Letter to the Administrator of the Small Business Administration Regarding the Veto of Bill Concerning Government Ban of Tris in Sleepwear

To Administrator Vernon Weaver:

Today, I withheld my approval from S. 1503, the TRIS Indemnification Bill, because it would:

—establish an unwise precedent for paying industry for losses which occur when a product is used to meet a regulatory standard and the product is later found to be hazardous and eliminated from the marketplace;

—open the door for compensation of businesses which marketed TRIS-treated products after it was known, or should have been known, that TRIS was proving to be hazardous;

—result in complex, expensive and time-consuming litigation, particularly by large retailers who have substantial sums at stake and can finance such litigation.

I understand that some small cutting and sewing firms involved have received loans from the Small Business Administration, specifically under the 15 USC 636 (b), to help them continue in business and to preserve the livelihoods of their employees. I ask that SBA continue this work but, in addition, assist other eligible firms to the fullest extent possible under existing loan programs. This would allow affected firms which are facing financial difficulties time to recover and, where appropriate, to seek redress through the judicial systems for any losses they may have incurred.

JIMMY CARTER

[The Honorable A. Vernon Weaver, Administrator, Small Business Administration, 1441 C Street, N.W., Washington, D.C. 20416]