million taxpayers
won't be eligible to receive any of those rebates, Is that a number that you
agree with?

O'NEILL: T guess I would say this: All people who paid a federal income tax
in the year 2000 are going to get a rebate. There are going to be some people
who didn't file by the 15th of April that are going to have a little delay in
when they actually get their money.

And for people who didn't pay any taxes in the year 2000, they will get a
refund when they file their 2003 taxes, so there will be staging in this. But
the great bulk of 100 million people are going to see a check before the first
of October,

BLITZER: Do you believe this will do the job to stimulate the economy, which
some have described as stalled these past several months?

O'NEILL: Well, I think this will be. You can't look at this first stage of
tax relief as though it stands alone, because it doesn't stand alone. Th ‘ga
phase-in of rate reductions over the next five years or 0. and so this is the
beginning of a return of people's money to them, which they can count on going
forward into the future,

and I think it is clearly true that, as a result of the rate reductions that
people are going to get and the other provisions of this tax bill, we're going
to see a relatively higher level of economic performance than we would have had
without this tax reform,

I think the president has done a fabulous job of staying focused on the
target of, let's get this done, let's get it done quickly. It's a record in

B

00800000000941


MICHELE A. DAVIS
ASSISTANT SECRETARY (PUBLIC AFFAIRS)
TELEPHONE LOG — JANUARY, 2002

6:05 PM
Wednesday, Jan
[OUTSIDE SCOPE]
119 861-4073 Mike Weisskopf, Time — Please call re Enron

ih4 703-683-9733x 135 Christine Hall, CNN.com, REF: ENRON

[OUTSIDE SCOPE}

2:19 887-8310 Bob Deans, Cox Newspapers ~ Pls call re Enron—did the
Secretary confer with Larry Lindsey last fall on his independent
report re Enron

[OUTSIDE SCOPE]

5:56 857-5133 Robert Schlesinger, Boston Globe — was the Secretary contacted
by the anyone from the Economic Team when they conducted their
survey on Enron? Please call

{OUTSIDE SCOPE]

00800000000059


Davis, Michele

From: Holahan, Betsy

Sent: Rececey December 06, 2001 5:13 PM
To: Davis, Michele

Subject: Dow Jones request

Rebecca Christie wants to talk to Sheila (she'll take deep background) about a decision made by the CFTC Board in 1993
when Sheila was a member, The decision was on tend of cart prothente wl Ermey ctenes unete tr heaar
Shate wee tie only one cnponed He enemieese an in of recent problems w/ Enron, wants to learn more
about Sheila's thoughts at the time. Any thoughts?

00800000000301


I'it find cut

ee Original Message-----

Davis, Michele

t: Monday, January 07, 2002 $:04 FR

Bradshaw, Tara: Fratto, Tony

Subject: RE: Tax havens & Enron! this will be fun

On the contact question, do Mark and his folks keep track of whether they were in to talk
about tax havens? There certainly was no contact with the Secretary on that.

{(b)(5)}

-----Original Message---<-

From: Bradshaw, Tara

Sent: Morday, January 07, 2002 3:31 PM

To: Fratto, Tony; Davis, Michele

Supfect: Tax havens & Enron! this will be fun
Importance: High

----- Original Message----~

From: HEIDI PRZYBYLA, BLCOMBERG/ WASHINGTO
(mailto: HPRZYBYLA@b] comberg.net)

Sent: Monday, January 07, 2002 3:23 PM

t Tara. Bradshaw@do,treas.gov

Subject: Re:

ney Tara. Thanks for the quick response. These are the questions we need
answered from Treasury: 1) Has there been any contact between the administration
and Enron whatsoever on the issue of tax havens 2) What if any was Enron’s
role in the Bush administration’s position on the OECD initiative and 3} Will
Treasury investigate Enron's use of offshore subsidiaries. thanks for your

help. Also Tony returned my call while we were on the phone so can you pls.
forward this to him?

00800000000288


he can?

LOU MICHEL, CO-AUTHOR, “AMERICAN TERRORIST“: Timothy McVeigh, at this point
-+ he was surprised initially that the federal government did come forward,
although he had always professed that they had withheld evidence and submitted
tainted evidence, Sut he wants to see this through to the end now. He's just as
curious as any other American on how thie is going to play our.

But ultimately I do think that he wants to die. He does not want to spend
the rest of hie life in prison. But, Wolf, if per chance that Matech granted a
stay and ultimately it went to a trial, he has confessed in our book. Sut I
think he would see a necessity defense. That's something McVeigh has always
wanted to employ, but never got the chance under his former de: council.

BLITZER: Dan, the attorney for Timothy McVeigh, Robert Nigh, emerged from the
federal prison in Terre Haute, Indiana, Thursday morning after their two-hour
meeting, and he made this statement on NcVeigh's behalf. I want you to listen
to what Reb Nigh said in Terre Haute. Listen to this.

(BEGIN VIDEO CLIP)

ROBERT NIGH, MCVEIGH DEFENSE ATTORNEY: Mr. McVeigh has asked us to say that
he understands and recognizes the impact that his decision may have upon his
family, the victims in the Oklahoma City bombing ca: the community of Terre
Haute and others. His decision in no way stems from a desire to cause these
people any additional pain or trauma.

(END VIDEO CLIP)

BLITZER: In all of the hours of interviews that you had with McVeish, he
never seemed to express any remorse, Is he expressing remorse right now to a
certain degree through his attorney?

MICHEL: Well, I don't know if remorse is the right word, but I don't think
that he wants to torture people in Oklahoma City or anywhere else any longer
with this thing.

But at the same time, he really wants to put all the mistakes of the federal
government right back in their face, and I think that's something he really
wants to do. His only true sworn enemy is the U.S. government. The other
people, as he put it in our book, were collateral damage. The one he really
wants to battle with is the U.S. government.

BLITZER: On that issue of collateral damage, Lou, in your bock American
Terrorist, you write this. Quoting Timothy McVeigh based on one of the
interviews you did with him, he says this: *I didn't define the rules of
engagement in this conflict. The rules, if not written down, are defined by the
aggressor. It was brutal, no holds barred. Women and kids were killed at Waco
and Ruby Ridge. You put back in the government's faces exactly what they're
giving our."

In effect, what he's doing is justifying what he's called collateral damage,
the 168 people, the 19 children, who were killed in that daycare center in the
Murrah Pederal Office Building in Oklahoma City. How could anyone deal with a
man like this?

MICHEL: Well, McVeigh sees himself as -- I know some, many will disagree -- a
statesman and a political activist in an extreme that most of us would never
dream of.

But he goes back to the fact that he tore a page out of foreign policy, U.S.
foreign policy, when we Fly over to Bosnia or to Iraq and drop bombs or send

16

00800000000944


MICHELE A. DAVIS
ASSISTANT SECRETARY (PUBLIC AFFAIRS)
TELEPHONE LOG — JANUARY, 2002

6:05 PM

Thursday, January 10, 2002

[OUTSIDE SCOPE}

11:08 862-6605 Jim McTague, Barrons — would like clarification on something Ari
said during his briefing re the Secretary and his involvement in
Enron

Ws15 626-2061 Timara Lipper, Newsweek — Please call re Enron

Wt:17 393-6880 David Ivanovich, Houston Chronicle, REF: "Is it true that the head
of ENRON had tipped-off Mr. O'Neill to the fact that they were
going under?”

14:25 898-8395 Jonathan — Please call re CNN report on Secy-ENRON

11:33 770-9464 Pete Yost, AP ~ Please call re ENRON

11:40 262-1750 Ron Fournier, AP, REF: Mr. O'Neill's conversation with Kenneth
Lay, Pls call

1is87 457-4461 Bill Plante, CBS News WH, REF: Enron

00800000000070


yesterday in very, very strong terms, He said things I had not heard him cay
previously. He spoke about the unconditional cessation of violence, which is
called for by the Mitchell Committee Report. He spoke to his people as well ac
speaking to the international audience.

And now we have seen him take actions with respect to his security forces
that are encouraging, and there has been no serious violence in the last 12 to
18 hours

So, it's not so much what we believe -- and the Israeli's will say this to
you very, very quickly. It's not what we believe or read, it's what we see.

And so, what Mr. Arafat has to do now, what I encouraged him very strongly to
do yesterday, was to show action on the ground that everybody can see so that we
can start to get into a cease-fire and cooling-off period again, and then move
into the confidence-building measures called for by the Mitchell Committee
Report, and at the end of a long pericd of time, hopefully not too long, get
back into final status negotiations. So what is important now is action on the
ground.

BLITZER: Well, specifically on that action, do you want him to rearrest sone
of those Palestinian prisoners who were let go, allowed to leave prison over
these past eight months of this so called intifada?

POWELL: If they are individuals who had been arrested for crimes that they
had committed and they have not been brought to the bar of justice, then I think
they ought to be rearrested. Sut I don't know who they are or what the names
are or what charges were against these individuals,

I do know that the Israeli government is anxious to see those who are
responsible for such atrocities and terrorist actions arrested. And they had
been arrested at one point, so Mr. Arafat's authorities must have thought they
had done something wrong. And unless those charges were resolved one way or
another, then it's not clear why they should have been released.

BLITZER: Do you believe that President Arafat is in control and can determine
what is going to happen in the West Sank and Gaza?

POWELL: I don't think one can say he is in control of every single
Palestinian who may wish to perform act of violence, but I think he does have a
considerable degree of control over the organizations within the Palestinian
Authority and organizations not in Palestinian Authority that are under his
direct supervision. Even more than just control, what he has is the most
powerful voice in the Palestinian world. And so, he can speak out as an
authority to his people.

With respect to his people, he is a moral authority as they gee him, And if
he speaks to them about ending the violence, about getting on to a new track
toward a cease-fire and toward peace and toward finding a way for these two
peoples to live in this one land, then I think he will be meeting the kinds of
obligations that I think he has under the Mitchell Committee report.

BLITZER: As you know, the Israeli Prime Minister Ariel Sharon has, at least
for the t 10 days, imposed a unilateral Israeli cease-fire. Are you urging
the Israeli government right now to avoid retaliation for the Friday night
suicide blast in Tel Aviv?

POWELL: I have not given that direct comment to the Israeli government. The
Israeli government and Mr. Sharon, they are well aware of the very, very
delicate, volatile nature of the situation right now after Friday night's
terrible tragedy -- those young people who just lost their lives just trying to
entertain themselves and find a little bit of fun on a Friday night.

3

00800000000931


I want to get right to power shift and all of that, but I want to begin
quickly, Senator Hatch, are you satinfied with the way the Bush administration
has been trying conduct ita policy between the Iaraelia and as the Palestinians?

SEN. ORRIN HATCH (R}, UTAH: I think General Fowell, Secretary of State Powell
summed it up pretty well. I think they're doing their very best. It's a
serious set of problems that's gone on for centurles, as you know. And I believe
that he knows that there is a point where they have to get involved, but both
sides have to be at that point.

My heart goes out to these families that lost their kids over the weekend.
and there is no question Arafat, in making that statement, made a good
statement, but now it's time to show that he means something.

He let all of those terrorists go last fail. I think he has to arrest those
responsible, and he's got to put them in jail.

BLITZER: Senator Reid, is it time for the U.S. to step up its involvement in
the effort to the resume peace negotiations?

SEN, HARRY REID (D), NEVADA: Wolf, one thing I've learned is that we have 535
secretaries of state. Every member of Congress thinks they could do a better
job than whoever is secretary of state.

I have the philosophy that we kind of to leave this in the hands of those
that are doing the foreign policy. Secretary Powell is in on a jot of
confidential information that I'm not party to. I have confidence in him. I
think he should be a good secretary of state. I hope the president gives him
full leeway te do what Secretary Powell thinks is the best thing.

So I'm satisfied at this stage. I know that we need more attention there,
but I'm going to leave that attention to Secretary Powell.

BLITZER: All right. Let's talk about politics, here in the United States,
specifically in the Senate.

As both of you know, the Republican senator from Arizona, John McCain, has
been hosting a very important visitor at his ranch in Arizona over the weekend,
the new Senate Democratic majority leader Tom Daschle.

He issued a statement, yesterday, McCain. I want to read a little excerpt
from it. Among other things, he said this: "I have not instructed nor
encouraged any of my advisers to begin planning for a presidential run in 2004.
I have not discussed runuing for president with anyone. As I have said, I have
no intention running for president, nor do I have any intention of, or cause to,
leave the Republican Party. 1 hope this will put an end to further speculation
on the subject."

Senator Reid, does that put an end to the possibility that Senator McCain
could bolt and follow in Senator Jeffords’ footsteps and become an independent?

REID: I came to Washington in 1982 with John McCain. We served in the House
together, We went to Senate together. So I know John very well. And I know
one thing about John McCain; As popular he is in Arizona and all over this
country, no one should predict what he is going to do. John McCain does what he
feelo appropriate. He ia an individual who has very strong views.

Se I'm going to leave all of the predicting up to John McCain. We'll see what
happens to John McCain, but no one -- no one -- should predict what he is going
to do on any given day.

00800000000937


MICHELE A. DAVIS
ASSISTANT SECRETARY (PUBLIC AFFAIRS)
TELEPHONE LOG - JANUARY, 2002

6:05 PM
[OUTSIDE SCOPE]
Thursday, January 10, 2002 — p.3
2.00 393-6880 David Ivanovich, Houston Chronicle — Please call re Enron
2:10 887-8324 Jena Heath, Austin-American Statesman (Cox Newspapers) ~

Please call re Enron
2:22 393-6880 David Ivanovich, Houston Chronicle — Please call re Enron
2:25 222-7715 Katie Texture, World News Tonight — Please call; has some
: follow-up questions re Enron

2:26 776-9488 Marty Crutsinger — Please call Enron
2:32 347-3237 Corbett Daly, AFX — Please call re Enron
2:36 776-9464 Pete Yost — Please call
2:43 776-9464 Pete Yost = Please call
2:50 334-7570 Dana Milbank, WP — Please call re Enron
3:20 334-7215 Mike Allen, WP — Please call re Enron
Pe 776-9464 Pete Yost = Please call
[OUTSIDE SCOPE]
3:45 334-6242 Pete Behr, WP — Please call re Enron
4:06 383-2251 Kathy Landry, Platts NewsService — Would like to confirmed dates

of Lay’s conversation w/the Secretary — Oct 28 and Nov 8; if you
get her VM, pls leave dates -ON DEADLINE

{OUTSIDE SCOPE]

00800000000072


MICHELE A. DAVIS
ASSISTANT SECRETARY (PUBLIC AFFAIRS)
TELEPHONE LOG — JANUARY, 2002
6:05 PM

Thursday, January 17, 2002
[OUTSIDE SCOPE]

12:29 703-683-9733 Christine Hall, cnsnews.com — would like to know what the
Department's policy is on issues such as Enron

[OUTSIDE SCOPE]
4:57 334-7570 Dana Milbank, WP — pls call; have Fisher and Weinberger sold
their Enron stock?
[OUTSIDE SCOPE]

00800000000058


Davis, Michele

From: Nichols, Robert

Sent: Friday, January 11, 2002 6:52 PM
To: Davis, Michele

Rob Nichols

Deputy Assistant Secretary for Public Affairs
tment of the Treasury
(202) 622-2910

{(b)(5) , (b)(6)]

00800000000268


BLITZER: And just ahead, did President Bush score any points cn energy and
the environment with his visit to California? We'll go ‘round the table on that
and much more with Roberts, Page and Brooks.

LATE EDITION will be right back.
(COMMERCIAL BREAK)

BLITZER: Time now for our LATE EDITION roundtable. Joining me, Susan Page,
Washington bureau chief for USA Today; Steve Roberts, contributing editor for
U.S. News and World Report; and David Brooks, senior writer for the weekly
Standard.

Thanks for joining us.

Steve, the McCain-Daschle get together this weekend in Arizona, what's your
take?

STEVE ROBERTS, CNN COMMENTATOR: Well, I think clearly John McCain loves all
the attention we're giving him. He's gone around saying, "No, no, no, I'm
really not leaving the Republican Party," and I don't think he is contemplating
leaving the Republican party.

But I do you think he is intending to work more closely with Democrats on
certain specific issues. Already done this on campaign financing, HMO reform,
certain gun control matters.

You know, and Trent Lott says, "We're going to war, and we're going to" --
it's like he's not listening. He tried to bully Jim Jeffords. Look where it
got him. He's trying to bully John McCain, and I don't think it's going to
work.

I think McCain'a got a lot of leverage, he's going to work with Democrats. I
think he's going to stay in the Republican Party, but he's going to be a pain in
the neck for Trent Lote and for George Bush. BLITZER: You know, we heard Senator
Hatch, David, say that, yes, McCain agrees with the Democrats on a whole host of
issues, but on many, many more he agrees with the Republicans. Is that
accurate?

DAVID BROOKS, CNN COMMENTATOR: That is true.
BLITZER: He does?
BROOKS: Yes. I mean, he's conservative on abortion. He's conservative on

budget ise , way more conservative than George Bush. He's conservative on
defense, way more conservative than Bush, wants to spends a lot more money.

There are two issues here. There's the one that is the McCain issue, and
then there's the third-party issue. McCain, I know for a fact, was upset
yesterday when The Washington Post headlined a story that he was considering
leaving the party. He generally dees not want to leave the party. He doesn't
think he's going to rum for president. lie thinks he’s going to be too old in
three years. He thinks Bush is going to be running again.

But then there's the third-party issue. The Republican Party has moved a
little to the right, The Democratic Party, I think, has moved way to the left.
There is room there for a third party. I don't think McCain will leave it. But
T think it's possible that we could see something over the next couple of years
if the Bush presidency goes down the tubes.

BLITZER: Should the Republicans be at all nervous about the possibility that
John McCain could follow in Jim Jeffords’ footsteps and, at a minimum, become an

26

00800000000954


te bother you.
But af there is any progress on timing, or anything further that we can do, I'd be

glac to hear from you.
Thanks, Slean

Wisit our Internet site at http://www. reute:

ge are those of the individual
© specifically states them to be

Any views expressed in this me:
sender, except where the seni
the views of Reuters Led.

— - a

00000187


MICHELE A. DAVIS
ASSISTANT SECRETARY (PUBLIC AFFAIRS)
TELEPHONE LOG-— JANUARY, 2002

6:05 PM
Friday, Ja f =
[OUTSIDE SCOPE]
438 861-9220 Eddie Sanders, LA Times — Please call re Enron
5:02 334-6157 Sue Schmidt, WP, REF: ENRON
[OUTSIDE SCOPE]

00800000000057


Sampliner, Gary

From: Sampliner, Gary

Sent: Thursday, July 19, 2001 1:37 PM
To: Rao, Geetha

Subject: RE: Reschedule of Enron's meeting

The Monday time looks a little better for me at the moment,

% Cet Me
From:
Sent: woorester. July 16, 2008 4:55 PM
To: Resrick, Bonnie; Chnstepuics, Greg; Sameliner, Gary
Cc Grewe, Maureen; Mils, Marshal: McDonald, Larry

Subject: Reschacuie of Enron's meeting

Can we aim to reschedule the Enron meeting either next monday at 10:30 am or Tuesday at 11:00 am? Please
indicate preference, Thanks.

Sent: Mondiny, July 16, 200 4:27 PM
x erate Son, eee males Ses es SY

Saat Enron Meeiing ig tas Wednesday
Importance: high

John Hardy, Enron (OC office), requested @ meeting with Treasury to bring us up-to-date on the Enron's project in
India

This meeting will take place on Wednesday July 18 at 3 pm in Room 3430 MT

Please let me know if you plan to attend.

Thanks, geetha

Tracking: Recipient Read

Rao, Geena Read: O7/19/2001 1-39 PM

1000000001084


From: Betsy.Holahan@do.treas,gov [mailto: Betsy. Holahanédo,treas.gov)
Sent: Tuesday, December 04, 2001 11:56 AM

To: Ip, Gregory
Subject: Interview Request

Greq,

Can you e-mail me more specifica about the derivatives story you are working
on? What types of things you would like to discuss with Peter, etc. Thanks!

Betsy

0800000000304


Davis, Michele

From:
Sent:
To:

ep your

Hitt, Greg (Greg. Hinges) eo

08 PM

Friday, January 11
‘michele davis@do.treas.gov’
you'll get thz
call, i need to

+ mot about

treasury,

00800000000263


Davis, Michele

a NE
From: Quinn, Katie

Sent: Tuesday, January 08, 2002 3:34 PM
To: Davis, Michele; Nichols, Robert
Subject: RE: enron

thanks, I'l! talk to domestic finance and see whal they have to say.

~—Onginal Message-——~

From: Daves, Michele

Sent: Tuesday, January O8, 2002 3:33 PM
Tor Quinn, Katie; Nichols, Robert
Subject: RE: enron

I've responded to his comments by saying that he was talking about the Administration examining whether or not
Enron followed the rules -- that's not a Treasury jurisdiction, | think it's SEC, but clearly someone in Domestic Finance
should know the answer to that

Orginal Message -

From: Quinn, Kate

Sent: Tuesday, January 08, 2002 2:54 PM
To: Nichots, Robert; Oavis, Michele

Subject: enron

Michele and Rob,

Do you happen to know what entity within Treasury would be responsible for exam! Enron. | know the
Socteuury ‘race sorte coenriard 2 tye rane Sacnl aerate of hte requasbors owed Wiel ooe:

The question has come up because | received a call from PSI, the Permanent Subcommittee on igations.
They have launched a major congressional nivestigations io Ue matier and are interested ky Troasunyte role

Any direction you can provide would be appreciated.

Kate Quinn
Deputy Assiotent Secretary

(Enforcement

Office of Legistative Affairs
Department of the Treasury
(202) 622-0725

00800000000286


page 2

{(b)(5)]

00800000001370


Davis, Michele

From: John. Fund@dowjones.com

Sent: Sunday, Ji 13, 2002 1:03 PM
To: Michele Davis@co.treas.gov
‘Subject: RE: great seeing you last night

Michele, I really enjoyed our talk.

1 see you are all over the papers new, and your boss was on Fox News Sunday
again. We'll get together again to hatch Enron strategy. I think this is all
about getting the discharge petition on campaign finance its final three
signatures, I said that on McLaughlin Group this weekend <= Larry O'Connel
pooh poched Enron scandal -- a bit of @ surprise.

Ther after campaign finance the Dems will use it for ankle - biting. I'm
back in town on Thursday and Friday. If you want te go toe the Media Research
Center Dishonor dinner on Thursday (I'm speaking), let me know, Otherwise,
perhaps a drink on Friday. I'm in California but checking e-mail.

-----Original Message ——
From: Michele.Davis8do.treas.gov
To: Fund, John

Sent: 1/10/02 9:12 AM

Subject: great seeing you last night

As always, you prod my thinking, which I need to keep me from getting
buried
in the daily detritus the bureaucracy manufactures around here!

{(b)(6)]

but it was great to get out and have
some fun instead of staying in the office til 9 a ight! thanks for
agging me away from my desk, and enjoy your first day of “freedom”!

00800000000256


{(b)(5))

mh
1730, May 5, 1999

00800000001371


MICHELE A. DAVIS

ASSISTANT SECRETARY (PUBLIC AFFAIRS)

TELEPHONE LOG — JANUARY, 2002

6:05 PM

Friday, January 11,2002, pe 4

[OUTSIDE SCOPE]

2:38 334-6157 Sue Schmidt, WP, REF: ENRON

2:39 ROB NEEDS TO TALK TO YOU ABOUT A PRESS CALL
CONCERNING MR. DAM, PETER FISHER, & ENRON

2:39 824-6491 Kelly, Fox News, called again, REF; she would like to have an
interview you on ENRON, pls call her or Maggie at 824-6369

2:40 862-9238 Greg Ip, WSJ, REF: ENRON

3:15 861-9220 Eddie Saunder, LA Times, REF: ENRON & Fisher

3:15 887-8310 Bob Dean, WH Correspondent COX News, REF: ENRON &
Fisher

[OUTSIDE SCOPE}

3:35 334-6157 Sue Schmidt, Wp called again, REF; ENRON

[OUTSIDE SCOPE]

4:17 383-2210 Mike McNamee, Busn Wk, REF: ENRON & the IRS

[OUTSIDE SCOPE]

00800000000068


REID: Well, I hope what it would fuel is that the Republicans now would do
the right thing. Let's get the bill on this campaign finance over to the House.
You know, it's been held up for months. I think we need to get that done in the
House. We need to have a conference done there. I think we need to have now,
which we are going to have with Daschle as the leader, we're going to have a
full public debate for the first time on the patients’ bill of rights. I think
that‘s more what John McCain is talking about.

Let's open up the process. Let's have an open dialogue on some of these
issues that are so important to the American people. And I think if that'a
allowed to take place, John McCain will be just fine.

I think what he is tired of is the backroom sniping at him for his being an
individual. John McCain is who he is, and Tom Daschle or Harry Reid or Orrin
Hatch are not going to change that. Sut I think he needs to understand that
there's not going to be a lot of back- stopping and trying to do things to
prevent him from having his voice heard. I think that's what John McCain wants.

BLITZER: John McCain has been severely criticized, Senator Hatch, by a lot of
Republicans behind the scenes, and presumably that effects his kind of thinking.
wouldn't you think?

HATCH: Well, you can only take eo much from people, and frankly I think there
has been some unfair criticism of Jokn.

You know, John's controversial. He does do some things that Republicans
disagree with. Campaign finance reform is one I disagree violently with him on,
but that doesn't stop us from being friends. The fact is, ft think the bill's ao
unconstitutional that it’s not justifiably passed, and I think in the end that
will be proven to be true. But I'm glad he's got Tom Daschle out there. It'll
be good for Tom to be out there in the intermountain Wi and understand some of
our needs. I think maybe we'll get more out of Tom because of John's good work
here this weekend.

BLITZER: As Senator McCain joked, he said maybe he can convince Senator
Daschle to leave the Democratic Party.

(LAUGHTER)

HATCH: Well, yes. See, it's about time -- I think Harry -- I think it's more
likely we'll get Harry.

But I'll tell you, Marry, I'm going to work on you Harry.

BLITZER: You know, Senator Hatch, Trent Lott the Republican leader in the
Senate issued sort of a parting shot at Senator Jeffords. He wrote this ina
letter that he's sending out to a lot of Republicans. He said this: "This coup
of one puts at peril the agenda that Republicans were given a mandate by the
American people to deliver.*

Ie it appropriate for Trent Lott to be speaking about Senator Jeffords
engaged in a coup of one?

HATCH: Well, you know, he may have used different words, but frankly what
he's doing is rallying the Republican, saying, “Lock, we're in the minority
now. We have a different set of responsibilities. We've got to live up to
them, and we've got to try and get this agenda of lower taxes, stronger defense,
better education, et cetera, passed. And so, we're going to have to really get
tough and do what's right."

BLITZER: Senator Reid, with you in the majority, starting Wednesday morning,
the business day in Washington, what's going to be the major change? Are you

u

00800000000939


independent?

SUSAN PAGE, CNN COMMENTATOR: Well, one thing to remember is that it wouldn't
have the kind of cataclysmic effect that Jeffords did, because the Senate's
already been tipped to Democratic control.

But, yes, I think it would be of concern for the Republican Party if they
can't seem to hold a more moderate wing of the party. I mean, they don't
necessarily need liberal Republicans, but they need people other than
conservatives.

I thought one ef the interesting things is that, not only is Tom Daschle at
the MeCain ranch this weekend, but so is Bruce Reed, who was a domestic policy
adviser to Bill Clinton for eight years and is now head of the Democratic
Leadership Council, which tries to occupy that kind of center ground. And I
wonder, why is Bruce Reed there?

(CROSSTALK)

ROBERTS: You know, during...

BLITZER: Do you think you can angwer that question?

ROBERTS: To some extent, because I think that McCain does have an interest,
as I say, in certain issues. Bruce Reed is interested in -- a domestic policy

adviser to Clinton ry interested in HMO reform, a very good example of an
i @ where McCain is probably more closely allied with the Democrats.

But, you know, one of the things that struck me during the campaign was,
George Bush knew how to count. You know, he had his conservative base, but he
knew he had to run through the middle, he knew he needed moderate votes in order
to win the electicn.

But it's suddenly as if he can't count anymore, You know, you've got all of
these Republicans saying, "Well, we got to stick to our conservative
principles." Fine, that's 35, 40 percent of the country, and it's not a majority
in the U.S, Senate.

And if you continue to play to your base and not court the moderates, whether
it's on certain issues, whether it's McCain or Jeffords or Susan Collins of
Maine or Olympia Snowe of Maine, you're going to lose. And suddenly he's lost
his ability to calculate.

BROOKS: Yes, but here's where the Jeffords thing really transforms that, Now
Bush really can't be very conservative for the next couple of years. I think
what we are going to have in the next couple of years is sort of nothing
politics, a lot of bills like the tax bill which are such a mishmosh of things
-- they have no ideological coherence -- or like the education bill. And we're
just going to have a little of this, a little of that, and there will be no big
issues for either party to hit the other upon.

PAGE: Of course, that is exactly what happened to Bill Clinton after the 1994
midterms, and it probably got him reelected in 1996. So, while to conservatives
that may sound like the worst of all worlds, to a president who wants to get
reelected, maybe that's not all bad news.

ROBERTS: One person's ideological mishmash is another person's reasonable
centrist compromise, which is where the balance of power in this country is.

And conservatives and liberals both have to accept that, that that's where the
balance is.

BLITZER: And getting back to what Susan said about Bruce Reed, who was the

7

00800000000955


Fisher, Peter
Wednesday, December 05, 2001 10:34 AM
Davis, Michele; Holahan, Betsy

did i send or delete a message already?

{(b)(5)}

ono Original Message-----

From: Davis, Michele

Sent: Wecnesday, December 05, 2091 9:45 AM
To: Holahan, Betsy; Fisher, Peter

Cc: Gross, Jared

Subject: RE: WSJ Interview Request

{(b)(5))

-----Oricinal Message--
From: Holahan, Betsy
Sent: Wednesday, December 05, 2001 9:26 AM
To: Davis, Michele; Fisher, Peter

Cc: Gross, Jared

Subject: WSJ Interview Request

I asked Greg Ip for more information regarding an interview request he put in for Peter
earlier this week... [(b)(5)] Thanks.

-----Original Message-----

Fr Ip, Gregory [mailto:Gregory. Ip@ws}.com]
Se Tuesday, December 94, 2001 3:50 PM

To: "Betsy.Holahan@do.treas.gov' 7
Subject: RE: Interview Request

Betsy -

We're asking the question (in the light of Enron}, how much has changed with
respect to the disclosure and regulation of cerivatives and other sources of
aystemic risk since LTCM, why, or why not. Peter was talking to us (on the
record) in August about this issue. We'd like to follow up on that
discussion, and on things Like the report of the Financial Stability Forum
om enhanced disclosure that he chaired, to see where he thinks we've made
progress and where more work needs to be done. As I mentioned, we are on a
short deadline but if he can't do it by tomorrow, Thursday would probably
also work,

Thanks -

Greg Ip

Economics Reporter

The Wall Street Journal
202-862-9238 (office)

202 {(b)(6)] (cell)

00800000000305


Davis, Michele

From: Fratto, Tony

Sent: Wednesday, Novernber 28, 2001 3:38 PM
To: Nichols, Robert; Holahan, Betsy

Ce: Davis, Michele

Subject: ENRON questions

Importance: High

it Seka. RRC PANG Erinn WAR) Bthd FOPRTT EO ERIN 10, SERSETY SN SARS Sat Tretbery eSNG Re
situ: -

Michele has Cleared a quote to use in response to reporter inquiries:
“We are monitoring the credit markets, as we do every day.”
In response to follow-up questions about evidence of risk in the markets or unusual activity:
“The markets always fluctuate. We haven't seen anything extraordinary.”
Further questions about energy and Enron should be referred to FERC or CFTC.

00800000000320


MICHELE A. DAVIS

ASSISTANT SECRETARY (PUBLIC AFFAIRS)

TELEPHONE LOG — JANUARY, 2002

6:05 PM

Thursday, January 10, 2002 —p.2

11:56 824-0566

12:01 222-7276
12:08 624-1834
[OUTSIDE SCOPE]

b42 682-9029

12:44 222-7715

[OUTSIDE SCOPE]

1:28 898-7666

1:29 661-8425

131 347-3237
1:35 2-1100
1:42 776-7405

[OUTSIDE SCOPE]

Rex Nutting, CBS Market Watch — Please call re Secy’s
conversation with Kenneth Lay re his financial concems
w/ENRON

Ariane, ABC — Please call] re ENRON

Simon, Bloomberg, REF: ENRON

Quinn O'Toole, Nightly Business NEWS on PBS, REF: Mr.
O'Neill's convesation w/Ken Lay

Katie Texture w/Terry Moran, World News Tonight — Please call
re dates Secretary spoke with Ken Lay

John King, CNN — Looking for Oct date of conversation between
Secretary and Lay

David Jackson, DMN — Please call re date of PON-Lay
conversation

Corbett Daly, AFX — Please call re Enron
Cheryl — Please call re Enron

Matt Cuddy, CNBC = Following up on email he sent you re Enron

00800000000071