Bush To Tap O'Neill for Treasury

Wednesday, December 20th 2000, 12:00 am

By: News On 6

WASHINGTON (AP) â€” President-elect Bush was nominating Pennsylvania business executive and former Ford administration budget expert Paul O'Neill as treasury secretary Wednesday, The Associated Press learned. Three other Cabinet positions were to be filled by day's end.

His transition truncated by the 36-day election standoff, Bush also planned to nominate longtime friend Don Evans as commerce secretary, former Cuban refugee Mel Martinez as housing secretary and Californian Ann Veneman as agriculture secretary.

Two GOP sources, speaking on condition of anonymity, said Bush decided to name O'Neill during a two-day visit to Washington that ended Tuesday night.

He was making the announcements in two separate news conferences at the University of Texas. The events were sandwiched between meeting with leaders of charitable organizations to discuss ways to encourage faith-based groups to provide social services for the poor.

In the morning, Bush received congratulations by phone from Ariel Sharon, Israel's Likud party chief and contender for prime minister, and the president of Poland, Aleksander Kwasniewski. Bush sounded nostalgic after stopping by the governor's office in Austin, Texas, to pack up his collection of autographed baseballs.

``I'm going to miss this place, I have a lot of fond memories,'' he said. ``On the other hand, I'm looking forward to my new assignment.''

O'Neill, 65, has been chairman of Alcoa Inc. since 1987. He was deputy budget director under President Ford when Vice President-elect Dick Cheney was President Ford's chief of staff. O'Neill and Cheney now serve as directors of American Enterprise Institute, a conservative think tank in Washington.

Cheney is head of Bush's transition team, and has left his fingerprints on several Cabinet selections, including the yet-to-be-determined defense secretary.

The Senate, divided 50-50 between Republicans and Democrats, must confirm Bush's nominees.

Evans, 54, is chief executive of Tom Brown Inc., a Denver-based oil and gas company with an office in Midland. He was instrumental in helping Bush raise a record $100 million for his presidential race, then helped guide the campaign to a narrow victory over Vice President Al Gore.

Martinez, chairman of Orange County, Fla. â€” which encompasses Orlando â€” co-chaired Bush's campaign in Florida and is a close ally of his brother Jeb, the state's Republican governor. Martinez, 54, fled Cuba to the United States in 1962 when he was 15 years old and played a starring role in the Elian Gonzalez saga earlier this year.

Veneman, 51, served as director of the California Food and Agriculture Department from 1996 to 1998. Appointed by former Republican Gov. Pete Wilson, she was the first woman to head the agency. She was also the highest-ranking woman in the U.S. Department of Agriculture from 1989 to 1991, when she served as deputy secretary for international affairs and commodities programs when Bush's father was president.

Martinez and Veneman made the three-hour flight from Washington to Austin on Bush's plane Tuesday. Also aboard was Stephen Goldsmith, former Indianapolis mayor, who has been considered a potential housing secretary. Goldsmith worked with Bush during his campaign on the faith-based initiative and was traveling to Texas to participate in Wednesday's forum.

Montana Gov. Marc Racicot, a longtime Bush ally, was flying to Texas Tuesday night for a meeting with Bush. He is the top candidate for attorney general, as well as a prospect for interior secretary. Oklahoma Gov. Frank Keating, a favorite of conservatives, some of whom oppose Racicot for attorney general, left Tuesday for a four-day trip to Bosnia.

Other top candidates include:

â€” Wisconsin Gov. Tommy Thompson, who sources say Bush has tentatively settled on for secretary of Health and Human Services. Bush met with Thompson, 59, on Tuesday. Bush advisers said the nomination could be made official in the next week barring a change of mind. Bush has not formally offered the job to the nation's longest-serving governor.

â€” Former Sen. Dan Coats, R-Ind., the leading defense secretary candidate. Bush huddled with Coats on Monday. Cheney was said to be pushing his candidacy.

â€” New Jersey Gov. Christie Whitman, the front-running candidate to head the Environmental Protection Agency. Whitman's allies are telling associates that the governor has accepted the job, and will be announced as his nominee Thursday. There was no immediate confirmation from the Bush camp.

O'Neill's chances appeared to be clouded Tuesday by a Wall Street Journal article that said he once supported Gore's proposal for gasoline and carbon taxes. Bush's allies sounded out conservatives to gauge support for him.

Bush also fit in a two-hour rite of passage meeting with President Clinton on Tuesday, discussing mostly foreign policy. The President-elect also called on Gore â€” for just 15 minutes.