(I4V 4. 1 1 3, 96O -6 1,/ c, 2 "-"v -.1 v, 1-4, I 't -k *. I %O. j '-,, 10. 1 c U." 1. I 4 4'.. / I' IL* I I a,.0 I, I'. I r, I % 6.. t.." -,., A g" 0.4.. 1. A v Ut - Al r, - - I -1 i 4 * A 14 r Irk I 'o ^. 1 4 kil 4 - - '11 P I ii 06 I I 4. I P r4 4 THE GEORGE AND HELEN LADD LIBRARY BATES COLLEGE LEWISTON, MAINE., I I I - I. 4 1 1 t, I I,.. I I j - I I /. ) BATh COLG LIBRA! --- -- I Ir I --- -- - W-V -71 7) PUBLIC PAPERS OF THE PRESIDENTS OF THE UNITED STATES PUBLIC PAPERS OF THE PRESIDENTS OF THE UNITED STATES Dwight D. Eisenhower 1960-61 Containing the Public Messages, Speeches, and Statements of the President JANUARY I, 1960, TO JANUARY 20, 1961 BATES COLLEGE LEVv WJI SON MAINE L. -i-._': _ ---~,"" n 111 IH * PUBLISHED BY THE OFFICE OF THE FEDERAL REGISTER NATIONAL ARCHIVES AND RECORDS SERVICE GENERAL SERVICES ADMINISTRATION U.S. GOVERNMENT PRINTING OFFICE: 1961 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington 25, D.C. - Price $7.75 FOREWORD THERE HAS BEEN a long-felt need for an orderly series of the Public Papers of the Presidents. A reference work of this type can be most helpful to scholars and officials of government, to reporters of current affairs and the events of history. The general availability of the official text of Presidential documents and messages will serve a broader purpose. As part of the expression of democracy, this series can be a vital factor in the maintenance of our individual freedoms and our institutions of self-government. I wish success to the editors of this project, and I am sure their work through the years will add strength to the ever-growing traditions of the Republic. 6L C-fr1ZfC^ Ao~N V PREFACE IN THIS VOLUME are gathered most of the public messages and statements of the President of the United States that were released by the White House during the period January i, 1960 -January 20, I96I. Similar volumes covering the years I953 through I959 are also available. Volumes covering the remainder of I96I and the period April I 2, I945-January 20, I953, are under preparation. This series was begun in response to a recommendation of the National Historical Publications Commission (44 U.S.C. 393). The Commission's recommendation was incorporated in regulations of the Administrative Committee of the Federal Register issued under section 6 of the Federal Register Act (44 U.S.C. 306). The Committee's regulations, establishing the series, are reprinted at page 1093 as "Appendix D." The first extensive compilation of the messages and papers of the Presidents was assembled by James D. Richardson and published under Congressional authority between I896 and I899. It included Presidential materials from I789 to I897. Since then, there have been various private compilations, but no uniform, systematic publication comparable to the Congressional Record or the United States Supreme Court Reports. For many years Presidential Proclamations have been published in the United States Statutes at Large. The Federal Register Act in 1935 required that Proclamations, Executive Orders, and some other official Executive documents be published in the daily Federal Register; but the greater part of Presidential writings VII Preface and utterances still lacked an official medium for either current publication or periodic compilation. Some of them were interspersed through the issues of the Congressional Record while others were reported only in the press or were generally available only in mimeographed White House releases. Under these circumstances it was difficult to remember, after a lapse of time, where and in what form even a major pronouncement had been made. CONTENT AND ARRANGEMENT The text of this book is based on Presidential materials issued during the period January i, i960-January 20, i96i. A list of White House releases from which final selections were made is published at page i067 as "Appendix A." Proclamations, Executive Orders, and similar documents required by law to be published in the Federal Register and Code of Federal Regulations are not repeated. Instead, they are listed by number and subject under the heading "Appendix B" at page io86. The President is required by statute to transmit numerous reports to Congress. Those transmitted during the period covered by this volume are listed at page i09i as "Appendix C." The items published in this volume are presented in chronological order, rather than being grouped in classes. Most needs for a classified arrangement are met by the subject index. For example, a reader interested in veto messages will find them listed in the index under the heading "veto messages." The dates shown at the end of item headings are White House release dates. In instances where the date of the document differs from the release date that fact is shown in brackets immediately following the heading. Other editorial devices, such as text notes, vm Preface footnotes, and cross references, have been held to a minimum. Remarks or addresses were delivered in Washington, D.C., unless otherwise indicated. Similarly, statements, messages, and letters were issued from the White House in Washington unless otherwise indicated. Original source materials, where available, have been used to protect against substantive errors in transcription. In maintaining the integrity of the text (and in solving many other problems in the Eisenhower volumes), valuable assistance was furnished by L. Arthur Minnich, Jr., and William J. Hopkins of the White House staff, and by Robert R. Bolton of the National Archives and Records Service. The planning and publication of this series is under the direction of David C. Eberhart of the Office of the Federal Register. The editor of the present volume was Warren R. Reid, assisted by Mildred B. Berry and Dorothy M. Jacobson. Frank H. Mortimer of the Government Printing Office developed the typography and design. WAYNE C. GROVER Archivist of the United States JOHN L. MOORE Administrator of General Services May I5, i96I 60295-61 ---2 Ix CONTENTS Page FOREWORD V PREFACE...VII LIST OF ITEMS........ xm PUBLIC PAPERS OF DWIGHT D. EISENHOWER... I Appendix A-White House Press Releases, I960-6I. 1067 Appendix B-Presidential Documents Published in the Federal Register, 1960-61... o86 Appendix C-Presidential Reports to the Congress, 1960-6....... 091 Appendix D-Rules Governing This Publication. I093 INDEX.......... I095 XI LIST OF ITEMS Page I Letter to the Attorney General on Receiving His Report on Deceptive Practices in Broadcasting Media. January i, 1 960 I 2 Exchange of New Year Greetings Between the United States and the Soviet Union. January 4, 1960 I 3 Statement by the President on the Death of Representative Simpson of Pennsylvania. January 7, 1960 2 4 Annual Message to the Congress on the State of the Union. January 7, 1960 3 5 Letter to Senator Cooper on Federal Programs and Activities in Aid of Chronic Labor Surplus Areas. January 8, 1960 I8 6 Special Message to the Congress on Removal of the Interest Rate Ceiling on Government Bonds. January 12, 1960 2I 7 The President's News Conference of January I 3, 1960 21 8 Letter to Gordon Gray Designating Him Chairman of the Operations Coordinating Board. January I 3, 1960 31 I 9 Letter to Karl G. Harr, Jr., Concerning His Duties With the Operations Coordinating Board. January 13, 1960 31 I i o Special Message to the Congress on Transfers From the Department of Defense to the National Aeronautics and Space Administration. January 14, 1i960 32 iI Special Message to the Congress Recommending Amendments to the National Aeronautics and Space Act. January 14, 1960 34 12 Letter to T. Keith Glennan, Administrator, National Aeronautics and Space Administration, on High Thrust Space Vehicles. January 14, 1960 37 13 Annual Budget Message to the Congress: Fiscal Year 1961. January i8, 1960 37 XIII List of Items Page I4 Toasts of the President and Prime Minister Kishi of Japan. January 19, 1960 I I5 Remarks at the Signing of the Treaty of Mutual Cooperation and Security Between Japan and the United States. January i9, i960 I 13 I6 Joint Statement Following Discussions With Prime Minister Kishi of Japan. January 19, 1960 I13 17 Annual Message Presenting the Economic Report to the Congress. January 20, 960 I 17 i8 Remarks to Participants in the Young Republican National Leadership Training School. January 20, I960 I19 19 Remarks at the Annual Midwinter Meeting of the National Association of Real Estate Boards. January 25, I960 2 I 20 Statement by the President on the Occasion of the 8oth Birthday of General of the Army Douglas MacArthur. January 26, I960 I24 21 The President's News Conference of January 26, I960 I25 22 Statement by the President Restating United States Policy Toward Cuba. January 20, I960 134 23 Address in Los Angeles to the Nationwide Republican "Dinner With Ike" Rallies. January 27, I960 137 24 The President's News Conference of February 3, I960 144 25 Citation Accompanying Awards for Oceanographic Research. February 4, 1960 154 26 Memorandum Concerning a Career Executive Development Program in All Departments and Agencies. February 5, i960 I55 27 Memorandum Directing the Special Assistant for Personnel Management To Provide Leadership in the Career Development Program. February 5, I960 I56 28 Memorandum to the Chairman, Civil Service Commission, on the Career Executive Development Program. February 5, 1960 157 XIV List of Items Page 29 Letter to Dr. Henry Wriston on His Acceptance of the Chairmanship of the Commission on National Goals. February 7, g1960 158 30 Memorandum Concerning the Commission on National Goals. February 7, g1960 159 31 Remarks at Dedication of the Veterans of Foreign Wars Memorial Building. February 8, 1960 i6i 32 Special Message to the Congress on Agriculture. February 9, 1 960 i 62 33 Remarks After Inspecting the Missile Test Center, Cape Canaveral, Florida. February 10, 1 960 i66 34 The President's News Conference of February i I, 1960 i66 - Statement by the President on the U.S. Proposal To End Nuclear Weapons Tests i66 35 Remarks Recorded in Observance of the both Anniversary of the Boy Scouts of America. February 12, 1960 176 36 Special Message to the Congress on the Mutual Security Program. February i6, 1960 177 37 Memorandum on the 1960 Red Cross Campaign. February 17, 1960 188 38 The President's News Conference of February 17, 1960 189 39 Special Message to the Congress Recommending U.S. Participation in the International Development Association. February i 8, 1 960 199 40 Statement by the President on the Birth of a Son to Queen Elizabeth II and Prince Philip. February I9, 1960 202 41 Message to the King of Denmark on the Death of Prime Minister Hansen. February 20, 1960 202 42 Radio and Television Address to the American People on the Eve of South American Trip. February 21, 1960 202 43 Remarks Upon Arrival at International Airport, San Juan, Puerto Rico. February 22, 1960 207 xv List of Items Page 44 Veto of Bill To Amend the Federal Water Pollution Control Act. February 23, 1960 2o8 45 Remarks at the Civic Reception for President Eisenhower in Brasilia. February 23, 1960 210 46 Joint Statement of the President and President Kubitschek of Brazil. February 23, 1960 2I2 47 Message to the Congress Transmitting Second Annual Report on U.S. Aeronautics and Space Activities. February 24, 1960 2 13 48 Remarks Upon Arrival at the Naval Ministry in Rio de Janeiro. February 24, 1960 214 49 Address Before a Joint Session of the Congress of Brazil. February 24, 1960 2 i 6 5o Remarks to the Members of the Supreme Court of Brazil. February 24, 1960 221 5i Toast by the President at a Dinner Given in His Honor by President Kubitschek in Rio de Janeiro. February 24, 1 960 223 52 Remarks Upon Arrival at Congonhas Airport, Sao Paulo, Brazil. February 25, 1960 224 53 Address by the President at a Luncheon Given in His Honor in Sao Paulo. February 25, 1960 225 54 Remarks at the Airport in Sao Paulo Upon Leaving for Rio de Janeiro. February 25, 1960 229 55 Statement by the President Upon Leaving Brazil. February 26, g1960 229 56 Remarks Upon Arrival at Ezeiza Airport, Buenos Aires. February 26, g1960 231 57 Remarks at the U.S. Embassy Residence in Buenos Aires Upon Receiving the Key to the City. February 26, g1960 231 58 Address Before a Joint Session of the National Congress of Argentina. February 26, 1960 232 XVI List of Items Page 59 Toast by the President at a Dinner Given in His Honor by President Frondizi in Buenos Aires. February 26, I960 237 60 Remarks to the Members of the Supreme Court of Argentina. February 27, I960 239 6I Remarks Upon Arrival at the Provincial Hotel in Mar del Plata, Argentina. February 27, I960 240 62 Remarks Upon Arrival at the Airport, San Carlos de Bariloche, Argentina. February 27, i960 24I 63 Toast to President Frondizi at a Dinner Given in His Honor by the President in San Carlos de Bariloche. February 27, I960 242 64 Message to President Kubitschek of Brazil on the Air Tragedy Over Rio de Janeiro. February 28, I960 243 65 Statement of the President Recorded for the Opening of the I960 Red Cross Campaign. February 28, I960 244 66 The Declaration of San Carlos de Bariloche: Joint Declaration by the President and President Frondizi of Argentina. February 28, I960 245 67 Remarks at the Airport in San Carlos de Bariloche Upon Leaving for Chile. February 29, 1960 246 68 Statement by the President Concerning the Recipients of President's Award for Distinguished Federal Civilian Service. February 29, I960 247 69 Remarks in Santiago in Response to Greetings by President Alessandri of Chile. February 29, I960 248 70 Remarks at the American Embassy Residence in Santiago Upon Receiving a Scroll From the Chilean-American Cultural Institute. February 29, I960 250 71 Toast by the President at a Dinner Given in His Honor by President Alessandri. February 29, I960 25I 72 Remarks to the Embassy Staff and to Members of ChileanAmerican Groups in Santiago. March i, I960 252 XVII List of Items Page 73 Address Before a Joint Session of the National Congress of Chile. March i, I960 256 74 Remarks Upon Receiving a Medal Presented by Members of the National Congress of Chile. March i, I960 26I 75 Toast to President Alessandri at a Dinner Given in His Honor by the President. March i, I960 262 76 Joint Statement Following Discussions With President Alessandri of Chile. March i, 1960 263 77 Remarks at Los Cerrillos Airport in Santiago Upon Leaving for Uruguay. March 2, I960 264 78 Remarks Upon Arrival at Carrasco Airport, Montevideo. March 2, I960 265 79 Remarks Upon Receiving a Medal From the President of the Departmental Council of Montevideo. March 2, I960 266 80 Address Before a Joint Session of the National Congress of Uruguay. March 2, I960 267 8I Remarks Upon Receiving a Medal Presented by the President of the General Assembly. March 2, 1960 272 82 Toast of the President at a Dinner Given in His Honor by President Nardone of Uruguay. March 2, I960 272 83 Remarks to the Staff of the U.S. Embassy in Montevideo. March 3, I960 273 84 The Declaration of Montevideo: Joint Declaration by the President and the National Council of Government of Uruguay. March 3, 1960 275 85 Remarks at Carrasco Airport, Montevideo, Upon Leaving for Puerto Rico. March 3, 1960 276 86 Remarks at Dorado, Puerto Rico, at a Meeting of the American Assembly. March 4, 1960 277 87 Radio and Television Report to the American People on the South American Trip. March 8, 1960 282 XVIII List of Items Page 88 Remarks at a Dinner Given by the Indiana State Society in Honor of Minority Leader Charles A. Halleck. March Io, 1960 287 89 Special Message to the Congress on Increasing the Postal Rates. March II, 1960 288 go Letter to Frederick M. Eaton, U.S. Representative to the Ten-Nation Disarmament Conference in Geneva. March 1 2, 1960 290 91 Toasts of the President and Chancellor Adenauer of Germany. March 15, 1960 291 92 Joint Statement Following Discussions With Chancellor Adenauer. March 15, g1960 292 93 The President's News Conference of March i6, 1960 293 94 Remarks at the i6th Annual Washington Conference of the Advertising Council. March i6, g1960 303 95 Special Message to the Congress Concerning the Administration's Program To Promote the Growth of Export Trade. March 1 7, 1 960 306 96 Special Message to the Congress on Immigration. March 1 7, 1 960 308 97 Exchange of Messages Between the President and Chairman Khrushchev on the Rescue of Four Soviet Soldiers by the U.S.S. Kearsarge. March 22, 1960 310 98 Remarks to a Group of Eisenhower Exchange Fellows. March 22, 1960 311I 99 Exchange of Messages Between the President and the King of Morocco on the Earthquake at Agadir. March 23, 1960 313 o100 Address at the Opening Session of the White House Conference on Children and Youth, College Park, Maryland. March 27, 1960 313 i0i Joint Statement by the President and Prime Minister Macmillan at the Beginning of Their Conversations at Camp David. March 28, 1 960 3 17 XIX List of Items Page 102 Joint Declaration by the President and Prime Minister Macmillan on Nuclear Weapons Tests. March 29, 1960 318 103 The President's News Conference of March 30, 1960 319 104 Statement by the President on the Launching of Satellite Tiros I. April i, 1960 330 105 Statement by the President on the Fifth Anniversary of the Announcement of the Effectiveness of Polio Vaccine. April 4, 1960 330 i06 Exchange of Telegrams Between the President and President Garcia on the Philippine Sugar Quota. April 4, 1960 331 107 Remarks at a Rally Sponsored by the Republican Women's National Conference. April 4, 1960 332 i08 Remarks of Welcome to President Lleras Camargo of Colombia at the Washington National Airport. April 5, 1960 337 109 Toasts of the President and President Lleras at the White House. April 5, 1960 338 ii0 Toasts of the President and President Lleras at the Colombian Embassy. April 7, 1960 339 i i i Statements by the President and President Lleras Following Their Discussions. April 8, 1960 340 112 Message to President Garcia of the Philippines on the Occasion of Bataan Day. April 8, 1960 342 II13 Veto of Bill for Relief of William J. Kaiser. April ii, 1960 343 II4 Veto of Bill for Relief of Mrs. Virginia Bond. April iI, 1960 344 II5 Letter to the Co-Chairmen of the Joint Federal-State Action Committee on Receiving the Committee's Final Report. April 12, 1960 345 116 Letter to the Governors Concerning Assumption by the States of Regulatory Functions Relating to Atomic Energy. April 12, 1960 346 xx List of Items Page II7 Statement by the President Upon Making Public the Second Interim Report of the Cabinet Committee on Price Stability for Economic Growth. April I7, I960 347 18 Letter to the Administrator of General Services Offering the President's Papers and Other Documentary Materials as a Gift to the United States. April 19, 1960 348 II9 Message to President Kubitschek of Brazil on the Occasion of the Inauguration of the New Capital, Brasilia. April 21, I960 352 120 Remarks of Welcome to President de Gaulle of France at the Washington National Airport. April 22, I960 353 I21 Toasts of the President and President de Gaulle. April 22, 1960 354 122 Message to President Betancourt on the Occasion of the Sesquicentennial of Venezuela's Independence. April 23, 1960 356 123 Remarks to Members of the National 4-H Conference. April 25, 1960 356 I24 Toast by the President at a Dinner Given in His Honor by President de Gaulle. April 25, 1960 358 I25 Joint Statement Following Discussions With President de Gaulle. April 25, I960 ' 359 126 Exchange of Messages Between the President and the Shah of Iran on the Lar Earthquake Disaster. April 27, 1960 360 127 The President's News Conference of April 27, 1960 360 128 Remarks of Welcome to the King and Queen of Nepal at the Washington National Airport. April 27, 1960 37I 129 Toasts of the President and King Mahendra of Nepal. April 27, 1960 372 I30 Joint Statement Following Discussions With King Mahendra. April 28, 196 373 I31 Remarks at the Annual Meeting of the U.S. Chamber of Commerce. May 2, I960 374 XXI List of Items Page 132 Address at a Dinner Sponsored by the Committee for International Economic Growth and the Committee To Strengthen the Frontiers of Freedom. May 2, 1960 378 133 Special Message to the Congress on the Legislative Program. May 3, 1960 385 134 Statement by the President on the Occasion of the Centennial of the First Japanese Diplomatic Mission to the United States. May 3, 1960 394 135 Remarks at Fort Benning, Georgia, After Watching a Demonstration of New Army Equipment. May 3, 1960 395 136 Statement by the President Upon Signing "Food for Peace" Agreement Between the United States and India. May 4, 1 960 396 137 Statement by the President Upon Signing the Civil Rights Act of 1960. May 6, 1960 398 138 Exchange of Messages Between the President and Queen Juliana Upon Completion of the Monument Presented by the People of the Netherlands. May 6, 1960 399 139 Remarks at the Opening of the 1960 AFL-CIO UnionIndustries Show. May 6, 1960 399 140 Statement by the President Announcing the Forthcoming Visit of the Crown Prince and Princess of Japan. May 7, 1960 401 I 4I Letter to Syngman Rhee Upon His Withdrawal From Political Life in Korea. May 9, 1 960 401 142 Citation Accompanying Award of Legion of Merit to Captain Edward L. Beach, USN. May io, 1960 402 143 The President's News Conference of May I I, 1960 403 --- Statement by the President Concerning the U-2 Incident 403 1 44 Statement by the President on the Death of John D. Rockefeller, Jr. May 1 2, 1960 415 145 Remarks to the Members of the American Helicopter Society. May 12, 1960 415 XXII List of Items Page I46 Veto of the Area Redevelopment Bill. May I3, i96o 417 147 Remarks Upon Arrival at Orly Airport in Paris. May I5, I960 420 I48 Statement by the President Upon Signing the Mutual Security Act of i960. May i6, 1960 421 I49 Message to the Congress Transmitting the Civil Service Commission's First Report Under the Government Employees Training Act. May I6, 1960 422 150 Veto of Bill for Relief of Universal Trades, Inc. May i6, I960 423 151 Veto of Bill Relating to the Income Tax Treatment of Nonrefundable Capital Contributions to Federal National Mortgage Association. May i6, 1960 424 I52 Special Message to the Congress Concerning the Proposed Freedom Monument. May i6, 1960 425 153 Memorandum to Federal Agencies on the United Givers Fund Campaign in the National Capital Area. May I6, i960 426 154 Statement by the President Concerning the Position Taken by Chairman Khrushchev at the Opening of the Summit Conference. May I6, 1960 427 I55 Joint Statement With President de Gaulle and Prime Minister Macmillan Concerning the Summit Conference. May 17, I960 429 I56 Remarks at Orly Airport, Paris, Before Leaving for Lisbon. May I9, 1960 430 157 Remarks Upon Arrival at Portela Airport, Lisbon. May I9, I960 430 I 58 Remarks to the Staff of the U.S. Embassy and the American Community in Lisbon. May 19, 1960 43 159 Toast by the President at a Luncheon Given in His Honor by President Thomaz at Ajuda Palace. May 19, 1960 433 XXIII List of Items Page i 60 Toast by the President at a Dinner Given in Honor of President Thomaz at Queluz Palace. May i9, 1960 433 161 Remarks at Portela Airport, Lisbon, Before Leaving for Washington. May 20, 1960 435 162 Remarks Upon Arrival at Andrews Air Force Base. May 20, 1960 435 163 Radio and Television Report to the American People on the Events in Paris. May 25, 1960 437 164 Remarks of Welcome to the Delegates of SEATO at a Luncheon Given in Their Honor at the White House. May 31, 1960 446 i65 Remarks to the Delegates to the Second Conference of Young Political Leaders From North Atlantic Treaty Countries. June I, 1960 447 166 Remarks at a Dinner Commemorating the both Anniversary of the Boy Scouts of America. June i, 1960 450 167 Letter to Senator Bennett on the Need for Legislation Authorizing the President To Make Adjustments in Sugar Quotas. June 2, 1960 452 i68 Statement by the President Upon Signing Bill Relating to the San Luis Unit of the Central Valley Project, California. June 3, 1960 453 169 Veto of Bill Concerning Unlimited Income Tax Deductions for Certain Contributions to Charity. June 3, 1960 454 170 Veto of Bill Relating to Unemployment Tax Credits of Successor Employers. June 3, 1960 455 I7i Toasts of the President and Prime Minister Diefenbaker of Canada. June 3, 1960 456 172 Joint Statement Following Discussions With the Prime Minister of Canada. June 4, 1960 458 173 Remarks at a Testimonial Dinner in Honor of Representative St. George, Bear Mountain State Park, New York. June 4, 1960 459 XXIV List of Items Page 174 Address "Beyond the Campus" Delivered at the Commencement Exercises of the University of Notre Dame. June 5, I960 461 I75 Exchange of Messages Between the President and President Alessandri Concerning the Disaster in Chile. June 8, I960 467 176 Letter to Governor Underwood of West Virginia on Further Federal Activities in Aid of Chronic Labor Surplus Areas. June 12, 1960 469 I77 Statement by the President Recorded Before Leaving for the Far East. June 12, I960 470 178 Remarks Upon Arrival at Elmendorf Air Force Base, Anchorage, Alaska. June 12, 1960 472 179 Veto of Bill for the Relief of Our Lady of the Lake Church, Mandeville, Louisiana. June 13, I960 474 I8o Veto of Bill Concerning the Defense of Suits Against Federal Employees Operating Government Motor Vehicles. June I3, I960 475 i81 Veto of Bill for the Relief of Grand Lodge of North Dakota, Ancient Free and Accepted Masons. June 13, I960 476 182 Remarks Upon Arrival at the International Airport in Manila. June I4, 1960 477 183 Address Before a Joint Session of the Philippine Senate and House of Representatives. June 15, I960 478 I84 Remarks to the Staff of the U.S. Embassy and the American Community in Manila. June I5, I960 485 I85 Toast by the President at a Dinner Given in His Honor by President Garcia. June I5, I960 486 186 Remarks at the University of the Philippines Upon Receiving an Honorary Degree. June 16, i960 489 I87 Remarks at a Luncheon Given by the Chamber of Commerce in Manila. June I6, I960 492 XXV List of Items Page I88 Remarks at a Civic Reception at the Luneta in Manila. June I6, I960 495 I89 Joint Statement Following Discussions With President Garcia. June I6, I960 499 I90 Remarks in Manila Before Leaving for Taipei. June I6, I960 502 191 Remarks to the Officers and Men of the 7th Fleet. June i 8, 1960 502 i92 Remarks Upon Arrival at the Sungshan Airport, Taipei. June I8, I960 503 I93 Address at a Mass Rally in Taipei. June I8, i960 504 194 Toast by the President at a Dinner Given in His Honor by President Chiang Kai-shek. June I8, I960 5o8 I95 Joint Statement Following Discussions With President Chiang Kai-shek. June I9, I960 509 I96 Remarks at the Sungshan Airport, Taipei, Upon Leaving for Okinawa. June 19, 1960 5 I I 197 Remarks Upon Arrival at Kadena Air Force Base, Okinawa. June I9, I960 512 I98 Remarks Upon Arrival at Kimpo International Airport in Seoul. June I9, 1960 5 I2 199 Remarks to the American Community in Seoul. June 20, i960 5I3 2oo Toast by the President at a Luncheon Given in His Honor by Prime Minister Huh Chung of Korea. June 20, I960 516 20o Address Before the National Assembly of Korea. June 20, I960 517 202 Remarks at the Headquarters of the Korean Army's Sixth Corps. June 20, i960 520 203 Joint Statement Following Discussions With Prime Minister Huh Chung. June 20, I960 521 XXVI List of Items Page 204 Remarks in Seoul Upon Leaving for Honolulu. June 20, 1 960 523 205 Remarks Upon Arrival at the Honolulu International Airport. June 20, 1960 524 206 Remarks at Hickam Air Force Base, Honolulu, Upon Leaving for Washington. June 25, 1960 525 207 Message to President Tsiranana on the Occasion of the Independence of the Malagasy Republic. June 26, 1960 526 208 Remarks Recorded for the Governors' Conference at Glacier National Park, Montana. June 27, 1960 526 209og Radio and Television Report to the American People on the Trip to the Far East. June 27, 1960 529 210 Memorandum to Federal Agencies on the United Fund and Community Chest Campaigns. June 28, 1960 536 211 Remarks of Welcome to the King and Queen of Thailand at the Washington National Airport. June 28, 1960 537 212 Citation Accompanying Legion of Merit, Degree of Chief Commander, Presented to the King of Thailand. June 28, 1 960 538 213 Toasts of the President and the King of Thailand. June 28, I 960 539 214 Letter to the President of the American Red Cross on the Nation's Voluntary Disaster Relief in Chile. June 29, 1960 541 215 Remarks at the AFL-CIO Testimonial Dinner in Honor of Secretary of Labor James P. Mitchell. June 29, 1960 542 216 Message to President Kasavubu on the Occasion of the Independence of the Republic of the Congo. June 30, 1960 544 217 Veto of a Bill To Increase the Salaries of Federal Employees. June 30, 1960 544 218 Joint Statement Following Discussions With the King of Thailand. July i, 1960 548 XXVII List of Items Page 219 Message to President Osman on the Occasion of the Independence of the Somali Republic. July I, I960 550 220 Message to President Nkrumah on the Occasion of the Accession of Ghana to the Status of Republic. July I, 1960 551 221 Statement by the President on the United Nations FreedomFrom-Hunger Campaign. July I, I960 551 222 The President's News Conference of July 6, I960 552 223 Statement by the President Upon Signing Bill and Proclamation Relating to the Cuban Sugar Quota. July 6, 960 562 224 Memorandum of Disapproval of Bill for Relief of Juan D. Quintos and Others. July 7, I960 563 225 Memorandum of Disapproval of Bill To Provide for the Economic Regulation of the Alaska Railroad Under the Interstate Commerce Act. July 7, I960 565 226 Memorandum of Disapproval of Bill for Relief of Sam J. Buzzanca. July 7, I960 566 227 Statement by the President Concerning Premier Khrushchev's Announcement of Support for the Castro Regime in Cuba. July 9, I960 567 228 The President's News Conference at Newport, Rhode Island. July I, I960 568 --- Statement by the President Pledging U.S. Cooperation To Strengthen the Framework of Freedom Through Social and Economic Progress in the Americas 568 229 Statement by the President Upon Signing the Independent Offices Appropriation Act. July 12, 1960 575 230 Memorandum of Disapproval of Bill Concerning Wage Rates at the Portsmouth Naval Shipyard. July 12, I960 576 23I Statement by the President on the Downing of an RB-47 Plane by the U.S.S.R. July 13, 1960 578 232 Telegram to Senator Mansfield Welcoming a Security Council Discussion of the RB-47 Plane Incident. July I3, I960 578 XXVIII List of Items Page 233 Statement by the President Upon Signing Bill Providing for the Admission of Refugees. July 4, i960 579 234 Memorandum of Disapproval of Bill for the Relief of Margaret P. Copin. July 14, I960 580 235 Memorandum of Disapproval of Bill Relating to Payments to Bernalillo County, New Mexico, for Care of Indians. July I4, I960 58I 236 Telegrams to Senators Kennedy and Johnson Offering Them Briefings by the Central Intelligence Agency. July i 8, i960 582 237 Statement by the President on the Budget Surplus for Fiscal Year I960. July 20o, I960 583 238 Statement by the President on the Need for an Early Meeting of the Disarmament Commission of the United Nations. July 2I, 1960 583 239 Remarks at the Dedication of Eisenhower Park, Newport, Rhode Island. July 22, I960 584 240 Letter to Dr. Henry M. Wriston on the Progress Made by the Commission on National Goals. July 22, I960 585 24I Letter to Frederick M. Eaton Following the Closing of the Ten-Nation Committee on Disarmament. July 22, I960 586 242 Statement by the President Making Public an Interim Report on the Food-for-Peace Program. July 24, I960 587 243 Letter to the Administrator of General Services Concerning the Design of Proposed Buildings on Lafayette Square. July 25, I960 588 244 Statement by the President Following the Firing of the Polaris Missile by the Submarine Patrick Henry. July 25, I960 589 245 Address at the Republican National Convention in Chicago. July 26, i960 589 246 Remarks at the Republican National Committee Breakfast, Chicago, Illinois. July 27, I960 602 XXIX List of Items Page 247 Statement by the President Concerning a Program for the Development of Peru. July 28, i960 6o6 248 Exchange of Messages Between the President and President Nkrumah on the Airlift of Ghanaian Forces to the Congo. July 3 I, I960 607 249 Message to Prime Minister Maga on the Occasion of the Independence of the Republic of Dahomey. August i, i960 6o8 250 Message to the Students of Korea. August 2, I960 609 251 Message to Prime Minister Diori on the Occasion of the Independence of the Republic of Niger. August 3, I960 6io 252 Exchange of Messages Between the President and Prime Minister Ikeda of Japan. August 4, 1960 6 Ii 253 Message to Prime Minister Yameogo on the Occasion of the Independence of the Republic of Upper Volta. August 5, I 960 6 I 254 Message to Prime Minister Houphouet-Boigny on the Occasion of the Independence of the Republic of the Ivory Coast. August 7, 96o 612 255 Special Message to the Congress Upon Its Reconvening. August 8, 1960 6I2 256 The President's News Conference of August 10, I960 619 --- Statement by the President on the Security Council Resolution on the Congo 619 257 Message to Prime Minister Tombalbaye on the Occasion of the Independence of the Republic of Chad. August i, I960 629 258 Message Recorded for Transmission Via Communication Satellite Echo I. August I2, I960 630 259 Message to Prime Minister Dacko on the Occasion of the Independence of the Central African Republic. August I3, I960 630 260 Message to President Youlou on the Occasion of the Independence of the Republic of Congo. August I5, 1960 631 XXX List of Items Page 261 Remarks Upon Inspection of the Capsule Retrieved From the Satellite Discoverer XIII. August I5, 1960 631 262 Message to President Makarios on the Occasion of the Independence of the Republic of Cyprus. August i6, g1960 633 263 The President's News Conference of August I17, g1960 633 264 Statement by the President on U.S. Achievements in Space. August I 7, 1 960 643 265 Message to President M'ba on the Occasion of the Independence of the Republic of Gabon. August I 7, 1960 644 266 Letter Accepting Resignation of Henry Cabot Lodge as U.S. Representative to the United Nations. August i9, 1 960 645 267 Special Message to the Congress on the Sugar Quota of the Dominican Republic. August 23, 1960 646 268 The President's News Conference of August 24, 1960 647 269 Statement by the President on the 40th Anniversary of the Women's Suffrage Amendment. August 26, 1960 658 270 Statement by the President Concerning Mutual Security Appropriations. August 26, g1960 659 271 Letter to the Majority and Minority Leaders of the Senate on Mutual Security Appropriations. August 26, 1960 66o 272 Letter to the Speaker and to the Minority Leader of the House of Representatives on Mutual Security Appropriations. August 26, 1960 66i 273 Message to President Po Sun Yun of Korea. August 29, 1 960 662 274 Message to Prime Minister Chang Myon of Korea. August 29, 1 960 662 275 Letter to Judge E. Barrett Prettyman Requesting Him To Serve as Chairman of the President's Conference on Administrative Procedure. August 29, 1960 663 276 Remarks at the Assembly Session of the American Bar Association. August 29, 1960 663 XXXI List of Items Page 277 Message to the King of Jordan on the Death of Prime Minister Hazza al-Majali. August 30, g960 667 278 Remarks to a Group of Republican Candidates for Congress. August 31, 1960 667 279 Remarks at the Fifth International Congress on Nutrition. September i, I96o 668 280 Memorandum of Disapproval of Bill Authorizing the Payment of Subsidies to Producers of Lead and Zinc. September 2, I960 671 28I Letter to the Chairman, Civil Aeronautics Board, Concerning International Local Service to Regina, Saskatchewan. September 2, I960 673 282 Statement by the President: Labor Day. September 5, I960 674 283 Remarks at the Dedication of a New Building at the Industrial College of the Armed Forces, Fort McNair. September 6, I960 674 284 The President's News Conference of September 7, I960 677 Statement by the President Concerning Soviet Action in Supplying Aircraft and Other Military Equipment to the Congo 677 285 Memorandum of Disapproval of Bill Concerning the Marking of Imported Articles and Containers. September 7, I960 687 286 Message for the SEATO Day Ceremonies at Bangkok. September 8, I960 688 287 Remarks at the Dedication of the George C. Marshall Space Flight Center, Huntsville, Alabama. September 8, I960 689 288 Memorandum of Disapproval of Bill for the Relief of Raymond Baurkot. September 9, I960 692 289 Memorandum of Disapproval of Bill Amending the Bankruptcy Act. September 9, I960 693 XXXII List of Items Page 290 Remarks at the Opening of the Republican Campaign, Friendship International Airport Near Baltimore. September I2, 1960 694 291 Memorandum of Disapproval of Bill for the Relief of Eric and Ida Mae Hjerpe. September I4, I960 697 292 Memorandum of Disapproval of Bill for the Relief of H. P. Lambert Company, Incorporated, and Southeastern Drilling Corporation. September 14, 1960 698 293 Statement Recorded for the Opening of the United Community Campaigns. September I5, 1960 699 294 Exchange of Letters Between the President and Prime Minister Ikeda of Japan. September I6, I960 699 295 Statement by the President Upon Signing Bill Raising Support Prices for Butterfat and Manufacturing Milk. September i6, 1960 70I 296 Statement by the President Concerning the Attendance of Chiefs of State and Heads of Government at the U.N. General Assembly. September 17, I960 702 297 Statement by the President on the Signing of the Treaty Between Pakistan and India Relating to the Waters of the Indus River. September 19, I960 703 298 Remarks to Members of the American Nationalities for Nixon-Lodge. September 19, I960 704 299 Statement by the President: National Science Youth Month. September 20, 1960 705 300 Statement by the President: The Jewish High Holy Days. September 21, 1960 706 30I Message to the Fourth General Conference of the International Atomic Energy Agency. September 21, 1960 706 302 Address Before the I5th General Assembly of the United Nations, New York City. September 22, I960 707 303 Remarks at a Luncheon for Latin American Delegates to the U.N. General Assembly, New York City. September 22, I960 720 XXXIII 60295-61- 3 List of Items Page 304 Address in Philadelphia Before the American Institute of Certified Public Accountants. September 26, 1960 721 305 Remarks in Philadelphia to a Group of Eisenhower Exchange Fellows. September 26, 1960 725 306 Address at the Golden Jubilee Dinner of the National Conference of Catholic Charities, New York City. September 26, 1960 728 307 Joint Statement Following Meeting With Prime Minister Macmillan To Discuss the Situation Before the United Nations. September 27, 1960 732 308 Toasts of the President and the Crown Prince of Japan. September 27, 1960 733 309 Address in Chicago at the 1 960 Victory Fund Dinner Rally. September 29, 1960 734 310 Remarks at the Polish-American Congress in Chicago. September 30, 1960 737 311 Message to the People of the Federation of Nigeria on the Occasion of Their Independence. October i, 1960 741 312 Joint Statement Following Meeting With Prime Minister Macmillan and Prime Minister Menzies. October 2, 1960 742 313 Letter in Reply to a Proposal for a Meeting of the President and Chairman Khrushchev. October 2, 1960 742 314 Remarks to the 67th Annual Conference of the International Association of Chiefs of Police. October 4, 1960 745 315 Remarks to a Group of Engineers From India Upon Completion of a Training Program in the United States. October 5, 1 960 747 316 Letter to Secretary Mitchell on Receiving Report on the Effectiveness of the Labor-Management Act. October 7, 1 960 749 317 Toasts of the President and Prince Albert of Belgium. October 7, 1960 750 XXXIV List of Items Page 318 Remarks to Regional Office and Hospital Managers of the Veterans Administration. October 8, 1960 751 319 Remarks to Participants in the International Field Hockey Festival. October ii, 1960 753 320 Remarks of Welcome to the King and Queen of Denmark at the Washington National Airport. October i I, i960 755 321 Toasts of the President and King Frederik of Denmark. October i i, 1960 756 322 Statement by the President Upon Receiving Fifth Annual Report on the Rural Development Program. October I3, I96o 759 323 Statement by the President: National Newspaper Week. October 14, 1960 760 324 Remarks to the Heads of U.N. Delegations From New African Nations and Cyprus. October 14, 1960 760 325 Remarks at the Tree-Planting Ceremony at the White House on the President's 70th Birthday. October 14, 1960 763 326 Remarks at the City-County Building in Detroit. October 1 7, 1 960 765 327 Remarks in Detroit to a Group of Business and Professional Women. October I7, g1960 766 328 Address in Detroit at the National Automobile Show Industry Dinner. October 1 7, 1 960 769 329 Remarks at a Republican Rally at the Minneapolis-St. Paul International Airport. October i8, 1960 778 330 Remarks at the Dedication of the Hiawatha Bridge, Red Wing, Minnesota. October i 8, 1960 780 331 Statement by the President Concerning the Agreement With Canada on the Water Resources of the Columbia River Basin. October 19, 1960 784 332 Address in San Francisco to the Commonwealth Club of California. October 20, 1960 784 xxxv List of Items Page 333 Remarks in San Diego Before the Inter-American Congress of Municipalities. October 2I, i960 793 334 Remarks Broadcast to the Mexican People, Ciudad Acunfia, Mexico. October 24, I960 796 335 Joint Declaration by the President and President Lopez Mateos Concerning the Construction of Amistad Dam. October 24, I960 797 336 Address in Houston Before the Faculty and Students of Rice University. October 24, i960 798 337 Telegram Accepting Invitation To Address a Rally of the Nixon for President Committee of Pennsylvania. October 25, i960 8o6 338 Message to President Diem on the Fifth Anniversary of the Independence of Viet-Nam. October 26, I960 807 339 Toasts of the President and the Prime Minister of Malaya. October 26, 1960 8o8 340 Address at Ceremonies Honoring the Memory of Woodrow Wilson, Staunton, Virginia. October 27, I960 8io 341 Address in Philadelphia at a Rally of the Nixon for President Committee of Pennsylvania. October 28, I960 815 342 Statement by the President Regarding the U.S. Naval Base at Guantanamo, Cuba. November i, i960 822 343 Statement by the President Concerning the Agreement Reached in the Railway Industry. November i, 1960 822 344 Remarks Recorded for a Telecast Sponsored by the Independent Television Committee for Nixon and Lodge. November i, I960 823 345 Remarks at a Rally in Garden City, New York. November 2, 1960 824 346 Remarks in New York at a Rally at the Westchester County Airport. November 2, I960 826 347 Remarks at a Rally in Herald Square, New York City. November 2, 1960 829 XXXVI List of Items Page 348 Address at a Republican Rally in the New York Coliseum. November 2, 1960 83I 349 Letter to Dr. Milton S. Eisenhower on the Occasion of His Resignation From Two Advisory Committees. November 3, I960 834 350 Address in Cleveland at a Rally in the Public Square. November 4, I96o 836 35i Remarks at a Republican Men's Luncheon in Cleveland. November 4, I960 84I 352 Remarks in Cleveland at a Reception of Republican Women. November 4, I960 843 353 Remarks Upon Arrival in Pittsburgh. November 4, I960 845 354 Address in Pittsburgh at a Dinner Sponsored by the Allegheny County Republican Executive Committee. November 4, I960 846 355 Radio and Television Remarks on Election Eve. November 7, I960 852 356 Telegrams of Congratulations to the President- and Vice President-Elect. November 9, I960 857 357 Telegrams to Vice President Nixon and to Henry Cabot Lodge. November 9, I96o 857 358 Letter to Secretary Mueller Concerning Participation in the New York World's Fair of I964-65. November I2, I960 858 359 Exchange of Messages Between the President and President Garcia on the Occasion of Philippine-American Day. November I4, 1960 859 360 Statement by the President on the Entrance Into Sea Duty of the Polaris Submarine George Washington. November 15, I960 86o 361 Letter to Dr. Nnamdi Azikiwe on the Occasion of His Investiture as Governor General of the Federation of Nigeria. November I6, I960 86o XXXVII List of Items Page 362 The President's News Conference at Augusta, Georgia. November i6, 1960 86i 363 Statement by the President on Making Public a Report by the Science Advisory Committee. November 20, g1960 866 364 Exchange of Messages Between the President and President Toure of Guinea Regarding U.S. Policy Toward the Congo. November 26, 1960 867 365 Statement by the President Upon Completion of the Mission of Secretary Anderson and Under Secretary Dillon to West Germany. November 28, g1960 868 366 Exchange of Messages Between the President and Prime Minister Ikeda on the Election in Japan. November 28, 1 960 870 367 Exchange of Messages Between the President and Prime Minister Nash of New Zealand. November 30, g1960 870 368 Exchange of Messages Between the President and President Ydigoras Fuentes on U.S. Naval Aid to Guatemala. December 2, 1960 871 369 Joint Statement by the President and President-Elect Kennedy. December 6, 1960 872 370 Proclamation 3382: Civil War Centennial. December 7, 1 960 873 371 Letter to Cardinal Spellman Concerning Aid to Cuban Refugees. December 9, i960 875 372 Statement by the President on the Death of Meyer Kestnbaum. December 14, 1960 875 373 Exchange of Messages Between the President and Prime Minister Holyoake of New Zealand. December i6, 1960 876 374 Statement by the President Upon Issuing Proclamation Fixing the Cuban Sugar Quota at Zero. December i6, g1960 877 375 Citation Accompanying the National Security Medal Presented to Robert Murphy. December 19, 1960 878 XXXVIIi List of Items Page 376 Letter to Secretary Mueller Concerning U.S. Participation in the New York World's Fair of 1964-65. December 20, g1960 878 377 Presidential Citation Honoring James Forbis Brownlee. December 21, 1960 879 378 Statement by the President on Appointing the Presidential Railroad Commission. December 22, 1960 88o 379 Message to President Kubitschek on the Occasion of the Ceremonies in Brazil Honoring the Dead of World War II. December 22, 1960 88o 380 The President's Certification as to His Forbidding Disclosure to Congress of Certain Documents Relating to Aid to South American Countries. December 23, 1960 88x 381 Remarks at the Pageant of Peace Ceremonies. December 23, 1960 884 382 Memorandum to the Secretary of the Army on the Operation of Steamships by the Panama Canal Company. December 24, 1960 885 383 Statement by the President Upon Issuing Proclamation Relating to Petroleum Imports. December 24, 1960 886 384 Letter Accepting Resignation of Leo A. Hoegh as Director, Office of Civil and Defense Mobilization. December 30, 1 960 887 385 Letter Accepting Resignation of Arthur E. Summerfield as Postmaster General. January I, 1961 888 386 Statement by the President Concerning Commercial Use of Communication Satellites. January I, 1961 889 387 Letter Accepting Resignation of Frederick H. Mueller as Secretary of Commerce. January 2, 1961 890 388 Statement by the President on Terminating Diplomatic Relations With Cuba. January 3, 1 961 891 XXXIX List of Items Page 389 Statement by the President Following Announcement of Recipients of the President's Award for Distinguished Federal Civilian Service. January 3, 1961 892 390 Message to Tuanku Syed Putra, Paramount Ruler of the Federation of Malaya. January 4, 1961 893 391 Letter Accepting Resignation of Ezra Taft Benson as Secretary of Agriculture. January 5, 1961 893 392 Statement by the President: The Centennial of the American Civil War. January 5, I961 894 393 Letter to Alan T. Waterman on Receiving Report of the National Science Foundation. January 6, 1961 895 394 Letter to Archibald J. Carey, Jr., Regarding Report of the President's Committee on Government Employment Policy. January 6, 1961 896 395 Remarks at a Luncheon Honoring the President Given by the Republican National Committee. January 6, 1961 897 396 Remarks at Troop Review Ceremonies, Fort Gordon, Georgia. January 7, I96I 898 397 Letter Accepting Resignation of Thomas S. Gates as Secretary of Defense. January 8, 1961 899 398 Remarks at Opening Session of the White House Conference on Aging. January 9, 1961 900 399 Message to General Cemal Gursel on the Occasion of the Opening of the Turkish Constituent Assembly. January 9, 196I 901 400 Letter Accepting Resignation of George B. Kistiakowsky as Special Assistant to the President for Science and Technology. January 9, 1961 902 40I Letter Accepting Resignation of James P. Mitchell as Secretary of Labor. January 9, 1961 903 402 Letter Accepting Resignation of Fred A. Seaton as Secretary of the Interior. January 9, 1961 903 XL List of Items Page 403 Remarks at the Vice President's Birthday Party. January 9, 1961 904 404 Remarks Upon Receiving the Big Brother of the Year Award. January i 0, 1 961 905 405 Remarks Upon Receiving the Hoover Medal Award. January I 0, 1 961 906 406 Letter Accepting Resignation of Maurice H. Stans as Director, Bureau of the Budget. January i i, 1961 909 407 Statement by the President on Receiving Report of the President's Committee on Government Contracts. January II, 1961 910 408 Memorandum Concerning the International Phase of the Large Irregular Air Carrier Investigation. January 12, 1961 9II 409 Letter Accepting Resignation of Christian A. Herter as Secretary of State. January 1 2, 1 961 9 12 410 Annual Message to the Congress on the State of the Union. January 12, 1961 913 4" Letter Accepting Resignation of William P. Rogers as Attorney General. January 13, 1961 931 412 Letter Accepting Resignation of Gordon Gray as Special Assistant to the President for National Security Affairs. January 1 3, 1 961 932 413 Letter Accepting Resignation of Arthur S. Flemming as Secretary of Health, Education, and Welfare. January I5, i96i 933 414 Annual Budget Message to the Congress: Fiscal Year 1962. January i6, 1961 934 415 Letter Accepting Resignation of Robert B. Anderson as Secretary of the Treasury. January 1 6, 1 961 1 028 416 Remarks at the Signing of the Columbia River Basin Treaty With Canada. January 17, 1961 1029 60295-61-4 XLI List of Items Page 41 I7 Citation Presented to General Melvin J. Maas. January I 7, 1961 1030 418 Statement by the President on the Sugar Act. January I 7, 1961 1031 419 Special Message to the Senate Transmitting the Columbia River Basin Treaty With Canada. January I7, 1961 1032 420 Special Message to the Congress Transmitting Agreement With Italy for Cooperation on Uses of Atomic Energy for Mutual Defense. January 17, 1i961 1034 421 Farewell Radio and Television Address to the American People. January 17, 1961 1035 422 The President's News Conference of January 1 8, 1961 1040 423 Annual Message Presenting the Economic Report to the Congress. January i8, 1961 1050 424 Message to the Congress Transmitting the Third Annual Report on U.S. Aeronautics and Space Activities. January i8, 1961 1053 425 Citation Accompanying the Medal of Freedom Presented to James H. Douglas. January i8, 1961 1054 426 Citation Accompanying the Medal of Freedom Presented to Thomas S. Gates. January i8, 1961 1055 427 Citation Accompanying the Medal of Freedom Presented to Gordon Gray. January i8,i 1961 1056 428 Citation Accompanying the Medal of Freedom Presented to Christian A. Herter. January i 8, 1961 1057 429 Citation Accompanying the Medal of Freedom Presented to George B. Kistiakowsky. January i 8, 1961 Io058 430 Citation Accompanying the Medal of Freedom Presented to General Andrew J. Goodpaster. January 18, 1961 1059 431 Statement by the President on Releasing a Report on Cuban Refugee Problems. January i 8, 1961 I 059 XLII List of Items Page 432 Statement by the President Upon Signing Proclamation Modifying Petroleum Import Control Program. January 18, 1961 Io6o 433 Letter to Arthur S. Flemming Concerning the President's Advisory Committee on Government Organization. January I8, 1961 Io6I 434 Letter to Secretary Gates Concerning the Effect of the President's Directive on Balance of Payments. January 18, 1961 1o62 435 Letter to the Director, Bureau of the Budget, Upon Receiving Reports on Government Operations. January 19, 1961 Io63 436 Memorandum Concerning the Trans-Pacific Route Case. January 19, 1961 1064 XLIII Dwight D. Eisenhower I960-6I I (I Letter to the Attorney General on Receiving His Report on Deceptive Practices in Broadcasting Media. January i, I960 [ Released January I, 1960. Dated December 31, I959 ] Dear Mr. Attorney General: Thank you for the informative report relating to deceptive practices in broadcasting media which you prepared at my request and submitted to me on December 30, 1959. The report indicates that there may be further developments and that the governmental bodies concerned have not completed all of the action which they may be considering. I would therefore appreciate it if you continued to follow the matter for me. Please advise me of developments and report your recommendations from time to time as you consider it appropriate. Sincerely, DWIGHT D. EISENHOWER NOTE: "The Report to the President by tices in Broadcasting Media" was pubthe Attorney General on Deceptive Prac- lished by the Government Printing Office (54 PP., 1959). 2 tI Exchange of New Year Greetings Between the United States and the Soviet Union. January 4, I960 Nikita S. Khrushchev Chairman, Council of Ministers, U.S.S.R. Kliment Efremovich Voroshilov Chairman, Presidium of the Supreme Soviet, U.S.S.R. On behalf of the American people, I thank you for your kind New Year's message. I share the hope which you have expressed for a further improvement in the relations between our two countries. The QI 2 Public Papers of the Presidents United States seeks the achievement of a just and lasting peace in a world where all questions are settled by peaceful means alone. I can assure you that my Government will continue its best efforts to reach that goal. Please accept my good wishes for you and your families and the people of the Soviet Union for the coming year. DWIGHT D. EISENHOWER NOTE: The message from Mr. Khrushchev and Mr. Voroshilov follows: On the eve of the New Year we send to you, Mr. President, and to the people of the United States of America sincere greetings and best wishes from the peoples of the Soviet Union and from ourselves personally. It is possible to note with deep satisfaction that in the past year there were undertaken joint efforts in the search of ways for closer relations of our States, for ensurance of such a situation in which the unresolved international questions would be decided by peaceful means only. Entering the New Year, we would like to hope sincerely that these joint efforts will guarantee a new triumph of reason, and that a start will be made to solve the most important problem of our times-the general and complete disarmament and the liberation of mankind from the burden of armament. Let this New Year be the year of a further improvement in the relations between our countries. The realization of this hope which is so dear to the hearts of both the Soviet and American peoples would undoubtedly bring nearer the time when, thanks to the efforts of both countries, the relations between them could be built on the foundation of enduring friendship and mutually advantageous cooperation for the good of our nations, for the good of peace in the entire world. It is exactly in this way that we evaluate the meaning of exchange visits by the leading statesmen of both countries. These meetings make it possible to ensure that historical turning point in the relations between our countries, as well as in the international situation as a whole, which leads to the deliverance of all people from the dread of a new war. With best wishes for happiness and health to you personally and to your entire family. N. KHRUSHCHEV K. VOROSHILOV The messages were released at Augusta, Ga. 3 4J Statement by the President on the Death of Representative Simpson of Pennsylvania. January 7, 1960 IT IS with profound regret that I have learned this morning of the passing of Representative Richard M. Simpson, a veteran and distinguished legislator who for many years has courageously and conscientiously served his District, the Nation and the Republican Party. Mrs. Eisenhower and I join Americans all across the country in extending deepest sympathy to his family. His passing is a grievous loss to our nation, and a personal loss to me. 2 Dwight D. Eisenhower, 1960 NOTE: Representative Simpson had served as chairman of the House Republican Congressional Committee since I953. 4 e Annual Message to the Congress on the State of the Union. January 7, i960 [ Delivered in person before a joint session] Mr. President, Mr. Speaker, Members of the 86th Congress: Seven years ago I entered my present office with one long-held resolve overriding all others. I was then, and remain now, determined that the United States shall become an ever more potent resource for the cause of peace-realizing that peace cannot be for ourselves alone, but for peoples everywhere. This determination is shared by the entire Congress-indeed, by all Americans. My purpose today is to discuss some features of America's position, both at home and in her relations to others. First, I point out that for us, annual self-examination is made a definite necessity by the fact that we now live in a divided world of uneasy equilibrium, with our side committed to its own protection and against aggression by the other. With both sides of this divided world in possession of unbelievably destructive weapons, mankind approaches a state where mutual annihilation becomes a possibility. No other fact of today's world equals this in importance-it colors everything we say, plan, and do. There is demanded of us, vigilance, determination, and the dedication of whatever portion of our resources that will provide adequate security, especially a real deterrent to aggression. These things we are doing. All these facts emphasize the importance of striving incessantly for a just peace. Only through the strengthening of the spiritual, intellectual, economic and defensive resources of the Free World can we, in confidence, make progress toward this goal. Second, we note that recent Soviet deportment and pronouncements suggest the possible opening of a somewhat less strained period in the relationships between the Soviet Union and the Free World. If these pronouncements be genuine, there is brighter hope of diminishing the 3 Public Papers of the Presidents intensity of past rivalry and eventually of substituting persuasion for coercion. Whether this is to become an era of lasting promise remains to be tested by actions. Third, we now stand in the vestibule of a vast new technological ageone that, despite its capacity for human destruction, has an equal capacity to make poverty and human misery obsolete. If our efforts are wisely directed-and if our unremitting efforts for dependable peace begin to attain some success-we can surely become participants in creating an age characterized by justice and rising levels of human well-being. Over the past year the Soviet Union has expressed an interest in measures to reduce the common peril of war. While neither we nor any other Free World nation can permit ourselves to be misled by pleasant promises until they are tested by performance, yet we approach this apparently new opportunity with the utmost seriousness. We must strive to break the calamitous cycle of frustrations and crises which, if unchecked, could spiral into nuclear disaster; the ultimate insanity. Though the need for dependable agreements to assure against resort to force in settling disputes is apparent to both sides yet as in other issues dividing men and nations, we cannot expect sudden and revolutionary results. But we must find some place to begin. One obvious road on which to make a useful start is in the widening of communication between our two peoples. In this field there are, both sides willing, countless opportunities-most of them well known to us all-for developing mutual understanding, the true foundation of peace. Another avenue may be through the reopening, on January twelfth, of negotiations looking to a controlled ban on the testing of nuclear weapons. Unfortunately, the closing statement from the Soviet scientists who met with our scientists at Geneva in an unsuccessful effort to develop an agreed basis for a test ban, gives the clear impression that their conclusions have been politically guided. Those of the British and American scientific representatives are their own freely-formed, individual and collective opinion. I am hopeful that as new negotiations begin, truth-not political opportunism-will be the guiding light of the deliberations. Still another avenue may be found in the field of disarmament, in which the Soviets have professed a readiness to negotiate seriously. They have not, however, made clear the plans they may have, if any, for mutual 4 Dwight D. Eisenhower, i960 inspection and verification-the essential condition for any extensive measure of disarmament. There is one instance where our initiative for peace has recently been successful. A multi-lateral treaty signed last month provides for the exclusively peaceful use of Antarctica, assured by a system of inspection. It provides for free and cooperative scientific research in that continent, and prohibits nuclear explosions there pending general international agreement on the subject. The Treaty is a significant contribution toward peace, international cooperation, and the advancement of science. I shall transmit its text to the Senate for consideration and approval in the near future. The United States is always ready to participate with the Soviet Union in serious discussion of these or any other subjects that may lead to peace with justice. Certainly it is not necessary to repeat that the United States has no intention of interfering in the internal affairs of any nation; likewise we reject any attempt to impose its system on us or on other peoples by force or subversion. This concern for the freedom of other peoples is the intellectual and spiritual cement which has allied us with more than forty other nations in a common defense effort. Not for a moment do we forget that our own fate is firmly fastened to that of these countries; we will not act in any way which would jeopardize our solemn commitments to them. We and our friends are, of course, concerned with self-defense. Growing out of this concern is the realization that all people of the Free World have a great stake in the progress, in freedom, of the uncommitted and newly emerging nations. These peoples, desperately hoping to lift themselves to decent levels of living must not, by our neglect, be forced to seek help from, and finally become virtual satellites of, those who proclaim their hostility to freedom. Their natural desire for a better life must not be frustrated by withholding from them necessary technical and investment assistance. This is a problem to be solved not by America alone, but also by every nation cherishing the same ideals and in position to provide help. In recent years America's partners and friends in Western Europe and Japan have made great economic progress. Their newly found economic 5 Public Papers of the Presidents strength is eloquent testimony to the striking success of the policies of economic cooperation which we and they have pursued. The international economy of I960 is markedly different from that of the early postwar years. No longer is the United States the only major industrial country capable of providing substantial amounts of the resources so urgently needed in the newly-developing countries. To remain secure and prosperous themselves, wealthy nations must extend the kind of cooperation to the less fortunate members that will inspire hope, confidence and progress. A rich nation can for a time, without noticeable damage to itself, pursue a course of self-indulgence, making its single goal the material ease and comfort of its own citizensthus repudiating its own spiritual and material stake in a peaceful and prosperous society of nations. But the enmities it will incur, the isolation into which it will descend, and the internal moral and physical softness that will be engendered, will, in the long term, bring it to disaster. America did not become great through softness and self-indulgence. Her miraculous progress and achievements flow from other qualities far more worthy and substantial-adherence to principles and methods consonant with our religious philosophy -a satisfaction in hard work -the readiness to sacrifice for worthwhile causes -the courage to meet every challenge to her progress -the intellectual honesty and capacity to recognize the true path of her own best interests. To us and to every nation of the Free World, rich or poor, these qualities are necessary today as never before if we are to march together to greater security, prosperity and peace. I believe the industrial countries are ready to participate actively in supplementing the efforts of the developing countries to achieve progress. The immediate need for this kind of cooperation is underscored by the strain in our international balance of payments. Our surplus from foreign business transactions has in recent years fallen substantially short of the expenditures we make abroad to maintain our military establishments overseas, to finance private investment, and to provide assistance to the less developed nations. In I959 our deficit in balance of payments approached $4 billion. Continuing deficits of anything like this magnitude would, over time, 6 Dwight D. Eisenhower, i960 (f 4 impair our own economic growth and check the forward progress of the Free World. We must meet this situation by promoting a rising volume of exports and world trade. Further, we must induce all industrialized nations of the Free World to work together in a new cooperative endeavor to help lift the scourge of poverty from less fortunate nations. This will provide for better sharing of this burden and for still further profitable trade. New nations, and others struggling with the problems of development, will progress only if they demonstrate faith in their own destiny and possess the will and use their own resources to fulfill it. Moreover, progress in a national transformation can be only gradually earned; there is no easy and quick way to follow from the oxcart to the jet plane. But, just as we drew on Europe for assistance in our earlier years, so now do those new and emerging nations that have this faith and determination deserve help. Over the last fifteen years, twenty nations have gained political independence. Others are doing so each year. Most of them are woefully lacking in technical capacity and in investment capital; without Free World support in these matters they cannot effectively progress in freedom. Respecting their need, one of the major focal points of our concern is the South Asian region. Here, in two nations alone, are almost five hundred million people, all working, and working hard, to raise their standards, and in doing so, to make of themselves a strong bulwark against the spread of an ideology that would destroy liberty. I cannot express to you the depth of my conviction that, in our own and Free World interests, we must cooperate with others to help these people achieve their legitimate ambitions, as expressed in their different multi-year plans. Through the World Bank and other instrumentalities, as well as through individual action by every nation in position to help, we must squarely face this titanic challenge. All of us must realize, of course, that development in freedom by the newly emerging nations, is no mere matter of obtaining outside financial assistance. An indispensable element in this process is a strong and continuing determination on the part of these nations to exercise the national discipline necessary for any sustained development period. These qualities of determination are particularly essential because of the fact that the process of improvement will necessarily be gradual and laborious 7 Public Papers of the Presidents rather than revolutionary. Moreover, everyone should be aware that the development process is no short term phenomenon. Many years are required for even the most favorably situated countries. I shall continue to urge the American people, in the interests of their own security, prosperity and peace, to make sure that their own part of this great project be amply and cheerfully supported. Free World decisions in this matter may spell the difference between world disaster and world progress in freedom. Other countries, some of which I visited last month, have similar needs. A common meeting ground is desirable for those nations which are prepared to assist in the development effort. During the past year I have discussed this matter with the leaders of several Western Nations. Because of its wealth of experience, the Organization for European Economic Cooperation could help with initial studies. The goal is to enlist all available economic resources in the industrialized Free Worldespecially private investment capital. But I repeat that this help, no matter how great, can be lastingly effective only if it is used as a supplement to the strength of spirit and will of the people of the newly-developing nations. By extending this help we hope to make possible the enthusiastic enrollment of these nations under freedom's banner. No more startling contrast to a system of sullen satellites could be imagined. If we grasp this opportunity to build an age of productive partnership between the less fortunate nations and those that have already achieved a high state of economic advancement, we will make brighter the outlook for a world order based upon security, freedom and peace. Otherwise, the outlook could be dark indeed. We face what may be a turning point in history, and we must act decisively. As a nation we can successfully pursue these objectives only from a position of broadly based strength. No matter how earnest is our quest for guaranteed peace, we must maintain a high degree of military effectiveness at the same time we are engaged in negotiating the issue of arms reduction. Until tangible and mutually enforceable arms reduction measures are worked out, we will not weaken the means of defending our institutions. America possesses an enormous defense power. It is my studied conviction that no nation will ever risk general war against us unless we 8 Dwight D. Eisenhower, 1960 (I 4 should be so foolish as to neglect the defense forces we now so powerfully support. It is world-wide knowledge that any nation which might be tempted today to attack the United States, even though our country might sustain great losses, would itself promptly suffer a terrible destruction. But I once again assure all peoples and all nations that the United States, except in defense, will never turn loose this destructive power. During the past year, our long-range striking power, unmatched today in manned bombers, has taken on new strength as the Atlas intercontinental ballistic missile has entered the operational inventory. In fourteen recent test launchings, at ranges of over 5,000 miles, Atlas has been striking on an average within two miles of the target. This is less than the length of a jet runway-well within the circle of total destruction. Such performance is a great tribute to American scientists and engineers, who in the past five years have had to telescope time and technology to develop these long-range ballistic missiles, where America had none before. This year, moreover, growing numbers of nuclear-powered submarines will enter our active forces, some to be armed with Polaris missiles. These remarkable ships and weapons, ranging the oceans, will be capable of accurate fire on targets virtually anywhere on earth. Impossible to destroy by surprise attack, they will become one of our most effective sentinels for peace. To meet situations of less than general nuclear war, we continue to maintain our carrier forces, our many service units abroad, our always ready Army strategic forces and Marine Corps divisions, and the civilian components. The continuing modernization of these forces is a costly but necessary process, and is scheduled to go forward at a rate which will steadily add to our strength. The deployment of a portion of these forces beyond our shores, on land and sea, is persuasive demonstration of our determination to stand shoulder-to-shoulder with our allies for collective security. Moreover, I have directed that steps be taken to program our military assistance to these allies on a longer range basis. This is necessary for a sounder collective defense system. Next I refer to our effort in space exploration, which is often mistakenly supposed to be an integral part of defense research and development. First, America has made great contributions in the past two years to the world's fund of knowledge of astrophysics and space science. These discoveries are of present interest chiefly to the scientific community; but 9 (I 4 Public Papers of the Presidents they are important foundation-stones for more extensive exploration of outer space for the ultimate benefit of all mankind. Second, our military missile program, going forward so successfully, does not suffer from our present lack of very large rocket engines, which are so necessary in distant space exploration. I am assured by experts that the thrust of our present missiles is fully adequate for defense requirements. Third, the United States is pressing forward in the development of large rocket engines to place much heavier vehicles into space for exploration purposes. Fourth, in the meantime, it is necessary to remember that we have only begun to probe the environment immediately surrounding the earth. Using launch systems presently available, we are developing satellites to scout the world's weather; satellite relay stations to facilitate and extend communications over the globe; for navigation aids to give accurate bearings to ships and aircraft; and for perfecting instruments to collect and transmit the data we seek. This is the area holding the most promise for early and useful applications of space technology. Fifth, we have just completed a year's experience with our new space law. I believe it deficient in certain particulars and suggested improvements will be submitted shortly. The accomplishment of the many tasks I have alluded to requires the continuous strengthening of the spiritual, intellectual, and economic sinews of American life. The steady purpose of our society is to assure justice, before God, for every individual. We must be ever alert that freedom does not wither through the careless amassing of restrictive controls or the lack of courage to deal boldly with the giant issues of the day. A year ago, when I met with you, the nation was emerging from an economic downturn, even though the signs of resurgent prosperity were not then sufficiently convincing to the doubtful. Today our surging strength is apparent to everyone. I 960 promises to be the most prosperous year in our history. Yet we continue to be afflicted by nagging disorders. Among current problems that require solution are: -the need to protect the public interest in situations of prolonged labor-management stalemate; IO Dwight D. Eisenhower, 1960 I 4 -the persistent refusal to come to grips with a critical problem in one sector of American agriculture; -the continuing threat of inflation, together with the persisting tendency toward fiscal irresponsibility; -in certain instances the denial to some of our citizens of equal protection of the law. Every American was disturbed by the prolonged dispute in the steel industry and the protracted delay in reaching a settlement. We are all relieved that a settlement has at last been achieved in that industry. Percentagewise, by this settlement the increase to the steel companies in employment costs is lower than in any prior wage settlement since World War II. It is also gratifying to note that despite the increase in wages and benefits several of the major steel producers have announced that there will be no increase in steel prices at this time. The national interest demands that in the period of industrial peace which has been assured by the new contract both management and labor make every possible effort to increase efficiency and productivity in the manufacture of steel so that price increases can be avoided. One of the lessons of this story is that the potential danger to the entire Nation of longer and greater strikes must be met. To insure against such possibilities we must of course depend primarily upon the good commonsense of the responsible individuals. It is my intention to encourage regular discussions between management and labor outside the bargaining table, to consider the interest of the public as well as their mutual interest in the maintenance of industrial peace, price stability and economic growth. To me, it seems almost absurd for the United States to recognize the need, and so earnestly to seek, for cooperation among the nations unless we can achieve voluntary, dependable, abiding cooperation among the important segments of our own free society. Failure to face up to basic issues in areas other than those of labotmanagement can cause serious strains on the firm freedom supports of our society. I refer to agriculture as one of these areas. Our basic farm laws were written 27 years ago, in an emergency effort to redress hardship caused by a world-wide depression. They were continued-and their economic distortions intensified-during World War II I I (l 4 Public Papers of the Presidents in order to provide incentives for production of food needed to sustain a war-torn free world. Today our farm problem is totally different. It is that of effectively adjusting to the changes caused by a scientific revolution. When the original farm laws were written, an hour's farm labor produced only onefourth as much wheat as at present. Farm legislation is woefully out-ofdate, ineffective, and expensive. For years we have gone on with an outmoded system which not only has failed to protect farm income, but also has produced soaring, threatening surpluses. Our farms have been left producing for war while America has long been at peace. Once again I urge Congress to enact legislation that will gear production more closely to markets, make costly surpluses more manageable, provide greater freedom in farm operations, and steadily achieve increased net farm incomes. Another issue that we must meet squarely is that of living within our means. This requires restraint in expenditure, constant reassessment of priorities, and the maintenance of stable prices. We must prevent inflation. Here is an opponent of so many guises that it is sometimes difficult to recognize. But our clear need is to stop continuous and general price rises-a need that all of us can see and feel. To prevent steadily rising costs and prices calls for stern self-discipline by every citizen. No person, city, state, or organized group can afford to evade the obligation to resist inflation, for every American pays its crippling tax. Inflation's ravages do not end at the water's edge. Increases in prices of the goods we sell abroad threaten to drive us out of markets that once were securely ours. Whether domestic prices, so high as to be noncompetitive, result from demands for too-high profit margins or from increased labor costs that outrun growth in productivity, the final result is seriously damaging to the nation. We must fight inflation as we would a fire that imperils our home. Only by so doing can we prevent it from destroying our salaries, savings, pensions and insurance, and from gnawing away the very roots of a free, healthy economy and the nation's security. One major method by which the Federal government can counter inflation and rising prices is to insure that its expenditures are below its revenues. The debt with which we are now confronted is about 290 12 Dwight D. Eisenhower, 1960 billion dollars. With interest charges alone now costing taxpayers about 93/2 billions, it is clear that this debt growth must stop. You will be glad to know that despite the unsettling influences of the recent steel strike, we estimate that our accounts will show, on June 30, this year, a favorable balance of approximately $2oo million. I shall present to the Congress for i96i a balanced budget. In the area of defense, expenditures continue at the record peace-time levels of the last several years. With a single exception, expenditures in every major category of Health, Education and Welfare will be equal or greater than last year. In Space expenditures the amounts are practically doubled. But the over-all guiding goal of this budget is national neednot response to specific group, local or political insistence. Expenditure increases, other than those I have indicated, are largely accounted for by the increased cost of legislation previously enacted.' [I repeat, this budget will be a balanced one. Expenditures will be 79 billion 8 hundred million. The amount of income over outgo, described in the budget as a Surplus, to be applied against our national debt, is 4 billion 2 hundred million. Personally, I do not feel that any amount can be properly called a "Surplus" as long as the nation is in debt. I prefer to think of such an item as "reduction on our children's inherited mortgage." Once we have established such payments as normal practice, we can profitably make improvements in our tax structure and thereby truly reduce the heavy burdens of taxation. [In any event, this one reduction will save taxpayers, each year, approximately 2 hundred million dollars in interest costs.] This budget will help ease pressures in our credit and capital markets. It will enhance the confidence of people all over the world in the strength of our economy and our currency and in our individual and collective ability to be fiscally responsible. In the management of the huge public debt the Treasury is unfortunately not free of artificial barriers. Its ability to deal with the difficult problems in this field has been weakened greatly by the unwillingness of the Congress to remove archaic restrictions. The need for a freer hand in debt management is even more urgent today because the costs of the undesirable financing practices which the Treasury has been forced into are mounting. Removal of this roadblock has high priority in my legislative recommendations. At this point the President interpolated the two paragraphs shown in brackets. I3 Public Papers of the Presidents Still another issue relates to civil rights. In all our hopes and plans for a better world we all recognize that provincial and racial prejudices must be combatted. In the long perspective of history, the right to vote has been one of the strongest pillars of a free society. Our first duty is to protect this right against all encroachment. In spite of constitutional guarantees, and notwithstanding much progress of recent years, bias still deprives some persons in this country of equal protection of the laws. Early in your last session I recommended legislation which would help eliminate several practices discriminating against the basic rights of Americans. The Civil Rights Commission has developed additional constructive recommendations. I hope that these will be among the matters to be seriously considered in the current session. I trust that Congress will thus signal to the world that our Government is striving for equality under law for all our people. Each year and in many ways our nation continues to undergo profound change and growth. In the past 18 months we have hailed the entry of two more States of the Union-Alaska and Hawaii. We salute these two western stars proudly. Our vigorous expansion, which we all welcome as a sign of health and vitality, is many-sided. We are, for example, witnessing explosive growth in metropolitan areas. By I975 the metropolitan areas of the United States will occupy twice the territory they do today. The roster of urban problems with which they must cope is staggering. They involve water supply, cleaning the air, adjusting local tax systems, providing for essential educational, cultural, and social services, and destroying those conditions which breed delinquency and crime. In meeting these, we must, if we value our historic freedoms, keep within the traditional framework of our Federal system with powers divided between the national and state governments. The uniqueness of this system may confound the casual observer, but it has worked effectively for nearly 200 years. I do not doubt that our urban and other perplexing problems can be solved in the traditional American method. In doing so we must realize that nothing is really solved and ruinous tendencies are set in motion by I4 Dwight D. Eisenhower, 1960 yielding to the deceptive bait of the "easy" Federal tax dollar. Our educational system provides a ready example. All recognize the vital necessity of having modern school plants, well-qualified and adequately compensated teachers, and of using the best possible teaching techniques and curricula. We cannot be complacent about educating our youth. But the route to better trained minds is not through the swift administration of a Federal hypodermic or sustained financial transfusion. The educational process, essentially a local and personal responsibility, cannot be made to leap ahead by crash, centralized governmental action. The Administration has proposed a carefully reasoned program for helping eliminate current deficiencies. It is designed to stimulate classroom construction, not by substitution of Federal dollars for state and local funds, but by incentives to extend and encourage state and local efforts. This approach rejects the notion of Federal domination or control. It is workable, and should appeal to every American interested in advancement of our educational system in the traditional American way. I urge the Congress to take action upon it. There is one other subject concerning which I renew a recommendation I made in my State of the Union Message last January. I then advised the Congress of my purpose to intensify our efforts to replace force with a rule of law among nations. From many discussions abroad, I am convinced that purpose is widely and deeply shared by other peoples and nations of the world. In the same Message I stated that our efforts would include a reexamination of our own relation to the International Court of Justice. The Court was established by the United Nations to decide international legal disputes between nations. In I946 we accepted the Court's jurisdiction, but subject to a reservation of the right to determine unilaterally whether a matter lies essentially within domestic jurisdiction. There is pending before the Senate, a Resolution which would repeal our present self-judging reservation. I support that Resolution and urge its prompt passage. If this is done, I intend to urge similar acceptance of the Court's jurisdiction by every member of the United Nations. Here perhaps it is not amiss for me to say to the Members of the Congress, in this my final year of office, a word about the institutions we I5 Public Papers of the Presidents respectively represent and the meaning which the relationships between our two branches has for the days ahead. I am not unique as a President in having worked with a Congress controlled by the opposition party-except that no other President ever did it for quite so long! Yet in both personal and official relationships we have weathered the storms of the past five years. For this I am grateful. My deep concern in the next twelve months, before my successor takes office, is with our joint Congressional-Executive duty to our own and to other nations. Acting upon the beliefs I have expressed here today, I shall devote my full energies to the tasks at hand, whether these involve travel for promoting greater world understanding, negotiations to reduce international discord, or constant discussions and communications with the Congress and the American people on issues both domestic and foreign. In pursuit of these objectives, I look forward to, and shall dedicate myself to, a close and constructive association with the Congress. Every minute spent in irrelevant interbranch wrangling is precious time taken from the intelligent initiation and adoption of coherent policies for our national survival and progress. We seek a common goal-brighter opportunity for our own citizens and a world peace with justice for all. Before us and our friends is the challenge of an ideology which, for more than four decades, has trumpeted abroad its purpose of gaining ultimate victory over all forms of government at variance with its own. We realize that however much we repudiate the tenets of imperialistic Communism, it represents a gigantic enterprise grimly pursued by leaders who compel its subjects to subordinate their freedom of action and spirit and personal desires for some hoped-for advantage in the future. The Communists can present an array of material accomplishments over the past fifteen years that lends a false persuasiveness to many of their glittering promises to the uncommitted peoples. The competition they provide is formidable. But in our scale of values we place freedom first-our whole national existence and development have been geared to that basic concept and are responsible for the position of free world leadership to which we have succeeded. It is the highest prize that any nation can possess; it is one that Communism can never offer. And America's record of material accomplishment in freedom is written not only in the unparalleled prosi6 Dwight D. Eisenhower, 1960 (l 4 perity of our own nation, but in the many billions we have devoted to the reconstruction of Free World economies wrecked by World War II and in the effective help of many more billions we have given in saving the independence of many others threatened by outside domination. Assuredly we have the capacity for handling the problems in the new era of the world's history we are now entering. But we must use that capacity intelligently and tirelessly, regardless of personal sacrifice. The fissure that divides our political planet is deep and wide. We live, moreover, in a sea of semantic disorder in which old labels no longer faithfully describe. Police states are called "people's democracies." Armed conquest of free people is called "liberation." Such slippery slogans make more difficult the problem of communicating true faith, facts and beliefs. We must make clear our peaceful intentions, our aspirations for a better world. So doing, we must use language to enlighten the mind, not as the instrument of the studied innuendo and distorter of truth. And we must live by what we say. On my recent visit to distant lands I found one statesman after another eager to tell me of the elements of their government that had been borrowed from our American Constitution, and from the indestructible ideals set forth in our Declaration of Independence. As a nation we take pride that our own constitutional system, and the ideals which sustain it, have been long viewed as a fountainhead of freedom. By our every action we must strive to make ourselves worthy of this trust, ever mindful that an accumulation of seemingly minor encroachments upon freedom gradually could break down the entire fabric of a free society. So persuaded, we shall get on with the task before us. So dedicated, and with faith in the Almighty, humanity shall one day achieve the unity in freedom to which all men have aspired from the dawn of time. DWIGHT D. EISENHOWER NOTE: This is the text of the document 2d sess.). which the President signed and trans- The Address as reported from the floor mitted to the Senate and the House of appears in the Congressional Record of Representatives (H. Doc. 241, 86th Cong., January 7, I960 (vol. io6, p. 135). 17 (t 5 Public Papers of the Presidents 5 4T Letter to Senator Cooper on Federal Programs and Activities in Aid of Chronic Labor Surplus Areas. January 8, I 960 Dear John: In response to your letter of December 3I, I959, I assure you that I share your deep concern in respect to areas with substantial and persistent unemployment. I trust that it will hearten you and others to know that fourteen agencies of the Executive Branch have been contributing either direct or indirect assistance in such areas. The scope of these undertakings has been steadily enlarged. Last year I directed an intensification of these Federal efforts, which, I hope, will provide further help for existing local business and in creating job opportunities and attracting new businesses to these areas. The substance of existing Federal programs and activities in chronic labor surplus areas range from specialized technical assistance in fields such as area development, small business enterprise, employment counseling and surveys, financial assistance programs of loans and grants for urban renewal, public facilities, state and local industrial development corporations, the procurement of goods and services and construction of government facilities. In magnitude of impact, the defense and civilian procurement programs are impressive in their contribution to the economies of virtually all of the labor surplus areas. Among specific examples that have been reported to me, reflecting both the extent and diversity of Federal assistance, are the following: i. In the last fiscal year when unemployment was a widespread problem, 42.5% of the total procurement awards of the Department of Defense were made in labor surplus areas-temporary and chronic. 2. Of these total awards by the Department of Defense, set asides specifically reserved for labor surplus areas amounted to $96 million. 3. Two large operational offices of the Bureau of Census, Department of Commerce, have been placed in labor surplus areas (Jeffersonville, Indiana, and Parsons, Kansas) to prepare for the censuses of population and agriculture. 4. A total of 21 urban renewal projects have been approved by the 18 Dwight D. Eisenhower, g960 'f 5 Housing and Home Finance Agency in chronic labor surplus areas. These involve $58 million in Federal grant funds; 17 projects are under contract for execution and four are in the planning stage. 5. During the 15 month period ending October I, I959, the General Services Administration placed procurement contracts totaling over $408 million with suppliers in all labor surplus areas. This represents 62.3%o of the total dollar value of contracts awarded during this period. These examples indicate that the benefits resulting from the Federal contribution in surplus labor areas have been widespread and substantial. Other programs and activities to improve community economic conditions are underway or planned. Two activities in particular deserve mention: I. A new lending authority of the Small Business Administration provided for by the Small Business Investment Act of 1958 allows the making of mortgage loans (up to $250,000) to state and local development companies for local projects which assist small business. The Act also provides for the licensing of Small Business Investment Companies to provide equity capital and long-term debt funds to small business concerns. Already 24 loans to state and local development corporations amounting to $2.7 million have been approved, and 57 small business investment companies have been licensed. 2. Action has been taken to establish closer working relations between Federal programs and state and local efforts. The Office of Area Development in the Department of Commerce has been channelling Federal technical assistance to state and local groups, including industrial development corporations. This office acts as a clearinghouse on the methods and experiences of communities which have successfully coped with their economic problems. Increased strength was added to Federal programs last year through creation of an Interdepartmental Committee to Coordinate Federal Area Assistance Programs. This committee has been coordinating the numerous diversified undertakings of the Departments and agencies in urban-industrial regions and now is intensifying these joint efforts. Members of the Committee include the Under Secretary of Commerce, Chairman; the Deputy Postmaster General; the Under Secretary of Interior; the Under Secretary of Agriculture; the Under Secretary of Labor; the Under Secretary of Health, Education, and Welfare; the Assistant Secretary of Defense (Supply & Logistics); the Administrator of the Gen 60295-61 — 5 I9 (I 5 Public Papers of the Presidents eral Services Administration; the Administrator of the Federal Aviation Agency; the Administrator of the Small Business Administration; the Administrator of the Housing and Home Finance Agency; the Director of the Office of Civil and Defense Mobilization; the Special Assistant to the President for Public Works; and a member of the Council of Economic Advisers. This Committee complements the long-established Committee for Rural Development Program with which it is working in close cooperation. Our policy is twofold: Efficient coordination among Federal agencies and full cooperation by these Federal agencies with state and local governments and private individuals and organizations that seek to help areas with substantial and persistent unemployment. The national economy is at a very high level. We all want people in areas with chronic unemployment to share more in this overall prosperity. Through joint Federal, local and private efforts, which help these areas to help themselves, considerable improvement in regional economic conditions has been realized. Through more intensified efforts of the Federal coordinating committee above described, which I believe meets the purpose suggested by your bill, I anticipate that additional industrial activity can be stimulated and more job opportunities made available. In addition, as you well know, I have repeatedly urged that the Congress pass legislation which I have specifically proposed to assist areas of urgent need. This legislation would give the government additional authority and finances to help these areas once again to become fully productive elements in the national economy. I am hopeful that the Congress will soon approve my recommendations in this regard. With warm regard, Sincerely, DWIGHT D. EISENHOWER NOTE: Senator Cooper of Kentucky was chronic unemployment concerning the the ranking minority member of the Sen- programs of Federal agencies. The letter ate's Special Committee on Unemploy- was released with the President's reply. ment Problems, and the sponsor of a reso- On April 20, i960, the White House lution providing for an interagency task released a preliminary report by the Inforce to formulate plans for the devel- terdepartmental Committee to Coordinate opment of the economic potential of Federal Urban Area Assistance Programs. underdeveloped regions. His letter of The report, entitled "Federal Programs of December 31, 1959, emphasized the need Assistance to Labor Surplus Areas" (55 for informing communities in areas of pages), is in the form of a manual, with 20 Dwight D. Eisenhower, 1960 index, for use by local officials or private the Federal Government in resolving labor organizations seeking the cooperation of surplus area problems. See also Item 176. 6 4I Special Message to the Congress on Removal of the Interest Rate Ceiling on Government Bonds. January I2, I960 To the Congress of the United States: As I said in my State of the Union Message, the Treasury is being prevented from taking debt management actions that are fully consistent with the public interest because of the artificial interest rate ceiling on new Treasury medium-term and long-term issues. In a special message to the Congress on June 8, I959, I urged the removal of this archaic restriction on flexible debt management. Congressional inaction on that request has resulted in a much more rapid increase in short-term debt than would otherwise have occurred. As a result, short-term Treasury borrowing costs have risen to the highest levels in several decades and the ability of debt management to operate in a manner consistent with sound principles of sustained economic growth has been seriously undermined. I deem it imperative, therefore, that this restrictive ceiling be removed. I am asking the Secretary of the Treasury to transmit to the Congress proposed legislation designed to attain this objective. DWIGHT D. EISENHOWER 7 eI The President's News Conference of January I3, i960 THE PRESIDENT. I have no announcements. Q. Marvin L. Arrowsmith, Associated Press: Mr. President, there have been demands that this country protest and try to block Russia's announced plans to use the central Pacific to test a powerful new missile. How do you feel about this? THE PRESIDENT. Well, I didn't know it was moon missile. Somebody said larger propulsive engines; isn't it? 2I Public Papers of the Presidents Q. Mr. Arrowsmith: I think that's it. THE PRESIDENT. The United States has always claimed the right in the high seas to use areas there for valid scientific experiment, and has, in doing so, notified everybody concerned, and then taken the proper measures to warn away from the areas involved anyone that might be damaged. We did this in the central Pacific. We have assumed that this was within the meaning and spirit of international law; and if there is any contrary view, why, it would have to be, I think, studied in that context as to the requirements of international law. Therefore, it would seem very unusual for us to make a protest when we have done the same thing ourselves and intend to do it again. Q. Merriman Smith, United Press International: Mr. President, what do you think of the revived suggestion, this time from former President Truman, that you take some ranking Democrats with you to the May summit meeting? Are you considering such a thing? THE PRESIDENT. As a matter of fact, I am not commenting on anybody else's suggestion. It is a thing that always comes up whenever there is any international conference. Indeed, so far as I know, it has always been the practice, where there was any prospect of any treaties to be signed, to bring somebody of the opposite party into these conferences, particularly from the Senate, so that when the matter of confirmation came up there could be someone to explain the details of the agreements. Now, I have never looked at the composition. As a matter of fact, during the Casablanca and Teheran and Yalta and Potsdam conferences, I have no idea whether there were any Republicans there. I wasn't interested in those days whether a man was a Republican or a Democrat. But there are, of course, certain circumstances where you could say such-and-such a thing is valuable. It is one of those things that is never forgotten and is kept in mind. Certainly if there came up an occasion when you would believe that there was something that might come to a head, whether it be a treaty signed, I would certainly think it would be a good idea to have others along. Q. Ray L. Scherer, National Broadcasting Company: Mr. President, two questions about your December trip. You were acclaimed by millions of people, perhaps more people than anyone else in history. Have you had a chance to ponder the meaning of this and, two, can you tell us anything about the substance of your talk with Mr. Nehru? THE PRESIDENT. Well, the first part, I think, is very simple. I believe 22 Dwight D. Eisenhower, i960 (J 7 that there have been a lot of people through the nations that I visited, that were a little bit of the belief that they have been accused of being unfriendly of the American; they have an opposite feeling and they wanted to express it. I believe it is just that simple. Certainly so many young people never knew of an old soldier of World War II-they were too young for that; they didn't come out for any personal thing particularly, although, of course, some of the older ones and some of them who may have been friends and associates of mine in the war did. Largely this was an attempt to express for the United States some affection and respect for American efforts to promote a peaceful world. Now, I could say only this about my conversations with Mr. Nehru: I talked to many people, and I wouldn't be at liberty to talk about the specific subjects. The talks with him were not only interesting; particularly those when we were alone were very instructive to me and I think showed a very splendid grasp of the situation, particularly in the areas in which he is so deeply involved. Q. Robert C. Pierpoint, CBS News: Mr. President, could you tell us your reaction to the withdrawal of Governor Rockefeller and the resulting semiautomatic candidacy of Vice President Nixon? THE PRESIDENT. Well, I was just as much astonished as you were. By the way, he tried to call me up and to give me some advance information. I believe he was very much annoyed because he had given the thing for release at 6:30, and it was released at 2; and so he called me after it was already on my desk in the form of the ticker tape. I would just say that I was just as astonished as anybody else, but I just take his statement at face value and that's that. I do agree that it does give a certain atmosphere of no competition, you might say, on the nomination. [Laughter] Q. William Knighton, Jr., Baltimore Sun: Mr. President, under those circumstances, however, do you feel you want to give a formal declaration of support to the Vice President before the convention? THE PRESIDENT. You know, the only thing I know about the Presidency the next time is this: I can't run. [Laughter] But someone has raised the question that were I invited, could I constitutionally run for Vice President, and you might find out about that one. I don't know. [Laughter] Q. Mrs. May Craig, Portland (Maine) Press Herald: Mr. President, in a speech last summer you advocated help to the Middle East in development. 23 Public Papers of the Presidents The first stage of the Aswan Dam in Egypt has now begun with Soviet help. Are you considering offering help from us to Egypt in further stages of the Aswan Dam? THE PRESIDENT. We are trying to do that now, Mrs. Craig, through the World Bank. The World Bank today, in my opinion, is the most knowledgeable instrument that belongs to the West to bring about, first, the probable value of these various public works, and on top of that the best way to go into it, to support the thing. For example, you will remember when we were into the Aswan business, the dam business-[laughter]-well, I don't want to be accused of profanity around here-[laughter]-we at that time had the World Bank as the central affair. We were to put in a certain amount of money, Britain was to put in a certain amount of money; and so we have gone pretty well on that theory, that they have got a very fine engineering exploratory service. Then, of course, this special Fund of the United Nations is doing a very fine job in what you might call the pre-exploratory efforts. All in all, I would say we would look at the Aswan Dam in the same way we would anything else-from that basis. Q. Robert J. Donovan, New York Herald Tribune: Speaking of Vice President Nixon, sir, could you comment on his role in the steel settlement, and tell us how you feel about the settlement itself? THE PRESIDENT. Well, it's a very simple affair, really. We'd had this long deadlock, and then there was no evidence of progress even after the invocation of the injunctional proceedings under Taft-Hartley. So, it seemed that possibly new personalities to act as some kind of mediators between the contending parties might be helpful; and I asked Mr. Mitchell, with Mr. Nixon, to act in that capacity. Now, they were deadlocked; they would not come together, would not reach an agreement. So, finally, these people, acting as mediators, by going to each side separately and working-apparently a very intensive area of working and a period of working-proposed a solution that was somewhere between the two positions. There are certain facts that ought to be noted. Mr. Blough very properly said this was not an agreement forced by anybody; it was forced by circumstances. Two of the important circumstances were these: the can and the aluminum contracts had already been solved and written; the 24 Dwight D. Eisenhower, I960 other one was that all of the information to both sides was that the workers were absolutely going to reject what had been advertised as the last offer of the companies. You are in that kind of a position when they brought this forwardthis proposal. Any idea that there was threat or pressure brought to bear upon the companies is silly. First of all, I don't know what pressure you could bring of a practical nature. Both sides did, on the contrary, voluntarily accept this solution. They did so, first of all, saying that there would be no immediate price rises-the first time it has happened, by the way, in any steel contract that I know of since World War II; secondly, if the can or the aluminum contracts had been applied-their terms, been applied-to steel, this would have been a higher settlement than the compromise settlement that was reached. So the final word on the thing was, at least the hope was expressed, that if the kind of cooperation that they now believe could be expected between labor and the companies was pursued vigorously we might indeed avoid any price rises as a result of this contract. Of course there are other influences always at work; for example, higher taxes in OASI, as they come in, and all the rest of it. But that was the thing that happened, and it is the whole story as far as I know it. Q. Frank van der Linden, Nashville Banner: Sir, Gen. Maxwell Taylor, in his new book, is proposing a single Chief of Staff for all the services, and a much larger defense budget of something like $50 to $55 billion a year. Could you give us your views with regard to both those points? THE PRESIDENT. Well, I should think he has the right to his own opinion. Q. Sarah McClendon, Manchester (N.H.) Union Leader: Sir, there seems to be sort of an attitude of kissing off defense adequacy, the subject even in your State of the Union Message; and your Republican leaders, as they came out of the White House yesterday, they seemed to think any question of adequacy here is partisanship. Now, isn't this more of a serious situation? This Polaris submarine you referred to in your State of the Union Message, you said we would have some entering with missiles into the active forces this year. Do you mean "some" means one or more? THE PRESIDENT. Wait just a minute. Are you asking a question or making a speech? 25 Public Papers of the Presidents Q. Mrs. McClendon: I am asking two questions, sir. THE PRESIDENT. O.K. Q. Mrs. McClendon: Two questions, sir; with an introduction. One is, is it not more serious, this question of adequacy of defense more serious, than just to kiss it off as a partisan matter; and, two, will the submarines, the nuclear submarines, with the missile that we get this year, be more than one? THE PRESIDENT. I am not exactly certain as to the time each one of these comes off the ways. I know, and I think the budget shows, how many have been authorized each year. They know that the testing of the Polaris missile is going ahead, and the last one, the very last one that they have just had, has been successful. I don't take it very kindly-the implied accusation that I am dealing with the whole matter of defense on a partisan basis. First of all, I don't have to be partisan; and, second, I want to tell you this: I've spent my life in this, and I know more about it than almost anybody, I think, that is in the country, because I have given my life to it, and on a basis of doing what is good for the Government and for the country. I believe that the matter of defense has been handled well and efficiently in the proposals that will be before the Congress within a matter of a day or so; and I think those people that are trying to make defense a partisan matter are doing a disservice to the United States. Q. David Kraslow, Knight Newspapers: Mr. President, the Cuban Government apparently has rejected another protest concerning the illegal seizure and confiscation of American property. Does the administration plan to take any steps beyond the sending of notes to secure equity for American property owners? THE PRESIDENT. In this particular stage of this particular problem, I don't think it would be best to comment at the moment as to the things that may be available to us. Q. Don Oberdorfer, Knight Newspapers: Mr. President, you asked the Congress to study the recommendations of the Commission on Civil Rights in your State of the Union Message. Do you agree with the majority of the Commissioners that a law is needed to provide Federal registrars when Negroes are denied the right to register or vote? THE PRESIDENT. As a matter of fact, I don't even know whether it is constitutional. 26 Dwight D. Eisenhower, i960 (I 7 What the Commissioners said: this was one plan that they thought might have some measure of validity and, therefore, they wanted to study it. Now, the way I feel about this civil rights, we have one bill that was put in last year in which extensive hearings have been had; and I should like to see the Congress act decisively on this particular proposal, and such other proposals that now become almost controversial from the moment that they are presented would not enter into the process of examining and passing the bill that was already put before the Congress. What I am trying to get at is, I have no objection to the study of the others. As a matter of fact, I want to study them because I would like to see what everybody thinks about it. My big problem is, though, let's get this bill already proposed on which they have had hearings, let's get that acted on. Q. Roscoe Drummond, New York Herald Tribune: Mr. President, you have said on more than one occasion that you thought that there were a number of Republican leaders who would be qualified to be the presidential nominee. I would like to ask whether you think it is accurate to say that the Republican leaders in the main do not welcome a contest for the presidential nomination, as has been said, and what do, you think of that statement? THE PRESIDENT. I suppose you refer to the statement of Mr. Rockefeller-I mean in his announcement-in which he said, I think, those controlling the party-something of that kind. Now, if we are talking about political leaders, some of them have no position in the hierarchy of Republican machinery; that is, they are not members of the National Committee, they are not State or county chairmen, or anything of that kind. All I have said is this: there are a number of them that I think are very, very highly qualified people. I have said this ever since I954, I guess. But I do not know whether they welcome any contest or not. I am sure of this: some of the leaders think that any contest is good because of whipping up interest, even if they know, or think they know, who is going to win. But I suppose there are other ways; for example, in '56 it seemed to be perfectly well known, once I accepted, that I was going to be the nominee, and I don't see that it hurt that election particularly. [Laughter] Q. Felix Belair, New York Times: Mr. President, in recent days the papers have been carrying a statement from a former British Prime Min 60295-61 ~6 27 Public Papers of the Presidents ister, Mr. Eden, highly critical of the United States foreign policy, particularly in Indochina and that general area, critical of Mr. Dulles. Well, the way we operate, as you well know, is not to disclose papers that would confirm or throw light on our position at that time. THE PRESIDENT. Yes. Q. Mr. Belair: I wonder if in the present instance you might make it possible for us to receive some guidance so that the public could get the true picture of what really happened? THE PRESIDENT. Well, of course, I do not comment on memoirs, and I must say at times there has been a bit of provocation. [Laughter] I think here that, as an official matter, I wouldn't do it. But remember this: Secretary Dulles was a very forceful man. He could very well talk about possibilities and ask people about possibilities that might by them be considered as proposals, when they were not meant that at all. It was to put out an idea and study it. I do know this, that there was never any plan developed to be put into execution in the particular instance that has been talked about. Now, on the other hand, I must say this: I have known Mr. Eden for many years, from the very beginning of World War II. I have known him in positions of responsibility, and he is not an irresponsible person. So I think whatever he is doing, he is writing the story as he believes it to be. Q. Mr. Belair: What I was wondering, Mr. President, was whether you would look sympathetically on-I mean I understand you could not possibly comment on this business-but would you look sympathetically on some authorized person in, say, the State Department, advising the press and supporting the contrary view, if there is a contrary view? THE PRESIDENT. Well, Mr. Belair, I would have to talk to them. I hadn't thought of that, but I will talk to them about it. Q. Edward T. Folliard, Washington Post: Mr. President, to go back to the question of defense, some critics of the administration's defense program are saying that in talks with Chairman Khrushchev, you would be at a disadvantage because of the prospect that the United States will be second best in the missile field. Do you think that argument has any merit, Mr. President? THE PRESIDENT. Well, let's put it this way: such an argument as that presupposes that I come to any conversation in the feeling of inferioritythat I am a little bit frightened. I assure you I am not. 28 Dwight D. Eisenhower, I960 q 7 I believe in the United States power, and I believe it is there not to be used but to make certain that the other fellow doesn't use his. I am not in the slightest degree disturbed by such a possibility as you speak of. Q. L. Edgar Prina, Washington Star: From what your Air Chief General White said at the Press Club Monday, he believes that the virtual cancellation of the B-70 program was a budgetary decision, certainly not an Air Force decision, and he indicated that he might make his views known on Capitol Hill. Do you have any comment on it? THE PRESIDENT. I will say this: it is certainly not a budgetary decision because there is money in the budget and, as I pointed out, there was a surplus that I hoped we could pay off some of our debts. It was my conviction as to the necessity for particular weapons at a particular time. The B-7o, as an operational weapon, is going to take a long time to produce, and we certainly ought to be in a pretty strong position in many other ways before those years elapse. Q. Ronald W. May, Madison (Wis.) Capital Times: Mr. President, Representative Kastenmeier of Wisconsin has suggested that there might be a change in our traditional policy of not using chemical, germ, or poison gas warfare first. He said that Army people have indicated that they believed that maybe we should change our policy and use these first, either in a large war or even in a small war. Is this true? THE PRESIDENT. I will say this: no such official suggestion has been made to me, and so far as my own instinct is concerned, is to not start such a thing as that first. Q. Raymond P. Brandt, St. Louis Post Dispatch: Can you tell us how you reached the $4.2 billion surplus for fiscal i96i? THE PRESIDENT. Easily; $84 billion of revenue, and 79.8 of expenditures. Now, we did it on this basis, Mr. Brandt: we took a $5 I 0 billion GNP. Already, we are accused that it is too conservative. I saw one in a financial page the other day, a guess of 524; I saw where several bankers said 54. We made ours 5 IO; and on the basis of such a GNP and our tax rates, why, it was very simple to get a pretty accurate estimate of our expected revenues. Of course, we are hopeful that the Congress will see the wisdom of the recommendations we have made in the expenditure side, and by that means we hope to have that much to put on the debt. Q. Mr. Brandt: I can see how you get your 84, but how do you get the 79.8? 29 M 7 Public Papers of the Presidents THE PRESIDENT. I put that-yes, I said that in the State of the Union Message. It is the total amount of the budget. Q. Mr. Brandt: Is that variable? THE PRESIDENT. Well, look: now, let's don't pretend that anyone has got a sacrosanct judgment on something that reaches i8 months ahead. Of course, there are going to be some needs that are increased, and some that probably are decreased-hopefully. But that is our best guess at this time. A budget, after all, is not a paper that you go to jail on if you happen to be a little bit wrong. A budget is an estimate, a plan for expenditures and revenues, and you get your balances on that basis. But I do point out that it is absolutely necessary that we have savings to put on this debt that we are passing on to someone else; and possibly we seem to think it will be all right for us and them to increase it. I think the kind of alleged economist that says that the United States can afford to keep piling this debt on and on and on is not one to be very highly respected as an economist. Q. Lillian Levy, National Jewish Post: Mr. President, it is reported that our authorities in Berlin have put a lid on press information and requests about officials in the Bonn Government accused of former Nazi affiliations. The excuse offered is that this information might be embarrassing to the Bonn Government. Would you comment on such a reason for a news ban? THE PRESIDENT. You will have to go to the State Department. I haven't heard any such thing as this. I thought it was all in the papers; at least I have read in the papers about the things that have been going on; so I think you will have to go to the State Department. Q. Miss Levy: Well, the report was in the Post this morning that press requests for such information are being turned down by our military authorities who have records of Nazi, of officials in the Bonn Government who are accused of former Nazi affiliation. THE PRESIDENT. That is a very "iffy" question. But I assure you of this, that a local military commander is not going to get into political affairs and give out information that has to do about the politics of individuals or anybody else. This is not his business, and while there may be reports of this kind that come to the Defense Department and are passed on to State, the last thing I would think of any local military commander would be to get into any such thing as that. 30 Dwight D. Eisenhower, 1960 Marvin L. Arrowsmith, Associated Press: Thank you, Mr. President. NOTE: President Eisenhower's one hun- from 10:33 to II:02 o'clock on Wednesdred and seventy-seventh news conference day morning, January 13, 1960. In atwas held in the Executive Office Building tendance: 253. 8 eI Letter to Gordon Gray Designating Him Chairman of the Operations Coordinating Board. January 13, 1960 Dear Mr. Gray: I hereby designate you Chairman of the Operations Coordinating Board, vice Mr. Robert D. Murphy, to perform duties in accordance with Executive Order I 07o00 dated February 25, 1957, as amended, in addition to your other duties. I know that you are thoroughly familiar with the work of the OCB through your service as a member of the Board since July 1958. In view of your continuing responsibility as the principal supervisory officer of the work of the National Security Council in formulating national security policies including those assigned by me to the OCB for coordination, you are in a position to provide impartial and objective guidance and leadership to the Board. This new assignment is one step which I feel should be taken toward enabling the President to look to one office for staff assistance in the whole range of national security affairs. I reiterate the importance I attach to the Board's responsibilities. Sincerely, DWIGHT D. EISENHOWER NOTE: Mr. Gray was serving as Special Assistant to the President for National Security Affairs. 9 e Letter to Karl G. Harr, Jr., Concerning His Duties With the Operations Coordinating Board. January 13, 1960 Dear Mr. Harr: I have today designated Mr. Gordon Gray, Chairman of the Operations Coordinating Board, vice Mr. Robert D. Murphy. Under this new 3I (I 9 Public Papers of the Presidents arrangement I will look to Mr. Gray to give impartial and objective leadership and guidance for the work of the OCB as well as the work of the National Security Council and its Planning Board. Within the framework of your duties as my Special Assistant, you are requested henceforth to make a special contribution to two major areas of the Operations Coordinating Board's work in addition to continuing to discharge your responsibilities with respect to the normal work of the OCB. The first of these is in taking the lead in initiating new proposals to the Board for actions within the framework of national security policies in response to opportunity and changes in the situation. The second is in placing particular emphasis on seeing that Board actions implementing national security policies contribute fully to the climate of foreign opinion the United States is seeking to achieve in the world. You will, of course, continue as Vice Chairman of the OCB and I will expect you to continue to present OCB reports to the National Security Council as you have been doing since your appointment as my representative on the Board in March 1958. Sincerely, DWIGHT D. EISENHOWER NOTE: Mr. Harr was serving as Special Assistant to the President for Security Operations Coordination. I o I Special Message to the Congress on Transfers From the Department of Defense to the National Aeronautics and Space Administration. January 14, I960 To the Congress of the United States: In pursuance of the provisions of section 302 of the National Aeronautics and Space Act of 1958 I transmit herewith a transfer plan headed "Making certain transfers from the Department of Defense to the National Aeronautics and Space Administration." This message, together with the transfer plan, constitutes the report to the Congress, relative to the transfers, as required by the provisions of section 302. Under the National Aeronautics and Space Act of 1958, the National Aeronautics and Space Administration (NASA) has primary responsi32 Dwight D. Eisenhower, 1960 e 10 bility for the Nation's program of space exploration. The Department of Defense has responsibility for the Nation's defense program, including the development and operation of space vehicles for defense purposes. I have recently reviewed the needs and requirements of the two agencies in their respective fields. It is clear that NASA, in order to carry on a vigorous and effective program for the exploration of space, both manned and unmanned, requires boosters for space vehicles greatly exceeding the thrust of any boosters now available. Furthermore, there is at present no clear Department of Defense requirement for such very large boosters. For this reason I assigned sole responsibility for development of space vehicle boosters of very high thrust to NASA last November. In carrying out this responsibility NASA will be fully responsive to specific requirements of the Department of Defense for the development of very large boosters for future military missions. At the same time the Department of Defense and NASA will continue with a coordinated program for the development of boosters based on the current intercontinental ballistic missile (ICBM) and the intermediate range ballistic missile (IRBM) and growth versions of those missiles. On the basis of this assignment of responsibility the National Aeronautics and Space Administration has assumed technical direction of the Saturn booster project which was previously under the direction of the Department of Defense. This booster which promises to increase greatly the Nation's ability to explore space is being developed by the Army Ballistic Missile Agency and will soon constitute the major workload of the Development Operations Division of that Agency. The foregoing reflects the pertinent arrangements as they now exist. I have concluded that it is in the best interest of the Nation to take another step at this time-to provide NASA with an organization capable of and equipped for developing and operating large space vehicle boosters and conducting related research. This can be done by transferring to NASA the Development Operations Division of the Army Ballistic Missile Agency and certain supporting personnel. At the same time it is recognized that the Army must continue to be able to discharge its responsibilities for development of missile systems. The transfer plan forwarded herewith is designed to accomplish these purposes. In carrying out the transfer plan every effort will be made to prevent the dislocation or disruption of ongoing missile or space vehicle projects. The development of military weapons systems and related programs, cur33 ( 0 I Public Papers of the Presidents rently being worked on by the Development Operations Division, will be continued by the Army, utilizing the skills of the transferred personnel as requested by the Army, on a reimbursable basis. The transfer of personnel, property, and funds, under the plan, will be accomplished in such manner as to serve the objectives I have outlined. I urge the Congress to allow the transfer plan transmitted herewith to take effect. DWIGHT D. EISENHOWER NOTE: The plan entitled "Making Cer- March i5, i960. It is published in the tain Transfers from the Department of De- Federal Register of March I6 (25 F.R. fense to the National Aeronautics and 2151) and in the 1960 Supplement to Space Administration" became effective on title 3 of the Code of Federal Regulations. I I yC Special Message to the Congress Recommending Amendments to the National Aeronautics and Space Act. January I 4, I 960 To the Congress of the United States: I recommend that the Congress enact certain amendments to the National Aeronautics and Space Act of I958 to clarify management responsibilities and to streamline organizational arrangements concerning the national program of space exploration. Prior to establishment of the National Aeronautics and Space Administration, the Department of Defense had been responsible for all of the nation's space activities, including those of a nonmilitary nature such as the Vanguard satellite project designed for United States participation in the scientific activities of the International Geophysical Year. When the new agency came into existence, with the duty of carrying out a program of space exploration, it became necessary to transfer the nonmilitary projects, with their supporting facilities and personnel, to the new agency from the Department of Defense. The Act empowered the President to make such transfers. I exercised this authority on October I, 1958, when I transferred to NASA responsibility for Project Vanguard and certain other space-related projects previously under the direction of the Department of Defense. I exercised it for the second time on December 3, I958, when I directed the transfer to NASA of the Jet Propulsion Laboratory at Pasadena, California. And today I am transmitting a report advising the Congress of my intention to transfer to NASA the Development Opera34 Dwight D. Eisenhower, 1960 q II tions Division of the Army Ballistic Missile Agency. The authority granted to the President has thus been used to center in NASA direction of all of the nation's nonmilitary space activities, and to provide NASA with the facilities and personnel needed to carry out this task. The Act, however, contains a number of provisions which tend to obscure the responsibility of NASA for planning and directing a national program of space exploration and peaceful space activity. For example, there is inherent in it the concept-which I believe to be incorrect-of a single "comprehensive program" of space activities embracing both civilian and military activities, and it implies that a multiplicity of unnamed agencies might have responsibility for portions of such a program. In an effort to deal with these problems, the Act established a scheme of organization of considerable complexity. First, Section 2oi (e) of the Act imposes upon the President an unusual degree of personal responsibility for developing this "comprehensive" space program and of surveying its operations in detail. Second, the Act established the National Aeronautics and Space Council and gave it the sole function of advising the President with respect to the performance of his statutory duties. Third, it made provision for a Civilian-Military Liaison Committee, which was given no other duty than providing a channel of advice and consultation between NASA and the Department of Defense. I have become convinced by the experience of the fifteen months since NASA was established that the Act needs to be amended so as to place responsibility directly and unequivocally in one agency, NASA, for planning and managing a national program of nonmilitary space activities. This requires, first of all, elimination of those provisions which reflect the concept of a single program embracing military as well as nonmilitary space activities. In actual practice, a single civil-military program does not exist and is in fact unattainable; and the statutory concept of such a program has caused confusion. The military utilization of space, and the research and development effort directed toward that end, are integral parts of the total defense program of the United States. Space projects in the Department of Defense are undertaken only to meet military requirements. The Department of Defense has ample authority outside the National Aeronautics and Space Act of I958 to conduct research and development work on space-related weapons systems and to utilize space for defense purposes; and nothing in the Act should derogate from that authority. 35 ( II Public Papers of the Presidents I am also convinced that it is no longer desirable to retain in the Act those provisions which impose duties of planning and detailed surveying upon the President. We have come to the end of a transitional period during which responsibilities for a broad range of activities were being shifted to NASA from the Department of Defense and NASA's capabilities for discharging those responsibilities were being developed. From now on it should be made clear that NASA, like the Department of Defense in the military field, is responsible in the first instance for the formulation and execution of its own program, subject, of course, to the authority and direction of the President. With the repeal of the statutory enumeration of Presidential duties, the National Aeronautics and Space Council should be abolished, since its only function is to advise the President in the performance of those duties. The repeal would not, however, affect another provision of the Act which provides that the Administrator of NASA and the Secretary of Defense may refer to the President for decision those matters concerning their respective areas of responsibility on which they are unable to reach agreement. This provision should be retained in the law. The Civilian-Military Liaison Committee should also be eliminated. The statute should go no further than requiring that NASA and the Department of Defense advise, consult, and keep each other fully informed with respect to space activities within their respective jurisdictions; it should not prescribe the specific means of doing so. Finally, the Act should contain safeguards against undesirable duplication by NASA and the Department of Defense in developing the major tools of space exploration. Although a civilian space exploration program is clearly distinguishable from the military utilization of space for defense purposes, both NASA and the Department of Defense may have similar or identical requirements for launch vehicles used to propel and guide spacecraft into orbit about the earth or toward other celestial bodies. I propose that the Act be amended to provide that the President shall assign responsibility for the development of each new launch vehicle, regardless of its intended use, to either NASA or the Department of Defense. Responsibility for development of the new vehicle should in no way determine responsibility for its use in space activities. Amended as I have recommended, the National Aeronautics and Space Act of 1958 would become the organic act of an independent civilian agency having a well defined statutory responsibility for which it is an36 Dwight D. Eisenhower, Ig960o e I3 swerable to both the President and to Congress. I have requested the Administrator of the National Aeronautics and Space Administration to transmit to the Congress draft legislation incorporating the foregoing recommendations, and I urge that they be enacted by the Congress at the earliest possible date. DWIGHT D. EISENHOWER I 2 4e Letter to T. Keith Glennan, Administrator, National Aeronautics and Space Administration, on High Thrust Space Vehicles. January 14, 1 960 Dear Dr. Glennan: As we have agreed, it is essential to press forward vigorously to increase our capability in high thrust space vehicles. You are hereby directed to make a study, to be completed at the earliest date practicable, of the possible need for additional funds for the balance of FY 1960 and for FY 1961 to accelerate the super booster program for which your agency recently was given technical and management responsibility. Consistent with my decision to assign a high priority to the Saturn development, you are directed, as an immediate measure, to use such additional overtime as you may deem necessary on this project. Sincerely, DWIGHT D. EISENHOWER NOTE: The White House announced on year i961 appropriation request for NASA February i, at Denver, Colo., that as a re- adding $113 million to accelerate progress sult of Dr. Glennan's study the President on Saturn and other elements of the Nahad approved an amendment in the fiscal tion's super booster program. 1 3 e1 Annual Budget Message to the Congress: Fiscal Year 1 961. January i 8, 1 960 To the Congress of the United States: With this message, transmitting the Budget of the United States for the fiscal year 1961, I invite the Congress to join with me in a determined 37 Public Papers of the Presidents effort to achieve a substantial surplus. This will make possible a reduction in the national debt. The proposals in this budget demonstrate that this objective can be attained while at the same time maintaining required military strength and enhancing the national welfare. This budget attests to the strength of America's economy. At the same time, the budget is a test of our resolve, as a nation, to allocate our resources prudently, to maintain the Nation's security, and to extend economic growth into the future without inflation. In highlight, this budget proposes: i. Revenues of $84 billion and expenditures of $79.8 billion, leaving a surplus of $4.2 billion. This surplus should be applied to debt reduction, which I believe to 'be a prime element in sound fiscal policy for the Nation at this time. 2. New appropriations for the military functions of the Department of Defense amounting to $40.6 billion, and expenditures of $4i billion. These expenditures, which will be slightly higher than the i960 level, will provide the strong and versatile defense which we require under prevailing world conditions. 3. Increased appropriations (including substantial restoration of congressional reductions in the i960 budget), and a virtual doubling of expenditures, for nonmilitary space projects under the National Aeronautics and Space Administration. This furthers our plans to keep moving ahead vigorously and systematically with our intensive program of scientific exploration and with the development of the large boosters essential to the conquest of outer space. 4. Nearly $4.2 billion in new appropriations for mutual security programs, an increase of about $950 million above appropriations for the current year, with an increase of $ioo million in expenditures. This increase in program is needed to accelerate economic and technical assistance, chiefly through the Development Loan Fund, and to strengthen free world forces, in particular the forces of the North Atlantic Treaty Organization, with advanced weapons and equipment. 5. A record total of expenditures, $I.2 billion, for water resources projects under the Corps of Engineers and the Bureau of Reclamation. In addition to funds for going work, this amount provides for the initiation of 42 new high-priority projects, which will require $38 million in new appropriations for i96i, and will cost a total of $496 million over a period of years. 38 Dwight D. Eisenhower, I960 (I 13 6. Substantially higher expenditures in a number of categories which under present laws are relatively uncontrollable, particularly $9.6 billion for interest; $3.9 billion to help support farm prices and income; $3.8 billion for veterans compensation and pensions; and $2.4 billion in aid to State and local governments for public assistance and employment security activities. The aggregate increase in these relatively uncontrollable expenditures is more than $ I billion over 960. 7. Research and development expenditures of $8.4 billion-well over one-half of the entire Nation's expenditures, public and private, for these purposes-in order to assure a continuing strong and modern defense and to stimulate basic research and technological progress. 8. Recommendations for prompt legislative action to increase taxes on highway and aviation fuels, and to raise postal rates. These measures are needed to place on the users a proper share of the rising costs of the Federal airways and postal service, and to support the highway program at an increased level. 9. Recommendations to extend for another year present corporation income and excise tax rates. 10. A constructive legislative program to achieve improvements in existing laws relating to governmental activities and to initiate needed actions to improve and safeguard the interests of our people. In short, this budget and the proposals it makes for legislative action provide for significant advances in many aspects of national security and welfare. The budget presents a balanced program which recognizes the priorities appropriate within an aggregate of Federal expenditures that we can soundly support. I believe that the American people have made their wishes clear: The Federal Government should conduct its financial affairs with a high sense of responsibility, vigorously meeting the Nation's needs and opportunities within its proper sphere while at the same time exercising a prudent discipline in matters of borrowing and spending, and in incurring liabilities for the future. BUDGET TOTALS During the present fiscal year we have made encouraging progress in achieving sound fiscal policy objectives. The deficit of $I2.4 billion in fiscal I959, which was largely caused by the recession, is expected to be followed by a surplus of $217 million in the current year. To safeguard this small surplus, I am directing all Government departments and agen39 (I 13 Public Papers of the Presidents cies to exercise strict controls over the expenditure of Federal funds. Even so, the slender margin of surplus can be attained only if economic growth is not interrupted. For the fiscal year 196 I, I am proposing a budget surplus of $4.2 billion to be applied to debt retirement. In my judgment this is the only sound course. Unless some amounts are applied to the reduction of debt in prosperous periods, we can expect an ever larger public debt if future emergencies or recessions again produce deficits. In times of prosperity, such as we anticipate in the coming year, sound fiscal and economic policy requires a budget surplus to help counteract inflationary pressures, to ease conditions in capital and credit markets, and to increase the supply of savings available for the productive investment so essential to continued economic growth. The budget recommendations for 1961 lay the groundwork for a sound and flexible fiscal policy in the years ahead. A continuance of economic prosperity in 1962 and later years can be expected to bring with it further increases in Federal revenues. If expenditures are held to the levels I am proposing for 1961 and reasonable restraint is exercised in the future, higher revenues in later years will give the next administration and the next Congress the choice they should rightly have in deciding between reductions in the public debt and lightening of the tax burden, or both. Soundly conceived tax revision can then be approached on a comprehensive and orderly basis, rather than by haphazard piecemeal changes, and can be accomplished within a setting of economic and fiscal stability. Budget expenditures in 1961 are estimated at $79.8 billion, which is $1.4 billion more than the 1960 level. The total increase is attributable to (I) an increase of more than $I billion in relatively uncontrollable expenditures for farm price supports fixed by law, interest on the public debt, veterans compensation and pensions, and public assistance grants, and (2) an increase of about $500 million in expenditures because of commitments made in prior years for Federal housing programs, for civil public works projects and other construction, for loans under the mutual security program, and for other programs. New activities and expansion of certain other programs have been included on a selective basis of need. These increases are offset by reductions in other existing programs, including the proposed elimination of the postal deficit. New obligational authority recommended for the fiscal year 1961 totals 40 Dwight D. Eisenhower, i960 q I3 $79.4 billion. This is $306 million less than the amounts already enacted and recommended for i960, and $401 million less than estimated expenditures in 196I. Budget receipts under existing and proposed legislation are expected to rise substantially to $84 billion in i96i. This compares with the revised estimate of $78.6 billion for i960 and actual receipts of $68.3 billion in I959. MANAGEMENT OF THE PUBLIC DEBT Achievement of the proposed budget surplus will provide an opportunity to offset part of the deficits incurred in the fiscal years I 958 and I 959 largely because of the recession. The corresponding reduction of the public debt will reduce Government competition with private industry, individuals, and State and local governments for investment funds and will help ease the pressure on interest rates. Along with the recommended removal of the interest rate ceiling on long-term Federal debt, this will help hold down budget expenditures for interest, which now amount to almost one-eighth of the whole budget. Statutory debt limit.-It is estimated that the public debt, which stood at $284.7 billion on June 30, I959, will be $284.5 billion on June 30, i960, and will decline to $280 billion at the end of fiscal i96i. Thus, the budget surplus estimated for fiscal I96i will permit the Government to end the year with desirable operating leeway within the permanent debt limit of $285 billion. However, the fluctuating seasonal pattern in receipts will again require a temporary increase in the debt limit during the fiscal year i96i, since the present temporary limit of $295 billion expires on June 30, I 960. It is expected that the request for a new temporary limit will be for less than the present $295 billion if the Congress accepts my budgetary proposals. Interest ceiling.-Effective management of a debt of this size requires a reasonable distribution among securities maturing at different times. Three-fourths of all marketable Treasury securities outstanding today come due in less than five years, of which $8o billion will mature in less than a year. As long as the rate that would have to be paid on newly issued bonds exceeds the present statutory ceiling of 4Y4 %, it is impossible to issue and sell any marketable securities of over five years' maturity. Exclusive reliance on borrowing in a limited sector of the market is an expensive and inefficient way to manage the debt. Inflationary pressures 4I (I I 3 Public Papers of the Presidents increase as the volume of short-term and hence highly liquid securities mounts, especially if these securities are acquired by commercial banks. Further, effective monetary policy becomes more difficult when the Treasury has to refinance often. To make possible prudent and flexible management of the public debt, to permit sale of a modest amount of intermediate and longer term bonds when market conditions warrant such action, and to keep the average maturity of the debt from constantly shortening, it is imperative that the Congress immediately act to remove the 42-year-old 4/4% limitation on interest rates on Government securities maturing after five years. BUDGET RECEIPTS Estimated budget receipts of $84 billion in the fiscal year 1961 assume a high and rising level of economic activity in calendar year 1960. Specifically, this revenue estimate is consistent with an increase in the gross national product from about $480 billion for calendar I 959 to about $5 10 billion for calendar 1960. Personal incomes and corporate profits are expected to rise considerably beyond last year's levels, which were depressed somewhat by the long duration of the steel strike. The accompanying table shows the sources of Government receipts for the fiscal years 1 959, 1 960, and 1 96 1. BUDGET RECEIPTS [Fiscal years. In billions] I959 96o0 i961 Source actual estimate estimate Individual income taxes........................... $36. 7 $40. 3 $43. 7 Corporation income taxes....................... 17. 3 22. 2 23. 5 Excise taxes..................................... 8. 5 9. I 9. 5 All other receipts................................... 5. 8 7. 0 7. 3 Total...................................... 68.3 78. 6 84. o The estimates for 1961 assume ( I ) extension of present tax rates and (2) the adoption of modifications recommended last year for certain tax laws. These are summarized in the following paragraphs. Extension of present tax rates.-In order to maintain Federal revenues, it is necessary that the present tax rates on corporation profits and certain excises be extended for another year beyond their scheduled expiration date of June 30, 1960. The scheduled reductions in the excise tax rates 42 Dwight D. Eisenhower, i960 I I3 on transportation of persons and the scheduled repeal of the tax on local telephone service, which were enacted in the last session of the Congress, should be similarly postponed. Improvement of the tax system.-The recent tax revision hearings of the Ways and Means Committee have provided valuable information bearing on changes in the tax laws. The Treasury will continue to work in cooperation with the committees of the Congress in developing sound and attainable proposals for long-range improvement of the tax laws. As the development of a comprehensive tax revision program will take time, the Congress should consider this year certain changes in the tax laws to correct inequities. These include amendments of the laws on taxation of cooperatives, now before the Congress, and a number of technical changes on which the Treasury Department has been working with committees of Congress. There is also before the Congress an amendment to prevent unintended and excessive depletion deductions resulting from the computation of percentage depletion allowances on the selling price of finished clay, cement products, and mineral products generally; unless the problem is satisfactorily resolved in a case now pending before the Supreme Court, the need for corrective legislation in this area will continue. Under existing law, administration of the depreciation provisions is being hampered by the attempts of some taxpayers to claim excessive depreciation before disposing of their property. If gain from the sale of depreciable personal property were treated as ordinary income, the advantage gained in claiming excessive depreciation deductions would be materially reduced and the taxpayer's judgment as to the useful life of his property could more readily be accepted. Accordingly, I recommend that consideration be given to a change in the law which would treat such gain as ordinary income to the extent of the depreciation deduction previously taken on the property. Aviation fuel taxes.-To help defray the cost of the Federal airways system, the effective excise tax rate on aviation gasoline should be promptly increased from 2 to 4%2 cents per gallon and an equivalent excise tax should be imposed on jet fuels, which now are untaxed. The conversion from piston engines to jets is resulting in serious revenue losses to the Government. These losses will increase unless the tax on jet fuels is promptly enacted. The revenues from all taxes on aviation fuels should be credited to general budget receipts, as a partial offset to the budgetary 43 q I 3 Public Papers of the Presidents costs of the airways system, and clearly should not be deposited in the highway trust fund. Changes in fees and charges.-The cost of other Federal programs which provide measurable special benefits to identifiable groups or individuals should be recovered through charges paid by beneficiaries rather than by taxes on the general public. Whenever feasible, fees or charges should be established so that the beneficiaries will pay the full cost of the special services they receive. To help accomplish this purpose, I have directed that further work be done by the departments and agencies on a carefully defined inventory of Federal services which convey such special benefits. In the meantime, the Congress is requested to act favorably on the postal rate proposals described in this message and on a number of other specific proposals now pending before it or planned to be submitted this year for increased fees or charges for special services. ESTIMATED SAVINGS TO THE GENERAL TAXPAYERS FROM MORE CHARGES [In millions] Proposal Increase postal rates...................................... Support highway expenditures by highway-user taxes: Replace future diversion of general excise taxes to trust fund with increased motor fuel tax or other user charges........ Transfer financing of forest and public land highways to trust fund................................................ Charge users for share of cost of Federal airways: Increase taxes on aviation fuels......................... Transfer aviation fuel taxes from highway trust fund to general fund................................................ Revise fees for noncompetitive oil and gas leases............. Recover administrative costs of Federal crop insurance........ Increase patent fees....................................... Increase miscellaneous fees now below costs................. Total savings..................................... ADEQUATE FEES AND Fiscal year i96i $554. 0 Full annual effect $554. 0 850. 0 39.0 36. o 72.0 88.o 17.0................ 3. 7 8. 0 693. 7 20. 0 14. 0 6.4 3. 7 8.9 I, 581. 0 RECEIPTS FROM AND PAYMENTS TO THE PUBLIC The program of responsible fiscal policy represented by a balanced budget with a substantial surplus is reinforced by an even greater surplus of total cash receipts from the public over cash payments to the public. 44 Dwight D. Eisenhower, 1960 In this more comprehensive measure of Federal financial activity, obtained by consolidating budget, trust fund, and certain other Federal transactions, receipts from the public are estimated at $I02.2 billion in 1961 and payments to the public at $96.3 billion, resulting in an excess of $5.9 billion of receipts. This excess of receipts will be used to repay cash the Government has previously borrowed from the public. Repayment of such debt owed to the public will be greater than the amount of public debt retired, because the Government trust funds are expected to add to their holdings of public debt securities to the extent that trust fund receipts exceed trust fund expenditures. This will reduce the debt held by the public in like amount by shifting ownership to the trust funds. For the fiscal year 1960, on the other hand, an excess of payments to the public of $542 million is estimated, despite the anticipated budget surplus of $217 million. This situation reflects the fact that total disbursements of trust funds will exceed their receipts in I960, notably in the old-age and survivors insurance, unemployment, and highway trust funds. FEDERAL GOVERNMENT RECEIPTS FROM AND PAYMENTS TO THE PUBLIC [Fiscal years. In billions] 1959 1960 1961 actual estimate estimate Receipts from the public........................ $8I. 7 $94. 8 $102. 2 Payments to the public........................... 94. 8 95. 3 96. 3 Excess of payments over receipts........... - 13. I -. 5......... Excess of receipts over payments........................... -.. 5.9 REVIEW OF MAJOR FUNCTIONS The following sections of this message discuss the legislative and budget recommendations for 1961 in terms of the major purposes which they fulfill. The following table compares the estimated expenditures for each of the nine major functional categories with the actual figures for 1959 and the latest estimate for 1960. The expenditure totals for 1960 and 1961 include expenditures under both existing and proposed legislation. The allowance for contingencies is intended to provide for unforeseen increases in existing programs, and for proposed new programs not separately itemized. 45 tewlston Public Library Lewiston, Maine (l I3 Public Papers of the Presidents BUDGET EXPENDITURES [Fiscal years. In millions] 1961 1 959 1 960 Percent Function actual estimate Estimate of total Major national security............... $46, 426 $45, 650 $45, 568 57. I International affairs and finance............ 3, 780 2, o66 2, 242 2. 8 Commerce and housing................... 3) 421 3, 002 2, 709 3. 4 Agriculture and agricultural resources.. 6, 529 5, I 13 5, 623 7. 0 Natural resources...................... I, 669 I, 785 I, 938 2. 4 Labor and welfare.................... 4 421 4, 441 4, 569 5. 7 Veterans services and benefits.............. 5, 174 5, 157 5, 471 6. 9 Interest.............................. 7) 67i 9, 385 9, 585 12. 0 General government.....................i, 606 I, 711 I 911 2. 4 Allowance for contingencies............................ 75 200. 3 Total............................ 80, 697 78) 383 79, 8i6 100. 0 The figures for 1 961 I allocate to the separate programs for the first time the dollar equivalent of expenditures for U.S. Government programs of foreign currencies received from the sale abroad of surplus U.S. agricultural commodities under Public Law 480. MAJOR NATIONAL SECURITY Our national objective remains as before-peace with justice for all peoples. Our hope is that the heavy burden of armaments on the world may be lightened. But we should not delude ourselves. In this era of nuclear weapons and intercontinental missiles, disarmament must be safeguarded and verifiable. The problems involved in achieving reductions of armaments with safety and justice to all nations are tremendous. Yet we must face up to these problems, for the only alternative is a world living on the edge of disaster. While seeking the true road to peace and disarmament we must remain strong. Our aim at this time is a level of military strength which, together with that of our allies, is sufficient to deter wars, large or small, while we strive to find a way to reduce the threat of war. This budget, in my judgment, does that. Expenditures of the Department of Defense in 1961 will continue to emphasize the modernization of our Armed Forces. Military assistance for our allies under the mutual security program will also reflect the grow46 Dwight D. Eisenhower, ig960 ( 13 ing importance of modern weapons and missiles in the continued strengthening of the free world defense forces. The Atomic Energy Commission is continuing its weapons programs on a high level and will move forward with research and development on the peaceful applications of atomic energy. Expenditures for stockpiling and for expansion of defense production will decline further, since most of the stockpile objectives have been met. DEPARTMENT OF DEFENSE-MILITARY.-New appropriations of $40,577 million are recommended for the military functions of the Department of Defense for 1961. Expenditures in 1961 are estimated at $40,995 million. These amounts exclude funds for the development of the Saturn space project which I have proposed be transferred to the National Aeronautics and Space Administration. MAJOR NATIONAL SECURITY [Fiscal years. In millions] Recommended Budget expenditures new obli- gational I 959 1 960o 1961 authority actual estimate estimate for 1961 Program or agency Department of Defense-Military: Military functions: Military personnel: Present programs............... $I i, 80I $i i, 959 Proposed legislation, retirement pay............................................. $12, 124 1 $1 I, 813 22 Operation and maintenance....... Procurement...................... Research, development, test, and evaluation.................... Construction...................... Revolving funds................. Subtotal...................... Military assistance................. Atomic energy...................... Stockpiling and expansion of defense production........................ Total......................... 10,o 384 10, 137 10, 321 14,410 I3,) 943 I3, 602 2, 859 I, 948 -169 41, 233 2, 340 2, 541 312 46, 426 3, 68o I, 670 -444 40, 945 i, 8oo 2, 675 230 45, 650 3, 9I7 I) 359 -350 40, 995 I,) 750 2, 689 I34 45, 568 24 10, 527 I3, o85 3, 9IO I) i88 30 40, 577 2, 000 2, 666 39 2 45, 282 1 Additional obligational authority available by transfer: $350 million. 2 Compares with new obligational authority of $45,517 million enacted for 1959 and $44,749 million (including $25 million in anticipated supplemental appropriations) estimated for i960. 47 Public Papers of the Presidents Strategy and tactics of the U.S. military forces are now undergoing one of the greatest transitions in history. The change of emphasis from conventional-type to missile-type warfare must be made with care, mindful that the one type of warfare cannot be safely neglected in favor of the other. Our military forces must be capable of contending successfully with any contingency which may be forced upon us, from limited emergencies to all-out nuclear general war. Forces and military personnel strength.-This budget will provide in the fiscal year i96i for the continued support of our forces at approximately the present level-a year-end strength of 2,489,000 men and women in the active forces. The forces to be supported include an Army of I4 divisions and 870,000 men; a Navy of 8I7 active ships and 6i9,000 men; a Marine Corps of 3 divisions and 3 air wings with 175,000 men; and an Air Force of 9i combat wings and 825,ooo men. If the reserve components are to serve effectively in time of war, their basic organization and objectives must conform to the changing character and missions of the active forces. Quality and combat readiness must take precedence over mere numbers. Under modern conditions, this is especially true of the ready reserve. I have requested the Secretary of Defense to reexamine the roles and missions of the reserve components in relation to those of the active forces and in the light of the changing requirements of modem warfare. Last year the Congress discontinued its previously imposed minimum personnel strength limitations on the Army Reserve. Similar restrictions on the strength of the Army National Guard contained in the i960 Department of Defense Appropriation Act should likewise be dropped. I strongly recommend to the Congress the avoidance of mandatory floors on the size of the reserve components so that we may have the flexibility to make adjustments in keeping with military necessity. I again proposed a reduction in the Army National Guard and Army Reserve-from their present strengths of 400,000 and 300,000, respectively, to 360,ooo and 270,000 by the end of the fiscal year ig6i. These strengths are considered adequate to meet the essential roles and missions of the reserves in support of our national security objectives. Military personnel costs.-About 30% of the expenditures for the Department of Defense in i96i are for military personnel costs, including pay for active, reserve, and retired military personnel. These expenditures are estimated to be $i2.i billion, an increase of $187 million over 48 I__ I Dwight D. Eisenhower, I960 1960, reflecting additional longevity pay of career personnel, more dependents, an increased number of men drawing proficiency pay, and social security tax increases (effective for the full year in 1961 compared with only 6 months in I960). Retired pay costs are increased by $94 million in 1961 over 1960, partly because of a substantial increase in the number of retired personnel. These increased costs are partially offset by a decrease of $56 million in expenditures for the reserve forces, largely because of the planned reduction in strength of the Army Reserve components during 1961. Traditionally, rates of pay for retired military personnel have been proportionate to current rates of pay for active personnel. The 1958 military pay act departed from this established formula by providing for a 6% increase rather than a proportionate increase for everyone retired prior to its effective date of June i, 1958. I endorse pending legislation that will restore the traditional relationship between retired and active duty pay rates. Operation and maintenance.-Expenditures for operating and maintaining the stations and equipment of the Armed Forces are estimated to be $10.3 billion in I96I, which is $I84 million more than in 1960. The increase stems largely from the growing complexity of and higher degree of maintenance required for newer weapons and equipment. A substantial increase is estimated in the cost of operating additional communications systems in the air defense program, as well as in all programs where speed and security of communications are essential. Also, the program for fleet modernization will be stepped up in 1961 causing an increase in expenditures. Further increases arise from the civilian employee health program enacted by the Congress last year. Other factors increasing operating costs include the higher unit cost of each flying hour, up I i % in two years, and of each steaming hour, up I5%. In total, these increases in operating costs outweigh the savings that result from declining programs and from economy measures, such as reduced numbers of units and installations, smaller inventories of major equipment, and improvements in the supply and distribution systems of the Armed Forces. In the budget message for 1959, and again for 1960, I recommended immediate repeal of section 6o0 of the Act of September 28, I951 (65 Stat. 365). This section prevents the military departments and the Office of Civil and Defense Mobilization from carrying out certain transactions 49 e 13 Public Papers of the Presidents involving real property unless they come into agreement with the Committees on Armed Services of the Senate and the House of Representatives. As I have stated previously, the Attorney General has advised me that this section violates fundamental constitutional principles. Accordingly, if it is not repealed by the Congress at its present session, I shall have no alternative thereafter but to direct the Secretary of Defense to disregard the section unless a court of competent jurisdiction determines otherwise. Basic long-line communications in Alaska are now provided through Federal facilities operated by the Army, Air Force, and Federal Aviation Agency. The growing communications needs of this new State can best be met, as they have in other States, through the operation and development of such facilities by private enterprise. Legislation has already been proposed to authorize the sale of these Government-owned systems in Alaska, and its early enactment is desirable. Procurement, research, and construction.-Approximately 45 % of the expenditures for the Department of Defense are for procurement, research, development, and construction programs. In 196 I, these expenditures are estimated at $18.9 billion, compared to $19.3 billion in 1960. The decreases, which are largely in construction and in aircraft procurement, are offset in part by increases for research and development and for procurement of other military equipment such as tanks, vehicles, guns, and electronic devices. Expenditures for shipbuilding are estimated at about the same level as in 1960. New obligational authority for 1961 recommended in this budget for aircraft procurement (excluding amounts for related research and construction) totals $4,753 million, which is $I,390 million below that enacted for 1960. On the other hand, the new authority of $3,825 million proposed for missile procurement (excluding research and construction) in 1961 is $581 million higher than for 1960. These contrasting trends in procurement reflect the anticipated changes in the composition and missions of our Armed Forces in the years ahead. The Department of Defense appropriation acts for the past several years have contained a rider which limits competitive bidding by firms in other countries on certain military supply items. As I have repeatedly stated, this provision is much more restrictive than the general law, popularly known as the Buy American Act. I urge once again that the Congress not reenact this rider. The task of providing a reasonable level of military strength, without 50 Dwight D. Eisenhower, 1960 endangering other vital aspects of our security, is greatly complicated by the swift pace of scientific progress. The last few years have witnessed what have been perhaps the most rapid advances in military technology in history. Some weapons systems have become obsolescent while still in production, and some while still under development. Furthermore, unexpectedly rapid progress or a technological breakthrough on any one weapon system, in itself, often diminishes the relative importance of other competitive systems. This has necessitated a continuous review and reevaluation of the defense program in order to redirect resources to the newer and more important weapons systems and to eliminate or reduce effort on weapons systems which have been overtaken by events. Thus, in the last few years, a number of programs which looked very promising at the time their development was commenced have since been completely eliminated. For example, the importance of the Regulus II, a very promising aerodynamic ship-to-surface missile designed to be launched by surfaced submarines, was greatly diminished by the successful acceleration of the much more advanced Polaris ballistic missile launched by submerged submarines. Another example is the recent cancellation of the F-io8, a long-range interceptor with a speed three times as great as the speed of sound, which was designed for use against manned bombers in the period of the midI960's. The substantial progress being made in ballistic missile technology is rapidly shifting the main threat from manned bombers to missiles. Considering the high cost of the F-i o8 system-over $4 billion for the force that had been planned-and the time period in which it would become operational, it was decided to stop further work on the project. Meanwhile, other air defense forces are being made effective, as described later in this message. The size and scope of other important programs have been reduced from earlier plans. Notable in this category are the Jupiter and Thor intermediate range ballistic missiles, which have been successfully developed, produced, and deployed, but the relative importance of which has diminished with the increasing availability of the Atlas intercontinental ballistic missile. The impact of technological factors is also illustrated by the history of the high-energy fuel program. This project was started at a time when there was a critical need for a high-energy fuel to provide an extra margin of range for high performance aircraft, particularly our heavy bombers. 60295-61 7 51 q 13 Public Papers of the Presidents Continuing technical problems involved in the use of this fuel, coupled with significant improvements in aircraft range through other means, have now raised serious questions about the value of the high-energy fuel program. As a result, the scope of this project has been sharply curtailed. These examples underscore the importance of even more searching evaluations of new major development programs and even more penetrating and far-ranging analyses of the potentialities of future technology. The cost of developing a major weapon system is now so enormous that the greatest care must be exercised in selecting new systems for development, in determining the most satisfactory rate of development, and in deciding the proper time at which either to place a system into production or to abandon it. Strategic forces.-The deterrent power of our Armed Forces comes from both their nuclear retaliatory capability and their capability to conduct other essential operations in any form of war. The first capability is represented by a combination of manned bombers, carrier-based aircraft, and intercontinental and intermediate range missiles. The second capability is represented by our deployed ground, naval, and air forces in essential forward areas, together with ready reserves capable of effecting early emergency reinforcement. The Strategic Air Command is the principal element of our long-range nuclear capability. One of the important and difficult decisions which had to be made in this budget concerned the role of the B-7o, a longrange supersonic bomber. This aircraft, which was planned for initial operational use about I965, would be complementary to but likewise competitive with the four strategic ballistic missile systems, all of which are scheduled to become available earlier. The first Atlas ICBM's are now operational, the first two Polaris submarines are expected to be operational this calendar year, and the first Titan ICBM's next year. The Minuteman solid-fueled ICBM is planned to be operational about midi963. By 1965, several or all of these systems will have been fully tested and their reliability established. Thus, the need for the B-7o as a strategic weapon system is doubtful. However, I am recommending that development work on the B-7o airframe and engines be continued. It is expected that in i963 two prototype aircraft will be available for flight testing. By that time we should be in a much better position to determine the value of that aircraft as a weapon system. 52 Dwight D. Eisenhower, 1960 ( I 3 I am recommending additional acquisitions of the improved version of the B-52 (the B-52H with the new turbofan engine) and procurement of the B-58 supersonic medium bomber, together with the supporting refueling tankers in each case. These additional modern bombers will replace some of the older B-47 medium bombers; one B-52 can do the work of several B-47's which it will replace. Funds are also included in this budget to continue the equipping of the B-52 wings with the Hound Dog air-to-surface missile. In the coming fiscal year additional quantities of Atlas, Titan, and Polaris missiles also will be procured. I am recommending funds for 3 additional Polaris submarines to be started in the coming fiscal year and for the advance procurement of long leadtime components on 3 more-making a total of 15 Polaris submarines and the appropriate number of missiles. Funds to continue the development and to initiate production of the first operational quantities of the Minuteman are also included in this budget. Thus, four strategic ballistic missile systems will be in development and production during the coming fiscal year. These, together with the manned bomber force, the carrier-based aircraft, the intermediate range ballistic missiles, and the tactical aircraft deployed abroad, ensure our continued capability to retaliate effectively in the event of an attack upon ourselves or our allies. In order to ensure, insofar as practicable, the safety and readiness of these forces, we have substantially completed the dispersal of Strategic Air Command aircraft and the construction of alert facilities. These measures will permit a large portion of all our manned bombers and supporting tankers to get off the ground within I5 minutes after receiving warning of an attack. I have also authorized the Department of Defense to begin to acquire a standby airborne alert capability for the heavy bombers. This will entail the procurement of extra engines and spare parts, and the training of the heavy bomber wings with the ability to conduct an airborne alert. It is neither necessary nor practical to fly a continuous airborne alert at this time. Such a procedure would, over a relatively short period of time, seriously degrade our overall capability to respond to attack. What I am recommending is a capability to fly such an alert if the need should arise and to maintain that alert for a reasonable period of time until the situation which necessitated it becomes clarified. 53 e I3 Public Papers of the Presidents Attention is also being given to the safety and readiness of our landbased strategic missile forces. Except for the first several squadrons, strategic missiles will be dispersed in hardened underground sites. Measures are also being taken to shorten the reaction time of liquid-fueled missiles. The Minuteman, because it will be solid fueled, will have a quick reaction time and will lend itself to mobile use. The solid-fueled Polaris to be carried in submarines at sea is by its very nature highly invulnerable. Air defense forces.-Much progress has been made in increasing the effectiveness of the North American Air Defense Command organized in I957 as an integrated command of the United States and Canadian forces. The U.S. military elements-consisting of parts of all of our armed services-are integrated with Canada's Air Defence Command for maintaining an air defense capability for the entire North American Continent. While we pay increasing attention to the growing threat of a potential enemy's ballistic missiles we should not lose sight of the fact that for the time being the manned bomber is the major threat. Although some $ I 7 billion has already been invested in defense systems against manned bombers, excluding the cost of personnel and operation and maintenance, certain segments have yet to be completed. These were described in the Department of Defense air defense plan presented to the Congress last year. The funds recommended in this budget will substantially complete the programs outlined in that plan. Specifically, the last major elements of the Nike-Hercules surface-to-air missile program will be financed in i96i and the Bomarc interceptor missile program will approach completion. The related radar warning, electronic control, and communication systems will also be further equipped and modernized. In response to the increasing missile threat, we are pressing to completion a new system for the detection of ballistic missile attack-the ballistic missile early warning system. Construction has been under way for the last two years and the first segment is expected to be in operation in about a year. To provide for an active defense against ballistic missile attack, I am recommending the continued development of the Nike-Zeus system, but it will not be placed in production during the coming fiscal year during which further testing will be carried out. The Nike-Zeus system is one of the most difficult undertakings ever attempted by this country. The technical problems involved in detecting, 54 Dwight D. Eisenhower, 1960 4T I3 tracking, and computing the course of the incoming ballistic missile and in guiding the intercepting Zeus missile to its target-all within a few minutes-are indeed enormous. Much thought and study have been given to all of these factors and it is the consensus of my technical and military advisers that the system should be carefully tested before production is begun and facilities are constructed for its deployment. Accordingly, I am recommending sufficient funds in this budget to provide for the essential phases of such testing. Pending the results of such testing, the $I37 million appropriated last year by the Congress for initial production steps for the Nike-Zeus system will not be used. Sea control forces.-Control of sea and ocean areas and sea lanes of communication is an integral element in the maintenance of our national security. The naval forces which carry the primary responsibility for this mission will consist of 817 combatant and support ships, I6 attack carrier air groups, I i antisubmarine air groups, and 41 patrol and warning air squadrons. From new construction and conversion programs started in prior years, the Navy will receive during fiscal year I 96 I an unusually large number of modern ships. These will include the fifth and sixth Forrestal-class attack carriers, the first nuclear-powered cruiser, nine guided missile destroyers, seven guided missile frigates, and six nuclear-powered submarines. Three more Polaris ballistic missile submarines and a converted guided missile cruiser will also be commissioned. For the coming fiscal year I am recommending the construction of 20 new ships and conversions or modernizations of I5 others. Included among the new ships is an attack carrier. It is planned to construct this carrier with a conventional rather than a nuclear powerplant. While it is generally agreed that a nuclear-powered attack carrier has certain military advantages, such as extended range and endurance at high sustained speeds, these advantages are not overriding as in the case of a submarine. In a submarine, nuclear power provides the critical advantage of almost unlimited operation, submerged at high speeds. This enables nuclear-powered submarines to carry out missions which no conventionally powered submarine, no matter how modem, could accomplish. The advantages of nuclear power with respect to the carrier, however, are not comparable. The primary requirement in a carrier is up-to-date facilities to operate, safely and effectively, the most modern naval aircraft. 55 Public Papers of the Presidents Use of a conventional powerplant will in no way prevent a carrier from functioning as a completely modern and mobile base for fleet aircraft for its foreseeable life. The additional $130 million which a nuclear-powered carrier would cost can be used to much greater advantage for other purposes. I therefore strongly urge the Congress to support this request for a conventionally powered aircraft carrier. Tactical forces.-Elements of the ground, naval, and air forces comprise the tactical forces which are available to deal with cold war emergencies and limited war situations, in addition to performing essential tasks in the event of general war. Recommendations made in this budget provide funds for modernization and improvement in the effectiveness of our tactical forces. Increased emphasis has been given in this budget to improving the mobility and firepower of the 14 Army divisions and other active combat elements of the Army and the 3 Marine Corps divisions. Additional quantities of new rifles and machineguns employing the standard NATO ammunition will be procured, as will combat and tactical vehicles of all kinds, including the new M6o tank, the MI 13 armored personnel carrier, self-propelled howitzers, trucks and jeeps. In recognition of the value of artillery in both nuclear and nonnuclear warfare, an entire new family of self-propelled artillery is introduced with this budget. This new artillery is lighter, more mobile, and, utilizing new ammunition, will have greater range than that of types currently available. The Army and Marine Corps will also buy a wide variety of guided missiles and rockets such as: Sergeant, Honest John, Little John, and Lacrosse for medium and close range ground fire support; Davy Crockett for an integral infantry-unit close-range atomic support weapon; and Hawk and Redeye for defense of field forces against air attack. Army aircraft procurement proposed for 1961 is more than 35% higher than for the current year, and includes funds for surveillance aircraft and for utility and medium cargo helicopters. The tactical forces of the Army are supported by the tactical air wings of the Air Force which will also be provided with an increased capability under these budget recommendations. Funds are provided for increased procurement of F-Io5 supersonic all-weather fighter bombers. These aircraft, with their low-altitude handling characteristics and large carrying capacities for both nuclear and nonnuclear weapons, will strengthen significantly the air support available to the Army ground units. 56 Dwight D. Eisenhower, 1960 (I I 3 The three Marine divisions are tactically supported by three Marine aircraft wings, which will also receive quantities of new aircraft. Military assistance.-The ability of the free world to deter aggression depends on the combined strength and determination of many countries. The total forces of the countries receiving aid under the military assistance program include about 5 million Army troops, 2,200 combatant ships, and over 25,ooo aircraft, about half of which are jet. These forces make a vital contribution to the security of the free world, including the United States. A committee of distinguished private citizens, the President's Committee to Study the United States Military Assistance Program, conducted an extensive and comprehensive analysis of the mutual security program during the last year. I have previously transmitted the reports of the Committee to the Congress. Many of the significant findings and recommendations of this group have been put into effect by the executive agencies; others are in the process of implementation. The military assistance program has been budgeted in i96i with other activities and programs of the Department of Defense, and major changes are being made in the management, organization, and programing of military assistance. Last spring I mentioned the possibility of requesting a supplemental appropriation as suggested by the Committee largely to expedite modernization of NATO forces. However, in view of the time factor involved in securing a separate authorization and appropriation for i960, a supplemental request this year is not practical. The new obligational authority of $2 billion recommended for fiscal year I 96 I for the military assistance program will provide the training and quantities of materiel required to support the forces in the countries receiving aid. Because of the long leadtime required for many items, procurement must be started in i96i in order to provide the necessary deliveries in future years. During recent years, deliveries have been maintained only by drawing down the backlog of undelivered items by an amount ranging from $500 to $800 million per year. The backlog has now been reduced to the point where adequate deliveries in the future must depend on new appropriations. The defense of Western Europe in this era of modern weapons is costly and must be accomplished through the combined efforts of all NATO countries. Many of these countries have now assumed the financial re57 I I3 Public Papers of the Presidents sponsibility for producing or purchasing conventional arms and equipment which the United States previously supplied. At the same time, the 1961 military assistance program squarely faces the pressing need for new and costly weapons for which the free world still looks for help from the United States. In addition, it provides for an intensified training effort to assure effective use and maintenance of the new equipment by allied forces. This budget also provides for military assistance to countries which are building defenses against aggression and subversion in other parts of the world. These countries border on aggressive regimes, or are confronted with strong internal subversive elements. Many of them have joined in mutual defense organizations such as the Southeast Asia Treaty Organization (SEATO) and the Central Treaty Organization (CENTO), or with the United States in bilateral defense agreements. Assistance to these countries, most of which are in the Near East and the Far East, emphasizes primarily the strengthening of conventional forces in keeping with the nature of the threat in each area. ATOMIC ENERGY ACTIVITIES.-In 1961 the expenditures for the Atomic Energy Commission are expected to remain at the 1960 level of about $2.7 billion. Substantial increases for research and development activities will be offset by reductions in procurement of uranium ore concentrates from United States and Canadian producers. These reductions will bring ore supplies into better balance with production requirements. Development and production of nuclear weapons in 1961 will remain at the high levels of previous years. The vigorous development of military reactors for a variety of propulsion and power uses will continue. When the land-based prototype reactor for a destroyer is placed into operation in 1961 along with four other naval prototype reactors now operating, nuclear powerplants will be available for major types of naval combatant ships. Emphasis in naval reactor development in 1961 will be placed primarily on development of improved and longer lived reactor fuel. The development of nuclear ramjet engines for missiles, of nuclear aircraft engines, and of nuclear electric powerplants for use at remote military bases will be carried forward. Peaceful uses of atomic energy.-Expenditures in 1961 for development of civilian electric power from atomic energy are estimated at $250 million. Of this amount, $185 million is for research and development and $65 million is for construction of civilian power reactors and related 58 Dwight D. Eisenhower, 1960 q I3 development facilities. The estimated expenditures include amounts from proposed new appropriations of $40 million for assistance to private and public power groups in developing and building demonstration nuclear powerplants, and alternatively for such direct Government construction as may be considered necessary. The number, type, and size of reactors built and the nature of the assistance provided will be determined by the Commission after considering the state of technology and the cooperation proposed by industry. Expenditures by the Commission for research in the physical and life sciences in I96I will again increase substantially to over $2IO million. This level of research will help the United States to continue its leadership in the study of the behavior of the basic matter of the universe and the effects of radiation on man and his environment. The largest part of the increase will be used to place in operation in the next i8 months three new particle accelerators in the multibillion electron-volt energy range, including the alternating gradient synchrotron at Brookhaven National Laboratory. In support of the civilian space program, the Atomic Energy Commission will continue development of nuclear-powered rockets and small, long-lived nuclear power sources for space vehicles. Development work on thermonuclear power and on applications of nuclear explosives to a variety of civilian uses will continue in I 96 I. STOCKPILING AND DEFENSE PRODUCTION EXPANSION.-Most of the objectives for the stockpile of strategic and critical materials have been met. Receipts of materials under contracts to promote expansion of defense production are continuing at a reduced rate, as the number of such contracts still in effect declines. Hence, expenditures for stockpiling and expansion of defense production are estimated to decline from $230 million in I 960 to $ I 34 million in I 96 I. Amendments to outstanding contracts are now being negotiated where practicable, so as to minimize the delivery of materials no longer required for stockpiling. Arrangements are also under way to dispose of materials excess to stockpile objectives whenever disposal will not seriously disrupt markets or adversely affect our international relations. INTERNATIONAL AFFAIRS AND FINANCE The United States is continuing to support programs to maintain world peace and to improve economic conditions throughout the free 60295-61 8 59 (I I 3 Public Papers of the Presidents world. In helping to improve economic conditions, we are being joined in larger measure by our friends in the free world who have now reached a high level of prosperity after recovering from the ravages of war. Accordingly, multilateral programs are being expanded. At the same time, the pressing need for economic development requires the continuation of substantial economic assistance under the mutual security program. Expenditures for international affairs and finance are estimated to be $2.2 billion in the fiscal year i96i. This amount is $I77 million higher than estimated expenditures for 1960, mainly because of larger disbursements by the Development Loan Fund under prior commitments. MUTUAL SECURITY PROGRAM.-Through the mutual security program as a whole the United States helps promote stability and economic growth in less-developed countries and helps strengthen the defenses of the free world. For these purposes new obligational authority of $4,175 million is recommended in fiscal year i96i, an increase of $949 million over the amount enacted for i960 (of which $700 million is for military assistance). Expenditures are estimated to be $3,450 million, an increase of $ I oo million over I 960. The military assistance portion of this program is carried in the Department of Defense chapter and has been discussed in the major national security section of this message. Economic assistance is discussed in the following paragraphs in this section. Development Loan Fund.-The Development Loan Fund was established in I957 in order to provide capital to less-developed countries, when capital is not available from other sources. The capital is provided on favorable terms, often including the option to repay in the borrower's own currency. By the end of the fiscal year i960, the Fund will have made commitments for an estimated I48 loans totaling some $1,400 million. More than three-fourths of the projects it is financing are for roads, railroads, electric power generation, and industry, including industrial development banks. Because many of these projects require several years for construction, expenditures have thus far been relatively small. However, in the fiscal year I96i they are estimated to be $300 million, an increase of $I25 million over i960. New obligational authority of $700 million is requested for I96I, an increase of $I50 million over the amount enacted for i960. This will provide the loan funds essential to our foreign policy objective of assisting in the economic growth of the lessdeveloped countries of the free world. 6o Dwight D. Eisenhower, I960 q I3 Technical cooperation.-Technical and administrative skills are no less important for the newly developing countries than capital. Through the technical cooperation program, American experts are sent abroad to transmit the skills required in a modem economy and foreign technicians are brought to the United States for training. INTERNATIONAL AFFAIRS AND FINANCE [Fiscal years. In millions] Budget expenditures 1959 960 I 96 actual estimate estimate Program or agency Economic and technical development: Mutual security-economic: Development Loan Fund................ Technical cooperation................... Defense support........................ Special assistance....................... O ther................................. Contingencies.......................... Subtotal, mutual security-economic..... International Monetary Fund subscription... Inter-American Development Bank......... Export-Import Bank...................... Emergency relief abroad and other......... Conduct of foreign affairs: Administration of foreign affairs............ Philippine claims: Present program........................ Proposed legislation..................... Other................................... Foreign information and exchange activities: United States Information Agency.......... Department of State, exchange of persons.... President's special international program..... Total................................ $66 i69 88I 257 120 30 I, 524 1, 375 390 II3 $I75 I70 740 250 I 05 I I0 I, 550 80 -56 I40 $300 I75 730 255 11o I30 I, 700 -7 I31 Recommended new obligational authority for I961 $700 2o6 724 268 10I I75 2, I75.................. I I6 2II 205 197 205 24 2 5 49 3 109 I o I124 22 24 36 8 7 8 3, 780 2, o66 2, 242 49 2 I24 36 9 1 2, 715 1 Compares with new obligational authority of $6,982 million enacted for 1959 and $2,697 million (including $49 million of anticipated supplemental appropriations) estimated for 1960. The 1959 authorization included $3,175 million for the International Bank for Reconstruction and Development and $1,375 million for the International Monetary Fund. f 1I3 Public Papers of the Presidents MUTUAL SECURITY PROGRAM [Fiscal years. In millions] Recommended Budget expenditures new obligational 1959 1 960 1961 authority Program actual estimate estimate for I 961 Military assistance.......................... $2, 340 $I, 8oo00 $i, 750 $2, 000 Economic (including technical) assistance........I, 524 I, 550 I, 700 2, 175 Total, mutual security................. 3, 864 3, 350 3, 450 1 4, 175 1 Compares with new obligational authority of $3,448 million enacted for I959 ($1,515 million military, $1,933 million economic) and $3,226 million enacted for 1960 ($1,300 million military, $1,926 million economic). For the fiscal year 1961, new obligational authority of $206 million is requested, which is $25 million over the amount enacted for i960, in order to permit an increase in the bilateral programs. It will also permit a higher contribution to the United Nations technical assistance program and the related special fund; as other governments increase their contributions for the United Nations programs, the United States contribution, which is two-fifths of the total, also increases. Defense support.-Many of the less-developed countries participating in the common defense maintain large military forces whose cost imposes a severe strain upon their limited economic resources. In order to help maintain political and economic stability and to prevent the cost of necessary defensive forces from unduly hindering economic development, the United States provides economic aid principally by supplying commodities for consumption and raw materials and machinery for industrial production. For the fiscal year 1961, new obligational authority of $724 million is requested, an increase of $29 million over the amount enacted for 1960. Special assistance.-New obligational authority of $268 million is requested for economic assistance to promote economic and political stability in various countries of the free world where the United States is not supporting military forces, and for certain other special programs. In several instances, this assistance indirectly relates to military bases maintained by the United States. The appropriation recommended for special assistance in 1961 is $23 million above the amount enacted for 1960. Additional programs are 62 Dwight D. Eisenhower, g960 Q 13 proposed to help improve conditions in Africa, largely for education, public health, and administration. Increased funds will also be devoted to certain worldwide health programs in conjunction with the World Health Organization of the United Nations. The largest of these is the malaria eradication program, now in its fourth year. In addition numerous public health projects are supported through technical cooperation. Other mutual security programs.-Other programs include assistance to refugees and escapees; grants of atomic research equipment, including reactors, to the less-developed countries for training and research in nuclear physics; support of the NATO science program; and the United States contribution to the United Nations Children's Fund. For the fiscal year I961, new obligational authority of $IoI million is requested, an increase of $I million above the amounts enacted for I960. Contingencies.-Experience has shown that economic and military assistance is also required in some international situations which cannot be foreseen or for which it is not possible to estimate in advance the specific amount needed. To cover situations of this type, new obligational authority of $175 million is requested. OTHER ECONOMIC AND TECHNICAL DEVELOPMENT.-More resources from countries of the free world are being channeled into economic development by increasing the capital funds of international organizations. In the past year the capital of the International Bank for Reconstruction and Development was doubled and that of the International Monetary Fund increased by half. The Inter-American Development Bank, with planned total resources of $i billion, including $450 million from the United States, is expected to begin operations before the close of this fiscal year. Expenditures of $80 million are estimated in the fiscal year 1960 as the first installment of the U.S. cash investment in the Bank. In addition, guarantee authority of $200 million will be made available, on the basis of which the Bank can sell its bonds to private investors. Last October the Governors of the International Bank for Reconstruction and Development unanimously approved in principle a U.S. proposal for an International Development Association, which will be closely affiliated with the Bank. Under this proposal, the Association will make loans on more flexible terms than the Bank is able to offer under its charter, such as loans repayable in the currency of the borrow63 ( I3 Public Papers of the Presidents ing country. In addition, it is expected that the charter of the Association will contain provisions under which a member could provide to the Association, for use in lending operations, other member country currencies which it holds. The draft charter of the Association is being prepared and will probably be submitted to the member governments early this year. Legislation authorizing U.S. participation and making financial provision for membership will be transmitted to the Congress at the appropriate time. Private investment.-The United States is trying to encourage more reliance on private enterprise in foreign economic development. During the past year, the Department of State and the Business Advisory Council of the Department of Commerce have both completed special studies on ways to increase the role of private investment and management abroad. Tax treaties, with investment incentive clauses, are now being negotiated with many countries. More trade missions are being sent abroad. Several of the less-developed countries are opening business information offices in this country. As a result of these various activities, more private investment in the less-developed areas should be forthcoming. To provide an additional incentive, U.S. taxation of income earned in the less-developed areas only should be deferred until repatriated. Export-Import Bank.-The oldest Federal agency specializing in foreign lending and the largest in terms of foreign loan volume is the ExportImport Bank. In the fiscal year I96I the Bank plans to devote an increasing share of its program to transactions which support economic development abroad. At the same time the Bank plans to finance its operations without requiring net budgetary expenditures by encouraging more participation by private lenders in its loan program and by using funds obtained from repayments on its large outstanding portfolio. Eligibility for assistance.-Amendments to the Battle Act to revise the eligibility requirements for assistance to certain countries are pending before the Congress. It is highly desirable that they be enacted. CONDUCT OF FOREIGN AFFAIRS.-The Department of State is making plans to strengthen further the administration of foreign affairs in the fiscal year i96i. The disarmament staff is being expanded in preparation for discussions on disarmament soon to begin in Geneva and for the continuation of the negotiations on the suspension of nuclear tests. Language training programs will also be expanded. New diplomatic and consular posts will be opened in Africa, Latin America, South Asia, and 64 Dwight D. Eisenhower, 1960 Eastern Europe. For these and other activities, new obligational authority of $205 million is requested for the fiscal year i96i. Legislation is recommended to remove certain reservations on acceptance by the United States of jurisdiction of the International Court of Justice (the World Court). Legislation will be requested for payment in the fiscal year i96i of certain war damage claims of the Philippine Government against the United States in the amount of $73 million. These claims will be partially offset by an amount, now estimated at approximately $24 million, owed to the United States by the Philippine Government. Pending legislation should be enacted in fiscal year i960 to authorize compensation of $6 million to displaced residents of the Bonin Islands. FOREIGN INFORMATION AND EXCHANGE ACTIVITIES.-New obligational authority totaling $i68 million is requested for foreign information and exchange activities in the fiscal year i96i. The United States Information Agency plans to expand its programs in Africa and Latin America, including construction of a new Voice of America transmitter in Africa. The Agency will make greater use of the growing number of television facilities overseas. The expansion of domestic radio transmitting facilities, begun last year in order to improve oversea reception, will continue. Exchanges of key persons with about 8o other countries will be increased, with special emphasis on leaders and teachers. COMMERCE AND HOUSING The improvements made in recent years in Federal programs for outer space exploration, aviation, highways, the postal service, housing, urban renewal, and small business will be further extended by this budget. Expenditures for all commerce and housing programs in the fiscal year i96i are estimated at $2.7 billion, which is $293 million less than the estimated expenditures for i960. Proposed legislation to provide adequate postal rates will reduce sharply the net budget expenditures of the Post Office Department. Expenditures for other programs, however, especially space exploration and the promotion of aviation, will increase substantially. SPACE EXPLORATION AND FLIGHT TECHNOLOGY.-The National Aeronautics and Space Administration is carrying forward the nonmilitary space projects started by the Department of Defense and has initiated additional programs that will lay the foundations for future exploration 65 (e 13 Public Papers of the Presidents and use of outer space. Estimated expenditures of $6oo million during the fiscal year i96i, nearly double the expenditures in i960, will carry forward the programs now under way and those becoming the agency's responsibility in I96I. Appropriations of $802 million for I96I, together with anticipated supplemental appropriations for i960 of $23 million to restore substantially the Congressional reduction in the space program last year, are recommended to finance these programs. Legislation is being submitted to authorize the appropriations required for i96i and to provide permanent authorization for later years. I am assigning to this new agency sole responsibility for the development of space booster vehicles of very high thrust, including Project Saturn. This assignment includes the transfer of certain facilities and personnel of the Army Ballistic Missiles Agency. With the imminent completion of the Jupiter missile project this outstanding group can concentrate on developing the large space vehicle systems essential to the exploration of space. Certain amendments to the National Aeronautics and Space Act of I958 will be proposed to clarify the organization and streamline the management of the space programs. At the present time Soviet scientists have the advantage in the weight of the payloads that they can hurl into space. This weight advantage stems from the earlier start of the Soviet development of very large rocket boosters that they considered necessary for their intercontinental ballistic missile program. Because of the relatively advanced state of our nuclear warheads, however, we were able, after a much later start, to develop an effective ICBM using a smaller rocket booster. Our space programs are based on a systematic and technically sound approach to the complicated scientific and engineering problems involved. This approach will assure continued demonstrable achievements. Project Mercury has a high priority and we should be ready to attempt actual manned space flights within the next two years. Progress on the development of very high thrust engines and the vehicles to use them will make it possible, in the not too distant future, to launch much larger space vehicles and thus extend the conquest of space. For the near future satellites and space probes will continue to depend primarily on Thor and Atlas missiles as boosters, with the Delta and Agena upper stages providing improved performance and reliability. These vehicles will make possible a wide variety of highly useful scientific experiments which will provide essential information for future explora66 Dwight D. Eisenhower, I960 1 13 COMMERCE AND HOUSING [Fiscal years. In millions] Recommended Budget expenditures new obligational I959 I960 196I authority Program or agency actual estimate estimate for 1961 Space exploration and flight technology....... $I45 $325 $6oo $802 Promotion of aviation: Federal Aviation Agency................... 441 567 68i 717 Civil Aeronautics Board................. 53 60 69 72 Promotion of water transportation: Department of Commerce................. 200 257 263 299 Coast Guard............................. 229 276 281 285 Panama Canal Company.................... 7 4 14......... Provision of highways......................... 30 45 1 3 (1) Postal service: Public service costs................................ 37 49 49 Postal deficit.............................. 774 567 554 554 Proposed rate revisions................................... - 554 554 Community development and facilities: Urban Renewal Administration............ 77 197 172 305 Other...................................... 3 39 31 27 Public housing programs..................... 97 130 148 159 Other aids to housing: Federal Savings and Loan Insurance Corporation: Under present legislation................. -41 -50 -57........ Proposed premium increase............................. -28......... Federal Housing Administration............ - 51 -76 -120......... Federal National Mortgage Association...... 842 56 I I I 150 College housing loans....................... 180 86 148......... Veterans housing loans...................... 13 230 -i2......... Farm housing loans and other.............. 43 -I22 36 I I Other aids to business: Small Business Administration.............. I07 102 120 66 Proposed area assistance legislation.................... I 57 Other................................... 32 48 48 64 Regulation of commerce and finance.......... 58 58 64 66 Civil and defense mobilization................ 46 56 68 76 Disaster loans and relief..................... 8 8 8......... Total................................ 3, 42I 3, 002 2, 709 2 3) 204 1 Reflects proposed financing of Federal-aid highways in national forests and public lands from highway trust fund. 2 Compares with new obligational authority of $2,929 million enacted for 1959 and $3,789 million (including $7I million of anticipated supplemental appropriations) estimated for 1960. 67 (I I3 Public Papers of the Presidents tion of outer space by manned and unmanned vehicles. Somewhat later the Centaur project will provide an Atlas-boosted space vehicle with further improved capabilities and establish the technology of very high energy propulsion for space vehicles. In all of these projects, the success of the space vehicle launchings depends on a strong continuing program of supporting research and ground testing. TRANSPORTATION AND COMMUNICATION.-The detailed review of transportation problems and policies which I requested last year is now nearing completion in the Department of Commerce. This study should provide a sound basis for administrative actions and for legislation that may be needed to assure adequate and balanced growth of all branches of the Nation's transportation system. Aviation.-Primarily because of the airways modernization program now under way, expenditures of the Federal Aviation Agency will increase by $I 14 million to an estimated $681 million in fiscal year 196. New obligational authority of $7I7 million is requested mainly for procurement and operation of radar equipment, airport landing aids, communications, and other facilities needed to handle the rapidly growing volume of air traffic safely and efficiently and for establishment and enforcement of air safety standards. Research and development activities are being accelerated to insure the further improvements in equipment and techniques required to meet future aviation needs. The Federal Aviation Agency is already making increasing use of military facilities, and steps are under way to achieve a closer integration of air defense and civil air traffic control networks. Over the next few years the Agency will also assume traffic control functions now performed by military personnel at airbases throughout the world, with significant savings in cost. Expenditures for subsidy payments to the airlines by the Civil Aeronautics Board are estimated at $69 million in 1961, an increase of $3 million, or 80%, over the $38 million actually spent in I958. Almost all of the subsidy will go to local service airlines, including helicopter operations in three major metropolitan areas and intra-Alaska service. This rise and the prospect of even higher subsidies in the future make necessary the consideration of proposals to reduce the dependence of these airlines on the Government. Airway user charges.-Consistent with the principle that special beneficiaries of Government programs should pay the cost of those benefits, the 68 Dwight D. Eisenhower, 1960 users of the Federal airways should ultimately be expected to pay their full share of rising capital and operating costs. Accordingly, the effective tax on aviation gasoline should be raised from 2 to 4Y2 cents per gallon and the same tax should also be levied on jet fuels, which are now taxfree. Receipts from all aviation fuel taxes should be retained in the general fund rather than transferred to the highway trust fund as at present. These actions will increase revenues to the general fund by an estimated $89 million in fiscal year i961. Promotion of water transportation.-Expenditures of the Department of Commerce to aid water transportation will be sharply higher in both i960 and i96i than in 1959, primarily because of higher levels of payments required under past commitments for ship operating and construction subsidies. A supplemental appropriation of $32 million will be requested for the current year to meet increased operating subsidy obligations caused by lower earnings of the shipping industry and to permit prompt payment of subsidies accrued. Efforts to maintain a U.S. merchant fleet adequate, along with the ships of our allies, to meet national defense requirements are seriously hampered by high operating costs. To preserve the capability of our merchant fleet without placing an undue burden on the taxpayer will require willingness by ship operators, maritime labor, and the Government to explore and adopt new solutions. This budget provides for expanded work on advanced ship designs that could bring sharply reduced operating costs. By extending the operation of war-built vessels, which comprise more than 70% of the subsidized fleet, over a somewhat longer period, the results of this research can be more fully exploited in replacement plans. The Secretary of Commerce is also undertaking a special study of sailing requirements and competitive conditions of maritime trade routes and services, in the hope of discovering opportunities to increase the benefits flowing from the public investment in this area. I repeat the request made last year that the 3 %2 % interest rate ceiling on ship mortgage loans made by the Maritime Administration be replaced by authority to charge the Government's full cost for such loans. Work will continue on widening sections of the Panama Canal from 300 to 5oo feet to facilitate the movement of increased ship traffic. Largely as a result of this program and the increased disbursements for the $20 million Balboa Bridge, which is being built to fulfill a treaty 69 (e I 3 Public Papers of the Presidents commitment with the Republic of Panama, expenditures of the Panama Canal Company in i96i will be $ io million higher than in i960. Highways.-Federal payments of $2,728 million from the highway trust fund in i96i will enable the States to proceed with construction of the Interstate System at a level consistent with the pay-as-you-build principle established by the Highway Revenue Act of I 956 and reaffirmed by the Congress in I959. Last year I recommended that highway fuel taxes be increased by i I2 cents per gallon for a period of five years to meet estimated expenditure requirements. The Congress after months of delay enacted an increase of only i cent for less than two years. As a result of both the delay and the failure to provide the full amount of revenue requested, the roadbuilding program has been slowed below a desirable rate of progress. The apportionments to the States for future construction had to be reduced and a plan had to be established to time reimbursements to the States so that the trust fund could be kept in balance. By timely action and planning, however, potential failures to reimburse States promptly for want of funds in the trust fund have been avoided, and equitable and proportionate programs in every State have been established. I urge the Congress again to increase the highway fuel tax by another one-half cent per gallon and to continue the tax at 472 cents until June 30, I964. This will permit the construction program for the Interstate System to proceed at a higher and more desirable level. I request repeal of the diversion of excise taxes enacted last year for the period July i, 196I, to June 30, I964. New reports giving estimates of the cost of completing the Interstate System and recommendations on the allocation of costs among future highway beneficiaries will become available in I 96 1. At the appropriate time, further recommendations will be made to the Congress for the ensuing conduct and financing of the program. A temporary advance of $359 million from the Treasury to the trust fund was necessary in fiscal i960 to balance out the monthly flow of revenues and expenditures within the fiscal year, but this will be repaid by June 30, i960. A similar temporary advance of $200 million will be required in the fiscal year i96i, repayable before the end of that year. During this session of the Congress, funds should be authorized for I962 and i963 for regular Federal-aid highway programs and for forest and public lands highways. In view of the limited resources available to the trust fund and the priority requirements of the Interstate System, 70 Dwight D. Eisenhower, 1960 ( I3 it is recommended that authorizations for the regular programs for each of these years be reduced to $900 million from $925 million provided for I96I. Annual authorizations of $33 million for forest highways and $3 million for public lands highways are also recommended. Finally, I again request that the financing of forest and public lands highways be transferred from the general fund to the highway trust fund. Most of these highways are integral parts of the Federal-aid systems, and they should be financed in the same way. Postal service.-The Post Office Department is intensifying its efforts to improve service and to hold down the persistent postal deficit while handling a growing volume of mail. Initial steps have been taken to mechanize mail processing and to reduce serious congestion at major distribution centers. Ultimately, modern mail processing plants will be established in all principal urban areas to assure prompt and efficient deliveries. The Postal Policy Act of 1958 established the policy that postal rates should be adjusted whenever necessary to recover postal expenses, excluding the costs of certain public services as fixed by appropriation acts. Over the past I3 fiscal years, I947-59, the Federal budget has had to finance postal deficits totaling $6.8 billion, which is almost half of the increase in the national debt during that time. At the average rate of interest on the outstanding debt the taxpayers are paying well over $200 million annually in interest for the unwillingness of the Congress to take timely action to increase postal rates. For fiscal 196I, a postal service deficit of $554 million is estimated with postage rates now in effect or scheduled, after designating $49 million as attributable to public services. Rate increases enacted in 1958 were substantially less than needed to meet the deficit at that time and made no allowance for the pay increase for postal employees then enacted. Since then, increased railroad rates (up $55 million), costs of modernization (up $80 million), and the new employee health insurance program ($39 million) have widened the gap between revenues and expenditures. Accordingly, legislation is again proposed to increase first-class and airmail rates by I cent and to raise other rates and fees by enough to cover the postal deficit. I urge the Congress to act promptly on these proposals, which will be submitted in the near future. HOUSING AND COMMUNITY DEVELOPMENT.-I have presented to each of the past two sessions of the Congress a comprehensive program of legisla 7 I (e I 3 Public Papers of the Presidents tion for the Government's housing and community development programs. Some of these recommendations were enacted in the Housing Act of I959. This year, legislation will be requested only for the authority necessary to continue important existing programs and provide necessary flexibility in interest rates. The authorization of additional funds for these programs should be subject to appropriation action. Urban renewal.-In the decade since Federal grants were first authorized, urban redevelopment has become recognized as essential to the future vitality of our cities, and planning has been initiated on 647 projects in 385 communities. However, only 26 projects have been completed. An additional 355 projects for which Federal funds have been obligated are now under way, but progress on many of these has been slow. The budget, accordingly, places major emphasis on accelerating program progress. Sixty-five projects are scheduled for completion in i960 and i96i. At the same time, the number of projects under way is expected to increase from 355 at the end of I 959 to 5 i0 at the end of i961. The acquisition of land for these projects in i96i is estimated at more than double, and the sale of land to redevelopers at nearly triple, the 1959 amounts. As a result of the increased rate of activity, a supplemental appropriation of $50 million will be necessary in the current year to pay capital grants for projects nearing completion under prior contracts. Since the Housing Act of I959 provided new contract authority for capital grants of $350 million for i960 and $300 million for i96i, no additional obligational authority will be necessary for this program for i96i. Public facility loans.-The authority of the Housing and Home Finance Agency to borrow $ioo million from the Treasury for loans to small communities for needed public facilities will be exhausted early in i96i. An additional $20 million will be required to meet loan applications through the end of the fiscal year i96i. Legislation is recommended to authorize the provision in annual appropriation acts of this amount and such future increases as may be necessary. Public housing programs.-By the end of fiscal year i96i, about 500,000 federally-aided public housing units will be occupied and an additional I25,000 units will be under contract for Federal contributions. In the allocation of new contracts authorized in the Housing Act of i959 emphasis is being given to projects which will be constructed in the near future. The I959 act authorized 37,ooo added units of public housing, to be available until allocated. Accordingly, no additional authorization 72 Dwight D. Eisenhower, 1960 (I I 3 is requested. Increases of $i8 million in i96i expenditures result primarily from rising Federal contributions to local authorities under past contracts. Federal Savings and Loan Insurance Corporation.-The share accounts of savings and loan associations insured by the Federal Savings and Loan Insurance Corporation have increased fivefold over the past i0 years. With a continuation of this rate of growth, the insurance reserve of the Corporation cannot reach levels commensurate with the mounting insurance liability without an increase in the present premium rate. I am, accordingly, recommending legislation to restore the higher premium rate in effect prior to I949, to remain in force until the reserve exceeds i % of the share accounts and borrowings of insured institutions. At the same time, the statutory goal of a reserve equal to 5%7 of such accounts and borrowings exceeds potential needs and should be reduced to 2%. In addition, the Corporation should be given authority to borrow from private sources, both to increase the available sources of funds to levels adequate to meet any temporary borrowing needs and to reduce its potential dependence upon the Federal Government. Insurance of private mortgages.-The mortgage insurance programs of the Federal Housing Administration will continue in i96i to underwrite a substantial share of the mortgages on residential housing. While it is difficult to forecast mortgage insurance requirements, the general mortgage insurance authorization of the Federal Housing Administration now appears to be adequate to meet demands for mortgage insurance until the next Congress is in session. Sharp fluctuations in the demand for mortgage insurance during recent years have caused the funds available for personnel under appropriation act limitations to be inadequate in periods of heavy demand to provide the staff required by the Federal Housing Administration for prompt service on applications. Supplemental funds are usually not made available in time to meet this problem. To correct this situation, appropriation language is being requested to permit use of additional income for such expenses when actual demand exceeds the budget estimate. Legislation should also be enacted to extend the authority for insurance of loans on home improvements. This program, which makes a major contribution to modernization of existing homes, would otherwise expire on October I, i960. Last year legislation was recommended to provide some flexibility in 73 e I3 Public Papers of the Presidents maximum interest rates on mortgages originated under the housing loan and guarantee programs of the Veterans Administration and under certain mortgage insurance programs of the Federal Housing Administration. The action taken by the Congress was inadequate, and some of these programs are now seriously hampered by their inability at present maximum interest rates to attract adequate private capital. The Veterans Administration should be given the same flexibility to adjust its interest rates to market conditions which is now possessed by the Federal Housing Administration in its basic mortgage insurance programs. In addition, the maximum interest rate of 4Y25% on insured mortgages on armed services family housing should be removed. Veterans housing loans.-The direct housing loan program of the Veterans Administration, which has been extended several times, terminates July 25, i960, and I am asking for no further authorization. At that time, over $i billion of loans will be outstanding, and the program will have provided over I50,000 loans to veterans. There is no longer justification for continuing this readjustment program. Mortgage purchases.-The authority of the Federal National Mortgage Association to borrow from the Treasury to purchase mortgages under its special assistance program will be exhausted during i961. I am recommending legislation which would permit future increases in authorizations to be subject to appropriation review. An additional $I50 million is requested for i96i for this program. The additional funds will be used chiefly to buy mortgages on housing in urban renewal areas, on housing for the relocation of displaced families, and on housing for the elderly. Special assistance for these mortgages is intended to be transitional, and an increasing proportion of total financing should in the future be obtained from private sources. With annual financing requirements in excess of $i billion already in sight for these programs, the need can be met only with the full and active support of local communities and private financial institutions. At the same time, mortgage purchases by the Association's secondary market operations trust fund will continue at high levels. Expenditures for such purchases are estimated at $I,047 million in i960 and $975 million in i96i. These purchases will be almost wholly financed through the sale of debentures to the public and the purchase of common stock 74 Dwight D. Eisenhower, I960 9 13 by mortgage sellers. Budget expenditures of $50 million, however, will be necessary for the additional Treasury purchases of the preferred stock of the Association required to support the mortgage purchase program. College housing.-No additional authorizations are proposed for the existing college housing direct loan program. The housing needs of our colleges and universities represent only a part of the need for new university facilities of all types. These needs should be considered as a whole and within the framework of the general problems of education. I have, accordingly, recommended the termination of the college housing program and the enactment of legislation authorizing a new program of grants and loan guarantees for college facilities, to be administered by the Department of Health, Education, and Welfare (discussed under labor and welfare programs). SMALL BUSINESS.-The increase in financial assistance to small businesses under the Small Business Investment Act of 1958 will continue in 1961. I recommend the enactment of legislation previously proposed to the Congress to encourage the formation of additional investment companies by liberalizing the authority of these companies, thus expanding the supply of private capital available to small businesses. Other loans by the Small Business Administration will continue at a high level, but less new obligational authority is recommended because repayments on outstanding loans will increase. Efforts to assist small businesses in obtaining a fair share of Federal Government procurement and surplus property will also continue. In order to facilitate small business financing, the Securities Act of 1933 should be amended to extend the privilege of simplified filings to a wider range of security issues. AREA ASSISTANCE.-Despite the rapid economic recovery in the Nation as a whole, unemployment remains high in a relatively small number of local areas. The chronic problems in these communities reflect primarily basic changes in consumer buying habits, production methods, and industry location patterns. Some localities and States have properly taken the initiative in measures designed to meet these problems. In addition, the Department of Commerce, with the cooperation of 13 other Federal agencies, is intensifying existing Federal programs to encourage and support this local initiative. More help is required. Therefore, for the past four years, I have requested expanded legislative authority, primarily for loans and grants, to supplement existing Federal, 75 (I I 3 Public Papers of the Presidents State, and local programs. Prompt enactment of this legislation is important. The budget includes an estimated $57 million in appropriations as the initial amount necessary to provide the proposed additional Federal aid. REGULATION OF COMMERCE AND FINANCE.-The general growth of the economy, newly legislated responsibilities, and the increased complexity of the problems which confront the regulatory agencies require increases in funds for most of them. The largest single increase in this category will permit the Federal Communications Commission to make a thorough study of ultrahigh frequency television to determine whether channels in this range can be used to meet the needs of the expanding television industry. I again recommend legislation to strengthen the antitrust laws, including extending Federal regulation to bank mergers accomplished through the acquisition of assets, requiring businesses of significant size to notify the antitrust agencies of proposed mergers, empowering the Attorney General to issue civil investigative demands in antitrust cases when civil procedures are contemplated, and authorizing the Federal Trade Commission to seek preliminary injunctions in merger cases where a violation of law is likely. CIVIL AND DEFENSE MOBILIZATION.-Preparations for nonmilitary defense have been seriously hindered by the unwillingness of Congress to provide appropriations to carry out programs authorized by the I958 amendments to the Federal Civil Defense Act. Funds are again being requested for i96i, as well as in a supplemental appropriation for i960, to help States and localities strengthen their full-time civil defense organizations. Increased funds are also required to finance greater purchases of radiological instruments for donation to the States; for expansion of the emergency preparedness activities of other Federal agencies; and to carry on the national fallout shelter policy. In accordance with the national fallout shelter policy, the Federal departments and agencies have been directed to include fallout shelters when appropriate in the design of new buildings for civilian use, and funds for such shelters are included in the budget requests of the various agencies. In addition, the budget of the General Services Administration includes $6 million for a new fallout shelter program at certain Federal relocation sites and in some existing Federal buildings. 76 Dwight D. Eisenhower, 1960 AGRICULTURE AND AGRICULTURAL RESOURCES In the fiscal year I96I, Federal programs for agriculture will again have a heavy impact on the budget, primarily because of continued high agricultural production and the past unwillingness of the Congress to make appropriate modifications in the long-established price support laws. The longer unrealistic price supports are retained, the more difficult it will be to make the adjustments in production needed to permit relaxation of Government controls over farm operations. Last year I proposed to the Congress urgently needed legislation relating to price supports. Very little of that program was enacted. I recommend that the Congress give this important matter early consideration. Particularly urgent now is legislation to put wheat price supports on a more realistic basis. Stocks of wheat are continuing to rise in spite of our efforts to move wheat abroad through the International Wheat Agreement, sales for foreign currencies, and grants to disaster victims and needy people. The carryover of wheat stocks is expected to rise to almost 1.4 billion bushels by July I, i960, an amount that would provide for more than two years of domestic consumption without any additional production. The wheat surplus problem has been a long time in the making and cannot be solved overnight. In fact, wheat legislation enacted in this session cannot be made applicable before the i96i crop. The fact that any significant effect on the budget would be delayed until the fiscal year I962 underlines the need for prompt action at this session of the Congress. Authority to bring additional land into the conservation reserve expires after the i960 crop year. Legislation is proposed to extend this authority through the i963 crop year and to expand the program by increasing the basic limitation on the amount of payments that may be made in any calendar year from $450 million to $6oo million. Specific authority will be requested for the Secretary of Agriculture to give special consideration, in allocating conservation reserve funds, to those States and regions where curtailment of production of wheat or other surplus commodities is consistent with long-range conservation and productionadjustment goals. The rental rates needed to induce farmers to withdraw cropland from production under the conservation reserve depend on the income prospects from farming, which in turn are a reflection of the levels of price supports. Therefore, the future authorization for the conservation reserve program should not be increased above the I960 level unless needed price support legislation is enacted for wheat. 77 Public Papers of the Presidents AGRICULTURE AND AGRICULTURAL RESOURCES [Fiscal years. In millions] Program or agency Stabilization of farm prices and farm income: Commodity Credit Corporation-price support, supply, and purchase programs....... Commodity Credit Corporation-special activities (other than acreage reserve of the soil bank): Public Law 480......................... International Wheat Agreement........... National Wool Act...................... Other................................. Soil bank-acreage reserve: Program total.......................... Under CCC special activities........... Removal of surplus agricultural commodities.. Sugar Act.............................. Other................................... Subtotal............................ Financing rural electrification and rural telephones.................................. Financing farm ownership and operation: Farm Credit Administration................ Farmers Home Administration.............. Conservation of agricultural land and water resources: Conservation reserve: Existing program total................... Under CCC special activities........... Proposed legislation..................... Agricultural Conservation Program Service: Program total.......................... Under CCC special activities........... Soil Conservation Service (including watershed protection and Great Plains program)...... Research and other agricultural services........ Total, agriculture and agricultural resources............................. Budget expenditures 1959 I960 I96I actual estimate estimate $2, 775 $1, 828 $2, 279 I, 022 48 20 347 673 (64) I41 67 34 5, 126 I, 055 49 94 243 6 (5) IIO 74 4I 3, 499 1, 172 68 70 124 IIO 78 48 3, 95o Recommended new obligational authority for 1961 $I, 250 88i 49 51 423 271 74 47 3, 046 315 334 355 200 5 6 8 246 236 221 2 216 I75 (4)...... 365 (30)...... 362 32 362 32 246 244 233 243 (7) (I) (-I2)......... I25 29I 130 298 I37 325 136 333 14, 570 6, 529 5, I 3 5, 623 1 Compares with new obligational authority of $5,42I million enacted for I959 and $5,099 million (including $704 million in anticipated supplemental appropriations) estimated for I960. 78 Dwight D. Eisenhower, I960 q I3 Estimated expenditures for agricultural programs in fiscal I 96I are $5.6 billion, which is $510 million more than the estimate for the current year but $907 million less than was spent in I959. Total new authority to incur obligations requested for agriculture and agricultural resources in i96i is $4.6 billion. This amount includes $I.3 billion to restore, to the extent necessary, the capital impairment of the Commodity Credit Corporation resulting from previous price support losses and $I.4 billion to reimburse the Corporation for estimated costs and losses through the fiscal year i960 of other programs financed through that agency. Stabilization of farm prices and farm income.-Most of the recent year-to-year variations in expenditures for agriculture and agricultural resources reflect changes in expenditures for price supports and other programs to stabilize farm prices and farm income. During the five fiscal years, I955-59, Federal spending for these programs has accounted for 70% to 8o% of the total for all agricultural programs. In the fiscal year i96i, these programs are estimated to cost $3.9 billion, an increase of $450 million over i960, but a decrease of $I.2 billion from I959. Under present laws, price support expenditures for agricultural commodities cannot be controlled through regular budgetary processes. They are the result, mainly, of the loans and commodity purchases that the Commodity Credit Corporation is required to make, and the other priceand income-supporting programs that the Corporation is required to finance, under existing laws. These expenditures reflect the volume of production, consumption, and exports of price-supported commodities, which, in turn, are influenced by such uncertain factors as the weather and domestic and foreign economic conditions. The budget estimate for i96i reflects the residual effect of the large 1958 and I959 crops and assumes that yields on price-supported crops for the i960 crop year will be in line with recent averages; also exports of farm commodities in the fiscal year i96i may be down somewhat from the high level expected in I960. The Sugar Act expires on December 3I, I960. To give sugar producers maximum time for production planning, action should be taken early in the present session of the Congress to continue this program. We are continuing to use our surplus agricultural production in many ways for constructive purposes overseas through the "food for peace" program. Under the Agricultural Trade Development and Assistance Act of I954 (Public Law 480), surplus wheat, cotton, corn, rice, and 79 e I3 Public Papers of the Presidents other commodities are being sold abroad for foreign currencies. These currencies are used principally as loans or grants for the economic development and common defense in foreign countries, and to a lesser extent to finance various U.S. programs abroad. Surplus commodities are also being given to foreign governments for emergency relief needs and to private relief organizations in support of their programs abroad; over 60 million needy people benefited this past year from these donation programs. Last year the executive branch proposed certain amendments which, if enacted, would have made this surplus disposal program more effective. It is recommended that the Congress again consider these amendments. Rural electrification and telephones.-About 96% of our farms now have central station electric service, as compared with i i% in 1935. The expanding use of power in the areas served by electric cooperatives financed by the Rural Electrification Administration continues to require substantial amounts of new capital every year to provide additional generating capacity and heavier transmission and distribution facilities. More than one-half of the total power sales by the REA system are made to rural industrial, recreational, and other nonfarm customers. These nonfarm users now comprise over 80% of the new customers being added. The Rural Electrification Administration currently finances the capital needs of the cooperatives by borrowing from the Treasury at the statutory interest rate of 27%o and relending at the same rate. Legislation is proposed under which REA would (a) borrow from the Treasury at not to exceed the average rate of interest payable by the Treasury on recently issued long-term marketable obligations, and (b) make future electric and telephone loans at the same rate plus one-fifth of i % to cover administrative expenses and estimated losses. Legislation now before the Congress to place the operations of this agency on a revolving fund basis should also be enacted. It is vital, looking ahead, that legislation be developed to enable telephone as well as electric borrowers to obtain funds from a mutually owned financing institution to meet the needs for the future growth of these borrowers. Under this longer range plan, loans would also be available from the Rural Electrification Administration to meet special circumstances. The Secretary of Agriculture will work with REA cooperatives and other interested parties in developing such a proposal. Farm ownership and operation.-In I961, new direct loans and ad80 Dwight D. Eisenhower, 1960 ministrative expenses of the Farmers Home Administration are proposed in an amount equal to estimated collections on outstanding loans. Loans are made to borrowers who are unable to obtain credit from other sources at interest rates currently prevailing in their communities in order to finance farm ownership and enlargement, farm operations, and soil and water conservation. Direct loans for farm ownership and soil and water conservation are supplemented with private loans insured by the Federal Government. The present authority of the Secretary of Agriculture to make loans to farmers and ranchers is the cumulative result of the enactment of many separate laws over a long period of years. The legislation now before the Congress to simplify, consolidate, and improve the authority of the Secretary of Agriculture to make these types of loans should be enacted. Also, the pending legislation to require the States to share a greater part of the costs of farm disaster relief assistance should be enacted. Conservation of agricultural resources.-Expenditures under the conservation reserve program are expected to be $394 million in the fiscal year i96i. Of this amount $362 million will be needed to fulfill commitments incurred in the crop years I956 through i960 under existing authority, and $32 million will be used for conservation practice payments and additional operating expenses under proposed legislation to extend this program for three years. Under the proposed legislation it is planned to add about 9 million additional acres to the program during the I 96 I crop year, bringing the total at the end of that crop year to about 37 million acres. Increases in expenditures required for the i96i crop year program will occur mainly in I 962 and later fiscal years. In both the I 959 and I 960 appropriation acts, the Congress maintained the agricultural conservation program at levels which far exceeded my recommendations. As a result, expenditures of the Agricultural Conservation Program Service are estimated to be $244 million in i960 and $233 million in i96i. The advance authorization for the i96i agricultural conservation program, which will affect primarily fiscal year i 962 expenditures, should be limited to $ioo million. The lower program recommended, together with other public aids for soil and water conservation, will meet the Nation's high-priority conservation needs. Federal policy on cost-sharing assistance in the future should be concentrated on conservation measures which will foster needed shifts to less intensive uses of cropland, and assistance should be eliminated for prac8i Public Papers of the Presidents tices which increase capacity to produce agricultural commodities already in surplus supply. Continuation of cost sharing for output-increasing practices would directly conflict with the recommended expansion of the conservation reserve program under which cropland is removed from production. New obligational authority of $43 million is recommended for the upstream watershed programs, including $28 million for projects under the Watershed Protection and Flood Prevention Act. Of this amount, $5 million is provided to initiate construction on projects involving an estimated total Federal cost of $29 million. New obligational authority of $Io million is requested for the Great Plains conservation program, the same as for I960. Under this program conducted in designated counties of the Io Great Plains States, the Federal Government provides cost-sharing and technical assistance to farmers who enter into long-term contracts to make needed adjustments of land use on their farms. Research and other agricultural services.-Expenditures for research, education, and other agricultural services, exclusive of programs financed with foreign currencies, will be about $8 million higher in the fiscal year 1961 than in 1960. This amount will provide increased support for the research programs on pesticide residues and on industrial uses of farm commodities. It will also provide increased support for the rural development program which is making an important contribution to the solution of the economic problems of rural areas arising out of technological changes in agriculture and inadequate employment opportunities. In addition, it is estimated that $19 million will be spent in 1961 for the purchase of foreign currencies, obtained from the sale of surplus farm commodities, to be used for research and market development work abroad. This compares with approximately $I2 million in foreign currencies to be used for this purpose in 1960. NATURAL RESOURCES The recommendations in this budget for Federal natural resource programs take into account their great importance to the Nation's economic growth and security. The estimated total of $I.9 billion to be spent in the fiscal year 1961 for natural resources is more than has been spent for this purpose in any previous year. The increase of $152 million over 1960 is predominantly for water resources programs. 82 Dwight D. Eisenhower, 1960 Water resources.-The Corps of Engineers and the Bureau of Reclamation will spend an estimated $i.2 billion in the fiscal year i96i to construct, maintain, and operate flood control, navigation, irrigation, power, and related projects. This record total includes, in addition to operating costs, $965 million to continue construction on projects started in i960 or prior years, $i2 million for advance planning, and $i8 million for the first-year expenditures on 42 proposed new starts. These new projects, as well as three new construction starts by the Tennessee Valley Authority and one by the International Boundary and Water Commission, are recommended in this budget in the interest of balanced development of water resources. For the Corps of Engineers, appropriations (as distinct from the expenditures previously discussed) of $2I million are required for starting 31 new projects and for an additional number of smaller projects costing less than $400,000 each. The estimated commitments for these new projects total $30I million. Appropriations of $6 million for i96i are recommended for the Bureau of Reclamation to begin construction on six projects with total estimated commitments of $ I 84 million, and $ i i million for loans which will be used by local groups to start work on five small reclamation projects. I again recommend that the Congress authorize the FryingpanArkansas project in Colorado. To carry forward the joint development of the waters of the Rio Grande, construction should be started on the Amistad (Diablo) Dam, in accordance with the treaty of February 3, I944, between the United States and Mexico. I urge the Congress to enact promptly the legislation now needed to authorize negotiation of an agreement for this construction. Funds will be requested for the U.S. share of the first-year cost of this project following enactment of the legislation. Provision is made in this budget to begin modification of the lower Rio Grande levee system. Under legislation enacted during the past session, the Tennessee Valley Authority plans to issue an estimated $I I5 million of revenue bonds in i96i. These funds will be used to help finance construction of a second unit in the Paradise steam powerplant and of other units under way, including new generating capacity in the eastern part of the TVA area. The Authority will start construction of the Melton Hill project for navigation and power. In accordance with this administration's policy, and as authorized under the Tennessee Valley Authority Act as amended by the 60295-61 ~9 83 ( I 3 Public Papers of the Presidents recently enacted revenue bond legislation, the power facilities portion of this project will be financed from net power proceeds and revenue bonds, and the remaining portion will be financed from appropriations. With the completion of the Wilson lock, the present lock at Wheeler Dam will be a bottleneck for shipping on the Tennessee River. Appropriations are therefore recommended for 1961 to begin construction of a new lock at Wheeler Dam. NATURAL RESOURCES [Fiscal years. In millions] Program or agency Land and water resources: Corps of Engineers........................ Department of the Interior: Bureau of Reclamation.................. Power marketing agencies............... Indian lands resources................. Public domain and other................ Saint Lawrence Seaway Development Corporation.............................. Tennessee Valley Authority............... Federal Power Commission................. Department of State and other............. Mineral resources........................... Forest resources............................. Recreational resources....................... Fish and wildlife resources.................. General resource surveys and other........... Total............................... Budget expenditures 1959 1960 1961 actual estimate estimate $779 $860 $9IO Recommended new obligational authority for 1 961 $936 246 33 57 33 5 7 7 5 7I 201 86 68 6o i, 669 234 40 62 36 7 35 7 6 66 223 87 70 53 I, 785 300 40 57 40 314 40 4I 38 4 73 8 9 64 222 87 7I 53 I, 938......... 21 8 9 63 I9I 54 68 53 1 i, 836 1 Compares with new obligational authority of $1,742 million enacted for 1959 and $2,538 million (including $32 million of anticipated supplemental appropriations) estimated for 1960. Research for converting sea water and brackish water into fresh water, carried on cooperatively by the Department of the Interior and nonFederal groups, has progressed to the point where some processes are in the development stage. Construction will begin in 1960 at Freeport, Tex., on a demonstration plant for conversion of sea water, and $1.5 million is recommended in the 1961 budget for the Federal cost of build 84 Dwight D. Eisenhower, 1960o (I I 3 ing the first brackish water plant as well as a second sea water plant. Advance planning will be completed in i96i on two additional demonstration plants. Cost-sharing on flood protection projects.-It is essential that legislation be promptly enacted to establish a consistent basis for cost-sharing on projects which provide flood protection benefits. At the present time, the various Federal agencies responsible for flood protection operate under different and confusing cost-sharing standards. The non-Federal contributions vary from zero to over 6o%. This intolerable situation should be corrected. Legislation now before the Congress would require generally that identifiable non-Federal interests receiving flood protection benefits bear at least 30% of the costs of flood protection. The value of lands, easements, and rights-of-way contributed locally would be included as part of this non-Federal share. The cost of operation and maintenance would also be a State or local responsibility. Mineral resources.-Amendments to the Helium Act were recommended last year to carry out a long-range plan for conserving helium. This lightweight nonflammable gas is important to the Nation's atomic energy and missile programs, and known deposits of it are extremely limited. Under the legislation proposed, private industry would be encouraged to finance, build, and operate plants which would make helium available for conservation by the Department of the Interior. Prompt enactment is needed to check the waste of this essential gas. The Bureau of Mines will continue its research on improved methods of production and utilization of coal and other minerals. Legislation is again recommended to grant authority to the Secretary of the Interior to contract for coal research, thus allowing the Secretary to use outside scientific resources to assist the coal industry. Other resource programs.-In the fiscal year i96i, programs for conserving and developing the resources of the public domain and Indian lands will be carried on at about the I 960 levels. Although total expenditures for forest resources are estimated at about the same level in i96I as in i960, some increases are provided in i96i to carry forward the long-range program of the Forest Service for conservation and development, including added facilities and services to accommodate campers and picnickers. It is expected that these increased expenditures will be offset by a decrease in the unusually large 1960 outlays for fighting forest fires. 85 ( 13 Public Papers of the Presidents Receipts from the timber, grazing, and mineral resources on these public lands are estimated to increase to a total of over $400 million in 1961, including revenues from mineral leases on the Outer Continental Shelf. To obtain a more adequate return for use of federally-owned resources, legislation is again recommended to revise the fee schedule for noncompetitive oil and gas leases on public domain lands. In the interest of improving efficiency and providing convenience for the non-Federal parties concerned, certain functions with respect to land and timber exchanges should be transferred from the Secretary of the Interior to the Secretary of Agriculture by legislation embodying the basic provisions of Reorganization Plan No. I of 1959, which was disapproved by the Congress. In these exchanges, the Government obtains nonFederal lands in exchange for national forest lands administered by the Secretary of Agriculture or for timber on such lands. This legislation is needed to simplify the work relating to these land exchanges. Each year more of our citizens use and enjoy the national parks. Expenditures of $86 million estimated for the National Park Service in 1961 for recreational resources will provide for additional urgently needed facilities and services for visitors, for maintenance and operation of the present facilities, and for selective acquisition of lands to add to existing park areas. Before it is too late we should take steps to preserve, for public benefit, part of the remaining undeveloped shore areas. I hope, therefore, that the Congress will enact during this session the legislation proposed in the last session to permit the Secretary of the Interior to select and acquire for the national park system three areas which would be of national significance because of their outstanding natural and scenic features, recreational advantages, and other public values. Contract authority is available to finance planned construction of parkways, roads, and trails in the national parks and forests and on Indian lands during 196I. Beginning in 1962, this construction should be financed by direct appropriations, and the budget so contemplates. Recent legislation increased the fee charged to hunters of migratory birds and earmarked these revenues for acquisition of lands for refuges and nesting areas. In 1961 land acquisitions from these revenues will be four times those of the current year. Other proposed increases in expenditures for fish and wildlife resources are mainly for fishery research. 86 Dwight D. Eisenhower, 1960 (I I 3 LABOR AND WELFARE Budget expenditures for labor and welfare programs in the fiscal year i96i are estimated to reach an all-time high of $4.6 billion, of which three-fourths will take the form of grants to States and localities. The total expenditures are estimated to be $i28 million more than for the current year. The largest increase is for promotion of public health, mainly for research and hospital construction, as a result of much larger appropriations by the Congress in previous years. Significant increases are also estimated for the support of basic research provided by the National Science Foundation and for the defense education and public assistance programs of the Department of Health, Education, and Welfare. Budget expenditures for labor and welfare programs will be more than double the amount a decade ago. During the same period, trust fund expenditures for these programs, including social security and unemployment compensation, will have quintupled to an estimated $i6.2 billion in i96i. New obligational authority recommended for i96i totals $4.5 billion, about the same as for 1960 but $356 million more than forI959. Reductions from i960 are recommended in the grant-in-aid programs for assistance to schools in federally-affected areas, for hospital construction, and for waste treatment works construction. Larger appropriations are proposed for other presently authorized activities in the fields of science, vocational rehabilitation, education, welfare, and health. In addition, a number of new programs are recommended to meet important national needs, particularly in the education and labor fields. In the last several years great strides forward have been made in the social security, welfare, and health fields. The Secretary of Health, Education, and Welfare is continually reviewing the various programs in these fields for the purpose of determining where improvements should be made. As needs for improvement are found, appropriate recommendations will be made. EDUCATION AND RESEARCH.-Our Nation seeks to foster a climate of freedom and creativity in which education, the arts, and fundamental science can flourish. The Federal Government helps in the attainment of these objectives through programs for support of basic research, aid to educational institutions, and training assistance to individuals in various fields important to the national interest. In this budget I recommend 87 Public Papers of the Presidents LABOR AND WELFARE [Fiscal years. In millions] Recommended new obligational Budget expenditures Program or agency Promotion of education: National Science Foundation, science education................................... Department of Health, Education, and Welfare: Defense education program............... Assistance to schools in federally-affected areas................................ Vocational education and other........... Other, primarily Bureau of Indian Affairs.... Promotion of science, research, libraries and museums: National Science Foundation, basic research.. Department of Commerce: Bureau of the Census.................... National Bureau of Standards and other.... Other................................... Labor and manpower: Temporary extended unemployment compensation................................. Grants for administration of employment service and unemployment compensation.... Other................................... Promotion of public health: National Institutes of Health, research grants and activities........................... Grants for construction of health research facilities.................................... Hospital construction grants................ Grants for construction of waste treatment facilities............................... Other................................... Public assistance............................ Correctional and penal institutions............ Other welfare services: School lunch and special milk programs...... Other................................... Total................................ I1959 I960 I96I authority actual estimate estimate for i961 $5I $54 $59 $70 78 134 170 171 I 2i6 63 6o 234 207 67 67 6o 62 I 71 69 65 55 71 101 122 23 12 27 447 306 91 91 22 37 -7 323 99 36 33 50 29 50 45 3II 124 326 126 265 364 23 26 136 144 390 400 29 25 i6i 126 36 243 I, 969 39 218 6I1 4, 421 45 271 2,o56 46 234 7I 4, 44I 45 279 2, o087 48 234 76 4 569 20 276 2 087 57 225 79 '4, 538 1 Compares with new obligational authority of $4,182 million enacted for 1959 and $4,543 million (including $22 million in anticipated supplemental appropriations) estimated for 1960. 88 Dwight D. Eisenhower, i960 q I3 increased appropriations for high-priority education and research programs and enactment of new legislation to authorize additional aids to education. I am recommending repeal of the provision of the National Defense Education Act that prohibits payments or loans from being made to any individual unless he executes an affidavit that he does not believe in or belong to any organization that teaches the illegal overthrow of the Government. This affidavit requirement is unwarranted and justifiably resented by a large part of our educational community which feels that it is being singled out for this requirement. Education.-Expenditures for the education-aid programs authorized by the National Defense Education Act of 1958 will increase sharply in 196i. During the current school year more than I00,000 students from 1,368 colleges, about four times the number of students last year, are expected to borrow from college loan funds to which the Government makes repayable advances. A supplemental appropriation of nearly $ I o million is proposed to enlarge this loan program for I960. A small increase in appropriations is recommended for I96I pending further experience on the rate at which loans will be made to students. Increases are also proposed for fellowships for prospective college teachers; for grants to States for science, mathematics, and foreign language teaching equipment; for research in the educational use of television and other media; for contracts with universities for training of counselors and for foreign language training; and for grants to States for vocational training in occupations requiring scientific skills. Appropriations of $70 million are requested for aids to science education programs administered by the National Science Foundation, an increase of $3 million over the amount provided in I960. The budget includes the same aggregate amount for vocational education programs as was appropriated this year, but with shift in emphasis. The need for Federal assistance in the vocational education programs begun in 1917 for the purpose of stimulating training in agriculture, home economics, industrial trades, and distributive occupations is not as great as for promotion of training in new science-age skills. Thus as increased funds for training needs in new skills are provided under the National Defense Education Act, Federal assistance for the older programs is being reduced by a corresponding amount. Appropriations recommended for 1961 to assist school districts whose 89 Q I 3 Public Papers of the Presidents enrollment comes partially from children whose parents work or reside on Federal property are $54 million below those enacted for I960 and are in line with requirements under legislation proposed by the administration last year. The appropriation recommended for these programs is the maximum which I believe should be provided. The substantial increase in Federal employment during World War II, which led to the enactment of this legislation in I950, has been superseded by a relatively stable Federal establishment. In many cases, the presence of Federal installations in the communities adds to rather than detracts from the revenue base for the support of schools. This is particularly true where parents employed by the Government live on private property which is subject to State and local taxation even though they earn their income on nontaxable Federal property. The proposed legislation would discharge more equitably the Federal responsibility in these districts, and its prompt enactment by the Congress is recommended. The pressing need now is not for aid to federally-affected districts on the basis initiated in I950 but for general aid to help localities with limited resources to build public schools. Despite encouraging progress in the rate of school construction, many school districts are still finding it difficult to avoid overcrowding and double sessions as enrollments continue to mount. Moreover, increasing secondary school enrollments require facilities which are much more costly than elementary school classrooms. Last year the administration recommended legislation authorizing annual Federal advances to local school districts to pay up to half the debt service (principal and interest) on $3 billion of bonds to, be issued in the next five years for school construction. This legislation is designed to stimulate, not supplant, additional State and local effort. Affirmative action should be taken this year on that proposal. Congressional approval of the administration's proposals for aid to higher educational institutions is also essential. The enrollment growth facing colleges and universities from I960 to 1975 brings a need for additional academic, housing, and related educational facilities. To help colleges finance the construction required, the administration's proposal would authorize Federal guarantees of $I billion in bonds with interest subject to Federal taxation, and would provide Federal grants, payable over 20 years, equal to 25% of the principal of $2 billion of bonds. This program would provide aid on a much broader basis, and result in the construction of much larger total amounts of college facilities per dollar 90 Dwight D. Eisenhower, i960 (I I 3 of Federal expenditures, than the present more limited college housing loan program which should be allowed to expire. Basic research.-To provide a strong foundation of fundamental scientific knowledge for the Nation's future advancement, this budget provides, in various functional categories including major national security, expenditures totaling more than $6oo million for support of basic research in I 96 I. Appropriations of $1 i2 2 million are recommended for support of basic research by the National Science Foundation, an increase of $34 million over i960. The total includes $79 million for basic research projects and $I5 million for grants to universities for modernization of graduate level laboratories under a program initiated in i960. Increased support is also provided for scientific work of the Bureau of Standards, including funds for two new laboratories, as a first step in the construction of completely new facilities for the agency. Oceanography.-Federal support of oceanography and related marine sciences is being substantially augmented by several agencies under a long-range program developed by the Federal Council on Science and Technology to strengthen the Nation's effort in this field. This program stems from a study undertaken by the National Academy of Sciences at the request of several agencies. The expansion of oceanographic research will be undertaken by the Navy, the Departments of Commerce and the Interior, and the National Science Foundation. Funds are provided for the construction of new vessels and the replacement of obsolete vessels, and for increased support for research by private institutions. Government statistical services.-Adequate and timely national statistical information is essential for recording and appraising the performance of the Nation's economy, and for formulating public and private policies. Activities planned in various agencies for the fiscal year i96i will help close significant gaps in our statistical information and make improvements in current data. Obligations for these purposes in the various functional categories of the budget are estimated at $62 million, including $20 million for the decennial census and other periodic statistical programs. This budget includes funds for tabulating and processing basic economic and demographic data collected through the Eighteenth Decennial Census, and for the final publication of the results of the I958 censuses of business, manufactures, and mineral industries. Other recommendations include the initiation of a new series on the service trades and the 60295-61 10 9I (I 13 Public Papers of the Presidents improvement of data on retail trade, on consumer prices, on health, on crop and livestock production, and on State and local government finances. LABOR AND MANPOWER.-Last year the administration recommended and the Congress enacted much-needed legislation designed to protect workers and the public from racketeering, corruption, and abuse of democratic processes which had been disclosed in the affairs of a few labor unions. To assure effective and efficient administration of this new law, the budget recommends supplemental appropriations in I960 for the National Labor Relations Board and the newly established Bureau of Labor-Management Reports in the Department of Labor. Increased appropriations are proposed for both agencies for I96I. Additional funds needed by the Department of Justice will be requested later when requirements can be better determined. Appropriations of $326 million are requested in the fiscal year 1961 for grants to the States to administer the Federal-State employment security system with its network of I,8oo offices throughout the country. These grants are now financed from an earmarked Federal tax and the transactions involved increase both budget receipts and expenditures, even though these funds cannot be used for general Government purposes. Legislation proposed by the administration last year for financing this program through the unemployment trust fund should be enacted. Amounts equal to the proceeds from this tax could then be placed directly in the trust fund from which the necessary grants could be appropriated and an adequate balance could be maintained as a reserve for employment security purposes. The administration of the program would then be financed in essentially the same way as other major social insurance programs. The job placement services and unemployment compensation payments provided through the State employment security offices are important for a smoothly operating free labor market in a growing economy. These services and payments provide also for security against economic hardship for the work force covered by the system. I again urge the enactment of legislation to extend unemployment compensation to some 3 million workers, primarily those employed in small enterprises. Some States have recently made encouraging progress in increasing the duration and level of benefits, but more needs to be done and additional States should take these steps. 92 Dwight D. Eisenhower, i960 (I I a Action is needed to strengthen the financial position of the unemployment compensation system. Although the reserves of most States proved adequate in the past recession, a few were and still are in a precarious condition. Moreover, reserve funds in most States have fallen behind the growth in payrolls during the last decade, and in certain States could be inadequate in the event of future economic distress. I have asked the Secretary of Labor to make a study of this problem and to report to me his conclusions. Previously proposed amendments to strengthen the basic authority in the Welfare and Pension Plan Disclosure Act should be enacted, and the protection of the Fair Labor Standards Act should be extended to several million additional workers in accordance with previous recommendations. Legislation is likewise again proposed to assure equal pay for equal work, and to strengthen and improve laws governing hours of work and overtime pay on direct Federal and certain federally-aided construction projects. PUBLIC HEALTH.-Advances in medical technology and the spread of private health insurance have played important roles in raising the level of health services for our rapidly growing population. At the same time, the growing demand for better health care has contributed to shortages of facilities, medical and scientific manpower, and supporting health workers, as well as to the rising cost of medical and hospital services. In order to deal effectively with these developments, the Federal Government has expanded its public health programs and is actively seeking solutions to the Nation's health problems. Expenditures in the fiscal year i96i are estimated to total $904 million, which is $53 million more than in i960 and nearly three times the level five years earlier. The largest part of the increase is for medical research and training of research workers through programs of the National Institutes of Health, for which the estimated expenditures of $390 million in i96i will be four times as great as five years ago. Expenditures for hospital construction grants are estimated at $ I 6 I million in I 96 I, a threefold increase during the same period. The Department of Health, Education, and Welfare will insist on maintaining high standards in determining the acceptability of medical research projects for Federal support. As I indicated last August in approving the I960 appropriations for the Department, it is essential that Federal grants for these projects be so administered that medical manpower is not 93 (I I 3 Public Papers of the Presidents unduly diverted from other pressing needs and that Federal funds are not substituted for funds from private sources. The i960 appropriation of $400 million for the National Institutes of Health will not be entirely committed this year even with advanced funding of certain training programs. I am recommending that i96i appropriations to the National Institutes of Health continue at the high level of I 960. The recommended appropriation for the Hill-Burton hospital construction program for i96i is consistent with the levels achieved by this program before the I958 recession. It will assure that sufficient new general hospitals can be financed to keep pace with population growth, cover current obsolescence rates, and provide for 6,ooo new beds to reduce the backlog of needs. The remainder of this program, covering diagnostic and other special facilities, would approximate the 1959 and i960 levels. The i96i appropriation proposed for construction of waste treatment facilities is the same as that requested for i960. It represents the maximum amount which I believe is warranted for a construction program which is and should remain primarily a State and local responsibility. Larger appropriations are proposed for other health programs where present or impending needs create urgent priorities. Emerging health problems of increasing seriousness to our population arise from the complexities of the environment in which we live. To cope with the farreaching problems of environmental health on a more systematic and intensive basis, this budget provides substantial increases to the Public Health Service for air pollution, water pollution, and radiological health control activities. These increases for radiological health, together with the stepped-up activity by the Atomic Energy Commission and other agencies, will permit a greatly intensified effort by the Federal Government in this field. In order to provide for more effective Federal air and water pollution control activities, the Secretary of Health, Education, and Welfare will make legislative recommendations to strengthen the enforcement provisions of the Water Pollution Control Act and to authorize greater Federal leadership in combating air pollution. Rapid technological developments in the production, processing, and marketing of foods, drugs, and other products likewise underline the necessity for more research and action for the protection of the consumer. To meet this need, the budget continues to emphasize an orderly expansion of the Food and Drug Administration, expenditures for which will be more than double those five years ago. 94 Dwight D. Eisenhower, i960 ( I3 SOCIAL INSURANCE AND OTHER WELFARE.-The social security insurance system now provides basic protection against loss of income from death, disability, and retirement to about 85% of our labor force. Another 8% are covered under the railroad retirement system and other public retirement systems. Social security and public assistance.-At the present time io million of the i6 million people aged 65 and over are receiving monthly old-age or survivors insurance benefits. This vast insurance system, which will pay $I I.7 billion in old-age, survivors, and disability benefits to I4.6 million people of all ages in I96I, is administered at a cost of about 2 % of the social security taxes. Our social insurance and public retirement systems provide basic protection to the worker and his family. For those who have no such protection and whose incomes are insufficient to meet basic needs, the Federal Government shares, through grants to the States, in providing four categories of public assistance payments. These are (I) old-age assistance, (2) aid to the blind, (3) aid to dependent children, and (4) aid to the permanently and totally disabled. In i96i, the Federal share for payments, made to an estimated monthly average of 5.9 million beneficiaries, will total an estimated $2.i billion, or about 58% of the total Federal-State-local public assistance expenditures. This contrasts with Federal expenditures of $I.I billion, representing a Federal share of 52%, for payments to 4.9 million individuals in I 950. Public assistance has long been recognized as primarily a responsibility of the State and local governments, because need for these payments in individual cases can best be determined at the local level. I am particularly concerned about the growing Federal share, especially because it tends to weaken this sense of State and local responsibility. While we are spending hundreds of millions for aid to the needy, there are large gaps in our knowledge of the causes of dependency and of the best ways to alleviate or prevent it. I believe that appropriations to initiate a program of research and demonstration projects designed to identify and alleviate these causes are highly necessary and I have so recommended in this budget. Military service credits.-It has long been recognized that military service should be counted towards the rights of employees under the various public retirement programs. Likewise, where employees are not required to make payroll contributions during military service, the trust 95 Public Papers of the Presidents funds from which benefits based on such service are paid should be reimbursed by the Government. However, the Federal Government should not, as required under the Railroad Retirement Act, pay more than the true cost of such benefits or pay to both the railroad retirement account and to the old-age, survivors, and disability insurance trust funds for the same military service benefits. Accordingly, I repeat my earlier recommendation that the Federal Government should reimburse the railroad retirement account only for the actual added cost of benefits resulting from military service. Pending action on legislation dealing with substantial overpayments found by the Comptroller General, no provision is made in this budget for further Federal military service payments to either the railroad retirement account or the old-age, survivors, and disability insurance trust funds. Other welfare services.-This budget includes recommended appropriations for vocational rehabilitation totaling $72 million for the fiscal year i96 I, primarily for grants to help the State agencies rehabilitate an estimated 93,000 individuals, about 6 % more than in i960. Grants to all school systems in the States through the school lunch and special milk programs of the Department of Agriculture are estimated at $234 million in 196I, approximately the same as in 1960. These programs will provide improved diets for i i.8 million children, on the average, in I 96 I. The I 96 I amount is in addition to the commodities which are distributed to the schools through the disposal programs classified in this budget under agriculture and agricultural resources. The health, employment, income, and other needs of the increasing number of elderly people in our population can be met only through the combined efforts and cooperation of private, local, State, and Federal organizations and agencies. The White House Conference on Aging, to be held in January i96i, and the State conferences which precede it should help point the way toward more productive and satisfying living for our aged citizens. The realization of our aspirations for a better society in the years to come will in large measure depend upon the way in which our children and youth are prepared to realize their maximum potential. This will be the vital concern of the White House Conference on Children and Youth, which will be held in March I 960 and through which private and public organizations will endeavor to bring their wisest and most expert counsel together on this vitally important matter. 96 Dwight D. Eisenhower, I960 VETERANS SERVICES AND BENEFITS Expenditures for veterans programs are estimated to rise by $314 million to $5.5 billion in i961, chiefly because of additional pension cases and higher pension rates, both authorized by the Veterans' Pension Act of I959. The increase for pensions, amounting to $438 million, will be partly offset by a decrease of $I28 million in readjustment benefit expenditures. Programs of the Veterans Administration, providing compensation and pension, medical, and readjustment benefits for the Nation's veterans, rank fourth in size among all Government functions in this budget. Total expenditures for these programs, as presently authorized, will continue to increase in future years as our veterans advance in age. The 23 million living veterans, together with the dependents and survivors of veterans, comprise a total of 81 million people, a considerable proportion of whom are potential recipients of one or more types of benefits. This country has provided a wide range of benefits and services for war veterans and their families to meet needs resulting from military service. Disability and death compensation benefits have been provided for veterans who were injured in the service or for their survivors. The Servicemen's and Veterans' Survivor Benefits Act of I956 improved the death benefit structure both for wartime and peacetime servicemen. In I957, general disability compensation rates were increased by IO%, and a still larger increase was enacted in the basic rate for the totally disabled. A first-rate hospital and medical care program is also being provided. During the past year a long-range policy for stabilizing the Veterans Administration's hospital program at 125,000 beds has been established, and beginning with the 196I budget a 12-year hospital modernization program is being initiated that will ultimately cost $900 million. The 2I million veterans who served during World War II or the Korean conflict were eligible for benefits from the highly successful readjustment programs. For the I6 million World War II veterans the GI bill provided unemployment and self-employment compensation payments to 9.7 million veterans; education and training benefits to 8.4 million veterans; and loan assistance to 5 million veterans for the acquisition or improvement of homes, farms, and businesses. Except for the loan guarantee and direct loan programs, which will terminate on July 25, 960, the World War II readjustment benefits have essentially expired. Similar readjustment programs, which will continue into 1965 for veterans of 97 Public Papers of the Presidents the Korean conflict, have already provided 2.3 million veterans with education and training benefits and 700,000 with loans. The special unemployment compensation program for Korean conflict veterans which ends in 1961 has aided 1.3 million veterans. No further extension or liberalization of these benefits is needed. The long-standing veterans pension program also provides special assistance to war veterans for needs not arising from military service. The Veterans' Pension Act of I959 was an important step in the modernization of the program. It eliminated the disparity in eligibility for pensions between the widows of World War I veterans and those of later wars, and provided higher benefits for all persons who could demonstrate need under a new sliding scale income test. No further liberalization of the laws concerning pensions for non-service-connected disability is proposed. In addition to the special veterans programs, a great majority of veterans participate in the general social security, health, and welfare programs which are financed wholly or in part by the Federal Government. In the future these general programs will provide with increasing adequacy for the economic security needs of our elderly population, of which veterans and their widows will constitute a large and increasing proportion for several decades. VETERANS SERVICES AND BENEFITS [Fiscal years. In millions] Budget expenditures Program or agency Readjustment benefits: Education and training................... Loan guarantee and other benefits.......... Unemployment compensation.............. Compensation and pensions: Service-connected compensation............ Non-service-connected pensions............. Burial and other allowances................ Hospitals and medical care.................. Hospital construction....................... Insurance and servicemen's indemnities........ Other services and administration............. Total................................ I959 1960 I961 actual estimate estimate $574 $445 $3I6 I33 II5 I24 44 8... Recommended new obligational authority for 1961 $286 I24 2, o66 I, 716 58 933 75 49 i68 1 5, 476 2, 070 I, 153 52 875 45 35 193 5, I74 2, 071 I, 278 58 906 6o 36 i8o 5, I57 2, o66 I, 716 58 928 63 31 i69 5, 471 1 Compares with new obligational authority of $5,I25 $5,176 million (including $II4 million in anticipated estimated for 1960. 98 million enacted for 1959 and supplemental appropriations) Dwight D. Eisenhower, I960 E 13 Readjustment benefits.-Readjustment assistance is expected to decline significantly from 1960 to 1961, primarily because of the reduction in the number of veterans of the Korean conflict participating in educational or vocational training programs. An average of 225,000 veterans will receive training in 1961, compared to 325,000 in 1960 and 425,000 in I959. Educational benefits for war orphans, which were enacted in 1956, are expected to total over $17 million in 1961. Peacetime ex-servicemen are recognized as being in a different category from wartime veterans because of the different conditions under which they serve. Those who serve in peacetime undergo fewer rigors and hazards than their combat comrades. The disruption of their educational plans and careers is minimized under peacetime selective service procedures. While on active service they now receive substantial pay and benefits, and they return to civilian life under more favorable conditions after receiving valuable training while in service. To discharge its responsibility to peacetime ex-servicemen, the Federal Government has provided unemployment compensation, employment service and reemployment rights, and service-connected disability or death compensation. One additional benefit should be added to these in accord with my earlier recommendations: a program of vocational rehabilitation for those with substantial service-connected disabilities. On the other hand, I oppose the establishment of special educational and loan guarantee programs for peacetime ex-servicemen. Such benefits are not justified because they are not supported by the conditions of military service. Moreover, they would be directly contrary to the incentives which have been provided to encourage capable individuals to make military service a career. Compensation and pensions.-Expenditures for compensation for service-connected disabilities and deaths will show only a minor change in 1961. A reduction in the number of World War I and II veterans on the rolls will be offset somewhat by the addition of veterans of the Korean conflict and peacetime ex-servicemen. Compensation Will be paid for an estimated 2.4 million cases during 1961. The net impact of the 1959 law governing non-service-connected pensions is to add several hundred thousand new cases to the rolls at an estimated additional cost of $284 million in 1961 and an estimated cumulative cost of $9 billion during the next 40 years. Expenditures are also increasing because of the growing number of World War I veterans 99 e1 I 3 Public Papers of the Presidents reaching age 65. Approximately 40% of all World War I veterans over 65 are now receiving pensions. An average of i.9 million veterans and families of deceased veterans are expected to receive pensions in i96i; this is 26% more than in i960 and 38% morethan in I959. Hospital and medical services.-The budget includes $928 million of expenditures in I 96 I for hospital and medical care for veterans. The increase of $22 million from i960 is to continue improvements in the staffing and quality of service in the hospitals and to meet the higher costs of hospital and medical care generally. Hospital and domiciliary care will be provided during the year for an average of I4I,25o beneficiaries per day, and a total of 2,300,000 veterans will receive medical or dental care for service-connected disabilities in outpatient clinics. Hospital construction.-As a first step toward an orderly i2-year program for modernization of existing veterans' hospital facilities, an appropriation of $75 million is proposed for I96I. Of this total, $53 million is for construction of replacement hospitals at Cleveland, Ohio (8oo beds); Washington, D.C. (700 beds); and Martinez, Calif. (5oo beds). The remainder is for a large number of modernization projects. Administration.-The general operating expenses of the Veterans Administration are expected to decline approximately 7 % in I96I, reflecting decreased workloads in loan and educational programs, improved administrative procedures particularly in insurance operations, and the application of modem electronic equipment to recording and paying veterans benefits. INTEREST Interest payments are estimated to rise $200 million to $9.6 billion in the fiscal year I96I. These payments, almost entirely for interest on the public debt, represent I 2 % of budget expenditures. For a year and a half now, market rates of interest have been increasing, reflecting inflationary pressures, the high level of investment demands in our economy and heavy Federal borrowing required by the 1958 and I959 budget deficits. The rise in market rates requires the Treasury to pay higher interest on securities issued to refinance the heavy volume of maturing obligations, which were issued when interest rates were lower. It is imperative that the Congress lift the present legal ceiling of 4 4 % on interest rates on all Government obligations having maturities of more than five years. Otherwise, interest payments could rise even more I00 Dwight D. Eisenhower, I960o q I3 INTEREST [Fiscal years. In millions] Recommended Budget expenditures new obligational I959 I960 I96I authority Item actual estimate estimate for 1961 Interest on public debt...................... $7, 593 $9, 300 $9, 500 $9, 500 Interest on refunds of receipts................... 70 75 75 75 Interest on uninvested funds......................9 9 o 10I Total................................ 7, 671 9, 385 9, 585 9, 585 sharply. The current interest rate on shorter term securities is now higher than on long-term bonds, and the continued need to limit financing to the short-term market tends to raise interest rates more than if the financing could be spread over both the short- and long-term markets. GENERAL GOVERNMENT Expenditures for general government activities are estimated to rise by $200 million to $i.9 billion in the fiscal year 1961, primarily because of increased construction of Government buildings and a new appropriation to the civil service retirement fund required by law. Federal financial management.-There is growing evidence that a considerable amount of revenue is lost annually to the Government because of the failure of some individuals and businesses to report fully the income which they have received. The existence of such a condition seriously weakens the integrity of our tax system, and places an unfair share of the total tax burden upon the vast majority of citizens who conscientiously report all of their taxable income. This budget includes an increase of $29 million for the Internal Revenue Service, primarily to strengthen its enforcement programs, including initiation of an electronic computer system. I urge its approval as the first step in a long-range plan to prevent this revenue loss. The additional costs should be recovered many times through increased tax collections in later years. General property and records management.-The efficient and economical operation of many Federal agencies is hindered by inadequate office space, much of which is rented. Accordingly, new obligational authority of $185 million is recommended for fiscal year 1961 for the planning and construction of additional general office space. Although IOI Public Papers of the Presidents no funds for such construction were appropriated for 1960, expenditures will rise in 1961 as outlays for new construction are added to those for construction initiated in prior years. In addition, the estimate for the legislative functions includes increased expenditures for a new office building for the House of Representatives. GENERAL GOVERNMENT [Fiscal years. In millions] Recommended Budget expenditures new obli- - gational 1959 1960 1961 authority Program or agency actual estimate estimate for 1961 Legislative functions.......................... $10 2 $I2I $146 $95 Judicial functions............................ 47 50 53 53 Executive direction and management..............12 13 14 14 Federal financial management................... 566 560 591 595 General property and records management..... 291 384 432 469 Central personnel management and employment costs.................................... 205 I98 251 251 Civilian weather services...................... 46 52 58 63 Protective services and alien control.............. 216 2i8 229 230 Territories and possessions, and the District of Colum bia................................ 89 96 126 124 Other general government....................... 30 20 I2 15 Total.................................... i, 606 I,71 I I 9I 1 I, 9I10 1 Compares with new obligational authority of $1,795 million enacted for 1959 and $1,645 million (including $7 million in anticipated supplemental appropriations) estimated for 1960. The General Services Administration, in collaboration with other agencies, has developed a new program for improved use of excess personal property by Federal agencies, and faster, more efficient disposal of surplus property. This involves more effective screening of such property and simplifying the procedures under which agencies are advised of its availability for other uses. Central personnel management.-The Civil Service Commission and the Bureau of the Budget have recently recommended a long-range policy on financing the civil service retirement system. I hope the Congress will speedily enact these recommendations, which would assure continued availability in the fund of the full amount of the net accumulations from employee contributions and establish a definite basis for meeting the Gov 102 Dwight D. Eisenhower, i960 ernment's share of the costs consistent with the principle that its full faith and credit support the authorized benefits. A new appropriation of $46 million for payments to the civil service retirement fund is requested for i96i to finance the costs of new or increased benefits enacted in I 958 for certain widows or widowers of former Federal employees and for certain retired employees. The law provides that these particular benefits cannot be continued after July i, i960, unless such an appropriation is made. Recipients of these benefits should enjoy the same assurance of uninterrupted payment as do other annuitants of the civil service retirement system, and the Federal liability in their case is not different from that for other benefits under this program. Accordingly, I recommend that the Congress consider, in connection with the legislation referred to in the preceding paragraph, authorizing the civil service retirement and disability fund to bear the future cost of these particular benefits without a specific appropriation. The budget provides approximately $I20 million to pay the Government's share of the Federal Employees Health Benefits Act of I959, which becomes effective in the fiscal year i96i, and which will provide opportunity for approximately 2 million employees and 2.4 million dependents to have reasonable protection against the cost of both basic and major health care. This program will add substantially to employee fringe benefits, which in the aggregate now compare very favorably with those provided to employees in private industry. In I958 immediately following enactment of a io% general salary increase for Federal civilian employees, I proposed to the Congress a review of all compensation systems in the three branches of the Federal Government, directed toward adoption of an equitable employee compensation policy. This recommendation was renewed in my budget message for the i960 fiscal year. It has been more than 30 years since a thorough-going review has been made of the manner in which the Federal Government compensates its employees. There are now dozens of pay plans in the executive branch alone. Review and coordination of the excessive number of pay plans now in existence are the most effective means of removing inequities which adversely affect the Government's ability to recruit and retain qualified personnel in some fields. Continued patching of individual Federal salary systems in not satisfactory as a substitute for a comprehensive Federal pay policy, which should be developed either by authorI03 Public Papers of the Presidents izing a Joint Commission such as I proposed or by some other equally effective means. Pending development and adoption of such a comprehensive policy, a general pay raise would be unwarranted, unfair to the taxpayers of the United States, and inequitable as among employees compensated under different and unrelated pay systems. The budget estimates for the Post Office Department assume legislative action to continue that part of the 1958 salary increase for postal field service employees which expires on January 20, 1961. Civilian weather services.-Appropriations totaling $63 million are recommended for the fiscal year 1961 for the Weather Bureau. The $12 million increase over the amounts enacted for 1960 will permit expanded research, weather observation, and forecasting services. These improvements are necessary primarily to keep pace with advances in air traffic controls. Research projects include intensive investigation of hurricanes and tornadoes, and the development of a semiautomatic system for the collection and analysis of weather data. Hawaii.-Our Union was greatly strengthened in I959 by the admission of the States of Alaska and Hawaii. As in the case of Alaska, comprehensive legislation will be necessary to enable Hawaii to take its place as the equal of the other 49 States. Recommendations will be transmitted to the Congress concerning those changes needed in Federal laws in order to bring Hawaii under the same general laws, rules, and policies as are applicable to the other States. Territories, Possessions, and District of Columbia.-Completion of action on statehood for Alaska and Hawaii makes it all the more urgent that legislation to provide home rule for the District of Columbia be enacted without delay. Both equity and efficiency require that the people of the Nation's Capital be given a voice in their own local government and that the role of the Federal Government be limited to matters of Federal concern. Legislation will shortly be proposed to the Congress to establish a Government corporation to develop an improved mass transportation system in the National Capital metropolitan area, pending creation of an interstate agency to assume this responsibility. To foster further development of democratic institutions and in keeping with the growth of local self-government, action should be taken to authorize the Virgin Islands and Guam to be represented in the Congress through nonvoting resident commissioners. I04 Dwight D. Eisenhower, I960 q I3 Intergovernmental relations.-There are many problems requiring attention of the recently established Advisory Commission on Intergovernmental Relations. Foremost among these are the problems of allocation of tax sources among various levels of government and rapid growth of metropolitan areas. An aspect of intergovernmental relations requiring attention in both the legislative and executive branches involves a series of court decisions permitting local taxation of federally-owned property in the hands of contractors and leaseholders. This matter should be resolved in the context of the broader subject of Federal payments in lieu of taxes. Other recommendations.-Legislation enacted in the last session of Congress to amend the immigration and nationality laws failed to cover several significant proposals, including modification of the quota system. Prompt action is needed on these remaining items. To strengthen the Government's hand in restraining inflationary forces, I urge that the Employment Act of 1946 be amended to make reasonable price stability an explicit goal of Federal economic policy, coordinate with the goals of maximum production, employment, and purchasing power now specified in that Act. I urge the Congress to enact the remaining six points of the civil rights program that I recommended last year. The Civil Rights Commission, extended for an additional two years by the last session of Congress, continues its important work and has developed additional constructive recommendations, particularly for protecting the right of every citizen to vote. I hope these recommendations will also be earnestly considered by the Congress. I also recommend that the Congress create additional Federal judgeships, as proposed by the Judicial Conference, and strengthen Federal laws against organized crime. Legislation will be submitted to increase the authorization for appropriations for the Commission on International Rules of Judicial Procedure in order that it may complete its work successfully. It is important that legislation now before the Congress be enacted to provide reimbursement to Americans for certain property damage in Europe and the Far East during World War II for which compensation has not previously been authorized. I again recommend that a system be devised for suitable recognition in the United States for distinguished achievement in various fields of endeavor. Io05 (I I 3 Public Papers of the Presidents IMPROVEMENTS IN BUDGETING, ORGANIZATION, AND MANAGEMENT The decisions made by Government are vital to so many aspects of our national life that improvement of the procedures through which these decisions are made should be a continuing major goal. A substantial number of important specific steps can and should be taken to improve these practices. Revisions in authorization and appropriation procedure.-Contract authority and authorizations to spend from debt receipts in basic legislation outside the appropriation process are generally inconsistent with sound standards of budget practice. The recommendations being placed before the Congress in this budget are based upon the principle that authority to make budget obligations and expenditures, whether financed from receipts or borrowing, should be granted by the Congress only in appropriation acts. The Congress has shown a growing tendency to require the annual enactment of authorizing legislation before appropriations may be made. Space programs, some mutual security programs, military and atomic energy construction in this budget, and much of defense procurement beginning in fiscal I962, will require separate authorizations before appropriations can be considered. Under this procedure these programs receive a duplicating review each year. At the same time the value of legislative consideration and expression of long-range program objectives and amounts is largely lost, and agency personnel devote an inordinate amount of time to the congressional process at the expense of effective administration of the continuing program. I hope the Congress will find it possible generally to make authorizing legislation cover program requirements for longer periods of time. In the interest of good government, methods to expedite the authorization and appropriation processes should be found. In order to facilitate early consideration, and also to show the Government program more fully, this budget includes specific proposed appropriations for a number of programs for which authorizing legislation must also be renewed. In most of these cases, proposals for such legislation will be submitted in a very short time. This procedure should be an improvement over the past practice of delaying submission of detailed estimates until the renewing legislation has been enacted. Before the executive budget is presented to Congress annually, the most careful consideration is given to the relationships of spending to io6 Dwight D. Eisenhower, i960 ( I3 receipts and borrowing, and to relative priorities of various programs. When the budget reaches the Congress, however, its consideration is usually fragmented because of the distribution of responsibilities among the various committees and subcommittees. I believe that the Congress should find means by which it can more effectively examine the budget as a whole and base its actions on the overall fiscal situation. Provision for item veto.-In passing the Alaska and Hawaii statehood acts, the Congress again recognized the value of an item veto by a chief executive by approving provision for its use in their State constitutions. Forty-one State Governors now have item veto authority. Many Presidents have recommended it, but the Congress has not yet granted the President of the United States that power. I again recommend it. Control of foreign currencies.-The Government receives from its operations considerable quantities of foreign currencies each year. Much of this currency is earmarked for grants to and loans in the country concerned, and some is available for programs of the U.S. Government. In many countries the currencies available to us are needed for conducting normal U.S. operations, yet such use is prevented in some cases by statutes or by the international agreements under which the currencies are received. As a result of a detailed study, this budget includes provisions to bring under budget and appropriation controls all foreign currencies available for U.S. agency operations which are received from the sale of surplus agricultural commodities. This change will not alter total appropriations or expenditures, but will increase those of the agencies using the currencies and decrease those of the Commodity Credit Corporation. Accordingly, I intend that no more allocations be made for uncontrolled use after the current fiscal year except for country grants and loans committed in international agreements, and I recommend that at an appropriate time the Congress remove from the laws the provisions which permit uncontrolled use for other purposes. I am also instructing that in future negotiations of international agreements we endeavor to avoid restrictions which would limit our ability to apply normal budget and appropriation controls to the use of those currencies which are earmarked for U.S. agency operations. Improved funding for public enterprises.-Major business-type activities of the Government should, with few exceptions, operate on a selfsustaining basis. Their budgets and accounts should permit ready I07 Public Papers of the Presidents comparison of their expenses and revenues. They should have simplicity in their financing structure and the flexibility in expenditures necessary to meet unforeseen business conditions, but should be expected to keep their obligations and expenditures within the resources provided by Congress for that purpose, and should be subject to annual review and control by the Congress. Accordingly, I recommend that the Rural Electrification Administration, the Farmers Home Administration, the Bureau of Reclamation, the power-marketing agencies of the Department of the Interior, and the loan guarantee programs of the Veterans Administration be financed through revolving funds. Similar recommendations may be made in due time for other business-type activities. Legislation is again being recommended to bring under budget review the activities of those few Government corporations which are now exempt from such review, but possess authority to draw money from the Treasury or to commit the Treasury for future expenditures. This can best be done by including them under the budget provisions of the Government Corporation Control Act. Revision of budget presentation.-In this budget more than half of the 626 appropriation accounts of the executive branch have been presented on a cost basis. The remaining appropriations, including those for the Department of Defense, will be converted to this basis as soon as possible. This budget also provides for accrued expenditure limitations for I2 appropriations, in accordance with legislation enacted in 1958. Such limitations are recommended to permit closer congressional control over annual expenditures. The customary totals of budget receipts and budget expenditures are distorted by the inclusion in both of interest and other payments by public enterprise funds to the general fund of the Treasury. Such interfund payments amounted to $355 million in the fiscal year 1959, and are estimated at $737 million for i960 and $779 million for i96i. While this duplication does not affect the amount of the budget surplus or deficit, it does overstate the size of the budget receipts and expenditures. To correct this it is planned that such amounts, while still shown within the figures for the affected agencies, will be eliminated from budget totals in financial statements on Government operations beginning with the fiscal year i96i. I also plan to present the i962 budget so as to remove this duplication. However, in order to preserve full comparability with previous budgets, no such adjustments are shown in the amounts in this docuI08 Dwight D. Eisenhower, i960 ment. If adjustments had been made, the net totals would appear as follows: ADJUSTED BUDGET TOTALS, EXCLUDING INTERFUND PAYMENTS [Fiscal years. In billions] 1959 I 960 I96I actual estimate estimate Budget receipts................................. $67. 9 $77. 9 $83. 2 Budget expenditures................................80. 3 77. 7 79. 0 Budget deficit............................. I 2. 4................. Budget surplus............................................ 2 4. 2 Strengthening of organization and management.-From the beginning of this administration I have placed emphasis on obtaining the best possible executive ability in the administration of the widespread and diverse activities of the Federal Government and on providing the best organizational structure in which officials can carry out their responsibilities. This continued emphasis is essential not only to operate the complex machinery of government effectively, but also to meet the constant flow of new problems of organization and management. In recent years several major organizational improvements have been made, including the establishment of the Department of Health, Education, and Welfare, the Federal Aviation Agency, and the National Aeronautics and Space Administration, as well as new organizational structures for defense programs and for civilian and defense mobilization activities. The many actions taken on recommendations of the two Hoover Commissions have also resulted in more efficient administration. The Reorganization Act of I 949, as amended, under which numerous executive agencies and functions have been reorganized, contains a limitation of June I, 1959, for the transmittal of reorganization plans by the President to the Congress. Accordingly, this authority is not now available. I urgently recommend that this cutoff date be removed in order to permit continued use of that act by me and by my successor in improving the management and organization of the executive branch. The search for better management and operations is a never-ending process. Like all large organizations, the Federal Government continues to have management problems. For example, property management offers an enormous challenge, and in the past year greater attention has been focused on it. Application of new data-processing techniques to lo9 (I I3 Public Papers of the Presidents Government operations is under constant study. The Post Office Department is improving its operations by installing modern methods of mail handling and transportation. The Treasury Department is using up-todate data-processing equipment to achieve more effective administration of disbursements and revenue collection. These are but a few of many examples, and this budget provides for further improvements. At my request, the heads of all Government agencies will give renewed emphasis to the review of management procedures and operating activities to make sure that the most moder methods, techniques, and equipment are in use. All agency heads have been encouraged to continue to search for the best practices in other Government agencies, in business, or in industry, to apply them in their own agencies to the extent possible during the term of this administration, and to leave to their successors a legacy of plans for further improvement. The plans presented in this budget meet the Nation's immediate needs and will support continuing sound economic growth in the future. The achievement of these plans, however, will in the last analysis depend on the people themselves. I believe our people have the determination to hold expenditures in check, to pay their own way without borrowing from their children, to choose wisely among priorities, and to match sound public policy with private initiative. It is that determination which is the key to continued progress and sound growth with security. It is that determination which reinforces the recommendations I have made. DWIGHT D. EISENHOWER NOTE: As printed above, the following grams and highlight summaries; (2) refhave been deleted: (I) illustrative dia- erences to special analyses appearing in the budget document. I14 4I Toasts of the President and Prime Minister Kishiof Japan. January 19, 1960 Mr. Prime Minister, Mr. Foreign Minister, and distinguished guests: It is a very great personal honor to welcome here in Washington the Prime Minister of Japan and his associates in government. They are here to sign, with us, a treaty of mutual cooperation and security. I 10 Dwight D. Eisenhower, I960 qI I4 This year is the centennial of an occasion very similar to this one. A predecessor of mine, 0oo years ago, welcomed to this city the first Japanese diplomatic mission to the United States-indeed, the first diplomatic mission that in modern times the Japanese had sent abroad. During those hundred years, tremendous changes have taken place. In our technology, in science, the changes have been such as to be revolutionary. And in the thinking of our two peoples, there has been likewise a great change. We have come to the realization that we were not, each of us, truly independent of ourselves and of others, but that there is among the nations-certainly the nations of the free world-a great and growing interdependence. In I860 Japan was just emerging from an isolation centuries old and almost complete in its character. The United States was living in an isolation of a different kind. We were so protected by two vast ocean areas that we had no real interest in the rest of the world, and certainly felt ourselves to be immune from the quarrels and struggles and problems and even the privations that others experienced. We have come a long way from that time. In 1960, our two countries represented here today are leaders in an effort to bring the free nations of the world into a closer cooperation through which they may achieve a better security for themselves and for realizing for all people the peace in freedom that they seek. The signing of this treaty this afternoon will, all of us hope, mark one significant step in progress toward that goal. I am hopeful that all of you present, after we have had our coffee in the Blue Room, will be guests at that signing, which will take place in the East Room immediately after we leave the Blue Room. It has been a particular delight for me to have Mr. Kishi, an old friend of mine, here representing his country this morning. We had a chance, because of this visit, to remark upon the tremendous changes, the tremendous progress that has been made in the last 2 years between the relations of our two countries. We agreed that there is ground for great confidence that these relations will be sound and will grow ever stronger. Now of course, for both of us, it would have been a little bit more enjoyable and possibly even more profitable to have had these conversations on the golf course. But in spite of the uncooperative character of the season, we did have these talks and both of us agreed that they have been not only interesting but fruitful. III Public Papers of the Presidents And it is in that belief and conviction that I propose a Toast to the Monarch whose able Prime Minister is our honored guest today. Gentlemen, and Madam, will you please join me in raising our glasses to His Majesty, the Emperor of Japan. NOTE: The President proposed this toast at a luncheon in the state dining room at the White House at 2: o6 p.m. In his opening words he referred to Aiichiro Fujiyama, Japanese Minister of Foreign Aff airs. In the closing paragraph the words "and Madam" referred to Madam Harue Yamashita, Member of the Japanese House of Representatives. An unofficial translation of Prime Minister Kishi's response follows: Mr. President, Mr. Speaker, and other honorable guests: Today I and my associates have the privilege of discussing political affairs with the President, for which I offer thanks from the bottom of my heart. Further, the President's generous Toast has touched me deeply, for which I am also thankful. In the two and a half years which have passed since I first met with the President to discuss matters of mutual concern and mutual cooperation, we have seen great progress toward achieving a position of equality and mutual trust. That we have done so is a blessing for the peoples of both our countries. Moreover, it also contributes in a great degree toward the achievement of that peace in the world which all peoples wish for. We all know that the President works constantly, with all of his energies, toward achieving peace in the world, with justice and freedom. Not only we in Japan, but the peoples of the entire world are well aware of this, and we all praise you for your activities, Mr. President. We pray for your success in your purposes. As the President has already explained, my purpose in coming to the United States at this time is to sign the new treaty of mutual cooperation and security between Japan and the United States. But this year, as the President has also indicated, marks the end of the first century since the first amicable diplomatic contact between our two countries. Throughout that hundred years, never with the exception of a brief few do I believe that we have had relations of anything less than a mutually profitable nature. I hope that in the coming hundred years that we will achieve even more progress toward a new relationship based on trust and cooperation. I think that what we are doing today is significant for both the peace of the world and for the prosperity of the peoples of the world. I hope that our friendship continues in this way through the next century, without even a few years such as those which blotted our relations in the past. I hope that the work we do here today will gain for us more than the hundred years of peaceful and cooperative relations that my predecessors gained. I know that we will continue to work hard to achieve this. In reply to the remarks of the President, I would like to thank him from the bottom of my heart. I would like to toast the health of the President, and pray that he may continue to work so energetically for the peace of the world and for the prosperity of all of the American people. Thank you. I 12 Dwight D. Eisenhower, 1960 q i6 I 5 eI Remarks at the Signing of the Treaty of Mutual Cooperation and Security Between Japan and the United States. January i 91 I 960 THE SIGNING TODAY of the Treaty of Mutual Cooperation and Security between Japan and the United States is truly a historical occasion at which I am honored to be present. This treaty represents the fulfillment of the goal set by Prime Minister Kishi and myself in June of I957 to establish an indestructible partnership between our two countries in which our relations would be based on complete equality and mutual understanding. The treaty likewise reflects the closeness and breadth of our relations in the political and economic as well as security fields. It is equally fitting that the Treaty of Mutual Cooperation and Security should be signed in the hundredth year after the first treaty between our two countries came into effect. On May 22, i86o, the first Japanese delegation to the United States exchanged ratifications of the Treaty of Amity and Commerce between our two countries. The subsequent hundred years have brought unbelievable progress and increasing prosperity to both our countries. It is my fervent hope that the new treaty signed today will usher in a second hundred years of prosperity and peace in freedom which the peoples of our countries and of all countries so earnestly desire. NOTE: The ceremony was held in the East in Philadelphia in I86o commemorating Room at the White House following the the arrival of the first Japanese diplomatic luncheon in honor of Prime Minister mission. Kishi. The text of the treaty and related On the following day the White House documents are published in the Depart- announced that Prime Minister Kishi had ment of State Bulletin (vol. 42, p. 184). invited the President to visit Japan on the At the conclusion of the ceremony occasion of the Japanese-American CenPresident Eisenhower presented Prime tennial, and that the President had acMinister Kishi with a reproduction of the cepted the invitation and would visit original medal struck at the U.S. Mint Japan about June 2o. i 6 e1 Joint Statement Following Discussions With Prime Minister Kishi of Japan. January I 9, I 960 THE PRESIDENT of the United States and the Prime Minister of Japan conferred at the White House today prior to the formal signing of the Treaty of Mutual Cooperation and Security between Japan and the I I3 Public Papers of the Presidents United States. Their discussions were devoted chiefly to a broad and comprehensive review of current international developments, and to an examination of Japanese-American relations. Japanese Minister of Foreign Affairs Fujiyama and American Secretary of State Herter also took part in the White House talks. Later the Prime Minister and his party conferred with the Secretary of State on matters of mutual concern to the two countries. The President and the Prime Minister first discussed the international situation. The President told the Prime Minister of the profound impression made upon him during his recent trip to South Asia, the Near East, Africa and Europe by the overwhelming desire throughout these areas for early realization of the goals of the United Nations, international peace, respect for human rights, and a better life. In discussing the international situation, the President stated his determination to exert every effort at the impending Summit meeting to achieve meaningful progress toward these goals. The Prime Minister expressed full agreement and support for the President's determination. In this connection, the President and the Prime Minister agreed that disarmament, with the essential guarantees of inspection and verification, is a problem of urgent and central importance to all nations, whose resolution would contribute greatly to reducing the burden of armaments and the risk of war. They expressed the further hope that early agreement can be reached on an adequately safeguarded program for the discontinuance of nuclear weapons tests. They concluded that the world is entering a period affording important opportunities which they have every intention of exploring most seriously, but only on the basis of tested performance not merely promises. Both leaders recognized that all of man's intellect, wisdom and imagination must be brought into full play to achieve a world at peace under justice and freedom. They expressed the conviction that, during this period and particularly until all nations abide faithfully by the purposes and principles of the UN and forego the resort to force, it is essential for free nations to maintain by every means their resolution, their unity and their strength. II. The President and the Prime Minister considered the security relationship between the United States and Japan in the light of their evaluation II4 Dwight D. Eisenhower, 1960 e I6 of the current international situation and declared that this close relationship is essential to the achievement of peace in justice and freedom. They are convinced that the partnership and cooperation between their two nations is strengthened by the new treaty which has been drawn up on the basis of the principles of equal sovereignty and mutual cooperation that characterize the present relationship between the two countries. Both leaders look forward to the ratification of the treaty and to the celebration this year of the centennial of Japan's first diplomatic mission to the United States as further demonstrations of the strength and continuity of Japanese-American friendship. In reviewing relations between Japan and the United States since their last meeting in June of I957, the President and the Prime Minister expressed particular gratification at the success of efforts since that time to develop the new era in relations between the two countries, based on common interest, mutual trust, and the principles of cooperation. Both the President and the Prime Minister looked ahead to continued close cooperation between the two countries within the framework of the new Treaty of Mutual Cooperation and Security. They are convinced that the treaty will materially strengthen peace and security in the Far East and advance the cause of peace and freedom throughout the world. They are convinced also that the treaty will foster an atmosphere of mutual confidence. In this connection, the Prime Minister discussed with the President the question of prior consultation under the new treaty. The President assured him that the United States Government has no intention of acting in a manner contrary to the wishes of the Japanese Government with respect to the matters involving prior consultation under the treaty. The President and the Prime Minister also discussed the situation in Asia. They reaffirmed their belief that they should maintain close contact and consultation with relation to future developments in this area. They agreed that Japan's increasing participation in international discussion of the problems of Asia will be in the interest of the free world. m. The President and the Prime Minister agreed that the expansion of trade among free nations, the economic progress and elevation of living standards in less developed countries are of paramount importance, and will contribute to stability and progress so essential to the achievement of peace in the world. 60295-61 11 II5 e i6 Public Papers of the Presidents The President and the Prime Minister exchanged views on the European economic and trade communities and on the role that can be played by the industrialized free world countries in the economic development of the less developed areas. Both leaders called particular attention to the urgent desire of peoples in the less developed areas of the world for the economic advancement without which they cannot preserve their freedom. They stressed the role which increasingly must be played by the industrialized nations of the free world in assisting the progress of the less developed areas. The President particularly referred to the increasing role the Japanese people are playing in the economic development of free Asia. In considering economic relations between the United States and Japan, the President and the Prime Minister recognized that trade between their two nations is of great benefit to both countries, noting that the United States is the largest purchaser of Japanese exports, and Japan is the second largest buyer of American goods. They expressed gratification at the growth of mutually profitable trade between the two countries. They reaffirmed their conviction that the continued and orderly expansion of world trade, through the avoidance of arbitrary and new unnecessary trade restrictions, and through active measures to remove existing obstacles, is essential to the well-being and progress of both countries. The Prime Minister stressed the importance of the United States and Japan consulting on a continuing basis with regard to economic matters of mutual interest. The President expressed full agreement to this view. IV. The President expressed his particular gratification that the Prime Minister could come to Washington on this occasion so important in United States-Japanese relations. The Prime Minister expressed his appreciation for the opportunity to meet again with the President. The President and the Prime Minister agreed that their talks will contribute to the continued strengthening of the United States-Japanese partnership. I i6 Dwight D. Eisenhower, 1960 I I7 17 41 Annual Message Presenting the Economic Report to the Congress. January 20, I960 To the Congress of the United States: I present herewith my Economic Report, as required by Section 3 (a) of the Employment Act of 1946. The Report was prepared with the advice and assistance of the Council of Economic Advisers and of the heads of the executive departments and independent agencies directly concerned with the matters it discusses. It summarizes the economic developments of the year and the steps taken in major areas of economic policy to promote the sound expansion of employment, production, and income. It also puts forward a program for the year I960 which, in the context of present and prospective economic conditions, would effectively implement the purposes of the Employment Act. The major conclusions and recommendations of the Report are set forth below, in part in the words of the Report itself. By the first quarter of 1959, the recovery that started early in 1958 had already carried production and income to levels higher than ever before attained in the American economy. A considerable further advance was scored during the remainder of I959, despite the deep effect of the I I6-day strike in the steel industry. The Nation's output of goods and services in the fourth quarter of 1959 was at an annual rate of $482 billion. When adjusted for price changes, this rate of output was 32 percent higher than the rate attained in the corresponding period in 1958. By December 1959, total employment had reached a record level, 66.2 million, on a seasonally adjusted basis. And personal income payments in December were at an annual rate of $39I billion, $24 billion greater than a year earlier. After adjustment for increases in prices, the rise in total personal income in I959 represented a gain of nearly 5 percent in the real buying power of our Nation. As we look ahead, there are good grounds for confidence that this economic advance can be extended through I960. Furthermore, with appropriate private actions and public policies, it can carry well beyond the present year. However, as always in periods of rapid economic expansion, we must avoid speculative excesses and actions that would compress gains into so I17 ( I7 Public Papers of the Presidents short a period that the rate of growth could not be sustained. We must seek, through both private actions and public policies, to minimize and contain inflationary pressures that could undermine the basis for a high, continuing rate of growth. Three elements stand out in the Government's program for realizing the objectives of high production, employment, and income set forth in the Employment Act: first, favorable action by the Congress on the recommendations for appropriations and for measures affecting Federal revenues presented in the Budget for the fiscal year i 96i; second, use of the resulting surplus, now estimated at $4.2 billion, to retire Federal debt; third, action by the Congress to remove the interest rate limitation that currently inhibits the noninflationary management of the Federal debt. Numerous additional proposals, many of which are described in Chapter 4 of the Economic Report, will be made to supplement the Federal Government's existing economic and financial programs. Following the budget balance now in prospect for the fiscal year i960, these three elements of the I 960 program will strengthen and be strengthened by the essential contributions to sustainable economic growth made through the policies of the independent Federal Reserve System. Fiscal and monetary policies, which are powerful instruments for preventing the development of inflationary pressures, can effectively reinforce one another. But these Government policies must be supplemented by appropriate private actions, especially with respect to profits and wages. In our system of free competitive enterprise and shared responsibility, we do not rely on Government alone for the achievement requires a blending of suitgrowth. On the contrary, that achievement requires a blending of suitable private actions and public policies. Our success in realizing the opportunities that lie ahead will therefore depend in large part upon the ways in which business management, labor leaders, and consumers perform their own economic functions. A well-informed and vigilant public opinion is essential in our free society for helping achieve the conditions necessary for price stability and vigorous economic growth. Such public opinion can be an effective safeguard against attempts arbitrarily to establish prices or wages at levels that are inconsistent with the general welfare. Informed public opinion is also necessary to support the laws and regulations that provide the framework for the conduct of our economic affairs. Dwight D. Eisenhower, i960 ( I8 Further progress is needed in establishing a broad public understanding of the relationships of productivity and rewards to costs and prices. It would be a grave mistake to believe that we can successfully substitute legislation or controls for such understanding. Indeed, the complex relationships involved cannot be fixed by law, and attempts to determine them by restrictive governmental action would jeopardize our freedoms and other conditions essential to sound economic growth. Our system of free institutions and shared responsibility has served us well in achieving economic growth and improvement. From our past experience, we are confident that our changing and increasing needs in the future can be met within this flexible system, which gains strength from the incentive it provides for individuals, from the scope it affords for individual initiative and action, and from the assurance it gives that government remains responsive to the will of the people. DWIGHT D. EISENHOWER NOTE: The message and the complete re- nomic Report of the President, i960" port (243 pages) are published in "Eco- (Government Printing Office, i960). i 8 eI Remarks to Participants in the Young Republican National Leadership Training School. January 20, i960 Mr. Chairman, ladies and gentlemen: It is indeed a most unexpected and a very welcome reception that you have given me. I expected to find a bunch of desks and people having their pads and pencils out and working here in a sort of office. I don't know why I didn't expect it was a luncheon. In a very few months we are going to come to a great decision in America. That decision has to be made by the electorate-the adult citizens of the United States. My life has been largely spent in affairs that required organization. But organization itself, necessary as it is, is never sufficient to win a battle. The first thing I would like to speak to you about is the cause, the purpose, for which you struggle. You have to believe something with your whole souls or you will never be effective in a political or any other I I9 (I 18 Public Papers of the Presidents campaign. You have to believe that government has a certain relationship to its citizen, certain responsibilities toward that citizen, including the responsibility to let the citizen alone when there should be no interference. You have got to understand how this kind of concept can translate into your daily and local problems; and then you must believe that this is the most important thing at this moment to get done. I don't think that I need to say anything about the enthusiasm with which you do this. Your very presence here attests to the enthusiasm you have for the venture in which you are already launched. But we need, then, in the kind of organizations that I have known, to know why we are fighting, what we are fighting for-and to have leaders to organize and crystallize these thoughts, these ideals, these purposes, make them plain to the entire group, and then organize it so that it is invincible. This is what I know you are doing. You are here as leaders. Organization should be carried down to the last detail. If we as Republicans don't make certain that every citizen, be he Democrat, Independent, or Republican, has had the opportunity to hear our explanation, then to that extent we have failed. If we are incapable of bringing to him at least the sense of the earnestness of our own convictions, we have likewise failed. If he is so rooted in tradition or preconception, or just plain stubbornness that he doesn't recognize your wisdom, why that's too bad. There are some like that, of course. But you must make sure that you give your story to this man in the best way you possibly can. The last thing is these leaders. I would hope that every one of you would put your whole selves, your whole souls, into the matter of seeing that the people you put in the positions of leadership-not merely the man you nominate for President, or for Governor, or county chairman or State chairman-but the person you select as a precinct worker, right down the line-have an organization, a purpose for which to work, and the leaders, including yourselves, to make this whole thing effective. Finally, let's not forget this one thing: just hard work-hard work in recruiting. Many years ago there was a Kansas farmer boy. His name was Bristow. He had one great act to his credit at least: he appointed me to West Point. [Laughter] But he was not a great speaker-there was nothing brilliant about him. One day a colleague, comparing him with another, said this man was 120 Dwight D. Eisenhower, 1960 a racy, speedy horse; he was showy, fast, and handy. He said Bristow was more a Clydesdale-he was made for draft work-he did the heavy work. But he said he noticed that whatever Bristow went after he achieved. Just the plain ability to stay in, day after day, carrying the burden, never quitting, is one of the things that Bristow was famous for. And he said one little thing that is going to be the last word I say to you. He said, "Just remember this: in public life moral and political courage cannot be attained after you enter that service. You must have it before, if you are going to do your part in sustaining the moral and political courage of the nation itself." I have talked far longer than I meant. I just can't tell you how grateful I am to each of you for what you are doing to keep up and preserve moderate government, and to get the kind of candidates you can support-not only you support, because you are Young Republicans, but that you can get a lot of other people to support. I don't mean that they have to be matinee idols. You have an example right in front of you where that wasn't important-but I do say they must be leaders, people who believe with their whole hearts in what you are working forand then we will win. Good luck to you. I will see a lot of you, I hope, here and there in the months to come until we can have another victory celebration in early November. Goodbye and good luck. NOTE: The President spoke at the Willard eration, presented a citation to the PresHotel in Washington. At the conclusion ident on behalf of the faculty of the of his remarks, Ned Cushing, Chairman Young Republican National Leadership of the Young Republican National Fed- Training School. I 9 4J Remarks at the Annual Midwinter Meeting of the National Association of Real Estate Boards. Yanuary 25, I 960 President Udall, and ladies and gentlemen: I have been talking to your President about this group, about the hour that you had to get up this morning in order to be at breakfast on time, and about the work you are doing. I noticed that he kept stressing that this is bipartisan. He apparently was afraid I was going to make a po 121 Public Papers of the Presidents litical speech. And you know, I am, because I am going to try to convince those people who are of another persuasion-so far as political parties are concerned-that what President Udall has been talking about and that what I have been talking about is to their interest. I should like to see them all banded together, and therefore, as they go out the door this morning, I would like to see them take another little oath of allegiance to the proper party and get behind these things. One of the reasons that I was anxious to come is because I know of your work in the great effort to prevent the debasement of our currency. But I am not going to talk about that kind of program and the ones that are related to it particularly. What I want to talk about is something a little broader and a little deeper. I know you people know all the risks there are to inflation because of excessive Federal spending. If we indulge in fiscal irresponsibility and irresponsible debt management, you know what it means. Therefore, I am not going to waste your time. What I am going to try to talk about is this: our mission-as people who do understand-is to inform others who are going along in a sort of cloud, believing that one party or another has all the virtues and the other none, or who are completely uninterested, particularly if registering and taking part in political action interferes with their golf or their shooting or any other recreation. I believe the greatest problem in America today is not simply keeping our currency from being debased and eroded. It is the need of understanding, the understanding of the United States about the issues that we face. People who oppose budgets that are balanced say, "Well, you think more of a balanced budget than you do about the education of some poor lad out in Kansas." If you say anything about America's responsibility for giving real leadership in the world in order that we may have an opportunity to see people follow the course of freedom-living in freedom-and maintain themselves against any kind of incursion from an atheistic philosophy, we see it attacked by saying "giveaway programs." To my mind there is nothing that can be more futile, and nothing that can be more indicative of an abysmal ignorance-if there is no demagoguery in it at all, but just ignorance-than to say that the programs the United States carries out in the world are "giveaway programs." 122 Dwight D. Eisenhower, 1960 y I9 Do we want peace? Do we want the free world strong, or do we not? I was reading a history of the United States by a man named Muzzey, and he talks about the amount of investment capital that flowed into our country in the fifties to seventies which was largely responsible for the tremendous expansion in our continent during those years. In i873 there was a sudden money panic in Austria, and it spread in Europe, and suddenly there was no capital coming into the United States. This country was in a panic. From i873, really, to i879 it never came out of it. We in our turn have the chance to help people invest properly, in their own freedom, in their own dignity, in their own security. If we don't do something like this, those people are going to be abandoned, and we are going to pay the bill in a very, very much higher currency than the mere dollars that we lend to them-or indeed at times grant to them-in order to keep this kind of peaceful program working and operating in the world. We need, of course, other countries-other industrial countries. What I am getting at is this: do you learn the facts? And, as you talk the facts, supporting the Government in economy, in efficiency, and preserving our dollar, are you taking these other great issues and getting your friends-all of the other realtors in the world that you can get hold of-and letting them see what the issues are? That is the biggest problem today, because if the United States is informed-even if you have to do it by injection-our people will make the right decisions. There is no question about that. We have had some of the difficult questions in the last few years brought to the people through the help of bodies such as this-for example, economy last year, and before that, the reorganization of the Defense Department. As quickly as people became aroused, there was no question about what Congress would do. So, first, I think my message is: congratulations for what you are doing-and the expression of the hope that you will go even a little deeper into the relationship of the United States Government with you, with your community, with your State, and with other nations. It isn't good enough to say, "Oh, well, so and so is Secretary of State, or so and so is Director of the Budget, or Secretary of the Treasury, so we can just forget it." We have to know. 60295-61 12 123 Public Papers of the Presidents You have to give your honest convictions, not because a man is a Democrat or a Republican or even a Populist or anything else. You have to do it because you believe something. And if you believe it on the basis of facts-and you can make enough other people believe those same facts-you will have in your hands the mightiest force there is in the United States: an informed public opinion. I come here because I know your record up to this point, and I hear your program being discussed as to what you are going to be doing next year. So I just come here to ask you: work harder, deeper, wider, for one cause only-the United States of America. I am very proud that I have been asked to come to see you this morning. I am really, truly complimented that I find so many ladies have found it possible to get up this time of the morning to come to such a meeting. Thank you all very much indeed. NOTE: The President spoke at the May- ing words he referred to James M. Udall, flower Hotel in Washington. In his open- President of the Association. 20 4T Statement by the President on the Occasion of the 8oth Birthday of General of the Army Douglas MacArthur. Yanuary 26, i960 AS GENERAL OF THE ARMY Douglas MacArthur reaches four score years of a life that in service and in distinction has had few equals in all our history, I speak for every citizen in expressing to him warm felicitations and the wish that he may have many more years of fruitful and rewarding activity. For more than a half century of active military service, in both World Wars and the Korean conflict as well, General MacArthur's name has been a symbol of courage, of patriotism, and of inspired generalship. Together these earn him a foremost place in the hearts of our people, and in the annals of our military endeavors. I value most highly my own years of service with this great leader and soldier. With Americans everywhere, I salute General MacArthur on his eightieth birthday. 124 Dwight D. Eisenhower, I960 I 21I 21 I ( The President's News Conference of January 26, I960 THE PRESIDENT. Good morning. I am ready for questions. Q. Merriman Smith, United Press International: Mr. President, the Cuban Premier, Fidel Castro, recently has stepped up the character and intensity of his attacks on the United States, and the American Government is apparently very concerned about this, as reflected in your meeting yesterday with Secretary Herter and Ambassador Bonsai. What, if anything, can you do about this situation, Mr. President? Do you feel that specific action is required by the American Government to preserve its position against these Castro attacks? THE PRESIDENT. Well, you are perfectly correct. We are concerned and, more than that, we are perplexed. We don't know really the foundation of these accusations that are made not only by the Prime Minister but appear in the publications in Cuba. Now, we have had these conferences with Secretary Herter and Ambassador Bonsai, trying to understand more about the motives and what they are really hoping to do. Over the last 2 days, now, with Mr. Herter and Mr. Bonsai, we have prepared a written restatement of our policy, as of now, concerning Cuba. It's in written form and you will get it. [Addresses Mr. Hagerty] Where is it? Mr. Hagerty: Outside. THE PRESIDENT. Outside? Mr. Hagerty: Yes, sir. THE PRESIDENT. Right outside the door. You can get a copy. So it explains our position and exactly what our policy is in the circumstances.1 Q. J. Anthony Lewis, New York Times: Mr. President, in your State of the Union Message you made reference to the Civil Rights Commission proposals and said they deserved a thorough study. Since then, the Attorney General has been studying them and reportedly thinking of some alternative ideas. Do you have anything now that you can say about the proposals? THE PRESIDENT. Yes. The Attorney General has another plan that he thinks, within the framework of existing law, will improve very much 1See Item 22. 125 e 2I Public Papers of the Presidents the procedures that have been followed. It is somewhat technicalexactly what the jurisdiction and the action possible for judges to take. So I would suggest, to get the thing exactly so it is not subject to misinterpretation, you should go to him; because it is a legalistic amendment that it would be difficult for me to describe in detail. Q. Chalmers M. Roberts, Washington Post: Mr. President, the last few days there has been some dispute over Secretary Gates with reference to estimates of Soviet military capabilities, and he has expressed the idea that we have changed our estimate from one based on capability to one based on intention. Could you tell us whether you, yourself, have had a part in this? Could you give us your thinking as a soldier on the reliability of an estimate that takes intentions into consideration? THE PRESIDENT. I don't think it's exactly correct-what you are now giving as a premise of your question. There was a premise to the effect that you just now suggest contained in a question put to Mr. Gates; he rather ignored that, and therefore his statements were subject to misinterpretation. Certainly his meaning was subject to misinterpretation. Frankly, what is really happening is that we have better estimates than we had in the past in this field. Let me call your attention to a little bit of history. Only 3 or 4 years ago there was a great outcry about the alleged bomber gap in favor of the Russians, and there was a great deal of talk about it and, actually, I think we got more-a billion dollars or something like that, $900 million more-for bombers that year than I asked for. Subsequent intelligence investigation showed that that estimate was wrong and that, far from stepping up their production of bombers, the, Soviets were diminishing it or even eliminating that production. Now, I think that we should never talk about an argument between intention and capability. Both of these things are, of course, necessary when you are making any intelligence estimate. Let me point this out: we've got all of the power that would be necessary to destroy a good many countries. We have no intention of using it. And the whole world knows that. We also know a number of things about the Soviets. Naturally we think that our intentions, stated intentions, are more trustworthy than those of people hostile to us. I do say that this whole business of intelligence, of producing intelligence and an intelligence estimate, is a very intricate and a very complex i26 Dwight D. Eisenhower, i960 C2 HI thing. You cannot take any one basis, any one channel of thought, to make a proper estimate on which a government or a commander can act. I would just say this: I think that Mr. Gates will find ways of clarifying exactly what he meant; because, in my opinion, he is a very splendid civil servant. Q. William McGaffin, Chicago Daily News: Mr. President, in view of the international prestige at stake, why are we not moving with a greater sense of urgency to catch up with Russia in the field of space exploration? THE PRESIDENT. Just start at that again. How did you start it, how did you start that question? Q. Mr. McGaffin: I said, in view of the international prestige at stake. THE PRESIDENT. Is it? Q. Mr. McGaffin: Well, sir, do you not feel that it is? THE PRESIDENT. Not particularly, no. We have got a record in 5 years in space exploration that is not only admirable, but I think is one to be proud of. The Soviets have made some very spectacular achievements, but I don't think that we should begin to bow our heads in shame, because in a few years we have gotten up and gone past them in many fields of this work, when they have been working on it ever since I945. So I would think that once in a while we ought just to remember that our country is not asleep, and it is not incapable of doing these things; indeed, we are doing them. Now, I don't deny that this spectacular achievement more excites the public imagination than does the good, hard, steady work of the scientists that are keeping satellites in the air and getting from them information all the time. It is more spectacular, and it has more effect on the casual reader. But in the actual examination of these two programs, I think we've got a pretty good record. Q. Felix Belair, New York Times: Mr. President, since we last met, the former British Prime Minister, Mr. Eden, has had another recollection, this one about Suez. And he says that the decision to go into Suez by Britain and France was made in June, or many months before the October going in, and that you, sir, were privy to that decision. THE PRESIDENT. Well, I don't like to comment on memoirs. As I have said, I think, here several times, Mr. Eden is a very good friend 127 (e 2 I Public Papers of the Presidents of mine, been one for years, and I had great confidence in him. Now I do recall this about the decision-or not decision, the action at Suez. As a matter of fact, I'll tell you one or two footnotes of history that might be interesting. I made it clear that the United States was going to stand by its interpretation of United Nations policy and the Charter. This meant that we would apply this to anybody, those that we thought our closest friends as well as those that we thought were in another category. At about this time-I have forgotten just exactly at what time the invasion started Q. Mr. Belair: October, wasn't it? THE PRESIDENT. Well, sometime in early October, Mr. Eban was going back to Israel for a short time. He came in to see me. And I told him I'd hoped that he would not allow any misinterpretation of sentiment in this country to sway him. Particularly because of possible Jewish sympathy for what seemed to be an intention building up around the mobilization of Israel at that time, I hoped he would not allow this to sway his judgment as to what this administration would do in doing its very best to prevent any outbreak of hostilities and the, you might say, settlement of international issues by force. I told him that if he thought that this would have any iota of influence on the election or that that would have any influence on me, he should disabuse his mind about it. In addition to that, both Foster Dulles and I went to great pains to show to Britain and to France what we would do under that set of circumstances. As far as the decision itself was concerned, for the 2 weeks just prior to the action, Foster Dulles told me, there wasn't a single item that came in from the British Foreign Office; as a matter of fact, he referred to it as "a blackout of news." Now, that is all I recall from this time. I am not trying to impugn anybody else's memory or anybody's interpretation of the facts as they were then. We had telephone calls-transAtlantic-in order to try to keep this thing on the rails. But that was our own attitude; that I know. Q. James B. Reston, New York Times: Mr. President, two other points on Mr. Belair's question. First, were there recordings of the telephone calls back and forth between Washington and London at that time; and, secondly, are you 128 Dwight D. Eisenhower, 1960 QI 21 putting in train any kind of historical, orderly way of gathering the historical material of the last 8 years together? THE PRESIDENT. Well, you know, Mr. Reston, for a good many years I've tried personally to keep a diary. And every evening I find that I have been a little-bit too tired, and I was going to do it tomorrow morning. Some of these calls were occasionally from my own room. It just struck me that I'd better get hold of Mr. Eden or someone else and talk to him, Mr. Churchill, or someone. I cannot recall for sure whether I always came back and gave the gist-I'm sure I always told it verbally to Secretary Dulles. Now, as far as it can be done through my official acts, and even in conversations, there is an orderly record made. For example, one of the types of correspondence that is going to the Presidential Library that will be built to take my papers will be Foster Dulles' personal notations of the conversations between ourselves, because that was a personal thing between him and me. All the others of his papers, as you know, are going to the Dulles Wing of the Princeton Library, as they properly should. He himself made that decision, and it is in his will. And his executors have the direction to keep those. There are a thousand other things we keep over here in the White House. The Secretary, and my own personal secretary, people like that, keep a record. The trouble is it gets so voluminous until you get experts to winnow it down, it's going to be a very difficult thing to do. Q. Mr. Reston: How far did you get with that diary, sir? THE PRESIDENT. Me? Q. Mr. Reston: Yes. THE PRESIDENT. I started, as I recall, in Panama in 192 I, and I found that, from time to time, as I looked back, oh, I'd find three or four notes over the period of 5 years; and I decided that it wasn't very much. [Laughter] Q. Harold R. Levy, Newsday: Sir, aside from any thought of economic reprisal against Cuba, it has been suggested that our present sugar quota system should be dropped, or at least modified, to permit free competition among producing nations. Do you think such a step would be feasible or desirable? THE PRESIDENT. As I say, I refer you to my statement as to what our policy is. But I do want to say this: the American people still have the greatest I29, (I 2 I Public Papers of the Presidents affection and the greatest interest in the Cuban people. We are not going to be party to reprisals or anything of that kind. At this moment it is not our time to do it, and certainly we are not going to intervene in their internal affairs. But when you read the whole statement, if you have further questions, why, come back to the next press conference and I'll be glad to try to answer them. Q. Sarah McClendon, El Paso Times: Sir, Mr. Gates has said that he did not make the intelligence decisions and he was not a member of the United States Intelligence Board which uses this intent, or approach. And then when we went to get the names of the U.S. Intelligence Board, we were told that two members had recently been added, about the time, I believe, they started making this new type of approach. But we couldn't get the names. Don't you think that the American people have the right to know who is making these decisions that may affect their security? THE PRESIDENT. I hadn't thought of this question at all. I'll askQ. Mrs. McClendon: Well, could you ask them to get those names? THE PRESIDENT. No, no; I won't say that. I'll just ask them what the procedure is. Q. Raymond P. Brandt, St. Louis Post-Dispatch: The joint congressional committee on your Economic Report has made a voluminous study and report which differs somewhat from your Economic Report. This brings up the question of your National Goals Commission, because they apparently established some goals. What is the status of your Goals Commission, and will they make a similar study? THE PRESIDENT. The study I am talking about is, first of all, to be bipartisan, and that I could not say for the kind of economic report to which you have just referred. This is to be bipartisan, done by scholars and experienced people. I hope that, at long last, we've gotten the thing on the rails and it will get to business. I am disappointed that its report necessarily will not be available in the time that I would hope it could have been, but it has been a long-term job getting it done. Now, I just point out about this report 1 which I hear is coming out this noon: always before, it has been the practice that, after the Joint Economic Committee gets the President's report and recommendation, they hold hearings; and then they make a report. Well, they're doing it this time without hearings, apparently. 1 Senate Report I152, 86th Congress (Government Printing Office, i960). I30 Dwight D. Eisenhower, i960 q 21 Q. Rutherford M. Poats, United Press International: Sir, while we appreciate that you have not announced, and therefore presumably not made your plans as to additional travel in the Far East, I wonder whether you can tell us now what your thinking is about the desirability and your own personal hopes as to whether you can extend your travels to visit some of the other countries which have invited you in that area. THE PRESIDENT. This is a big point: time. How can you, during the time that the Congress is in session, how can you so stretch this time as not to get into difficulty in your own country? Now, we have jet planes and all that sort of thing, but let us take this one point. A bill comes in; frequently, although I am kept informed while I am here what is going on, I have to sign it or refuse to sign it in a matter of 2 hours before the final minute for the action. If I'm gone too long, I run into the difficulty of not having the benefit of that kind of consultation and, therefore, my own constitutional duties are to that extent neglected. While I can make certain provisions, and always have been able to do so, to hold some of these bills before they leave the Capitol and come to the White House, this is not a process that ought to be usual. And so the thing becomes a question of time. Naturally, as long as I am going to be in the Far East, I should like to go to a number of places. Some of the people are old friends of mine. But the visit that I talked about was made possible only by the authority of the Soviet Government to permit my leaving it by the eastern exit. That makes it possible for me to go at least to Tokyo.1 Beyond that, I haven't studied the thing in detail. Q. Spencer Davis, Associated Press: Mr. President, further along that line, is there a possibility of a second trip out to the Far East when time permits? THE PRESIDENT. You know one thing-come next July there is no one going to be interested in what my visits are, either you people or anybody else. [Laughter] Q. Donald H. Shannon, Los Angeles Times: Going back to Mr. 1 On January 17 the White House announced that as a result of personal exchanges between the President and Chairman Khrushchev it had been agreed that the President would visit the Soviet Union June I0-I9, I960. On January 20 the White House announced that the President would visit Japan about June 20. On April 12 a further release stated that the President's visit to Japan would take place June I9-23, and that he would make a brief visit to Korea on June 22. 3 I (I 2I Public Papers of the Presidents McGaffin's question about space exploration, Mr. President, you distinguished between space exploration and defense in your State of the Union Message, but a great many people feel that the subjects are not really distinguishable. I wonder if you could say something along your-your views, how you divide them up? THE PRESIDENT. I doubt that I can say anything more than I said in my State of the Union Message, because I assure you that I worked 3 months on that, and it represents my very definite, fixed conclusion. These things are different. They are for different purposes. Now, no one has ever denied that if the Defense Department can find some space activity that can contribute to its defense, well, quite naturally, we'd exploit it. But the difference between space activity as such and defense is really quite marked, and not nearly as confused as it is, for example, between, say, Air Force and Navy and the Navy and the Army, and all of the three of them put together. Q. Robert G. Spivack, New York Post: Mr. President, I'd like to get back to your earlier answer to the question about civil rights. Without getting into the technicalities of what the Attorney General is working on, is the alternative that he is proposing an alternative to the Federal registrars proposal or to the civil rights bill that now is bottled up in the House Rules Committee? THE PRESIDENT. Oh no, he's not making-we stand by the recommendations we've already made. But he thinks he's got a scheme that will make the insurance of the voting right more firm, and that is the thing you should talk to him about so then you know exactly what he's got in mind. Q. Mrs. May Craig, Portland (Maine) Press Herald: Mr. President, our railroads complain that they suffer from competition with Government-subsidized shipping, aviation, highway transport. Now, if we are planning to put the Minuteman and other solid fuel missiles on railroad cars as mobile launching pads, how are we going to save the railroads from being ruined by this competition and not here when we need them? THE PRESIDENT. Well, I thought your question was a pretty good one until you got the Minuteman in it. [Laughter] No one knows exactly how those things will happen now. No one could be more concerned than I am about the railroads. I think that they are governed by antiquated laws and regulations; and, frankly, I think some of the trouble is their own. 132 Dwight D. Eisenhower, 1960( (e 2 1 In the great golden days of the seventies and early eighties, when everybody could get rich by either building a railroad or pretending he was going to and selling stock-if you will read in some of the parts of those late sixties and early seventies, you will find it mostly scandal-well, everybody wanted an independent railroad. I think our railroad systems are proliferated into so many different independent things-of course, everybody likes to be president, don't forget that-so you've got these things that are not always economic and efficient. But even allowing for that, I believe we ought to have a real overhaul of all the regulations and the controls, and give them a chance to be prosperous. I guess 4 years ago now, I had a Cabinet meeting that proposed, in a transportation report, just something of that order. As a matter of fact, my transportation committee remains alive. I am all for some reform in this whole thing in the railroads, I assure you. Q. Thomas N. Schroth, Congressional Quarterly: Speaking of next July, sir, last Saturday the Democrats had a great many attacks to make on your administration, and particularly on Vice President Nixon. One of them called him a "juvenile delinquent." Do you care to comment on the remarks of the Democrats last Saturday? THE PRESIDENT. Well, I couldn't comment except to laugh. Q. William H. Y. Knighton, Jr., Baltimore Sun: Mr. President, at the last press conference, you yourself raised a very interesting point when you suggested that we get an opinion whether a second term President should run for Vice President. THE PRESIDENT. Not "should"-I said "could." Q. Mr. Knighton: Could-yes, sir; could. We can't get an official opinion in our status, but you can. Have you, and if you can run, will you? [Laughter] THE PRESIDENT. I'll tell you this much-I'll be more like these nonrunning candidates; I'll be cagey-the afternoon of that press conference, there was a note on my desk saying a report from the Justice Department-I don't know whether the Attorney General himself signed this, but the report was, it was absolutely legal for me to do so. That stopped it right there, as far as I'm concerned. Q. William J. Eaton, United Press International: Mr. President, there was a great deal of criticism of the Taft-Hartley law during the steel dispute. Do you plan to ask Congress to revise the emergency procedures I33 (e 2 I Public Papers of the Presidents of that law to deal more adequately with major strikes? THE PRESIDENT. I have asked the Attorney General, the Secretary of Commerce, Secretary of Labor, and the Chairman of the Economic Advisers to study this matter thoroughly, so that in some timely fashion, if there is anything I should or could do, I'd like to know. Q. Lillian Levy, National Jewish Post and Opinion: Mr. President, a clause was written in the last appropriation legislation empowering you to withhold aid to foreign countries which discriminate against American citizens on the basis of race or creed. Are you contemplating taking such action against countries that have continually so discriminated, or do you have another remedy that you think would be more effective? THE PRESIDENT. I have seen no specific case of this kind brought before me on my desk for a long time, and I'll just have to take a look before I can state what my policy will be, for this reason: these exceptions are written in the law so as to put the specific cases before the President and make him decide whether or not such-and-such a thing is to the best interests of the United States. Now quite frequently such a decision has to conflict with, you might say, the normal or general policy. You have to do it because of specific cases. That is all I can say, because I don't know the cases you are talking about this morning. Q. Miss Levy: I was referring specifically to Saudi Arabia, which for several years has discriminated against our citizens. THE PRESIDENT. I think the recommendation of the State Department would be-I'd stop there and then if they have anything to tell me, why, I'll be glad to take it up again. Marvin L. Arrowsmith, Associated Press: Thank you, Mr. President. NOTE: President Eisenhower's one hun- from IO:31 to I I:oi o'clock on Tuesday dred and seventy-eighth news conference morning, January 26, 1960. In attendwas held in the Executive Office Building ance: 235. 22 tJ Statement by the President Restating United States Policy Toward Cuba. January 26, i960 SECRETARY HERTER and I have been giving careful consideration to the problem of relations between the Governments of the United States '34 Dwight D. Eisenhower, 1960 and Cuba. Ambassador Bonsal, who is currently in Washington, shared in our discussions. We have been, for many months, deeply concerned and perplexed at the steady deterioration of those relations reflected especially by recent public statements by Prime Minister Castro of Cuba, as well as by statements in official publicity organs of the Cuban Government. These statements contain unwarranted attacks on our Government and on our leading officials. These attacks involve serious charges none of which, however, has been the subject of formal representations by the Government of Cuba to our Government. We believe these charges to be totally unfounded. We have prepared a re-statement of our policy toward Cuba, a country with whose people the people of the United States have enjoyed and expect to continue to enjoy a firm and mutually beneficial friendship. The United States Government adheres strictly to the policy of nonintervention in the domestic affairs of other countries, including Cuba. This policy is incorporated in our treaty commitments as a member of the Organization of American States. Second, the United States Government has consistently endeavored to prevent illegal acts in territory under its jurisdiction directed against other governments. United States law enforcement agencies have been increasingly successful in the prevention of such acts. The United States record in this respect compares very favorably with that of Cuba from whose territory a number of invasions directed against other countries have departed during the past year, in several cases attended with serious loss of life and property damage in the territory of those other countries. The United States authorities will continue to enforce United States laws, including those which reflect commitments under Inter-American treaties, and hope that other governments will act similarly. Our Government has repeatedly indicated that it will welcome any information from the Cuban Government or from other governments regarding incidents occurring within their jurisdiction or notice, which would be of assistance to our law enforcement agencies in this respect. Third, the United States Government views with increasing concern the tendency of spokesmen of the Cuban Government, including Prime Minister Castro, to create the illusion of aggressive acts and conspiratorial activities aimed at the Cuban Government and attributed to United States officials or agencies. The promotion of unfounded illusions of this kind can hardly facilitate the development, in the real interest of the two I35 (I 2 2 Public Papers of the Presidents peoples, of relations of understanding and confidence between their governments. The United States Government regrets that its earnest efforts over the past year to establish a basis for such understanding and confidence have not been reciprocated. Fourth, the United States Government, of course, recognizes the right of the Cuban Government and people in the exercise of their national sovereignty to undertake those social, economic and political reforms which, with due regard for their obligations under international law, they may think desirable. This position has frequently been stated and it reflects a real understanding of and sympathy with the ideals and aspirations of the Cuban people. Similarly, the United States Government and people will continue to assert and to defend, in the exercise of their own sovereignty, their legitimate interests. Fifth, the United States Government believes that its citizens have made constructive contributions to the economies of other countries by means of their investments and their work in those countries and that such contributions, taking into account changing conditions, can continue on a mutually satisfactory basis. The United States Government will continue to bring to the attention of the Cuban Government any instances in which the rights of its citizens under Cuban law and under international law have been disregarded and in which redress under Cuban law is apparently unavailable or denied. In this connection it is the hope of the United States Government that differences of opinion between the two governments in matters recognized under international law as subject to diplomatic negotiations will be resolved through such negotiations. In the event that disagreements between the two governments concerning this matter should persist, it would be the intention of the United States Government to seek solutions through other appropriate international procedures. The above points seem to me to furnish reasonable bases for a workable and satisfactory relationship between our two sovereign countries. I should like only to add that the United States Government has confidence in the ability of the Cuban people to recognize and defeat the intrigues of international communism which are aimed at destroying democratic institutions in Cuba and the traditional and mutually beneficial friendship between the Cuban and American peoples. 136 Dwight D. Eisenhower, I960 ([ 23 23 Ii Address in Los Angeles to the Nationwide Republican "Dinner With Ike" Rallies. January 27, I960 Mr. Vice President, Chairman Morton, fellow Republicans, and all other supporters of good government: First, may I thank the Los Angeles audience here for the warmth of your personal welcome. I am deeply grateful. And I must say a word to all those workers, all those good Republicans that made this dinner such a success and started this year off as a good Republican one. And on top of that, I am overwhelmed by the verbal tributes that have come from my friends and associates and that we have heard over the television. It is indeed a proud moment for me. Before leaving early in December for a tour of foreign nations, I received a letter from a young lady, who lives in Arvada, Colorado. It reads: "My dear Mr. President, "I have just turned 21 years of age. I am now old enough to vote and mature enough to take part in political elections. "My problem is, which party am I best suited to serve. I thought you would be able to help me by telling me what the Republican Party stands for. What are its goals and in what way may I help it to achieve them?" Since that time, her letter has been much on my mind. Thinking about this evening's program, I asked friends to invite her and her husband to the Denver dinner, in the hope that I may convince her that she wants to be a Republican. So-Shirley Jean, to you, and I trust, to all other young or undecided voters I can reach, here is my answer. First of all-I am sure what you mean to ask is not what party you can best serve, but rather through what party you can best serve your country. I start by observing that no party, at any one time, embraces all of the policies and beliefs any of us might deem ideal. Yet a major party, through its platforms, programs, record, and leaders, takes on a character and appearance of its own before the public. Tonight, we are concerned with Republican beliefs-with what Republicans have accomplished, particularly over the past 7 years-and with how we are trying to perform the tasks ahead. I37 Public Papers of the Presidents Republican conviction, since the days of Lincoln, has always held that people are supreme. Our party first came into power to bring equal protection of the law to our people. Republicans insist that the personal, political, and economic freedoms of the individual are his most precious possessions and are inseparable. If any one of these is lost, eventually all others must disappear. Never should a citizen transfer any of his own rights and responsibilities to government, except in those cases where necessity clearly demands. Indeed, the first and more sacred responsibility of government is to help people protect their inalienable individual freedoms. Now these convictions form the foundation of the entire Republican structure of political doctrine and practice. It is true that government has to do many things which, individually, we cannot do for ourselves. So, for example, local governments provide police protection and street maintenance. But the principle still holds true; governments must refrain from unnecessary meddling in the daily, normal problems of living and working. Now today one of the sharpest controversies in public life is centered on economic freedom. Many feel that economic life has become so complicated that individuals and private business cannot function fairly and profitably. They hold that economic progress now depends largely upon Federal intervention and Federal appropriations. Republicans flatly reject the argument that the Nation can pump its way to permanent prosperity by an outpouring of Federal dollars. We are opposed to those extremists who argue that the Federal Government should become the master mechanic of our economy-with sweeping authority to tinker with the free processes of the competitive enterprise system. That system provides the best possible protection to our own personal and political freedoms and to individual opportunity. Moreover, it is the most productive system ever devised. Only when an activity is operated most efficiently as a practical national monopoly should it be a Federal responsibility, as for example, interstate highways and the handling of the mails. But the production of the automobiles on the highways, or the stationery we use in the mails, should always be privately done. Now we go to a second basic Republican doctrine. A healthy, free society requires a wide diffusion of power and responsibility. Power belongs to all the people, and citizens should never permit its excessive I38 Dwight D. Eisenhower, i960 concentration in any hands-industrial combines, labor groupments, or even government. Concentration of power is dangerous and susceptible to abuse. It courts disaster for the individual. Already too much power and responsibility-and tax money-have drifted to Washington. Therefore, in all those things that must be done by government we strive to have the responsibility borne by local and State governments, which are closest to the people. But even adherence to this Republican conviction finds the Federal Government carrying immense responsibilities. The list is a long one. For example-the Government must develop a national defense in which our citizens can have confidence. It must so manage its fiscal and financial affairs as to prevent the debasement of our currency, thus helping to protect the citizens' savings, pensions, and insurance from erosive inflation. It must assist in developing water power; conserving and reclaiming land resources; cooperating with States and institutions in education; relieving hardships in areas where individuals are not able to find employment; in supporting medical, agricultural, and other research so that American science and technology will be able to meet every challenge of the future; helping eliminate the vast and difficult problems in agriculture as well as the human and material blight that is imposed upon many of our cities by crowded slums; developing a cooperative program among Federal, State, and city authorities to reduce the hazards of travel on America's skyways. There are dozens of other Federal responsibilities. And for this reason the National Government owes it to every citizen to see that all of these approved programs-some of them costing billions of dollars-are performed efficiently and economically. Integrity in Government is mandatory. The Republican record in all these things is one to merit the confidence of every American citizen. Let us look at specific cases: Providing an effective defense is a vital service that the Federal Government must perform in a world divided by opposing ideologies. This is a nonpartisan subject-but of such vast importance that it is necessary for us to take note of its administration these past 7 years. The real test is to provide security in a way that effectively deters agI39 Public Papers of the Presidents gression but does not itself weaken the values and institutions we seek to defend. This demands the most careful calculation and balance, as well as steadiness of purpose, not to be disturbed by noisy trumpeting about dazzling military schemes or untrustworthy programs. Neither effort nor expense has been spared to provide a sure defense. Moreover, we have not wasted our strength or resources. Because of our insistence upon adequacy and efficiency, our country is, over-all, the strongest power on earth, both militarily and economically. Nevertheless, America's unchanging goal for decades has been the pursuit of peace-through negotiation from a position of strength, in concert with other nations that share our ideals. We and our loyal friends are striving to make it possible for the new or less industrialized nations to strengthen themselves economically and where necessary, militarily-so that all of us together can live and prosper in peace. These programs we call Mutual Security. They comprise part of our whole effort to keep the free world strong, safe, and free. There is no more vital program that is to be executed within the Federal Government. Reviewing the foreign field over these 7 years: The independence of South Korea has been sustained. Iran was saved for the free world. The explosive situation in Trieste was resolved. Austria is now a free nation. Stability has returned to Jordan and Lebanon. Today, there is no war. The international atmosphere recently shows signs of improvement. Now we seek ironclad self-enforcing agreements on the grave issues of nuclear test suspension, arms control, the status of Germany and Berlin. Progress is slow and frustrations many, but we shall continue to approach the task with patience, firmness, and candor. Though national security and programs for strengthening the free world are costly, we can provide for them adequately and can do so while keeping ourselves economically solvent and fiscally sound. But to do this we must, first, make the national need our sole guide for expenditures. Extravagance and security are mutually hostile-and in prosperous times like the present, only Federal extravagance can plunge us needlessly and deeper into debt. Republicans believe that America is tired of a constantly growing debt-with annual bills for interest alone well over nine billion dollars. 140 Dwight D. Eisenhower, i96o ( 23 We want to stop the cowardly habit of passing our own obligations as a mortgage to our children. This is a first Republican determination. So, when we consider a new Federal project, we ask ourselves whether it is truly necessary, or does it merely serve the selfish desire of some particular group? Is it of such importance to the Nation as to justify either an increase in taxes or an addition to our debt-which spurs a constant rise in prices, and a cheapening of the currency. Do we want or need to saddle the taxpayer with ever greater taxes? And Republicans say No! And they have acted and are acting accordingly. This good Republican record extends into many fields. Consider education. Today, the Federal Government is aiding America's schools and colleges in many vital ways. Among these is a program for constructing great numbers of additional classrooms, to supply great deficiencies. But, again, the Republican policy is to help the States help themselvesnot to allow a Federal take-over of America's institutions of learning. In agriculture our purpose is to assist the farmer in meeting adverse conditions over which he has no control; flood, drought, and unreasonable fluctuations in the price of farm products. Antiquated legislation in this field has built up huge and costly surpluses that depress prices and rapidly grow unmanageable. Republicans have devised and supported legislation to help correct these conditions, but the majority opposition in Congress has prevented its passage. We want our farms to be run by farmers, not Washington bureaucrats. And above all we want our farmers to receive their fair share of the Nation's income. The Department of Health, Education, and Welfare has, in 6 years, spent over one billion dollars in Federal aid for medical research seeking to find cures for killing and crippling diseases. The discoveries made are immediately available to any individual or group who can use them. At the same time we are determined that the Federal Government is not going to displace the family doctor. This is just another example of Republican efforts-and there are many others-to satisfy human needs, with government help where necessary, but not through government domination. To pay for costly and highly publicized "phony" panaceas for all our problems, many politicians seem to believe that money by the bale can be printed without shrinking-a kind of Sanforized dollar! Well, we know better! I41 Public Papers of the Presidents And it is the unshakable aim of the Republican Party to make certain that your dollar will buy today and tomorrow as much as it did yesterday. In the 7 years just preceding I953 our general price structure went up an unconscionable 48%. In the 7 Republican years since 1953 the price rise has been held to i o %. This record is one for every thinking citizen to applaud, but it is not good enough-we Republicans propose to make it better. If we are to hold down prices, one thing we must do is avoid excessive governmental spending so you may have more money for the things you want for yourself. The Republican program this year avoids any increase in the debt. Next year that debt will be reduced by a substantial amount. And remember-more Americans are working than ever before. Real per capita income has never been higher. This is true prosperity. In every way, America enters this new decade stronger than ever before. One other point-Republicans have faith in America, her strength, her destiny. Yet in late years, the tendency to disparage the unmatched power and prestige of our country has become an obsession with noisy extremists. Time and again we hear spurious assertions that America's defenses are weak; that her economic expansive force can be sustained only by Federal spending; that her educational and health efforts are deficient. In this kind of preachment, political morticians are exhibiting a breast beating pessimism in the American system. Of this I am certain; America's economic strength is not in Washington, D.C., nor in public spending. It is in the creativeness and industry and spirit of our people. Fellow Republicans, our duty is to make certain that our party is always better qualified than any other to guide our national destiny. This involves a deep sense of individual responsibility. In the great and divinely-ordained sweep of time, it is our children who live at the forward edge of history. The future belongs to them and to those who are to follow. We must not by our actions or inaction today, tarnish the bright prospects for that future. And so I close, Shirley Jean, with a postscript directed at a most vital part of your question-what you can do to help achieve these Republican goals. I42 Dwight D. Eisenhower, 1960 23 First, study carefully the great issues facing our Nation. Second, see your precinct leader and volunteer for doing some of the tasks he will have for you. Next, make certain to register; don't let your husband and your friends forget to register. Fourth, bring all your enthusiasm to the business of getting able, personable, Republican candidates to run for public office. Fifth, vote. Get everybody else to vote. Sixth, every day of your life support your Nation in its search for a peace with justice, and take an active part in preserving and strengthening those values that in America we place above all else-freedom, equality of opportunity, and human dignity. So doing, you will be a good Republican and a great citizen. Thank you and good night. [Following his formal address the President said:] I have been asked to make an announcement. As one who has spent a great deal of his life traveling back and forth to Europe and this country and all over the world, I know only too well how wonderful it sounds in a meeting of this kind to hear one of our traditional patriotic songs. As a salute to our beloved country, I am going to ask Mr. Gordon MacRae and his closed circuit cross-country chorus, the collegiate singers and the Howard University Choir, and all of you seated in this great dinner across the Nation, to stand and sing "God Bless America." Mr. MacRae, would you please lead off. [The President's response upon receiving a gold medal award follows:] Thank you, Mr. Chairman, and everybody here, both for my wife and for myself. This is indeed a great honor. The title of the medal itself is enough to overwhelm one with emotion, and I know that my wife will share my pride and my very great appreciation of this most generous-overgenerous act. On the part of you, Mr. Chairman, and your organization, to all of you-thank you. NOTE: The President spoke at 7:40 p.m. The President was introduced by the in the Pan Pacific Auditorium in Los An- Vice President, speaking in Chicago. geles. The address was broadcast by U.S. Senator Thruston Morton of Kenclosed-circuit television to similar dinner- tucky, Chairman of the Republican Narallies in 83 cities. tional Committee, served as toastmaster, '43 4 -3 Public Papers of the Presidents speaking in New York. The young lady bearing the inscription "Peace and Prosfrom Arvada, Colo., to whom the Presi- perity" was made by Harold Ramser, dent referred, was Mrs. Shirley Jean Chairman of the Republican State CenHavens. tral Committee and of the Los Angeles The presentation of the gold medal dinner. 24 e( The President's News Conference of February 3, I960 THE PRESIDENT. Good morning. I have one correction I want to make for a statement I made in my last press conference. I said that Ambassador Eban was actually in my office when I made a particular statement about my attitude toward the impending Suez crisis at that time. I have had the staff look up the records. Actually, Foster Dulles came to my office at 6 o'clock in the evening, stating that he was to see Mr. Eban in a few minutes, and I made the same statement that I gave you last night [time] but I made it to him. I had confused that incident from what I said then with other visits, or at least another visit of Mr. Eban. So, again, it shows that my memory, at least, is not perfect. Q. Marvin L. Arrowsmith, Associated Press: Some California Republicans seem to be rather surprised that you did not mention Vice President Nixon in your Los Angeles speech. Now that Mr. Nixon seems to have no opposition for your party's presidential nomination, do you intend to stick to your announced policy of endorsing no one before the convention? THE PRESIDENT. I admit that such a concern now seems to be a bit academic. But it has been my policy, and I think it is a correct onewe're all human, and we don't know what is around the next corner. I maintain that there are a number of Republicans, eminent men, big men, that could fulfill the requirements of the position; and until the nominations are in as a matter of history, why, I think I should not talk too much about an individual. I have so often, because of his close association with me, had opportunity and the occasion to express my admiration and respect for the Vice President, I am quite sure at least he is not unaware of my sentiments in this regard. Q. Merriman Smith, United Press International: Mr. President, the burden of some recent statements on Capitol Hill, primarily by generals, has been that we are well behind the Russians in missile development, '44 Dwight D. Eisenhower, 1960 ( 24 with little or no prospect of catching up with them in the near future. I'd like to ask you, sir, as far as man's effort to enter space, as well as the development of military missiles, do you feel any sense of urgency in catching up with the Russians? THE PRESIDENT. I am always a little bit amazed about this business of catching up. What you want is enough, a thing that is adequate. A deterrent has no added power, once it has become completely adequate, for compelling the respect of any potential opponent for your deterrent and, therefore, to make him act prudently. I saw Monday morning in the Congressional Record-just after I got back from California-that day's Congressional Record had a statement of America's history in missile development. It's a very comprehensive one. I commend it to your attention to show what has been done-with a very slow start and with a complete neglect for a period-in the period, particularly in ICBM and IRBM development. And the record, I insist, is one to be at least quite gratified about. As I recall, for I960 there is, for missiles of all kinds, appropriated $6,690 million. This, it seems to me, is getting close to the point where money itself will [not] bring you any speed, any quicker development. Q. Rowland Evans, Jr., New York Herald Tribune: Mr. President, you mentioned the word "deterrent" in your answer to that last question. Yesterday, General Power said that our deterrent of heavy bombers cannot be properly safeguarded unless it is put on a full air alert. You discussed this with us before, but in view of General Power's testimony yesterday, would you give your view on that question? THE PRESIDENT. No; too many of these generals have all sorts of ideas. But I do point this out: I have got the Secretary of Defense, whom I trust, and who I know is honest in his study, analysis, and conclusions. That is Secretary Gates. And beneath him, assisting him, is the Chairman of the Chiefs of Staff, whom I similarly trust; and the Joint Chiefs of Staff, with those two, are my military advisers. I have been long enough in the military service that I assure you that I cannot be particularly disturbed because everybody with a parochial viewpoint all over the place comes along and says that the bosses know nothing about it. Now, I don't think anyone's trying to impugn the patriotism and the earnestness and the integrity of the group I have just mentioned. I think, myself, they are the ablest people we could get. That's the reason they were selected. '45 e 24 Public Papers of the Presidents Q. Alan S. Emory, Watertown Times: As the No. I Republican in the country, sir, are you seriously concerned about the future and the vigor of the Republican Party, and do you think the party needs more crusaders? THE PRESIDENT. Well, I know it ought to have a lot more recruits. [Laughter] Now, you say vigorously, or whether I am concerned. I don't know whether that's the right word. I am genuinely interested to see the Republicans telling their story more eloquently and better than they have in the past, more often and on a more widespread basis, and to get these recruits that we need. Q. Robert C. Pierpoint, CBS News: Mr. President, quite aside from the military implications of the space race, I believe your head of the USIA, George Allen, said recently before Congress that he feels we are in a race to space with the Russians, whether we want to be or not, and that also the United States prestige seems to be low because of our lag behind the Russians. Now, I think that last week you told us that you don't believe that the international prestige of the United States is at stake in this race. I wonder if you could straighten out that confusion. THE PRESIDENT. I made a long trip; and certainly if there wasn't an evidence that the prestige of America was rather high, then I was very badly mistaken in my own conclusions. And I think that most of the people of this group that went along with me, that they would have been mistaken. It is idle to say that just exactly as we like to see this country ahead in every single activity that seems to us worthwhile, we want to see them ahead in space. This is a spectacular area in which we are now working. But let us remember this one thing: the reason for going into space, except for those activities that are carried on by the Defense Department as having some value to the security of the country, is purely scientific. Therefore, you are not talking about racing them in finding the particular items or in naming the particular course that you are going to run in this race; you work out a proper and an appropriate plan of scientific exploration, and you follow it positively, rather than trying to follow along behind somebody else. Now, I have said time and again that because the Soviets are far ahead in this very large booster and engine, that, so far as distant space exI46 Dwight D. Eisenhower, 1960 ploration is concerned, they are going to be ahead in that regard for some time, because it takes time to get that engine built. Just taking over, this Saturn project from the Army: I have, after long study by the space agency, determined that the amount of money that we took over with that particular thing was not sufficient; and there's another hundred million being devoted, or at least recommended for devotion, to it. I believe it will be appropriated; and I believe that implies not only the determination of the United States to go ahead rapidly with this thing, I believe that we can look forward at the proper time to success. Q. Ray L. Scherer, National Broadcasting Company: In the general context of the so-called spirit of Camp David, do you think the fact that the lend-lease talks came to nothing indicates anything about the general Soviet desire to negotiate on outstanding issues? THE PRESIDENT. Again, I must repeat myself. I wasn't aware of any spirit of Camp David. I have heard it quoted a number of times, and I think that it was originated by people other than ourselves. No one denied that the talks there went on in an atmosphere that was personally friendly. That's the only way the spirit of Camp David could be defined. But I think that these difficulties, when in this instance the Soviets tried to put two or three other problems together with the lend-lease talks, was a typical maneuver and there was nothing done. But it doesn't mean that sooner or later there won't be something done. Q. William H. Knighton, Jr., Baltimore Sun: Mr. President, don't you think the country ought to have the benefit of your advice as to who you think the other Republicans are who could be President? THE PRESIDENT. Well, I'll tell you what: there's a number of them, and I am not going into the business of nominating people. That's not my job. I want to make this very clear: I am not dissatisfied with the individual that looks like he will get it, not by any manner of means. I just simply say there's a number that could perform the duties of the office with distinction. Q. Mrs. May Craig, Portland (Maine) Press Herald: Mr. President, there is concern in the Capital for fear you may feel it necessary to give atomic information, or even actual custody of atomic weapons, to those countries where we're going to have bases for nuclear weapons. Do you want to do that and, if so, inasmuch as we took our bases out of France 60295-61 13 I47 e 24 Public Papers of the Presidents on that quarrel with De Gaulle, would that mean we might put nuclear bases back into France? THE PRESIDENT. Well, you've got about a three-barreled question there. But, Mrs. Craig, the law itself says what information the Executive can give to particular nations, and it defines rather accurately the nations to whom you can give this information. As far as giving away the bombs, this cannot be done under existing law. I do believe this: that where we are allied with other nations and we are trying to arm ourselves in such a way as to make certain of our defense, we should try to arm them in such methods and ways as will make that defense more strong and more secure. I would not ever, even if the law permitted, give away information that was still, in our opinion, withheld from the Soviets themselves. But when the Soviets have the information and know-how to do things, it's pretty hard for me to understand why we don't do something with our allies, as long as they themselves stand with us firmly in defending against the probable aggressive intent of communism. Q. Charles H. Mohr, Time Magazine: You made clear in an earlier answer, Mr. President, how strongly you felt that SAC was not vulnerable to being wiped out in an enemy attack. Since this is at the heart of the current argument, I wonder if you could tell us whether you believe that we would get strategic warning of any enemy missile attack or, if you don't believe that, could you give us some of the reasons why you feel that SAC is not vulnerable, in a period of 2 or 3 years, to a very crippling blow. THE PRESIDENT. If you will take the things that the Soviets could probably do 3 or 4 years from now and then we sit right where we are now and do nothing, well, that's a different story. I just say this: I don't believe that anyone today can destroy all of our capabilities for retaliation, and they cannot destroy today enough of them that we couldn't retaliate very effectively to the point of destructiveness to them. Now, as we go ahead, they will go ahead. But I would say that 3 years from now, if we are working as hard as we do now, we are going to be in the same relative position. Q. Chalmers M. Roberts, Washington Post: In view of your answer to Mrs. Craig's question and the fact that the nuclear test negotiations 148 Dwight D. Eisenhower, g960 q( 24 at Geneva seem to be stalled, Mr. President, do you feel that it's becoming really impossible to stop the spread of nuclear weapons to the so-called "fourth" countries, or do you still look upon the test ban negotiations as a way to do this? Are you prepared to keep on with the moratorium? THE PRESIDENT. Of course, if you had real test bans that applied to all nations, then the only way other nations could get weapons would be through sale, transfer, or gift. Of course, it concerns any thoughtful individual as to the problem of the spread of these weapons to smaller and other nations, as the process of their manufacture may become more simple and as just through, you might say, the method of absorption the necessary know-how becomes more widespread. I am of the belief that, if you could have now a ban on all testing that everybody could have confidence in, it would be a very, very fine thing to stop this-for this very reason, if no other: it is a very expensive business, to begin with. The very first bomb we produced, I think, cost America $2 billion or more before we ever had the very first one. Since that time, although you'd have to look this up, I think our appropriations have never been below $2 billion a year. So it is an expensive business. Q. Mr. Roberts: Could I ask, sir, are you prepared, in face of the difficulties at Geneva, to keep our negotiator there more or less indefinitely? You put the moratorium on sort of a day-to-day basis months ago. THE PRESIDENT. I want to keep him there as long as there is the slightest chance of success. We should get this kind of agreement as soon as we can. Q. Laurence H. Burd, Chicago Tribune: Mr. President, where do you expect to be and what do you expect to be doing one year from now? THE PRESIDENT. I hope, out in the desert or down shooting quail in Georgia-or maybe just sitting in a rocking chair. Q. Felix Belair, New York Times: Have you decided yet, Mr. President, in connection with the Panama Canal, what form of visible evidence of titular sovereignty should be displayed over the canal? THE PRESIDENT. I'll tell you, Mr. Belair, here is a question that, if it had been asked me 3 years, I'd have known exactly what I would have said. One of the earliest tours I had in my military service was in Panama. I learned to know the people pretty well. I stayed there something over 3 years, I think, from '21 onward-6 years after I got out of West Point. I49 qI 24 Public Papers of the Presidents I think that not all of the difficulties that have come about have been entirely because of their demands. It is perfectly true there was a treaty made many, many years ago, more than 50, now. And the conditions of that treaty were changed from time to time as the whole condition of affairs in the world so demanded, just exactly like our Constitution has been amended 22 times. I think that at times, because we did buy the territory-and everyone knows that the primary source of revenues for the Panamanian nation is the wealth that is brought there through the canal operations-that we suddenly decide that we must be a little bit too stern in our treatment of them. They are people that are sensitive. I don't know exactly now what you can do, because we have people that have suddenly gotten themselves into a state that believes that even if you ever had, for example, a flag flown as a courtesy to the nation in which titular sovereignty still resides, that this would be a very, very great abdication of American rights and responsibility. I think that this is getting a little bit beyond the rule of reason, because the treaty says that the United States may act, and in all respects can act, as if it were completely sovereign. Such language means that there is a titular sovereignty in the other nation, in my opinion. So I haven't decided any particular thing.' Q. David Kraslow, Knight Newspapers: Mr. President, there seems to be considerable pressure in Congress for amending the Social Security Act this year. Can you tell us, sir, if the administration is planning to recommend any changes in the Social Security Act and what those changes might be, generally? THE PRESIDENT. There is under consideration a possible change to run up the taxes by a quarter of a percent to make greater provision for the care of the aged. There has been no conclusion reached in the administration; I have not yet made any recommendation on it. 1 On April I 9 the White House announced at Augusta, Ga., that the President had that day approved a nine-point program for improvement of relations between the United States and Panama with reference to operations in the Canal Zone (Department of State Bulletin, vol. 42, p. 798). Later, on September 17, the Associate Press Secretary to the President announced that the President had "as a voluntary and unilateral decision on the part of the Government of the United States, approved and directed the flying of the flag of the Republic of Panama together with the United States flag on a daily basis in Shaler's Triangle in the Canal Zone." 150 Dwight D. Eisenhower, 1960 qf 24 Q. John Scali, Associated Press: Mr. President, of late, Premier Khrushchev has started to talk, both publicly and privately, about Berlin and the Soviet demand that the West sign a separate peace treaty with East Germany. In his January I4 speech to the Supreme Soviet, he said that, unless the West agreed to a separate peace treaty with East Germany, the Soviets would go ahead and sign one with all the consequences that would flow from that. Now, do you regard such talk as violating the understanding that you reached with him at Camp David on the removal of threats from the Berlin situation? THE PRESIDENT. I'll say this: at Camp David nor anywhere else did he ever retreat from the statement that he had a right, if he so wanted, to make a separate treaty with East Germany; bringing to everybody's attention, of course, the fact that the West had made a special treaty with West Germany. But when he adds that this would immediately — when he talks about the consequences-make all of East Germany, including West Berlin, a sovereign, cutting it off from connections from the West, well, that, of course, would be a very grave situation that would be brought about. Q. Carleton Kent, Chicago Sun-Times: Mr. President, the Senate yesterday passed a proposed constitutional amendment which abolishes the poll tax, gives the District of Columbia citizens the right to vote and Governors the right to appoint temporary members of the House under certain wartime conditions. How do you feel about this? THE PRESIDENT. I think they make pretty good sense. Certainly I would think the poll tax, where you abolish it only for Federal elections, and to give the residents of the District the right to vote for the national ticket, I think are reasonable and should be done. The other one is one that I think is brought about by the realization of the catastrophes that could occur if there should ever be the tragedy of war. Now, I might add I have a couple more that I think ought to be added. I think Congressmen ought to be elected for 4 years, at the same time with the President, that is, the lower House, so called, the House of Representatives. I think also that the item veto should be an authority of the President and so stated in the national Constitution; because I know one thing: that would defeat pork barrels. Q. Garnett D. Horner, Washington Star: Awhile ago, sir, while you were talking about the atomic weapons and information to allies, I got '5' Public Papers of the Presidents the impression that you might lean toward favoring changing the law so that you could provide allies with custody of weapons that Russia has or knows how to make. Was that correct or wrong impression? THE PRESIDENT. From the very beginning, from what I knew about allied cooperation, and so on, I have always been of the belief that we should not deny to our allies what your potential enemy already has. We do want allies to be treated as partners and allies, and not as junior members of a firm who are to be seen but not heard. So I would think that it would be better, for the interests of the United States, to make our law more liberal, as long as we classify our countries as those that we are confident, by our treaties and everything else, they'd stand by us, and stand by us in time of trouble. Q. Edward P. Morgan, American Broadcasting Company: I would like to pursue this discussion about our relative progress with the Soviet Union from a different angle. Have you considered the possibility that the American public may be confused by a psychological aspect of our struggle with the Russians? They may have more missiles than we. They did beat us to the moon. Their rate of economic growth now is faster than ours, and they are, net, turning out, for example, more trained engineers than we do. Now, individually, none of these factors is decisive. But cumulatively, is it not possible that a state of mind, a dangerous state of mind, is being created under which we would be in a position or be forced into a position to accept a posture of second-best in everything or anything. THE PRESIDENT. Well, I think here and there you can find that in a country as big as Russia you are going to be certainly second-best; didn't they win the Olympic games last time? Q. Mr. Morgan: I believe they did, sir, in many events. THE PRESIDENT. Well, what did we do with that? Let's remember this: if they find an athlete, they take him, and it's a national responsibility to train him and build him up until he's the best there is in the world, if they can make him such. Now we have a free enterprise; we place above all other values our own individual freedoms and rights; and we believe, moreover, that the operation of such a system in the long run produces more, not only more happiness, more satisfaction, and pride in our people, but also more goods, more wealth. 152 Dwight D. Eisenhower, 1960 Let's remember that dictatorships have been very efficient. Time and time again, look how we were overawed, almost, by Hitler's early yearsoverrunning Poland, and then overrunning the West, and going into Africa. Of course, we talked about this great efficiency. This is dictatorship. If you take our country and make it an armed camp and regiment it, why, for a while you might do it with great morale, too, if you could get people steamed up like you did in wars; you might do this thing in very greater tempo than we now are doing it. Democracy, we hope, is an enduring form of government. We are, therefore, trying to do these things at the same time we keep these values. I would like to see our people-and I admit that they get disturbed and probably at times alarmed about something, particularly when the headlines give it an interpretation far beyond its true meaning, like hitting the moon. I've heard people say, "Well, soon there'll be colonies on the moon and they'll be shooting at the earth from the moon." I saw that in one story. Well, this is long after you and I will be gone; that, I'll assure you. Now, what we should think about and talk about more in the world are the values which we do treasure. They don't have them. And since we believe that in the long run men do learn to have this same belief about the same values, I believe that there is just as much of the seeds of self-destruction in the Communist system as they claim is in ours-they claim the inherent conflicts within our system are going to destroy it. I think our people ought to have greater faith in their own system. Let's remember, you people are the bosses of the American Governmentyou the people, by your votes and your representatives, and so what do you want? All right, you can make the decisions. All you have to do is to inform yourselves and you will make good decisions. And that is exactly what we are doing, to say we want these things or we don't want them. So let's just be sure that we don't kid ourselves that somebody else, different from ourselves-because people in government are just you people. All right, then it's your responsibility to make sure that you are secure, that you are not alarmed and certainly not hysterical. Q. Mr. Morgan: Then, sir, you don't feel that there is a basic danger of defeatism under the present circumstances? THE PRESIDENT. Put it this way: none in my soul; I'll tell you that. I53 Public Papers of the Presidents Marvin L. Arrowsmith, Associated Press: Thank you, Mr. President. NOTE: President Eisenhower's one hun- from 10:29 to II:02 o'clock on Wednesdred and seventy-ninth news conference day morning, February 3, i960. In atwas held in the Executive Office Building tendance: 225. 25 eT Citation Accompanying Awards for Oceanographic Research. February 4, i960 THE PRESIDENT of the United States takes pleasure in presenting awards to: MR. JACQUES PICCARD LIEUTENANT DON WALSH, U.S. NAVY DR. ANDREAS B. RECHNITZER LIEUTENANT LAWRENCE A. SHUMAKER, U.S. NAVY CITATION: For outstanding contributions to the United States and science in the field of oceanographic research. These officers and distinguished scientists are richly deserving of the appreciation and acclaim of the Government and the people of the United States. Their marked professional skill and resourcefulness, their scientific studies and courageous efforts while conducting operations at great personal risk, culminated on 23 January i960 in a dive by the bathyscaph Trieste to the unprecedented depth of 37,800 feet, the deepest spot on the ocean floor known to man. This dive and others before it were made in the interest of science and to collect data for the United States Navy in this previously unexplored area of the earth. This, the first penetration of the deepest parts of the ocean, impressively demonstrates that the United States is in the forefront of oceanographic research. As President of the United States, I extend the nation's recognition and gratitude for your resourcefulness, courage and devotion to duty and your contributions to our country and to all free men. I offer my personal congratulations. NOTE: The President presented the tenant Walsh, the Legion of Merit; to awards in his office at the White House, Dr. Rechnitzer, the Distinguished Civilas follows: to Mr. Piccard, the Distin- ian Service Award; to Lieutenant Shuguished Public Service Award; to Lieu- maker, the Navy Commendation Ribbon with Metal Pendant. 154 Dwight D. Eisenhower, 19601 'f 26 26 4T Memorandum Concerning a Career Executive Development Program in All Departments and Agencies. February 5, I 960 To the Heads of Executive Departments and Agencies: Our government faces the possible loss of two-thirds of its top career managers over the next ten years. A survey of 75I career officials in grades GS-i6, I7 and i8, indicates that two out of every three will be eligible for retirement during the next decade. Further, two out of every five will be eligible for retirement by I963. In addition, of course, there will be certain losses because of death, disability and resignation. This situation emphatically and clearly points to the importance of instituting a positive program which will assure the filling of the anticipated vacancies with persons of outstanding leadership ability, creative imagination and sound judgment. Upon each of us rests the responsibility for seeing to it that the critically important functions of the top career management positions continue to be carried out by persons of the highest competence. Nothing less will satisfy our obligation to the American people for effective and efficient administration of their government's programs. To properly discharge this responsibility, careful planning will be needed in each agency and on a government-wide scale. Employees with executive potential in positions below the top career levels must be identified, trained and developed over a period of time to increase their capacity to perform the complex functions of career managers. The success or failure of our efforts to identify, select and develop competent career managers will determine the future effectiveness of government operations, both here and abroad. I have asked my Special Assistant for Personnel Management to provide leadership to the departments and agencies in taking such steps as may be necessary to see to it that we continue to have the best available executive talent for these top civil service posts. He will work with you and the Civil Service Commission toward this goal. In the last analysis, however, the results of the quest for topnotch administrators in the career service will depend on the steps each agency takes to find persons of executive potential and to train and develop them for 60295-61 14 I 55 qy 26 Public Papers of the Presidents the responsibilities that lie ahead. I know each of you shares my concern that the ablest persons are selected for top career civil service positions. I expect you to give personal leadership towards the achievement of this objective within your organization. DWIGHT D. EISENHOWER NOTE: See also Items 27 and 28. 27 eI Memorandum Directing the Special Assistant for Personnel Management To Provide Leadership in the Career Executive Development Program. February 5, i960 Memorandum for the Special Assistant to the President for Personnel Management: As you know, the government faces a continuing loss each year of some of the executives filling the top career management positions. To meet this problem, we must be assured a continuing supply of welltrained career employees to replace those leaving the service. The military services, of course, have well-developed programs for the replacement of top officers going out of the service. I understand the civilian services generally have none. While I fully realize that the same requirements and conditions do not apply with equal force to the military and civilian services of government, both must have an adequate and continuing supply of well-trained and competent leaders and managers if they are to meet the demands of today's world. Career men and women are the backbone of any organization. Without able career managers, government, in particular, cannot function effectively and efficiently. I am most anxious that we, in this Administration, do our utmost to see to it that the government has a sound program for the selection, development and training of its career civil servants. Therefore, as my Special Assistant for Personnel Management, you will take the leadership in the development of a government-wide program to meet this objective. With respect to positions in the competitive Civil 156 Dwight D. Eisenhower, i960 4f 28 Service, you will, of course, cooperate with and depend upon the Civil Service Commission. In regard to other personnel systems, you will cooperate with the heads of the agencies concerned. All department and agency heads are being advised of my concern in this matter. DWIGHT D. EISENHOWER NOTE: Eugene J. Lyons was serving as Personnel Management. Special Assistant to the President for See also Items 26 and 28. 28 eI Memorandum to the Chairman, Civil Service Commission, on the Career Executive Development Program. February 5, I 960 Memorandum for the Chairman of the Civil Service Commission: No area of personnel management is of greater importance to sound administration than the selection and development of highly competent career administrators. As an indication of my personal concern in the matter I have sent the attached letter to the heads of all executive departments and agencies. You will note that I have asked my Special Assistant for Personnel Management to assume responsibility for providing leadership in instituting service-wide action programs and to cooperate with the Civil Service Commission and the departments and agencies in stimulating better executive selection and development programs within agencies. Therefore, it is my wish that you work with The Special Assistant for Personnel Management in devising methods for strengthening and coordinating existing programs and in developing new ones. As the operating arm for the largest segment of the Federal personnel management field, the Commission will continue to provide assistance to the departments and agencies in strengthening their executive development programs. In this connection please review existing Civil Service programs concerned with recruitment and examining, position classification, career and employee development and take whatever steps may be necessary to strengthen them and to achieve maximum coordination. In addition, the Commission will assemble periodically and report to I57 ( 28 Public Papers of the Presidents me, information summarizing significant developments and progress being made by the departments and agencies in this area. Because of your own long-time interest in this phase of Federal personnel management, I am confident that I can depend on you to help to make this program successful. DWIGHT D. EISENHOWER NOTE: Roger W. Jones was serving as sion. Chairman of the Civil Service Commis- See also Items 26 and 27. 29 eJ Letter to Dr. Henry Wriston on His Acceptance of the Chairmanship of the Commission on National Goals. February 7, I960 [ Released February 7, 960. Dated February 5, 1960 ] Dear Henry: I am glad to learn that you have agreed to accept the Chairmanship of the Commission on National Goals, and that this study will be carried forward through the American Assembly. As I have indicated in our conversations, I am hopeful that the panel will develop a broad outline of coordinated national policies and programs for the next decade and longer, and that it will, in the process, set up a series of goals in various areas of national activity. While I would hope that your report could be completed before my term of office is ended, I am far more concerned about the breadth and depth of the study than in the exact timing of its completion. I am appending hereto a brief memorandum outlining in general terms some of my reasons for requesting you to participate in this inquiry. I should like to emphasize my desire that the inquiry be conducted free of any direct connection with me or other portions of the Federal government. However, all Federal agencies will cooperate with you in any way you may desire, as will my staff. With many thanks for your willingness to undertake this important assignment. Sincerely, DWIGHT D. EISENHOWER I58 Dwight D. Eisenhower, i96o 4I 30 NOTE: Dr. Wriston is president of the president. (See Item 86.) American Assembly, an affiliate of Colum- For the President's memorandum conbia University. President Eisenhower cerning the Commission on National had been closely associated with the As- Goals, together with a list of members, see sembly during his term as the university's Item 30. 30 e Memorandum Concerning the Commission on National Goals. February 7, i960 [ Released February 7, 1960. Dated February 5, 1960 ] THE PRESIDENT'S hopes for the Commission were stated in his State of the Union message in January, 1959, as follows: "We can successfully sustain security and remain true to our heritage of freedom if we clearly visualize the tasks ahead and set out to perform them with resolution and vigor. We must first define these tasks and then understand what we must do to accomplish them. "If progress is to be steady we must have long-term guides extending far ahead, certainly five, possibly even ten years... They must be goals that stand high, and so inspire every citizen to climb always toward mounting levels of moral, intellectual and material strength..." The genesis of the study is rooted in our tradition and our history. Ours is a land carved out of a hostile wilderness, populated by people filled with a spirit of freedom and adventure, made strong by sheer perseverance, and dominated always by strong moral and religious beliefs. It was logical that for several generations we devoted all our energies to growing-developing our vast lands and resources, building a way of life. But the industrial revolution which we helped nurture has now reached a stage that makes it impossible for us to live in isolation. We are now the strongest nation on the earth. This fact brings with it the realization that with power comes responsibility. We have found ourselves in a position in which the entire Free World looks to us for leadership and help, in the first instance against an aggressive Communist conspiracy, supported by rapidly growing economic and military strength, but more broadly in the worldwide struggle for realization of decent conditions of life. But behind these problems of our external relationships, lie the more basic issues of realizing our own ideals for the development of American society. Unless we can press forward toward these goals, in an era of I59 e 30 Public Papers of the Presidents vast technological change and development, we shall not be able to fulfill our world role or, most basically of all, be true to ourselves and to the ideals on which this nation is based. The Commission on National Goals is being asked to identify the great issues of our generation and describe our objectives in these various areas. To do so will be to give us the basis for coordinated policies in both the domestic and international areas. One American aspiration is to develop a world in which all peoples will be living at peace under cooperative policies with maximum standards of living and opportunity for all. But more specifically, the Commission undoubtedly will want to consider how within a framework of free decision-making our economy can best be developed to meet the Communist challenge and simultaneously progress toward established goals. The Commission will also want to consider how our educational and other social institutions can best be shaped to develop mind and spirit; how individual well-being, health, and initiative can be nurtured without undesirable centralization of authority and responsibility; and how the various levels of our government can best contribute to the nation's welfare. Since a universal understanding of basic issues and goals is, in a free government, necessary to its own perpetuation, one of the greatest accomplishments of the Commission could well be the outline of effective methods for producing this understanding. The Commission has the opportunity to sound a call for greatness to a resolute people, in the best tradition of our Founding Fathers. It is no wonder that a nation so recently thrust into a position of world leadership is sometimes bewildered by its new role. That we have emerged so rapidly and accepted so readily our position of leadership is but another proof of our resilience. Now we must cast our eyes ahead toward the future. Some obstacles along this path will be frightening. Many decisions we must make are not easy. But through the haze of indecision one sees the strong and vibrant image of a future America-where modern-day pioneers, with deep religious conviction, develop the richness of a free society, where the dignity of each and every individual is recognized and his ability to enjoy life is enhanced. NOTE: A copy of the President's mem- Assembly, Graduate School of Business, orandum was transmitted to each member Columbia University, who was designated of the Commission. In addition to Dr. chairman, and Frank Pace, Chairman of Henry Wriston, President of the American the Board, General Dynamics Co., Inc., i6o Dwight D. Eisenhower, 1960 (J 3I who was designated vice chairman, the Science Monitor, and President, United members as announced by the White States Chamber of Commerce; Colgate House were: James Killian, President of Darden, former President of the Univerthe Corporation, Massachusetts Institute sity of Virginia and former Governor of of Technology; Alfred Gruenther, Presi- Virginia; James Conant, former President dent, American National Red Cross; Clark of Harvard and former Ambassador to the Kerr, President, University of California; Federal Republic of Germany; George Learned Hand, Retired United States Cir- Meany, President, AFL-CIO; and Crawcuit Judge for the 2d Circuit, New York; ford Greenewalt, President, E. I. DuPont Erwin Canham, Editor-in-Chief, Christian de Nemours and Co., Inc. 3' I Remarks at Dedication of the Veterans of Foreign Wars Memorial Building. February 8, 1960 Mr. Chairman, Commander Feldmann, distinguished guests, comrades-inarms of past years, and friends: It is an honor to participate in this moving tribute to American veterans, living and dead. The emblem of the Veterans of Foreign Wars, here established, will be, I am told, perpetually lighted, symbolizing the Nation's eternal gratitude for the service and sacrifice of those who served its colors in the cause of freedom. The struggle for freedom does not stop when the guns of war cease firing. Nor will it stop so long as freedom is suppressed or threatened anywhere in the world. Freedom makes its rightful claim upon the daily life of everyone who enjoys its benefits. No deed is too small to count. Every one of us contributes in his own way to the strength of America, and the strength of this country is dedicated to the preservation of freedom. So our efforts add up to more than simply our own health, our own well-being and economic development. They answer the disbelieving and the doubtful that in freedom man can achieve his rightful destiny; and that men of all nations and races can live in dignity together as they seek the common goal of peace with justice. Our daily preoccupations too often divert us from our duty in the service of this noble cause. We accept freedom much as the air we breathe. We lose sight of the connection between our own acts and the vigor of our governmental representatives in preserving the values we deem priceless. We tend to forget the high price that was paid for the privilege of living in 161 (I 3I Public Papers of the Presidents freedom, and the price that would be exacted from all mankind if freedom should ever be allowed to shrivel and weaken in the earth. This is why it is well for us to pause, to acknowledge our debt to those who paid so large a share of freedom's price. As we stand here in grateful remembrance of the veterans' contributions we renew our conviction of individual responsibility to live in ways that support the eternal truths upon which our Nation is founded, and from which flows all its strength and all its greatness. Thank you very much. NOTE: The President spoke at noon at resentative James E. Van Zandt of Pennthe site of the new national memorial on sylvania, chairman of the dedication Maryland Avenue near the Capitol. In committee, and Louis G. Feldmann, Comhis opening words he referred to U.S. Rep- mander in Chief of the Veterans of Foreign Wars. 32 UT Special Message to the Congress on Agriculture. February 9, i960 To the Congress of the United States: I urgently call attention, once again, to a most vexing domestic problem-the low net income of many of our farmers and excessive production of certain farm products, largely due to economic distortions induced by years of Federal interference. We are most fortunate that our problem in agriculture is over-abundance rather than a shortage of food. But it defies common sense to continue to encourage, at the cost of many millions of tax dollars, the building of ever larger excess supplies of products that, as they accumulate, depress farm prices and endanger the future of our farmers. The wheat situation is particularly acute. Federal funds tied up in wheat approximate $3 Y2 billion. Although this means that well over thirty percent of the total funds invested in inventories and loans of the Commodity Credit Corporation goes for wheat, this crop provides only six percent of the cash receipts from sales of farm products. The government sustains a net cost of more than $i,ooo a minute-$ i,500,000 every day-the year around, to stabilize wheat prices and income. Day by day this program further distorts wheat markets and supplies. Its only future is ever higher cost. Inexorably it generates ever larger surpluses which must be expensively stored. Ultimately, if our governI62 Dwight D. Eisenhower, I960 (I 32 ment does not act quickly and constructively, the danger is very real that this entire program will collapse under the pressure of public indignation, and thousands of our farming people will be hurt. I think the American people have every right to expect the Congress to move promptly to solve situations of this kind. Sound legislation is imperatively needed. We must quickly and sensibly revise the present program to avoid visiting havoc upon the very people this program is intended to help. Every additional day of delay makes a sound solution more difficult. I have repeatedly expressed my preference for programs that will ultimately free the farmer rather than subject him to increasing governmental restraints. I am convinced that most farmers hold the same view. But whatever the legislative approach, whether toward greater freedom or more regimentation, it must be sensible and economically sound and not a political poultice. And it must be enacted promptly. I will approve any constructive solution that the Congress wishes to develop, by "constructive" meaning this: First, that price support levels be realistically related to whatever policy the Congress chooses in respect to production control, it being recognized that the higher the support the more regimented must be the farmer. Second, that price support levels not be so high so as to stimulate still more excessive production, reduce domestic markets, and increase the subsidies required to hold world outlets. Third, for reasons long expressed by the Administration, that we avoid direct subsidy payment programs for crops in surplus; likewise, we must avoid programs which would invite harmful counter measures by our friends abroad, or which, while seeking to assist one group of farmers, would badly hurt other farmers. Within these three guidelines, I am constantly ready to approve any one or a combination of constructive proposals. I will approve legislation which will eliminate production controls, or make them really effective, or allow the farmers themselves to choose between realistic alternatives. I am willing to gear supports to market prices of previous years, or to establish supports in accordance with general rather than specific provisions of law, or to relate price supports to parity. I recognize that these observations are general in nature. They are intentionally so in order to leave the Congress room for alternative constructive approaches to this problem. If the Congress should so act, I 163 q4 32 Public Papers of the Presidents urge an orderly expansion of the Conservation Reserve Program up to 60,000,000 acres, with authority granted the Secretary of Agriculture to direct the major expansion of this Program to areas of greatest need. In connection with the expansion of the Conservation Reserve, the Department of Agriculture stands ready to assist, if desired, with the development of sound legislative criteria governing the administration of this program in the light of its experience gained through its operations of the past four years. As part of the Conservation Reserve Program, I would be willing to accept an authorization, with proper safeguards, to the Secretary of Agriculture to make payments in kind in whole or in part for the reduction of acreage devoted to crops in surplus and retirement of this acreage from cultivation, provided measures are included to keep production below total consumption while the payment-in-kind procedure is being used. Lacking such safeguards, a payment-in-kind procedure would overload the free market and thereby depress prices. My views as regards the price support program for wheat are clear. I prefer the following approach: Acreage allotments and marketing quotas for wheat should be eliminated beginning with the 1961 crop-thus freeing the wheat farmersand thereupon price-support levels should be set as a percentage of the average price of wheat during the three preceding calendar years. The Secretary of Agriculture will furnish the Congress the details of this approach. Here I wish to comment somewhat more specifically on corn, a crop tremendously important to many thousands of our farmers. Just over a year ago, by a referendum margin of almost 3 to I, our corn farmers decided upon a new program that liberalizes corn acreage and adjusts corn price supports. This program is still new, and I believe it would be wise to give it a chance to demonstrate what it can do. In order to help the producers adjust to this new program, it is intended to use the expanded Conservation Reserve Program to provide a voluntary means of removing substantial acreage of corn and other feed grains from production. On the administrative side, I want briefly to mention three programs highly important to agriculture. The Food for Peace Program, initiated pursuant to my recommendations of last year, has been vigorously advanced. On my recent trip I64 Dwight D. Eisenhower, 1960o 41 32 abroad, I saw many constructive results from these efforts and the need and opportunity for even greater use of this humanitarian program. Clearly we should continue to do our utmost to use our abundance constructively in the world-wide battle against hunger. The law we enacted in I954, known as Public Law 480 of the Eighty-Third Congress, has been especially helpful to us in waging this battle. Next, an aggressive Utilization Research Program is under way to develop new markets and new uses for farm products. The I 96 I Budget now before Congress recommends additional appropriations for utilization research, and additional local currencies being acquired under Public Law 480 transactions will be devoted to this purpose. A Coordinator for Utilization Research will shortly be named by the Secretary of Agriculture with the sole mission of concentrating on finding and promoting productive new uses for farm products. The Rural Development Program, to assist rural people in low income areas to achieve a better living, is also being accelerated. This program, initiated in my 1954 Message, is now well beyond the demonstration stage and is going steadily forward in 30 States and Puerto Rico. Other States are now starting this important work. I have also recommended more funds for this program in the pending Budget. Finally, I repeat my conviction that the public, and farmers particularly, are entitled to sound legislative action on the problems I have mentioned. The Congress can act within a broad latitude of proposals and still comply with the recommendations I have made. If the Congress wishes to propose a plan as an alternative to the course here recommended, so long as that plan is constructive, as I have indicated herein, I will approve it. The Department of Agriculture will cooperate fully with Congressional Committees and with individual Members of Congress in helping to prepare such alternative programs as they may wish to have considered. The important thing for farmers, and for all other Americans, is for us to act sensibly and to act swiftly. I urge the Congress so to act in order that the farmers and public generally may plan accordingly. DWIGHT D. EISENHOWER I65 Public Papers of the Presidents 33 ~1 Remarks After Inspecting the Missile Test Center, Cape Canaveral, Florida. February i0, i960 WELL, it was an interesting day, and I have been wanting to come here for a long time, so it's a trip that's another realization of an ambition. Obviously, it is the most highly instrumented place you can imagine, and certainly the personnel show every evidence of a high degree of competence. So from my viewpoint it was a very worthwhile trip, and I hope it has been for you fellows. Good luck to you. NOTE: The President spoke at the airstrip Washington. His remarks were adbefore boarding a plane to return to dressed primarily to the reporters who accompanied him. 34 tI The President's News Conference of February I I, I 960 THE PRESIDENT. I have a statement, but you won't have to take notes, because I believe there will be copies outside. This affects the negotiations for nuclear weapons tests at Geneva. [Reading] The United States is today presenting in Geneva a proposal, involving the ending of nuclear weapons tests, to end the apparent deadlock in the negotiations. This Government has stood, throughout, for complete abolition of weapons testing subject only to the attainment of agreed and adequate methods of inspection and control. The present proposal is designed to end nuclear weapons tests in all the environments that can now be effectively controlled. It would end forthwith, under assured controls: ( i) all nuclear weapons tests in the atmosphere; (2) all nuclear weapons tests in the oceans; (3) all nuclear weapons tests in those regions in space where effective controls can now be agreed to; and (4) all nuclear weapons tests beneath the surface of the earth which can be monitored. i66 Dwight D. Eisenhower, 1960 4f 34 This proposal will permit, through a coordinated program of research and development, a systematic extension of the ban to the remaining areas, especially those involving underground tests, for which adequate control measures appear not to be possible now. These are initial but far-reaching and yet readily attainable steps toward a complete ban on nuclear weapons tests. If adopted, they will prevent increases in the level of radioactivity in the atmosphere and so allay worldwide concern. They are steps which offer an opportunity to consolidate the important progress made in the negotiations thus far. It is our hope that the Soviet Union will join with us in this constructive beginning.' [Ends reading] Questions. Q. Merriman Smith, United Press International: Mr. President, every day the public is being subjected to a new chapter in the controversy over the missile gap between this country and Russia. Now, this argument, as you are well aware, is being waged in public by men who are supposed to be expert in the defense requirements of the country. Is there anything you can say to us today to explain this controversy to the public; and, in this connection, sir, are you thinking of a nationwide speech on this subject? THE PRESIDENT. First of all, let me understand the first part of your question, Mr. Smith. You say, "waged by people who are supposed to be expert." Are you speaking now about the people of the Defense Department? Q. Mr. Smith: Of the Defense Department and on Capitol Hill, too, sir. THE PRESIDENT. I should think this: it would be fair to use the description "expert" with respect to the people in the Defense Department. That is what they're for. [Laughter] They do have different ideas, and the trouble of it is that because one Chief or one Secretary or one individual or one technician, far down the line, has a particular idea and exploits this idea and publicizes it highly, 1 On the same day the White House released a further statement, covering the same ground but in somewhat greater detail. The statement noted that the new proposal included provision for a program of joint research and experimentation by the United Kingdom, the USSR, and the United States to improve the detection of small tests underground and thus permit the extension of the ban to such tests. It also noted that extensive research and experimentation was already under way in the United States to improve detection instruments and techniques. The White House statement is printed in the Department of State Bulletin (vol. 42, p. 327). i67 Public Papers of the Presidents that this, according to him, becomes the great judgment to be made in the defense of this country. Defense of this country is a very wide and comprehensive problem. It is not decided by such a matter as can you make three or two particular weapons in a particular week, or such numbers as that. It is a matter that involves the study and investigations of many staffs, reaching many months into the future. So these struggles that you talk about among the people in the Defense Department are those things that are brought about when they are required, apparently, and then leaks occur, as to their personal attitude toward the particular weapon or the particular weapons system, and then that becomes a matter of argument. This I deplore, particularly the methods of publicizing it and making it look like any one of these particular points is the real problem to solve in America's defense. I want to point out again-possibly I don't need to-that I have been in the military service a long time. I am obviously running for nothing. I want only my country to be strong, to be safe, and to have a feeling of confidence among its people so they can go about their business. And I just want to point out that in the decisions that I have to make-and there are many of them-in the approval of such a system, that I have heard all of the arguments, pro and con, in this individual type of an opinion of which I have been speaking. I have done the best I can, and I am doing it with one idea in mind only-America. Q. Pat Munroe, Chicago American: Could you fill us in, sir, on the Vice President's role in reshaping the farm message? THE PRESIDENT. Well, this is the first that I have heard about him reshaping it. I required that he read it, because there seems to be a great probability that in the next few months he is going to be defending what I believe, and the administration believes, is the best way to approach this problem. Naturally, he is completely aware of everything that is in the message, but this is the first I have heard of any reshaping. Q. William McGaffin, Chicago Daily News: Mr. President, you're nearing the end of your term, and you've had a good 7 years of experience with it. Could you tell us, sir, what you think will be the major problems of the man who succeeds you and whether you think they will be any more difficult than the problems that you've had to deal with? THE PRESIDENT. I think what you are suggesting now is we have sort i68 Dwight D. Eisenhower, ig96o of an informal conversation, rather than any exposition of specific problems. The fact is that I think there are two things we must remember. America has become a leader in the world. In many of these aspects it is almost a decisive leader. This means that the problems that come to the presidential desk-whether it's a small farm in Dickinson County, Kansas, or a village problem somewhere, or urban renewal, or difficulty in the Mideast or with the Russians, whatever-these things have to be viewed in a broad world context, and then they have to be studied very earnestly, both on their short-term and their long-term effects. I don't believe that anyone can predict what the next President's problems are really going to be. I have tried to describe, time and again, the ones that I see as important as of this moment and the methods in which I approach them. In so doing, I hope that I am helping to establish a pattern for solving these problems in the manner of reasonable men, never giving way to the so-called ultraliberal that has no other purpose than to give your money away for some pet theory of his own, and on the other hand, to repudiate reaction like you would the devil and all his works. You've just got to approach these things with the best advice, the best knowledge, the best judgment that the individual or the occupant of the chair can bring to bear, and then solve them. I will point out there is one problem that is always with us, will never be properly or at least perfectly solved, but which all of us must work at. It is this. You people right here have a very big function to perform. The biggest problem there is for the United States today is to make sure that her own people-her own people-understand the basic issues that face us, and form their own judgment. If we can inform these people properly, then we can be sure that the health and vigor of the democracy will solve them properly. Our great danger is that we are sometimes led down blind alleys by demagogues, or we're too lazy to inform ourselves, or we just say that some popular figure will solve them for us. We've got to inform ourselves. This is the greatest problem. And if we ever solve that one, we can do all the others without any difficulty. Q. Chalmers M. Roberts, Washington Post: Mr. President, in relation to your statement about the test ban problem, I think there is one question that you left unanswered, and that is this. Assuming that the Soviet Union would accept this proposal, during the period of the developI69 QI 34 Public Papers of the Presidents ment of new techniques to extend the ban on certain of the underground test problems, would the United States during that period resume underground testing? THE PRESIDENT. It's a question that, of course, itself has not yet been resolved. I have already told you that laboratory testing-not of weapons testing, but of just the nuclear science-go on all the time. But when it comes down to weapons testing, that is something that we would have to decide with our own allies. Q. Mr. Roberts: Would that be subject to negotiation as part of this proposed agreement with the Russians? THE PRESIDENT. Well, no. We are not going to make an agreement, Mr. Roberts, when we can't know, when we cannot have any information as to whether or not it will be carried out by the other fellow as well as ourselves. That's what the problem is about. You see, we have been asked, time and again, to stop all testing and, indeed, to eliminate all bombs just by everybody unilaterally and voluntarily doing so. This is the kind of a system we will not accept. We say there must be adequate examination, verification, and enforcement. Q. Charles W. Roberts, Newsweek: In connection with the first question asked you today, sir, when the congressional leaders came out of your office on Tuesday, they said that they thought the hearings on Capitol Hill concerning our defense-that some people, apparently running for office, had performed a disservice to the country and, furthermore, by undermining morale, that they had also breached security. Do you accept both of these charges? THE PRESIDENT. Well, I didn't read them. I have heard them for the first time right now. I am trying to keep my own statements outside the partisan field. I am trying to dedicate, as I have in the past, my efforts toward securing the United States in the fields of foreign relations and in defense. I think we should be big enough not to seek headlines. I think we should be big enough to put our heads together and see if we can get a real solution. While I admit I have not specifically answered your question, I am giving you my belief about the whole matter. Q. Felix Belair, New York Times: Mr. President, is there any ready answer to published suggestions that it is somehow defeatist to spend not quite so much money for defense or bigger defense and more and more I70 Dwight D. Eisenhower, 1960 ( 34 for fancy tail fins and other things like that? That has been written about lately. THE PRESIDENT. I don't quite understand your question. Q. Mr. Belair: Well, you see, the argument seems to suggest, sirand it came up yesterday at Canaveral-that much more could be spent, for instance, on missile development, to put us nearer to where the Russians now are. The argument seems to ignore what you have already said about our defense planning being based more on the adequacy of a deterrent. But the argument attributes to you, sir, the view that in all of these expenditures we must always have an eye on the budget, to maintain our fiscal responsibility, and that in emphasizing the need for a balanced budget, we thereby hold down expenditures for these purposes to a point that is not really necessary in our economy. THE PRESIDENT. In this present case it would seem to me their argument is not too good, because I have put in the budget $4,200 million for surplus. Now, if anyone, by any kind of hysterical argument, is going to make me say that fiscal responsibility in this country is not important; indeed, if they can prove that you can continue to go deeper and deeper and deeper into debt, without finally paying a very great cost in the Nation's security, I'd like to see how they prove their case. Now, that does not mean that any budget I've ever put up has been put together on the basis of just achieving a balanced budget. I have tried to calculate and form the judgments about the needs of the United States, and I must say that I try to put need above pressure-group inducement, before local argument, before every kind of any pressure except that that America needs. I don't believe in putting luxury and extravagance ahead of need. But having satisfied the need, I believe we should go ahead with such policies and programs that the United States believes will be helpful and are in keeping with our Constitution and our institutions, and at the same time get this fiscal business into such control that we can have prosperity in the future as well as thinking we have it merely when we begin to debase our currency. Q. Lambert Brose, Lutheran Layman: Mr. President, last fall, in connection with the TV quiz scandals, District Attorney Hogan stated that more than Ioo00 people had committed perjury before a New York State grand jury-I think it was New York State. I am sure the American people bear no personal malice toward these individuals, and maybe 17I Public Papers of the Presidents this is a State matter. But do you have any information, sir: one, whether indictments will be brought-I think only one or two have-and, two, if indictments are not brought, do you think this might undermine confidence somewhat in our system of equal justice under law? THE PRESIDENT. As you say, it obviously is a State matter. Now, I don't think it's necessary here for me to stress the importance I put on, you might say, public morality. I believe that public morality finally became involved in this matter, and I think that every echelon of government that may have a responsibility ought to be working on the matter and see that it doesn't happen again. Q. John Scali, Associated Press: Mr. President, Premier Khrushchev had some very blunt things to say to Italy's President, Mr. Gronchi, this week about world affairs generally. He talked about West Berlin, Germany, and Russia's power, generally. And among the things Mr. Khrushchev is quoted as saying is this: "Our flag is flying on the moon. This means something. Is this not enough to prove the superiority of communism over capitalism?" What do you think of such remarks? THE PRESIDENT. I think it's crazy. I tried to point out to you the other day that in an industrial complex of the strength of Russia's, with its vast territory and resources, its people, and its great imaginative and competent scientists, that if it wants to put all of its strength in a particular field of activity-and, remember, secretly undertaken-of course it can come out with spectacular achievements. And let's not try to blind ourselves about it. But my contention is we should not be hysterical when dictatorships do these things. As a matter of fact, Hitler was rather successful in keeping secret from many people the strength of the forces he actually had when he went in I 939 into Poland, and how much he had with which to smash the Western allies in Western Europe. All of these things are possible, but they are not things that we should, in what we believe is a broader and better type of civilization, let dismay us. Q. Sarah McClendon, El Paso Times: Sir, in view of your own expressed philosophy that defense should not be a partisan issue, do you not think it was wrong for six top officials of the Defense Department to accept invitations to speak at fundraising "Dinners with Ike," planned by the Republican Party? THE PRESIDENT. No, I don't think so. As a matter of fact, are you I 72 Dwight D. Eisenhower, i960 going to change all the traditions and the habits of America since we formed two parties way back at the time of Jefferson and Hamilton? Q. Mrs. McClendon: Well, sirTHE PRESIDENT. Now, just a minute, and I'll finish your question. These people are politically appointed. They are not, and should not, indulge in talking about the failures of others of which I personally, and on both sides of the House, believe there have been many in years going past. Certainly they did in the Indian wars, if we want to get back to a place that is certainly nonpartisan. [Laughter] For these people to report what they're doing and why they're doing it and to show the reasoning in which they have reached their decisions is far from harmful; it is helpful, in my opinion. Q. John R. Gibson, Wall Street Journal: Mr. President, on the disarmament question, is it your feeling that the U.S., Britain, and Russia pretty well have to reach an agreement on the nuclear test situation before there is much chance for making any further headway on the broader disarmament question, either at the io-nations meeting or at the summit conference meeting? THE PRESIDENT. I am not now trying to express the opinions of any study group or any opinions other than my own. I believe that we are probably tackling the most difficult of all problems in this disarmament thing when we put all our attention on nuclear testing and nuclear use. Here is something, our scientists have testified over the years, that even if today you stop manufacturing plutonium and U-235, you could still conceal such an amount of destructive power that, to start at this end of the thing to establish the kind of inspection systems that are necessary, we are probably taking the most thorny thing and allowing that to keep us from other places. Now, in testing I think the program that we put forward today is a good one and ought to lead finally to even a better one. But I think that we should look at disarmament on such a broad scale that we can find the areas where we can make progress, but not letting this one bar us from some progress along the line. Only as we make progress of this kind is there going to be a real lessening of tension. Q. Marvin L. Arrowsmith, Associated Press: Mr. President, do you have any new appraisal of our missile program on the basis of your visit to Canaveral yesterday? THE PRESIDENT. On that one I think, possibly except for some secret I73 Public Papers of the Presidents specification or something else, I think you people learned just exactly as much as I did. I would say this, as I said that day: I was impressed by the businesslike atmosphere in this whole facility. There seemed to be a minimum of extravagance and luxury and a maximum of efficiency and competence and real dedication to the problem at hand. I felt this: I came back with a very much better feeling than I had before I went down there. Q. Spencer Davis, Associated Press: The Chinese Communists, sir, have said that they would not take part in any disarmament agreement in which they had no hand in formulating. At what point, sir, do you think they should come into a worldwide disarmament agreement? THE PRESIDENT. Well, it's perfectly clear that such a big territory and such a great population could not be ignored when you are talking about general disarmament. Once we can make any kind of progress between the West and the Soviets and its satellites, I think that there will have to be some kind of mechanism in which we can bring these people into some kind of agreement, if it is going to be successful. Q. M. Stewart Hensley, United Press International: Mr. President, with respect to the nuclear test ban, you say that you are proposing to ban the underground tests which can be verified. Is Ambassador Wadsworth going to, at the Geneva talks, put any specific level on that thing? In other words, there's been disagreement between the Russians and our scientists on this, whether it's below 20 kilotons, 3o kilotons, and so, forth. Are you going to propose any specific threshold there, or is that a subject for negotiation? THE PRESIDENT. I think it is a subject for negotiation, but it will, of course, have to go back finally to our technical people-what their conclusions are. Q. Jack Raymond, New York Times: Mr. President, there have been various figures published on Soviet-United States missile strength. Do you believe that these have damaged the security of the country? THE PRESIDENT. That what? Q. Mr. Raymond: Do you believe these figures that have been published have damaged the security of the country, and do you expect to do anything about that? THE PRESIDENT. I don't think the figures mean a lot. Q. Edward V. Koterba, United Features Syndicate: Mr. President, somewhat in line with your reply to Mr. McGaffin, there have been some I 74 Dwight D. Eisenhower, I960 (I 34 published suggestions that you become an honorary Senator after your term as President. What are your thoughts about accepting an official job as advice-giver after i960? THE PRESIDENT. Well, I would think that that's one of those questions that the answer would have to await the offer. Q. Earl H. Voss, Washington Star: Mr. President, if the Russians accept your new proposal on nuclear tests, could you give us your evaluation of the effect this would have on nuclear weapons development? 1 have in mind particularly our theories which I understand have been proved that, according to the "big hole" theory, large nuclear explosions can be concealed. THE PRESIDENT. Well, the very large ones, I don't think could be concealed, not practically, and certainly not periodically. I would think this: the proposal, with all its ramifications, is going to be studied and discussed. I think we should better wait to see what are the objections and the supporting arguments that are brought forward at Geneva before we try to make conclusions of exactly what the effect will be. There could be all kinds of proposals, but all of them, as I see it, would bring some kind of inspection that so far has not been agreed to by the Soviets. Q. Jerry O'Leary, Washington Star: Mr. President, the Senators passed a $i,8oo million education bill with teachers' salaries as well as buildings. Would you like to see the House scale that down some? THE PRESIDENT. To go further than that, I would say this: I do not believe the Federal Government ought to be in the business of paying a local official. If we're going into that, we'll have to find out every councilman and every teacher and every other person that's a public official of any kind, or public servant, and try to figure out what his right salary is. I can't imagine anything worse for the Federal Government to be into. Q. Edward P. Morgan, American Broadcasting Company: Mr. President, speaking of public morality and basic issues as we have been today, at the congressional "payola" hearings yesterday a disc jockey likened the giving of gifts and money by record companies to these record spinners, as they're called, to the exercise of competing for a teacher's favors with an apple. And he went on to say-I'm quoting his testimony from the New York Times: "This seems to be the American way of life, which is a wonderful way of life. It's primarily built on romance-I'll do for you, what will you do for me?" '75 Public Papers of the Presidents On the eve of Lincoln's birthday, do you have any comments on those things? [Laughter] THE PRESIDENT. I don't think that the shades of Lincoln would have possibly any great approval for what I might think and say. But I'll tell you this, that when we get to the place where the right of people to use the airwaves, under license of Government, and then they can use this just for personal gain over and above the purposes for which they're hired, then I think there is public morality involved. And I think this fellow, whoever he was, talking that way just hadn't thought through the implications of the, let's say, the alibi that he was setting forth. Marvin L. Arrowsmith, Associated Press: Thank you, Mr. President. NOTE: President Eisenhower's one hun- 10:30 to I i:oI o'clock on Thursday dred and eightieth news conference was morning, February II, I960. In attendheld in the Executive Office Building from ance: 235. 35 eT Remarks Recorded in Observance of the 5oth Anniversary of the Boy Scouts of America. February i2, i960 My fellow citizens: I have long been interested and active in the Boy Scouts of America, both as a member of its National Executive Board, and more recently as its Honorary President. In that capacity, I have the special privilege of calling upon our Nation to join in honoring the both anniversary of this great youth movement. For half a century the men who have led this virile movement have been making a great and wise investment in time and energy voluntarily given. The dividend they have reaped has been a rich one. Today the Scouting movement counts a membership of 5 million boys and menand women, too. Over 30 million boys have been members since its founding here in Washington just 50 years ago. In thousands of churches, schools, meeting halls of all kinds, Scouts and their leaders are rededicating themselves to the Scout Oath. These 32 words might well serve as an appropriate guide for good citizenship at any age level"On my honor I will do my best to do my duty to God and my country and to obey the Scout law; to help other people at all times; to 176 Dwight D. Eisenhower, I960 I 36 keep myself physically strong, mentally awake and morally straight." The active and abiding interest of the adult citizens of this Nation is important to the furtherance of this great movement. I ask that you join with the Boy Scouts as they celebrate this anniversary by giving them that active support-by your helping your son-or another's-to become a Scout; by volunteering as an adult leader; by making available the resources needed. Thank you very much. 36 61 Special Message to the Congress on the Mutual Security Program. February 16, 1960 To the Congress of the United States: A year ago in my message to the Congress on the Mutual Security Program, I described it as both essential to our security and important to our prosperity. Pointing out that our expenditures for Mutual Security are fully as important to our National Defense as expenditures for our own forces, I stated that the Mutual Security Program is not only grounded in our deepest self-interest but springs from the idealism of the American people which is the true foundation of our greatness. It rests upon five fundamental propositions: (I) That peace is a matter of vital concern to all mankind; (2) That to keep the peace, the free world must remain defensively strong; (3) That the achievement of a peace which is just depends upon promoting a rate of world economic progress, particularly among the peoples of the less developed nations, which will inspire hope for fulfillment of their aspirations; (4) That the maintenance of the defensive strength of the free world, and help to the less developed, but determined and hard working, nations to achieve a reasonable rate of economic growth are a common responsibility of the free world community; (5) That the United States cannot shirk its responsibility to cooperate with all other free nations in this regard. It is my firm conviction that there are only a few in the United States who would deny the validity of these propositions. The overwhelming 177 (I 36 Public Papers of the Presidents support of the vast majority of our citizens leads us inexorably to mutual security as a fixed national policy. The Mutual Security Program is a program essential to peace. The accomplishments of the Mutual Security Program in helping to meet the many challenges in the mid-2oth Century place it among the foremost of the great programs of American history. Without them the map of the world would be vastly different today. The Mutual Security Program and its predecessors have been an indispensable contributor to the present fact that Greece, Turkey, Iran, Laos, Vietnam, Korea and Taiwan, and many nations of Western Europe, to mention only part, remain the home of free men. While over the past year the Soviet Union has expressed an interest in measures to reduce the common peril of war, and while its recent deportment and pronouncement suggest the possible opening of a somewhat less strained period in our relationships, the menace of Communist imperialism nevertheless still remains. The military power of the Soviet Union continues to grow. Increasingly important to free world interests is the rate of growth of both military and economic power in Communist China. Evidence that this enormous power bloc remains dedicated to the extension of Communist control over all peoples everywhere is found in Tibet, the Taiwan Straits, in Laos and along the Indian border. In the face of this ever-present Communist threat, we must, in our own interest as well as that of the other members of the free world community, continue our program of military assistance through the various mutual security arrangements we have established. Under these arrangements each nation has responsibilities, commensurate with its capabilities, to participate in the development and maintenance of defensive strength. There is also increasing ability of other free world nations to share the burden of this common defense. Obviously, no one nation alone could bear the cost of defending all the free world. Likewise, it would be impossible for many free nations long to survive if forced to act separately and alone. The crumbling of the weaker ones would obviously and increasingly multiply the threats to those remaining free, even the very strongest. Collective security is not only sensible-it is essential. That just peace which has always been and which remains our primary and common goal can never be obtained through weakness. The best I 78 Dwight D. Eisenhower, 1960 ( 36 assurance against attack is still the possession and maintenance of free world strength to deter attack. The nations of Europe are increasingly assuming their share of the common defense task. None of our NATO partners other than Greece, Turkey, and Iceland now requires nor receives any economic assistance. Indeed, in rising volume, these nations are now providing economic assistance to others. Our NATO allies are also meeting their military needs to an increasing degree; several major countries now require no help. Our military programs in NATO countries today are largely designed and executed as joint cost sharing arrangements whereby vital additional defense needs are met through mutual effort. It is clear that while every possibility to achieve trustworthy agreements which would reduce the peril of war must be explored, it would be most foolish to abandon or to weaken our posture of common deterrent strength which is so essential a prerequisite to the exploration of such possibilities. The need is for steadfast, undramatic, and patient persistence in our efforts to maintain our mutual defenses while working to find solutions for the problems which divide the World and threaten the peace. The Mutual Security Program is a program essential to world progress in freedom. In addition to its mutual defense aspects, it also is the American part of a cooperative effort on the part of free men to raise the standards of living of millions of human beings from bases which are intolerably low, bases incompatible with human dignity and freedom. Hundreds of millions of people throughout the world have learned that it is not ordained that they must live in perpetual poverty and illness, on the ragged edge of starvation. Their political leaders press the point home. In a variety of ways this drive is moving forward by fits and starts, often uncertain of its direction. It is sometimes involved in free world struggle against Communism, sometimes not. It is clearly in the interests of the United States that we assist this movement so that these countries may take their places as free, independent, progressing and stable members of the community of nations. It is equally clear that it would be against our interests if this forward movement were stifled or hindered. The result would be to breed frustration and explosive threats to political and economic stability in areas around the world. Equally with military security, economic development is a common necessity and a common responsibility. An investment in the develop 60295-61 15 I79 Public Papers of the Presidents ment of one part of the free world is an investment in the development of it all. Our welfare, and the welfare of all free men, cannot be divided-we are dependent one on the other. It is for each of us, the strong and the weak, the developed and the less developed, to join in the great effort to bring forth for all men the opportunity for a rewarding existence in freedom and in peace. World economic expansion and increase in trade will bring about increased prosperity for each free world nation. New challenges, with corresponding opportunities, are now visible before us: the acceleration of the achievement of independence of peoples in Africa; the growing restlessness in the less developed areas; and the increasing potential for partnership and assistance to these areas as a result of the continued growth of the now healthy economies of the industrialized Western European nations and of Japan, Canada and Australia. Free World cooperation is becoming the watchword of this effort. In the past year the capital of the International Bank for Reconstruction and Development was doubled and that of the International Monetary Fund was increased by half. In addition, a United States proposal for an International Development Association to be affiliated with the International Bank for Reconstruction and Development has been accepted in principle and a draft charter recently has been submitted to member governments. I expect to transmit to the Congress recommendations on this matter in the near future. The industrialized nations of Europe, together with Japan and Canada, are notably stepping up their participation in cooperative efforts among themselves and with the less developed countries to promote growth. Similar approaches will be discussed at a meeting of representatives of a number of nations, to be held in Washington in March. In our own Western Hemisphere society of nations, we are now joined in a great new venture, the Inter-American Development Bank. This new institution, formed in partnership with our neighboring nations, should prove of immense value in promoting the more rapid development of the member nations. Our participation in this joint effort is significant of the special interest which we have in the progressive development of our neighbors. Together with the very considerable dimensions of private and government investment taking place in the hemisphere, and the mutually beneficial technical cooperation we have so long enjoyed with our neighbors, it should serve to accelerate progress. Thus the military and economic resources which we provide through i8o Dwight D. Eisenhower, 1960 the Mutual Security Program to help create and maintain positions of strength are properly to be regarded as what they are-investments in the common defense and welfare and thus in our own security and welfare. This is a Mutual Security Program. Our concepts are sound, our policies of proven value, and our will to meet our responsibilities undiminished and constant. THE PROPOSALS FOR FISCAL YEAR 1961 The form and general structure of the Mutual Security Program for fiscal year 1961 remains essentially that which has stood the test of experience. In the administration of the various mutual security programs, changes have been instituted in organization, programming, and management controls. It was in part for the purpose of analyzing and making recommendations for improving the administration of the program that I appointed last year a distinguished group of citizens headed by General Draper. Many of the recommendations that they made have already been put into effect. We are constantly seeking additional management improvements to meet the program needs and difficult problems of operating these diverse programs on a world-wide basis. The categories of activity are the same as those with which the Congress is familiar. Adjustments in the nature and dimension of activity are proposed which reflect and are responsible to the changes in the world scene, in the degrees of need and of capability for self-help. These adjustments also are consistent with an analysis of future needs and of future changes and capability for self-help. This forward analysis was, in part, conducted in conformance with the requirement of law that plans of future grant economic assistance be developed and presented to the Congress. The detailed plans and conclusions on future assistance will be submitted to the Congress in the near future. MILITARY ASSISTANCE For Military Assistance I am requesting in the pending Department of Defense budget an appropriation of $2 billion. This is more than was requested, or than was provided for fiscal year I960. The request for a larger appropriation is not made in order to increase the proportionate share of United States participation in the common defense. Nor does it reflect an intent to embark on a vast expansion of the military assistance program. 181 (J 36 Public Papers of the Presidents The amount requested for military assistance within the Defense budget is in my considered judgment, and in that of the Joint Chiefs of Staff, a need for our defense equally compelling and of equal importance with the needs of our own services provided for elsewhere in the Defense budget. The amount requested is the result of careful and detailed review of the needs of our allies to enable them to maintain the level of combat effectiveness made possible by previous military assistance and to provide, mostly on a cost sharing basis, for certain essential force improvement projects. Without adequate provision for maintenance, the monies previously spent would be largely wasted. And without force improvement, without the provision of more advanced weapons, the free world forces would inevitably fall behind in their ability to counter modernized aggressor forces. The fact, if it is a fact, of reductions in Soviet military manpower, does not alter the need for the maintenance of our collective defense. Soviet military power, as Mr. Khrushchev's own statements make clear, remains great. Our plans have never attempted to match Soviet armed manpower; they have been and are designed to deter aggression. Of special importance is the maintenance of a strong and effective deterrent posture in the NATO alliance. As indicated earlier, the improving economic position of Western Europe as a whole makes it possible for Europe to share increasingly in the cost of the common defense, and for certain major European countries to maintain their defense efforts without United States assistance. At the same time, the requirements for modernization and improvement are of such dimension that our participation in joint cost sharing projects with certain European countries over the immediate future is still essential. Provision for such contributions is included in the proposed program. The amount requested for fiscal i 96 I is consistent with the recommendations of the bipartisan committee of distinguished citizens headed by General Draper, which I appointed last year to review our policies and programs. This committee strongly urged the maintenance of a delivery program of approximately $2 billion annually. In recent years, annual deliveries have averaged about $2.2 billion. Deliveries in FY I 960, however, reflecting the reduced appropriations of recent years, will fall back to $i.8 billion or less. Unexpended balances carried over from previous years have now been reduced to a minimum and deliveries in future years will closely approximate the annual appropriation level. I82 Dwight D. Eisenhower, I960 q 36 In my considered judgment, an appropriation of $2 billion for FY 1961 is the minimum amount consistent with the maintenance of a firm and adequate collective defense posture. Anything less in effect precludes essential modernization and improvement of forces and limits us to a bare maintenance program. ECONOMIC ASSISTANCE DEFENSE SUPPORT For twelve of the nations with whom we are joined in collective or mutual security arrangements, we have for some years been contributing not only military resources required in the common defense but economic resources in the measure needed to permit the maintenance of such defenses without incurring political or economic instability. This category of resource contribution we term Defense Support-economic resources to assure a defense posture. These 12 countries maintain forces of over 3,000,000 men, more than the total number in the United States Armed Forces, and each of these underdeveloped countries, except for Spain, is part of the exposed land and off-shore island belt that forms the immediate southern and eastern boundary of the Sino-Soviet empire. Requirements in this Defense Support category have decreased somewhat; for fiscal year I96 I am requesting for these programs $724 million or $I I I million less than I asked for last year. This reduced requirement reflects in some measure a gradual but perceptible improvement in the economic situations in these countries. More than half, 56 per cent, is for the three Far Eastern countries of Korea, Taiwan and Vietnam which have the common characteristics that they are divided countries facing superior Communist forces on their borders, forces which the Communists previously have demonstrated their willingness to use, thereby compelling these frontier nations to support armed forces far in excess of their unaided capacities to maintain. The amounts requested for these purposes represent the least we can contribute and retain confidence that adequate defenses will be maintained. SPECIAL ASSISTANCE Another category of international cooperation in the Mutual Security Program is the provision of economic resources to other nations where such resources are essential to the maintenance of their freedom and stability. This category of cooperation we term Special Assistance. I I83 (I 36 Public Papers of the Presidents am requesting $268 million for these purposes in fiscal year I96I. Such provisions will enable us, for example, to continue aid to the young nations of Morocco, Libya and Tunisia, to strengthen the stability of Jordan and the Middle East, to combat the encroachment of Communist influence in Afghanistan, and to undergird the economies in Bolivia and Haiti. Special Assistance will also enable our continued participation in such vital programs as the world-wide anti-malaria campaign. AID TO DEVELOPMENT The achievement of economic progress, of growth, depends on many things. Through collective security arrangements, through defensive measures, by giving military aid and defense support, we and other nations can achieve a measure of security and stability within which the process of development is possible and can be fostered. The primary and essential prerequisite internally is the determination to progress and take the actions needed and to make the sacrifices required. No matter how great the determination, however, there will remain tremendous needs for both technical improvement and capacity and for development capital. If a pace of development is to be achieved which will meet the essential demands of these peoples, outside help is a necessity. TECHNICAL COOPERATION Through our long established program of Technical Cooperation and by our contributions to the United Nations activities in the technical assistance field, we make a major contribution toward the satisfaction of this thirst and need for growth in knowledge and technical capacity. The Mutual Security Program proposed for Fiscal Year i96i continues these vital activities and provides for the enlargement and extension of our technical assistance programs in the newly emerging nations of Africa. For bilateral technical assistance I request $I72.5 million; for our participation in United Nations technical assistance programs I ask $33.5 million; and to supplement our much larger bilateral program with our neighbors to the south, I ask $I.5 million for the program of technical assistance which we conduct in cooperation with them through the Organization of American States. AFRICA Of inescapable interest to the United States in the world today is the increasing assumption of self-government by the peoples of the great ConI84 Dwight D. Eisenhower, i960 tinent of Africa, especially in the area South of the Sahara. This vast area deserves and commands the full attention and assistance of the free world if it is to develop its institutions and its economy under freedom. While the needs of Africa South of the Sahara for development capital are real and can be expected to grow, there is an imperative and immediate requirement for increased education and training. The request for appropriations for Special Assistance includes an amount of $20 million for a special program to be instituted for the improvement of education and training in Africa South of the Sahara, with particular emphasis to be given to the meeting of needs which are common to all the countries of the area. It is my belief that this initial effort must grow significantly in the immediate years ahead and complement similar efforts on the part of other Free World nations so that the capacity of the new and other developing nations in Africa to manage and direct their development can be strengthened and increased rapidly and effectively. Without such strengthening and development of education and training, the pre-conditions of vigorous economic growth cannot be established. DEVELOPMENT LOAN FUND In the field of development assistance, the Development Loan Fund is proving to be an increasingly effective instrument for response to those needs which cannot be satisfied from private investment, the World Bank or other like sources. It has assisted in the installation of basic facilities, such as power and transportation, necessary for growth in the less developed areas. Particularly important are the expanded activities of the Development Loan Fund in the field of private enterprise. The Development Loan Fund is opening new opportunities to build an effective partnership with American private enterprise wherein the private resources of the country can make an increased contribution to development in the less developed nations. The history of the Development Loan Fund activity over the past two years indicates that the flow of such loan capital has tended to respond to the degree of need and of capability. In other words, those areas where the determination and the will to progress are greatest and the capacity to use such resource effectively is the greatest, have been the leading recipients of loan assistance from the Development Loan Fund. I request $700 million for the Development Loan Fund for use beginning in fiscal year I96I. I85 (I 36 Public Papers of the Presidents SOUTH ASIA Over the past two years a major share of Development Loan Fund loans have been made to the two great nations of South Asia, India and Pakistan, where half a billion people are deeply committed and irrevocably determined to develop and maintain institutions of their own free choice, and to raise their standards of living to levels of decency. The force and drive of this great effort is unmistakable; it warrants the full and warm support of the free world. We have joined with other nations in helping these countries; we envisage the total public and private effort to assist South Asia not only continuing but expanding. An increased amount is expected to be devoted to this great cause from the resources requested for the Development Loan Fund for Fiscal Year I 96I as these countries increase even further their own self-help efforts. THE INDUS BASIN DEVELOPMENT A development of major significance in South Asia is the substantial progress being made under the auspices of the World Bank to effect a solution to the complex and difficult problem of the use of the waters of the Indus River Basin as between India and Pakistan. Vital interests of both countries are involved; the solution must involve a plan whereby the waters, on which the agriculture, the food supplies, and the economies of the region depend, can be equitably developed and shared. It is anticipated that an agreement on such a development plan may be reached in the near future. Essential to its fruition is the willingness of nations outside South Asia to assist in the development plan, the cost of which cannot be borne by these nations unaided. Under World Bank auspices, plans are being developed whereunder the Bank, British Commonwealth nations, West Germany, and the United States will each contribute to the costs of the development plan and the supervision and management of the enterprise will be undertaken by the Bank. We propose to provide a measure of assistance to this activity through the Mutual Security Program in fiscal year I 96 I and in subsequent years as needs arise. To assure that we can effectively participate in this multilateral undertaking, I am asking for authorization to exercise flexibility in the application of regulations normally applied to bilateral undertakings, if and when such exceptional action is required for this great project. The solution of this troublesome international issue should be of great assistance in promoting a peaceful and cooperative resolution of other divisive issues and eni86 Dwight D. Eisenhower, 1960 q 36 courage a maximum concentration on the major goals of peace and prosperity. REPUBLIC OF CHINA The Mutual Security Program can be expected also to be responsive to the needs of other areas and countries as their determination and capacity to employ development capital grows. We have received proposals from the Government of the Republic of China for an expanded and accelerated program of economic reform and development to which we are giving close and careful attention. The vigorous and skilled population on Taiwan, the record of growth in investment and output, the very real potential for acceleration, offer a prospect for a convincing demonstration that under free institutions a pace and degree of achievement can eventually be obtained in excess of that resulting under totalitarianism. For this purpose, we envisage the full employment of both grant and loan assistance to hasten the day of ultimate viability and selfsustaining growth. CONTINGENCY FUND AND OTHER PROGRAMS In addition to the major categories of cooperation which I have mentioned, Military Assistance and Defense Support, Special Assistance, Technical Cooperation and the Development Loan Fund, I am asking also for a Contingency Fund of $I 75 million and for $ IO I million to continue a variety of small but important programs. The Contingency Fund is an essential safeguard against the unforeseen or not wholly predictable need. The record of the past several years clearly demonstrates its value as enabling prompt and effective response to the altering course of international events. The $IoI million requested for other programs will permit our continued participation in UNICEF, in refugee programs and in the foreign programs for peaceful uses of atomic energy. It also will provide for administrative costs to administer the economic and technical programs. For the total Mutual Security Program I ask $4. 175 billion. The need for these amounts has been examined and re-examined with great care in the Executive Branch. I am entirely satisfied that the needs for which funds are sought are needs which must be met and that the funds sought are the most reasonable estimates of requirements we can produce. There is no question but that the nation can afford the expenditures involved; I am certain we cannot afford to ignore the needs for which they are required. 602,95-61 16 i87 Public Papers of the Presidents CONCLUSION The United States is a privileged nation. Its citizens enjoy a measure of prosperity and well-being and an extent of liberty under free institutions unequalled in the history of the world. Our ideals and our ideology place upon us a responsibility for leadership and for cooperation with other nations and other peoples which we accept willingly and with pride. My recent travels impressed upon me even more strongly the fact that free men everywhere look to us, not with envy or malice but with hope and confidence that we will in the future as in the past be in the vanguard of those who believe in and will defend the right of the individual to enjoy the fruits of his labor in peace and in freedom. Together with our fellow men, we shall not fail to meet our responsibilities. DWIGHT D. EISENHOWER 37 eT Memorandum on the 1960 Red Cross Campaign. February I7, I960 [ Released February 17, i960. Dated February I6, I960 ] Memorandum for the Heads of Executive Departments and Agencies: During the month of March, the American National Red Cross conducts its annual campaign for members and funds. This is one of the three campaigns authorized within the Executive Departments and Agencies. However, those local Red Cross chapters that obtained financial requirements through partnership in Federated Fund Campaigns will not make their appeals at this time. By Congressional Charter, the Red Cross is required to provide welfare services to members of the Armed Forces and their families at home and overseas. It maintains a program of Disaster Preparedness and Relief. It offers other vital services in the fields of First Aid and Water Safety, Home Nursing, and various youth training programs. The American people have long provided the volunteers and the funds that make this great work possible. I urge employees of the Federal Government and members of the military establishments to continue their fine record in support of the Red Cross. DWIGHT D. EISENHOWER I88 Dwight D. Eisenhower, i960 q 38 38 eT The President's News Conference of February 17, i960 THE PRESIDENT. Good morning. I am ready for questions. Q. Marvin L. Arrowsmith, Associated Press: Mr. President, just before your trip in December, you went on nationwide television and radio to discuss that tour. Do you plan to do the same thing in connection with your South American tour and, if so, is there any possibility of your talk dealing as well with national defense? THE PRESIDENT. I'm expecting to make a television talk of I5 minutes at 6:15 on Sunday evening. I'm leaving early Monday. The talk will be in the general tone of the one that I made before I went to Asia, and I would suppose that such items as security and strength and so on would, of course, be included. Q. Robert G. Spivack, New York Post: Mr. President, in recent weeks, spokesmen for the Navy seem to have admitted that it discriminates against American ships in trade with Israel. In the view of-judgment of-critics it does this by discouraging the owners of such ships from bidding on transportation that involves the use of Arab ports, because the Arabs refuse to accommodate the vessel. The effect, these critics say, is to comply with the Arab boycott of Israel. Would you say that this was in line with our foreign policy? THE PRESIDENT. Certainly not within our policy. Right after the Suez incident, you recall that the United States joined in saying that if the operation of the canal was not so conducted as to be fair to the traffic of all nations, that this should be a cause of action by the united group. I believe this matter has been up in the United Nations; I know it haswell, I believe it has, put it that way. Certainly the United States has always stood for that principle. I didn't know about the incidents to which you refer, and I would suggest you ask the Navy Department itself about that. Q. Warren W. Unna, Washington Post: In this morning's paper, sir, there is an account of an Air Force Reserve Training Manual which is casting reflection on the integrity of the church and possible Communist infiltration of it, as well as the people's right to know what is going on in their Government. I wondered if you'd seen this, and if you have any comment on it, sir? 189 (e 38 Public Papers of the Presidents THE PRESIDENT. It was brought to my attention this morning. I understand the Secretary of Air found out about it very recently, that he has recalled the thing and repudiates it as a statement of Air Force policy. Q. Charles W. Roberts, Newsweek: Sir, in view of the increasing importance of the Vice Presidency and the ever-present possibility that he might succeed to the Presidency, do you feel that the vice presidential nominee of your party should be handpicked by the presidential nominee as he has been traditionally in the past, or that there should be an open convention, or that perhaps the vice presidential contenders compete in State primaries? THE PRESIDENT. Well, I wouldn't know any reason for them abstaining from competition in primaries. One thing we must remember: if we are going to have this closer relationship between President and Vice President, which during these last 7 years has been rather violative of tradition, then these two have to be people that are friends. They have to be people that have a certain mutual respect. That comes about because of the fact that the presidential nominee has some say in who the vice presidential nominee is. In my own case I don't mind telling you, in 1952 I put down a list of men who would be completely acceptable to me. It was not a long one, but it was certainly comprehensive, and I gave-turned over-to the Convention, or the people in charge of it-I said you can take anybody here and the Convention can have its nominations and so make and give their decision. There are a lot of factors of that kind in the thing, but I do believe that only in few instances, probably, has there been any case where the nominee, the presidential nominee, has complete authority in this matter. Q. Felix Belair, New York Times: Can you say, sir, whether in your opinion the United States should pay more for Cuban sugar than the price made available by that government to Russia? THE PRESIDENT. Well, you're getting into a question we've been studying a long time around this Government. The treaty with Cuba is one of long standing, concerning their preferred position in our sugar market. We must not forget that we want to be dealing in such a way that the Cuban people, who are our friends, are treated justly and there is no action taken that in the long run would be detrimental to them. As I understand it from this latest report coming out of Mikoyan's visit, the Cubans are proposing to sell sugar at the world price and, as I90 Dwight D. Eisenhower, I960 1J 38 far as I can see, on more of a barter basis. We pay more than the world price, and we pay in completely convertible currency, so that they have complete freedom. Now, there have been a number of traditional economic relationships that have been either repudiated or disturbed or changed by the Cubans in the last few months. I would hope that this whole thing can be worked out so that the Cuban people will not suffer, and that the relationships between those people and our people will remain firm. Q. Laurence H. Burd, Chicago Tribune: Mr. President, in your farm message last week, you suggested to Congress that you would now be willing to accept some things such as stricter controls that you seemed to oppose before. Was that change prompted by, as some people suggested, by the hope that it might help the Republicans win more votes in the Farm Belt this year? THE PRESIDENT. Well, it wasn't done in that particular thing, but I would hope that it would appeal to a lot of people and, therefore, get more votes; of course I do. The point is, last year I suggested two different methods; before that, I have sent down time and again a rather detailed bill, list of recommendations, that I thought would help the situation. It has gone so long and in such a bad way that no cure can be brought about rapidly, nor in a revolutionary fashion. Everybody knows that. So I put down what I preferred, but I said within certain guidelines I would accept anything that didn't violate just good sense and trying to get the matter better on the rails. About controls, I said they must be realistically related to support prices. And that has a very deep meaning in that phrase. Q. Charles H. Mohr, Time Magazine: Mr. President, Chancellor Adenauer has expressed anxiety that any new interim agreement on West Berlin might erode the Western position there, and be worse than the situation that now prevails. He also seems obviously worried about allied intentions. What are those — THE PRESIDENT. Allied what? Q. Mr. Mohr: Intentions. THE PRESIDENT. All right. Q. Mr. Mohr: And May I6 is some time off, but can you talk any about what these intentions are? And especially in view of the fact you once called that situation abnormal. I9I Public Papers of the Presidents THE PRESIDENT. Of course the situation is abnormal. But this is what would be my answer to your question: the three Western Powers of Britain, France, and the United States, in a variety of ways keep in very close touch and collaboration with the Government of the Federal Republic. We certainly expect, to go to the summit, that any views to be expressed there will represent the common convictions of the four of us. Now, that is all I can say in detail in that matter. Q. Lambert Brose, Lutheran Layman: Mr. President, you referred before to Mr. Mikoyan's visit to Cuba. And a month or two ago, J. Edgar Hoover, talking about another famous Russian's visit to our country, said that Mr. Khrushchev's visit had some effect in making Americans more receptive to communism. Since it's the FBI's job to detect subversive activities in this country, is Mr. Hoover perhaps understandably but unduly sensitive and apprehensive in this matter, or do you think his contention might have some merit? THE PRESIDENT. I haven't talked to Mr. Hoover about the effect of Mr. Khrushchev's visit. I have stayed in very close touch with him over the years. He is a man for whom I have the greatest respect, not only for his views but for him as a character, as a public servant. Now, this is what I do know about his views: once I proposed that we study a matter of just inviting a very great number of Russians, particularly students, into our country. He looked it over and said it would not increase the difficulties in his department whatsoever. What he thinks about this one, I don't know; I've never talked to him about it. Q. Robert C. Pierpoint, CBS News: Mr. President, in view of Vice President Nixon's troubles in his visit to Latin America, I wonder if the Secret Service or any of our other organizations of that nature are particularly concerned about your personal safety during your trip to Latin America and, if so, could you tell us what special measures they may have taken? THE PRESIDENT. On the contrary; they have said no word to me about it. And, remember, the Secret Service limit their efforts to giving information and help to the local people. Our Secret Service have no authority in these sovereign countries, and certainly they couldn't widen or, by their own volition, establish a more firm security establishment. This is what I feel about it: in any place in the world you have some elements that want to cause a little trouble and to show a little bit of dis 192 Dwight D. Eisenhower, 1960 e1 38 courtesy. They might here. But when you've got a purpose that is directed toward the vast bulk of the people that you meet, you just can't worry about these things; and I don't think the Secret Service worries too much about those. Certainly they haven't told me they do. Q. Ray L. Scherer, National Broadcasting Company: Mr. President, we note that the father of your daughter-in-law is about to embark on a career in Florida politics. I'm wondering, as another old Army man who got into politics, if you had any friendly advice for Colonel Thompson. [Laughter] THE PRESIDENT. Well, I'll tell you, Mr. Scherer, I learned about this this morning, because my wife seems to read the paper in which there is this kind of news, so she called me in to read it to me. Now, that's all I know about it. And I think if he wanted any advice from me, he'd ask for it. Q. John Scali, Associated Press: Mr. President, a few days ago France exploded its first atomic bomb. Since then, there have been reports that the French may explode a second one, and possibly a hydrogen device later. Are you concerned by this French action, or do you regard it as strengthening the overall defensive capacity of the West? THE PRESIDENT. If you go back to 1947, one of the arguments that Mr. Baruch presented in the United Nations, in the committee of which he was the chairman, and to the Russians, that one of the great risks we wanted to avoid was that of having many nations developing this kind of a device, this kind of a weapon. I think it's only natural that first Britain and then France have done this, in the circumstances of life as we now understand them and know them. I would hope that we could get the kind of agreements among the larger nations, that have already done this thing to make sure that other nations don't want to go into the expense of going into this kind of an armament race, that would stop this whole thing in its tracks. This is not easy. We must realize that this spirit of nationalism of which we hear so much is not felt just by the underdeveloped nations, the ones that the people want to be suddenly independent; it is felt by all of us. The matters of pride and national prestige impel people to do things, I think at times, that would not be necessary. But I would say this, that our great hope is for agreement where we can stop the thing where it is. Q. M. Stewart Hensley, United Press International: Mr. President, in I93 (I 38 Public Papers of the Presidents this connection the Russians yesterday at Geneva turned down the plan you proposed last week to ban all tests except the smaller underground ones. They countered with a proposal under which they would permit Western inspection teams to make a limited number of checks of any suspicious explosion in the Soviet Union. Do you think this means we're getting closer together on this? What do you think about their counter? THE PRESIDENT. First of all, as a practical measure, I thought the proposal we put forward was a very good one, and it would certainly establish a very good position while we went along with the technical and political conversations that might lead toward the total ban that both sides profess to want. Now, the Soviet proposal does seem to change the criteria that they are ready to observe, which would establish the need for inspection. But when they say a limited number, obviously you've got a very long argument coming in, because now you get into the old numbers racket that everybody seems to love so much; just exactly what is adequate would be a very difficult thing. I say this: it does seem to be a move away from a position that formerly looked completely rigid, and it certainly is going to be studied. Q. John Herling, Editors Syndicate: Mr. President, President George Meany yesterday said that business groups and the Eisenhower administration have joined hands in raising quote, "the phantom of runaway inflation" as a means of depressing wages. Do you care to comment on this observation by Mr. Meany, and do you regard the whole problem of wages, prices, and inflation as a fit subject for the forthcoming summit conference on labor-management relations? THE PRESIDENT. Well, I'm not going to comment on Mr. Meany's remarks, one reason being that he makes his remarks in an entire speech; I haven't read it, and therefore I don't know its context. To accuse somebody else of bad faith, in my opinion, is just not a way to win arguments. I try to take anybody's convictions and expressed opinions and weigh them against facts and logic as I understand them. I'm not trying to say that someone is guilty of pushing a particular doctrinaire position or doing anything else merely because, in this case, the administration believes that we should have sound fiscal arrangements, avoid deficits that we pass on to our children and therefore spur inflation. Inflation, in the long run, in my mind, is a tremendous and always-present difficulty and risk that we must face every day of our life, as long as we live, in a free country. '94 Dwight D. Eisenhower, 1960q e1 38 Q. Lillian Levy, National Jewish Post and Opinion: Mr. President, in a speech recently, Senator Javits said that it would be in the best interests of this country to join with Israel in a mutual defense pact. He pointed to the fact that Soviet arms and military personnel are flowing into the middle east Arab countries, and expressed the view that a defense pact with Israel would serve as a deterrent to any Soviet-inspired or -encouraged Arab military action there. In view of present tensions in the area, would you comment on Senator Javits' recommendation? THE PRESIDENT. As a matter of fact, I didn't read this particular recommendation. I have heard similar ones from many people. The United States, as a matter of policy, has never been a major supplier of arms for Israel and doesn't intend to be, nor to any other country in the area. As a matter of fact, I went to the United Nations and, making a talk about the whole Mideast situation, said if these countries could get together in any kind of a program or plan for the economic development of the whole region, the United States would be greatly interested in dealing with the whole group. Now, with regard to the allegations of the arms the Soviet are sending in there; of course they have. We know they've been in that area, but Israel has also been getting arms from Britain and France for a long time. Frankly, I think we're sending arms to enough nations, really. I think somebody else ought to carry a little responsibility. Q. Richard L. Wilson, Cowles Publications: Mr. President, there is common speculation in the political community that there may be a difference in approach toward public problems between you and Vice President Nixon in the sense that Nixon would be more a man of action, you more a man to wait until events developed to see whether action was required. He has stated recently, for example, that there should be a month-bymonth examination of our military posture and military-whether our security in the military field is greater now. Would you, based on your experience with Mr. Nixon, would you be able to discuss or characterize any variations in approach that you might have, as distinguished from his approach? THE PRESIDENT. All of us are human, and consequently, I don't believe there are any two men in the world, or two individuals, who would find exactly the same methods or use exactly the same procedures in trying to solve a difficult problem. I95 Public Papers of the Presidents Mr. Nixon has been close to me now for something over 7 years. In all that time, I know of no occasion when he's been excluded from any important group that is conferring for the making of policy or deciding upon action, and never once that I know of has Mr. Nixon been at any major variance with me. I think I've made clear many, many times the great respect I have for his capacities and for his character, and I would expect him to have some kind of different methods. He doesn't work with people the way I do; he has his own methods. I've had mine, developed probably over a good many years, and possibly I think they're pretty good. But I certainly have no thought of trying to guide him as to what he will or should do. One other comment to your question: far from waiting each month to weigh defense requirements and defense production, we have the National Security Council, in which nobody is barred from bringing up any fear or any matter, any preoccupation on his mind, any anxiety or conviction. Of course, we have to work by agenda, but everybody there is just as free to express his opinion as a man can be. So the matter of reviewing constantly our defensive requirements and measures we take to meet them is a thing that is a day-by-day process. Q. Raymond P. Brandt, St. Louis Post-Dispatch: Mr. President, in your mutual security message yesterday, you said that in March there would be a meeting of representatives of many nations to study the pooling of foreign aid. Could you tell us who will be at that meeting, what will be their objective? THE PRESIDENT. Well, I can't tell you exactly at this moment; because if the final charter for the meeting has been drawn up, why, I have not yet read it. I have visited a number of governments and individuals, talking about this matter. I've found a very great concern about it, and everybody feeling that there is a common responsibility. There's one thought which I very definitely put into my message that I believe we should talk about a little bit. It is this: we are not just a mere group of industrialized and, say, relatively wealthy nations seeking to give something or put something into another nation according to our ideas of what will help them. I personally believe the whole free world should be in a cooperative effort to raise the world economy. I believe that, in doing the kind of thing that we are now talking about, we will I96 Dwight D. Eisenhower, 1960 be raising our own prosperity, our own well-being, and our own security. So, I believe that the smallest country can contribute something. As long as it's got the will and the heart to do the major portion of the work itself which must be done, it can increase its output of raw materials, all of the things that it needs to get the foreign exchange which will enable it to purchase from others. In the same way, we get a better market, but we give them better markets all the time. I really think this whole matter is not just of a group of, let's say, "have" nations meeting to see how they will distribute the load that falls on them. I think in the long run we must have a congress of all the free nations where we can work this out. Q. Mr. Brandt: Does that mean you are going to use the U.N. more than you have done in the past? THE PRESIDENT. To my mind, of course, the United Nations is something that should be strengthened. I think it's done good work in so many areas; but there are, of course, difficulties because of its particular composition. In any event, I want to get over the cooperation between the primary user and the giver so that we will have an expanding world economy, rather than just saying we are helping some particular group. I really believe, again I must tell you, there is no program that the United States is pursuing now that is so much to our own interests as this one of mutual security. I realize it's the whipping boy for everybody that wants to have another dam built or something else done in his area. It's got the political appeal of just an ordinary clod out in the fieldnone; so therefore it makes a good whipping boy. But if the United States as a whole can be waked up to our best interests, this program will be supported generously. Q. Sarah McClendon, Manchester (N.H.) Union Leader: Sir, our Air Force sent a safety crew to Newfoundland to board the plane of Mikoyan to see that he got safely to Cuba. Now, I realize, as the Air Force says, that this is done for reciprocity; but why would we have to send one of our Air Force crews into another country to board the plane of a Russian official to see that he gets into a third country, so that he can go down there and malign us? [Laughter] THE PRESIDENT. Ma'am, I thought I kept rather closely in touch with all the affairs of this Government. There are certainly many, and I think I do in most of the important things. This is the first time I heard it. I I97 ( 38 Public Papers of the Presidents commend you to Secretary Sharp; ask him what he thinks, why this is done. I don't know. Q. David Kraslow, Knight Newspapers: Mr. President, will the administration's recommendations on the Sugar Act contain a provision designed specifically to deal with unfavorable developments in Cuba? THE PRESIDENT. No. I say what we are doing now is studying the program with everybody that is interested, both outside and inside Government, and that program is not yet ready to go to the Congress. Q. Charles E. Shutt, Telenews: Mr. President, two of the many charges that your defense critics have made against you and your administration are that the administration has been complacent in advising the people of the danger we face in world affairs. The other is that economy may stand in the way of developing some weapon or a series of weapons we may need. Sir, do you believe that the administration has misled the American people in any way, or that any money has been withheld from any weapon we might need? THE PRESIDENT. If anybody-anybody-believes that I have deliberately misled the American people, I'd like to tell him to his face what I think about him. This is a charge that I think is despicable; I have never made it against anyone in the world, and I wouldn't unless he were in a bar of justice somewhere to be tried for something that was intolerable. I would like to see somebody-people like yourselves-take the whole history of our defense organization from I945 until this minute, and see what has been done. Frankly, this Nation unilaterally disarmed, and it wasn't until the danger or the great surprise attack in Korea came about that we started in the other direction. In almost every field of development we were behind. We had to change our policy at that time, back in I950, and from that time on, we sought one thing-adequacy; adequacy in our power to deter and defend ourselves, and particularly to help these areas which are so exposed to the menace of Communist imperialism so that they may give a reasonable defense of themselves and their lives and their rights, while their allies could come to their assistance. This is what I believe we've been trying to do with all our might. I get tired of saying that defense is to be made an excuse for wasting dollars. I don't believe we should pay one cent for defense more than we have to. 198 Dwight D. Eisenhower, ig60 qt 39 But I do say this: our defense is not only strong, it is awesome, and it is respected elsewhere. Marvin L. Arrowsmith, Associated Press: Thank you, Mr. President. NOTE: President Eisenhower's one hun- 10:29 to 11:02 o'clock on Wednesday dred and eighty-first news conference was morning, February I7, i960. In attendheld in the Executive Office Building from ance: 205. 39 e Special Message to the Congress Recommending U.S. Participation in the International Development Association. February i8, i960 To the Congress of the United States: I herewith submit to the Congress the Articles of Agreement for the establishment of the International Development Association. I recommend legislation authorizing United States membership in the Association and providing for payment of the subscription obligations prescribed in the Articles of Agreement. The Association is designed to assist the less-developed countries of the free world by increasing the flow of development capital on flexible terms. The advisability of such an institution was proposed by Senate Resolution 264 of 1958. Following this Resolution, the National Advisory Council on International Monetary and Financial Problems undertook a study of the question. The Council's conclusions and the favorable response of representatives of other governments who were consulted during the course of the study have resulted in the Articles of Agreement which satisfy the objectives of that Resolution and which I am submitting herewith. The accompanying Special Report of the Council describes the Articles in detail. We all know that every country needs capital for growth but that the needs are greatest where income and savings are low. The less-developed countries need to secure from abroad large amounts of capital equipment to help in their development. Some part of this they can purchase with their current savings, some part they can borrow on conventional terms, and some part is provided by private foreign investors. But in many less-developed countries, the need for capital imports exceeds the amounts I99 (I 39 Public Papers of the Presidents they can reasonably hope to secure through normal channels. The Association is a multilateral institution designed to provide a margin of finance that will allow them to go forward with sound projects that do not fully qualify for conventional loans. In many messages to the Congress, I have emphasized the clear interest of the United States in the economic growth of the less-developed countries. Because of this fundamental truth the people of our country are attempting in a number of ways to promote such growth. Technical and economic aid is supplied under the Mutual Security Program. In addition, many projects are assisted by loans from the Export-Import Bank, and we also participate with other free world countries in the International Bank for Reconstruction and Development which is doing so much to channel funds, mainly from private sources, to the lessdeveloped areas. While we have joined with the other American Republics in the Inter-American Development Bank, there is no wide international institution which, like our Development Loan Fund, can help finance sound projects requiring a broad flexibility in repayment terms, including repayment in the borrower's currency. Conceived to meet this need, the International Development Association represents a joint determination by the economically advanced countries to help accelerate progress in the less-developed countries. It is highly gratifying that so many other free world countries are now ready to join with us in this objective. The Association is a cooperative venture, to be financed by the member governments of the International Bank. It is to have initial subscriptions totaling one billion dollars, of which the subscription of the United States would be $320.29 million and the subscriptions of the other economicallystrong countries would be $442.78 million. The funds made available by these countries would be freely convertible. The developing countries would subscribe $236.93 million, of which ten per cent would be freely convertible. Members would pay their subscriptions over a five year period and would periodically re-examine the adequacy of the Association's resources. The International Development Association thus establishes a mechanism whereby other nations can join in the task of providing capital to the less-developed areas on a flexible basis. Contribution by the less-developed countries themselves, moreover, is a desirable element of this new institution. In addition, the Association may accept supplementary resources 200 Dwight D. Eisenhower, 1960 9 39 provided by one member in the currency of another member. Thus, some part of the foreign currencies acquired by the United States primarily from its sales of surplus agricultural commodities may be made available to the Association when desirable and agreed to by the member whose currency is involved. The Articles of Agreement give the Association considerable scope in its lending operations so that it can respond to the varied needs of its members. And because it is to be an affiliate of the International Bank, it will benefit from the long and successful lending experience of the Bank. By combining the Bank's high standards with flexible repayment terms, it can help finance sound projects that cannot be undertaken by existing sources. With a framework that safeguards existing institutions and traditional forms of finance, the Association can both supplement and facilitate private investment. It will provide an extra margin of capital that can give further momentum to growth in the developing countries on terms that will not overburden their economies and their repayment capacities. The peoples of the world will grow in freedom, toleration and respect for human dignity as they achieve reasonable economic and social progress under a free system. The further advance of the less-developed areas is of major importance to the nations of the free world, and the Association provides an international institution through which we may all effectively cooperate toward this end. It will perform a valuable service in promoting the economic growth and cohesion of the free world. I am convinced that participation by the United States is necessary, and I urge the Congress to act promptly to authorize the United States to join with the other free nations in the establishment of the Association. DWIGHT D. EISENHOWER NOTE: The Articles of Agreement of the Advisory Council on International MoneInternational Development Association tary and Financial Problems are printed in and the Special Report of the National House Document 345 (86th Gong., 2d sess.). 20I Public Papers of the Presidents 40 eI Statement by the President on the Birth of a Son to Queen Elizabeth II and Prince Philip. February 19, 1i960 I KNOW that all Americans join with Mrs. Eisenhower and myself in congratulating Her Majesty, Queen Elizabeth II, and Prince Philip on the birth of their new son and are delighted by the news that the Queen and her son are doing well. May the Prince have a long, happy and useful life. 41 If Message to the Kingof Denmark on the Death of Prime Minister Hansen. February 20, 1960 Your Majesty: The people of the United States join me in expressing deepest sympathy to Your Majesty and to the people of Denmark at the passing of Prime Minister Hansen. I came to know him personally during the course of meetings both in Europe and the United States. He was a statesman whose absence will be felt keenly in the future by all of us who appreciated his humanitarian views and valued his many contributions to international understanding. DWIGHT D. EISENHOWER 42 eJ Radio and Television Address to the American People on the Eve of South American Trip. February 21, 1960 [ Delivered from the President's Office at 6:15 p.m.] My friends: Early tomorrow I start a journey to several of our Latin American neighbors, with three major purposes in mind. These are: to learn more 202 Dwight D. Eisenhower, 1960 e 42 about our friends to the south; to assure them again that the United States seeks to cooperate with them in achieving a fuller life for everyone in this hemisphere; and to make clear our desire to work closely with them in the building of a universal peace with justice. Our interest in our sister Republics is of long standing, and of deep affection. This, in itself, is reason sufficient for the journey. But in these days of world tension, of awakening ambitions, and of problems caused by the growing interdependence of nations, it is vital for national partners to develop better understandings and to improve common programs. The bonds among our American Republics are not merely geographic; rather they are shared principles and convictions. Together we believe in God, in the dignity and rights of man, in peace with justice, and in the right of every people to determine its own destiny. In such beliefs our friendship is rooted. Yet even among close comrades, friendships too often seem to be taken for granted. We must not give our neighbors of Latin America cause to believe this about us. So I shall reaffirm to our sister Republics that we are steadfast in our purpose to work with them hand in hand in promoting the security and well-being of all peoples of this hemisphere. To do so calls for a sustained effort that is, unfortunately, sometimes impeded by misunderstandings. One such misunderstanding, at times voiced in Latin America, is that we have been so preoccupied with the menace of Communist imperialism and resulting problems of defense, that we have tended to forget our southern neighbors. Some have implied that our attention has been so much directed to security for ourselves and to problems across the oceans to the west and east, that we neglect cooperation and progress within this hemisphere. It is true that we have given first priority to worldwide measures for security against the possibility of military aggression. We have made many sacrifices to assure that this security is and will be maintained. But I hope to make clear, on my journey, that our military programs at home and abroad have been designed for one purpose only-the maintenance of peace, as important to Latin America as to us. That there is need for these programs, postwar history clearly proves. For the first 5 years following World War II, we in the United States, 203 q 42 Public Papers of the Presidents hopeful of a global and durable peace, pursued a policy of virtual disarmament. But, the blockade of Berlin, the military weakness of our European friends living face to face with the Communist menace, and finally the Korean war-together with arrogant threats against other peaceful nations-belatedly made it clear to us that only under an umbrella of military strength could free nations hope to make progress toward an enduring and just peace. World uneasiness rose to the point of alarm. Since then our Nation has developed great arsenals of powerful weapons to sustain the peace. We have created a great deterrent strength-so powerful as to command and to justify the respect of knowledgeable and unbiased observers here at home and abroad. Our many hundreds of Air Force bombers deployed the world overeach capable of unleashing a frightful destruction-constitute a force far superior to any other, in numbers, in quality, and in strategic location of bases. We have, in addition, a powerful nuclear force in our aircraft carriers and in our host of widely deployed tactical aircraft. Adding constantly to these forces are advanced types of missiles steadily augmenting the armaments of all ground and other military units. As for longer range ballistic missiles, from a standing start only 5 years ago, we have literally leaped forward in accomplishments no less than remarkable. Our Atlas missile, already amazingly accurate, became operational last year. Missiles of intermediate range are in forward bases. The first Polaris missile submarine-an almost invulnerable weapon-will soon be at sea. New generations of long-range missiles are under urgent development. Collectively, this is a force not unduly dependent upon any one weapon or any one service, not subject to elimination by sudden attack, buttressed by an industrial system unmatched on this earth, and unhesitatingly supported by a vigorous people determined to remain free. Strategically, that force is far better situated than any other that could be brought to bear against us. As we have strengthened these defenses, we have helped to bolster our own and free world security by assisting in arming 42 other nations-our associates in the defense of the free world. Our part in this indispensable effort is our Mutual Security Program. It makes possible a forward strategy of defense for the greater security of all, including our neighbors to the south. 204 Dwight D. Eisenhower, 1960 q 42 I am certain that our Latin American neighbors, as well as you here at home, understand the significance of all these facts. We have forged a trustworthy shield of peace-an indestructible force of incalculable power, ample for today and constantly developing to meet the needs of tomorrow. Today, in the presence of continuous threat, all of us can stand resolute and unafraid-confident in America's might as an anchor of free world security. But we all recognize that peace and freedom cannot be forever sustained by weapons alone. There must be a free world spirit and morale based upon the conviction that, for free men, life comprehends more than mere survival and bare security. Peoples everywhere must have opportunity to better themselves spiritually, intellectually, economically. We earnestly seek to help our neighbors in this hemisphere achieve the progress they rightly desire. We have sought to strengthen the Organization of American States and other cooperative groups which promote hemispheric progress and solidarity. We have invested heavily in Latin American enterprise. New credits, both public and private, are being made available in greater volume than ever before. Last year, these approximated one billion dollars. Our outstanding loans and investments in Latin America now exceed eleven billion dollars. With our sister Republics, we have just established the Inter-American Development Bank. With them we hope that this new billion dollar institution will do much to accelerate economic growth. Additionally, we have expanded technical cooperation programs throughout the Americas. To improve our own knowledge of our neighbors' needs, we recently established a distinguished panel of private citizens under the chairmanship of the Secretary of State.' This National Advisory Committee will, by continuous study of inter-American affairs, help us at home better to cooperate with our Latin American friends. Members of this committee will accompany me on my journey tomorrow. This will be a busy trip, for our neighbors' problems are many and vexing; the lack of development capital-wide fluctuations in the prices of their export commodities-the need for common regional markets to 1 The National Advisory Committee for Inter-American Affairs. See I959 volume, this series, Item 287 and note. 205 (e 42 Public Papers of the Presidents foster efficiency and to attract new credits-the need to improve health, education, housing, and transportation. All these are certain to be subjects of discussion in each of the countries I visit. And wherever I go, I shall state again and again the basic principles and attitudes that govern our country's relationships in this hemisphere. For example: Our good partner policy is a permanent guide, encompassing nonintervention, mutual respect, and juridical equality of States. We wish, for every American nation, a rapid economic progress, with its blessings reaching all the people. We are always eager to cooperate in fostering sound development within the limits of practical capabilities; further, we shall continue to urge every nation to join in help to the less fortunate. We stand firmly by our pledge to help maintain the security of the Americas under the Rio Treaty of I947. We declare our faith in the rule of law, our determination to abide by treaty commitments, and our insistence that other nations do likewise. We will do all we can to foster the triumph of human liberty throughout the hemisphere. We condemn all efforts to undermine the democratic institutions of the Americas through coercion or subversion, and we abhor the use of the lie and distortion in relations among nations. Very recently, in a faraway country that has never known freedomone which today holds millions of humans in subjugation-impassioned language has been used to assert that the United States has held Latin America in a colonial relationship to ourselves. That is a blatant falsehood. In all history no nation has had a more honorable record in its dealings with other countries than has the United States. The Philippines are independent today-by their own choice. Alaska and Hawaii are now proud partners in our federated, democratic enterprise-by their own choice. Puerto Rico is a Commonwealth within the United States system-by its own choice. After the two World Wars and the Korean war, the United States did not annex a single additional acre, and it has sought no advantage of any kind at the expense of another. 206 Dwight D. Eisenhower, I96o And in all of Latin America, I repeat, we adhere honorably and persistently to the policy of nonintervention. It is nonsense to charge that we hold-or that we desire to hold-any nation in colonial status. These are but a few of the matters that friends in this hemisphere need to talk about. I look forward with the keenest pleasure to exchanging views with the Presidents of Brazil, Argentina, Chile, and Uruguay, and with their colleagues. It is my profound hope that, upon my return, I shall be able to report to you that the historic friendship and trust among the nations of this hemisphere have been strengthened, and that our common cause-justice and peace in freedom-has been reaffirmed and given new life. Good evening, and to my Latin American friends, buenos tardes. NOTE: The President departed from An- Plata, and San Carlos de Bariloche in Ardrews Air Force Base on February 22 at gentina; Santiago, Chile; and Montevi8:30 a.m. His itinerary included stop- deo, Uruguay. On his return trip he overs at Ramey Air Force Base, Puerto stopped again at Ramey Air Force Base, Rico; Brasilia, Rio de Janeiro, and Sao Puerto Rico. He returned on March 7, Paulo in Brazil; Buenos Aires, Mar del arriving at Andrews Air Force Base at 3:01 p.m. 43 eI Remarks Upon Arrival at International Airport, San Juan, Puerto Rico. February 22, 1960 Governor Munoz Marin: Thank you very much indeed for your words of welcome. Naturally, I am delighted that my first stop on this 15,ooo-mile journey is in Puerto Rico. To all of you, I bring greetings from your fellow citizens of the 50 States of the Republic. I bring their best wishes for your continued success in making this island a unique demonstration of how free men and women work together for their mutual good. For Puerto Rico is truly unique. We are happy that Puerto Rico is a proud, free, self-governing Commonwealth, joined to the United States of America by her own choice. This island, in the Caribbean waters between two great continental land masses, has been stirred by two mighty currents of history, enriched by two great treasuries of culture. 207 (l 43 Public Papers of the Presidents Out of them, Puerto Rico has fashioned its own way of life, blending the best of the old and the new. Your program of development-rooted in self-confidence, self-help, and self-achievement-has aroused tremendous interest in every area of the free world. To other peoples now struggling to realize their aspirations and ambitions, the Commonwealth of Puerto Rico has demonstrated that courage, persistence, faith in one's fellow men and a Godgiven destiny can open up ways through barriers and obstacles that might appear to be insurmountable. By what you have accomplished for yourselves, by the help you have given others toward a like accomplishment for themselves, you have made for the Commonwealth a record of achievement in which many other people around the globe have found hope and inspiration. Although the hours I spend here must be few, I know that I shall leave tomorrow morning sharing some of the hope and some of the inspiration that are inescapable on this island. Thank you very much. NOTE: The President spoke at 12:07 p.m. Marin and other members of the Puerto He was met by Governor Luis Muiioz Rican Government. 44 4T Veto of Bill To Amend the Federal Water Pollution Control Act. February 23, i960 [ Released February 23, i960. Dated February 22, i960] To the House of Representatives: I am returning herewith, without my approval, H.R. 36io, an enrolled bill "To amend the Federal Water Pollution Control Act to increase grants for construction of sewage treatment works, and for other purposes." The bill would authorize an increase in Federal grants to municipalities for assistance in the construction of sewage treatment works from $50 million to $90 million annually, and from $500 million to $900 million in the aggregate. Because water pollution is a uniquely local blight, primary responsibility for solving the problem lies not with the Federal Government but rather must be assumed and exercised, as it has been, by State and local governments. This being so, the defects of H.R. 36io are apparent. 208 Dwight D. Eisenhower, 1960 By holding forth the promise of a large-scale program of long-term Federal support, it would tempt municipalities to delay essential water pollution abatement efforts while they waited for Federal funds. The rivers and streams of our country are a priceless national asset. I, accordingly, favor wholeheartedly appropriate Federal cooperation with States and localities in cleaning up the Nation's waters and in keeping them clean. This Administration from the beginning has strongly supported a sound Federal water pollution control program. It has always insisted, however, that the principal responsibility for protecting the quality of our waters must be exercised where it naturally reposes-at the local level. Polluted water is a threat to the health and well-being of all our citizens. Yet, pollution and its correction are so closely involved with local industrial processes and with public water supply and sewage treatment, that the problem can be successfully met only if State and local governments and industry assume the major responsibility for cleaning up the nation's rivers and streams. The Federal Government can help, but it should stimulate State and local action rather than provide excuses for inaction-which an expanded program under H.R. 36 I o would do. The following are steps which I believe the Federal Government should take so that our rivers and streams may more rapidly be relieved of the pollution blight. First, I am requesting the Secretary of Health, Education and Welfare to arrange for a national conference on water pollution to be held next December. This conference will help local taxpayers and business concerns to realize the obligation they have to help prevent pollution. It is unconscionable for one town or city deliberately to dump untreated or inadequately treated sewage into a stream or river without regard to the impact of such action on the lives of down-stream neighbors. Local taxpayers should be willing to assume the burdens necessary to bring such practices to a halt. Businessmen and industrialists must face up to the expenditures they must make if industrial pollutants are to be removed from the nation's waters. In short, the proposed conference will provide a forum in which all concerned can confront and better appreciate their mutual responsibility for solving this pressing problem. Second, where the issue is of an interstate nature and the problem is beyond the powers of a single State, or where it is otherwise appropriate 209 (I 44 Public Papers of the Presidents to assist State enforcement actions, the Federal Government should have authority to move more quickly and effectively in directing the application of control measures that will swiftly correct such intolerable pollution. In accordance with the 1961 Budget Message, recommendations will be submitted to the Congress for strengthening the enforcement provisions of the Federal Water Pollution Control Act. Third, the Federal Government should continue to provide modest financial assistance for the administration of control programs by States and interstate water pollution control agencies. Because such programs rest upon a solid foundation of local cooperative action, they properly merit Federal encouragement and assistance. An extended life for this program is recommended in the 1961 Budget. Fourth, the Federal Government, through research and technical assistance, can be of material help in contributing to our knowledge of water pollution-its causes, its extent, its impact and methods for its control. Increased Federal effort in this respect is also provided for in the 1961 Budget. These measures will provide Federal authority that accords with the proper Federal, State, and local roles in water pollution abatement. I urge their early consideration by the Congress. DWIGHT D. EISENHOWER NOTE: The veto message was released in Washington. 45 1 Remarks at the Civic Reception for President Eisenhower in Brasilia. February 23, 1960 Mr. President, Dr. Pinheiro, citizens of Brasilia: I am most grateful for the cordial welcome you have extended to me. I am glad that my return to this hospitable land has taken place in this magnificent new city, a living testimony to your own tireless efforts, Mr. President, and a symbol of Brazilian progress. It is an inspiration to get this new glimpse of the vision and energy which characterize modern Brazil and its leadership. Brasilia has captured the imagination of my fellow countrymen who have visited here and, who, on their return home, have been lavish in their praise of the wonders they have seen. 210 Dwight D. Eisenhower, g960 'l 45 For several reasons, Brasilia fascinates citizens of the United States. In the first place, your decision to carve a beautiful city out of the wilderness reminds us of our own decision many years ago to move the capital of our fledgling nation from Philadelphia to the District of Columbia. In the second place, this pioneering venture recalls to our minds the rolling advance of our own frontier-the winning of the American Westa process which was barely accomplished when I was a youngster. Indeed, having now witnessed the speed with which Brasilia is being completed, I understand why Brazil itself is sometimes described as a "country in a hurry." Brasilia is an epic worthy of this nation's vast possibilities and aspirations. And thirdly, one senses here a "boom" spirit not unlike that which pervaded frontier western communities in the United States such as my boyhood town of Abilene, Kansas. It has been said, somewhat facetiously, that Brazil and the United States-both influenced by the stem demands of the frontier-ought to get along well together because each has so many of the other's faults. At least we are both willing to confess that we do have faults. And of course we get along well because we have many of the same virtueswe are, indeed, much alike. Our vast expanses of land have many similarities in physiography and resources. Our constitutional systems and forms of government are similar. The people of both our countries have various national origins, gaining strength from diversity. Both countries are forever committed to democracy, human dignity, and freedom with justice. Our common heritage will be emphasized for us when you inaugurate your new capital next April 2 I-Tiradentes Day. It was in 1787, when Thomas Jefferson, then our Minister in France, gave sympathetic counsel to Jose Joaquim da Maia, emissary of Tiradentes and his little band of Inconfidentes. Those Brazilian patriots-to recall the observation of Joaquim Nabuco-had their eyes fixed on the new democracy to the north at a time when, here, even to think of independence was a crime. Your freedom and ours were won by men of dauntless courage and passionate vision, and it is these qualities in our peoples today that will carry us forward to the brighter future so eloquently dramatized by this new city of the frontier. To you, Dr. Pinheiro, and your thousands of associates, has been en 6029,5-61 17 2II (l 45 Public Papers of the Presidents trusted the enormous task of transplanting the inspired dream of planners into reality. I congratulate you for the marvels you are fashioning. And now to the workers assembled here and through them to all Brazilian labor, I bring special greetings. May your toil be fruitful in advancing Brazil's development and well-being. May your hands be firmly clasped with those of the workers of the United States and the entire free world in the building of a richer life, in freedom, for yourselves, your children, and all generations to follow. I thank all of you here for the honor you today have done me and my country. This has been a moving and memorable experience. I thank you for the privilege of being here. NOTE: The President spoke at the Central Brazilian Cabinet, and U.S. Ambassador Platform. Earlier, upon his arrival about John M. Cabot. 1:45 p.m. at the Brasilia Airport, the Dr. Israel Pinheiro, to whom the PresiPresident was met by President Juscelino dent referred, was in charge of the conKubitschek de Oliveira, members of the struction of Brasilia. 46 (T Joint Statement of the President and President Kubitschek of Brazil. February 23, i960 THE PRESIDENTS of the United States of Brazil and of the United States of America, Juscelino Kubitschek de Oliveira and Dwight D. Eisenhower, meeting together in the new city of Brasilia, soon to be the capital of Brazil, reaffirm the joint determination of the two nations to defend the following principles: i. The democratic freedoms and the fundamental rights of man, wherein are included the fight against racial discrimination and the repudiation of any attempt against religious freedom and of any limitation on the expression of thought. These are inalienable conquests of civilization which all free men have the duty to protect, bearing in mind the sacrifices of the soldiers of both countries in the last war, and the need to prevent repetition of the causes which led to the loss of so many young and precious lives. 2. The belief that the aspiration of the peoples of the Americas to an ever-improving way of life, moral and material, presents one of the great challenges and opportunities of our time. This challenge should be met by joining together, ever more closely and harmoniously, the 212 Dwight D. Eisenhower, i960 q9 47 efforts of all countries within the inter-American community in order that, through coordinated action, there may be an intensification of measures capable of combating underdevelopment in the vast area of the American continents. 3. The full implementation of the principles of political and economic solidarity contained in the Charter of the Organization of American States and in the Mutual Assistance Treaty of Rio de Janeiro. 4. The recognition that economic advancement cannot be disassociated from preservation of peace and democratic rights, and that the effort of each nation must be complemented by hemisphere action helping all Americans to achieve the improved living standards which will fortify belief in democracy, freedom and self-determination of peoples. To this end, the Presidents reaffirm their solidarity with the principles approved by all the nations of America within the scope of Operation Pan America and assure their wholehearted support to the Organization of American States and to those other entities which already are formulating measures to help achieve these ends. This will pave the way to the realization of the inter-American ideals, economic as well as political. Acknowledging that joint efforts of the American nations have already achieved much, but firm in the conviction that action still more fruitful should be taken, the two Presidents are confident that the hemispheric crusade for economic development will lead toward greater prosperity and harmony for all. NOTE: This statement, released at Brasilia, Lafer at the site of the monument comwas read by Secretary of State Christian memorating President Eisenhower's visit A. Herter and Foreign Minister Horacio to Brasilia. 47 eI Message to the Congress Transmitting Second Annual Report on U.S. Aeronautics and Space Activities. February 24, i960 [ Released February 24, I 960. Dated February 22, 1 960] To the Congress of the United States: In accordance with Section 2o6(b) of the National Aeronautics and Space Act of I 958, I am transmitting herewith the second annual report on the Nation's activities in the fields of aeronautics and space. 213 Public Papers of the Presidents During I959, the Nation's space effort moved forward with purpose and its accomplishments were many, as this report recounts. In the short period of a single year, a program of great complexity and scope was aligned so that the scientists of many organizations in and out of Government could pool and coordinate their knowledge and skills. Much information of far-reaching significance was acquired on the frontiers of science and technology; substantial gains were made, ranging from advances in aircraft and space vehicle design to greatly improved understanding of the environment in which our planet exists and by which its natural forces and life are conditioned. The year was also one of transition. The national space program grew in breadth and depth-benefiting greatly from the tremendous efforts of the American scientists, engineers, and technicians who, in the short space of the past five years, have performed miraculously in developing United States rocket technology. This Report details the steps taken during 1959 to establish a firm foundation for a dynamic program of space exploration, and it summarizes the contributions of Federal agencies toward the paramount goal: the conquest of space for the benefit of all mankind. DWIGHT D. EISENHOWER NOTE: The message and report, which in House Document 349 (86th Cong., 2d were released in Washington, are printed sess.). 48 C Remarks Upon Arrival at the Naval Ministry in Rio de Janeiro. February 24, 1960 President Kubitschek, Your Excellencies, and citizens of Rio de Janeiro: It is a privilege and a particular pleasure to meet again your distinguished President and a privilege to return to this great country with which over the years we have enjoyed fruitful relations in a tradition of friendship. When I visited Brazil in I946, I came as a former commander of allied military forces to pay personal tribute to the gallant Brazilian people for their invaluable contributions to our common victory in World War I. Now, in response to your President's gracious invitation and to my long-held desire to reciprocate the courtesy which he did us in visiting 214 Dwight D. Eisenhower, 1960 the United States as President-elect, I come here as the representative of i8o, million citizens of the United States. They share with you this fervent wish: that war and all forms of coercion be forever banished from the earth; that leaders of all nations hearken to the prayers of their peoples for peace-for a peace founded on mutual respect, understanding, and collaboration-a peace in which the race of armaments will give way to a constructive, cooperative attack against disease, ignorance, and poverty-a peace which makes neighborliness such as that enjoyed by our two countries a reality throughout the world. It is impossible to enter Rio de Janeiro without feeling the inspiring impact of this city's scenic grandeur. But Rio has more than natural beauty. For decades this city has become a symbol of Brazil's cultural contributions to the world. In the halls of Rio, great principles have been proclaimed, righteous determinations formed. Here, in I942, the Foreign Ministers of the American Republics voiced this hemisphere's determination to defend itself against a Fascist aggression. Here representatives of the Americas met in I947 to proclaim in solemn treaty that an attack on one American Republic would be an attack on all. That treaty has enabled the nations of this hemisphere to live in peace, free of the fear that any one of them, however weak or small, would have its independence challenged by any other, however strong or large. Brazil and the United States have always lived together in peace and friendship. Constant cooperation has been mutually beneficial. I hope that my brief visit here will emphasize the desire of my Government and all the people of my country to strengthen bonds of friendship with you. We seek only greater understanding of one another, a mutual conviction that all problems existing between us can be resolved to the benefit of both nations, and a lasting partnership in efforts to build a stronger, freer hemisphere-a stronger, freer world. Mr. President, I am grateful for the generosity of your welcome and remarks, and to all of you, thank you very much. NOTE: The President spoke at I I: 22 a.m. 2I5 Public Papers of the Presidents 49 eI Address Before a Joint Session of the Congress of Brazil. February 24, 1960 Mr. President, Members of the Congress, fellow citizens of the New World, ladies and gentlemen: Mr. President, I think you must understand how deeply touched I am by the scene which here before me spreads. I see here represented in the members of this body the spirit, the intellect, and the character of the great Brazilian nation, a nation which is surging forward to heights as yet unimagined, even by ourselves. Beyond this, I am grateful for the generous statements directed to my country and to me by those who have preceded me today. I am proud that I have been invited the second time by the representative body of Brazil to meet with them for a brief period, and I am more proud of the fact that your spokesmen have greeted me and my country as a country and as an individual that with them work to support and forward the priceless values that make men free and fight those influences which tend or would want to regiment or enslave them. It is, then, with a sense of singular honor that I come before you, the elected representatives of the people of the United States of Brazil. But the warm glow of personal pleasure is tempered by the realization that we share awesome responsibilities which this profoundly moving occasion prompts me to discuss with you. If the burdens of my office permitted, I would travel to the largest cities and the remotest villages of all the Americas, to speak of these responsibilities and of how, together, we may possibly bear them successfully. Since I cannot do this, I trust that what I say here will be accepted by the governments and peoples of all the Western Hemisphere nations as an expression of hope from the millions of my country to the millions who constitute Latin America. It is fitting, I think, that I should do this here, at the beginning of my present journey, for you of Brazil and we of the United States of America have always worked together for the spiritual unity and material advancement of the hemisphere. If it were physically possible for us to do so, I am sure we would speak with a single voice to all our neighbors of this vast continent. Not long ago, you and we shared anxieties, suffering, and tragedy 2I6 Dwight D. Eisenhower, I96o q 49 in an agony of worldwide war. Many of your families, as of ours, paid a heavy price in order that the rule of law and moral suasion might replace the rule of naked force. To pay homage to the gallant Brazilian soldiers, airmen, and sailors who fought side by side with others of the free world I came here I4 years ago. I know that your brave men, who knew the horrors of war, pray with me now, that their children and their children's children will find a better way-so that in the future the deep, abiding desires of humanity will prevail over the arrogance and ambitions of misguided or willful leaders; that consultations will replace coercion; that mutual understanding will eliminate threat and crude accusation; that the earth, casting aside the sterile use of resources for arms, will yield its rich bounty to all who are willing to work in freedom. I am confident that I shall not be thought presumptuous in suggesting that we-our two nations-could speak with a single voice. For our basic ideas have a common inspiration: man, in his sonship under God, is endowed with dignity, entitled to equality in all human and political relations, and destined, through the employment of consecrated intelligence, to shape a world harmonious with basic moral law. Adhering to these beliefs, we have established similar governmental systems; we have constantly maintained friendly relations unmarred by a single explosive incident; and we have worked together to establish and strengthen the Organization of American States, the United Nations, and other cooperative international organizations. We of the United States admire Brazil for its enviable record of constructive leadership in hemisphere and world affairs, and we salute your statesmen who have played decisive parts in critical international situations, even some involving the United States and one or more of our sister Republics. Speaking with one voice, then-your country and mine-we would say, I know, that the first responsibility of leadership in any nation is to work for the welfare of its own people, its own land. We would emphasize that heavy reliance must be placed upon the creative talents of the people themselves, with government a helpful partner. While we recognize that success or failure in the whole domestic enterprise is largely a nation's own responsibility, we would look for any needed outside temporary assistance to speed our development. Certainly my country did this from its establishment as a free nation until late in the nineteenth century. And in receiving and using these honors, our sov 217 Public Papers of the Presidents ereignty was not violated-nor was our self-reliance diminished. You now are experiencing, primarily due to your own persistent labors, a remarkable industrial and economic growth. Yesterday, on what was once a remote plateau, I saw your growth revealed in the stone and steel of an emerging and magnificent new capital-a symbol of the vision and sturdy confidence which characterize modern Brazil. This surging growth is evident everywhere in this seaport city of Rio, and tomorrow I shall see what I am told is the most rapidly growing city in the worldSao Paulo. We of the United States are proud that our public and private agencies have responded to the best of their ability to your requests for temporary assistance. United States public and private investments and loans in Brazil now total about two and a half billion dollars. To this could be added the loans of international financial agencies which obtain the major part of their funds from the United States. These are mighty, but only supplemental aids. The time will come when Brazil, through its own efforts, will experience both the benefits and the complexities of being a creditor nation, and others will be seeking your help-a seeking which I know will not be unrewarded. Our second responsibility is to all our good neighbors of this hemisphere. We, Brazil and the United States, hold the common, burning conviction that relations among these sister nations must be characterized by mutual respect, juridical equality, independence, respect for each human being, regardless of his race, creed, or color, and a willingness to help one another promote the well-being of all our peoples. Neither of us covets one acre of land from another. We do not wish to prosper at another's expense. We do not wish to impose our particular form of democracy upon another. Rather, fervently and persistently, while avoiding all forms of intervention, we proclaim our hope that the nations of the hemisphere will each, according to its own genius and aspirations, develop and sustain free government. We pray that all of us will reject cruel tyranny, for tyranny is, in simple essence, the outright denial of the teachings of Christ. May each of us in every appropriate way, and especially by example, work for the strengthening of democratic institutions. You of Brazil have constantly shown your desire for the Americas to be a community of free democratic nations, united by the common ideal 2I8 Dwight D. Eisenhower, 1960 (I 49 of hemispheric cooperation and solidarity. You, like we, insist upon freedom of choice for every country. And you, like we, aspire to the day when poverty, hunger, illiteracy, and discrimination in all forms will become relics of the past. In proposing Operation Pan America, Brazil has taken an important initiative for the democratic development of the entire hemisphere. The high purpose of this imaginative proposal of your distinguished President-to attack the problem of underdevelopment by cooperative effortis one which my government endorses. It is for this reason that we have joined with Brazil in requesting an early meeting of the Committee of Nine; this Committee should accelerate the formulation of the specific projects needed to translate this plan into a working reality. Permit me here to renew a pledge, which I have made repeatedly: the United States itself stands ready, and will continue to urge other free nations to be ready to join in a gigantic effort: to devote substantial portions of the savings made possible by disarmament to vast constructive programs of peaceful development. We embrace this idea despite the fact that we are now carrying such heavy burdens throughout the world that our own internal and external financial situation requires great caution in management-and incidentally, this aid includes significant volumes of public and private capital and technical assistance to Latin America. Pending that achievement, I assure you that my government, while honoring its commitments outside this hemisphere is in no mood to allow its special responsibilities among the American States to go by default. Indeed, these commitments and responsibilities are part and parcel of the same problem-preserving the strength and unity of the free world. This brings me to the third responsibility which we may speak of in common voice-that which involves the larger world. This is truly a time of fateful decision. Nations now possess power so terrible that mutual annihilation would be the only result of general physical conflict. War is now utterly preposterous. In nearly every generation the fields of earth have been stained with blood. Now, war would not yield blood-only a great emptiness for the combatants, and the threat of death from the skies for all who inhabit the earth. To strive ceaselessly, honestly, and effectively for peace is today the imperative responsibility of every statesman-of yours, of ours, of all countries. At the same moment of this great crisis, we face anew decisions involv 60295-61 18 2I9 (I 49 Public Papers of the Presidents ing tyranny or freedom, totalitarianism or democracy. Our shared view on this issue is so eloquent and so clear that any words of mine would not be enlightening. And, perhaps inseparable from the decision of freedom or slavery, we face the philosophic issue which today brings fear, misgiving, and mistrust to mankind. In contrast to our adherence to a philosophy of common sonship, of human dignity, and of moral law, millions now live in an environment permeated with a philosophy which denies the existence of God. That doctrine insists that any means justifies the end sought by the rulers of the state, calls Christianity the "sigh of the oppressed," and, in short, seeks to return mankind to the age-old fatalistic concept of the omnipotent state and omnipotent fate. You of Brazil and we of my country do not say that this philosophy shall not be held; that peoples may not return to that unenlightened sys. tem of tyranny, if they so wish. We would feel a great sorrow for them, but we would respect their right to choose such a system. Here is the key to our policy-the right to choose. Human beings everywhere, simply as an inalienable right of birth, should have freedom to choose their guiding philosophy, their form of government, their methods of progress. But we-you of Brazil and we of the United States-would consider it intervention in the internal affairs of an American State if any power, whether by invasion, coercion, or subversion, succeeded in denying freedom of choice to the people of any of our sister Republics. To work throughout the world for a guaranteed peace, free of all outside interference, and for rising levels of human well-being, in justice and in freedom-this is the greatest of the responsibilities which you of Brazil and we of the United States now share. It is to confer with your distinguished President and his colleagues about these bilateral but hemispheric and global problems that I am making my brief trip to Brazil and your neighbors in this great Southland. May God cast his grace upon us and guide us in this noble purpose. Thank you very much. NOTE: The President spoke at 4:38 p.m. 9, i958, following the exchange of mesat the Tiradentes Palace in Rio de Ja- sages between Presidents Eisenhower and neiro. His opening words "Mr. Presi- Kubitschek in May and June of that year dent" referred to Vice President Joao (see 1958 volume, this series, Item 133). Goulart. The memorandum of August 9, 1958, is Operation Pan America was proposed published in Operacion Panamericana, by Brazil in a memorandum dated August Compilacion de Documentos II (Presi220 Dwight D. Eisenhower, 1960 e1 50 dencia de la Repulblica, Servicio de Docu- the Special Committee of the Council of mentacion, Rio de Janeiro, 1958). the Organization of American States to The Committee of Nine, to which the Study the Formulation of New Measures President referred, is a subcommittee of for Economic Cooperation (Committee of 2I). 50 ei Remarks to the Members of the Supreme Court of Brazil. February 24, I960 Mr. Chief Justice, Justices of the Supreme Court of the United States of Brazil, and my Brazilian friends: I have been privileged to call upon the President of the Brazilian Republic. I have just completed a meeting with the legislative body of this great country. Now it is my great privilege and honor to pay a call upon the third branch-equal branch of equal status in the Brazilian Government. To have been invited once before this august body was in itself a great privilege and an honor. To have been invited back again, Mr. Chief Justice, is an honor that I consider almost unique. It is my simple concept that the Supreme Court in a Federal Republic exists to make certain that the rule of law will flourish and will not be weakened by any processes that are not approved by the constitution and as interpreted by that Supreme Court. In my country, the Supreme Court has attained a position in the minds of the average citizen of grandeur, almost of veneration. I have been examining the history of your Supreme Court. I see the parallels, between its formation and its history, with our own. I know from the picture you have in the window that you give the same respect to the memory of John Marshall that we do. I have also heard of a great jurist of yours named Luis Barbosa who in your country and in his term took the same occasion as did John Marshall to assert the right, the absolute unchallenged right of the Supreme Court to place interpretation upon any law, and to determine whether or not it was in consonance with the Constitution. Clothed with this kind of responsibility and with this kind of authority, the Supreme Court stands as a true guardian of justice for the individual. And I submit that the reason for republican or democratic government is to protect the individual in his rights which we-you and ourselves 22I Public Papers of the Presidents believe are his, because of the fact of his creation, because he has been created in the image of his God. I can see, therefore, that the decisions of such a body as this, its opinions, are more than mere decisions for application in a particular case and to make certain that the rights of a particular citizen have been protected, or that the law has not been allowed to go astray in its application in some other branch of the government. It is more important-the court is more important than merely to do this. As I see it, the court is also a teacher. Because the real strength of democracy is in the hearts and minds and the understandings of people, not merely the august members of this great body. In my country, and I think it is possibly true in yours, a man who has been honored by being given a chair in this body is thereby removed from partisan politics. Partisan politicians do much to inform our public. Sometimes they merely try to influence. As I see it, the man now in this kind of position, with this authority, with this opportunity to study without bias, cannot merely influence, he can inform. And I say that in all forms of free government the only final force, the only final authority, is public opinion. And if it be informed public opinion, then in truth democracy is truly working. If the rule of law is to be substituted for the rule of the sword, if persuasion is to take the place of fighting on the battlefield, then the kind of public opinion that I speak of must be strong in all free nations. And so I salute this body for the opportunity that belongs to each of you, because as a group we know that, just like in my own country, this institution is venerated. Your words carry weight. And your words will be heeded. Consequently, when you say we must substitute the rule of law for force, all will heed, all will help-which is all important. So, Mr. Chief Justice, and Justices of the Supreme Court of Brazil, I come here to pay my respects, but those words are merely formalities by themselves. My visit has a far deeper meaning to me than mere formality. I do want to pay my respects to this court and to its functions, and what I think it can and will do in helping Brazil toward the destiny that is certain to belong to that nation as long as it lives in the institutions of freedom and pushes forward on the course that it is now pursuing. Thank you very much indeed. NOTE: The President spoke in the Federal Rio de Janeiro. His opening words "Mr. Room of the Supreme Court building at Chief Justice" referred to Chief Justice Luiz Galloti. 222 Dwight D. Eisenhower, g960 5' I 1 Toast by the President at a Dinner Given in His Honor by President Kubitschek in Rio de Janeiro. February 24, I960 Mr. President, Madame Kubitschek, distinguished guests, and friends: First, Mr. President, may I thank you sincerely for the generosity of your remarks about my country and about me, and for your generous hospitality toward me and to my party. I deeply regret that my wife could not be here to participate in this most gracious ceremony in which you and your lovely wife are the host and hostess. I think the reasons that she could not come are known, but I assure you her regret is very deep. Mr. President, this afternoon, in meeting with the assembled Congress of the United States of Brazil, I tried to outline the convictions that I hold as to the common role that your country and mine have in the attempt to better the standards of living for all peoples, in order that democracy and the freedom, of which you so eloquently speak, can be thereby strengthened. On this trip with me, as you know, are Secretary Herter, Assistant Secretary Rubottom, and the citizen members of the new United States Advisory Committee on Inter-American Affairs. The fact that these gentlemen are accompanying me symbolizes the high importance we of my country attach to good relations with all the nations of Latin America. I know that what we are all learning here, and shall observe throughout this trip, will be helpful to us as we seek constantly to work for hemispheric solidarity. I should say, Mr. President, that the strong feelings I felt about the need for cooperation, which were the feelings that led me to make this trip, have been emphasized and greatly strengthened by the meetings I have held with you and with your associates during the past hours that I have been able to spend in your great nation. The friendly relations of our two countries-now stronger and more meaningful than ever before-have an inspiring history. The beautiful home of the Brazilian Foreign Ministry reminds one of thrilling diplomatic traditions. Here I should like to say if I mispronounce names, it's because of my ignorance and not because of any intent. Itamaraty is symbolic of the 223 q( 5I Public Papers of the Presidents principles enunciated by Baron do Rio Branco, a great hero to us, as to you. Here worked such dedicated statesmen as Joaquim Nabuco and Afranio de Malo France, who stood resolutely for the abiding friendship of our two countries. And here labored Oswaldo Aranha, a firm friend, whose recent passing is deeply mourned in the United States. I raise my glass in tribute to all who have in these halls worked so patiently and gloriously for the principles of freedom, independence, and abiding cooperation-and to you, President Kubitschek, both for your deeds of friendship and for your staunch support of inter-American solidarity. Ladies and gentlemen: the President! NOTE: The President proposed the toast at a dinner at the Itamaraty, the Foreign Ministry in Rio de Janeiro. 52 4J Remarks Upon Arrival at Congonhas Airport, Sao Paulo, Brazil. February 25, 1960 Mr. President, Governor Carvalho Pinto, Mayor de Barros, citizens of Sao Paulo: Yesterday I referred to a rumor I have often heard-that Sa-o Paulo is the fastest growing city in the world-center of Brazilian commerce and industry. Certainly it is a sincere personal pleasure to have this opportunity today to witness firsthand the mighty achievements of this fabulous community. In addition to seeing evidence of Brazil's remarkable economic and industrial growth, I have another very special and, to me, deeply moving, mission to perform in your city. Later today, I shall have the honor of paying homage to those brave soldiers of Brazil who were my comradesin-arms during World War II. My nation-and all free nations-have reason to remember with gratitude Brazil's partnership in two World Wars. You made your bases available for our common cause-bases which were truly springboards to victory. On land, sea, and air, Brazilian cooperation was of inestimable value in defeating our enemies and preserving a way of life we cherish. Gallant Brazilian blood, shed with ours, must ever remind us of our solemn, common covenant to preserve the peace, with justice and freedom for all. 224 Dwight D. Eisenhower, ig960 I thank all of you for the warmth and cordiality of your welcome, Governor and Mr. Mayor. It is a real privilege to be here. NOTE: The President spoke at 9:45 a.m. President of the Legislative Assembly, He was met by Governor Carlos Alberto Dsembargador Joao Marcelino Gonzaga, Carvalho Pinto, Mayor Adhemar de Bar- President of the Court of Justice, and ros, Dr. Potado Rus de Mello Juqueira, other officials. 53 eT Address by the Presidentat a Luncheon Given in His Honor in Sao Paulo. February 25, 1960 Mr. President, Governor Carvalho Pinto, and other Governors here present, ladies and gentlemen: I am deeply grateful for the generous welcome my associates and I have received in Sao Paulo. And I must personally express to you my deep gratitude for the warmth of the welcome with which you have greeted me in this hall. This is my first visit to your great city, the industrial heart of Brazil. Here in your factories and workshops, much of the economic future of Brazil is being forged. It is indeed a privilege to meet personally so many leaders of Sao Paulo's progressive government, industry, and agriculture. I do not wonder, as I look around me and see what Paulista energy and intiative have achieved, that you take pride in your city and state, and especially in the fact that in this area great opportunities exist for men of energy, talent, and initiative to carve for themselves important places in the life of the nation. This country, like my own, provides opportunities to all, however humble their origins and whatever the circumstances of their birth. Opportunity, without discrimination-this is one vital aspect of democracy both in Brazil and the United States. The humblest may become the highest-through his own efforts. Our societies are designed to permit everyone to pursue family welfare and happiness in liberty, and also to promote the well-being of all, not just a few, of the people. We believe fervently that no one should be denied the chance for or the fruits of self-betterment because of his race, his religion, sex, class, or 225 Public Papers of the Presidents political beliefs. In short, in both our countries we make the concept of the dignity of the individual a living reality, knowing that, given a chance, each person is capable of running his affairs with wisdom, dedication, and due respect for the rights of others. At this point in history, our countries may differ in economic development, but this difference can and will disappear, for Brazil is on the march. It is today a universal Brazilian aspiration to develop the country's resources, to extend the blessings of education to all, to realize the nation's immense potentialities. Let me say to you most earnestly that we pray for your success. And we rejoice in your progress not only because you and we are friends but also because we know that the progress of Brazil and of all the nations which aspire to develop rapidly will make a happier and more peaceful world for everyone. Three hundred years ago there was little but forbidding wilderness in the United States of America. Great natural resources existed, as they exist in Brazil. But there were no houses, transportation facilities, utilities, factories, institutions of learning and culture. A hundred years ago half our people were engaged in agriculture; industry was beginning to expand. Even 6o years ago there was not a single industrial research laboratory in the United States. Today we have a mature, highly diversified economy. This has been obtained by the hard work and frugal management of the American people. And of course we are proud of what we have accomplished. But we take even greater satisfaction in the means we have employed. All our progress has been protective of personal freedom, political freedom, economic freedom-in my judgment, inseparable elements of true liberty. Other nations have amassed wealth. However, in no nation, ancient or modern, totalitarian or free, have the rights of the individual been more zealously safeguarded. Sheer material wealth can of course be accumulated, and scientific miracles can be achieved, by authoritarian methods. But let us not be misled by the boasts that fill the air. The production of goods-either capital or consumer goods-is not an end in itself, nor is it a sound criterion for judging economic and governmental systems. Production is only one element in the human enterprise on this earth. You and I believe that each of us is an inviolable spiritual entity, capable of reaching the heights of creative thought. Each is endowed with the right to build social and cultural institutions compatible with our finest instincts, and more deeply devoted to the protection of human dignity and to love of 226 Dwight D. Eisenhower, 1960 God than to the mere acquisition of material things. We see then that production, to be praiseworthy, must serve these nobler ends. Faced with no other choice, you and we in the United States would choose poverty in freedom, rather than prosperity in slavery. But of course we need make no such choice, for freedom in the long run yields also the most productive economic system ever devised by man. The reason for this is simple. Every human being is capable of greatness. Given opportunity and responsibility, he will reach the heights. Controlled man may become an efficient automaton, but with the limitations and the joylessness of men in lock-step parade. The proponents of Marxism-Leninism seek to belittle the American system. They speak of the "exploited masses." Certainly anyone who has studied history knows that capitalism, in its early stages, was often exploitative. But it is ridiculous to pretend that conditions of the i8th and early i9th centuries exist today in the economic life of the United States. Our socially-conscious private-enterprise system benefits all the people, owners and workers alike. It has resulted in high productivity, high consumption, high wages, and reasonable returns on investment. Balanced progress is our watchword. Sao Paulo is, I think it can fairly be said, the outstanding example of Brazilian private initiative and of Brazilian balance in development. Here is a concentration of factories which produce much of what all Brazil consumes. You are now helping to provide the means by which the remainder of Brazil will similarly progress. And the rewards of your production are indeed exciting. In freedom the Brazilian worker is happily demonstrating the joys of life under a democratic system. He knows that you do not consider the accumulation of wealth to be the privilege of a few-rather that the true aim of production is to contribute to the greater well-being of the many. I wish that all the world could see what I have seen today in this city-a demonstration that a dynamic economy, based on private enterprise and free labor, redounds to the benefit of the worker, the consumer, the public at large and the state which embodies their sovereign will. I am sure that your workers, as ours in the United States, have attained positions of influence, honor, and prestige. Surely the old concept of "the exploited masses" deserves to be discarded, along with the idea of state omnipotence and the divine right of kings. 227 Public Papers of the Presidents I take real pleasure in noting the modest but significant contributions which United States capital has made to the prosperity of Sao Paulo and Brazil. It cannot be coincidence that this area, in which foreign capital is most heavily concentrated, is also the most prosperous in Brazil. We too benefited much from foreign capital in the period of our development. Late in the i gth century, foreign investments in the United States were as large as those in Brazil today. In fact, I think if we should take the price of today's dollars, the investments that then were made in our country were many times the amount that I am just speaking of. But at that time the revenue of our national government was only one-third as great as yours is now. The contributions of United States private enterprise to Brazilian development are matched in other fields. We have sought to express our friendship and our interest in your development through loans of the Export-Import Bank and other public lending institutions, through our Point IV work, the re-loaned funds derived from the sale of agricultural surpluses, our support of the international coffee pact, grants by our private foundations, and through the backing we have given President Kubitschek's imaginative Operation Pan America proposal. Within our financial and economic capacity, we shall continue to support Brazilian development. In view of the modest part we have had in your growth, it is, then, the more heartening to see the mighty contributions which Sao Paulo is making to the majestic future of our traditional friend and ally, the United States of Brazil. And in closing, I should like to repeat the sense of the quotation that the Governor took from Thomas Jefferson, the United States wants to march forward as a true partner and brother to Brazil, as we seek earnestly toward that brightest goal of all mankind: peace with justice. I thank you. Thank you again. NOTE: The President spoke at 2:30 p.m. Federation of Rural Associations of Sao at the Fasano Restaurant. He was joined Paulo. Antonio de Visale, President of by President Kubitschek at the luncheon, the Sao Paulo Federation of Industries, which was given by the Industrial Associa- introduced President Eisenhower. tion, the Commercial Association, and the 228 Dwight D. Eisenhower, 1960 54 4I Remarks at the Airport in Sao Paulo Upon Leaving for Rio de Janeiro. February 25, I960 Mr. President, Governor, and citizens of Sao Paulo: As I say a friendly farewell to the leaders and people of Sao Paulo, I want to express my warm thanks for the cordial welcome and the many courtesies which have been extended to my associates and me during our short stay here. I was greatly impressed by what I was able to see of your magnificent city during the day. Sao Paulo, leader in Brazilian commerce and industry, is surely characterized by energy, growth, and the spirit of progress. You receive here each year vast quantities of goods, especially capital goods, from the United States, and of course you ship a tremendous volume of products, especially coffee, to the United States. The two-way trade of the United States and Brazil has long been of high importance to both countries. We are your major consumer; you a major customer of ours. I am glad to have learned in my conversations here today that there is a minimum of friction in these trade matters. And this is good news. I might point out that we of the United States are the most insatiable coffee drinkers in the world-indeed, we buy nearly 6o percent of your coffee exports. And I doubt that you would have a surplus here if you drank as much coffee as we do. On leaving Sao Paulo, I want to say how happy I am to have met Governor Carvalho Pinto, the state and municipal authorities, and to have been privileged to make a personal visit to this tremendous city. Thank you again, sincerely, for your cordiality, your kindness, and your hospitality. NOTE: The President's opening words Kubitschek who accompanied him on the "Mr. President" referred to President return flight to Rio de Janeiro. 55 e4 Statement by the President Upon Leaving Brazil. February 26, i960 I MUST NOW say farewell to the leaders and people of this vast and beautiful country. I do so with a full heart weighed down by the tragic 229 qt 55 Public Papers of the Presidents accident which cost the lives of Brazilians and Americans yesterday. I wish, nevertheless, on leaving Brazil to express my deep gratitude for the magnitude of the reception accorded me and my associates since our arrival among you only a few days ago. I am beginning to understand that sentiment which you Brazilians describe so poignantly with the word saudade. I interpret the cordiality of your greeting as evidence of Brazilian friendship for my countrymen. I assure you that this friendship is earnestly reciprocated. I saw your sparkling new capital at Brasilia-a symbol of Brazilian progress. In Sao Paulo I saw firsthand the phenomenal development which forecasts Brazil's emergence as one of the world's new industrial giants. And here in your present capital of Rio de Janeiro old memories of unsurpassed scenic beauty and traditional Carioca hospitality have been rekindled. During the past few days my associates and I have had an opportunity to talk with your distinguished President and other leaders of your country. All of us hope and believe that these conversations will enable us to understand better not only Brazilian aspirations but also how our collaboration can become more effective to our mutual benefit. As I proceed on this trip, I feel that a significant beginning in fulfilling its purpose has been made here. My desire, in the countries I am visiting, is to emphasize the importance we of the United States attach to hemispheric solidarity; to seek ways in which cooperation among the Americas may be even more fruitful, and to proclaim here as I have repeatedly done in other areas the supreme desire of the United States to do all it can to help bring about peace with justice, in freedom, to all humankind. For your friendship and your many kindnesses, I thank you, and now, goodbye. NOTE: The President left from Galeao over Guanabara Bay. The Navy transAirport, Rio de Janeiro, at 8 p.m. port plane was carrying U.S. Navy bandsIn the opening paragraph the President men and members of an anti-submarine referred to the collision of a U.S. Navy team. transport plane with a Brazilian airliner The statement was released in Rio de Janeiro. 230 Dwight D. Eisenhower, 1960 56 (I Remarks UponArrival at EzeizaAirport, Buenos Aires. February 26, 1960 Mr. President, Your Excellencies, ladies and gentlemen: With genuine pleasure and satisfaction, I greet you in friendship as I begin my visit in the Republic of Argentina. My pleasure is in realizing a long-cherished wish to view this beautiful land, and in returning officially the visit which your President and Mrs. Frondizi graciously made to my country. My satisfaction derives from the knowledge that our commitment to common aspirations provides one stone in the structure of world peace. I am especially happy that my visit occurs during the 15oth anniversary of your nation's valiant fight for freedom. With pride in our own long adherence to the democratic vision, we of my country salute you, and welcome this opportunity to join our voices joyously with yours in your meaningful celebration. I bring all of you the heartfelt good wishes of the Government and the people of the United States of America. In the few days we shall be here among you, we hope to meet many of you personally, to enjoy the grandeur of your world-famed capital, to visit several other of your beautiful cities, and, at least from the air, to obtain a panoramic perspective of your vast and noble country. Al gran pueblo Argentino, Salud! NOTE: The President spoke at I a.m. Foreign Minister Diogenes Toboada, and He was met by President Arturo Frondizi, U.S. Ambassador Willard L. Beaulac. 57 e Remarks at the U.S. Embassy Residence in Buenos Aires Upon Receiving the Key to the City. February 26, 1960 I AM DEEPLY HONORED not only for the presentation of this key, symbolic of the friendly spirit of your country for the United States, but for the generosity of the terms in which your Mayor has described the ideals and democratic aspirations that bind his country with mine. If I may be personal, I should like to tell you a bit of a story. Fortyfive years ago now, I was just preparing to graduate from West Point 231 222 wanted to negotiate honestly always, having in mind the basic problem of the reunification of Germany. Now, that was all that was-that I remember of a substantive concession made by him and certainly we didn't make any, because we didn't have any to make. Q. Charles W. Roberts, Newsweek: Sir, in the past, you have praised Governor Rockefeller as a good Republican. Has your view of him changed, or do you still consider him qualified for a place on the Republican ticket? THE PRESIDENT. Well, I don't know what I've said-I've said this: I've had a good number of years of experience with Nelson Rockefeller, and I have found him a dedicated, honest, hard-working man, and that's what I still think about him. Now this doesn't mean that I necessarily agree with all the conclusions that he has made in a number of fields. Q. Roscoe Drummond, New York Herald Tribune: Mr. President, I would like to return to an earlier question and ask whether you feel, in view of the great uncertainty of foreign developments, after the election there should be close and recurring personal consultation between you and the incoming President regardless of who is elected? THE PRESIDENT. Well, I don't feel-after all, just like it takes two to make a fight, it takes two to make an agreement. And assuming that any individual wants this kind of consultation, he will certainly find me quite ready and willing. Now, I would say this: in my own case, I found that to get into the documents, the budgets that were being proposed at that time-you see, I have to make up a '62 budget and propose it; I have to make up a State of the Union Message, and a whole-recommendations, including those about my convictions about the necessary reorganization of Government and all that. Now, we do have those documents which I think would do him more good than too many-just talks. But he will always be welcome to come in, I assure you. Q. Kenneth M. Scheibel, Gannett Newspapers: Mr. President, in view of the recent election in North Dakota, do you think the Republican Party ought to adopt a new farm program, or some new policies? THE PRESIDENT. I don't think any general policies. I will say this: right now I think it would be very good for the farmers, to take this onethis troublesome wheat thing-and pass the bill that the Senate did pass 56i (I 222 Public Papers of the Presidents and sent over to the House. It has not been passed yet, and I think it would be a very great thing for them. Actually, we talk about the farm problem like there is just one. There are as many farm problems as there are commodities, as there are different localities in this country, and it is a real mishmash of problems. And there is nobody that I know of that is ever going to cure it completely by governmental action. And anyone that believes that either the economic or the general economic or, more specifically, the farm problems are going to be cured completely by legislation is fooling himself. That's all there is to it. Marvin L. Arrowsmith, Associated Press: Thank you, Mr. President. NOTE: President Eisenhower's one hun- ing from I0: 3I to II: 02 o'clock on dred and eighty-sixth news conference Wednesday morning, July 6, 1960. In atwas held in the Executive Office Build- tendance: 215. 223 tf Statement by the President Upon Signing Bill and Proclamation Relating to the Cuban Sugar Quota. July 6, i960 I HAVE today approved legislation enacted by the Congress which authorizes the President to determine Cuba's sugar quota for the balance of calendar year i960 and for the three-month period ending March 3V, i96i. In conformity with this legislation I have signed a proclamation which, in the national interest, establishes the Cuban sugar quota for the balance of i960 at 39,752 short tons, plus the sugar certified for entry prior to July 3, i960. This represents a reduction of 700,000 short tons from the original I 960 Cuban quota of 3,1 I 9,655 short tons. This deficit will be filled by purchases from other free world suppliers. The importance of the United States Government's action relating to sugar quota legislation makes it desirable, I believe, to set forth the reasons which led the Congress to authorize and the Executive to take this action in the national interest. Normally about one-third of our total sugar supply comes from Cuba. Despite every effort on our part to maintain traditionally friendly relations, the Government of Cuba is now following a course which raises serious question as to whether the United States can, in the long-run, continue to rely upon that country for such large quantities of sugar. I 562 Dwight D. Eisenhower, 1960q 41 2 24 believe that we would fail in our obligation to our people if we did not take steps to reduce our reliance for a major food product upon a nation which has embarked upon a deliberate policy of hostility toward the United States. The Government of Cuba has committed itself to purchase substantial quantities of goods from the Soviet Union under barter arrangements. It has chosen to undertake to pay for these goods with sugar-traded at prices well below those which it has obtained in the United States. The inescapable conclusion is that Cuba has embarked on a course of action to commit steadily increasing amounts of its sugar crop to trade with the Communist bloc, thus making its future ability to fill the sugar needs of the United States ever more uncertain. It has been with the most genuine regret that this Government has been compelled to alter the heretofore mutually beneficial sugar trade between the United States and Cuba. Under the system which has existed up to this time, the people of Cuba, particularly those who labor in the cane fields and in the mills, have benefited from the maintenance of an assured market in the United States, where Cuban sugar commands a price well above that which could be obtained in the world market. These benefits also reached many others whose livelihood was related to the sugar industry on the island. The American people will always maintain their friendly feelings for the people of Cuba. We look forward to the day when the Cuban Government will once again allow this friendship to be fully expressed in the relations between our two countries. NOTE: The act (Sugar Act Amend- tion of Cuban Sugar Quota" is published ments) is Public Law 86-592 (74 Stat. in the Federal Register (25 F.R. 6414). 330). Proclamation 3355 "Determina- See also Item 373. 224 4I Memorandum of Disapproval of Bill for Relief of Juan D. Quintos and Others. uly 7, i960 [ Released July 7, I 960. Dated July 6, I 960] I AM withholding my approval from H.R. I5i6, "For the relief of Juan D. Quintos, Jaime Hernandez, Delfin Buencamino, Soledad Gomez, 563 60295-61 39 (I 224 Public Papers of the Presidents Nieves G. Argonza, Felididad G. Sarayba, Carmen Vda de Gomez, Perfecta B. Quintos, and Bienvenida San Agustin." The bill would waive the applicable statute of limitations and confer jurisdiction upon the Court of Claims to hear the claims of these individuals for losses of jewelry, coins, relics, and currency which were somehow included in one of four large wooden boxes delivered to the United States High Commissioner to the Philippines by the Philippine National Bank in response to the Commissioner's direction, in December 1941, that the bank deliver to him "all cash reserves, bullion, negotiable securities, and other negotiable papers held by your bank, or held by you in trust for others." The purpose of the directive was to prevent such items from falling into the hands of the enemy who, at that moment, was invading the islands. When the property of these claimants was discovered, it was turned over to a representative of the Philippine government, who rejected suggestions of United States Army officers that it be sent out on an American submarine. Instead, he voluntarily placed the property in a safe at Corregidor where it was confiscated by the Japanese. From these facts it is apparent that the possibility of a valid claim against the United States is very remote. More importantly, these claimants had ample opportunity to present their claims in a timely manner. Under the applicable statute of limitations, they had until December I947-two years after the end of the war-to file suit in the Court of Claims. They had five months after the Treasury Department, on July 25, I947, advised that there was no statute or appropriation permitting the administrative settlement of such claims. They waited, however, for four years, until I95I, before petitioning the Court of Claims. Nothing in the record justifies special treatment for these claimants, particularly when it is remembered that many others filed suit against the United States in the Court of Claims for damages arising out of incidents in the Philippines during the war years and had their cases dismissed because of the expiration of the statute of limitations. DWIGHT D. EISENHOWER 564 Dwight D. Eisenhower, 1960 (I 225 225!i Memorandum of Disapproval of Bill To Provide for the Economic Regulation of the Alaska Railroad Under the Interstate Commerce Act. July 7, i960 [ Released July 7, i960. Dated July 6, i960] I AM withholding my approval from S. 1508, a bill "To provide for economic regulation of the Alaska Railroad under the Interstate Commerce Act, and for other purposes." I cannot approve the bill because it would ( i ) subordinate certain of the President's statutory powers to those of a regulatory commission, (2) allow a State to regulate a Federal agency, and (3) apply to the Alaska Railroad laws, rules, and procedures which are intended solely for application to privately owned and operated railroads and which are completely inappropriate for a Government agency established to carry out a public purpose. The power to construct and operate the Alaska Railroad and to set the rates charged by it are vested in the President. To subject the President's exercise of these powers to the review and perhaps disapproval of the Interstate Commerce Commission would be repugnant to our constitutional system. By allowing the State of Alaska to regulate the Railroad, which is a Federal agency, the bill violates the principle that the Federal Government's authority shall be supreme. Under S. I508, the State could thwart public purposes declared by the President and the Congress, but it would have no responsibility for the success or for the financing of the Railroad. The laws, rules, standards, and procedures concerning tariffs, rates, accounts, services, and employees of private railroads are not suited to a Government agency. Accounting standards established by the Interstate Commerce Commission for private railroads cannot, for example, assure the President and the Congress of adequate control over the use of Federal funds by a Federal agency. In requiring the Commission to consider the needs of Government financial agencies, and in other exceptions it makes, the bill itself recognizes that standards applied to private industry cannot be applied to the Alaska Railroad. 563 q 225 Public Papers of the Presidents By extending the Employers' Liability Act to cover the Alaska Railroad's liability to its employees, who are already covered by the Federal Employees' Compensation Act, the bill may give this group of federal employees either dual compensation from the Federal Government for a single injury or the right to choose between two methods of obtaining compensation. Either result would be inconsistent with the federal workmen's compensation policy that all employees be treated equally. The President and the Congress have ample authority to insure that the Railroad operates in the public interest. In due course, it will be determined that the Railroad's federal purposes have been achieved. At that time the Congress should authorize disposition of the Railroad to a non-Federal agency, and it would then automatically become subject to Interstate Commerce Commission regulation. DWIGHT D. EISENHOWER 226 ~l Memorandum of Disapproval of Bill for Relief of Sam J. Buzzanca. Yuly 7, 1960 I AM withholding my approval from H.R. 6712, a bill "For the relief of Sam J. Buzzanca." Mr. Buzzanca, at a Federal tax sale in I954, purchased certain real estate which had an estimated market value of $2I,ooo, but which was subject to a mortgage prior in time to the Federal tax lien. It was announced at the tax sale that principal and interest in the amount of $8,320 was due under this prior mortgage. The real estate was sold to Mr. Buzzanca for $8,Ioo-far less than the amount of the Federal tax lien which exceeded the market value of the property. Two months later the holder of the first mortgage, who also had acquired whatever rights the heirs of the delinquent taxpayer and former owner had in the property, successfully sued Mr. Buzzanca to obtain possession of the property. Although the United States was not a party to this action, the District Director for the area did render informal assistance to Mr. Buzzanca. On appeal, the Supreme Court of Alabama affirmed. Mr. Buzzanca's claim for relief appears to rest on the contention that the first mortgagee obtained a judgment for possession of the property because the tax sale to Mr. Buzzanca was defective and did not convey to Mr. Buzzanca the former owner's interest. 566 Dwight D. Eisenhower, 19602 eI 2 27 Internal Revenue Service records reveal no defect in the seizure and sale. This being so, Mr. Buzzanca has no ground for complaint against the United States. Because the existence of the first mortgage was made known at the time, the tax sale did not purport to convey rights superior to a valid first mortgage. The United States cannot and does not attempt to warrant or defend title to property seized and sold under the internal revenue laws. No warranty is available to a purchaser at a tax sale and a deed is not a warranty of the title conveyed. The right, title, and interest conveyed is derivative, and the purchaser acquires only the interest of the delinquent taxpayer. To compel the United States to warrant and defend the title to all property sold by it for taxes would be costly and inadvisable. For these reasons I cannot, on the facts at hand, approve this bill for it would create a precedent that would encourage dissatisfied purchasers at Federal tax sales to ask Congress to underwrite their losses and guarantee their titles. Were Mr. Buzzanca, however, to adduce direct evidence establishing incontrovertibly that the tax deed in question was defective, I would of course be willing to sign a similar bill subsequently enacted. DWIGHT D. EISENHOWER 2 27 tI Statement by the President Concerning Premier Khrushchev's Announcement of Support for the Castro Regime in Cuba. July 9, I 960 THE STATEMENT which has just been made by Mr. Khrushchev in which he promises full support to the Castro regime in Cuba is revealing in two respects. It underscores the close ties that have developed between the Soviet and Cuban governments. It also shows the clear intention to establish Cuba in a role serving Soviet purposes in this hemisphere. The statement of the Soviet Premier reflects the effort of an outside nation and of international Communism to intervene in the affairs of the Western Hemisphere. There is irony in Mr. Khrushchev's portrayal of the Soviet Union as the protector of the independence of an American 567 (e 227 Public Papers of the Presidents nation when viewed against the history of the enslavement of countless other peoples by Soviet imperialism. The Inter-American system has declared itself, on more than one occasion, beginning with the Rio Treaty, as opposed to any such interference. We are committed to uphold those agreements. I affirm in the most emphatic terms that the United States will not be deterred from its responsibilities by the threats Mr. Khrushchev is making. Nor will the United States, in conformity with its treaty obligations, permit the establishment of a regime dominated by international Communism in the Western Hemisphere. NOTE: Mr. Khrushchev's statement was Soviet Federal Socialist Republic. made in Moscow on July 9 in an address The President's statement was released to a group of teachers from the Russian at the U.S. Naval Base, Newport, R.I. 228 (f The President's News Conference at Newport, Rhode Island. July I I, i960 THE PRESIDENT [reading]. During my trip to South America in February and in numerous talks in Washington, I have obtained the views of leading Latin American statesmen on the problems which their countries and the area in general now face. They have told me of the aspirations and needs of their peoples for homes and land and a better life, and of their efforts to meet those needs. I know that other leaders in the Americas are thinking and working along similar lines. I have given a good deal of thought to how the United States might do more in helping these efforts. The National Advisory Committee on Inter-American Affairs, which I appointed last year to advise the Secretary of State and myself on matters of hemispheric concern, has given us the benefit of its knowledge and experience. II. Within the Organization of American States, joint action is underway. The Council of that Organization, on the initiative of Venezuela, voted three days ago to call a meeting of their Foreign Ministers to consider matters of extreme gravity in the Caribbean area-matters that involve a challenge to the ideals and purposes of the American community. The United States supported this move. 568 Dwight D. Eisenhower, g960 (I 228 In September, the economic representatives of the twenty-one American Republics will convene in Bogota, Colombia, to consider an equally important component of our hemispheric future-the problem of social reform and economic growth. This problem is embraced within a joint hemispheric concept known as Operation Pan-America-a concept initially suggested by President Kubitschek of Brazil. This will be further developed at Bogota.l These two meetings will give the United States opportunities for frank consultations with our sister republics on measures to advance the political, economic, and social welfare of the peoples of the Americas. III. I believe it would be well for me to state the basic ideas which will guide the United States' participation in these forthcoming meetings. First, widespread social progress and economic growth benefiting all the people and achieved within a framework of free institutions are the imperatives of our time. Second, our nation's history and traditions place us in accord with those who seek to fulfill the promise of the future through methods consistent with the dignity of free men. Our interests and sympathies are with them. Third, a new affirmation of purpose is called for in our cooperation with friendly developing countries in their efforts to progress. In the Americas as elsewhere change is the law of life, and the interests of the people will be better served if that change is effected constructively and peacefully, not violently. Clearly, the aspirations and needs of the peoples of the Americas for free institutions and a better way of life must be met. Our desire is to help the American nations to meet their own responsibilities-to help them develop their institutional and human resources, to strengthen the framework of freedom, to protect individual dignity, and to gain a better life for those who are underprivileged, underemployed and undereducated. Latin America is passing through a social and political transformation. Dictatorships are falling by the wayside. 1 A statement released July 8 by the Press Secretary to the President noted that the President had been working with the Department of State for some time on a comprehensive plan to be submitted to the meeting at Bogota "in the hope of making more effective our mutual cooperative work in raising the living and social standards of our respective populations." "The plan," the statement further noted, "will deal particularly with methods for making United States participation more effective." 569 (I 228 Public Papers of the Presidents Moderate groups, seeking orderly reform, are contesting with dictators of both right and left who favor violence and authoritarianism. Many of the extremists frequently endeavor to introduce dogmas which are inimical to the traditions of the Western Hemisphere. Indeed, the Foreign Ministers of the American Republics met last August in Santiago, Chile, to consider the problems caused by the blatant intervention of certain extremists in their neighbors' affairs. The interests of the United States no less than those of all the Americas are directly involved in this struggle, a threat to the security of the hemisphere. It is imperative that institutions be developed and strengthened sufficiently to permit the peoples' needs to be met through orderly processes of change. A renewed hemispheric determination to preserve principles of liberty and the dignity of man is needed. There is also an urgent need for a broader and more vigorous cooperative attack by all American governments and peoples if adequate economic progress with freedom, is to be achieved. IV. Among the specific needs which it seems to me must be met through cooperative action are: First, we need to consider with the other American Republics practicable ways in which developing countries can make faster progress in meeting their own needs and ways in which their friends can most effectively cooperate with them. A better knowledge and mobilization of resources, their more effective use, and the improvement of legal and institutional means for promoting economic growth are among the subjects which require special consideration. I have in mind the opening of new areas of arable land for settlement and productive use. I have in mind better land utilization, within a system which provides opportunities for free, self-reliant men to own land, without violating the rights of others. I have in mind housing with emphasis, where appropriate, on individual ownership of small homes. And I have in mind other essential minimums for decent living in both urban and rural environments. Second, in our common efforts towards these goals more attention needs to be given, in a manner which respects the dignity and rights of all, to improving the opportunities of the bulk of the population to share in and contribute to an expanding national product. Soundly based 570 Dwight D. Eisenhower, 1960 (f 2 28 economic and social progress in any of our countries is of benefit to all. Each nation must of course resolve its own social problems in its own way and without the imposition of alien dogmas. Third, within this framework we need to consider whether there are better ways to accelerate the trend which is already evident toward greater respect for human rights and democratic government based on the will of the people as expressed in free and periodic elections. The United States with its tradition of democracy is opposed to tyranny in any formwhether of the left or of the right. V. Each period in history brings its call for supreme human effort. At times in the past it took the form of war. Today it takes the form of social evolution or revolution. The United States will not, cannot stand aloof. We must help find constructive means for the under-privileged masses of mankind to work their way toward a better life. Indeed, so far as this Hemisphere is concerned, every American nation must cooperate in this mighty endeavor. Even the poorest nation can contribute its spiritual and intellectual strength. The important consideration is that every member of the American family of nations should feel responsible for promoting the welfare of all. I have requested the Secretary of State to take the lead in conferring with our Latin American friends on these principles and purposes. Assuming their agreement, he will prepare for my approval as promptly as possible specific recommendations along these lines. I intend to submit a message on this subject to the Congress promptly. I shall seek authority for such additional public funds as we may deem appropriate to assist free men and neighbors in Latin America in cooperative efforts to develop their nations and achieve better lives. [Ends reading] Now, as far as the message itself is concerned, I am ready to entertain two or three questions. Q. Robert C. Pierpoint, CBS News: Mr. President, you mentioned here, I believe, that every American nation must cooperate in this new plan or program. Would that include Cuba, the present Cuban Government? THE PRESIDENT. It would be only those nations who have shown a willingness and a readiness to cooperate with the others in this great 60295-61 40 571 4I 228 Public Papers of the Presidents effort-specifically with ourselves, because we are the ones that are making the statement. Q. Felix Belair, New York Times: Mr. President, is it possible at this time to give any kind of estimate as to the order of magnitude of assistance contemplated, and would the proposed program operate as did the European recovery program with the so-called shopping lists? THE PRESIDENT. No. You are talking about the so-called Marshall plan? Q. Mr. Belair: Yes, sir. THE PRESIDENT. Well, the Marshall plan was to repair and rehabilitate a destroyed industrial plant already existing. This is an entirely different problem, and I think it would be unfair to compare the effort we are now talking about-raising the social and economic standards of the people-with the effort of the Marshall plan. Now, when it comes to terms of magnitude of the sums that would be affected, let us remember this, that I am talking about two meetings still in the future which we are calling with our own friends and which we are examining our own efforts, and it would be impossible to make any kind of even rough guess. But I do want to say this, which I have said so often: the only real investment that is going to flow into countries that will be useful to them in the long term, is private investment. It is many times the amount that can be put in from the public coffers. And normally, the public loans are made so as to encourage and make better opportunities for the private investments that follow. Q. Mr. Belair: Does it follow from what you just said, Mr. President, that no larger expenditure would be made than is now being made? THE PRESIDENT. No. I would think this-I just say this: that in my own opinion, some additional sums would be probably necessary. But there are many ways in which this could be done. For example, all nations could agree to increase the capital and the lending capacity of the American Bank. In other words, I would not think of it just as a great-anything as remotely resembling the Marshall plan. Q. Marvin L. Arrowsmith, Associated Press: Mr. President, I wonder if you would be willing to tell us in what context the current Cuban crisis was considered in your and the Secretary's discussion of this program? We have been told that you were analyzing that situation, too. Is there anything further you can say this morning? 572 Dwight D. Eisenhower, 1960 (t 228 THE PRESIDENT. Well, Marvin, this has been on our minds and thinking and even almost written preparation for some months-ever since I came back from South America-and with my associates and the Presidents of those countries that I met or visited, this Cuban problem was discussed. Very naturally, every day that this thing has been under preparation, there has been discussion of the Cuban problem. But I don't for the moment see any benefit in going further in giving our attitude than was expressed in my statement, I think it was the day before yesterday, in answer to the Khrushchev rather crude threat. And I think that statement speaks for itself. Q. Mr. Arrowsmith: I wonder, you probably have seen that the President of Cuba last night strongly implied that Cuba might demand that we give up the Guantanamo Naval Base. Did you have any discussion of that? Do you have any reaction to that? THE PRESIDENT. Well, I will wait till I hear the demand on that one. Q. Charles W. Roberts, Newsweek: Mr. President, do you have the feeling, or do you have assurances from the other American Republics that they favor going ahead on this regional hemispheric basis rather than appealing to the aid-or accepting aid from powers outside of this hemisphere? THE PRESIDENT. Well, so far as all the countries I have spoken to personally, this particular question has not been placed in specific terms. But the whole attitude and atmosphere of our conversation was, to make a more effective and stronger organization among all the States to work in a cooperative-I mean all the American States-to work in a cooperative basis rather than to go each individually seeking outside help somewhere. Now, if there's any specific difference outside of what we have seen in Cuba, why I think you should ask the question of the State Department, because I am not aware of it. Q. Mr. Roberts: If I might rephrase thatTHE PRESIDENT. Yes. Q. Mr. Roberts: do you feel the other powers are opposed to any aid coming from outside this hemisphere to any country in the Western Hemisphere-such as the aid that Russia has offered to Cuba? THE PRESIDENT. Well, I would-I don't want to speculate on what their general attitude is. I know the very cooperative attitude they have shown to me in conversations with me, and I think it's a question I would 573