together in the aftermath of the failed me 17, 1983 agreement between israel and lebanon that george shultz a broker. and i think larry will remember the memo that peter rowe for secretary shultz when but agree million ruins and u.s. forces have withdrawn from lebanon and a long period of syrian domination he wrote a memo saying our involvement should be punctuated not with a period but with a ; because we would of indebted -- undoubtedly need to revisit the issue again. he argues and rights that lebanon was ronald reagan's biggest foreign policy failure but as they would have a some 20 years later as rear reignited as colleagues at the pope pentagon we had to deal with the issue. i should say peter b. wyss the board met was a little awkward. he had been a mentor, he was somebody i have looked up two, a role model and we found ourselves in the awkward situation of him being by subordinates. a less gracious person would make them more difficult with his natural grace made a very easy relationship. as i held down suspected he became my indispensable colleague and ally and enter agency fights

treasury, also former secretary of state, secretary of labor and directo r of the budget, secretary george shultz who after studying carefully the events of the last few months, came up with the following statement and i quote secretary schultz. observing this process, the question comes forcefully ought. has the accord gone down the drain. the secretary of course is referring to the 1951 accord where the fed regained its independence from the treasury, which had lost during world war ii and was committed to pegging treasury interest rates. and then he goes on to say, an remember how difficult it was for the fed to disentangle itself from the treasury in the post world war ii period. so these are very serious concerns. my four concerns, and i'd be happy to answer any questions you have about them. thank you, mr. chairman. >> thank you, mr. taylor. dr. meltzer. >> thanks to my old friend, congressman ron paul and to the members, thank you for the opportunity to present my appraisal of the administration's proposal for regulatory changes. i will confine most of my comments to the role of the federa