    RECORD TYPE: PRESIDENTIAL  (TRP NOTES MAIL)

    CREATOR: Ron Klain ( CN=Ron Klain/O=OVP [ OVP ] )

    CREATION DATE/TIME: 7-MAR-1996 08:51:32.00

    SUBJECT:  Updates

    TO: Albert Gore ( CN=Albert Gore/O=OVP [ OVP ] )
    READ:UNKNOWN

    Heather M. Marabeti ( CN=Heather M. Marabeti/O=OVP [ OVP ] )
    READ:UNKNOWN

    TEXT:
    A few items (beyond the separate notes I sent you about 8 million jobs and

    the impromptu economic meeting):

    1.  CR/Debt Limit.  Republicans in both chambers are heading toward a

    clean extension of the debt limit to 3/29 -- they clearly want more time

    to consider their strategic options, and to allow Dole to reassess where

    he wants this conflict to go.  They continue to work on their combined

    "welfare-medicaid" package.

    On a CR, both Chambers are moving funding bills unacceptable to us:  the

    Senate Bill contains some of our add-backs, and more add-backs still

    funded contingently on a future deficit package -- but many bad language

    provisions, including Tongass.  The House Bill does not even contain our

    add-backs.   To me, it looks as if we are headed to a veto, a short-term

    status quo CR to 3/29 -- and then a big conflict on debt and CR at month's

    end.

    (Finally, keep in mind that if this all blows up on 3/15, you are

    currently scheduled to be with your family for that Fri-Sat-Sun.)

    2.  Reg Ref:  The Bond bill (small business reg ref) is moving in the

    Senate; I have asked Katie to give you an analysis.  She is meeting again

    today with the Levin staff -- Levin has not decided if he will (or will

    not) move his bill as an amendment to Bond.  This could unfold as early as

    Monday or Tuesday.

    3.  Product Liability:  The President appears leaning toward a veto, even

    as the Conferees appear headed toward meeting all of our stated concerns.

    Rockefeller feels badly betrayed by the President.  Deja vu all over

    again.

    4.  Mexico:  This is really heating up -- with Dole's posture on

    decertification not yet clear.  If it becomes a big Hill fight, you will

    doubtlessly get sucked in.

    Finally, I have  a few updates for your lunch memo, which will be over in

    the WW office shortly.