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Clinton Signs Bill Ending Wool, Mohair Subsidies

November 2, 1993 GMT

WASHINGTON (AP) _ A bill ending a 40-year government subsidy for wool and mohair production was signed into law Monday by President Clinton, who called it a step in his effort to streamline government.

The subsidies had been provided when materials for uniforms and gloves were deemed ″strategic materials″ by the Pentagon. The subsidies continued, even though the Pentagon took them off its strategic materials list in 1960, Clinton said in signing the legislation.

″There is no justification for maintaining this program on the books,″ Clinton said in a statement.

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The subsidies will be phased down until the end of 1995, when they will be ended. The move will save the government $514 million between now and 1998, the administration claims.

Ending the subsidies was included among the recommendations in a $10 billion package of spending cuts and other cost-saving moves sent to Congress by Clinton last month.

The White House calls it its ″reinventing government″ program.

″The legislation ... eliminates an outdated program, reduces the deficit and affirms for the American people our commitment to change,″ Clinton said.

So far, Clinton has been less successful in persuading Congress to eliminate a $6.5-million-a-year subsidy to honey bee farmers that dates back to World War II - and which Clinton used in his campaign as a sign of government waste.