• MEMORANDUM TO: WPC THRU: Doug Brown FROM: Allen Clark PREPARED BY: Richard English SUBJECT: Minority Subcontractors DATE: October 16, 1980 A question may be asked at your Friday Press Conference about the cancellation of $400 million in federal aid for new highway construction. Since one of the ways that the Republican Party has made inroads into minority communities is through minority business leaders, this issue is one of great political sensi- tivity and could affect the success of the Reagan-Bush ticket among minorities. The Texas Commission on Highways and Public Transportation takes the position that it cannot comply with the new regulations and at the same time comply with state law. The regulations would in effect require a highway contractor to award a certain percentage of his subcontracts to minority businesses, i.e. to meet "goals" or quotas, but state law requires the awarding of the contract to the lowest bidder. To support the position of the Texas Commission on Highways and Public Trans- portation without any qualification may suggest or indicate to minorities a lack of sympathy with their goals and aspirations. RECOMMENDATION It is probably best to say as little as possible about this problem until after the November election. This problem is a "no-win" issue, and the most that should be said is that this is a difficult problem which requires further study.