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                  Office of the Press Secretary
                      (Seattle, Washington)
For Immediate Release                            October 23, 1994

                     REMARKS BY THE PRESIDENT
                           TO THE POOL
                          Seattle Center
                       Seattle, Washington

3:13 P.M. PDT

THE PRESIDENT: I'd like to make a very brief statement about the Alice Rivlin memo on the options for deficit reduction.

First of all, my position is what it was in the campaign of '92 and what it has been through the first two budget years. I do not support cuts in Social Security, and I believe any savings we achieve in the Medicare program should be used in health care. That has always been my position.

The memo was a list of options that grew out of a consideration of what might be the recommendations of the Kerrey Commission, what might come out of the budgeting process next year, and the kinds of problems that might be created if the Republican contract that the Republican House Leader and the Senate Leader and others have embraced.

We have serious problems with the deficit, still, in the future because of the escalating costs of health care. And if they were to have a huge tax cut for the wealthy, increased defense, increased Star Wars, we would be looking at an explosion in the deficit that could only be dealt with with massive cuts in other programs, all other programs.

But there is nothing in that memo and nothing in the record which should indicate that I have changed my position on these two fundamental issues.

Thank you.

END3:15 P.M. PDT