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CALIFORNIA LOSES CLOUT IN WHITE HOUSE


January 13, 1985
Section: METRO
Page: A01


By    Jeff Raimundo Bee Washington Bureau

 

--WASHINGTON - Never again will California's wine industry find Interior Secretary William Clark around to walk into the Oval Office with their appeal for improved foreign trade status. No longer will Sunkist Growers, the huge San Joaquin Valley farmers cooperative, be able to march Agriculture Secretary John Block into White House Counselor Edwin Meese's office to win a fight over legalized price fixing that protects some farmers, as they did in 1984.

California's unique relationship with President Reagan's White House appears to be over.

The sudden exodus of Reagan's California clique of top advisers leaves the state bereft of the special influence it has had in the inner councils of the West Wing.

The loss comes at a crucial moment, just as the administration is launching a new budget-cutting crusade that could cost the state and its citizens billions of dollars in federal revenues.

That's the assessment of several key Californians in Washington who have watched the virtual dismantlement this week of the California-based team that helped Reagan administer his first term.

'The Californians in the White House, particularly Meese and Clark, were the appeal body of last resort for this state,' said Rep. Vic Fazio, D-West Sacramento.

A member of the House Appropriations Committee who focuses on agricultural and water issues important to the state, Fazio said the old guard provided 'a kind of subtle interplay of forces that won't be there anymore.

'There's not going to be that California contact who can get you that last hearing with a Cabinet official or perhaps even in the Oval Office,' he said.

Rep. Jerry Lewis, R-San Bernardino, another member of the House Appropriations Committee, conceded that the loss will leave people in power 'who have no idea what 20,000 square miles of California desert is like.'

But in the end, the real power resides in the man in the Oval Office, he said.

'Ronald Reagan is the president, and he is from California,' Lewis said.

Reagan's chief image maker and closest personal adviser, Michael Deaver, announced his departure from the White House last week. Only a few days earlier, Clark notified the president he is returning to his California ranch.

Meese is expected to move soon from Reagan's elbow to the Justice Department to succeed Attorney General William French Smith, who is moving back to California.

All four officials served Reagan during his years in the governor's office in Sacramento and have been among his closest advisers in Washington, enjoying a personal relationship with Reagan unparalleled by most of his other top aides.

On international wine trade, offshore mineral development, water management, key agricultural issues, immigration reform and taxation of multinational corporations, for example, those players in the White House protected California interests, said a number of top lobbyists and public officials.

Some observers, Republicans most notably, tended to minimize the impact of their departure.

'It's true to a degree,' said GOP Sen. Pete Wilson. 'But I think it's easy to exaggerate. There will continue to be a very distinct California presence in the Cabinet' - Meese, Defense Secretary Caspar Weinberger and newly appointed Energy Secretary John Herrington.

Wilson said he sees the shake-up as 'a mixed blessing.' He said it will increase pressure on him from those who need a contact with the White House, but it also will 'give me an even stronger role in the process.'

Added Gov. Deukmejian's chief lobbyist in Washington, Karen Spencer: 'Sure, it's helpful to have Californians there because you don't have to explain things. When you talked about the breeze over the mountains, Bill Clark had felt the breeze.

'However, we have always tried to work through the departments and agencies and we will continue to do so.'

Nevertheless, the direct White House links, the Californians virtually at Reagan's elbow, have been lost, said Rep. Tony Coelho, D-Merced.

'It's not going to be the same, there's just no way around it,' he said.

Rep. Leon Panetta, D-Carmel Valley, pointed to the almost unprecedented role played by the inner-circle staff in the Reagan White House, 'an influence greater than with almost any president we've ever had. That tends to magnify the impact the staff had on California.

'I don't see in this new staff people with that same sense of attachment to the issues that are important in the West. They're basically Easterners.

Representatives of private interests in Washington share the belief that California will miss the White House contacts.

'I don't know what we're going to do yet,' said one who asked not to be named. 'We have no idea how sympathetic these new guys are going to be.'

Art Silverman, chief lobbyist for the Wine Institute, credited Clark's intervention last year with helping convert the White House to support the Wine Equity Act, which for the first time gave full recognition to wine as an instrument of international trade.

'Certainly, the California people in the White House who understood the merits of our arguments were very helpful to us,' he said.

At the beginning of Reagan's term, former Interior Secretary James Watt waged a relentless battle to develop offshore oil and gas reserves, a policy that sparked strong opposition in California. When Clark took over for Watt, the Interior Department's public posture on the issue softened dramatically.

Sen. Alan Simpson, R-Wyo., complained last year that it was the Californians in the White House who helped torpedo his landmark immigration reform plan. When the state's growers objected to provisions that would have penalized farmers for using illegal aliens in their fields, Reagan's support for the bill virtually evaporated.

Some critics complain that Reagan listened to California only when it benefited his political allies, such as farmers.

'On most issues crucial to the state, the White House was on the wrong side, even given who was there from California,' insisted one key Democratic staff member.

When it came to agricultural interests or other Republican-leaning groups or friendly special interests, the White House team helped out occasionally, agreed Rep. Robert Matsui, D-Sacramento.

'But with broader issues involving all state taxpayers, particularly in health and welfare areas, they could care less,' he said.

He pointed to a fight last year over federal payments for social services to Indochinese and Central American refugees who have concentrated in California. The administration was unsympathetic to pleas for relief for the state, he said, and the problem was corrected only through congressional action.

In 1981, when the first wave of Reaganomics was surging through the corridors of power in Washington, one key proposal increasing the states' contributions to Medicaid would have cost California hundreds of millions of

dollars.

'The Californians in the White House didn't give a damn,' said a budget lobbyist on Capitol Hill. 'They only help out where they see a political benefit to the president, and they didn't see anything like that in this case, when Jerry Brown was governor.'

With Republican George Deukmejian in the governor's office, an appeal from Sacramento directly to the West Wing quelled Treasury Secretary Donald Regan's drive to wipe out California's 'unitary' method of taxing multinational corporations.

A change in the law could have cost the state $500 million at a time when Deukmejian was hard pressed to balance the state budget.

Now, the fight over the state's tax system is likely to be rekindled. Regan, the man who most wants to force a change on the state, is the White House's new chief of staff - the man who controls the flow of information to the president.

  

 

 

 

Last modified: 03/30/08