-Caveat Lector-

from:
http://www.wired.com/news/news/politics/story/17527.html?wnpg=1
<A HREF="http://www.wired.com/news/news/politics/story/17527.html">Political
News from Wired News</A>
-----
Feds Plan Y2K Spin Control
by Declan McCullagh
3:00 a.m.  26.Jan.99.PST

WASHINGTON -- Fears of Y2K panic have prompted the federal government to
begin quietly preparing a media strategy designed to assuage public
fears of blackouts or other potential infrastructure failures.
John Koskinen, assistant to President Clinton and chairman of the White
House's Y2K council, has entered into discussions with a
public-relations firm, Wired News has learned. The firm has recommended
conducting awareness surveys and honing a "stay-calm" message based on
the results.

The campaign is designed to thwart widespread hoarding and extreme
reactions to Y2K, including the possibility of bank runs and
stockpiling-sparked shortages.

Fifty percent of Americans plan to take extra cash out of the bank and
one-third say they'll stockpile food before the new millennium,
according to a recent Time Magazine and CNN poll.

Officials have suggested other strategies, such as asking broadcasters
to donate free air time and creating a media-advisory group that would
work hand in hand with the federal Y2K council to soothe anxious
Americans.

During a December closed-door meeting held by the council at Federal
Reserve Board headquarters, attendees bemoaned negative media coverage
and suggested staging "community cooperation" events to calm jitters and
spur positive press coverage, a participant said.

Jack Gribben, a spokesman for the council, stressed that no decisions
have been made. "Both communications and the issue of communicating with
customers and constituents were discussed."

He said that "we have had discussions" with at least one
public-relations company, but "there's nothing firm at this point."

At the council meeting, the Federal Communications Commission's Marsha
MacBride and the US Postal Service's Richard Weirich reportedly
suggested a federal project to monitor the public's reaction to Y2K. An
Agriculture Department representative complained that the agency's most
frequent telephone inquiry has become: "How many cans of food should I
stockpile for my family?"

Radical responses to Y2K have become a top concern among Washington
insiders such as Koskinen. Last year, he warned, "We need to avoid
creating panic and precipitous, counterproductive activity."

The head of the Senate's Year 2000 committee has echoed that sentiment.

"Even if the Y2K problem is solved, the panic side of it can end up
hurting us as badly," Senator Robert Bennett (R-Utah) said in December.

When an industry-advisory group met for the first time last Thursday,
members fretted over how to prevent public overreaction to Y2K. The
members of the group include incoming Securities Industry Association
chairman Roy Zuckerberg, United Airlines chairman Jerry Greenwald, North
American Electric Reliability Council chairman Erle Nye, and Scott
Anderson of the American Bankers Association.

Officials also are growing edgy about releasing sensitive information.
Last May, the National Security Agency classified a Defense Department
Y2K database as "highly sensitive," prompting the military to yank it
from the Internet.

In response to a Senate request, the General Accounting Office last fall
compiled reports on each industry's Y2K readiness, but has not yet
released the complete results to the public. Some agency Y2K officials
even worry that the bulky quarterly reports published by the White
House's Office of Management and Budget every four months contain too
much information.

Even though Koskinen said as recently as two weeks ago that "our
strategy is based on the premise that the public has great common sense
and will respond appropriately when they have the necessary
information," the Clinton administration and Congress have taken steps
to close meetings.

A bill that Clinton signed last fall was widely touted by the White
House and a bipartisan group of legislators as a way to limit
inappropriate Y2K liability. But a key provision bars the public from
attending meetings of the Y2K council and its subcommittees.

The Year 2000 Information and Readiness Disclosure Act says the federal
open-meeting act "shall not apply to the working groups established
under this section."

"There's a certain necessity, to a degree, in having private meetings.
We want to encourage people to be candid about their progress, and
opening the meetings up to the press and the public doesn't always
encourage candor," Gribben said.

The federal public-relations strategy is still evolving, and the cost of
a national advertising campaign may turn out to be prohibitive. But
Koskinen has already decided to spotlight success stories among federal
agencies.

At a press conference in December, for instance, Clinton hailed Social
Security's Y2K progress.

"The Social Security system is now 100 percent compliant with our
standards and safeguards for the year 2000," Clinton said on 28 December
1998.

But two weeks later, few reporters showed up to cover the Defense
Department's admission that it missed its self-imposed repair deadline.
Just 1,673 of 2,300 mission-critical computers were fixed by the end of
1998, Deputy Secretary of Defense John Hamre said on 14 January. But he
predicted, "We will have about 94 percent of our systems fixed as of the
end of March."

Koskinen's job is made more difficult by a plan still under
consideration, which would have the government advise Americans to make
"reasonable" preparations, such as buying candles or asking their doctor
for an extra prescription in late 1999. The American Red Cross already
has recommended similar steps.

Other possibilities include asking large companies to head off "mass
hoarding" by reassuring their customers and increasing public confidence
that community emergency services such as 911 will be ready if they are
needed.

The government recently launched a toll-free hotline, (888) USA 4 Y2K.
So far, the largest percentage of callers say they're more worried about
banks than other sectors of the economy. 9 Wired Digital Inc. All rights
reserved.

-----
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