Subject: Possible Statements on Stimulus and Autos
From: Daniel Tarullo <[email-masked]>
To: [email-masked]
Date: Sun, 9 Nov 2008 09:49:51 -0800 (PST)

We would like to be ready with statements on stimulus and immediate assistance to the auto companies for possible use in response to a repitition by the Administration of its rejection of either or both, perhaps following the President-elect's meeting tomorrow or perhaps on some other occasion.  Attached are draft statements on both topics.  I have also reproduced below what Rahm said on the Sunday news shows this morning.  John addressed the issue in roughly similar terms, but I haven't yet received a transcript of his appearance.
 
There are obviously a number of substantive policy and positioning issues raised by the autos statement in particular.  One to which t I would specifically draw to your attention is whether the last sentence of the first paragraph is the appropriate formulation of a simultaneous push on the Administration and indication of what we would do in the short term.  As you will note, the statement separates short-term, almost bridge-like assistance from a more comprehensive plan.
 
It would be helpful if you could get me any comments this afternoon.   I will be tied up until about 2 but available thereafter.  In addition to, or in lieu of, suggested textual edits by email, you can call me at home (301-654-0641) or on my cell (301-257-6539).  Thanks. 

STEPHANOPOLOUS: Let ' s get to some of them. Just last night speaker of the house Nancy Pelosi and democratic leader in the Senate Harry Reid sent a letter to the administration urging the treasury secretary to tap that $700 billion rescue fund in order to help the auto industry. The white house has already signaled they ' re opposed. Is president-elect Obama for using that fund to help the auto industry? 

RAHM: George, as president-elect Obama has said throughout the campaign and as I think as recently as Friday, first the auto industry is an essential part of our economy and an essential part of our industrial base. Second, they should look at accelerating the 25 billion offered for retooling for the industry going forward. Third, there are other authorities within the administration that they should use at this immediate time and, fourth, president-elect Obama has asked his economic team to look at different options to help bridge the auto industry so they are a part of not only a revived economy but part of an energy policy going forward where America is less dependent on foreign oil. Those are the parts that is necessary for -- both the auto industry and the economy. 

STEPHANOPOLOUS: It does have the authority to tap that rescue fund. Do you think they should? 
 
RAHM: Well, he has been very clear that they ' re part of any sustained economic activity in this country. They ' re an industrial base and employ 3 million Americans and it ' s very important that anything that ' s been done, a, you got to tap the 25 billion that ' s been offered. B, there ' s all this other authorities within the administration and within the government that they should do to help the industry and, fourth, he has asked his own economic team to come up with proposals at this point that would help the industry bridge towards a point in the future where they have a restructured, retooled auto industry that is part of not only our -- essential part of our economy, essential part of our energy policy which is less dependent on foreign oil and that is the most important thing to be done and i think that the administration needs to and congress work with the industry at this time to deal with the problems, but, remember, it ' s all towards an
 eye of a very important part as he has said throughout the campaign, an important part of your economy, that is the auto industry. 

STEPHANOPOLOUS: No reason to think he ' s opposed to what Speaker Pelosi and Senator Reid want? 

RAHM: I just outlined the four basis points, authorities both there on the $25 billion that ' s been laid out as well as other authorities to help the auto industry but all part of a strategy that ' s going forward on a retooled auto industry that is focused on our energy independence and economy.