Bush Fills Several More Cabinet Posts

President-elect George W. Bush named Alcoa Chairman Paul H. O’Neill as Treasury secretary Wednesday and signaled his intention to move aggressively to head off what he fears may be an economic downturn.

In a separate announcement later in the day, Bush nominated three other Cabinet members: business executive and longtime associate Don Evans for Commerce secretary, former California agriculture director Ann M. Veneman to be Agriculture secretary and Mel Martinez, a county commissioner in Florida, for secretary of Housing and Urban Development.

Wednesday’s announcements bring to six the number of Cabinet-level appointments the president-elect has made so far. His choices seem to signal that Bush is holding fast to the policy agenda he outlined during the presidential campaign--including a proposed $1.3-trillion tax cut--while seeking to appease both his core backers and those who questioned whether the top levels of his administration would be sufficiently diverse.

Bush said that O’Neill’s appointment is “incredibly important” in part because “our economy is showing warning signs of a possible slowdown.”

The president-elect was careful to note that he was not predicting a downturn but called himself “a realist” and said that, as the next president, he must “anticipate” all possibilities. Indeed, stocks slid sharply again Wednesday, with the Dow Jones industrial average down 2.5% and the Nasdaq index down 7.1%.

Bush’s attention to the economy is reminiscent of the same intense focus that then-President-elect Bill Clinton promised within days of his 1992 election, when he said that he would focus on the economy “like a laser beam.”

During his appearance with O’Neill at the University of Texas Alumni Center, Bush said that the two men share a commitment to fair and responsible tax relief and a strong commitment to making sure there is free trade throughout the world.

“I look forward to having this good man by my side,” he said. “I look forward to having him making our administration’s case to the Congress, to the American people and to the world.”

It was unclear whether Bush would make additional staff or Cabinet appointments today, though more announcements are expected by Christmas. Several major posts remain open, including the jobs of attorney general and Defense secretary.

Bush intends this morning to resign as governor of Texas, turning over the job to Lt. Gov. Rick Perry, also a Republican. Bush plans to speak from the state Senate chamber at 8 a.m. PST and also attend Perry’s oath-taking in the afternoon.

Also today, Bush has scheduled two sessions on education, one with about 15 members of Congress and another later with Latino leaders from around the country.

Bush Begins to Pack It Up in Texas

The president-elect began Wednesday morning by going to the governor’s office in the Texas Capitol to start packing his personal effects, including his souvenir collection of baseballs. In the hour he spent in his office, Bush took congratulatory calls from Ariel Sharon of Israel and Polish President Aleksander Kwasniewski, aides said.

Later, at the first of the day’s two news conferences, the president-elect praised O’Neill as “a straight-shooter, an innovator” with “a steady hand who, when he speaks, speaks with authority and conviction and knowledge.”

O’Neill, 65, said he had harbored no desire to return to public service but could not turn Bush down. “Perhaps it’s a mark of the capability of the president-elect in convincing people to do things that he wants them to do that I’m here today,” he said.

O’Neill is about to retire as chairman and chief executive officer of Alcoa, the world’s largest aluminum manufacturer with more than 140,000 employees in 36 countries. No stranger to Washington, he has served in the Office of Management and Budget in the Nixon and Ford administrations and advised other presidents, including the president-elect’s father, George Bush, and Clinton.

The Treasury secretary-designate said he strongly believes in the economic agenda that Bush laid out during the campaign. “I’m dedicated to helping him achieve the greatness that I believe he aspires to for America,” O’Neill said.

To combat a possible economic slowdown, Bush not only again touted his $1.3-trillion tax cut proposal but also said that he intends to eliminate federal regulations that hamper economic development.

Specifically, Bush called for a review of federal land-use policies with an eye toward allowing new energy exploration and development of clean-coal technologies. He also said that he intends to ask Congress to increase funding for a program that assists low-income families in paying for home heating this winter.

At the second announcement ceremony, Bush also had high praise for his other Cabinet nominees, calling them “three outstanding Americans.”

Martinez, 54, is a former Cuban refugee, chairman of the Orange County, Fla., board of commissioners and a longtime civic leader in Orlando. He is a close ally of Florida Gov. Jeb Bush, the president-elect’s brother.

Veneman, a Sacramento attorney, would be the first woman to hold the agriculture post. A veteran of the previous Bush administration, she was the second-ranking official at the federal Department of Agriculture. Veneman, 51, served as California’s agriculture secretary during the administration of Republican Gov. Pete Wilson.

And Evans, 54, is one of Bush’s closest confidants. He chaired Bush’s presidential campaign and helped lead fund-raising efforts that took in more than $100 million. He is chairman and chief executive of Tom Brown Inc., a Denver-based energy company.

While Bush took questions at the O’Neill news conference, he did not do so after making the other Cabinet announcements, although the nominees themselves made brief remarks. When introducing Martinez, Bush erroneously referred to HUD as the “department of human development,” a remark that went uncorrected.

The question-and-answer session with O’Neill covered a wide range of topics. Responding to one question, Bush said that it would be up to President Clinton whether to visit North Korea if that country agreed to curb its nuclear program in exchange for assistance from other countries in launching commercial satellites.

“There’s only one president in our country, and that’s President Clinton. And he must make the decisions for what’s best for our nation. . . . And until I’m the president, he is going to make those decisions.”

As he promoted his across-the-board tax cut, which has received only lukewarm backing from even many Republicans, Bush directed his remarks to members of Congress.

“I think it is so important for [Congress] to understand that tax relief is all about economic growth and cash flow and accumulation of capital and so is Social Security reform,” he said.

On the retirement program, which is facing an avalanche of retiring baby boomers in the decade ahead, Bush reiterated his support for some private investment of Social Security taxes and said that he would consider appointing a commission to study long-term reforms for the program.

Bush said that allowing people to personally invest a portion of their payroll taxes “not only encourages people to manage their own money . . . [but also] encourages the accumulation of capital in the private sector. And capital is what fuels entrepreneurial growth.”

Despite the recent market gyrations, Bush remained optimistic about his approach.

“An investment in the private markets should be viewed as a long-term hold . . ,” he said. “The mentality of the day trader is not a part of . . . the vision of a retirement system where people are able to hold assets for a long period of time.”

To further stimulate the economy, Bush touted trade, saying:

“One of the cornerstones of our foreign policy must be trade; not only trade in our own hemisphere, which I think is incredibly important for the United States, but also for Mexico and countries to the south. Free trade in our hemisphere is incredibly important for Canada. But we must be a nation of free traders.”

Bush said he remains “hopeful” that the economy will remain strong, but added:

“I’m also a realist, and one of my jobs is to think ahead, just in case. The Fed[eral Reserve Board] sent the signal, and we are going to . . . play the hand we have been dealt. I . . . want everybody to understand loud and clear that our hope in this administration is that our economy remain robust.”

Bush Meets With Charity Chiefs

Asked about his lack of support from minorities, particularly African Americans, Bush acknowledged that there is work ahead, saying he welcomed the opportunity to heal a nation divided by the presidential election.

“My hope is that when people who may not have supported me get to know me, they realize that I am just as intent upon being a good president for them as for those folks who supported me,” Bush said.

After the O’Neill announcement, Bush, accompanied by Vice President-elect Dick Cheney, attended a closed-door meeting with about 30 representatives of faith-based organizations and other leaders in charitable social service programs to discuss private initiatives to help the needy.

The hourlong meeting took place at the First Baptist Church in Austin. In remarks to reporters, who were allowed in only briefly, Bush reiterated his plan to create in the White House “an office of faith-based programs, a place where people will feel comfortable about bringing their ideas [and] . . . their complaints about people’s inaction, or too much government action, which will hamper people from doing their job.”

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Bush’s Cabinet Choices

President-elect George W. Bush nominated four Cabinet secretaries Wednesday. Bush’s choices so far are indicated by photos. Other positions list top candidates. All must be approved by theSenate.

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Treasury: PAUL H. O’NEILL

Age: 65

Current job: Chairman of Alcoa Corp. since 1987

Previous experience: Worked at the Office of Management and Budget in the 1960s and 1970s. President of International Paper Co.

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Housing and Urban Development: MEL MARTINEZ

Age: 54

Current position: Chairman of the Orange County, Fla., board of commissioners since 1998.

Previous experience: Orlando Utilities Commission, 1994-’97. Chairman, Orlando Housing Authority; lawyer, private practice.

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State: COLIN L. POWELL

Age: 63

Current job: Founder and chairman, America’s Promise, 3-year-old nonprofit organization for youth.

Previous experience: Joint Chiefs of Staff head, 1989-93; national security advisor to President Reagan, 1987-89; served in the Army for 35 years in command and staff positions.

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Commerce: DON EVANS

Age: 54

Current job: Chairman and CEO of Tom Brown Inc., a Denver-based oil and gas company with an office in Midland, Texas (1975-present).

Previous experience: chairman of the Bush-Cheney 2000 campaign; national finance chairman forBush’s Texas gubernatorial campaigns (1998, 1994)

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Agriculture: ANN VENEMAN

Age: 51

Current position: Attorney in private practice, Sacramento, 1999-present.

Previous experience: Secretary of California Department of Food and Agriculture, 1995-1999.

Education

The Rev. Floyd Flake, former Democratic congressman; Arizona education Supt. Lisa Graham Keegan; Sandy Kress, Bush’s education advisor; Drew University President Thomas Kean; Houston school Supt. Roderick T. Paige; former Rep. William Gray (D-Pa.), and president of the United Negro College Fund; Pennsylvania Education Secretary Eugene W. Hickock; Florida Lt. Gov. Frank Brogan.

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Transportation

Elaine L. Chao, former deputy Transportation secretary in George Bush administration; Rep. Jennifer Dunn (R-Wash.), defeated Sen. Spencer Abraham (R-Mich.), Kansas Gov. Bill Graves.

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Energy

Alaska Gov. Tony Knowles, Democrat who supports drilling in the Arctic National Wildlife Refuge in Alaska; defeated Sen. Slade Gorton (R-Wash.) and Thomas Kuhn, Edison Electric Institute.

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Defense

Dan Coats, Republican senator from Indiana.

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Veterans Affairs

Former Deputy VA Secretary Anthony Prinicipi, Florida VA Director Robin Higgins, Rep. John “Ike” Skelton (D-Mo.), Rep. Norman Sisisky (D-Va.)

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Other Cabinet-Level Positions

U.S. trade representative: Robert Zoellick, Bush foreign policy advisor.

Environmental Protection Agency: Christine Todd Whitman, New Jersey governor.

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Attorney General

Oklahoma Gov. Frank Keating; defeated Sen. John Ashcroft (R-Mo.), former Sen. John Danforth (R-Mo.)

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Interior

Montana Gov. Marc Racicot (R), Sen. Ben Nighthorse Campbell (R-Colo.), defeated Sen. Slade Gorton (R-Wash.)

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Health and Human Services

Tommy G. Thompson, Republican governor of Wisconsin.

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Labor

Rep. Jim Talent (R-Mo.), Rep. Jennifer Dunn (R-Wash.), former Reagan administration civil rights commissioner Linda Chavez, Connecticut Gov. John Rowland.

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Sources: Staff reports; Associated Press