Baker, Regan Switch Jobs in White House Shakeup : Reagan Told of 2 Aides’ Plan, OKs It

President Reagan, making a surprising clean sweep of his “Big Three” advisers, announced today that his chief of staff, James A. Baker III, and his Treasury secretary, Donald T. Regan, are switching jobs.

Reagan had no idea that the two were even contemplating such a move until Monday morning, when outgoing chief of staff Michael K. Deaver was delegated to present the plan to the President on behalf of Baker and Regan, White House spokesman Larry Speakes said.

The President talked with the two officials separately Monday, Speakes said, and signed the deal later in the afternoon.

In Briefing Room

Deaver went to Reagan’s private residence this morning to ask if the President wanted to make the announcement, Speakes said. Shortly thereafter, the President appeared in the White House briefing room, with Baker and Regan flanking him, to make the disclosure.

Baker is the last of the three top aides Reagan brought with him to the White House. Presidential counselor Edwin Meese III has been renominated attorney general, succeeding William French Smith, who wants to return to private life in California, and Deaver is leaving government service.

One official, speaking privately, said it was clear that Baker and Regan began discussing the job swap idea sometime before Dec. 27, when the President flew to California for a six-day holiday.

Alfred Kingon, Treasury assistant secretary for policy planning and communications, said Regan decided to approach Baker because of reports that the White House staff chief wanted a senior Cabinet job.

“He read the paper, saw that Baker wanted it (the Treasury),” Kingon said. Baker also was mentioned for posts in the Pentagon, State Department and Justice Department.

Deaver was brought into the discussions early. Speakes said that from the very beginning, the Treasury secretary said he would drop the idea if Deaver were interested in succeeding Baker.

Deaver, who had complained about not making enough money at the White House, ruled himself out, saying he wanted to go back into the public relations business.

He even moved up the public announcement of his own resignation, with a disclosure last week, to clear the way for the Regan-Baker swap, Speakes said, but he did not tell the President that the plan played a part in the timing of his announcement.

After Deaver announced his resignation, Regan and Baker went ahead with planning for their switch.

The President said Regan and Baker had “served loyally and admirably at considerable personal sacrifice.”

He also said that “after four grueling years in their positions, their desire for change is understandable” and that each “is extremely well suited for his new assignment.”

Regan, who headed the giant brokerage firm of Merrill, Lynch, Pierce Fenner & Smith before joining the Reagan Administration four years ago, is regarded as a hard-nosed pragmatist, much like Baker. His appointment to the top staff position at Reagan’s elbow is unlikely to mollify the President’s conservative supporters, who have been openly concerned about the departure of Meese and others from Reagan’s inner circle.

Baker, a wealthy Houston lawyer, had been the outsider in Reagan’s inner circle, the only person in a key position who had not served the President for years while he was governor of California. With the coming departure of Meese and Deaver, he appeared to have gained the preeminent position among Reagan’s advisers.