Dwight D. Eisenhower: 1954 : containing the public messages, speeches, and statements of the president, January 1 to December 31, 1954.
Eisenhower, Dwight D. (Dwight David), 1890-1969., United States. President (1953-1961 : Eisenhower), United States. Office of the Federal Register.

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Page  III 'by?.J/.. -7, PUBLIC PAPERS OF THE PRESIDENTS OF THE UNITED STATES Dwight D. Eisenhower I 954 Containing the Public Messages, Speeches, and Statements of the President JANUARY I TO DECEMBER 3I, I954 BATES COLLEGE LItBRARY LEWISTON. MAINE GZh n uu - C 0 t - - -

Page  IV PUBLISHED BY THE OFFICE OF THE FEDERAL REGISTER NATIONAL ARCHIVES AND RECORDS SERVICE GENERAL SERVICES ADMINISTRATION U.S. GOVERNMENT PRINTING OFFICE: 1960 For sale by the Superintendent of Documents, U.S. Government Printing Office Washington 25, D.C.- Price $7.25 --— ~ ----_ -~,_1

Page  V 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. V

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Page  VII 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 year I954. A similar volume, covering the year 1957, was published early in 1958 as the first of a series. The President's foreword is reprinted from that volume. Immediate plans for this series call for the publication of annual volumes soon after the close of each new calendar year, and at the same time undertaking the periodic compilation of volumes covering previous years. Volumes covering the years 1954 through 1959 are now available. 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 I 139 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 1896 and I899. It included Presidential materials from 1789 to 1897. 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 and utterances still lacked an official medium for either current VII

Page  VIII Preface 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 calendar year I954 as White House releases and on transcripts of news conferences. Where available, original source materials have been used to protect against substantive errors in transcription. A list of the White House releases from which final selections were made is published at page i i I 9 as "Appendix A." The full text of the President's news conferences is here published for the first time. In 1954 direct quotation of the President's replies to queries usually was not authorized by the White House. 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 II32. The President is required by statute to transmit numerous reports to Congress. Those transmitted during I954 are listed at page I I38 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 sent to Congress during I954 will find them listed in the index under "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 VnI

Page  IX Preface from the release date that fact is shown in brackets immediately following the heading. Other editorial devices, such as text notes, 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. The planning and editorial work for this volume were under the direction of David C. Eberhart of the Office of the Federal Register, assisted by Warren R. Reid and Mildred B. Berry. The index was prepared by Dorothy M. Jacobson. Frank H. Mortimer of the Government Printing Office developed the typography and design. WAYNE C. GROVER Archivist of the United States FRANKLIN FLOETE Administrator of General Services June 22, ig60 51986-60 -2 IX

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Page  XI CONTENTS Page FOREWORD......... V PREFACE......... VII LIST OF ITEMS........ XI PUBLIC PAPERS OF DWIGHT D. EISENHOWER... I Appendix A-White House Press Releases, I954.. I II9 Appendix B-Presidential Documents Published in the Federal Register, I954...... II1132 Appendix C-Presidential Reports to the Congress, 1954. I 38 Appendix D-Rules Governing This Publication. I. 139 INDEX.......... 1141 XI

Page  XII I

Page  XIII LIST OF ITEMS Page I Memorandum on the Red Cross Campaign. January 4, I954 I 2 Radio and Television Address to the American People on the Administration's Purposes and Accomplishments. January 4, 1954 2 3 Annual Message to the Congress on the State of the Union. January 7, 1954 6 4 Special Message to the Congress on Agriculture. January I I, I954 23 5 Special Message to the Congress on Labor-Management Relations. January II, 1954 40 6 Special Message to the Senate Transmitting the Mutual Defense Treaty Between the United States and the Republic of Korea. January II, 1954 45 7 Letter to Julius Ochs Adler, Chairman, National Security Training Commission, Concerning the Reserve Establishment. January 12, 1954 46 8 Citations Accompanying Medals of Honor Presented to William R. Charette, Edward R. Schowalter, Jr., and Ernest E. West. January 12, 1954 47 9 The President's News Conference of January 13, I 954 50 Io Special Message to the Congress on Old Age and Survivors Insurance and on Federal Grants-in-Aid for Public Assistance Programs. January 14, 1954 62 XIII

Page  XIV List of Items Page i Special Message to the Congress on the Health Needs of the American People. January I8, I954 69 12 Letter to President Hoover Regarding the Commission on Organization of the Executive Branch. January I8, I954 77 13 Statement by the President on the Approval by the Netherlands Parliament of the European Defense Community Treaty. January 20, I954 79 14 Annual Budget Message to the Congress: Fiscal Year I955. January 21, 1954 79 15 Memorandum Concerning Purchase of Savings Bonds by Government Employees. January 22, I954 192 I6 Memorandum Transmitting Report of the Commission on Foreign Economic Policy. January 23, 1954 I92 17 Special Message to the Congress on Housing. January 25, I954 I93 I8 The President's News Conference of January 27, 1954 2o0 I9 Remarks of Welcome to President Bayar of Turkey. January 27, I954 212 20 Toasts of the President and President Bayar at the White House. January 27, I954 212 21 Annual Message Transmitting the Economic Report to the Congress. January 28, I954 215 22 Address Recorded for the Republican Lincoln Day Dinners. January 28, I954 2i8 23 Toasts of the President and President Bayar at the Turkish Embassy. January 29, I954 222 XIV

Page  XV List of Items Page 24 Statement by the President Upon Signing Bill Amending the Agricultural Adjustment Act of 1938. January 30, 1954 224 25 The President's News Conference of February 3, 1954 225 26 Letter to Walter Reuther, President, United Automobile Workers, CIO, Concerning Economic Growth and Stability. February 3, 1 954 234 27 Veto of Bill Authorizing Commemorative Coinage for the Tercentennial Celebration of the City of Northampton, Massachusetts. February 3, I954 236 28 Veto of Bill Authorizing Commemorative Coinage for the Tercentennial Celebration of the City of New York. February 3,1954 237 29 Veto of Bill Authorizing Commemorative Coinage for the Sesquicentennial of the Louisiana Purchase. February 3, I954 238 30 Letter to Frederic L. Vorbeck, Executive Chairman, United Catholic Organizations for the Freeing of Cardinal Mindszenty. February 4, 1954 239 3i Remarks at the Lincoln Day Box Supper. February 5, I954 240 32 Remarks Broadcast as Part of the American Legion "Back to God" Program. February 7, 1954 243 33 The President's News Conference of February io, 1954 245 34 Statement by the President on the Participation by Eugene, Oregon, in the Multiple Purpose Development of the McKenzie River. February Io, I954 256 - xv

Page  XVI List of Items Page 35 Letter to Governor Thornton, Chairman of the Governors' Conference 1954, Proposing a Visit to Korea by a Select Group of Governors. February i I, 1954 256 36 Statement by the President on the Appointment of Admiral Jerauld Wright as Supreme Allied Commander, Atlantic. February 17, 1954 257 37 Remarks to the White House Conference on Highway Safety. February 17, 1954 258 38 Special Message to the Congress Recommending Amendments to the Atomic Energy Act. February 17, 1954 260 39 The President's News Conference of February 17, 1954 269 40 Message to Prime Minister Nehru Commending the Indian Custodial Forces in Korea. February 19, 1954 278 41 Veto of Bill Relating to Claims of Certain Employees of the Bureau of Prisons. February 22, 1954 279 42 Veto of Bill for the Relief of Mrs. Anna Holder. February 23, 1954 28i 43 Statement by the President on Proposed Improvements in the Federal Personnel Program. February 24, 1954 282 44 Letter to Prime Minister Nehru of India Concerning U.S. Military Aid to Pakistan. February 25, 1954 284 45 Statement by the President on Military Aid to Pakistan. February 25, 1954 285 46 Statement by the President Marking the Opening of the Red Cross Drive. February 28, 1954 286 47 Message Recorded for the Observance of World Day of Prayer. March 2, 1954 288 XVI

Page  XVII List of Items Page 48 The President's News Conference of March 3, I954 288 49 Statement by the President on the Administration's Program for the Domestic Wool Industry. March 4, I954 298 50 The President's News Conference of March IO, I954 299 51 Remarks at Conference of the National Association for the Advancement of Colored People. March 10, I954 310 52 Statement by the President on the Approval by the Belgian Parliament of the European Defense Community Treaty. March i2, I954 311 53 Remarks on Dedicating by Remote Control the First Power Unit at Fort Randall Dam, South Dakota. March I5, I954 312 54 Radio and Television Address to the American People on the Tax Program. March 15, 1954 313 55 Letter to the Governors of the States and Territories Requesting Them To Serve as Honorary Chairmen, United Defense Fund. March I6, I954 318 56 Statement by the President Upon Signing Bill Providing for Protection of Mexican Migrant Labor. March I6, I954 319 57 The President's News Conference of March 17, I954 320 58 Veto of Bill for the Relief of Wilhelm Engelbert. March I 7 I 954 333 59 Veto of Bill for the Relief of the Estate of Mrs. Margareth Weigand. March 17, I954 334 60o Statement by the President Upon Signing Executive Order Strengthening the Scientific Programs of the Federal Government. March I7, 1954 335 xvII

Page  XVIII List of Items Page 61 Citation Accompanying Medal of Honor Presented to Ola L. Mize. March I8, I954 336 62 Statement by the President Upon Approving Recommendations for the Development of the Upper Colorado River Basin. March 20, I954 338 63 The President's News Conference of March 24, I954 339 64 Statement by the President Upon Signing Bill To Amend the Natural Gas Act. March 27, I954 349 65 Letter Accepting Resignation of Joseph M. Dodge as Director of the Bureau of the Budget. March 27, I954 350 66 Statement by the President on the Ratification by Germany of Treaties Relating to the Proposed European Defense Community. March 29, I954 35I 67 Special Message to the Congress on Foreign Economic Policy. March 30, I954 352 68 The President's News Conference of March 31, I954 364 69 Letter to Lindsay Warren Regarding His Retirement as Comptroller General of the United States. March 3I, I954 37I 70 Statement by the President on the Death of General Hoyt S. Vandenberg. April 2, 1954 371 71 Statement by the President on the Fifth Anniversary of the Signing of the North Atlantic Treaty. April 4, 1954 372 72 Radio and Television Address to the American People on the State of the Nation. April 5, I954 372 73 The President's News Conference of April 7, I954 381 xvIII

Page  XIX List of Items Page 74 Statement by the President on the Approval by the Luxembourg Parliament of the European Defense Community Treaty. April 7, 1954 390 75 Statement by the President Upon Approving the Joint Resolution Providing for the Observance of Bataan Day. April 8, 1954 39I 76 Remarks at Ceremony Marking the Issuance of the First Stamp Bearing the Motto "In God We Trust." April 8, I954 39I 77 Remarks at Luncheon Meeting of the National Conference of Republican Women. April 8, I954 392 78 Remarks at the "Help Korea" Trains Ceremony. April 9, I954 395 79 Citation Accompanying Medal of Honor Presented to Benjamin F. Wilson. April io, 1954 396 80 Statement by the President on the Death of Senator Griswold of Nebraska. April I2, I954 397 8I Memorandum to the Administrator, Housing and Home Finance Agency, Directing Him To Take Custody of the Records of the Federal Housing Administration. April 12, I954 398 82 Message to the King of Laos on the 5oth Anniversary of His Accession to the Throne. April 15, I954 398 83 Exchange of Messages Between the President and the President of France and the Chief of State of Viet-Nam Concerning the Defenders of Dien Bien Phu. April I6, I954 399 84 Statement by the President Regarding Relationships With the Proposed European Defense Community. April 16, I954 400 XIX

Page  XX List of Items Page 85 Telegram Inviting the Governors of States Afflicted by Dust Storms To Attend Conference at the White House. April i 6, 1 954 402 86 Remarks to the 63d Continental Congress of the National Society of the Daughters of the American Revolution. April 22, 1954 403 87 Address at the Dinner of the American Newspaper Publishers Association, New York City. April 22, 1954 406 88 Remarks at the Birthplace of Abraham Lincoln, Hodgenville, Kentucky. April 23, 1954 415 89 Address at Transylvania College, Lexington, Kentucky. April 23, 1954 417 go90 Remarks at the 42d Annual Meeting of the United States Chamber of Commerce. April 26, 1954 421 91 Recorded interview by Mrs. John G. Lee, National President, League of Women Voters. April 26, 1954 425 92 The President's News Conference of April 29, 1954 427 93 Remarks to the Leaders of the United Defense Fund. April 29, I954 439 94 Special Message to the Congress Transmitting Reorganization Plan I of 1954: Foreign Claims Settlement Commission of the United States. April 29, 1954 440 95 Special Message to the Congress Transmitting Reorganization Plan 2 of 1954 Relating to the Reconstruction Finance Corporation. April 29, 1954 444 96 Remarks to the President's Committee on Employment of the Physically Handicapped. April 29, 1954 445 xx

Page  XXI List of Items Page 97 Remarks to the Defense Advisory Committee on Women in the Services. April 30, 1954 446 98 Memorandum Directing the Departments and Agencies to Take Part in a Civil Defense Test Exercise. April 30, 1954 447 99 Statement by the President on the Dust Bowl Emergency. May 4, 1954 448 100 Remarks to the President's Conference on Occupational Safety. May 4, 1954 448 ioi The President's News Conference of May 5, 1954 450 102 Statement by the President Upon Signing the Federal-Aid Highway Act of 1954. May 6, 1954 459 103 Remarks at the 22d Annual Convention of the Military Chaplains Association. May 6, 1954 460 104 Exchange of Messages Between the President and the President of France on the Fall of Dien Bien Phu. May 7, I954 463 105 Exchange of Messages Between the President and the Chief of State of Viet-Nam on the Fall of Dien Bien Phu. May 7, I954 464 i06 Remarks at the Capitol at the Dedication of the Rotunda Frieze. May II, 1954 465 107 The President's News Conference of May 12, 1954 466 i08 Remarks at the Annual Conference of the Society for Personnel Administration. May 12, 1954 475 109 Statement by the President on the Death of Senator Hoey of North Carolina. May 12, 1954 478 XXI

Page  XXII List of Items Page iio Remarks Upon Signing the St. Lawrence Seaway Bill. May 13, 1954 479 i i i Remarks at the Armed Forces Day Dinner. May 14, 1954 479 112 Letter to General Wladyslaw Anders of the Polish Armed Forces in Exile on Commemoration of the Battle of Monte Cassino. May 17, 1954 482 113 Letter to the Secretary of Defense Directing Him To Withhold Certain Information from the Senate Committee on Government Operations. May 17, 1954 483 II4 Address on Freedom Celebration Day, Charlotte, North Carolina. May i8, 1954 485 II5 The President's News Conference of May 19, 1954 489 ii6 Special Message to the Congress on Contributory Group Life Insurance for Federal Employees. May I9, 1954 498 117 Exchange of Messages Between the President and the King of Laos on the Occasion of Constitution Day. May 20, I954 499 118 Remarks to the Committee for Economic Development. May 20, 1954 500 119 Letter to Charles H. Percy of Chicago Concerning the President's Foreign Economic Policy Proposals. May 20, 1954 5~3 120 Remarks at the Annual Convention of the National Rivers and Harbors Congress. May 25, 1954 505 121 Veto of Bill Providing for the Conveyance of Lands Within Camp Blanding Military Reservation, Florida. May 25, I954 5~7 XXII

Page  XXIII List of Items Page i22 Letter to Secretary McKay Establishing a Cabinet Committee on Water Resources Policy. May 26, 1954 509 I23 Statement by the President on Receiving the Air Coordinating Committee Report on U.S. Aviation Policy. May 26, I954 5I1 124 Toasts of the President and Emperor Haile Selassie of Ethiopia. May 26, I954 5I2 I25 Special Message to the Congress Transmitting Recommendations Adopted by the International Labor Organization. May 28, I954 5I3 i26 Special Message to the Congress Transmitting Convention Adopted by the International Labor Organization. May 28, I954 514 127 Remarks to the 44th National Council of the Boy Scouts of America. May 29, 1954 515 I28 Address at the Columbia University National Bicentennial Dinner, New York City. May 31, I954 5I7 I29 The President's News Conference of June 2, 1954 526 I30 Statement by the President on the Record of the Department of Justice in Dealing With Subversive Activities. June 2, 1954 533 I31 Excerpts From Remarks to a Group of Correspondents About To Return to the Scene of the Normandy Invasion. June 2, I954 535 I32 Memorandum on the Community Chest Campaign in the National Capital Area. June 5, I954 536 I33 Statement by the President on the i oth Anniversary of the Landing in Normandy. June 6, I954 537 xxIn

Page  XXIV List of Items Page I34 Veto of Bill for the Relief of Theodore W. Carlson. June 7, I954 538 135 Veto of Bill for the Relief of Mrs. Ann Elizabeth Caulk. June 7, I954 540 136 Remarks at the Washington College Commencement, Chestertown, Maryland. June 7, I954 54I I37 Veto of Bill To Amend the Public Health Service Act. June 8, I954 544 138 The President's News Conference of June 10, I954 545 I39 Address at Meeting of District Chairmen, National Citizens for Eisenhower Congressional Committee. June Io, I954 555 I40 Statement by the President Upon Signing Bill To Include the Words "Under God" in the Pledge to the Flag. June I4, I954 563 14I Veto of Bill for the Relief of Mrs. Rose Kaczmarczyk. June I4, I954 563 I42 Veto of Bill for the Relief of Mrs. Josette L. St. Marie. June I4, I954 565 143 The President's News Conference of June i6, I954 566 I44 Remarks at the Convention of the National Association of Retail Grocers. June i6, I954 575 I45 Statement by the President Upon Signing Bill Amending the Railroad Retirement Act of I937. June i6, I954 578 I46 Remarks to the National 4-H Club Campers. June 17, I954 580 XXIV

Page  XXV List of Items Page 147 Statement by the President Upon Signing Bill Concerning Termination of Federal Supervision Over the Menominee Indian Tribe. June I7, 1954 582 I48 Exchange of Letters Between the President and President Coty of France After the Fall of the Laniel Cabinet. June I8, 1954 583 I49 Remarks at the National Editorial Association Dinner. June 22, I954 585 I50 Special Message to the Congress on the Mutual Security Program. June 23, I954 590 I5I Remarks at a Breakfast Meeting of the National Cartoonists Society. June 24, 1954 594 152 Statement by the President Upon Signing Bill Relating to the Administrative Jurisdiction Over Certain Public Lands in Oregon. June 24, I954 597 153 Letter to Dr. Chester I. Barnard, Chairman, National Science Board, Concerning United States Participation in the International Geophysical Year. June 25, I954 597 I54 Joint Statement by the President and Prime Minister Churchill. June 28, I954 599 155 Joint Declaration by the President and the Prime Minister of the United Kingdom. June 29, I954 6oo I56 Veto of Bill Conveying Certain Public Lands to Jake Alexander. June 29, I954 6oi I57 The President's News Conference of June 30, 1954 602 158 Exchange of Messages Between the President and the President of Mexico on the Rio Grande Flood Disaster. July I, I954 614 XXV

Page  XXVI List of Items Page 159 Veto of Bill for the Relief of Ralston Edward Harry. July 3, 1954 615 I6o Message to the Mayor of Philadelphia for the Fourth of July Ceremonies at Independence Hall. July 5, I954 6i6 161 The President's News Conference of July 7, I954 617 I62 Statement by the President Upon Signing the Agricultural Trade Development and Assistance Act of 1954. July I0, I954 626 i63 Letter to Secretary Weeks Establishing a Cabinet Committee on Transport Policy and Organization. July 12, I954 627 I64 Message for the Governors' Conference at Lake George and Request for Recommendations as to a Federal-State Highway Program. July 12, I954 628 I65 The President's News Conference of July 14, 1954 629 I66 Statement by the President Upon Signing Bill Increasing Reenlistment Bonuses for Members of the Uniformed Services. July I6, I954 640 167 Remarks at Presentation by Field Marshal Alexander of a Portrait of the President. July 20, I954 64I I68 The President's News Conference of July 2 I, 1954 641 I69 Statement by the President Reviewing the Progress Made Toward a Balanced Budget. July 22, I954 65I I70 Remarks at the World Christian Endeavor Convention. July 25, I954 652 171 Toasts of the President and President Rhee of Korea at the White House. July 26, I954 655 XXVI

Page  XXVII List of Items Page 172 The President's News Conference of July 28, 1954 658 173 Statement by the President Upon Signing Bill To Provide Water From the Santa Margarita River. July 28, 1954 668 174 Toasts of the President and President Rhee of Korea at the Dinner for President Eisenhower. July 28, 1954 670 175 Statement by the President on Extending Aid to Flood Stricken Areas in Eastern and Central Europe. July 29, I954 672 176 Citation Accompanying the Medal of Freedom Presented to Genevieve de Galard-Terraube. July 29, 1954 672 177 Letter to Joseph T. Meek, Illinois Republican Candidate for the Senate. July 30, I954 673 178 Joint Statement by the President and President Rhee of Korea. July 30, 1954 674 179 Statement by the President Upon Signing the Housing Act of 1954. August 2, 1954 675 i80 Statement by the President Upon Signing the Vocational Rehabilitation Amendments of 1954. August 3, 1954 676 i8i Veto of Bill for the Relief of Klyce Motors, Incorporated. August 3, 1954 677 182 The President's News Conference of August 4, 1954 678 183 Memorandum on the Community Chest and United Fund Campaigns. August 4, I954 687 184 Exchange of Letters Between the President and the Shah of Iran Concerning the Settlement of the Oil Problem. August 5, 1954 688 XXviI

Page  XXVIII List of Items Page 185 Letter to Herbert Hoover, Jr., on His Contribution to the Settlement of the Anglo-Iranian Oil Dispute. August 7, 1954 689 I 86 Letter to Ambassador Loy W. Henderson on His Contribution to the Settlement of the Anglo-Iranian Oil Dispute. August 7, I954 690 187 Letter to the Governors of the States Urging Them To Establish Committees To Assist in Implementing the Refugee Relief Act. August 7, 1954 691 i88 Letter to the Governor of New York Congratulating Him on Establishing a Committee To Assist in Implementing the Refugee Relief Act. August 7, 1954 692 189 Exchange of Letters Between the President and Chancellor Adenauer Concerning Vested German Assets in the United States. August io0, 1954 692 190 Letter to President Hoover on the Occasion of His 8oth Birthday. August io0, I954 694 191 Statement by the President Upon Signing Bills To Modernize the Tanker Fleet. August 10, 1954 695 192 The President's News Conference of August I I, 1 954 696 193 Letter Directing the Attorney General To Petition for an Injunction in Labor Dispute at the Atomic Energy Commission Facilities at Oak Ridge and Paducah. August II, 1954 705 194 Statement by the President on the State of the Economy at Midyear. August 12, 1954 707 195 Memorandum Directing Use of Agricultural Commodities for Flood Relief in Austria, the Federal Republic of Germany, and Soviet-Occupied Germany. August 12, 1954 7II xxvinI

Page  XXIX List of Items Page 196 Letter to Chairmen, Senate and House Agriculture Committees, on the Farm Bills in Conference. August 12, I954 7I2 I97 Remarks to Republican Candidates Supported by Citizens for Eisenhower Groups. August i2, 1954 714 i98 Message for the Ceremonies Marking the Ioth Anniversary of Allied Landings in Southern France. August I4, I954 714 I99 Statement by the President Upon Signing Bill Revising the Internal Revenue Code. August 16, 1954 715 200 The President's News Conference of August 17, 1954 717 201 Statement by the President Upon Signing Bill Amending the Water Facilities Act. August 17, I954 725 202 Statement by the President Upon Signing the Federal Employees' Group Life Insurance Act. August 17, 1954 729 203 Address at the Illinois State Fair at Springfield. August I9, I954 729 204 Address at the Second Assembly of the World Council of Churches, Evanston, Illinois. August 19, 1954 734 205 Message to Madame de Gasperi on the Death of the Prime Minister of Italy. August 19, 1954 740 206 Veto of Bill Regulating the Election of Delegates From the District of Columbia to National Political Conventions. August 20, 1954 741 207 Statement by the President Upon Signing Bill Governing the Keeping and Public Inspection of Arrest Books in the District of Columbia. August 20, I954 742 208 Memorandum of Disapproval of Federal Employees' Pay Bill. August 23, 1954 744 XXIX

Page  XXX List of Items Page 209 Radio and Television Address to the American People on the Achievements of the 83d Congress. August 23, 1954 746 210I Statement by the President Upon Signing the Communist Control Act of 1954. August 24, 1954 756 211 I Remarks on the Communist Control Act of 1954. August 24, I954 759 212 Memorandum of Disapproval of a Bill for the Relief of Nina Makeef, Also Known as Nina Berberova. August 24, 1954 760 213 Statement by the President Upon Signing Bill Amending the Merchant Marine Act of 1936. August 26, 1954 761 214 Letter to Secretary Mitchell Establishing an Interdepartmental Committee on Migratory Labor. August 26, 1954 762 215 Memorandum of Disapproval of Bill for the Relief of George Pantelas. August 26, 1954 763 216 Memorandum of Disapproval of Bill for the Relief of the Estate of Mary Beaton Denninger. August 26, 1954 764 217 Letter to Harry A. Bullis of Minneapolis on Foreign Economic Policy. August 26, 1954 765 218 Memorandum of Disapproval of Bill Concerning Compensation of Quarantine Inspection Personnel. August 27, 1954 767 219 Statement by the President Upon Signing Bill Establishing a New Limit on the Federal Debt. August 28, 1954 770 220 Statement by the President Upon Signing Bills Increasing Payments to Veterans or Their Dependents. August 28, 1954 77~

Page  XXXI List of Items Page 22I Statement by the President Upon Signing the Agricultural Act of 1954. August 28, 1954 772 222 Memorandum of Disapproval of Bill Providing for Taxation by Wyoming of Property Within Grand Teton National Park. August 28, I954 775 223 Statement by the President Upon Signing the Atomic Energy Act of 1954. August 30, I954 776 224 Statement by the President Upon Signing Bill Authorizing Construction of Bridges Over the Potomac River. August 30, I954 777 225 Address at the American Legion Convention. August 30, I954 779 226 Address at the Iowa State Fair at Des Moines. August 30, 1954 787 227 Statement by the President Upon Signing Bill Increasing Unemployment Compensation Benefits in the District of Columbia. August 31, 1954 792 228 Memorandum of Disapproval of Bill for the Relief of Anna K. McQuilkin. August 3I, I954 792 229 Memorandum of Disapproval of Bill for the Relief of S. H. Prather, Mrs. Florence Prather Penman, and S. H. Prather, Jr. August 3 1, I 954 794 230 Memorandum of Disapproval of Bill for the Relief of the Estate of Carlos M. Cochran. August 3I, I954 795 23 I Memorandum of Disapproval of Bill for the Relief of Lawrence F. Kramer. August 3I, I954 797 232 Memorandum of Disapproval of Bill for the Relief of Graphic Arts Corporation. August 3V, I954 798 XXXI

Page  XXXII List of Items Page 233 Statement by the President on the Death of Senator Maybank of South Carolina. September i, I954 8oo 234 Statement by the President Upon Signing Bill Providing Benefits for Government Employees. September i, I954 8oo 235 Statement by the President Upon Signing the Social Security Amendments of 1954. September i, I954 8oi 236 Statement by the President Upon Signing Bill To Extend and Improve the Unemployment Insurance Program. September I, I954 803 237 Statement by the President Upon Signing Bill Authorizing Construction of Family Housing for Military Personnel and Their Dependents. September i, I954 804 238 Statement by the President Upon Signing Bill Conveying Certain Mineral Rights to Mrs. Pearl 0. Marr. September i, 1954 805 239 Memorandum of Disapproval of Bill for the Relief of Mrs. Rosaline Spagnola. September i, I954 8o6 240 Memorandum of Disapproval of Bill for the Relief of Raleigh Hill. September I, 1954 8o8 241 Memorandum of Disapproval of Bill for the Relief of Mrs. Merle Cappeller Weyel. September i, I954 809 242 Memorandum of Disapproval of Bill for the Relief of E. S. Berney. September i, I954 8Ii 243 Memorandum of Disapproval of Bill Concerning Claims Arising as a Result of Construction of Elephant Butte Dam. September i, 1954 813 244 Memorandum of Disapproval of Bill Concerning a Claim of the Cuban-American Sugar Company. September i, I954 815 XXXII

Page  XXXIII List of Items Page 245 Memorandum of Disapproval of Bill for the Relief of Carl Piowaty and W. J. Piowaty. September 2, 1954 817 246 Memorandum of Disapproval of Bill To Establish the Finality of Contracts Between the Government and Common Carriers. September 2, 1954 8i8 247 Memorandum of Disapproval of Bill for the Relief of T. C. Elliott. September 2, 1954 819 248 Memorandum of Disapproval of Bill Relating to the Labeling of Packages Containing Foreign-Produced Trout. September 2, 1954 821 I 249 Statement by the President Upon Signing the River and Harbor Act and the Flood Control Act of 1954. September 3, 1954 823 250 Statement by the President Upon Signing Bill Making Available Special Nonquota Immigrant Visas to Skilled Alien Sheepherders. September 3, 1954 824 251 Memorandum of Disapproval of Bill for the Relief of the Trust Association of H. Kempner. September 3, 1954 824 252 Memorandum of Disapproval of Bill Providing for a Commission To Regulate Public Transportation of Passengers in the Washington Area. September 3, 1954 826 253 Memorandum of Disapproval of Bill Permitting Increased Water Diversion From Lake Michigan. September 3, I954 829 254 Memorandum of Disapproval of Bill To Revise and Codify the Laws Relating to Food, Drugs, and Cosmetics. September 3, 1 954 831 255 Statement by the President on Highway Safety During the Labor Day Weekend. September 3, I954 832 51986-60 - 3 XXXIII

Page  XXXIV List of Items Page 256 Remarks at the Airport, Grand Junction, Colorado. September 4, I954 833 257 Remarks at Natrona Airport, Casper, Wyoming. September 4, I954 835 258 Remarks at the Airport, McCook, Nebraska. September 4, I954 837 259 Statement by the President: Labor Day. September 4, I954 839 260 Radio and Television Remarks on the Occasion of the Ground-Breaking Ceremony for the Shippingport Atomic Power Plant. September 6, 1954 840 26i Statement of Policy, Approved and Issued by the President, on Foreign Trade as Related to Agriculture. September 9, I954 841 262 Letter to Clarence Francis Requesting Him To Serve as Chairman of Interagency Committee on Agricultural Surplus Disposal. September 9, I954 843 263 Letter to Members of Interagency Committee on Agricultural Surplus Disposal. September 9, I954 844 264 Exchange of Messages Between the President and the Shah of Iran on the Losses Caused in the United States by Hunricane "Carol." September I0, 1954 847 265 Message to the President of France on the Earthquake in Algeria. September I0, I954 847 266 Statement by the President on the Meeting of the National Security Council in Denver. September I3, I954 848 267 Remarks at Dedication of the Boulder, Colorado, Laboratories of the National Bureau of Standards. September I 4, I954 848 XXXIV

Page  XXXV List of Items Page 268 Letter to the Governors Concerning the State and White House Conferences on Education To Be Held in I955. September 21, I954 850 269 Statement by the President: National Day of Prayer. September 21, I954 852 270 Remarks at Dedication of Aerial Fire Depot, Municipal Airport, Missoula, Montana. September 22, I954 852 271 Address at the Dedication of McNary Dam, Walla Walla, Washington. September 23, I954 855 272 Remarks at the Airport, Pendleton, Oregon. September 23, I954 864 273 Address at the Hollywood Bowl, Los Angeles, California. September 23, I954 865 274 Remarks at the Breakfast in Los Angeles Given by Republican Groups of Southern California. September 24, I954 875 275 Remarks to the American Federation of Labor Convention, Los Angeles, California. September 24, I954 88o 276 Letter to Harvey S. Firestone, Jr., National Chairman, United Community Campaigns of America. September 26, 1954 884 277 Statement by the President on the Occasion of the Jewish New Year. September 27, I954 884 278 Letter to the REA Administrator Concerning Recent Progress in Rural Electrification. September 28, I954 885 279 Statement by the President: National Newspaper Week. September 29, I954 886 280 Message to the King of Cambodia. October 2, I954 887 XXXv

Page  XXXVI List of Items Page 281 Letter to Dr. Thomas Keith Glennan Reconvening the Board of Inquiry in the Labor Dispute at Atomic Energy Facilities at Oak Ridge and Paducah. October 4, 1954 888 282 Statement by the President on the Nine-Power Conference in London. October 4, I954 888 283 Exchange of Messages Between the President and President Einaudi of Italy on the Trieste Agreement. October 5, I954 889 284 Exchange of Messages Between the President and President Tito of Yugoslavia on the Trieste Agreement. October 5, I954 890 285 Letter to Harvey V. Higley, Administrator of Veterans Affairs, Designating Him Chairman of the Veterans Day National Committee. October 8, 1954 89 286 Address at the Republican Precinct Day Rally, Denver, Colorado. October 8, I954 892 287 Remarks to Members of the Olympic Committee, Denver, Colorado. October 12, I954 899 288 Memorandum on Occupational Safety in the Government Service. October I4, I954 900 289 Exchange of Messages Between the President and President Magloire on the Hurricane Damage in Haiti. October I4, I954 901 290 Remarks in Indianapolis at the Columbia Republican Club. October 15, 1954 902 291 Address at Butler University, Indianapolis, Before the National Institute of Animal Agriculture. October I5, I954 905 292 Remarks of Welcome to President Tubman of Liberia. October 18, 1954 912 xxxvI

Page  XXXVII List of Items Page 293 Toasts of the President and the President of Liberia. October i8, 1954 912 294 Remarks at the Department of State I954 Honor Awards Ceremony. October I9, 1954 914 295 Remarks at the Trinity College Convocation, Hartford, Connecticut. October 20, 1954 917 296 Remarks at the Governor Lodge Birthday Celebration in Hartford. October 20, 1954 919 297 Address at the American Jewish Tercentenary Dinner, New York City. October 20, 1954 920 298 Remarks at the New York Republican State Committee Rally, New York City. October 21, 1954 928 299 Remarks at the Manhattan State Hospital, Wards Island, New York City. October 21, 1954 931 300 Remarks at the Dedication of the State University of New York Medical Center, New York City. October 21, 1954 933 301 Address at the Alfred E. Smith Memorial Dinner, New York City. October 21, 1954 934 302 Letter to Senator Capehart on the Investigation of the Federal Housing Administration. October 23, I954 942 303 Remarks at the Pennsylvania Monument, Gettysburg National Military Park. October 23, 1954 943 304 Remarks in Gettysburg to a Group of Republican Candidates. October 23, 1954 944 305 Remarks Recorded for Program Marking the 75th Anniversary of the Incandescent Lamp. October 24, 1954 947 xxxv"

Page  XXXVIII List of Items Page 306 Letter to the President of the Council of Ministers of VietNam Regarding Assistance for That Country. October 25, I954 948 307 Remarks in Connection With Secretary Dulles' Public Report at a Cabinet Meeting. October 25, 1954 950 308 Address at the Forrestal Memorial Award Dinner of the National Security Industrial Association. October 25, I954 951 309 Letter to Harvey V. Higley, Administrator of Veterans Affairs, on the Elimination of Segregation in Veterans Facilities. October 26, I954 959 3IO Remarks at the Conference of the National Women's Advisory Committee on Civil Defense. October 26, I954 960 3 I I The President's News Conference of October 27, 1954 963 3I2 Letter to the Vice President in Appreciation of His Contribution to the Campaign. October 28, I954 975 313 Letter to Representatives Broyhill, Hyde, and Small on Legislation Benefiting Federal Employees. October 28, I954 976 314 Joint Statement by the President and Chancellor Adenauer. October 28, I954 978 315 Statement by the President on the Floods and Landslides in Italy. October 28, 1954 979 3i6 Address at Eisenhower Day Dinner Given by the Citizens for Eisenhower Congressional Committee for the District of Columbia. October28, I954 980 3I7 Remarks at the Municipal Airport, Cleveland, Ohio. October 29, I954 986 3i8 Remarks in Cadillac Square, Detroit, Michigan. October 29, 1954 990 xxxvm

Page  XXXIX List of Items Page 319 Remarks at Standiford Airport, Louisville, Kentucky. October 29, 1954 996 320 Remarks at New Castle County Airport, Wilmington, Delaware. October 29, 1954 Ioo00I 321 Radio and Television Remarks on Election Eve. November I, 1954 ioo6 322 The President's News Conference of November 3, 1954 1009 323 Memorandum on the Administration of Foreign Aid Programs. November 6, 1954 1019 324 Letter to the Chairman of the United States Delegation to the Ninth Session on the General Agreement on Tariffs and Trade. November 8, 1954 I02I 325 Address to the National Council of Catholic Women, Boston, Massachusetts. November 8, 1954 1023 326 Remarks to a Representative Group Receiving Citizenship Papers on Veterans Day. November 9, 1954 1028 327 Remarks to the First National Conference on the Spiritual Foundations of American Democracy. November 9, 1954 1029 328 The President's News Conference of November i0, 1954 1032 329 Special Message to the Senate Transmitting the Southeast Asia Collective Defense Treaty and Protocol Thereto. November io0, 1954 1041 330 Joint Statement Following Discussions With Prime Minister Yoshida of Japan. November i O0, 1954 1042 331 Remarks at the Dedication of the Eisenhower Museum, Abilene, Kansas. November II, 1954 1044 XXXIX

Page  XL List of Items Page 332 Special Message to the Senate Transmitting Protocols to Treaties Relating to the Federal Republic of Germany. November 5, 1954 1046 333 Remarks to the American Council To Improve Our Neighborhoods. November 15, 1954 1051 334 Remarks on Receiving the Frank H. Lahey Award From the National Fund for Medical Education. November 16, I954 1052 335 Remarks at Annual Meeting of the Association of LandGrant Colleges and Universities. November 16, I954 I053 336 Statement by the President: Safe Driving Day. November I6, I954 I056 337 White House Statement Following Bipartisan Conference on Foreign Affairs and National Security. November I7, I954 I057 338 Remarks to Executive Committee of the United States Junior Chamber of Commerce and Directors of the Canadian Chamber of Commerce. November 19, 1954 Io58 339 Statement by the President on the Death of Governor William S. Beardsley of Iowa. November 22, I954 I059 340 Message to the Conference of Ministers of Finance and Economy Meeting in Rio de Janeiro. November 22, I954 I059 341 The President's News Conference of November 23, 1954 io6o 342 Message to the Relatives of Americans Held Prisoner by the Chinese Communists. November 25, 1954 I07I 343 Letter to Heads of Departments Constituting the Interdepartmental Committee on Narcotics. November 27, I954 1072 XL

Page  XLI List of Items Page 344 Message to Sir Winston Churchill on the Occasion of His 8oth Birthday. November 29, 1954 1073 345 The President's News Conference of December 2, 1954 1073 346 Remarks to the Washington Conference of Mayors. December 2, 1954 1084 347 The President's News Conference of December 8, 1954 i o86 348 Letter to Joseph M. Dodge Designating Him as Special Assistant to the President and as Chairman, Council on Foreign Economic Policy. December II, 1 954 1097 349 White House Statement Following Meetings With Republican Leaders of Congress on the Legislative Program. December 13, 1954 I 099 350 Remarks Recorded for the Dedication of the Memorial Press Center, New York City. December 13, 1 954 I I00 351 White House Statement Following Bipartisan Conference on Foreign Affairs, National Defense, and Mutual Security. December 14, 1954 I 10I 352 Message Recorded on Film in Connection with the Observance of Safe Driving Day. December 1 4, 1 954 1 103 353 The President's News Conference of December I5, 1954 I I03 354 Letter to Nelson A. Rockefeller Appointing Him Special Assistant to the President. December 16, 1954 III4 355 Remarks at the Pageant of Peace Ceremonies. December I7, I954 III5 356 Memorandum on the Red Cross Campaign. December 2 1, 1954 III7 357 Statement by the President on the Vote by the French Assembly To Ratify the Paris Treaties. December 30, 1954 I I I8 XLI 51986-60 ---

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Page  XLIII Dwight D. Eisenhower I954

Page  XLIV

Page  1 I 4i Memorandum on the Red Cross Campaign. January 4, I 954 To the Heads of Executive Departments and Agencies: The Red Cross has long since become an important and valued feature of American life. As a great fellowship, it welcomes all as members. Its activities are so far flung and so vital to our Nation that it seems advisable, occasionally, to remind ourselves of their scope and character. In war it renders so many services, so well, to men fighting for freedom, that among the armed forces no morale factor is more important than the Red Cross. In peace the American spirit of people helping people is demonstrated through Red Cross services. In disasters it mitigates sufferings caused by fire, famine, pestilence, tornado and flood. Through its civilian and military blood donor program it means life to thousands of men, women and children each year. Through its activities the Red Cross is on duty everywhere, in the United States and abroad, in the humblest homes, in great disasters. It serves all creeds, all races, all countries. The personnel of the Federal Government has set a consistently high standard of generous giving to the Red Cross. I hope this fine record will continue this year under the leadership of the Honorable Arthur E. Summerfield, the Postmaster General, whom I have designated as Chairman of the Government Unit in the I954 Metropolitan Area Red Cross Fund Campaign. His own wealth of experience in community welfare challenges the hearty and active cooperation of each department head. To give him your support most effectively, you will undoubtedly want to create within your department a Red Cross organization adequate to give everyone an opportunity to contribute and attain the goal desired from your department. Likewise I hope that you will request all personnel in your departmental field offices to help the Red Cross by generous cooperation with their local Red Cross Chapters. The Red Cross through its purposes, its work and the people who belong to it, helps us to realize man is made of nobler qualities than those of selfishness, greed and personal advantage. The Red Cross gives practical application in a vast human field to those great and noble virtues of man that are the richest heritage from the Almighty. DWIGHT D. EISENHOWER I

Page  2 Public Papers of the Presidents 2 eJ Radio and Television Address to the American People on the Administration's Purposes and Accomplishments. January 4, 1954 [Delivered from the Broadcast Room at the White House at 9:30 p.m. ] My fellow Americans: Tonight, I would like to talk to you as individuals and as American families-deeply concerned with the realities of living. We have had a year of progress and can look ahead with confidence. Our problems are many. We wonder about our Nation's securitythe great standing question of peace in the world-and what this may mean in the lives and careers of our sons and daughters. All of us are concerned with the cost of food and clothing and shelter, with taxes and income and savings and jobs, with the schooling, the health and the future of our children and grandchildren, with all the problems and purposes and great hopes that fill our lives. Believe me-these realities of living, every one of them, are the deep concern, too, of this administration. From time to time, as we tackle Government's part in the solution of these problems, members of the administration-myself and others-will report to you about our aims, our actions, our progress, and what is being accomplished. This kind of reporting, it seems to me, is one of the great responsibilities of a government which, like ours, rests on the consent of the people. We know that an informed and alert people is the backbone of the free system in which this Republic was conceived and under which it has so greatly prospered. One such report-and a most important one-I shall deliver to the Congress on Thursday of this week: the State of the Union Message. It will present an outline of this administration's legislative program. Many major phases of the national economy and activities of your Government will be discussed in this report. I believe you will find it, and the projected program it includes, of great personal interest to you. It will affect your lives-we believe for the better-certainly it represents the philosophy of government by and for the people. In the preparation of the program to be presented in the State of the 2

Page  3 Dwight D. Eisenhower, 1954 ( 2 Union Message I am consulting with many senior members of the Congress and have considered the views of a great many other thoughtful persons. And I hope that this program, because of its purpose of promoting the welfare of all our people, will enlist the support of all of you, regardless of party. It is my earnest hope that the Congress will take quick and effective steps to enact the measures I will recommend. This evening, I shall not preview the message to be delivered to the Congress on Thursday. However, it is entirely proper that I should review, briefly, the aims and purposes of this administration-in what direction we are headed and how we propose to get there. And, also briefly, some accomplishments of the past i2 months. This administration believes that Government-from top to bottommust be manned by men and women of brains, conscience, heart, and integrity. We believe that these men and women must have an intellectual grasp of the problems before them that is matched by their devotion to what is just and humane. Such people are true public servants; not bureaucrats. Given such men and women, your Government will be unimpeachable in honesty and decency and dignity. It will be an example in solvency and efficiency for all America to follow; and a shining proof to all the world that freedom and strength and a widely shared prosperity go hand-in-hand. We believe that with such public servants, and backed by your approval, we can take the forward road to a stronger and better America. This administration believes that no American-no one group of Americans-can truly prosper unless all Americans prosper. We are one family made up of millions of Americans with the same hopes for a full and happy life. We must not become a nation divided into factions, or special groups and hostile cliques. We believe that the slum, the out-dated highway, the poor school system, deficiencies in health protection, the loss of a job, and the fear of poverty in old age-in fact, any real injustice in the business of livingpenalizes us all. And this administration is committed to help you prevent them. "Help" is the key word of this administration and of the program it presents to the Congress this Thursday. What do we mean by help? 3

Page  4 (y 2 Public Papers of the Presidents We do not mean monuments to costly and intolerant bureaucracy. We do not mean a timid unwillingness to act. We mean service-service that is effective, service that is prompt, service that is single-mindedly devoted to solving the problem. You make up the communities of this country, where the everlasting job of building a stronger and better America must have its roots. We will seek to give national effect to your aims and aspirations. To do so, we rely on the good sense and local knowledge of the community and will therefore decentralize administration as much as possible so that the services of Government may be closer to you and thus serve you better. For we know that you are far more knowledgeable than Washington as to the nature of your local needs. We know also that, as the local partners in any enterprise, you will be incessantly concerned with efficiency and economy-something which we are promoting in all Federal enterprises. I know that you have unbounded confidence in the future of America. You need only the assurance that Government will neither handcuff your enterprise nor withdraw into a smug bureaucratic indifference to the welfare of American citizens, particularly those who, through no fault of their own, are in a period of adversity. For this administration, I give you that pledge. So much for our beliefs and the aims and purposes of this administration. What has been accomplished in the year just past? Let me list a few of these in the briefest possible fashion: i. The fighting and the casualties in Korea mercifully have come to an end. We can therefore take more satisfaction in other blessings of our daily life. 2. Our own defenses and those of the free world have been strengthened against Communist aggression. 3. The highest security standards are being insisted upon for those employed in Government service. 4. Requests for new appropriations have been reduced by 13 billion dollars. 5. Tax reductions which go into effect this month have been made financially feasible by substantial reductions in expenditures. 6. Strangling controls on our economy have been promptly removed. 4

Page  5 Dwight D. Eisenhower, 1954 7. The fantastic paradox of farm prices, on a toboggan slide while living costs soared skyward, has ceased. 8. The cheapening by inflation of every dollar you earn, every savings account and insurance policy you own, and every pension payment you receive has been halted. 9. The proper working relationship between the executive and legislative branches of the Federal Government has been made effective. i0. Emergency immigration legislation has been enacted. i i. A strong and consistent policy has been developed toward gaining and retaining the initiative in foreign affairs. 12. A plan to harness atomic energy to the peaceful service of mankind, and to help end the climate of suspicion and fear that excites nations to war, has been proposed to the world. And there is still another accomplishment. Perhaps this one should more properly be called groundwork for an accomplishment. It is groundwork that has been laid by this administration in the strong belief that the Federal Government should be prepared at all times-ready, at a moment's notice-to use every proper means to sustain the basic prosperity of our people. I therefore give you this assurance: Every legitimate means available to the Federal Government that can be used to sustain that prosperity is being used and will continue to be used as necessary. This administration believes that we must not and need not tolerate a boom-and-bust America. We believe that America's prosperity does not and need not depend upon war or the preparation for war. We know that this great country can make the adjustments necessary to meet changing circumstances without encouraging disaster and without bringing about the economic chaos for which the Communists hope. Our system is the greatest wealth producer in the world-in terms of the life and the well-being of every citizen. Sound planning and aggressive enterprise must, of course, be accompanied by the indispensable ingredient-a persistent and reasoned faith in the growth and progress of America, a faith which cannot be shaken by self-appointed peddlers of gloom and doom. Such are a few of the accomplishments of the past year. They promise a new year even more fruitful to the security of the Nation and the welfare of its people. 5

Page  6 Public Papers of the Presidents Now, as all of you know, when you set out to build a house, you first must plan and solidly construct a foundation on which to put it-if you hope to live in that house in comfort and security. Since January 20th of last year we have planned and built the foundation for our forthcoming legislative program, constructed under the aims and purposes I have been discussing with you tonight. It is my legal duty to present this program, in the State of the Union Message, to your elected representatives, the members of the House of Representatives and of the Senate. It is their duty, in turn, to give it careful study, before taking action on its various recommendations. It is your right to give it the same thoughtful consideration. It is a program that does not deal in pie-in-the-sky promises to all, nor in bribes to a few, nor in threats to any. It is a program inspired by zeal for the common good, dedicated to the welfare of every American family-whatever its means of livelihood may be, or its social position, or its ancestral strain, or its religious affiliation. I am confident that it will meet with your approval. When the State of the Union Message is delivered to the Congress on Thursday, I hope you will agree with me that it presents an opportunity which will enable us, as a people-united and strong-to push ever forward and to demonstrate to the world the great and good power of free men and women. We will build a stronger and better America-of greater security and increasing prosperity for all. 3 TJ Annual Message to the Congress on the State of the Union. January 7, 1954 [ Delivered in person before a joint session ] Mr. President, Mr. Speaker, Members of the Eighty-third Congress: It is a high honor again to present to the Congress my views on the state of the Union and to recommend measures to advance the security, prosperity, and well-being of the American people. All branches of this Government-and I venture to say both of our great parties-can support the general objective of the recommendations 6

Page  7 Dwight D. Eisenhower, 1954 I make today, for that objective is the building of a stronger America. A nation whose every citizen has good reason for bold hope; where effort is rewarded and prosperity is shared; where freedom expands and peace is secure-that is what I mean by a stronger America. Toward this objective a real momentum has been developed during this Administration's first year in office. We mean to continue that momentum and to increase it. We mean to build a better future for this nation. Much for which we may be thankful has happened during the past year. First of all we are deeply grateful that our sons no longer die on the distant mountains of Korea. Although they are still called from our homes to military service, they are no longer called to the field of battle. The nation has just completed the most prosperous year in its history. The damaging effect of inflation on the wages, pensions, salaries and savings of us all has been brought under control. Taxes have begun to go down. The cost of our government has been reduced and its work proceeds with some i 83,000 fewer employees; thus the discouraging trend of modern governments toward their own limitless expansion has in our case been reversed. The cost of armaments becomes less oppressive as we near our defense goals; yet we are militarily stronger every day. During the year, creation of the new Cabinet Department of Health, Education, and Welfare symbolized the government's permanent concern with the human problems of our citizens. Segregation in the armed forces and other Federal activities is on the way out. We have also made progress toward its elimination in the District of Columbia. These are steps in the continuing effort to eliminate inter-racial difficulty. Some developments beyond our shores have been equally encouraging. Communist aggression, halted in Korea, continues to meet in Indo-china the vigorous resistance of France and the Associated States, assisted by timely aid from our country. In West Germany, in Iran, and in other areas of the world, heartening political victories have been won by the forces of stability and freedom. Slowly but surely, the free world gathers strength. Meanwhile, from behind the iron curtain, there are signs that tyranny is in trouble and reminders that its structure is as brittle as its surface is hard. There has been in fact a great strategic change in the world during 7

Page  8 4( 3 Public Papers of the Presidents the past year. That precious intangible, the initiative, is becoming ours. Our policy, not limited to mere reaction against crises provoked by others, is free to develop along lines of our choice not only abroad, but also at home. As a major theme for American policy during the coming year, let our joint determination be to hold this new initiative and to use it. We shall use this initiative to promote three broad purposes: First, to protect the freedom of our people; second, to maintain a strong, growing economy; third, to concern ourselves with the human problems of the individual citizen. Only by active concern for each of these purposes can we be sure that we are on the forward road to a better and a stronger America. All my recommendations today are in furtherance of these three purposes. I. FOREIGN AFFAIRS American freedom is threatened so long as the world Communist conspiracy exists in its present scope, power and hostility. More closely than ever before, American freedom is interlocked with the freedom of other people. In the unity of the free world lies our best chance to reduce the Communist threat without war. In the task of maintaining this unity and strengthening all its parts, the greatest responsibility falls naturally on those who, like ourselves, retain the most freedom and strength. We shall, therefore, continue to advance the cause of freedom on foreign fronts. In the Far East, we retain our vital interest in Korea. We have negotiated with the Republic of Korea a mutual security pact, which develops our security system for the Pacific and which I shall promptly submit to the Senate for its consent to ratification. We are prepared to meet any renewal of armed aggression in Korea. We shall maintain indefinitely our bases in Okinawa. I shall ask the Congress to authorize continued material assistance to hasten the successful conclusion of the struggle in Indo-china. This assistance will also bring closer the day when the Associated States may enjoy the independence already assured by France. We shall also continue military and economic aid to the Nationalist Government of China. In South Asia, profound changes are taking place in free nations which are demonstrating their ability to progress through democratic 8

Page  9 Dwight D. Eisenhower, I954 'J 3 methods. They provide an inspiring contrast to the dictatorial methods and backward course of events in Communist China. In these continuing efforts, the free peoples of South Asia can be assured of the support of the United States. In the Middle East, where tensions and serious problems exist, we will show sympathetic and impartial friendship. In Western Europe our policy rests firmly on the North Atlantic Treaty. It will remain so based as far ahead as we can see. Within its organization, the building of a united European community, including France and Germany, is vital to a free and self-reliant Europe. This will be promoted by the European Defense Community which offers assurance of European security. With the coming of unity to Western Europe, the assistance this Nation can render for the security of Europe and the free world will be multiplied in effectiveness. In the Western Hemisphere we shall continue to develop harmonious and mutually beneficial cooperation with our neighbors. Indeed, solid friendship with all our American neighbors is a cornerstone of our entire policy. In the world as a whole, the United Nations, admittedly still in a state of evolution, means much to the United States. It has given uniquely valuable services in many places where violence threatened. It is the only real world forum where we have the opportunity for international presentation and rebuttal. It is a place where the nations of the world can, if they have the will, take collective action for peace and justice. It is a place where the guilt can be squarely assigned to those who fail to take all necessary steps to keep the peace. The United Nations deserves our continued firm support. FOREIGN ASSISTANCE AND TRADE In the practical application of our foreign policy, we enter the field of foreign assistance and trade. Military assistance must be continued. Technical assistance must be maintained. Economic assistance can be reduced. However, our economic programs in Korea and in a few other critical places of the world are especially important, and I shall ask Congress to continue them in the next fiscal year. The forthcoming Budget Message will propose maintenance of the Presidential power of transferability of all assistance funds and will ask 9

Page  10 Public Papers of the Presidents authority to merge these funds with the regular defense funds. It will also propose that the Secretary of Defense have primary responsibility for the administration of foreign military assistance in accordance with the policy guidance of the Secretary of State. The fact that we can now reduce our foreign economic assistance in many areas is gratifying evidence that its objectives are being achieved. By continuing to surpass her prewar levels of economic activity, Western Europe gains self-reliance. Thus our relationship enters a new phase which can bring results beneficial to our taxpayers and our allies alike, if still another step is taken. This step is the creation of a healthier and freer system of trade and payments within the free world-a system in which our allies can earn their own way and our own economy can continue to flourish. The free world can no longer afford the kinds of arbitrary restraints on trade that have continued ever since the war. On this problem I shall submit to the Congress detailed recommendations, after our Joint Commission on Foreign Economic Policy has made its report. ATOMIC ENERGY PROPOSAL As we maintain our military strength during the coming year and draw closer the bonds with our allies, we shall be in an improved position to discuss outstanding issues with the Soviet Union. Indeed we shall be glad to do so whenever there is a reasonable prospect of constructive results. In this spirit the atomic energy proposals of the United States were recently presented to the United Nations General Assembly. A truly constructive Soviet reaction will make possible a new start toward an era of peace, and away from the fatal road toward atomic war. DEFENSE Since our hope is peace, we owe ourselves and the world a candid explanation of the military measures we are taking to make that peace secure. As we enter this new year, our military power continues to grow. This power is for our own defense and to deter aggression. We shall not be aggressors, but we and our allies have and will maintain a massive capability to strike back. Here are some of the considerations in our defense planning: First, while determined to use atomic power to serve the usages of I0

Page  11 Dwight D. Eisenhower, 1954 'l 3 peace, we take into full account our great and growing number of nuclear weapons and the most effective means of using them against an aggressor if they are needed to preserve our freedom. Our defense will be stronger if, under appropriate security safeguards, we share with our allies certain knowledge of the tactical use of our nuclear weapons. I urge the Congress to provide the needed authority. Second, the usefulness of these new weapons creates new relationships between men and materials. These new relationships permit economies in the use of men as we build forces suited to our situation in the world today. As will be seen from the Budget Message on January 2 I, the airpower of our Navy and Air Force is receiving heavy emphasis. Third, our armed forces must regain maximum mobility of action. Our strategic reserves must be centrally placed and readily deployable to meet sudden aggression against ourselves and our allies. Fourth, our defense must rest on trained manpower and its most economical and mobile use. A professional corps is the heart of any security organization. It is necessarily the teacher and leader of those who serve temporarily in the discharge of the obligation to help defend the Republic. Pay alone will not retain in the career service of our armed forces the necessary numbers of long-term personnel. I strongly urge, therefore, a more generous use of other benefits important to service morale. Among these are more adequate living quarters and family housing units and medical care for dependents. Studies of military manpower have just been completed by the National Security Training Commission and a Committee appointed by the Director of the Office of Defense Mobilization. Evident weaknesses exist in the state of readiness and organization of our reserve forces. Measures to correct these weaknesses will be later submitted to the Congress. Fifth, the ability to convert swiftly from partial to all-out mobilization is imperative to our security. For the first time, mobilization officials know what the requirements are for i,ooo major items needed for military uses. These data, now being related to civilian requirements and our supply potential, will show us the gaps in our mobilization base. Thus we shall have more realistic plant-expansion and stockpiling goals. We shall speed their attainment. This Nation is at last to have an up-to-date mobilization base-the foundation of a sound defense program. Another part of this foundation is, of course, our continental transport system. Some of our vital heavy materials come increasingly from I I

Page  12 (f 3 Public Papers of the Presidents Canada. Indeed our relations with Canada, happily always close, involve more and more the unbreakable ties of strategic interdependence. Both nations now need the St. Lawrence Seaway for security as well as for economic reasons. I urge the Congress promptly to approve our participation in its construction. Sixth, military and non-military measures for continental defense must be and are being strengthened. In the current fiscal year we are allocating to these purposes an increasing portion of our effort, and in the next fiscal year we shall spend nearly a billion dollars more for them than in I953. An indispensable part of our continental security is our civil defense effort. This will succeed only as we have the complete cooperation of State Governors, Mayors, and voluntary citizen groups. With their help we can advance a cooperative program which, if an attack should come, would save many lives and lessen destruction. The defense program recommended in the I955 Budget is consistent with all of the considerations which I have just discussed. It is based on a new military program unanimously recommended by the Joint Chiefs of Staff and approved by me following consideration by the National Security Council. This new program will make and keep America strong in an age of peril. Nothing should bar its attainment. The international and defense policies which I have outlined will enable us to negotiate from a position of strength as we hold our resolute course toward a peaceful world. We now turn to matters which are normally characterized as domestic, well realizing that what we do abroad affects every problem at home-from the amount of taxes to our very state of mind. INTERNAL SECURITY Under the standards established for the new employee security program, more than 2,200 employees have been separated from the Federal government. Our national security demands that the investigation of new employees and the evaluation of derogatory information respecting present employees be expedited and concluded at the earliest possible date. I shall recommend that the Congress provide additional funds where necessary to speed these important procedures. From the special employment standards of the Federal government I turn now to a matter relating to American citizenship. The subver 12

Page  13 Dwight D. Eisenhower, I1954 (I 3 sive character of the Communist Party in the United States has been clearly demonstrated in many ways, including court proceedings. We should recognize by law a fact that is plain to all thoughtful citizensthat we are dealing here with actions akin to treason-that when a citizen knowingly participates in the Communist conspiracy he no longer holds allegiance to the United States. I recommend that Congress enact legislation to provide that a citizen of the United States who is convicted in the courts of hereafter conspiring to advocate the overthrow of this government by force or violence be treated as having, by such act, renounced his allegiance to the United States and forfeited his United States citizenship. In addition, the Attorney General will soon appear before your Committees to present his recommendations for needed additional legal weapons with which to combat subversion in our country and to deal with the question of claimed immunity. II. STRONG ECONOMY I turn now to the second great purpose of our government: Along with the protection of freedom, the maintenance of a strong and growing economy. The American economy is one of the wonders of the world. It undergirds our international position, our military security, and the standard of living of every citizen. This Administration is determined to keep our economy strong and to keep it growing. At this moment we are in transition from a wartime to a peacetime economy. I am confident that we can complete this transition without serious interruption in our economic growth. But we shall not leave this vital matter to chance. Economic preparedness is fully as important to the nation as military preparedness. Subsequent special messages and the economic report on January 28 will set forth plans of the Administration and its recommendations for Congressional action. These will include flexible credit and debt management policies; tax measures to stimulate consumer and business spending; suitable lending, guaranteeing, insuring, and grant-in-aid activities; strengthened old-age and unemployment insurance measures; improved agricultural programs; public-works plans laid well in advance; enlarged opportunities for international trade and investment. This mere enu '3

Page  14 Public Papers of the Presidents meration of these subjects implies the vast amount of study, coordination, and planning, to say nothing of authorizing legislation, that altogether make our economic preparedness complete. If new conditions arise that require additional administrative or legislative action, the Administration will still be ready. A government always ready, as this is, to take well-timed and vigorous action, and a business community willing, as ours is, to plan boldly and with confidence, can between them develop a climate assuring steady economic growth. THE BUDGET I shall submit to the Congress on January 2I the first budget prepared by this Administration, for the period July i, I954, through June I955. This budget is adequate to the current needs of the government. It recognizes that a Federal budget should be a stabilizing factor in the economy. Its tax and expenditure programs will foster individual initiative and economic growth. Pending the transmittal of my Budget Message, I shall mention here only a few points about our budgetary situation. First, one of our initial acts was to revise, with the cooperation of the Congress, the Budget prepared before this Administration took office. Requests for new appropriations were greatly reduced. In addition, the spending level provided in that Budget for the current fiscal year has been reduced by about $7,ooo,ooo,ooo. In the next fiscal year we estimate a further reduction in expenditures of more than $5,000,000,000. This will reduce the spending level over the two fiscal years by more than $I2,000,000,000. We are also reducing further our requests for new appropriations. Second, despite the substantial loss of revenue in the coming fiscal year, resulting from tax reductions now in effect and tax adjustments which I shall propose, our reduced spending will move the new budget closer to a balance. Third, by keeping new appropriation requests below estimated revenues, we continue to reduce the tremendous accumulation of unfinanced obligations incurred by the Government under past appropriations. Fourth, until those claims on our Government's revenues are further reduced, the growth in the public debt cannot be entirely stopped. Because of this-because the government's bills have to be paid every '4

Page  15 Dwight D. Eisenhower, 1954 month, while the tax money to pay them comes in with great unevenness within the fiscal year-and because of the need for flexibility to manage this enormous debt, I find it necessary to renew my request for an increase in the statutory debt limit. TAXES The new budget provides for a lower level of taxation than has prevailed in preceding years. Six days ago individual income taxes were reduced and the excess profits tax expired. These tax reductions are justified only because of the substantial reductions we already have made and are making in governmental expenditures. As additional reductions in expenditures are brought gradually but surely into sight, further reductions in taxes can and will be made. When budget savings and sound governmental financing are assured, tax burdens should be reduced so that taxpayers may spend their own money in their own way. While we are moving toward lower levels of taxation we must thoroughly revise our whole tax system. The groundwork for this revision has already been laid by the Committee on Ways and Means of the House of Representatives, in close consultation with the Department of the Treasury. We should now remove the more glaring tax inequities, particularly on small taxpayers; reduce restraints on the growth of small business; and make other changes that will encourage initiative, enterprise and production. Twenty-five recommendations toward these ends will be contained in my budget message. Without attempting to summarize these manifold reforms, I can here illustrate their tendency. For example, we propose more liberal tax treatment for dependent children who work, for widows or widowers with dependent children, and for medical expenses. For the business that wants to expand or modernize its plant, we propose liberalized tax treatment of depreciation, research and development expenses, and retained earnings. Because of the present need for revenue the corporation income tax should be kept at the current rate of 52% for another year, and the excise taxes scheduled to be reduced on April first, including those on liquor, tobacco, gasoline and automobiles, should be continued at present rates. Immediate extension of the Renegotiation Act of 195I is also needed to eliminate excessive profits and to prevent waste of public funds in the purchase of defense materials. I5

Page  16 QI 3 Public Papers of the Presidents AGRICULTURE The well being of our I6o million people demands a stable and prosperous agriculture. Conversely, every farmer knows he cannot prosper unless all America prospers. As we seek to promote increases in our standard of living, we must be sure that the farmer fairly shares in that increase. Therefore, a farm program promoting stability and prosperity in all elements of our agriculture is urgently needed. Agricultural laws now in effect successfully accomplished their wartime purpose of encouraging maximum production of many crops. Today, production of these crops at such levels far exceeds present demand. Yet the laws encouraging such production are still in effect. The storage facilities of the Commodity Credit Corporation bulge with surplus stocks of dairy products, wheat, cotton, corn, and certain vegetable oils; and the Corporation's presently authorized borrowing authority-$6,75o0,0o,ooo- is nearly exhausted. Some products, priced out of domestic markets, and others, priced out of world markets, have piled up in government hands. In a world in which millions of people are hungry, destruction of food would, of course, be unconscionable. Yet surplus stocks continue to threaten the market and in spite of the acreage controls authorized by present law, surpluses will continue to accumulate. We confront two alternatives. The first is to impose still greater acreage reductions for some crops and apply rigid Federal controls over the use of the diverted acres. This will regiment the production of every basic agricultural crop. It will place every producer of those crops under the domination and control of the Federal government in Washington. This alternative is contrary to the fundamental interests, not only of the farmer, but of the Nation as a whole. Nor is it a real solution to the problem facing us. The second alternative is to permit the market price for these agricultural products gradually to have a greater influence on the planning of production by farmers, while continuing the assistance of the government. This is the sound approach. To make it effective, surpluses existing when the new program begins must be insulated from the normal channels of trade for special uses. These uses would include school lunch programs, disaster relief, emergency assistance to foreign friends, and of particular importance the stockpiling of reserves for a national emergency. Building on the agricultural laws of 1948 and 1949, we should estab i6

Page  17 Dwight D. Eisenhower, 1954 lish a price support program with enough flexibility to attract the production of needed supplies of essential commodities and to stimulate the consumption of those commodities that are flooding American markets. Transition to modernized parity must be accomplished gradually. In no case should there be an abrupt downward change in the dollar level or in the percentage level of price supports. Next Monday I shall transmit to the Congress my detailed recommendations embodying this approach. They have been developed through the cooperation of innumerable individuals vitally interested in agriculture. My special message on Monday will briefly describe the consultative and advisory processes to which this whole program has been subjected during the past ten months. I have chosen this farm program because it will build markets, protect the consumers' food supply, and move food into consumption instead of into storage. It is a program that will remove the threat to the farmer of these overhanging surpluses, a program, also, that will stimulate production when a commodity is scarce and encourage consumption when nature is bountiful. Moreover, it will promote the individual freedom, responsibility, and initiative which distinguish American agriculture. And, by helping our agriculture achieve full parity in the market, it promises our farmers a higher and steadier financial return over the years than any alternative plan. CONSERVATION Part of our Nation's precious heritage is its natural resources. It is the common responsibility of Federal, state, and local governments to improve and develop them, always working in the closest harmony and partnership. All Federal conservation and resource development projects are being reappraised. Sound projects now under way will be continued. New projects in which the Federal Government has a part must be economically sound, with local sharing of cost wherever appropriate and feasible. In the next fiscal year work will be started on twenty-three projects that meet these standards. The Federal Government will continue to construct and operate economically sound flood control, power, irrigation and water supply projects wherever these projects are beyond the capacity of local initiative, public or private, and consistent with the needs of the whole Nation. Our conservation program will also take into account the important ' 7

Page  18 Public Papers of the Presidents role played by farmers in protecting our soil resources. I recommend enactment of legislation to strengthen agricultural conservation and upstream flood prevention work, and to achieve a better balance with major flood control structures in the down-stream areas. Recommendations will be made from time to time for the adoption of: A uniform and consistent water resources policy; A revised public lands policy; and A sound program for safeguarding the domestic production of critical and strategic metals and minerals. In addition we shall continue to protect and improve our national forests, parks, monuments and other natural and historic sites, as well as our fishery and wildlife resources. I hope that pending legislation to improve the conservation and management of publicly-owned grazing lands in national forests will soon be approved by the Congress. NATIONAL HIGHWAYS To protect the vital interest of every citizen in a safe and adequate highway system, the Federal Government is continuing its central role in the Federal Aid Highway Program. So that maximum progress can be made to overcome present inadequacies in the Interstate Highway System, we must continue the Federal gasoline tax at two cents per gallon. This will require cancellation of the Y2~ decrease which otherwise will become effective April iSt, and will maintain revenues so that an expanded highway program can be undertaken. When the Commission on Intergovernmental Relations completes its study of the present system of financing highway construction, I shall promptly submit it for consideration by the Congress and the governors of the states. POST OFFICE It is apparent that the substantial savings already made, and to be made, by the Post Office Department cannot eliminate the postal deficit. I recommend, therefore, that the Congress approve the bill now pending in the House of Representatives providing for the adjustment of certain postal rates. To handle the long term aspects of this, I also recommend that the Congress create a permanent commission to establish fair and reasonable postal rates from time to time in the future. i8

Page  19 Dwight D. Eisenhower, I954 '1 3 III. HUMAN PROBLEMS Along with the protection of freedom and maintenance of a strong and growing economy, this Administration recognizes a third great purpose of government: concern for the human problems of our citizens. In a modern industrial society, banishment of destitution and cushioning the shock of personal disaster on the individual are proper concerns of all levels of government, including the federal government. This is especially true where remedy and prevention alike are beyond the individual's capacity. LABOR AND WELFARE Of the many problems in this area, those I shall first discuss are of particular concern to the members of our great labor force, who with their heads, hearts and hands produce so much of the wealth of our country. Protection against the hazards of temporary unemployment should be extended to some 6I2 millions of workers, including civilian Federal workers, who now lack this safeguard. Moreover, the Secretary of Labor is making available to the states studies and recommendations in the fields of weekly benefits, periods of protection and extension of coverage. The Economic Report will consider the related matter of minimum wages and their coverage. The Labor Management Relations Act of I947 is basically a sound law. However, six years of experience have revealed that in some respects it can be improved. On January i, I shall forward to the Congress suggestions for changes designed to reinforce the basic objectives of the Act. Our basic social security program, the Old-Age and Survivors Insurance system, to which individuals contribute during their productive years and receive benefits based on previous earnings, is designed to shield them from destitution. Last year I recommended extension of the social insurance system to include more than Io,ooo,ooo additional persons. I ask that this extension soon be accomplished. This and other major improvements in the insurance system will bring substantial benefit increases and broaden the membership of the insurance system, thus diminishing the need for Federal grants-in-aid for such purposes. A new formula will therefore be proposed, permitting progressive reduction in such grants as the need for them declines. I9

Page  20 Public Papers of the Presidents Federal grant-in-aid welfare programs, now based on widely varying formulas, should be simplified. Concrete proposals on fourteen of them will be suggested to the appropriate Committees. The program for rehabilitation of the disabled especially needs strengthening. Through special vocational training, this program presently returns each year some 6o,ooo handicapped individuals to productive work. Far more disabled people can be saved each year from idleness and dependence if this program is gradually increased. My more detailed recommendations on this and the other social insurance problems I have mentioned will be sent to the Congress on January I4th. HEALTH I am flatly opposed to the socialization of medicine. The great need for hospital and medical services can best be met by the initiative of private plans. But it is unfortunately a fact that medical costs are rising and already impose severe hardships on many families. The Federal Government can do many helpful things and still carefully avoid the socialization of medicine. The Federal Government should encourage medical research in its battle with such mortal diseases as cancer and heart ailments, and should continue to help the states in their health and rehabilitation programs. The present Hospital Survey and Construction Act should be broadened in order to assist in the development of adequate facilities for the chronically ill, and to encourage the construction of diagnostic centers, rehabilitation facilities, and nursing homes. The war on disease also needs a better working relationship between Government and private initiative. Private and non-profit hospital and medical insurance plans are already in the field, soundly based on the experience and initiative of the people in their various communities. A limited Government reinsurance service would permit the private and non-profit insurance companies to offer broader protection to more of the many families which want and should have it. On January i8 I shall forward to the Congress a special message presenting this Administration's health program in its detail. EDUCATION Youth-our greatest resource-is being seriously neglected in a vital respect. The nation as a whole is not preparing teachers or building 20

Page  21 Dwight D. Eisenhower, 1954 schools fast enough to keep up with the increase in our population. The preparation of teachers as, indeed, the control and direction of public education policy, is a state and local responsibility. However, the Federal Government should stand ready to assist states which demonstrably cannot provide sufficient school buildings. In order to appraise the needs, I hope that this year a conference on education will be held in each state, culminating in a national conference. From these conferences on education, every level of government-from the Federal Government to each local school board-should gain the information with which to attack this serious problem. HOUSING The details of a program to enlarge and improve the opportunities for our people to acquire good homes will be presented to the Congress by special message on January 25. This program will include: Modernization of the home mortgage insurance program of the Federal Government; Redirection of the present system of loans and grants-in-aid to cities for slum clearance and redevelopment; Extension of the advantages of insured lending to private credit engaged in this task of rehabilitating obsolete neighborhoods; Insurance of long-term, mortgage loans, with small down payment for low-income families; and, until alternative programs prove more effective, Continuation of the public housing program adopted in the Housing Act of 1949. If the individual, the community, the State and federal governments will alike apply themselves, every American family can have a decent home. VETERANS ADMINISTRATION The internal reorganization of the Veterans Administration is proceeding with my full approval. When completed, it will afford a single agency whose services, including medical facilities, will be better adapted to the needs of those 2o,oooooo veterans to whom this Nation owes so much. SUFFRAGE My few remaining recommendations all relate to a basic right of our citizens-that of being represented in the decisions of the government. 21 51986-60 -

Page  22 Public Papers of the Presidents I hope that the States will cooperate with the Congress in adopting uniform standards in their voting laws that will make it possible for our citizens in the armed forces overseas to vote. In the District of Columbia the time is long overdue for granting national suffrage to its citizens and also applying the principle of local self-government to the Nation's Capital. I urge the Congress to move promptly in this direction and also to revise District revenue measures to provide needed public works improvements. The people of Hawaii are ready for statehood. I renew my request for this legislation in order that Hawaii may elect its State officials and its representatives in Washington along with the rest of the country this fall. For years our citizens between the ages of 18 and 21 have, in time of peril, been summoned to fight for America. They should participate in the political process that produces this fateful summons. I urge Congress to propose to the States a constitutional amendment permitting citizens to vote when they reach the age of 18. CONCLUSION I want to add one final word about the general purport of these many recommendations. Our government's powers are wisely limited by the Constitution; but quite apart from those limitations, there are things which no government can do or should try to do. A government can strive, as ours is striving, to maintain an economic system whose doors are open to enterprise and ambition-those personal qualities on which economic growth largely depends. But enterprise and ambition are qualities which no government can supply. Fortunately no American government need concern itself on this score; our people have these qualities in good measure. A government can sincerely strive for peace, as ours is striving, and ask its people to make sacrifices for the sake of peace. But no government can place peace in the hearts of foreign rulers. It is our duty then to ourselves and to freedom itself to remain strong in all those ways-spiritual, economic, military-that will give us maximum safety against the possibility of aggressive action by others. No government can inoculate its people against the fatal materialism that plagues our age. Happily, our people, though blessed with more 22

Page  23 Dwight D. Eisenhower, 1954 material goods than any people in history, have always reserved their first allegiance to the kingdom of the spirit, which is the true source of that freedom we value above all material things. But a government can try, as ours tries, to sense the deepest aspirations of the people, and to express them in political action at home and abroad. So long as action and aspiration humbly and earnestly seek favor in the sight of the Almighty, there is no end to America's forward road; there is no obstacle on it she will not surmount in her march toward a lasting peace in a free and prosperous world. 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 Representatives (H. Doc. 251, 83d Cong., (vol. IOO, p. 62). 4 eI Special Message to the Congress on Agriculture. January I I, 954 To the Congress of the United States: I submit herewith for the consideration of the Congress a number of recommendations affecting the Nation's agriculture. PART I The agricultural problem today is as serious and complex as any with which the Congress will deal in this session. Immediate action is needed to arrest the growing threat to our present agricultural program and to prevent the subsequent economic distress that could follow in our farming areas. I have given assurances to the American farmer that support of existing agricultural laws, including continuance through I954 of price supports on basic commodities at go percent of parity, was a moral and legal commitment that must be upheld. Along with the fulfillment of this commitment, an unending effort has proceeded in the past twelve months to provide the American farmer his full share of the income produced by a stable, prosperous country. This effort requires for success a new farm program adjusted to existing conditions in the Nation's agriculture. 23

Page  24 (I 4 Public Papers of the Presidents This message presents to the Congress that new program. It is designed to achieve the stability and growth in income over the years to which our farmers are entitled and which the Nation must assure in the interest of all i6o,000,ooo of our people. STUDIES OF THE PROBLEM In constructing its program, this Administration resolved to get the benefit of the best thinking of the Nation's farmers, as well as that of its farm experts. Over sixty different survey groups, and more than 500 of the most eminent farm leaders in the country, have participated in these studies. Agricultural colleges and research institutions contributed their work and thought. Scores of producer, processor and trade groups, as well as national farm organizations, gave their findings and proposals. Mail from thousands of individual farmers, and opinion polls among farmers, have been analyzed and weighed. The bipartisan, broadly-representative National Agricultural Advisory Commission has steadily worked and consulted on the problem for the past twelve months. Numerous commodity organizations have been consulted. Many members of the Congress have shared their own rich experience in this effort. Accordingly, as promised a year ago, the most thorough and comprehensive study ever made of the farm problem and of governmental farm programs has been completed. RECOMMENDATIONS BY COMMODITY The recommendations which have been reaped from all this inquiry are in the best traditions of bipartisan approach to the Nation's agricultural legislation. They recognize that each farm crop has its own problems and that those problems require specific treatment. Accordingly Part II of this message presents detailed proposals for the treatment of sixteen commodities or commodity groups. I here confine myself to those aspects of the farm program in which all farmers and all citizens are equally concerned. SOME FUNDAMENTAL CONSIDERATIONS In its approach to this problem, the Administration has held to the following fundamentals: I. A stable, prosperous and free agriculture is essential to the welfare of the United States. 24

Page  25 Dwight D. Eisenhower, I954 2. A farm program must fairly represent the interests of both producers and consumers. 3. However large surpluses may be, food once produced must not be destroyed. Excessive stocks can be removed from commercial channels for constructive purposes that will benefit the people of the United States and our friends abroad. 4. For many reasons farm products are subject to wider price fluctuations than are most other commodities. Moreover, the individual farmer or rancher has less control over the prices he receives than do producers in most other industries. Government price supports must, therefore, be provided in order to bring needed stability to farm income and farm production. 5. A farm program first of all should assist agriculture to earn its proportionate share of the national income. It must likewise aim at stability in farm income. There should therefore be no wide year-toyear fluctuation in the level of price support. 6. No single program can apply uniformly to the whole farm industry. Some farm products are perishable, some are not; some farms consume the products of other farms; some foods and fibres we export, some we import. A comprehensive farm program must be adaptable to these and other differences, and yet not penalize one group of farmers in order to benefit another. 7. A workable farm program must give the Administration sufficient leeway to make timely changes in policies and methods, including price support levels, within limits established by law. This will enable the Administration to foresee and forestall new difficulties in our agriculture, rather than to attempt their legislative cure after they have arisen. 8. Adjustment to a new farm program must be accomplished gradually in the interest of the Nation's farming population and in the interest of the economy of the Nation as a whole. 9. Research and education, basic functions of the Department of Agriculture since its beginning, are still indispensable if our farmers are to improve their productivity and enlarge their markets. Io. The soil, water, range and forest resources of the United States are the natural foundation of our national economy. From them come our food, most of our clothing, much of our shelter. How well we protect and improve these resources will have a direct bearing on the future standard of living of the whole nation. 25

Page  26 (f 4 Public Papers of the Presidents THE PRESENT AGRICULTURAL SITUATION Present laws discourage increased consumption of wheat, corn, cotton and vegetable oils and encourage their excessive production. The huge and growing surpluses held by the government act as a constant threat to normal markets for these products. Thus, present law produces results which in turn are hurtful to those whom the laws are intended to help. Partly because of these excessive stocks, farm income has fallen steadily over the past three years. The urgency in this situation may be illustrated by a few basic facts. During the past year, the investment of the Commodity Credit Corporation in farm commodities more than doubled, increasing by about $2,500,000,000. As a result the financial obligations of the Corporation are pressing hard against the $6,750,000,000 limitation on its borrowing authority. In order to assure that present price support comn-itments on I953 and I954 crops will be covered, I shall request the Congress to take early action to restore the Corporation's capital losses as of June 30, I953, and to increase its borrowing authority to $8,500,000,000 effective July I, I954. The Government's commodity holdings are enormous. It has investments in more than $2,000,000,000 worth of wheat alone. This includes 440,000,ooo bushels owned outright. About 400,000,000 additional bushels are under loan, the greater share of which the government can expect to acquire. This is more than the domestic wheat requirements of the entire nation for a full year. The cotton carry-over will amount to about 9,600,ooo bales. Here again the carry-over is approximately equal to the domestic needs of the entire nation for a full year. The carry-over of vegetable oils may be about I,500,000,000 pounds, roughly double the carry-over that should normally be maintained. Because such tremendous supplies are already in hand, acreage allotments and marketing quotas have had to be applied to wheat and cotton. An appeal by the government for sharp acreage reductions for corn appears unavoidable. These allotments are expected to reduce the acreage planted to these crops in I954 by the following amounts: wheat, i6.5 million acres; corn, between 5 and 6 million acres; cotton, 3.5 million acres. Without the most careful handling, a diversion within a single year of 25 million acres of productive crop land 26

Page  27 Dwight D. Eisenhower, 1954 about 8% of the total-from their accustomed use could have the most unfortunate impact on the total economy. Even these reductions probably will not appreciably lower the surpluses of wheat and cotton because of the likelihood of increased yields that will be sought from the reduced acreage, and because markets will continue to shrink as a consequence of rigid price supports. As for corn, it is estimated that enough diverted land will be used for oats, barley, and sorghums to hold total supplies of feed grains at present levels, thus largely offsetting the purpose of the corn acreage reduction. It is also expected that some 3,ooo,ooo diverted acres may be planted to soybeans, thus aggravating the tremendous oversupply of vegetable oils. The likely production from other diverted acres threatens producers of potatoes, sugar beets, rice, alfalfa, flaxseed, vegetables and many other crops. Therefore, we must move without further delay to treat the fundamental causes of our present excess supplies of farm commodities. The Nation's agricultural problem is not one of general overproduction: Consumer demand continues at or near record high levels; the average prices of farm products that lack direct price supports have been as high in recent years as those of price-supported products. The problem is rather one of unbalanced farm production, resulting in specific surpluses which are unavoidable under the present rigid price supports. The problem is complicated by the continuing loss of some of those foreign markets on which American agriculture has depended for a large part of its prosperity. MAJOR FEATURES OF FARM PROGRAM The new farm program here proposed is consistent with all the foregoing conditions and fundamental considerations. It has five major features: i. The new program should first be given an opportunity to start operating without the handicap of such large accumulated surpluses. This is to be done by setting aside certain quantities of our surplus commodities, eliminating them from price support computations. 2. The I948 and I949 Agricultural Acts were soundly conceived and received bipartisan support. The principles on which they were based are particularly applicable to the agricultural industry today. Although 27

Page  28 Public Papers of the Presidents based generally upon those principles, the proposed agricultural legislation of 1954 contains certain new features, improvements and modifications. 3. The amendment to the 1949 Agricultural Act providing for mandatory rigid supports, attuned to war needs and demonstrably unworkable in peacetime, will be permitted to expire. After the I954 crops the level of price supports for the basic commodities will be gradually related to supply, promising farmers greater stability of income. 4. Modernized parity is to become effective for all commodities on January I, 1956, as scheduled by law. Provision should be made for moving from the old to modernized parity in steps of five percentage points of the old parity per year until the change from old to modernized parity has been accomplished. 5. The key element of the new program is a gradual adjustment to new circumstances and conditions. Application of modernized parity and the relation of basic crops to supply levels require a transition period to assure a stable farm economy. This transition should be accomplished in a prudent and careful manner to avoid sharp adjustments which would threaten the dislocation of the program. 6. In keeping with the policy of gradual transition, the Secretary of Agriculture will use his authority under the Agricultural Act of I949 to insure that year-to-year variations in price support levels will be limited. 7. The authority of the Secretary of Agriculture to apply price supports at more than 90 percent of parity when the national welfare or national security requires should be continued. PARITY AND PRICE SUPPORTS Under the provisions of the Agricultural Acts of 1948 and I949 the government will: I. Support the prices of basic crops of those farmers who cooperate with acreage allotments and marketing quotas when such are in effect; 2. Announce the price support level for various crops before those crops are planted, insofar as practicable; 3. Support price levels at up to 90 percent of parity. For some products a schedule of price floors will also be provided as authorized by the 1949 Act, ranging from 75% to 90% of parity, according to the relationship of total to normal supply; and 28

Page  29 Dwight D. Eisenhower, I954 4. Vary the price support level one percentage point for every two percentage points of variation in the total supply. If the supply is short, higher support levels will encourage production. If the supply is overabundant, a lowered price will stimulate consumption. Thus, not only will a floor be placed under all basic crop prices, but variations in price and supply will tend to offset each other, and thus stabilize the income of the farmer. MODERNIZED PARITY Parity calculations for most commodities under the old formula are based upon price relationships and buying habits of 40 years ago. Because methods of farm production have changed markedly, the Congress has wisely brought the parity concept up to date. Modernized parity takes account of price relationships during the most recent 10 years. It permits changes in farm technology and in consumer demand to express themselves in the level of price support and restores proper relationships among commodities. For the basic commodities, the law provides that until January i, 1956, the old or modernized parity, whichever is higher, shall be used. For all commodities except wheat, corn, cotton and peanuts, modernized parity is already in use. Equitable treatment of the various commodities requires that we should use modernized parity for all farm products as now provided by law, beginning January I, 1956. INSULATION OF SURPLUSES FROM MARKETS Removal of the threat of huge surpluses of farm commodities from current markets is an essential part of the program here presented. Destruction of surplus commodities cannot be countenanced under any circumstances. They can be insulated from the commercial markets and used in constructive ways. Such uses will include school lunch programs, disaster relief, aid to the people of other countries, and stockpiled reserves at home for use in war or national emergency. I recommend that authority be provided to set aside reserves up to the value of $2,500,000,000 from the stocks presently held by the Commodity Credit Corporation. Broad discretionary authority should be provided to manage these "frozen" reserves. This authority should be coupled with legislative safeguards to prevent the return of these stocks 51986-60 — 6 29

Page  30 (J 4 Public Papers of the Presidents to domestic or foreign markets so as to cause disturbance in normal trade. Perishable stocks should of course be rotated. Stocks of wheat, cotton, vegetable oils and possibly some dairy products should be set aside after this program takes effect. The special circumstances relating to the crop and the date of initiating the proposed new program should govern the time for establishing each such commodity reserve. This reserve program will be effective only if it is carefully integrated with the new program as a whole. The insulation of our excess reserves of food and fiber is an essential first step in launching this new program. EXPANSION OF FARM MARKETS ABROAD One of our largest potential outlets for present surpluses is in friendly countries. Much impetus can be given to the use of a substantial volume of these commodities by substituting to the maximum extent food and fiber surpluses in foreign economic assistance and disaster relief. I shall request a continuation of the authority to use agricultural surpluses for this purpose. It is not enough, however, to rely solely on these measures to move surpluses into consumption. No farm program should overlook continued economic growth and expansion. By revolutionary increases in farm productivity during and since World War II, American farmers have prepared our nation to supply an ever greater proportion of the food needs of the world. Developing commercial markets for this expanded production is part of the larger problem of organizing a freer system of trade and payments throughout the free world. Because our farmers depend to a considerable degree on foreign markets their interests will be particularly served by strengthening of the work of the Department of Agriculture in developing market outlets both at home and abroad. In my Budget Message I shall recommend that sufficient funds be appropriated for this purpose. Meanwhile, a series of trade missions, working in cooperation with our representation overseas, will be sent from the United States, one to Europe, one to Asia, one to South America, to explore the immediate possibilities of expanding international trade in food and fiber. Moreover, the Secretary of Agriculture, in cooperation with the Secretary of State, is organizing discussions for the exchange of views with foreign 30

Page  31 Dwight D. Eisenhower, I954 (I 4 ministers of agriculture on subjects affecting the use of agricultural surpluses and stockpiles. USE OF DIVERTED ACRES In addition to the removal of surpluses and the expansion of markets, special measures must be taken to deal with the use of acreages diverted from crops under allotment. To avoid these difficulties, the number of diverted acres must be reduced to a minimum. The proposed program accomplishes this by increasing the utilization of commodities, thereby reducing the need for acreage restrictions. When land must be diverted from production, it is essential that its use be related to the basic objectives of soil conservation-to protect and to improve that land. Wherever acreage adjustments are especially difficult, Agricultural Conservation Program funds will be used to help farmers make these adjustments in a manner that will advance soil conservation and long-term efficiency. SMALL FARMS The chief beneficiaries of our price support policies have been the 2,000,000 larger, highly mechanized farming units which produce about 85% of our agricultural output. The individual production of the remaining farms, numbering about 3,500,000, is so small that the farmer derives little benefit from price supports. During I954 the Secretary of Agriculture, in cooperation with the National Agricultural Advisory Commission, will give further special attention to the problems peculiar to small farmers. CONCLUSION The agricultural program proposed in this section, and in Part II which follows, will open new market outlets both at home and abroad, not only for current supplies but for future production. It will provide a firm floor on which our farmers can rely while making long-term plans for efficient production and marketing. Year in and year out, it will provide the best prospects for the stability and growth of farm income. It will help the farmer attain full parity in the market. It will avoid creating burdensome surpluses. It will curtail the regimentation of production planning, lessen the problem of diverted acreage, and yield farmIt will bring farm production into closer balance with consumer needs. ers greater freedom of choice and action. 31

Page  32 '9 4 Public Papers of the Presidents It will promote agricultural interests, along with the public interest generally. It will avoid any sharp year to year change in prices and incomes. The program will again stimulate and encourage good farm management. It will prevent arbitrary government control and afford the greatest freedom to the individual farmer. It will provide added incentive to make wise use of all our agricultural resources, and promises the Nation's agriculture a more stable and reliable financial return than any alternative plan. I urge its early approval by the Congress. PART II In this part of the Special Message the principles developed in Part I are applied to specific commodities and commodity groups. WHEAT Wheat is a prime example of the results that ensue from a support pro. gram which fails to adjust to the level of demand. As of December i6, more than $2,ooo,ooo,ooo of Commodity Credit Corporation funds were invested in wheat. The export market, historically vital to our wheat farmers, was itself partly responsible for the expanded production of American wheat during the war and postwar years. To meet the food needs of devastated countries, our farmers continued their high level of production after the war and thus rendered a great service to humanity and to the cause of freedom throughout the world. These expanded outlets have since greatly diminished. Yet the support price has remained at the level associated with wartime needs. The result is that production has continued at wartime levels and, annually, more and more of this production has become surplus. In foreign markets, the high rigid support program of the United States has become an umbrella for competitors. This has created an artificial competitive situation which has cost the American farmer a substantial part of his world wheat market. During the past two years our exports of wheat outside the International Wheat Agreement have fallen from 220 million bushels to 64 million, while Canada's free market sales have risen from 105 to i6i million bushels. Thus our price policy shrinks the very market that could otherwise help absorb our excess stocks of wheat. 32

Page  33 Dwight D. Eisenhower, 1954 q 4 Continuance of present price support levels for wheat would confront us with two undesirable alternatives: ( I ) Curtail production to the amount needed for domestic use and very limited exports. This would require a reduction in wheat acreage of about 40 percent-from the 79 million acres planted in I953 to between 45 and 50 million acres. (2) Subsidize the consumption of wheat by increasingly severe burdens upon the taxpayer. The foregoing alternatives make it increasingly clear that the Nation must depart from the high rigid support level for wheat. It is, therefore, recommended that: ( I ) A substantial part of the present excessive wheat carry-over be set aside as an emergency reserve and removed from the market. (2) After the I 954 crop, the level of price support for wheat be related to supply. Because of the substantial set-aside, computations of the support level under the Agricultural Act of 1949 would insure that changes in support levels would be gradual. The Secretary of Agriculture will use his authority under the Agricultural Act of I 949 to insure that yearto-year variations in price support levels will be limited. (3) Beginning January I, I956, a change be made at the rate of five percent a year from old to modernized parity; (4) Acreage allotments and marketing quotas be continued, with the anticipation, however, that adjusted support levels will increase the incentive to employ some of the present wheat land for other purposes. RICE Price supports for rice at go percent of parity have had no recent application. Market prices have been at or above support levels; restraints on production have not been needed; stocks have not accumulated. Nevertheless, present price supports for rice can inhibit an adjustment, if one should be needed, in the same manner that they prevented the adjustment for wheat, when it was needed. It is therefore recommended that mandatory price supports at go percent of parity for rice be allowed to expire after the 1954 crop. CORN Corn is a dominant factor in the feed-grain-livestock economy. This economy is based on an interdependent process involving the production 33

Page  34 Public Papers of the Presidents of feed, its conversion into livestock products, and its movement into consumption as meat, dairy products and eggs. To hold this economy in balance, prices are a critical factor, encouraging and discouraging livestock production by turns, rationing feed when it is scarce and moving it into use when it is plentiful. For the efficient use of corn, some price freedom is indispensable. A program of high rigid price supports for feed grains involves the danger of curtailing our livestock industries and limiting the quantity of their products to consumers. We have made great strides in improving the efficiency of corn production and in passing some of those gains on to consumers in the form of reasonably priced livestock products. Our corn support program should be designed to encourage those trends. Corn is used in the same manner as pasture and hay on farms where grown. Seldom does more than 25 percent of our corn crop move through commercial channels, and the bulk of this is eventually used as feed by other farmers. Farmers, therefore, are the principal users of corn. It follows that a high support price for farmers who produce corn for sale aggravates the cost-price squeeze on other farmers who normally buy corn and competing feeds to produce livestock products. To guide the corn price support program, the adjustable price and income-balancing features of the Agricultural Act of 1949 on the whole are well suited. The level of support specified is designed to move corn into use. Livestock producers are assured of a steady supply of feed at reasonable prices. The old parity formula holds the support price for corn too high in relation to livestock prices. Use of modernized parity, scheduled by law to become effective on January I, I956, will help to balance these vital price relationships. It is, therefore, recommended that: ( I ) Modernized parity for corn become effective on January I, 1956, with modification limiting the rate of the transition to 5 percent in any single year; (2) Except as provided in (3) and (4) the provisions of the Agricultural Act of I949 become effective for the corn crop of 1955 and subsequent crops; (3) The Act of I949 be amended to provide a change, within the range of 75 to 90 percent of parity, of one percentage point in the support price for corn for each one percentage point of change in supply, thereby 34

Page  35 Dwight D. Eisenhower, 1954 giving greater flexibility to corn support prices and tending to prevent the building up of excessive holdings by government; (4) Legislation be enacted to raise the normal carryover allowance for corn from IO percent to 15 percent of domestic use plus exports, to become effective for I955 and subsequent crops. This would help to assure more stable feed supplies and reduce the impact of current carryover stocks on future production controls and support levels; (5) Upon adoption of the foregoing recommendation, the system of marketing quotas be abolished. FEED GRAINS OTHER THAN CORN The Agricultural Act of I949 authorizes price support for such nonbasic crops as oats, barley, and grain sorghums at not to exceed 90 percent of the parity price. The amounts, terms and conditions of price support operations and the extent to which these operations are carried out are determined or approved by the Secretary of Agriculture upon consideration of various factors specified in the law. Inasmuch as this program has worked satisfactorily, it is recommended that these provisions be continued. MEAT ANIMALS The fact that mandatory price supports are ill adapted to meat animals has been recognized by Secretaries of Agriculture for years. The present law provides tools well adapted to deal with the problems peculiar to the livestock industry. It is recommended, therefore, that the existing conditions with respect to meat animals be continued. DAIRY PRODUCTS The Agricultural Act of 1949 requires price support for dairy products at such levels between 75 and 90 percent of parity as are necessary to assure an adequate supply. Sufficient discretionary authority is provided to operate a satisfactory program. It is recommended that these provisions of law be continued. POULTRY AND EGGS Price supports have not been generally desired by the poultry industry. Temporarily, and in special circumstances, price supports can, however, be helpful. 35

Page  36 4f 4 Public Papers of the Presidents It is recommended, therefore, that: ( i ) Provisions of the I 949 Act be continued for poultry and eggs, with discretionary authority for the Secretary of Agriculture to support prices at not to exceed go percent of parity; (2) Discretionary authority be continued to purchase poultry products for use in the school lunch program, in non-profit institutions, and for certain other purposes. COTTON Cotton, like wheat, is an export crop whose price is currently supported above the world level. Carryover stocks in the United States have been accumulating rapidly in the past two years. These stocks, probably close to 9,600,ooo bales by next August, will approximate a full year's domestic requirements. Our high rigid price support program stimulates competition of foreign producers and reduces exports. During the twenties and early thirties our net exports of cotton generally exceeded domestic consumption. Current exports amount to hardly a third of our larger domestic requirements. Our problem is to develop a program which will help growers adjust gradually to changing circumstances, including foreign and domestic competition of rising intensity. The Agricultural Act of I949 provides price supports for cotton at a level between 75 and go percent of parity, dependent on the supply. Thus changes in supply and price would tend to offset one another, giving a relatively stable income. This plan will allow limited price variation, thus affording growers reasonable market stability and yet offering added inducement for heavier use of cotton in years of abundant supplies. Separate legislation has made the adjustable pricing provisions of the I949 Act ineffective for cotton. The Secretary of Agriculture is now required by law to set such marketing quotas and allotments that the required price support level can seldom if ever fall below go percent of parity. Instead of relying in part on the schedule of price floors intended in the Act of I 949, the law requires reliance almost entirely on production controls. It is recommended, therefore, that: i. A substantial part of the present large carryover of cotton now in prospect be set aside as an emergency reserve and removed from the market. 36

Page  37 Dwight D. Eisenhower, 1954 2. After the I954 crop, the level of price support for cotton be related to supply. Because of the substantial set-aside, computations of the support levels, under the Agricultural Act of 1949, would insure that changes in support levels would be gradual. The Secretary of Agriculture will use his authority under the Agricultural Act of I949 to insure that year-to-year variations in price support levels will be limited. 3. Modernized parity becomes effective for cotton as scheduled on January i, 1956. 4. The Congress repeal the present provisions whereby the maximum use of production restrictions before there can be any reduction of the price support level is required. TOBACCO Tobacco farmers have demonstrated their ability to hold production in line with demand at the supported price without loss to the government. The relatively small acreage of tobacco and the limited areas to which it is adapted have made production control easier than for other crops. The level of support to cooperators is go percent of the parity price in any year in which marketing quotas are in effect. It is recommended that the tobacco program be continued in its present form. PEANUTS The law requires that mandatory go percent supports for peanuts continue through I954 and that old parity remain in effect until the end of I955. This program, which has experienced some difficulties in adjusting supplies to demand at the supported price, can operate successfully with certain changes. It is recommended that: ( i ) The Agricultural Act of I 949 become effective for peanuts on January I, I955. (2) The shift to modernized parity for peanuts begins as now provided by law on January i, I956. (3) A transitional provision be provided to limit the change from the old to modernized parity to not more than 5 percent per year. 37

Page  38 Public Papers of the Presidents TUNG NUTS AND HONEY Tung nuts and honey should be in the same category with other products for which price supports are permissive rather than required. It is recommended, therefore, that the mandatory price supports for these commodities be discontinued. OIL SEEDS Price support is authorized for soybeans, cottonseed and flax at not to exceed 90 percent of the parity price. It is recommended that the provisions of the Agricultural Act of I949 be continued for these commodities. FRUITS AND VEGETABLES Existing law authorizes the use of 30 percent of general tariff revenues to encourage the exportation and domestic consumption of agriculture commodities. In the event of market distress these funds may be used for limited purchases of market surpluses of such perishable commodities as fruits and vegetables. No purchases may be undertaken unless outlets are available. It is recommended that: (I) Present provisions for the use of funds from tariff revenues be continued. (2) Authorization for the use of marketing agreements be continued and liberalized to (a) provide for inclusion of additional commodities to which marketing agreements are adapted; (b) enlarge and clarify the authorization for agencies established under marketing orders to engage in or finance, within reasonable limits, research work from funds collected pursuant to the marketing order; (c) provide for the continuous operation of marketing agreements, despite short-term price variations, where necessary to assure orderly distribution throughout the marketing season; and (d) enlarge and clarify the authorization for the use of marketing orders to promote marketing efficiency, including the regulation of containers and types of pack for fresh fruits and vegetables. POTATOES It is recommended that legislation be enacted to allow assistance to potato growers in the same manner as is available for producers of other vegetables and of fruits. 38

Page  39 Dwight D. Eisenhower, 1954 (l 4 SUGAR The Sugar Program, extended in I95I, is operating in a generally satisfactory manner. It is recommended that this program be continued in its present form. WOOL Price support for wool above the market level has resulted in heavy accumulations of wool-now nearly ioo million pounds-by the Commodity Credit Corporation and the substitution of imported for domestic wool in our home consumption. Two-thirds of the wool used in the United States is imported; yet our own wool piles up in storage. A program is needed which will assure equitable returns to growers and encourage efficient production and marketing. It should require a minimum of governmental interference with both producers and processors, entail a minimum of cost to taxpayers and consumers; and align itself compatibly with over-all farm and international trade policies. It is recommended that: (i ) Prices of domestically produced wool be permitted to seek their level in the market, competing with other fibers and with imported wool, thus resulting in only one price for wool-the market price; (2) Direct payments be made to domestic producers sufficient, when added to the average market price for the season, to raise the average return per pound to go percent of parity; (3) Each producer receive the same support payment per pound of wool, rather than a variable rate depending upon the market price he had obtained. If each grower is allowed his rewards from the market, efficient production and marketing will be encouraged. This has the further advantage of avoiding the need for governmental loans, purchases, storage, or other regulation or interference with the market. Further, it imposes no need for periodic action to control imports in order to protect the domestic price support program. (4) Funds to meet wool payments be taken from general revenues within the amount of unobligated tariff receipts from wool. (5) Similar methods of support be adopted for pulled wool and for mohair, with proper regard for the relationships of their prices to those.of similar commodities. DWIGHT D. EISENHOWER 39

Page  40 Public Papers of the Presidents 5 ei Special Message to the Congress on Labor-Management Relations. January I I, 1954 To the Congress of the United States: I submit herewith for the consideration of the Congress a number of legislative recommendations affecting labor-management relations. These recommendations are in the interests both of working men and women, and our business and industrial community. In a broader sense, they are in the interests of all our people, whose prosperity is in so, great a degree dependent on the existence of genuine mutual respect and good feeling between employers and employees. This field of legislation has had a long, contentious history. It has taken time for objective principles to emerge which can command mutual acceptance of the fundamentals which govern the complex labor-management relationship. Although the process is not and perhaps never will be complete, we have now achieved a measure of practical experience and emotional maturity in this field which, I do not doubt, is responsible for the relatively peaceful character of recent industrial relations. No drastic legislative innovations in this field are therefore desirable or required at this time. Federal labor-management legislation at best can provide only the framework in which free collective bargaining may be conducted. It should impose neither arbitrary restrictions nor heavy-handedness upon a relationship in which good will and sympathetic understanding should be the predominant characteristics. The National Labor Relations Act-known as the Wagner Act and adopted in 1935 by bipartisan majorities-came into being because American working men and women needed the protection of law in order to guarantee them the free exercise of their right to organize into unions and to bargain collectively through representatives of their own choosing. As unions became strong, a need arose to protect the legitimate rights of employees and employers and to protect the general public from the consequences of unresolved labor disputes that created emergencies endangering the health or safety of the nation. To meet this need the Labor-Management Relations Act, 1947, commonly known as the TaftHartley Act, was adopted by bipartisan majorities. 40

Page  41 Dwight D. Eisenhower, 1954 In enacting labor-management legislation, the Congress has always built upon the legislation which preceded it. We have never turned backward. The Labor-Management Relations Act, I947, was no exception. It built upon the National Labor Relations Act, and not only reaffirmed, but reinforced the right of working men and women to organize into unions and to bargain collectively with their employer. The protection of this right is firmly fixed in our law and should remain a permanent policy of our Government. The Labor-Management Relations Act, 1947, is sound legislation. Experience gained in the operation of the Act, however, indicates that changes can be made to reinforce its basic objectives. In the area of employer-employee relations the injunction has always been a controversial process. It is apparent, however, that where irreparable damage threatens, the restraining effect of an injunction is required in the interest of simple justice. Nevertheless, where a collective bargaining relationship exists, the issuance of an injunction often has the effect of making settlement of the dispute which led to the injunction more difficult. Therefore, I recommend that whenever an injunction is issued under the National Labor Relations Act where a collective bargaining relationship exists between the parties, the Federal Mediation and Conciliation Service shall empanel a special local board to meet with the parties in an effort to seek a settlement of their dispute. I further recommend that in secondary boycott cases, the application for an injunction be discretionary. The prohibitions in the Act against secondary boycotts are designed to protect innocent third parties from being injured in labor disputes that are not their concern. The true secondary boycott is indefensible and must not be permitted. The Act must not, however, prohibit legitimate concerted activities against other than innocent parties. I recommend that the Act be clarified by making it explicit that concerted action against (i) an employer who is performing "farmed-out" work for the account of another employer whose employees are on strike or (2) an employer on a construction project who, together with other employers, is engaged in work on the site of the project, will not be treated as a secondary boycott. As the Act is now written, employees who are engaged in an economic strike are prohibited from voting in representation elections. In order to 4I

Page  42 (I 5 4~5 Public Papers of the Presidents make it impossible for an employer to use this provision to destroy a union of his employees, I re-commend that, in the event of an economic strike, the National Labor Relations Board be prohibited from considering a petition on the part of the employer which challenges the representation rights of the striking union. I further recommend that for a period of four months after the commencement of the strike, the Board be prohibited from considering a petition on the part of any other union which claims to represent the employees. The prohibition against considering a petition by the employer should continue as long as the strike continues, provided, however, that a reasonable limit of time, which I suggest be one year, be stipulated. The Act has been interpreted to mean that even though a collective bargaining contract is in force, either party may insist that the contract be reopened for the purpose of bargaining about matters that were not the subject of negotiations when the contract was made. Thus stabilization of the relationship between the parties for the period of the contract can be completely frustrated. I recommend that the law be amended so as to protect both parties to a valid collective bargaining agreement from being required to negotiate during its term unless the contract so authorizes or both parties mutually consent. The National Emergency provisions of the Act are essential to the protection of the National health and safety. As the Act is now written, the board of inquiry established to inquire into the facts of the dispute causing the emergency must report the facts to the President without recommendations. In order that the President may have the authority to require the board's recommendations, I recommend that after he has received and made available to the public the last report of the board of inquiry (if the dispute has not then been settled), he be empowered to reconvene the board and direct it to make recommendations to him for settlement of the dispute. Although the recommendations of the board would not be binding upon the parties, yet there is real value in obtaining the recommendations of informed and impartial men for the settlement of a dispute which imperils the national health and safety. Employees engaged in the construction, amusement and maritime industries have unique problems because their employment is usually casual, temporary or intermittent. I recommend that in these industries 42

Page  43 Dwight D. Eisenhower, 1954 ( 5 the employer be permitted to enter into a pre-hire contract with a union under which the union will be treated initially as the employees' representative for collective bargaining. I also recommend that in these industries the employer and the union be permitted to make a unionshop contract under which an employee, within seven days after the beginning of his employment, shall become a member of the union. Under the Act as presently written, both unions and employers are made responsible for the actions of their agents. In order to make it clear that a union cannot be held responsible for an act of an individual member solely because of his membership in the union, I recommend that the Act be amended to make the traditional common law rules of agency applicable. The Act presently provides that the facilities of the National Labor Relations Board are available only to those unions whose officials execute affidavits disclaiming membership in Communist organizations. The Communist disclaimer provisions are not presently applicable to employers. I recommend that they be made applicable. Specific proposals for legislation dealing with Communist infiltration generally are now under study. If such legislation is enacted, making the Communist disclaimer provisions of the Act unnecessary, I then will recommend that they be entirely eliminated. The right of free speech is fundamental. Congress should make clear that the right of free speech, as now defined in the Act, applies equally to labor and management in every aspect of their relationship. The Act presently prohibits an employer from making payment to a union to assist in the financing of union welfare funds unless the fund meets certain standards. These standards are not adequate to protect and conserve these funds that are held in trust for the welfare of individual union members. It is my recommendation that Congress initiate a thorough study of welfare and pension funds covered by collective bargaining agreements, with a view of enacting such legislation as will protect and conserve these funds for the millions of working men and women who are the beneficiaries. The Act should make clear that the several states and territories, when confronted with emergencies endangering the health or safety of their citizens, are not, through any conflict with the Federal law, actual or implied, deprived of the right to deal with such emergencies. The need 43

Page  44 Public Papers of the Presidents for clarification of jurisdiction between the Federal and the State and Territorial governments in the labor-management field has lately been emphasized by the broad implications of the most recent decision of the Supreme Court dealing with this subject. The Department and agency heads concerned are, at my request, presently examining the various areas in which conflicts of jurisdiction occur. When such examination is completed, I shall make my recommendations to the Congress for corrective legislation. In the employer-employee relationship there is nothing which so vitally affects the individual employee as the loss of his pay when he is called on strike. In such an important decision he should have an opportunity to express his free choice by secret ballot held under Government auspices. There are two other changes in the law that I recommend. The authorization which an individual employee gives to his employer for the check-off of the employee's union dues should be made valid until the termination of the collective bargaining contract which provides for such check-off, unless the employee sooner revokes such authorization. The provisions of the Act which require reports from unions concerning their organization and finances should be simplified so as to eliminate duplication in the information required by such reports. I hope that the foregoing changes will be enacted by Congress promptly, for they will more firmly establish the basic principles of the law. The appropriate Committees of the Congress will, I am certain, wish to keep the law under continuous study and in the light of experience under it propose further amendments to implement its objectives and constantly improve its administration. Government should continue to search diligently for sound measures to improve the lot of the working man and woman, mindful that conditions and standards of employment change as the products, habits and needs of men and women change. It will be continually a challenge to Government to sense the aspirations of the working people of our country, that all may have the opportunity to fairly share in the results of the productive genius of our time, from which comes the material blessings of the present and a greater promise for the future. DWIGHT D. EISENHOWER 44

Page  45 Dwight D. Eisenhower, 1954 j 6 6 eJ Special Message to the Senate Transmitting the Mutual Defense Treaty Between the United States and the Republic of Korea. January I I, I 954 To the United States Senate: With a view to receiving the advice and consent of the Senate to ratification, I transmit herewith the Mutual Defense Treaty between the United States of America and the Republic of Korea signed at Washington on October I, 1953. I transmit also for the information of the Senate a document containing the joint statement by President Syngman Rhee of the Republic of Korea and by the Secretary of State on August 8, I 953, on the occasion of the initialing of the Mutual Defense Treaty in Seoul, and the text of an address by the Secretary of State on the occasion of the signing of the Mutual Defense Treaty on October I, I953. There is further transmitted for the information of the Senate the report made to me by the Secretary of State regarding the aforesaid treaty. The Mutual Defense Treaty signed by the United States and the Republic of Korea is designed to deter aggression by giving evidence of our common determination to meet the common danger. It thus reaffirms our belief that the security of an individual nation in the free world depends upon the security of its partners, and constitutes another link in the collective security of the free nations of the Pacific. I recommend that the Senate give early favorable consideration to the treaty submitted herewith, and advise and consent to its ratification. DWIGHT D. EISENHOWER NOTE: The treaty and related papers are the Senate on January 26 and after ratipublished in Senate Executive A, 83d fication entered into force November I7, Congress. The treaty was approved by 1954 (5 UST 2368). 45 tewlston Public Library Lewiston, Maine

Page  46 Public Papers of the Presidents 7 41 Letter to Julius Ochs Adler, Chairman, National Security Training Commission, Concerning the Reserve Establishment. January 12, 1954 Dear General Adler: It meant a great deal to me to have the opportunity to discuss with you plans for arriving at decisions relative to the size and composition of our reserve forces. It will be of immeasurable assistance to the Office of Defense Mobilization, in its preparation of plans for presentation to the National Security Council for developing and maintaining an adequate reserve establishment, to have the benefit of the continued counsel of the National Security Training Commission. Because of the wealth of information and experience with this problem which your Commission has gained in its long studies and investigations I suggest that you arrange to work closely with the Director of Defense Mobilization, Arthur S. Flemming. The expression of deep appreciation I feel for the long hours of effort that you and your associates have contributed in the preparation of the excellent report submitted to me has been too long delayed. Your report will be of great value to all who are concerned with meeting this great national military need. May I as well convey my personal regards to you and to each member of your Commission. Sincerely, DWIGHT D. EISENHOWER NOTE: The report of the National Secu- the President on a Reserve Forces Trainrity Training Commission is entitled ing Program" (159 pp., Government "20th Century Minutemen, a Report to Printing Office, I954). 46

Page  47 Dwight D. Eisenhower, 1954 qi 8 8 e Citations Accompanying Medals of Honor Presented to William R. Charette, Edward R. Schowalter, Jr., and Ernest E. West. 7anuary I2, I954 THE PRESIDENT of the United States in the name of The Congress takes pleasure in presenting the Medal of Honor to WILLIAM R. CHARETTE HOSPITAL CORPSMAN THIRD CLASS UNITED STATES NAVY for service as set forth in the following CITATION: For conspicuous gallantry and intrepidity at the risk of his life above and beyond the call of duty as a Medical corpsman, serving with a Marine Rifle Company, in action against enemy aggressor forces in Korea during the early morning hours of 27 March 1953. Participating in a fierce encounter with a cleverly concealed and well-entrenched enemy force occupying positions on a vital and bitterly contested outpost far in advance of the main line of resistance, CHARETTE repeatedly and unhesitatingly moved about through a murderous barrage of hostile small-arms and mortar fire to render assistance to his wounded comrades. When an enemy grenade landed within a few feet of a Marine he was attending, he immediately threw himself upon the stricken man and absorbed the entire concussion of the deadly missile with his own body. Although sustaining painful facial wounds, and undergoing shock from the intensity of the blast which ripped the helmet and medical aid kit from his person, CHARETTE resourcefully improvised emergency bandages by tearing off part of his clothing, and gallantly continued to administer medical aid to the wounded in his own unit and to those in adjacent platoon areas as well. Observing a seriously wounded comrade whose armored vest had been torn from his body by the blast from an exploding shell, he selflessly removed his own battle vest and placed it upon the helpless man although fully aware of the added jeopardy to himself. Moving to the side of another casualty who was suffering ex 47

Page  48 q 8 Public Papers of the Presidents cruciating pain from a serious leg wound, CHARETTE stood upright in the trench line and exposed himself to a deadly hail of enemy fire in order to lend more effective aid to the victim and to alleviate his anguish while being removed to a position of safety. By his indomitable courage and inspiring efforts in behalf of his wounded comrades, CHARETTE was directly responsible for saving many lives. His great personal valor reflects the highest credit upon himself and enhances the finest traditions of the United States Naval Service. DWIGHT D. EISENHOWER THE PRESIDENT of the United States of America, authorized by Act of Congress March 3, i863 has awarded in the name of The Congress the Medal of Honor to FIRST LIEUTENANT EDWARD R. SCHOWALTER, JR., UNITED STATES ARMY for conspicuous gallantry and intrepidity at the risk of his life above and beyond the call of duty in action with the enemy: First Lieutenant Edward R. Schowalter, Jr., o64 446, Infantry, United States Army, Commanding, Company A, 3ISt Infantry Regiment, 7th Infantry Division, distinguished himself by conspicuous gallantry and indomitable courage above and beyond the call of duty in action against the enemy near Kumhwa, Korea, on 14 October I952. Committed to attack and occupy a key approach to the primary objective, the First Platoon of his company came under heavy vicious small arms, grenade and mortar fire within fifty yards of the enemy-held strongpoint, halting the advance and inflicting several casualties. The Second Platoon moved up in support at this juncture, and although wounded, Lieutenant Schowalter continued to spearhead the assault. Nearing the objective he was severely wounded by a grenade fragment but, refusing medical aid, he led his men into the trenches and began routing the enemy from the bunkers with grenades. Suddenly from a burst of fire from a hidden cave off the trench he was again wounded. Although suffering from his wounds, he refused to relinquish command and continued issuing orders and encouraging his men until the commanding ground was secured and then he was evacuated. Lieutenant Schowalter's unflinching courage, 48

Page  49 Dwight D. Eisenhower, 1954 I 8 extraordinary heroism and inspirational leadership reflect the highest credit upon himself and are in keeping with the highest traditions of the military service. DWIGHT D. EISENHOWER THE PRESIDENT of the United States of America, authorized by Act of Congress March 3, 1863 has awarded in the name of The Congress the Medal of Honor to PRIVATE FIRST CLASS ERNEST E. WEST, UNITED STATES ARMY for conspicuous gallantry and intrepidity at the risk of his life above and beyond the call of duty in action with the enemy: Private First Class Ernest E. West, US 52 151 286, Infantry, United States Army, a member of Company L, I4th Infantry Regiment, 25th Infantry Division, distinguished himself by conspicuous gallantry above and beyond the call of duty in action against the enemy near Sataeri, Korea, on 12 October I952. He voluntarily accompanied a contingent to locate and destroy a reported enemy outpost. Nearing the objective, the patrol was ambushed and suffered numerous casualties. Observing his wounded leader lying in an exposed position, he ordered the troops to withdraw, then braved intense fire to reach and assist him. While attempting evacuation, he was attacked by three hostile soldiers employing grenades and small arms fire. Quickly shifting his body to shelter the officer, he killed the assailants with his rifle, then carried the helpless man to safety. He was critically wounded and lost an eye in this action, but courageously returned through withering fire and bursting shells to assist the wounded and, while evacuating two comrades, closed with and killed three more of the foe. Private West's indomitable spirit, consummate valor and intrepid actions inspired all who observed him, reflecting highest credit upon himself and upholding the honored traditions of the military service. DWIGHT D. EISENHOWER NOTE: The medals were presented by the of the citations was read by Comdr. President at the White House. The text Edward L. Beach, Naval Aide to the President. 49

Page  50 1 9 Public Papers of the Presidents 9 (J The President's News Conference of January I3, I954. THE PRESIDENT. Ladies and gentlemen, all this picture-taking session reminds me that this is our first meeting of the year, and so it gives me a chance to say to those that I have not seen before, "Happy New Year." I hope that each of you gets that salary raise that has been so long overdue. Q. Merriman Smith, United Press: May we quote that, sir? THE PRESIDENT. If anyone thinks that will have any influence with your publisher, you are at liberty to quote it. I think, ladies and gentlemen, I have no particular statement of my own. It seems to me I have been making a lot of them lately, and so with your permission we will make this easier by going to questions. Q. Mr. Smith: Mr. President, after your labor message to Congress, there was some confusion as to precisely what you meant in your recommendation about Government auspices controlling strike votes. Did you mean, sir, that a secret strike ballot should be taken prior to a strike or during a strike? THE PRESIDENT. Actually, of course, what I was trying to establish was a principle. Nearly all of the suggestions I made for the amendment of the Taft-Hartley were in that tenor, that here is something that should be done. I carefully have avoided the exact details of how these things should be done, because we well know that is a province of the Congress and of its committees in their investigations. My function, as I see it, is to lay down for their consideration the things that I believe to be principle, and that is exactly what I tried to do there. So I would accept anything that looks the most practicable and feasible in the circumstances. Q. John Herling, Editors Syndicate: Mr. President, in view of the sharp disagreement as to the meaning and intention of your recommendation among Republican leadership, not to mention labor leadership as well, would you insist, sir, on having this proposal a part of "must" labor legislation? THE PRESIDENT. Ladies and gentlemen, within reason, I think we know and can identify those features of bills or of a legislative program that could be classed as "must." They are the things that have to be 50

Page  51 Dwight D. Eisenhower, 1954 (J 9 done. Now, there are certain things which I believe are for the good of the country. I have arrived at those conclusions after long study with all my associates, with people over the country, and I am going to fight for them where I think they are important. I naturally cannot tell you in advance which I am going to consider the most important and the least important. I don't know how they will come up in Congress and how they will be handled. So I am not going to identify particular details as "must" and "not must" except as they apply to supply bills, legislative bills, security bills in their main outline, such things as that, or where laws expire and something has to be done. Those things must be handled, and they must be handled in a way that will allow the country to go ahead and function properly. I am not going, though, to try to take each feature of the things I have said and am going to say-I am going to send down lots more messages to Congress-and in each feature of them say that is "must" or that is "not must." I don't think that is my function at least at this moment. Q. David P. Sentner, Hearst Newspapers: Mr. President, could you say what percentage of your recommended proposals to Congress you would expect to be passed at this session? THE PRESIDENT. I can't guess. Look: I want to make this very clear. I am not making recommendations to Congress just to pass the time away or to look good or for anything else. Everything I send to Congress I believe to be, and the mass of my associates believe to be, for the good of this country; therefore, I am going to work for their enactment. Make no mistake about that. That is exactly what I am here for and what I intend to do. But for me to try to say what percentage of these things is absolutely necessary to the existence of this country for another year or until the next session, that is going too far for me. Q. Nat S. Finney, Buffalo Evening News: Mr. President, I would like to ask a question about your current position on the Bricker amendment, and try to ask it so that it will not be confusing. Will you accept or agree to an amendment which would make it impossible to use the treaty-making power to impose conditions on the individual States which cannot be imposed by regular legislation? THE PRESIDENT. I must say, you opened up a subject that really requires the space of a lecture to get at exactly what we mean. But I must call this to your attention. When you are talking about the rights 5'

Page  52 ( 9 Public Papers of the Presidents of the individual States-and I suppose if you were going to class me as anything else, you would class me as a States' Righter-I would like each of you to ask yourself this question: why was the Constitution formed, and to replace the old Articles of Confederation? If you will look up the history of the time, you will find that each one of the States under the Articles of Confederation had a right to repudiate a treaty. Because of this fact, the Founding Fathers, who I still think were probably the wisest group of men that were ever brought together in this country, indeed possibly in the world, or such in this governmental field-that is what I am talking about-provided that a treaty properly ratified should take precedence over any State law, including that State's constitution. That is so that the people, the individual, the representative of the United States-and that means your President and your Secretary of State, or both acting together-meeting a like representative from other nations, can represent one government, and can speak with that much authority. They are not trying the impossible task of representing 48 governments. Now, there has been a very great deal of concern developing for fear that the treaty-making power may be used to contravene our Constitution. I think some of you, at least, may recall that last July, when Senator Knowland introduced a substitute amendment for the Bricker amendment, I issued a statement. In that statement I said there were certain things to which I would gladly agree, a statement which said that any treaty or any other executive or any kind of international agreement that contravened any article of our Constitution should be null and void, and I would agree to that. Secondly, I would agree that the votes on these treaties, where they are passed by two-thirds vote in the Senate, should be by yeas and nays to record the purpose of that on the part of its advocates, and to record who was there and how many Senators actually approved. Also, I stated that the Senate could, whenever it chose, include in its approval that anything in that treaty affecting the internal affairs of the United States could become effective only by an act of Congress. And, ladies and gentlemen, let me point out one thing else. The power of Congress, by subsequent action, to nullify any article of a treaty has never been questioned. This fear, though, that our Constitution might 52

Page  53 Dwight D. Eisenhower, 1954 be damaged has led me to agree to all those amendments. But when you come down to this, that we have to go right back to the general system that prevailed before our Constitution was adopted, then I certainly shall never agree. Now, as all of you know, it takes a long time to get an amendment passed. This thing, with me, is completely objective. It is completely my concern and my belief of what is good for the future of the United States, not the present. It cannot affect these next 3 years, I am quite sure. Q. Milton Friedman, Jewish Telegraphic Agency: Mr. President, can you tell us whether you still favor revision of the McCarran-Walter Immigration Act, and whether there was anything significant in your omission of this item from your State of the Union Message? THE PRESIDENT. No, there was no significance in its omission. As a matter of fact, there were many, many things omitted, and I think I stated that some of these things that were omitted would be the subject of later comment. It happens that this year, up until this time, the details of any studies made on the McCarran Act by the responsible departments have not been submitted to me. And therefore whether we are going to recommend immediate revision, I can't say for certain. Q. Daniel Schorr, CBS-Radio: Mr. President, is there anything new on the question of channeling defense contracts to chronic unemployment areas? THE PRESIDENT. Well, there is nothing new on it. There has been, I think, a certain misapprehension about it. You know, the proportion of holdback is normally small in any contract; and then the Secretary of Defense, or the Office of Defense Mobilization, I believe, can channel these contracts to other places only in the event that the lowest bid achieved under normal processes is equaled in that area. It is an attempt to help out in cases of unemployment with useful work rather than with work that wouldn't be so useful to the United States. But I believe that there has been an exaggerated idea that an entire contract would be shoved somewhere just because they had unemployment. There is no such intent. Q. Mr. Schorr: Will there be any change in that policy as a result of some recent criticism? THE PRESIDENT. I am not one of those that uses the word "never" very 51986-60 7 53

Page  54 q g Public Papers of the Presidents often. I thought when I approved the policy, it was a sounid one. I have been proved wrong before in my life, so I am not "going to say I can't be proved wrong. But I certainly think that the objective of that policy was good; it was reasonable and certainly was applied only in a limited way. But I am certainly always going to look at it if I see a legitimate case. Q. John H. Kelso, Boston Post: In line with that same question, a group of New England Congressmen said yesterday that New -England is now in a depression, not a recession, and they said that they still had hope, particularly a person from Lawrence, because you told them you would help them during the campaign. Have you any specific plans to help that area? THE PRESIDENT. You mean, to help Lawrence? Q. Mr. Kelso: And New England, yes. THE PRESIDENT. I must say this: I would repeat what I have said often before. There are special problems; there can be no special privileges, as I see it, applying to areas or to class or to anything else. Now, whatever is feasible and possible in the way of credit or work for them or helping small business, which is the big thing that we have talked about there, anything that is feasible within the power of this Government will be done to help all the United States, not merely to help any special section. But if one special section needs these things more than another, then it naturally gets more help, like in the drought problem. We go into the drought problem not merely because some farmers are suffering and cattle are dying, but because it is good for all the United States to get that thing straightened out and do the best we can with it. And that same approach will be made to any other section of the country. Q. John L. Cutter, United Press: Mr. President, in discussing the Bricker amendment application, and so forth, you talked about looking to the future, and specified that it cannot affect anything within the next 3 years, I am sure. Does that indicate that you do not intend to remain in office after 3 years? THE PRESIDENT. There is one thing that I am always advised by my political friends: that is one thing that I never should talk about; if I inadvertently mentioned it here because I was thinking in a specific term, I apologize. Maybe you had better delete the "3 years." Q. Anthony H. Leviero, New York Times: Mr. President, your proposal to deprive conspirators against the Government of citizenship has 54

Page  55 Dwight D. Eisenhower, 1954 ^ 9 aroused considerable interest. Is it your aim to redefine the line between disloyalty and good citizenship? Could you tell us that? THE PRESIDENT. No, it wasn't that. Here is the point. As of now, there is a law that deprives a man of citizenship if he is convicted of an actual attempt to destroy this Government by force. I believe that if a man is convicted in the courts of deliberately conspiring to do that, he is just as guilty as the attempt. And therefore I am putting him in the same class as the man that attempts. The Department of Justice has worked up a little list of things, what it means to a man when he loses his citizenship; and I am merely putting a conspirator in the same class as a man who actually attempts it. Q. Raymond P. Brandt, St. Louis Post-Dispatch: Mr. President, will not that require additional legislation? THE PRESIDENT. Yes, I think it will. Q. Mr. Brandt: It will? THE PRESIDENT. Now, don't let me-I think it will. Q. Mr. Brandt: Can we get the list from the Department of Justice? THE PRESIDENT. I think so. Q. Paul R. Leach, Chicago Daily News: Mr. President, adding conspiracy to the law of 1907, amended in I940, I believe, is that all that is required? THE PRESIDENT. I would think so. Now, you are asking me a question you had better ask General Brownell. I think I am correct-we talked this over at length; but after all, you know, that kind of point wouldn't make the exact impression on me that it probably should if I were a lawyer. So I think you had better ask him, but that is my belief. Q. Sarah McClendon, El Paso Times: Sir, on the Air Academy, the whole question of locating the Air Academy has been reopened, and all applicants have been asked to resubmit bids, after a Commission worked for years with the help of paid Government professional experts to find seven sites. Will you say what you think about reopening this? THE PRESIDENT. I will say this: this is the first time I have heard of this. But I will say this also: here is a question in which, I think, I have exhibited admirable restraint. [Laughter] You will recall when I came back from Europe in I945, I believed in one thing: the Air Force ought to be organized separately. I believe, after we proved that West Point and Annapolis could not be sufficiently 55

Page  56 Public Papers of the Presidents large enough, I believe the Air Forces ought to have an academy. I believed that. I was on a board to help decide that, after I had made up my own mind long before. I personally think I know exactly where it ought to be; I have kept my mouth shut, and I would never admit to anyone where I think it should be. So I say I will look into this; I had not heard of this reopening. Q. Richard L. Strout, Christian Science Monitor: Mr. President, could you assist us in getting a press conference with Mr. Brownell? You just suggested that we should have one. Some of us have been trying to get one for some months now. [Laughter] THE PRESIDENT. Well, I will tell you, everybody has his own method of operating. I don't know over in the Department of Justice whether it is proper and to the best interests of everybody to have periodic press conferences. I would say that when there is a legitimate request made for information, the information would be forthcoming. How he should put it out is something else. That is for his decision, and if I can't trust Cabinet officers for that, I would have a pretty hard time. Q. Marvin L. Arrowsmith, Associated Press: Mr. President, on the basis of Secretary Dulles' preliminary talks with Ambassador Zaroubin, are there any indications that Russia is acting in good faith interest in your atomic pool proposal? THE PRESIDENT. I don't believe, Mr. Arrowsmith, that you could make a conclusion that would be that far-reaching. I would say this: it is encouraging that Mr. Dulles and the Ambassador have had talks in a friendly atmosphere, and that there is some attempt being made in that kind of atmosphere to find out exactly what each other means so as to pursue the subject. I don't believe you could say that there is any kind of proof of anything. Q. Lloyd M. Schwartz, Fairchild Publications: Mr. President, I wonder if you could give us some of the reasoning behind your recommendation in your agriculture message for a direct payment system for the wool growers? THE PRESIDENT. Well, it is a long and involved story. We produce quite a small proportion of our wool, and there is a provision in the law now that sets up a target of 360 million pounds a year as what we would like to produce domestically. You see, wool has 56

Page  57 Dwight D. Eisenhower, I954 (I 9 always in the past, at least, been a very critical material in time of war, and you would like to have a reserve produced here. Now, when we are making that small proportion though of our- own requirements, meaning that small proportion from domestic sources of our own requirements, it seemed bad to put up a tariff which would be another bar, another obstruction, in international trade, and where we would have the whole United States paying this much money in order to reach this 360 million pounds target or anything under it. So the idea was to take from the general revenues, because there is produced by this tariff some six times as much as would be involved in the payments made to the domestic producers. It seemed a good idea to do it that way in this one article. Now, it was a long and inner struggle with me to come to this decision, but I did because I thought it was the best under the circumstances. Q. Robert G. Spivack, New York Post: Mr. President, in the State of the Union Message, I believe the figure of 2200 security risks was used, and I wondered if there is any breakdown available now on that since the 1456 figure? THE PRESIDENT. No detailed report has yet been made to me, and it is perfectly understandable. The Civil Service Commission has a very hard job, and there have been more than one hundred and eighty some thousand people dropped, whose positions have not been filled; so this 2200 is not a great number. The only thing that I can tell you about them is-and some of them, by the way, probably resigned without knowing of these derogatory remarks, or at least had not been notified by us of these derogatory remarks on their record. There were 2200 people against whom the Government intended to move because they believed them to be security risks, remarks already on their records showing that there was some doubt. Those 2200 have gone in one form or another. Q. Hazel Markel, Mutual Broadcasting System: Mr. President, your predecessor has said within the last few days that it, in his opinion, was highly probable or possible, at least, that a woman might be President. I wonder, after a year in your office, which is conceded to be the hardest job in the world, if you think it is possible that a woman might handle those arduous duties? THE PRESIDENT. You know, it makes a subject that we could have, I 57

Page  58 q 9 Public Papers of the Presidents think, a very interesting conversation on; but it is possible that out of my deep respect for women's intelligence as well as my admiration for their many other qualities-[laughter]-that I might reach the conclusion that they had too much sense-[laughter]-to want the job. I would know of no reason why a woman's brain and heart couldn't be used there as well as a man's; but I don't think she would like it. Q. Chalmers M. Roberts, Washington Post: Mr. President, Secretary Dulles said in his speech last night that the National Security Council and yourself had made a decision, a basic decision he called it, that in the future we would confront any possible aggression by what he called, and I quote, "a great capacity to retaliate instantly by means and at places of our own choosing." Could you elucidate on that somewhat for us, sir? THE PRESIDENT. No, I think no amplification of the statement is either necessary or wise. Let us put it this way: the more destructive that becomes, a bomb or any other article or missile that you can carry, the more value you place on the element of surprise in war. In other words, Pearl Harbor threw a defeat on us because of surprise. But if you could imagine multiplying the effect of Pearl Harbor, then you will see something of what the element of surprise has come to be. About your only defense is the knowledge that there is a strong retaliatory power. He was merely stating what, to my mind, is a fundamental truth and really doesn't take much decision; it is just a fundamental truth. Q. Anthony H. Leviero, New York Times: Have these new weapons caused any change in our concept of balanced forces? THE PRESIDENT. You know, it is an odd thing: every time I read about balanced forces in the papers, there seems to be a connotation that this means 33 percent for one, 33 percent for the next, and so on, and this applies both to men and to money. Now, to the professional, balanced forces means something entirely different. It means forces that are adjusted to the needs of the time or the needs of the battle. When we went into Normandy, and there are some of you here that went in with me, you will remember on the first few days we had a terrific preponderance of naval and air strength because it was difficult to get ground strength. But as time went on, the ground strength grew as compared to these other two; but at all times we felt we were balanced with respect to the job we had. Now, when I say, therefore, "balanced," I think we are achieving every 58

Page  59 Dwight D. Eisenhower, I954 (I 9 day a better balance. But it is not balance in the sense of one-third, onethird, one-third. Q. Oscar E. Naumann, New York Journal of Commerce: Mr. President, yesterday the Assistant Secretary of Agriculture said the Department is considering a proposal to sell a large quantity of surplus butter and cottonseed oil to Russia. Are you in favor of selling our farm surpluses to Russia, if she wants to buy them? THE PRESIDENT. Well, you made a long jump from the statement that I had heard. I called up, just before I came over here, and they said there was no such statement ever made in the Department of Agriculture. So you are posing a question on something that I am sure there is some misunderstanding somewhere about. This whole question of trading-East and West-in nonstrategic supplies is constantly under study, and it will be continued to be studied. I will give you my conclusions on it when I see the results of everybody's opinions and analysis. Q. Clark R. Mollenhoff, Des Moines Register and Tribune: Mr. President, could you tell us what you had in mind in the way of control and protection of welfare funds for the unions, and what caused you to put that in the Message? THE PRESIDENT. Here we have organisms, as I see it, that function under the auspices of the Federal Government. Now, any kind of funds that achieve a-public basis, to my mind they ought to be out on the table, spread for all to see, that is all. As a matter of fact, I was thinking of the welfare of the people who are supposed to be protected by those funds, that is all. Q. Mr. Mollenhoff: Were you thinking in terms of State or Federal control on that? THE PRESIDENT. Well, I always prefer State if it can be done that way. Q. Alice F. Johnson, Seattle Times: Mr. President, a year ago in your State of the Union Message you recommended statehood eventually, for Alaska, under certain circumstances. This year you didn't even mention Alaska. Does that mean that you are less favorably disposed toward granting statehood to Alaska? THE PRESIDENT. It merely means that the circumstances that I would lay down as the complete justification for Alaskan statehood have not yet arrived. 59

Page  60 Public Papers of the Presidents Q. A. Robert Smith, Portland Oregonian: Mr. President, in your State of the Union address, you spoke of the need for the Federal Government continuing to build resource development projects, and you said in the next fiscal year work will be started on 23 projects. Could you be any more specific about location or type of projects, sir? THE PRESIDENT. No, not at this moment. We went over this whole map of the United States, but I can't tell you exactly what they are. There are some-there are one or two-in which everybody is very keen on; and I remember one that affects the Northwest. But there are international as well as other kinds of problems that have to be solved before you can go any further with them. Q. Robert E. Clark, International News Service: Mr. President, do you have any reports of a Communist buildup of men or material in Korea, in violation of the truce terms? THE PRESIDENT. No. Now, the first thing that comes to my mind is-some of the details of that truce agreement now, of course, slip my mind; but, of course, in general the evidence is they have reduced their ground forces, taking out some of them. They have done a very great deal of digging and producing strong defensive lines. They have done a very large amount, a surprisingly large amount, in economic rebuilding in North Korea, apparently treating the North Korean area almost like it was an economic adjunct or part of the land across the Yalu. But as far as actual buildup, I would say, aside from building of certain things that might have a military usefulness, there is no evidence of that kind. Q. Kenneth M. Scheibel, Gannett Newspapers: Mr. President, if the Congress turns down the flexible farm price plan and extends the go percent of parity for another year or 2 years beginning in I955, would you go along with that or would you veto a measure like that? THE PRESIDENT. I never can veto anything in advance. I have to wait and take a look, because, let me point this out, there is no item veto possible in the Federal Government. Most States have what they call the item veto. The Federal Government, the President, does not have that right. Consequently, sometimes things are so designed that it is impossible to veto a bill merely because there is some provision of it that you believe to be in error. Q. Lucian C. Warren, Buffalo Courier-Express: Mr. President, did 6o

Page  61 Dwight D. Eisenhower, 1954 you have a chance before you sent your labor message to consult with the legislative leaders in Congress, particularly the committee chairmen and subcommittee chairmen about your specific recommendations on labor? THE PRESIDENT. I can't recall what was the latest conference we had with all these people since last January 2oth. These people, every time this subject has come up, have recurrently been brought back in; both Mr. McConnell and Senator Smith, and so on, come back in. We have talked about these things with numerous people on the Hill. But I can't say and I do not recall that the exact recommendations I sent down were finally put in front of them and read to them. Q. Marvin L. Arrowsmith, Associated Press: Mr. President, some members of your own party in Congress are saying that your farm program is not politically feasible in this election year. Would you comment on that? THE PRESIDENT. Well, I don't think I am too smart politically, but I don't believe that anyone can study that problem as long as this administration has studied it, I don't believe you can call in people from every section of this country, go out to them and meet them, talk to them, what are their problems, and believe that this particular system we now have is workable, practicable, and will help farmers. I tell you, I am trying to help agriculture in the utter conviction that a prosperous stable agriculture is essential to this Nation. Now, if it is not politically feasible, why, we will find out. I believe it is right. Q. Clark R. Mollenhoff, Des Moines Register and Tribune: Mr. President, was the House Agricultural Committee talked to with respect to the specific agricultural program that you proposed? THE PRESIDENT. During the course of the year? Q. Mr. Mollenhoff: No, the specific program as forwarded this week. THE PRESIDENT [to Mr. Hagerty]. We had it last week when Mr. Hope was up? Mr. Hagerty: Yes. THE PRESIDENT. I don't know the exact details, but at the meetings of leaders, the general provisions of these bills were placed in front of them. That does not mean to commit them to any complete prior and detailed agreement, but they were all certainly shown to them. 51986-60 8

Page  62 9 Public Papers of the Presidents Merriman Smith, United Press: Thank you, Mr. President. NOTE: President Eisenhower's twenty- I:07 o'clock on Wednesday morning, fourth news conference was held in the January I3, 1954. In attendance: I78. Executive Office Building from 10:33 to I o e Special Message to the Congress on Old Age and Survivors Insurance and on Federal Grants-in-Aid for Public Assistance Programs. January I4, I954 To the Congress of the United States: I submit herewith for the consideration of the Congress a number of recommendations relating to the Old Age and Survivors Insurance System and the Federal grant-in-aid programs for public assistance. The human problems of individual citizens are a proper and important concern of our government. One such problem that faces every individual is the provision of economic security for his old age and economic security for his family in the event of his death. To help individuals provide for that security-to reduce both the fear and the incidence of destitution to the minimum-to promote the confidence of every individual in the future-these are proper aims of all levels of government, including the Federal Government. Private and group savings, insurance, and pension plans, fostered by a healthy, fully functioning economy, are a primary means of protection against the economic hazards of old age and death. These private savings and plans must be encouraged, and their value preserved, by sound tax and fiscal policies of the Government. But in addition, a basic, nation-wide protection against these hazards can be provided through a government social insurance system. Building on this base, each individual has a better chance to achieve for himself the assurance of continued income after his earning days are over and for his family after his death. In response to the need for protection arising from the complexities of our modern society, the Old Age and Survivors Insurance system was developed. Under it nearly 70 million persons and their families are now covered, and some 6 million are already its beneficiaries. Despite shortcomings which can be cor62

Page  63 Dwight D. Eisenhower, 1954 (I lO rected, this system is basically sound. It should remain, as it has been, the cornerstone of the government's programs to promote the economic security of the individual. Under Old Age and Survivors Insurance (OASI), the worker during his productive years and his employer both contribute to the system in proportion to the worker's earnings. A self-employed person also contributes a percentage of his earnings. In return, when these breadwinners retire after reaching the age of 65, or if they die, they or their families become entitled to income related in amount to their previous earnings. The system is not intended as a substitute for private savings, pension plans and insurance protection. It is, rather, intended as the foundation upon which these other forms of protection can be soundly built. Thus the individual's own work, his planning, and his thrift will bring him a higher standard of living upon his retirement, or his family a higher standard of living in the event of his death, than would otherwise be the case. Hence the system both encourages thrift and self-reliance, and helps to prevent destitution in our national life. In offering, as I here do, certain measures for the expansion and improvement of this system, I am determined to preserve its basic principles. The two most important are: (i) it is a contributory system, with both the worker and his employer making payments during the years of active work; (2) the benefits received are related in part to the individual's earnings. To these sound principles our system owes much of its wide national acceptance. During the past year we have subjected the Federal social security system to an intensive study which has revealed certain limitations and inequities in the law as it now stands. These should be corrected. i. OASI Coverage Should Be Broadened. My message to the Congress on August I, I953, recommended legislation to bring more persons under the protection of the OASI system. The new groups that I recommended be covered-about ten million additional people-include self-employed farmers; many more farm workers and domestic workers; doctors, dentists, lawyers, architects, accountants, and other self-employed professional people; members of State and local retirement systems on a voluntary group basis; clergymen on a voluntary group basis; and several smaller groups. I urge the Congress to approve this extension of coverage. 63

Page  64 eI I o Public Papers of the Presidents Further broadening of the coverage is being considered by the Committee on Retirement Policy for Federal Personnel, created by the Congress. This Committee will soon report on a plan for expanding OASI to Federal employees not now protected, without impairing the independence of present Federal retirement plans. After the Committee has made its report, I shall make appropriate recommendations on that subject to the Congress. Extension of coverage will be a highly important advance in our OASI system, but other improvements are also needed. People over 65 years of age who can work should be encouraged to do so and should be permitted to take occasional or part-time jobs without losing their benefits. The level of benefits should be increased. Certain defects in and injustices under the present law should be eliminated. I submit the following recommendations to further these purposes. 2. The Present "Retirement Test" Should Be Liberalized and Its Discrimination Against the Wage Earner Should Be Removed. By depriving an OASI beneficiary of his benefit payment for any month in which he earns wages of more than $75, present law imposes an undue restraint on enterprise and initiative. Retired persons should be encouraged to continue their contributions to the productive needs of the nation. I am convinced that the great majority of our able-bodied older citizens are happier and better off when they continue in some productive work after reaching retirement age. Moreover, the nation's economy will derive large benefits from the wisdom and experience of older citizens who remain employed in jobs commensurate with their strength. I recommend, therefore, that the first $iooo of a beneficiary's annual earnings be exempted under the retirement test, and that for amounts earned above $ iooo only one month's benefit be deducted for each additional $8o earned. To illustrate the effect of these changes: a beneficiary could take a $200 a month job for five months without losing any benefits, whereas under present law he would lose five months' benefits. He could work throughout the year at $90 a month and lose only one month's benefit, whereas under present law he would lose all twelve. Approval of this recommendation will also remove the discriminatory treatment of wage earners under the retirement test. Self-employed persons already have the advantage of an exemption on an annual basis, 64

Page  65 Dwight D. Eisenhower, 1954 QI I0 with the right to average their earnings over the full year. The amendment I have proposed would afford this advantage, without discrimination, to all beneficiaries. 3. OASI Benefits Should Be Increased. Today thousands of OASI beneficiaries receive the minimum benefit of twenty-five dollars a month. The average individual benefit for retired workers approximates fifty dollars a month. The maximum benefit for an individual is $85 a month. For OASI to fulfill its purpose of helping to combat destitution, these benefits are too low. I recommend, therefore, that benefits now being received by retired workers be increased on the basis of a new formula to be submitted to the appropriate Committees by the Secretary of Health, Education, and Welfare. This formula should also provide increases for workers retiring in the future, raising both the minimum and the maximum benefits. These increases will further the objectives of the program and will strengthen the foundation on which its participants may build their own security. 4. Additional Benefit Credits Should Be Provided. The maintenance of a relationship between the individual's earnings and the benefits he receives is a cornerstone of the OASI system. However, only a part of many workers' annual earnings are taken into account for contribution and benefit purposes. Although in 1938 only the first $3000 of a worker's annual earnings were considered for contribution and benefit purposes, statistical studies reveal that in that year 94% of full-time male workers protected by OASI had all of their earnings covered by the program. By I950 less than half of such workers-44%had their full earnings covered by the program, so the Congress increased the earnings base to $3600. Today, the earnings base of $3600 covers the full earnings of only 40% of our regular male workers. It is clear, therefore, that another revision of this base is needed to maintain a reasonable relationship between a worker's benefits and his earnings. I recommend, therefore, that the earnings base for the calculation of OASI benefits and payroll taxes be raised to $4200, thus enabling I5,000,000 people to have more of their earnings taken into account by the program. 65

Page  66 (I IO0 Public Papers of the Presidents 5. Benefits Should Be Computed on a Fairer Basis. The level of OASI benefits is related to the average of a worker's past earnings. Under present law periods of abnormally low earnings, or no earnings at all, are averaged in with periods of normal earnings, thereby reducing the benefits received by the retired worker. In many instances, a worker may earn little or nothing for several months or several years because of illness or other personal adversity beyond his -power of prevention or remedy. Thus the level of benefits is reduced below its true relation to the earning capabilities of the employee. Moreover, if the additional millions of persons recommended for inclusion under OASI are brought into the program in I955 without modification of present law, their average earnings will be sharply lowered by including as a period of no earnings the period from I95I to 1955 when they were not in the program. I recommend, therefore, that in the computation of a worker's average monthly wage, the four lowest years of earnings be eliminated. 6. The Benefit Rights of the Disabled Should Be Protected. One of the injustices in the present law is its failure to make secure the benefit rights of the worker who has a substantial work record in covered employment and who becomes totally disabled. If his disability lasts four years or less, my preceding recommendation will alleviate this hardship. But if a worker's earnings and contributions cease for a longer period, his retirement rights, and the survivor rights of his widow and children may be reduced or even lost altogether. Equity dictates that this defect be remedied. I recommend, therefore, that the benefits of a worker who has a substantial work record in covered employment and who becomes totally disabled for an extended period be maintained at the amount he would have received had be become 65 and retired on the date his disability began. The injustice to the disabled should be corrected not simply by preserving these benefit rights but also by helping them to return to employment wherever possible. Many of them can be restored to lives of usefulness, independence and self-respect if, when they apply for the preservation of their benefit rights, they are promptly referred to the Vocational Rehabilitation agencies of the States. In the interest of these disabled persons, a close liaison between the OASI system and these agencies will be promptly established upon approval of these recoin 66

Page  67 Dwight D. Eisenhower, 1954 (I IO mendations by the Congress. Moreover, in my message of January I 8 to the Congress, I shall propose an expanded and improved program of Vocational Rehabilitation. COSTS I am informed by the Secretary of Health, Education and Welfare that the net additional cost of the recommendations herein presented would be, on a long-term basis, about one-half of one percent of the annual payrolls subject to OASI taxes. The benefit costs will be met for at least the next fifteen to twenty-five years under the step-rate increases in OASI taxes already provided in the law. PUBLIC ASSISTANCE An important by-product of the extension of the protection of the OASI system and the increase in its benefit scale is the impact on public assistance programs. Under these programs States and localities provide assistance to the needy aged, dependent children, blind persons and the permanently and totally disabled, with the Federal Government sharing in the cost. As broadened OASI coverage goes into effect, the proportion of our aged population eligible for benefits will increase from forty-five percent to seventy-five percent in the next five or six years. Although the need for some measure of public assistance will continue, the OASI program will progressively reduce, year by year, the extent of the need for public assistance payments by the substitution of OASI benefits. I recommend that the formula for Federal sharing in the public assistance programs for these purposes reflect this changing relationship without prejudicing in any manner the receipt of public assistance payments by those whose need for these payments will continue. Under the present public assistance formula some States receive a higher percentage share of Federal funds than others. In the program of old-age assistance, for example, States making low assistance payments receive up to eighty percent Federal funds in defraying the costs of their programs. States making high assistance payments receive about sixty-five percent of Federal funds in that portion of the old-age assistance payments which is within the $55 maximum for Federal participation. This variation in Federal participation is the result of a Congressional determination that the Federal sharing should be higher for States which, 67

Page  68 Public Papers of the Presidents because of low resources, generally make low assistance payments. In order better to achieve this purpose, I recommend that a new formula be enacted. It should take into account the financial capacity of the several States to support their public assistance programs by adopting, as a measure of that capacity, their per capita income. Such a new formula will also facilitate the inclusion, in the old-age assistance program, of a factor reflecting the expansion of OASI. The present formula for Federal sharing in public assistance programs requires adjustment from another standpoint. Under present law, the Federal Government does not share in any part of a monthly old-age assistance payment exceeding $55. Yet many of these payments must exceed this amount in order to meet the needs of the individual recipient, particularly where the individual requires medical care. I consider it altogether appropriate for the Federal Government to share in such payments and recommend, therefore, that the present $55 maximum be placed on an average rather than on an individual basis. Corresponding changes in the other public assistance programs would be made. This change in the formula would enable States to balance high payments in cases of acute need against low payments where the need is relatively minor. In addition, great administrative simplification would be achieved. A new public assistance formula should not become effective until the States have had an opportunity to plan for it. Until such time, the 1952 public assistance amendments should be extended. The recommendations I have here submitted constitute a coordinated approach to several major aspects of the broad problem of achieving economic security for Americans. Many other phases of this national problem exist and will be reflected in legislative proposals from time to time to the Congress. The effort to prevent destitution among our people preserves a greater measure of their freedom and strengthens their initiative. These proposals are constructive and positive steps in that direction, and I urge their early and favorable consideration by the Congress. DWIGHT D. EISENHOWER 68

Page  69 Dwight D. Eisenhower, 1954 (I I I I I El Special Message to the Congress on the Health Needs of the American People. January i8, 1954 To the Congress of the United States: I submit herewith for the consideration of the Congress recommendations to improve the health of the American people. Among the concerns of our government for the human problems of our citizens, the subject of health ranks high. For only as our citizens enjoy good physical and mental health can they win for themselves the satisfactions of a fully productive, useful life. THE HEALTH PROBLEM The progress of our people toward better health has been rapid. Fifty years ago their average life span was 49 years; today it is 68 years. In i900 there were 676 deaths from infectious diseases for every i00,000 of our people; now there are 66. Between i 9i6 and I950, maternal deaths per i00,000 live births dropped from 622 to 83. In i9i6, ten percent of the babies born in this country died before their first birthday; today, less than 3 percent die in their first year. This rapid progress toward better health has been the result of many particular efforts, and of one general effort. The general effort is the partnership and teamwork of private physicians and dentists and of those engaged in public health, with research scientists, sanitary engineers, the nursing profession and the many auxiliary professions related to health protection and care in illness. To all these dedicated people, America owes most of its recent progress toward better health. Yet, much remains to be done. Approximately 224,000 of our people died of cancer last year. This means that cancer will claim the lives of 25,000,000 of our i6o,ooo,ooo people unless the present cancer mortality rate is lowered. Diseases of the heart and blood vessels alone now take over 817,000 lives annually. Over seven million Americans are estimated to suffer from arthritis and rheumatic diseases. Twenty-two thousand lose their sight each year. Diabetes annually adds i00,000 to its roll of sufferers. Two million of our fellow citizens now handicapped by physical disabilities could be, but are not, rehabilitated to lead full and 69

Page  70 (e I I Public Papers of the Presidents productive lives. Ten million among our people will at some time in their lives be hospitalized with mental illness. There exist in our Nation the knowledge and skill to reduce these figures, to give us all still greater health protection and still longer life. But this knowledge and skill are not always available to all our people where and when they are needed. Two of the key problems in the field of health today are the distribution of medical facilities and the costs of medical care. Not all Americans can enjoy the best in medical care-because not always are the requisite facilities and professional personnel so distributed as to be available to them, particularly in our poorer communities and rural sections. There are, for example, I59 practicing physicians for every ioo,ooo of the civilian population in the Northeast United States. This is to be contrasted with I 26 physicians in the West, i i 6 in the North central area, and 92 in the South. There are, for another example, only 4 or 5 hospital beds for each i,ooo people in some States, as compared with I 0 or i i in others. Even where the best in medical care is available, its costs are often a serious burden. Major, long-term illness can become a financial catastrophe for a normal American family. Ten percent of American families are spending today more than $5oo a year for medical care. Of our people reporting incomes under $3000, about 6 percent spend almost a fifth of their gross income for medical and dental care. The total private medical bill of the nation now exceeds nine billion dollars a year-an average of nearly $200 a family-and it is rising. This illustrates the seriousness of the problem of medical costs. We must, therefore, take further action on the problems of distribution of medical facilities and the costs of medical care, but we must be careful and farsighted in the action that we take. Freedom, consent, and individual responsibility are fundamental to our system. In the field of medical care, this means that the traditional relationship of the physician and his patient, and the right of the individual to elect freely the manner of his care in illness, must be preserved. In adhering to this principle, and rejecting the socialization of medicine, we can still confidently commit ourselves to certain national health goals. One such goal is that the means for achieving good health should be accessible to all. A person's location, occupation, age, race, creed, or 70

Page  71 Dwight D. Eisenhower, 1954 4 II financial status should not bar him from enjoying this access. Second, the results of our vast scientific research, which is constantly advancing our knowledge of better health protection and better care in illness, should be broadly applied for the benefit of every citizen. There must be the fullest cooperation among the individual citizen, his personal physician, the research scientists, the schools of professional education, and our private and public institutions and services-local, State, and Federal. The specific recommendations which follow are designed to bring us closer to these goals. CONTINUATION OF PRESENT FEDERAL PROGRAMS In my Budget Message appropriations will be requested to carry on during the coming fiscal year the health and related programs of the newly-established Department of Health, Education, and Welfare. These programs should be continued because of their past success and their present and future usefulness. The Public Health Service, for example, has had a conspicuous share in the prevention of disease through its efforts to control health hazards on the farm, in industry and in the home. Thirty years ago, the Public Health Service first recommended a standard milk sanitation ordinance; by last year this ordinance had been voluntarily adopted by 1558 municipalities with a total population of 70 million people. Almost twenty years ago the Public Health Service first recommended restaurant sanitation ordinances; today 685 municipalities and 347 counties, with a total population of 90 million people, have such ordinances. The purification of drinking water and the pasteurization of milk have prevented countless epidemics and saved thousands of lives. These and similar field projects of the Public Health Service, such as technical assistance to the States, and industrial hygiene work, have great public value and should be maintained. In addition, the Public Health Service should be strengthened in its research activities. Through its National Institutes of Health, it maintains a steady attack against cancer, mental illness, heart diseases, dental problems, arthritis and metabolic diseases, blindness, and problems in microbiology and neurology. The new sanitary engineering laboratory at Cincinnati, to be dedicated in April, will make possible a vigorous attack on health problems associated with the rapid technological advances in industry and agriculture. In such direct research programs and in Public 7I

Page  72 Public Papers of the Presidents Health Service research grants to State and local governments and to private research institutions lies the hope of solving many of today's perplexing health problems. The activities of the Children's Bureau and its assistance to the States for maternal and child health services are also of vital importance. The programs for children with such crippling diseases as epilepsy, cerebral palsy, congenital heart disease, and rheumatic fever should receive continued support. MEETING THE COST OF MEDICAL CARE The best way for most of our people to provide themselves the resources to obtain good medical care is to participate in voluntary health insurance plans. During the past decade, private and non-profit health insurance organizations have made striking progress in offering such plans. The most widely purchased type of health insurance, which is hospitalization insurance, already meets approximately 40 percent of all private expenditures for hospital care. This progress indicates that these voluntary organizations can reach many more people and provide better and broader benefits. They should be encouraged and helped to do so. Better health insurance protection for more people can be provided. The Government need not and should not go into the insurance business to furnish the protection which private and non-profit organizations do not now provide. But the Government can and should work with them to study and devise better insurance protection to meet the public need. I recommend the establishment of a limited Federal reinsurance service to encourage private and non-profit health insurance organizations to offer broader health protection to more families. This service would reinsure the special additional risks involved in such broader protection. It can be launched with a capital fund of twenty-five million dollars provided by the Government, to be retired from reinsurance fees. NEW GRANT-IN-AID APPROACH My message on the State of the Union and my special message of January fourteenth pointed out that Federal grants-in-aid have hitherto observed no uniform pattern. Response has been made first to one and then to another broad national need. In each of the grant-in-aid 72

Page  73 Dwight D. Eisenhower, 1954 programs, including those dealing with health, child welfare and rehabilitation of the disabled, a wide variety of complicated matching formulas have been used. Categorical grants have restricted funds to specified purposes so that States often have too much money for some programs and not enough for others. This patchwork of complex formulas and categorical grants should be simplified and improved. I propose a simplified formula for all of these basic grant-in-aid programs which applies a new concept of Federal participation in State programs. This formula permits the States to use greater initiative and take more responsibility in the administration of the programs. It makes Federal assistance more responsive to the needs of the States and their citizens. Under it, Federal support of these grant-in-aid programs is based on three general criteria: First, the States are aided in inverse proportion to their financial capacity. By relating Federal financial support to the degree of need, we are applying the proven and sound formula adopted by the Congress in the Hospital Survey and Construction Act. Second, the States are also helped, in proportion to their population, to extend and improve the health and welfare services provided by the grant-in-aid programs. Third, a portion of the Federal assistance is set aside for the support of unique projects of regional or national significance which give promise of new and better ways of serving the human needs of our citizens. Two of these grant-in-aid programs warrant the following further recommendations. REHABILITATION OF THE DISABLED Working with only a small portion of the disabled among our people, Federal and State governments and voluntary organizations and institutions have proved the advantage to our nation of restoring handicapped persons to full and productive lives. When our State-Federal program of vocational rehabilitation began in i920, the services rendered were limited largely to vocational counseling, training and job placement. Since then advancing techniques in the medical and social aspects of rehabilitation have been incorporated into that program. There are now 2,000,000 disabled persons who could be rehabilitated and thus returned to productive work. Under the present rehabilitation 73

Page  74 (I II Public Papers of the Presidents program only 60,ooo of these disabled individuals are returned each year to full and productive lives. Meanwhile, 250,000 of our people are annually disabled. Therefore, we are losing ground at a distressing rate. The number of disabled who enter productive employment each year can be increased if the facilities, personnel and financial support for their rehabilitation are made adequate to the need. Considerations of both humanity and national self-interest demand that steps be taken now to improve this situation. Today, for example, we are spending three times as much in public assistance to care for nonproductive disabled people as it would cost to make them self-sufficient and taxpaying members of their communities. Rehabilitated persons as a group pay back in Federal income taxes many times the cost of their rehabilitation. There are no statistics to portray the full depth and meaning in human terms of the rehabilitation program, but clearly it is a program that builds a stronger America. We should provide for a progressive expansion of our rehabilitation resources, and we should act now so that a sound foundation may be established in I955. My forthcoming Budget Message will reflect this objective. Our goal in I955 is to restore 70,000 disabled persons to productive lives. This is an increase of o,ooo over the number rehabilitated in I953. Our goal for 1956 should be oo00,000 rehabilitated persons, or 40,000 persons more than those restored in 1953. In 1956, also, the States should begin to contribute from their own funds to the cost of rehabilitating these additional persons. By I959, with gradually increasing State participation to the point of equal sharing with the Federal government, we should reach the goal of 200,000 rehabilitated persons each year. In order to achieve this goal we must extend greater assistance to the States. We should do so, however, in a way which will equitably and gradually transfer increasing responsibility to the States. A program of grants should be undertaken to provide, under State auspices, specialized training for the professional personnel necessary to carry out the expanded program and to foster that research which will advance our knowledge of the ways of overcoming handicapping conditions. We should also provide, under State auspices, clinical facilities for rehabilitative services in hospitals and other appropriate treatment centers. In addition, we should encourage State and local initiative in the develop 74

Page  75 Dwight D. Eisenhower, 1954 (I I I ment of community rehabilitation centers and special workshops for the disabled. With such a program the Nation could during the next five years return a total of 66o,ooo of our disabled people to places of full responsibility as actively working citizens. CONSTRUCTION OF MEDICAL CARE FACILITIES The modern hospital in caring for the sick, in research, and in professional educational programs-is indispensable to good medical care. New hospital construction continues to lag behind the need. The total number of acceptable beds in this nation in all categories of non-Federal hospital services is now about i,o6o,ooo. Based on studies conducted by State hospital authorities, the need for additional hospital beds of all types-chronic disease, mental, tuberculosis, as well as general-is conservatively estimated at more than 500,000. A program of matching State and local tax funds and private funds in the construction of both public and voluntary non-profit hospitals where these are most needed is therefore essential. Since I946, nearly $6oo million in Federal funds have been allocated to almost 2,200 hospital projects in the States and Territories. This sum has been matched by over one and a quarter billion dollars of State and local funds. Projects already completed or under construction on December 31, I953, will add to our national resources Io6,ooo hospital beds and 464 public health centers. The largest proportion of Federal funds has been and is being spent in low-income and rural areas where the need for hospital beds is greatest and where the local means for providing them are smallest. This Federally stimulated accomplishment has by no means retarded the building of hospitals without Federal aid. Construction costing in excess of one billion dollars has been completed in the last six years without such aid. Hospital construction, however, meets only part of the urgent need for medical facilities. Not all illness need be treated in elaborate general hospital facilities, costly to construct and costly to operate. Certain non-acute illness conditions, including those of our hospitalized aged people, requiring institutional bed care can be handled in facilities more economical to build and operate than a general hospital, with its diagnostic, surgical and treatment equipment and its full staff of professional personnel. Today beds in our 75

Page  76 Public Papers of the Presidents hospitals for the chronically ill take care of only one out of every six persons suffering from such long-term illnesses as cancer, arthritis, and heart disease. The inadequacy of facilities and services to cope with such illnesses is disturbing. Moreover, if there were more nursing and convalescent home facilities, beds in general hospitals would be released for the care of the acutely ill. This would also help to relieve some of the serious problems created by the present short supply of trained nurses. Physical rehabilitation services for our disabled people can best be given in hospitals or other facilities especially equipped for the purpose. Many thousands of people remain disabled today because of the lack of such facilities and services. Many illnesses, to be sure, can be cared for outside of any institution. For such illnesses a far less costly approach to good medical care than hospitalization would be to provide diagnostic and treatment facilities for the ambulatory patient. The provision of such facilities, particularly in rural areas and small isolated communities, will attract physicians to the sparsely settled sections where they are urgently needed. I recommend, therefore, that the Hospital Survey and Construction Act be amended as necessary to authorize the several types of urgently needed medical care facilities which I have described. They will be less costly to build than general hospitals and will lessen the burden on them. I present four proposals to expand or extend the present program: (I) Added assistance in the construction of non-profit hospitals for the care of the chronically ill. These would be of a type more economical to build and operate than general hospitals. (2) Assistance in the construction of non-profit medically supervised nursing and convalescent homes. (3) Assistance in the construction of non-profit rehabilitation facilities for the disabled. (4) Assistance in the construction of non-profit diagnostic or treatment centers for ambulatory patients. Finally, I recommend that in order to provide a sound basis for Federal assistance in such an expanded program, special funds be made available to the States to help pay for surveys of their needs. This is the procedure that the Congress wisely required in connection with Federal assistance in the construction of hospitals under the original Act. We should also continue to observe the principle of State and local determination of their needs without Federal interference. 76

Page  77 Dwight D. Eisenhower, 1954 (I I 2 These recommendations are needed forward steps in the development of a sound program for improving the health of our people. No nation and no administration can ever afford to be complacent about the health of its citizens. While continuing to reject government regimentation of medicine, we shall with vigor and imagination continuously search out by appropriate means, recommend, and put into effect new methods of achieving better health for all of our people. We shall not relax in the struggle against disease. The health of our people is the very essence of our vitality, our strength and our progress as a nation. I urge that the Congress give early and favorable consideration to the recommendations I have herein submitted. DWIGHT D. EISENHOWER I 2 tI Letter to President Hoover Regarding the Commission on Organization of the Executive Branch. January i 8, I954 [ Released January i 8, 1954. Dated January I 6, I 954 ] Dear Mr. President: I appreciate very much your thoughtfulness in writing me relative to the progress that has been made by the Commission on Organization of the Executive Branch of the Government. The nation is faced with basic issues that must be resolved in every one of the areas that you have selected for study. You have enlisted the services of some of our most outstanding leaders for membership on the task forces that you have established to carry forward these studies. Please convey to them my personal appreciation of their willingness to serve in this manner. As you know I have a very real interest in the outcome of the work of the Commission. We are determined to do everything we can to put into effect sound principles of management in the conduct of the affairs of government. I look forward to having the benefit of your recommendations. The time, thought, and energy that you are putting into this program as Chairman of the Commission is a source of real inspiration to all of 77

Page  78 (I I 2 Public Papers of the Presidents us. The country is to be congratulated that you have once again been willing to undertake leadership in this work. Sincerely, DWIGHT D. EISENHOWER NOTE: President Hoover's letter follows: My dear Mr. President: We have made progress in the major setup of the Commission on Organization of the Executive Branch of the Government. The Commission was created by Public Law No. io8 of July IO, I953. The membership of the Commission was completed in the latter part of August and the Commission held its first meeting on September 29, 1953. The Presidential appointees to the Commission are: The Honorable Herbert Hoover, Attorney General Herbert Brownell, Jr., The Honorable James A. Farley, Director of Defense Mobilization Arthur S. Flemming. The Vice President's appointees are: Senator Homer Ferguson, Senator John L. McClellan, Dean Solomon C. Hollister of the School of Engineering at Cornell University, Dean Robert G. Storey of the School of Law at Southern Methodist University. The Speaker's appointees are: Congressman Clarence J. Brown, Congressman Chet Holifield, The Honorable Joseph P. Kennedy, Mr Sidney A. Mitchell. The Honorable John B. Hollister is the Executive Director. Five of these members served on the Reorganization Commission of 1947-50. As of the present we have created the following nine major Task Forces to undertake investigations and to make recommendations. They are: The Business Organization of the Department of Defense, Chairman Charles R. Hook and more than I o members. The various Task Forces already on work on fractions of these problems will be represented on this Committee and another such Task Force will be created on Procurement; Water Resources Development and Power, Chairman Admiral Ben Moreell and 25 members; Medical Services, Chairman Chauncey McCormick and I5 members; Personnel and Civil Service, Chairman President Harold W. Dodds and 9 members; Legal Services and Procedure of the Executive Branch of the Government, Chairman Judge James M. Douglas and I5 members; Use and Disposal of Surplus Property, Chairman General Robert E. Wood and 7 members; Subsistence Management, Chairman Joseph P. Binns and 8 members; Budgeting and Accounting, Chairman J. Harold Stewart and 6 members; Lending Agencies, Chairman Paul Grady and Io members. In addition we are conducting staff investigations of certain other agencies as directed by the law. In all our work we have sought to avoid duplication with the work in progress for efficiency and economy by other Commissions, Committees of Congress and the Departments. The members of the Task Forces are chosen solely because of their experience in different fields. I have considered it in the public interest not to include representatives of any particular group interest. The representatives of such groups will be given full hearings. The problems to be solved require a determination of fact and the deduction of recommendations therefrom. For the purpose of amassing the facts, each Task Force has been given adequate research staff. The recommendations of the Task Forces and of our staff will be reviewed by the Commission. Due to the large proportion of voluntary service, the cash expenditures and outstanding obligations from September 78

Page  79 Dwight D. Eisenhower, 1954 a I4 29 to December 31, I953 are $152,035. Thus far, over 115 leading profesOur paid staff comprises three persons, sional and administrative citizens have an Assistant to each Commissioner, to- been enlisted upon our Task Forces. I gether with research employees of the will forward to you a list of them and of Task Forces. Such clerical help as we the other men and women associated in require is mostly secured on a reimburs- the work. able basis from the Executive Depart- Yours faithfully, ments so as not to create a permanent HERBERT HOOVER staff. I 3 4F Statement by the President on the Approval by the Netherlands Parliament of the European Defense Community Treaty. yanuary 20, I954 I HAVE just learned that the Netherlands, through action today by the First Chamber, has completed legislative action on the treaty to create the European Defense Community. The Netherlands thus becomes the first country to complete the necessary legislative processes. I am gratified at the steady progress toward the achievement of conditions in Europe which will insure permanent peace and prosperity. I4 t1 Annual BudgetMessage to the Congress: Fiscal Year I 955. yanuary 2I, I954 To the Congress of the United States: I am transmitting herewith the Budget of the United States for the fiscal year ending June 30, I 955. The budget message is divided into two parts. The first part is a general statement summarizing the budget and a number of its most important aspects. The second part includes pertinent details of my tax and legislative programs, and of the budget. Together the two parts comprise my budget message. When this administration took office on January 20 of last year one of its first concerns was the budget for the I954 fiscal year, which had been sent to the Congress on January 9, I953, by the previous adminis 79

Page  80 (I 14 Public Papers of the Presidents tration. With the cooperation of the Congress that budget promptly was revised and reduced. This new budget is the first prepared entirely by this administration. It provides adequately, in my judgment, for the national defense and the international responsibilities of the Nation-responsibilities which we must undertake as a leader of the free world. On the success of this leadership depends our national security and prosperity. The budget also provides adequately for the current needs of the Government and for constructive forward steps in our domestic responsibilities and programs. The recommended budget continues the strengthening of our military posture; our progress in the development and production of atomic weapons; the expansion of our system of continental defense; assistance in the development of the military strength of friendly nations; and programs for rapid mobilization if an emergency should arise. Authority is recommended for new and advanced work on the peacetime uses of atomic energy in the earnest hope that present international relations can be improved and the wonders of nuclear power can be turned gradually to the development of a more abundant life for ourselves and all mankind. The budget contains provisions for legislative recommendations for expanding the coverage and increasing the benefits of our social security system; for promoting better housing conditions and more widespread home ownership in the Nation; for improving our system of education; for conserving our natural resources; for helping prevent the ravages of floods and soil erosion; for encouraging the expansion of adequate health and hospital care for our people; and for other constructive domestic purposes designed to strengthen the foundations of a stable and prosperous economy. This budget continues the progress that has been made during the past year in reducing both requests for new appropriations and Government expenditures. The reductions in expenditures already accomplished, together with those now proposed, justify the tax reductions which took effect January i and the further tax revisions I am recommending. These lower taxes will encourage continued high capital investment and consumer purchases. Despite the substantial loss of revenue caused by these tax reductions, we have moved closer to a balanced budget. One of the first problems of this administration was to bring the budget 8o

Page  81 Dwight D. Eisenhower, I954 under better control. That was substantially accomplished in the revision of the original budget document for the fiscal year I 954. Now an amount approximately equal to the savings made in this new budget is being returned to the public in tax reductions and tax revisions. This amount substantially exceeds the estimated budget deficit. In preparing this budget the administration has directed its attention to essential activities and programs rather than to those which some might consider desirable and appropriate, at this time, for the Federal Government to undertake. It assumes fairly stable conditions, internally and externally, during the period it covers. It allows for the continuing heavy demands of the national security programs on the budget. But as we continue to reduce and eliminate the less desirable or the unnecessary Government expenditures, it will become possible to turn to other purposes which are the most desirable in terms of their benefits to all of the people. This budget marks the beginning of a movement to shift to State and local governments and to private enterprise Federal activities which can be more appropriately and more efficiently carried on in that way. The lending activities of the Reconstruction Finance Corporation; the services provided by the Inland Waterways Corporation; certain agricultural activities; and some aspects of our health, education, and welfare programs are examples of this type of action. In those cases where Federal participation is necessary, the effort of this administration is to develop partnerships rather than an exclusive and often paternalistic position for the Federal Government. This budget also benefits from material savings from the decreased costs of Federal operations resulting from our constant effort to improve the management of Government activities and to find better and less expensive ways of doing the things which must be done by the Federal Government. The total effect of the recommendations for the I955 budget, under existing and proposed legislation, is shown with comparable figures for earlier years in the following table. The table also reflects certain technical adjustments for I 955 and prior years which do not affect the budget surplus or deficit and are described in part II of this message. Both receipts and expenditures include, insofar as can be determined, the estimated budgetary results of my recommendations for new legislation. 8i

Page  82 [ 14 Public Papers of the Presidents BUDGET TOTALS [Fiscal years. In billions] 1954 estimated 1 Budget 1955 1950 I95I I952 1953 docu- Cur- estiactual actual actual actual ment rent mated New authority to incur obligations..................... $49 3 $82.9 $91.4 $80.2 $71.8 $60.7 $56.3 Receipts: Under existing legislation... 36.5 47.5 61.4 64.6 68.o 67.4 6.5 Under proposed legislation................................. 2. 2 Total receipts............ 36.5 47.5 61.4 64.6 68.o 67.6 62.7 Expenditures: Under existing legislation... 39.6 44. 65.4 74. o 75.6 70.9 64.5 Under proposed legislation....................... 2.3 (2) I. Total expenditures....... 39.6 44.o 65.4 74.o 77-9 7~09 65.6 Surplus (+) or deficit (-)... -3.1 +3.5 -4.0 -9.4 -9.9 -3.3 -2.9 Cumulative unspent balances of appropriations at end of year..................... 3 I4.I 3 50.3 68.8 78.7 67.4 66.5 54.1 1 References to I954 are to the I954 budget document of January 9, I953, as presented to the Congress, and to currently revised budget estimates. 2 Less than 50 million dollars. 3 Estimated. Detailed accounting data are not available. General budget policy.-This administration is dedicated to greater efficiency and economy in meeting the Nation's security requirements and the necessary and valid functions of the Government. The current estimates of the I954 budget show that the requests for new appropriations were reduced about 12.5 billion dollars, new obligational authority was reduced more than I billion dollars, and expenditures were reduced 7 billion dollars below the totals estimated in the 1954 budget document of the previous administration. Similar reductions continue in the budget recommended for the fiscal year I955. Recommended new obligational authority is 4.4 billion dollars less than the current estimate for the fiscal year 1954, I5.5 billion dollars less than recommended for that year in the I954 budget document, and 23.9 billion dollars less than in I953. Estimated expenditures for the fiscal year I955 are 5.3 billion dollars less than the current 82

Page  83 Dwight D. Eisenhower, J1954 q I4 estimate for the fiscal year I954, I2.3 billion dollars less than recommended in the I954 budget document, and 8.4 billion dollars less than in 1953. Thus, new obligational authority has been reduced i5.5 billion dollars and estimated expenditures have been reduced I2.3 billion dollars since this administration took office. These reductions justified lower taxes. Without tax reductions, a budget surplus was in sight for the fiscal year I955. So that most of the new savings could be passed along to the taxpayers of the Nation as a whole, with beneficial effects on our entire economy, I believed it best to adopt a course leading toward the twin goals of a balanced budget and tax reductions. The reductions in I954 expenditures were devoted to reducing the large deficit forecast in the I954 budget document. The anticipated savings in 1955 budget expenditures already have been reflected in the tax reductions of January i of this year and are also reflected in the tax revisions I am recommending in this message. Together these tax reductions will total nearly 5 billion dollars. We will still have a budgetary deficit of slightly less than 3 billion dollars for the fiscal year I955, as now estimated. But we will continue determined efforts for economy to reduce that deficit during the I955 fiscal year. Furthermore, despite the loss of cash revenue from the tax reductions and revisions, the total cash transactions of the Government with the public are now estimated to show a small cash surplus for the fiscal year I955. Budget totals, fiscal year I954.-The actual budget deficit for the fiscal year I953 was 9.4 billion dollars. The budget deficit for the fiscal year I954, indicated in the I954 budget document, was 9.9 billion dollars. The current estimates of the budget for that year show a budgetary deficit of 3.3 billion dollars. Total Government cash transactions with the public include the receipts and payments of the social security and other trust funds which are not considered part of the budget. In I953 the excess of cash payments to the public over receipts from the public was 5.3 billion dollars. The 1954 budget document estimated an excess of cash payments of 6.6 billion dollars. Present estimates indicate an excess of cash payments over re 83

Page  84 Public Papers of the Presidents ceipts in I954 of more than 200 million dollars, a reduction of 6.4 billion dollars in the cash deficit originally estimated. Budget totals, fiscal year I955.-The budget for the fiscal year I955 is estimated to show a deficit of 2.9 billion dollars. Deficits Fiscal year: (in billions) 1952 --- —---------------------------------------------------------- $4. 0 I953 --- —------------------------------------------------ 9. 4 1954: As estimated, January 9, 1953 --- —------------------------ 9. 9 Revised estimate --- —---------------------------------- 3. 3 1955 estimate --------------------------------------------- -2. 9 The presently estimated deficit for the I955 fiscal year is in sharp contrast to a deficit forecast made by the Bureau of the Budget prior to transmission to the Congress of the I954 budget document. This projection of the programs in existence and contemplated in the I954 budget document, under the tax laws as they then existed, indicated a deficit for the I955 fiscal year about five times greater than the deficit now estimated. Budget receipts and expenditures for the fiscal year I955 are estimated as follows: Receipts Expenditures (in billions) Under existing legislation --- —----------------------- $61. 5 $64. 5 Under proposed legislation --- —----------------------—. 2 I. I Total --- —---------------------------------- 62. 7 65. 6 Budget receipts allow for an estimated loss of revenue, totaling nearly 5 billion dollars, from the tax reduction which took effect January i and from the cost of recommended tax revisions, insofar as these will apply to the I955 fiscal year. On a full-year basis the revenue loss will approach 6 billion dollars. The total cash transactions of the Government with the public show an estimated excess of receipts from the public over payments to the public of more than i oo million dollars in the fiscal year I 955. This record of progress toward a balanced budget is the result of a determined and continuous effort to bring the financial affairs of the Government under control. New obligational authority.-My recommendations for new appropriations and other new obligational authority for the fiscal year I955 amount to 56.3 billion dollars, a further reduction from the amounts enacted during the last several years. 84

Page  85 Dwight D. Eisenhower, 1954 q I4 New obligational authority Fiscal year: (inbillions) 1952 --- —------------------------------ $91. 4 1953 --- —--------------------------------------- 8o. 2 I954: As estimated, January 9, 1953 --- —-------- ----------- 7. 8 Revised estimate --- —--------------------------------- 6o. 7 I955, as recommended --- —-------------------------------- 56. 3 New obligational authority includes new appropriations, additions to borrowing authority, and certain adjustments to the authority of agencies to incur obligations. The above figures are on a comparable basis, reflecting certain adjustments in composition and definition made in this budget, partly to conform to congressional practices. Details are shown in the second part of this message. The accumulated unexpended balances of prior appropriations as of June 30, I953, of 78.7 billion dollars, will be reduced to 66.5 billion dollars by June 30, I954, and to 54.I billion dollars by June 30, I955, as now projected. The lower levels of new obligational authority and of accumulated unexpended balances for I954 and I955 lead to less expenditures in these and in future years. In the revision of the i954 budget and in the I955 budget the trend clearly is toward a balanced budget. Budget expenditures.-Total budget expenditures in the fiscal year I955 are estimated at 65.6 billion dollars. Fiscal year: Expenditures (in billions) 1952 --- —----- --------- -------------------------- $65.4 1953 --- —--------------------------------------------- 74 I954: As estimated, January 9, I953 --- —---------------------- 77. 9 Revised estimate --- —-------------------------------— ___ 70. 9 1955 estimate -------------------------------------- 6 65.6 Proposed expenditure programs for i955 fall in three broad categories: national security, major programs relatively uncontrollable under existing and proposed legislation, and all other Government programs. Expenditures for major national security programs-for the military functions of the Department of Defense, the mutual military program, atomic energy, and stockpiling of strategic materials-dominate the budget and are estimated at 44.9 billion dollars in the fiscal year I955. This compares with a presently estimated 48.7 billion dollars in 1954 and 50.3 billion dollars in 1953. These amounts are about the same percentage of total budget expenditures in each of the 3 years. 51986-60 —9 85

Page  86 Public Papers of the Presidents Closely related to these major security programs are other activities for national security included elsewhere in the budget. Our foreign economic assistance and information programs are particularly essential to deter aggression and strengthen the world forces for peace. Proposed reductions in major national security expenditures in I955 represent the largest single element of reduction from the current year's level of expenditures. I emphasize, however, that these savings result from revisions in programs, from shifts in emphasis, from better balanced procurement, and from improved management and operations. Our security is being strengthened-not weakened. Further, while expenditures for some programs in this category will be reduced, others will be increased. Of the four major national security programs, proposed I 955 expenditures for the Atomic Energy Commission and for the mutual military program will be at the highest levels since the initiation of the two programs. Within the Department of Defense the fiscal year I955 expenditures on behalf of our airpower will be the largest since World War II. Allocations of expenditures for our continental defense program will be greater than in any previous year. Expenditures for stockpiling-the fourth of the principal programs in the major national security category-will be less than in the fiscal year 1954, as a result of approaching fulfillment of stockpile requirements in certain categories and of lower world market prices for materials still required for the stockpile. Budget expenditures for certain Government activities are, by law, relatively nondiscretionary, and depend largely on factors outside the annual budgetary process. While relatively few in number these represent a large amount of dollars and the budget each year has to provide funds for them. For example, once the laws are placed on the statute books, grants to States for many purposes depend upon the extent to which States take advantage of Federal grant-in-aid programs; veterans' pensions depend upon the number of qualified veteran applicants; farm price supports depend upon the size of crops and the demand for supported commodities; and interest payments on the national debt depend upon the amount of the debt and the rate of interest. In the fiscal year I955 it is estimated that budget expenditures of I4.' billion dollars will be required to support these programs. This amount 86

Page  87 Dwight D. Eisenhower, 1954 a I4 is about the same as presently estimated for I954 and almost 8oo million dollars less than similar expenditures in the fiscal year I 953. Budget expenditures for other Government activities, which contain more elements controllable through the budget process, are reduced an estimated 2.2 billion dollars below the fiscal year I953 and I.5 billion dollars below the present estimate for 1954. This is a reduction, over the two fiscal years, of about 25 percent in the cost of these numerous day-to-day operations of the Government. These activities cover, in number, a large majority of the items in the budget, although the amount involved is about one-tenth of total budget expenditures. Some substantial reductions in this category will result from a lessened postal deficit and management and program savings in many other departments. On the other hand, estimated expenditures for the Tennessee Valley Authority, urban development and redevelopment, college housing loans, the National Science Foundation, fish and wildlife resources, the school lunch program, and several other programs of domestic importance will be the largest in our history. Budget receipts and taxes.-Budget receipts under existing and proposed legislation are estimated to be 62.7 billion dollars in the fiscal year I955. This is 4.9 billion dollars less than presently estimated I954 receipts; i.9 billion dollars less than I953, and I.3 billion dollars more than I952. Total Government expenditures and taxes are now so high that we must choose our path carefully between inadequate revenues on the one hand and repressive taxation on the other. I am anxious to have taxes reduced as fast as that can be done without building up inflationary deficits. It is the determined purpose of this administration to make further reductions in taxes as rapidly as justified by prospective revenues and reductions in expenditures. The objective will be to return to the people, to spend for themselves and in their own way, the largest possible share of the money that the Government has been spending for them. The start toward tax reductions is justified only because of success in reducing expenditures and improving the budgetary outlook. That outlook permits me to make some proposals for tax reform and reductions for millions of taxpayers at this time which represent much-needed improvements in our tax system. These proposals are directed toward removing the most serious tax hardships and tax complications, and reducing the tax barriers to continued economic growth. The proposals will 87

Page  88 Public Papers of the Presidents encourage the initiative and investment which stimulate production and productivity and create bigger payrolls and more and better jobs. The details of these proposals are many and represent much cooperative work by the House Ways and Means Committee and its staff and the Treasury Department. In part II of my budget message, I list and describe 25 important tax revisions. I do not believe that the budgetary situation will permit further reductions of taxes at this time. Hence, I repeat my recommendations of last May that the reductions in the general corporate income tax be deferred for i year; that the excise tax rates, scheduled to be reduced on April I, including those on liquor, tobacco, automobiles, and gasoline, be continued at present rates; and that any adjustments in the other excise taxes be such as to maintain the total yield which we are now receiving from this source. Debt management.-A sound dollar is the cornerstone of financing -policy under this administration. The problem of debt management is not only one of offering securities for cash or refunding which the market will take, but of appraising the economic situation and adapting financing plans to it, so that as far as possible debt management does not contribute to either inflation or deflation. This means close cooperation with the Federal Reserve System, whose duty it is under the law to administer the money supply, with these same objectives in view. Nearly three-quarters of the debt we inherited a year ago matures -within less than 5 years or is redeemable at the holder's option. Too large a proportion is in the hands of banks. This is the result of financing over a period of years too largely by short term issues at artificially low interest rates maintained by Federal Reserve support. These policies contributed to cheapening the dollar. A start has been made in lengthening the maturities of the debt, as well -as obtaining a wider distribution among individuals and other nonbank investors. In our i953 debt operations, maturities were lengthened in 5 out of 9 times. There is every reason to look forward with confidence to this country's ability to put its financial house in better order without serious disruption of credits or markets. The stream of the Nation's savings is huge, larger -than ever before; the financial system is sound. With a reasonable assur 88

Page  89 Dwight D. Eisenhower, 1954 ance of sound money of stable buying power there is no better investment than securities of the United States Government. The national debt is now close to the legal limit of 275 billion dollars. In view of the wide swings in receipts and expenditures and their unpredictability, it is not prudent to operate the huge business of the United States Government in such a straitjacket as the present debt limit. These difficulties will become worse as we move forward in the year. We shall be close to the debt limit and our cash balances will be dangerously low on several occasions in the first half of the calendar year. In the second half of the calendar year, when tax receipts are seasonally low, there will be no way of operating within the present debt limit. For these reasons, I renew my request to the Congress to raise the debt limit. Proposed legislation.-Legislative proposals are reflected in separate messages or are included in the appropriate sections of part II of this message. A summary of the budgetary impact of the legislative program also is given in part II. In summary, I emphasize that this budget carries out the policy of this administration to move toward reduced taxes and reduced Government spending as rapidly as our national security and well-being will permit. By using necessity-rather than mere desirability-as the test for our expenditures, we will reduce the share of the national income which is spent by the Government. We are convinced that more progress and sounder progress will be made over the years as the largest possible share of our national income is left with individual citizens to make their own countless decisions as to what they will spend, what they will buy, and what they will save and invest. Government must play a vital role in maintaining economic growth and stability. But I believe that our development, since the early days of the Republic, has been based on the fact that we left a great share of our national income to be used by a provident people with a will to venture. Their actions have stimulated the American genius for creative initiative and thus multiplied our productivity. This budget proposes that such progressive economic growth will be fostered by continuing emphasis on efficiency and economy in Government, reduced Government expenditures, reduced taxes, and a reduced 89

Page  90 Public Papers of the Presidents deficit. The reduced request for new obligational authority promises further that, barring unforeseen circumstances, the budgets I shall recommend in the future will be directed toward the same objectives. DWIGHT D. EISENHOWER PART II To the Congress of the United States: This, the second part of my budget message, discusses in considerable detail my recommended program for the Government for the fiscal year 1955. I now present and describe my legislative proposals for taxes, and summarize my other legislative proposals, indicating their budgetary impact. This is followed by a presentation and discussion of the pertinent details of the budget. TAX PROPOSALS Our whole system of taxation needs revision and overhauling. It has grown haphazardly over many years. The tax system should be completely revised. Revision of the tax system is needed to make tax burdens fairer for millions of individual taxpayers. It is needed to restore normal incentives for sustained production and economic growth. The country's economy has continued to grow during recent years with artificial support from recurring inflation. This is not a solid foundation for prosperity. We must restore conditions which will permit traditional American initiative and production genius to push on to ever higher standards of living and employment. Among these conditions, a fair tax system with minimum restraints on small and growing businesses is especially important. I believe that this proposed tax revision is the next important step we should take in easing our tax burdens. After it is completed, further reductions in expenditures can be applied to our two objectives of balancing the budget and reducing tax rates. A year ago I asked the Secretary of the Treasury to undertake a complete review of the tax system and make recommendations for changes. The Committee on Ways and Means of the House of Representatives had already started constructive examination of the tax laws 90

Page  91 Dwight D. Eisenhower, I954 q I4 with the same objectives. Extensive hearings were held by the committee during the late spring and summer. The proposed revisions are the result of a year's intensive work. The collaboration between congressional and Treasury staffs in the development of a tax revision bill has been very close. It may, I hope, provide a precedent for similar collaboration in other fields of legislation. I shall not list here all the detailed points developed for the revision of the tax laws. The following recommendations cover the major points. They will substantially reduce the more glaring inequities, thereby helping vast numbers of our people in their individual tax burdens. They will reduce the more serious restraints on production and economic growth. They will promote investment, which provides new and better methods of production and creates additional payrolls and more jobs. The revisions will also make the law simpler and surer, with benefits to both taxpayers and the Government. They will in many ways prevent abuses by which some taxpayers now avoid their rightful share of tax burdens by taking unfair advantage of technicalities. i. Children earning over 6oo dollars.-At present, parents cannot claim as a dependent any child who earns over 6oo dollars a year. This discourages children in school or college from earning as much as they can to help in their support. I recommend that a parent should be permitted to continue to claim a child as a dependent regardless of the child's earnings if he is under i 8 or away from home at school, as long as he is in fact still supported by the parent. Such dependents should, of course, continue to pay their own income tax on earnings above 6oo dollars. 2. Heads of families.-At present, a widow or widower with dependent children is denied the full benefit of income-splitting available to married couples. It seems unfair to tax the income of a surviving parent with dependent children at higher rates than were applied to the family income before the death of one of the partners in a marriage. I recommend that widows and widowers with dependent children be allowed to split their income as is now done by married couples. This same tax treatment should be authorized for single people supporting dependent parents. Furthermore, the present requirement that dependent parents must live with their children for the children to qualify for this tax treatment should be removed. It is often best for elderly people to be able to live in their own homes, and the tax laws should not put a penalty on family arrangements of this sort. 9I

Page  92 Public Papers of the Presidents 3. Foster children as dependents.-At present, foster children and children in process of adoption may not be claimed as dependents. I recommend that such children be allowed as dependents. 4. Expenses of child care.-Some tax allowance can properly be given for actual costs of providing care for the small children of widows or widowers who have to work outside the home. The same tax privilege should be given to working mothers who, because their husbands are incapacitated, provide the principal support of their families. 5. Medical expenses.-The present tax allowances for unusual medical expenses are too limited to cover the many tragic emergencies which occur in too many families. I recommend that a tax allowance be given for medical expenses in excess of 3 percent of income instead of 5 percent as at present. I recommend further that the present ceiling of I,250 dollars for a single person with a maximum ceiling of 5,ooo dollars for a family should be doubled so that the maximum for a family will be i0,000 dollars. However, to avoid abuses in medical deductions, I recommend that the definition of medical expenses be tightened to exclude both ordinary household supplies and certain indirect travel expenses. 6. Medical insurance and sick benefits for employees.-Insurance and other plans adopted by employers to protect their employees against the risks of sickness should be encouraged by removing the present uncertainties in the tax law. It should be made clear that the employer's share of the costs of providing such protection on a group basis will not be treated as income on which the employee is liable for tax. This principle should be applied to medical and hospital insurance as well as to a full or partial continuation of earnings during a sickness. There should be no tax discrimination between plans insured with an outside insurance company and those financed directly by the employer. At present, payments received by a person while sick are entirely nontaxable if made under an insured plan. This makes it possible for a person subject to high tax rates to have a much larger net income while on sick leave than while at work. To prevent abuses, I recommend that a limit of ioo dollars a week be placed on tax-free benefits, but this exemption should be extended only to plans meeting certain general standards. 7. Pension and profit-sharing plans for employees.-The conditions for qualification for special tax treatment of employers' pension plans 92

Page  93 Dwight D. Eisenhower, 1954 (I I 4 are too involved. Such plans are desirable. I recommend that the rules be simplified and that greater discretion be given in establishing plans for different groups of employees, so long as there is no discrimination in favor of key executives or stockholders. Under present law, the value of a future pension to a surviving widow or child of an employee is included in the husband's taxable estate, even though the survivors may not live to receive the full benefits and there may be no cash available to pay the tax. I recommend that such value should not be included in an estate but that the survivors continue to pay tax on the pension in the same manner that it was taxed to the person first receiving it. At the same time, to avoid unfair competition with ordinary taxpaying businesses, I recommend that pension trusts be restricted in the same manner as tax-exempt foundations. They should also be subject to rules in regard to percentage distribution of their assets comparable to those applying to regulated investment companies. 8. Taxation of annuities.-Under the present tax law, a person buying an annuity is taxed on a relatively large part of each payment until his cost is fully recovered, at which time the full amount becomes taxable. The tax rule is so strict that often a person is not likely to get his capital back tax free unless he lives beyond his life expectancy. I recommend that the tax treatment of annuities be determined on the basis of the life expectancy of the person receiving it. This will permit the hundreds of thousands of people who buy annuities to recover their capital free of tax over their life expectancies and will avoid any change in the tax status of an annuity during a person's lifetime. 9. Double taxation of dividends.-At present, business income is taxed to both the corporation as it is earned and to the millions of stockholders as it is paid out in dividends. This double taxation is bad from two standpoints. It is unfair and it discourages investment. I recommend that a start be made in the removal of this double taxation by allowing stockholders a credit against their own income taxes as a partial offset for the corporate tax previously paid. This will promote investment which in turn means business expansion and more production and jobs. Specifically, I recommend that the credit be allowed on an increasing scale over the next 3 years. For this year, I recommend that a credit of 5 percent be allowed; for 1955, a credit of io percent; and, in I956 51986-60 10 93

Page  94 Public Papers of the Presidents and later years, 15 percent. To avoid shifts in the payment dates of corporation dividends, these credits should apply to dividends received after July 31 of each year. To give the full benefit immediately to small stockholders, I recommend that the first 50 dollars of dividends be colmpletely exempted from tax in I954 and that the first ioo dollars be exempted in I 9 5 5 and later years. I 0. Estimated returns.-The burden on those required to file estimated tax returns should be reduced by increasing the number of optional ways in which an individual can estimate his tax without being subject to penalty for an underestimate. I recommend also that the penalties resulting from underestimates be simplified by being stated as a 6-percent interest charge on deficiencies. i i. Filing date.-To reduce the burdens of preparing and filing returns in the early months of the year, I recommend that the March I5 filing date for individuals be changed to April I. In the taxation of business the same objectives of fairness, simplicity, and reduction of tax barriers to production and normal economic growth are important. The present tax law should be revised on the basis of these standards. Particular attention should be given in the revision of the law to the problems of small and growing business concerns. I cannot emphasize too strongly the social and economic importance of an environment which will encourage the formation, growth, and continued independent existence of new companies. i2. Depreciation.-A liberalization of the tax treatment of depreciation would have far-reaching effects on all business and be especially helpful in the expansion of small business whether conducted as individual proprietorships, partnerships, or corporations. At present, buildings, equipment, and machinery are usually written off uniformly over their estimated useful lives. The deductions allowed, especially in the early years, are often below the actual depreciation. This discourages longrange investment on which the risks cannot be clearly foreseen. It discourages the early replacement of old equipment with new and improved equipment. And it makes it more difficult to secure financing for capital investment, particularly for small business organizations. I recommend that the tax treatment of depreciation be substantially changed to reduce these restrictions on new investment, which provides 94

Page  95 Dwight D. Eisenhower, 1954 q I4 a basis for economic growth, increased production, and improved standards of living. It will help the manufacturer in buying new machinery and the storekeeper in expanding and modernizing his establishment. It will help the farmer get new equipment. All of this means many more jobs. Specifically, I recommend that business be allowed more freedom in using straight-line depreciation and in selecting other methods of depreciation. Larger depreciation charges should be allowed in the early years of life of property by the use of the declining-balance method of depreciation at rates double those permitted under the straight-line method. Other methods which give larger depreciation in early years should be accepted, so long as they do not produce deductions which exceed those available under the declining-balance method. The new methods of depreciation should be allowed for all investments in buildings, equipment, and machinery made after January I, I954. This would include farm buildings and equipment and new construction of commercial and industrial buildings and rental housing. Faster depreciation, it should be noted, will merely shift the tax deductions from later to earlier years. It will not increase total deductions. The change should, in fact, increase Government revenues over the years because of the stimulation which it will give to enterprise and expansion. In addition to the tax treatment of depreciation, which is important for all business, there are other features of the tax law which are of special importance to small business. 13. Research and development expenses.-At present, companies are often not permitted to deduct currently for research or development expenses. This rule is especially burdensome to small concerns because large companies with established research laboratories can usually get immediate deductions. I recommend that all companies be given an option to capitalize or to write off currently their expenses arising from research and development work. Our tradition of initiative and rapid technical improvements must not be hampered by adverse tax rules. 14. Accumulation of earnings.-At present, the penalty tax on excessive accumulations of corporate earnings operates to discourage the growth of small companies which are peculiarly dependent on retained earnings for expansion. The tax in some form is necessary to prevent avoidance of individual taxes by stockholders, but I recommend that the law be changed 95

Page  96 41 I 4 Public Papers of the Presidents to make the Government assume the burden of proof that a retention of earnings is unreasonable. I5. Taxation of partnerships.-The tax law applicable to partnerships is complex and uncertain. I recommend that it be simplified and made definite. It should be possible to form partnerships and make changes in them without undue tax complications. i 6. Optional tax treatment for certain corporations and partnerships.Small businesses should be able to operate under whatever form of organization is desirable for their particular circumstances, without incurring unnecessary tax penalties. To secure this result, I recommend that corporations with a small number of active stockholders be given the option to be taxed as partnerships and that certain partnerships be given the option to be taxed as corporations. 17. Corporate reorganizations.-The tax law applicable to reorganizations and recapitalizations of corporations is also complex and uncertain. This part of the law should be simplified and made sufficiently definite to permit people to know in advance the tax consequences of their actions. The owners of small corporations frequently find it necessary to rearrange their interests in a corporation in anticipation of estate taxes, to secure new capital, or to make stock available for a new management group. I recommend that the tax law permit tax-free rearrangements of stockholders' interests in corporations, so long as no corporate earnings are withdrawn. Such changes will remove some of the tax pressures which force the sale of independent companies to larger corporations. At the same time, the law should be tightened to prevent abuses by which corporate earnings are withdrawn through the issuance and redemption of corporate securities. It should also be amended to avoid abuses through the purchase of corporations to acquire their rights to loss carryovers. i8. Loss carryback.-At present, losses may be carried back and offset against prior earnings for i year and carried forward to be offset against future earnings for 5 years. I recommend that the carryback be extended to 2 years. This will benefit established companies which become distressed. The 5-year carryforward should be continued to permit new businesses to offset their early losses against later profits. I 9. Soil conservation expenses.-At present, only limited and uncertain tax deductions are allowed for soil conservation expenses on farms. I recommend that such deductions be allowed up to 25 percent of the farmer's gross income. 96

Page  97 Dwight D. Eisenhower, 1954 e I4 20. Accounting definitions.-Tax accounting should be brought more nearly in line with accepted business accounting by allowing prepaid income to be taxed as it is earned rather than as it is received, and by allowing reserves to be established for known future expenses. 2I. Multiple surtax exemptions, consolidated returns, and intercorporate dividends.-I recommend that the law be tightened to remove abuses from the use of multiple corporations in a single enterprise. I also recommend that the penalty tax on consolidated returns and intercorporate dividends be removed over a 3-year period. 22. Business income from foreign sources.-I recommend that the taxation of income from foreign business investments be modified in several respects. The investment climate and business environment abroad are much more important than our own tax laws in influencing the international flow of capital and business. Nonetheless, our capital and management know-how can be helpful in furthering economic development in other countries, and is desired by many of them. Our tax laws should contain no penalties against United States investment abroad, and within reasonable limits should encourage private investment which should supplant Government economic aid. Specifically, I recommend the following new provisions in our taxation of business income from foreign sources: (a) Business income from foreign subsidiaries or from segregated foreign branches which operate and elect to be taxed as subsidiaries should be taxed at a rate I4 percentage points lower than the regular corporate rate. This lower rate of tax should apply only to earnings after January I, I954. (b) The present definition of foreign taxes which may be credited against the United States income tax should be broadened to include any tax other than an income tax which is the principal form of taxation on business in a country, except turnover, general sales or excise taxes, and social security taxes. This country, by its tax laws, should not bring indirect pressure on other countries to adapt their tax systems and rates to ours. (c) The overall limitation on foreign tax credits should be removed. This limitation discourages companies operating profitably in one foreign country from starting business in another foreign country where operations at a loss may be expected in the first few years. 97

Page  98 Public Papers of the Presidents (d) Regulated investment companies concentrating on foreign investments should be permitted to pass on to their stockholders the credit for foreign taxes which would be available on direct individual investments. 23. Payment dates of corporation income tax.-Over the past several years, corporation income tax payments have been gradually shifted forward into the first two of the regular quarterly dates. By 1955, the entire tax will be due in two equal installments in March and June. The irregularity of tax receipts increases the problems in managing the public debt and is an unsettling influence in the money markets. The irregularity of tax payments also may make it harder for corporations to manage their own financing. I recommend that, beginning in the fall of I955, a start be made in smoothing out corporation income tax payments by requiring advance payments in September and December before the end of the taxable year. Each of these payments should be made at 5 percent of the amount due for the entire year in I955, rising to 25 percent each in I959 and later years. These advance payments will require estimates of income for the year somewhat comparable to those now required of individuals. Though estimates of profits are difficult to make accurately, no payments will be required before the middle of the ninth month of a business year. 24. Administrative provisions.-The administrative features of the tax laws are unnecessarily complex. Different provisions have been adopted over the years to deal with particular problems, with little regard to consistency. Specifically, I recommend that the parts of the law covering assessments, collections, interest and penalties, the statute of limitations, and other administrative provisions be simplified and brought together in one place. This will result in savings to both taxpayers and the Government. An effective and fair administration of the tax laws is vital to every individual in the country. The Internal Revenue Service has been revitalized during the past year and is being organized and managed on a basis that will assure fair and equal treatment to all taxpayers, maximum realization of taxes from revenue laws, and the contribution by each taxpayer of the share of the cost of Government that Congress intends that he should make. The regulations and administration of the tax laws are being tightened to prevent abuses by which a small minority of taxpayers avoid their fair 98

Page  99 Dwight D. Eisenhower, 1954 share of taxes by misuse of expense accounts and other improper practices. 25. General simplification of tax laws and other revisions.-The revision of the tax laws should be comprehensive. Many unnecessary complications have developed over the years. The entire Internal Revenue Code needs rewriting and reorganization. Jointly, the Treasury Department and the staff of the congressional committees have developed many recommendations for changes other than those which I have described here. Some of these relate to the estate and gift tax, and the administrative provisions of the excise taxes. The review of the present tax system in the Treasury Department has not yet led to final conclusions in many other situations that require further study before any recommendations for change can be properly made. These subjects include the tax treatment of capital gains and losses, the special problems of the oil and mining industries, the tax treatment of cooperatives and organizations which are wholly or partially tax exempt, as well as the provision of retirement income for people not covered by pension plans. The tax reforms and revisions covered by the foregoing 25 recommendations make the income tax system fairer to individuals and less burdensome on production and continued economic growth. After their adoption, further reductions in Government expenditures will make possible additional reductions in the deficit and tax rates. I do not believe that the budgetary situation justifies any tax reductions beyond those involved in the proposed tax revision and in the tax changes which occurred on January i. Accordingly, I repeat my recommendation of last May that the reduction in the general corporate income tax rate be deferred for another year. Excise taxes provide a relatively small proportion of our total tax revenues. In the fiscal year I955, they are estimated to produce io billion dollars at existing rates as compared with 2o billion dollars from corporation income taxation and 30 billion dollars from individual income taxes. Of this io billion dollars, more than half comes from the excise taxes on liquor, tobacco, and gasoline. Because of the present need for revenue, I recommend that the excise taxes scheduled to be reduced on April I, including those on liquor, tobacco, automobiles, and gasoline, be continued at present rates; and that any adjustments in the other excise taxes be such as to maintain the total yield which we are now receiving from this source. 99

Page  100 (I 14 Public Papers of the Presidents SUMMARY OF OTHER LEGISLATIVE PROPOSALS The administration has developed a dynamic, progressive, and at the same time wholly practical legislative program. Its major outlines are set forth in the State of the Union Message, which I delivered to the Congress on January 7. Since that date, I have forwarded to the Congress the details of my recommendations with respect to the steps which I believe should be taken: (i) To modernize and make effective our agricultural laws (January i i); (2) to bring up to date and to improve the Labor-Management Relations Act of I947 (January iI); (3) to extend and make more equitable the old-age and survivors insurance system (January I4); (4) to chart a new course in Federal cooperation and support for putting up-to-date medical and hospital care at the disposal of our citizens (January i8). On January 25 I shall present a program which will, for the first time, bring together into a coordinated and forward-looking set of policies the housing and community development programs of the Federal Government. Within a few days thereafter, I expect to make certain recommendations with respect to amendments to the Atomic Energy Act. These are discussed in more detail in subsequent sections of this message. These measures, together with the legislative proposals which will be presented in the course of the next several months with respect to foreign assistance and trade, are the foundation stones for the legislative program of this administration. All of them call for extensions of existing legislation or the enactment of new legislation. All of them are necessary. They will help us to protect the freedom of our people, to maintain a strong and growing economy, and to concern ourselves with the human problems of the individual citizen. Keyed to these foundation stones are the other individual measures which I have already recommended or which I shall recommend as soon as the necessary information upon which to base recommendations can be prepared. To some extent these other measures are basically improvements in program and are less precisely definable in terms of new costs attributed to them. IOO

Page  101 Dwight D. Eisenhower, 1954 i 14 SUMMARY OF OTHER LEGISLATIVE PROPOSALS 1955 BUDGET [Fiscal years. In millions] I954-I955 Recommended new obligational Estimated Function and program authority expenditures EXTENSION OF PRESENT MAJOR PROGRAMS National security: Military public works, Department of Defense........... $I, o8. o $Ioo00. Mutual military program............................. 2, 500.0 700.0 International affairs and finance: Mutual economic and technical cooperation............. 875. 300.0 Surplus agricultural commodities disposal.............. 300.......... Contributions to voluntary international programs....... I35. 70.0 Agriculture and agricultural resources: Increase in borrowing authority of the Commodity Credit Corporation.... I, 750.0........... Transportation and communication: Federal-aid highway program...................... 575........... Forest highways.................................... 22.5........... Subtotal, extension of present major programs......... 7, 265.5 I, 170.0 NEW LEGISLATIVE PROGRAM Social security, welfare, and health: Grants to States for public assistance.................. I08. o I o8. o Expansion of grants for hospital construction............ 62.6 5.6 Program to stimulate wider coverage and greater benefits from private health insurance....................... 26.2 I. I Expansion of vocational rehabilitation services for the disabled............................................. 8.8 7.8 Creation of a National Commission for Health Improvement.............................................. 0.3 0.3 Housing and community development: Advance planning of local public works................................... I. 3.0 Education and general research: Program to strengthen the Office of Education.......... 0.3 0.3 National Conference on Education.................... 1 2.0 2 I.8 Agriculture and agricultural resources: Cooperation with State and local agencies on watershed protection........ 3.0 2.4 Natural resources: Aid for non-Federal development of water resources..... I. I0.o Federal projects.................................... 0.5 0.4 Transportation and communication: St. Lawrence Seaway............................... I05. 5.8 Proposed postal rate increases (increased revenue)....... -240.0 -240.0 Labor and manpower: Expansion of unemployment compensation coverage: Administrative costs.................. 22. I 22.0 1 Recommended for the fiscal year 1954. 2 Includes 1.5 million dollars in the fiscal year 1954. IOI

Page  102 ([ 14 Public Papers of the Presidents SUMMARY OF OTHER LEGISLATIVE PROPOSALS-Continued 1955 BUDGET-Continued [Fiscal years. In millions] 1954-1955 Recommended new obligational Estimated Function and program authority expenditures NEW LEGISLATIVE PROGRAM-continued General government: Unemployment compensation for Federal civilian employees.......................................... $25.0 $25.o Increase in Federal payment to the District of Columbia.. I.0 Io. o District of Columbia public works program............. 7.0 5.0 Subtotal, new legislative program: I954........................................... 12.0 -.5 I955........................................... 148.8 - 33-0 Total legislative proposals: Fiscal year 1954.................................. 2.0 1.5 Fiscal year I955................................. 7, 414.3 I, I37 0 PROPOSED LEGISLATION AFFECTING TRUST FUNDS 1955 BUDGET [In millions] Function and program Social security, welfare, and health: I955 Expansion and improvement of old-age and survivors insurance: estimated Additional receipts.............................................. $I0oo.o Additional disbursements......................................... 408.0 Net accumulation in reserve.................................... -308.0 Labor and manpower: Extension of coverage of unemployment insurance: Additional deposits by States..................................... i45.0 Additional withdrawals by States................................. 60.0 Net accumulation in reserve................................... 85.0 To the extent that it has been possible to assess with reasonable accuracy the cost of major measures in the legislative program, estimates have been included in this budget. These estimates are summarized above. One recommendation, the proposed increase in postal rates, would add to Federal revenues. Other minor measures, in themselves too small to be iden 102

Page  103 Dwight D. Eisenhower, 1954 q I4 tified in summary tables, are discussed and recommended in respective summary sections and chapters of this budget. Their total cost is small and has been adequately provided for in the reserve for contingencies. DISCUSSION OF THE BUDGET I now present and describe pertinent details of the budget. The figures shown in the budget are careful estimates based on present and foreseeable conditions. Changes in the budget can result from congressional action. Still others can result from economic factors which change the price of goods purchased by the Government or the incomes received and taxes paid by the citizens of the Nation. Changes in international and domestic conditions could alter this budget before the end of the fiscal year I 95 5 The presentation of the figures in the budget for the fiscal year I955 reflects two significant clarifications. First, the appropriation to the railroad retirement trust fund equal to the taxes under the Railroad Retirement Tax Act has been excluded from the totals of budget expenditures and deducted from the total of budget receipts. This does not affect the budget surplus or deficit, and has been applied to the figures for all the years shown in this budget so that they are on a comparable basis. This change properly presents an item which has previously overstated both budget receipts and expenditures in an equal amount. The collection of employment taxes on the railroad industry is in effect collections for a trust fund and not for Government operations. Their transfer to the trust fund should be made directly as a deduction from receipts and not shown as a budget expenditure. The second significant clarifying change in presentation relates to the fact that the budget expenditure totals in the past have understated the scope of the Government's activities in that they included only the net basis of the spending by a number of enterprises which are engaged in business-type operations with the public. In the course of carrying out their functions, each of these public enterprises receives money from its customers or clients-interest and collections on loans or payments for goods delivered or services rendered. By law, most public enterprises may use their receipts and collections to carry on the operations for which they were created. These receipts and collections from the public in the fiscal year I 955 total I I billion dollars. 103

Page  104 J IJ4 Public Papers of the Presidents The public enterprise activities are carried on through "revolving funds." Some of the enterprises are organized as Government corporations; others, such as the Post Office, are unincorporated. In the summary tables of previous budgets, the receipts of such funds were subtracted from expenditures and only the difference was reported as a budget expenditure. In those cases where receipts exceeded expenditures for the year a negative figure was included in the summary expenditure tables. While the use of either the gross figures or the net figures produces an identical effect on the budget surplus or deficit, the former method of presenting only net figures in the summary tables did not reveal the full scope of the Government's financial transactions. When Government agencies engaged in lending activities use their collections on old loans to make new loans, the net expenditure figure fails to disclose the volume of new lending and the new risks involved. In this budget, the summary tables present the expenditures of the public enterprise funds on both a gross and net basis. The difference reveals the magnitude of receipts from the public in the "revolving funds." BUDGET RECEIPTS The estimates of budget receipts for the fiscal year 1955 in the following table are in accordance with my recommendations for taxes, and are based upon the continuation of business conditions, personal income, and corporation profits at substantially the present high levels. BUDGET RECEIPTS [Fiscal years. In millions] '953 Source actual Individual income taxes: Existing legislation........................... $32, 478 Proposed legislation................................... Corporation income taxes: Existing legislation............................. 2 I, 595 Proposed legislation................................... Excise taxes: Existing legislation.............................. 9, 943 Proposed legislation................................... Employment taxes: Federal Insurance Contributions Act: Existing legislation............................ 4, o86 Proposed legislation................................. I Estimated. I954 '955 estimated estimated $33, 433........!22, 8og............. $30, 908 -585 i9, 694 570 IO,038 9,22I I89 I) OIa > 4, 6oo........ 5, 369 I00 104

Page  105 Dwight D. Eisenhower, 1954 I4 BUDGET RECEIPTS-Continued [Fiscal years. In millions] '953 '954 I 955 Source actual estimated estimated Employment taxes-Continued Federal Unemployment Tax Act: Existing legislation.......................... $276 $290 $292 Proposed legislation......................................... I6 Railroad Retirement Tax Act....................... 626 640 640 Railroad Unemployment Insurance Act.......... IO................. Estate and gift taxes................................ 89i 955 955 Customs....................................... 6I3 590 590 Internal revenue not otherwise classified................. 49................. Miscellaneous receipts........................... I, 827 2, 3I3 2, 454 Total receipts............................... 72, 394 75, 857 7I, 242 Deduct: Appropriation to Federal old-age and survivors insurance trust fund: Existing legislation..........................4...4 o86 4, 6oo 5, 369 Proposed legislation......................................... I 00 Appropriation to railroad retirement trust fund.. 625 640 640 Refunds of receipts: Existing legislation.............................3, I20 2, 988 2, 644 Proposed legislation......................................... -153 Adjustment to daily Treasury statement basis....... +30................. Budget receipts............................... 64, 593 67, 629 62, 642 Budget receipts exclude refunds of overpayments made to taxpayers and also exclude the employment taxes which are appropriated and transferred to the old-age and survivors insurance trust fund and to the railroad retirement trust fund. Since these items are also excluded from budget expenditures, the surplus or deficit is not affected. APPROPRIATIONS AND OTHER BUDGET AUTHORIZATIONS New obligational authority represents the total of all new authorizations enacted by the Congress permitting Government agencies to incur financial obligations. In addition to new appropriations, it includes mainly authorizations to enter into contracts prior to the enactment of appropriations, and authorizations to make expenditures from borrowed money. I05

Page  106 ( I4 Public Papers of the Presidents NEW OBLIGATIONAL AUTHORITY BY MAJOR PROGRAM [Fiscal years. In billions] 1954 estimated Budget Major program National security..................... Veterans' services and benefits.......... International affairs and finance........ Social security, welfare, and health...... Housing and community development... Education and general research........ Agriculture and agricultural resources... Natural resources..................... Transportation and communication..... Finance, commerce, and industry...... Labor and manpower................. General government.................. Interest............................. Reserve for contingencies.............. Total............................ 1 Adjusted for purposes of comparability. 2 Less than 50 million dollars. IC act )53 docu- Current tual ment 1 estimate 157.2 $49.1 $39.3 4. I 4.6 4.2 2.2 I.9 1.2 1.9 1.9 1.9 1.3 1.5 2.3 1.4 I.4 I.0 1.9 2.1I i.8. I. I. I.3 -3 -3 1.4 I.5.I 6.6 6.4 6.6...... I 80.2 7I.8 60.7 1955 recommended $34-9 4.0 I.5 2.8 1.0 I.5 (2) *3 I.0 6.9.2 56.3 In prior years, new obligational authority has included all reappropriations. In conformity with congressional procedures, this budget does not include as new obligational authority reappropriations for two large programs, the mutual security program, and the construction program of the Atomic Energy Commission. These are authorized annually but are in effect continuing programs. The resulting reduction in reported new obligational authority is offset by a corresponding increase in the unspent balances of appropriations brought forward from one fiscal year to the next. New obligational authority in this budget also excludes the appropriation equivalent to taxes for the railroad retirement account, which has been discussed elsewhere. These changes are set forth in the following table: io6

Page  107 Dwight D. Eisenhower, 1954 q I4 NEW OBLIGATIONAL AUTHORITY-RECONCILIATION [Fiscal years. In millions] 1954 estimated 1953 Budget 1955 Description actual document Current estimated New obligational authority, midyear review basis......................... $81, 373 $72, 883 $63, 981......... Deduct reappropriations for: Mutual security program........... 447........ I, 944......... Atomic Energy Commission-construction.............................. 65 404 679......... Appropriations for railroad retirement taxes..................... 625 66o 640......... New obligational authority, present basis. 80, 236 71, 8I9 6o, 718 $56, 283 Deduct authorizations other than current appropriations................ 7, 879 7,504 8,889 9, 260 Current appropriations................ 72, 357 64, 315 1 5I 829 47, 023 1 Includes supplemental appropriations estimated in this budget at about o.5 billion dollars; hence appropriations actually enacted are 51.3 billion dollars. The Congress enacted increasing amounts of new obligational authority after the beginning of hostilities in Korea in June I950. This new obligational authority was much greater than the amount of budget expenditures for each year and also greater than budget receipts in each year. Thus it represented commitments for future spending in excess of the revenues then being provided by the tax system. The estimate of total appropriations and other authorizations for the fiscal year 1954 and, likewise, the total of my recommendations for new obligational authority for the fiscal year I955 are less than estimated budget expenditures and also less than estimated budget receipts for the corresponding years. This is in direct contrast to the substantial excess of appropriations over revenues in recent prior years. It means we now are reducing the large amount of outstanding unfinanced commitments incurred under past appropriations and are making possible lower future levels of expenditures. The major national security programs still require the largest part of our new budgetary authorizations. Of the total new obligational authority recommended for the fiscal year I955, 34.9 billion dollars, or about 62 percent, is for the military functions of the Department of Defense, the atomic energy program, the mutual military program with 107

Page  108 e 14 Public Papers of the Presidents our allied nations of the free world, and the stockpiling of strategic and critical materials. In the detailed review which the appropriations committees and the Congress make of the operations of each agency and its budget proposals before enacting new obligational authority it is necessary to have the budget proposals set forth separately for each agency. Part II of the I955 budget document is organized on such a basis. It presents summary and detailed information on my recommended appropriations for each agency. The individual appropriations are supported by schedules which reconcile the amount of the appropriation recommended with the obligations which are expected to be incurred. The obligation figures are reconciled with the estimated expenditures. The activities carried on within the appropriations and the workloads involved are also described for individual appropriations. This grouping of the budget proposals by agencies, as contrasted with grouping by program or function principally employed in the budget summaries, is not only required for congressional action but is also the essential presentation for those of our citizens who are interested in following the progress of the budget proposals in the Congress. The following table is derived from part II of the I955 budget document. It shows that the new obligational authority I am recommending for the fiscal year I955 is 56.3 billion dollars. This is 35.i billion dollars less than the highest post-Korean amount of 9I.4 billion dollars enacted for the fiscal year I952. It is 15.5 billion dollars less than the amount recommended to Congress for the fiscal year I954, in the budget document dated January 9, I953, and 4.4 billion dollars less than the currently revised estimate for the fiscal year I954. UNEXPENDED BALANCES In some cases, a considerable time period elapses between the enactment of an appropriation and the expenditure of all the Federal funds appropriated. For example, several years may elapse between the time a contract is negotiated pursuant to an appropriation for aircraft or other heavy military equipment and the time all the equipment ordered has been delivered and paid for by the Government. Thus many of the expenditures being made by the Government in the fiscal years 1954 and I955 result from obligational authority enacted and from contracts negotiated in prior years. I08

Page  109 Dwight D. Eisenhower, 1954 I 14 NEW OBLIGATIONAL AUTHORITY BY AGENCY [Fiscal years. In millions] 1954 estimated Budget Current 1955 recomAgency I953 actual document1 estimate mended Legislative branch................... $76 $85 $83 $67 The Judiciary......................... 28 29 29 30 Executive Office of the President....... 9 8 9 9 Funds appropriated to the President.... I, 908 I, 532 932 I, I85 Independent offices: Atomic Energy Commission.......... 4, 079 I, 593 I, 042 I, 366 Veterans Administration............ 4, 91 4, 554 4, 273 3, 893 Other............................ I, 050 I, I34 665 592 General Services Administration....... 37 395 63 55 Housing and Home Finance Agency... I, 357 56 454 85 Department of Agriculture............. I, 51o I, 659 2, 499 2, 935 Department of Commerce.............. 911 I, 078 982 973 Department of Defense: Military functions................... 48, 776 41,319 34, 495 30, 993 Mutual military program............ 4, 236 6, II9 3, 8oo 2, 500 Civil functions...................... 598 688 505 580 Department of Health, Education, and Welfare........................... I, 934 I, 773 I,863 I, 806 Department of the Interior............. 590 664 499 488 Department of Justice.................. 173 187 179 178 Department of Labor................. 295 332 299 388 Post Office Department (general fund).. 660 669 439 89 Department of State.................. 241 332 142 269 Treasury Department................. 7, 279 7, IOI 7 250 7,471 District of Columbia (general fund)..... 8 I2 i6 31 Reserve for contingencies...................... 50 IOO 200 Total............................ 80, 236 7, 819 60, 718 56, 283 1 Adjusted for purposes of comparability except for reorganization transfers. During the fiscal year I955, it is estimated that 45 percent of total budget expenditures will be from obligations incurred under appropriations and other authorizations enacted in years before I955, and 55 percent will be from the new obligational authority I am recommending for 1955. The reductions in appropriations that were made last year and the further reductions I am recommending for the fiscal year I955 decrease the accumulated backlog of outstanding commitments which lead to later budget expenditures. Balances of appropriations unexpended at Iog

Page  110 e I4 Public Papers of the Presidents the end of the year and still available for expenditure during the next year are shown in the following table for each fiscal year since I950. The amounts shown have been modified to reflect related technical changes in handling reappropriation items (see pp. io6-i07) and to restrict unexpended balances to items of appropriations, excluding, for example, public debt authorizations. For the most part, these appropriation balances have been obligated or committed, but the expenditures take place one or more fiscal years after the enactment of the appropriation. UNEXPENDED BALANCES OF APPROPRIATIONS [In billions] Amount brought Amount forward into carried over Fiscalyear the year to next year 1950.......................................................1 $I I. 5 1 $14. I 1951.................................................... 1 I4 I 1 50. 3 1952................................................. 1 50. 3 68. 8 1953................................................. 68. 8 78. 7 1954 estim ated....................................... 78. 7 66. 5 1955 estimated............................................ 66. 5 54. I 1 Estimated. Detailed accounting data not available. BUDGET EXPENDITURES Budget expenditures in the fiscal year 1955 are estimated at 65.6 billion dollars, a reduction of 5.3 billion dollars from the revised estimate of the fiscal year 1954 expenditures, a reduction of 12.3 billion dollars from the expenditures estimated in the 1954 budget document, and a reduction of 8.4 billion dollars from actual expenditures in the fiscal year 1953. As mentioned earlier, the summary tables in the budget have been made more revealing by the presentation of expenditures of public enterprises on both a gross and a net basis. The difference between the gross and net figures reveals the magnitude of the receipts and collections of the "revolving funds" which are used for making new loans and other expenditures. In the summary tables of this budget, these receipts are labeled "applicable receipts of public enterprise funds." The table on the following page shows both gross and net figures for the fiscal year I 955, compared with net figures (on the old basis) for I 954 and I 953. 110O

Page  111 Dwight D. Eisenhower, 1954 BUDGET EXPENDITURES BY MAJOR PROGRAM ( 144 [Fiscal years. In millions] I955 estimated Major program National security....... Veterans' services and benefits.............. International affairs and finance.............. Social security, welfare, and health........... Housing and community development......... Education and general research............. Agriculture and agricultural resources........ Natural resources....... Transportation and communication......... Finance, commerce, and industry............. Labor and manpower... General government.... Interest............... Reserve for contingencies................. Adjustment to daily Treasury statement basis................ Total.............. Gross expenditures $44, 86o 4, 223 I, 885 Applicable receipts of public enterprise funds (1) Budget expenditures (net) $44, 86o 1954 estimated I953 actual Budget expenditures (net) Budget exe rndi Budget document $54, 70o Current estimate $48, 720 tures (net) $50, 274 $31 4, 92 4,564 635 I, 250 2, i6i 4, i6o 4, 298 I, 779 2, 216 I, 87 807 ) 807,9I9, 947 I, 910 I, 903 2, I80 -277 509 288 57 278 223....... 223 6, 752 4, 386 2,366 I,337 234, I03 4,277 2,859, 418 I, 827 2, 654 I, 38I I, I72 2, I1I I, 856 I50 I64 303 265, 554 I, I75 6, 420 6, 600 549 277 2, 936 I, 358 2, 077 76 28i 1,439 6, 583 917 282 I, I64 6, 875 755 4....... 162 28i I, 160 6, 875 150 I50 40 75 76, 655 II, o85 65,570 77, 927 70, 902 -292 73, 982 1 Less than 500,000 dollars. The fuller presentation in the summary tables does not have any effect on the budget surplus or deficit, or upon the changes in the public debt. Nor does it indicate any new method of financing these Governmentowned enterprises. However, it does give a more complete disclosure of the Government's financial transactions with the general public. III

Page  112 Public Papers of the Presidents As indicated in the preceding table, the term "budget expenditures" refers to the net expenditure figures. The term "gross expenditures" will be used wherever the activities of public enterprises are discussed on a gross basis. The table which follows shows the gross figures for all 3 years, reduced to the older net basis by a single deduction for each year at the bottom of the table. GROSS EXPENDITURES BY MAJOR PROGRAM [Fiscal years. In millions] 1954 estimated I 953 Budget Current I 955 Major program actual document estimate estimated National security..................... $50, 274 $54, 700 $48, 721 $44, 86o Veterans' services and benefits............. 4, 327 4, 590 4, 190 4, 223 International affairs and finance............ 2, 656 2, 604 2, 249 i, 885 Social security, welfare, and health...... I, 910 I, 921 I, 947 I, 807 Housing and community development... 2, I I8 i, 696 2, 357 I, 903 Education and general research....... 277 288 278 223 Agriculture and agricultural resources... 6, 448 6, 362 8, 087 6, 752 Natural resources...................... I, 499 I, 568 I, 349 I, 337 Transportation and communication.... 4, 474 4, 570 4, 446 4, 277 Finance, commerce, and industry....... I, 205 897 I, 151 917 Labor and manpower...................... 284 306 267 282 General government.................... I, 444 I, 558 I, 178 i, 164 Interest.............................. 6, 583 6, 420 6, 6oo 6, 875 Reserve for contingencies........................... 40 75 150 Adjustment to daily Treasury statement basis.............................. -292......................... Subtotal......................... 83, 207 87, 520 82, 895 76, 655 Deduct applicable receipts of public enterprise funds........................... 9, 225 9,593 1 I, 993 ii, o85 Budget expenditures (net)............. 73, 982 77, 927 70, 902 65, 570 The figures for gross expenditures in this and related tables are derived from the detailed accounts of each Government agency contained in part II of the I955 budget document. On this basis, both the gross expenditures and the applicable receipts include some transactions relating to private bank loans guaranteed by the Commodity Credit Corporation and by the Export-Import Bank which involve no use of governmental funds. These amounts are: 112

Page  113 Dwight D. Eisenhower, I954 4 I4 GROSS EXPENDITURES AND APPLICABLE RECEIPTS, GUARANTEED LOANS [Fiscal years. In millions] 1954 estimated 1953 Budget Current I 955 Program and agency actual document estimate estimated International affairs and finance: ExportImport Bank............................ $4 $5 $82 $i88 Agriculture and agricultural resources: Commodity Credit Corporation.......... 340 383 I, 564 274 In the sections of this message discussing international affairs and agriculture, these figures are excluded from the totals to make them comparable to the basis used in other public enterprise accounts. This has no effect on net budget expenditures. My recommendations for each of the major programs of Government listed in the above tables are discussed in detail later in this message. Budget expenditures by agency are described in detail in part II of the 1955 budget document, and are summarized in the table on the following page. The analysis on page I I5 shows that budget expenditures for the national security program and for those items which are relatively fixed under provisions of existing and proposed legislation amount to an estimated 59 billion dollars in the fiscal year I955, 90 percent of all budget expenditures. The remaining "all other," 6.6 billion dollars, or IO percent of the total, include some items related to the first two categories. For example, those related to our national security effort are the international programs for economic development, the Selective Service System, and civil defense. Examples of programs which are partly controllable through the budgetary process are the mortgage purchases of the Federal National Mortgage Association and a few relatively small grant-in-aid programs. The bulk of this category is made up of expenditures for the day-to-day operations of the Government, such as law enforcement and administration, tax collection, the various regulatory agencies, the administration of other services rendered to the public, and the cost of direct civil public works. I I3

Page  114 1 I14 Public Papers of the Presidents BUDGET EXPENDITURES BY AGENCY [Fiscal years. In millions] 1955 estimated Applicable receipts of public enterGross ex- prise penditures funds Budget expenditures (net) 1954 estimated Budget expenditures (net) Budget Current document 1 estimate $70 $63 28 29 I953 actual Budget expenditures (net) $6i 27 Agency Legislative branch............. The Judiciary................ Executive Office of the President...................... Funds appropriated to the President...................... Independent Offices: Atomic Energy Commission.. Veterans Administration..... Other..................... General Services Administration....................... Housing and Home Finance Agency.................... Department of Agriculture..... Department of Commerce..... Department of Defense: Military functions........... Mutual military program.... Civil functions............. Department of Health, Education, and Welfare........... Department of the Interior.... Department of Justice......... Department of Labor......... Post Office Department (general fund)..................... Department of State.......... Treasury Department......... District of Columbia (Federal contribution)............... Reserve for contingencies...... Adjustment to daily Treasury statement basis............. $66...... $66 30...... 30 9...... 9 8 Io 9 I,622 $242 I,380, 956 1,702 1,828 2, 425 4, 235 3, 795 753 I, 712 4, 760 I, 028 37, 575 4, 275 654 I, 789 562 I76 362 2, 775 214 7, 653 (2) 2,425 70 4, I65 3, 37 478 2 75I 2,097 -385 2,263 2,497 49 979 (2) 114 2 34 I 2,686 208 37, 575 4, 275 540 1,787 528 176 361 89 214 7, 445 2, 700 4, 494 979 I, I26 380 2, 031 I, 031 45, 500 5, 700 640 I, 904 659 184 321 669 317 7, 178 12 40 936 I, 107 — I03 385 2,945 3,217 i, o80 I, 063 4I,550 43,6io 4,200 3, 954 617 813 I,949 1,920 549 587 184 I71 299 300 440 659 159 271 7,292 7, 325 i6 1I2 75...... 2, 200 4, I90 520 I, 79I 4,334 830 35...... 35 150...... 150 — 292 Total........... 76,655 i, o85 65,570 77,927 70,902 73,982 1 Adjusted for purposes of comparability except for reorganization transfers. 2 Less than 500,000 dollars. I 14

Page  115 Dwight D. Eisenhower, 1954 (I I4 The record of budget expenditures since the outbreak of aggression in Korea in June I950 shows considerable variation in the relative changes from year to year in the three major categories shown. While expenditures for national security have risen markedly and those for uncontrollable major programs have fluctuated within rather narrow limits, Government spending in all other categories has been steadily declining. ANALYSIS INDICATING CONTROLLABILITY OF NET BUDGET EXPENDITURES [Fiscal years. In millions] 1954 estimated Description National security program............. Relatively uncontrollable major programs under existing and proposed legislation: Legislative and the Judiciary......... Interest on public debt and refunds... Claims and judgments............... Veterans' compensation, pension, and benefit programs.................. Payments to employees' retirement funds............................ Payments to Railroad Retirement Fund for military service credits.......... Grants to States for public assistance... Grants to States for unemployment compensation and employment service administration...................... Veterans' unemployment compensation............................. Unemployment compensation for Federal employees.................... Federal-aid highway grants.......... Conservation of agricultural land resources.......................... Removal of surplus agricultural commodities......................... Agriculture price support............ Total............................ All other............................ Net budget expenditures........... 1953 actual $50, 274 88 6, 583 I29 Budget document $54, 700 98 6,420 65 Current estimate $48, 720 92 6, 6oo 148 1955 estimated $44, 86o 96 6, 875 135 3, 383 3,524 3,232 3,244 324 430 33 i, 330 35 i, 340 i, 34 32 35......... 389 i, 293 190 205 202 208 26 47 40 6i 509............ 25 540 541 555 254 225 I96 273 82 I, 943 I4, 905 8, 803 73, 982 75 729 I3, 765 9, 462 77, 927 205 I, 404 I4, I35 8, 047 70, 902 233 I, i65 I4, I I5 6, 595 65, 570 115

Page  116 9 I4 Public Papers of the Presidents NET BUDGET EXPENDITURES [Fiscal years. In billions] I950 I95I Description actual actual National security program..... $13. 0 $22.3 Relatively uncontrollable major programs.................. I 5. 6 12. 1 All other.................... I I.0 9.6 I952 actual $43.8 12. 3 9 -3 65.4 I953 actual $50.3 I4. 9 8.8 74 0 I954 I955 estimated estimated $48. 7 $44- 9 39.6 I4 - 44.0 I4. I 8. i 70.9 I4. I 6.6 65.6 Total.................... RECEIPTS FROM AND PAYMENTS TO THE PUBLIC Budget receipts, expenditures, and the budget surplus or deficit reflect transactions of funds which belong to the Federal Government. There are many other financial transactions of the Federal Government which involve funds the Government holds in trust for others, such as the social security trust funds. The transactions of these trust funds are shown separately in part III of the I955 budget document. They are not included in the budget totals of receipts and expenditures. As a rule, the trust funds are now building up accumulations; that is, as they build reserves for future liabilities, they are currently taking in more money than they pay out. By consolidating the trust funds with the budget transactions, and by eliminating intragovernmental and certain noncash transactions, it is possible to obtain a measure of the flow of money between the Federal Government as a whole and the public. RECEIPTS FROM AND PAYMENTS TO THE PUBLIC, EXCLUDING BORROWING [Fiscal years. In millions] 1954 estimated Budget Current I 955 1953 actual document esimate estimated Cash receipts from the public.......... $71, 282 $75, 150 $74, 932 $70, 842 Cash payments to the public........... 76, 554 81, 797 75, I66 70, 727 Excess of cash receipts........................................ I 15 Excess of cash payments............ 5, 272 6, 647 234......... The trust funds of our social security system reflect the increase in rate provided under existing law and the expected increase in payments resulting from proposed legislation increasing the coverage and benefits. Ii6

Page  117 Dwight D. Eisenhower, 1954 (I I 4 If the automatic increase in rate had taken place with no recommendation for increased coverage and benefits, the excess of cash receipts over payments estimated for the fiscal year I955 would have been a greater amount. NATIONAL SECURITY This budget is based on a new concept for planning and financing our national security program, which was partially applied in the budget revision recommended last spring for the fiscal year I954. Our military planning in previous years had been based on several successive assumed fixed dates of maximum danger, which were extended from time to time with procurement and personnel plans focused to achieve maximum readiness by each such date. This budget is aimed instead at providing a strong military position which can be maintained over the extended period of uneasy peace. It points toward the creation, maintenance, and full exploitation of modern airpower. Our military planners and those of the other nations of the free world agree as to the importance of airpower. But air forces must be complemented with land forces, amphibious forces, antisubmarine warfare forces, and fighting ships. The added emphasis on airpower complements our plans for improving continental defense against possible enemy attack. We expect to continue to improve the combat effectiveness of our forces by the application of new weapons and new techniques, and ultimately achieve far greater flexibility than heretofore attainable. The reassembly of our strategic reserve forces will be as dictated by world conditions and the forces kept in a high state of readiness to cope with any possible acts of aggression. This budget aims toward building to a maximum effectiveness all of this complex of military strength. It provides greater expenditures for airpower in the fiscal year 1955 than in any year since the close of World War II. The reorientation of our defense strategy makes this possible within a lower level of total expenditures for national security. With the shift in emphasis to the full exploitation of airpower and modern weapons, we are in a position to support strong national security programs over an indefinite period with less of a drain on our manpower, material, and financial resources. Today there is a truce in Korea. After 3 years of hostilities, we are now in the first year of an armed peace. But we are a long way from 51986-60 —i I117

Page  118 Public Papers of the Presidents achieving the kind of peace that is our goal. As long as the Communist threat to the free world exists, we must plan to maintain effective military strength in close cooperation with the other nations of the free world. Our basic security objective is to prevent another outbreak of aggression. WVe must create the necessary deterrent to any possible aggressor by maintaining a strong military position at home and abroad. To do this takes determination, human and material resources, and careful planning. The national security section of the budget includes not only the military functions of the Department of Defense, but also the mutual military program, the development of atomic energy, and the stockpiling of strategic and critical materials. These four major programs are related and designed for the basic purpose of our security. They complement each other and must be assessed in conjunction with the long-range planning which underlies the fiscal and legislative programs of this administration. The previous history of our military budgets has been one of feast or famine, depending upon the state of world affairs. In peacetime, appropriations have customarily been much reduced. In wartime, financial considerations have been largely ignored. Our present budgetary plans represent a departure from these practices. They provide for the continued maintenance of a strong military force which is within the financial capability of a sound economy. We cannot afford to build military strength by sacrificing economic strength. We must keep strong in all respects. It will be noted from the table on pages I 20-I 2 I that expenditures for the Department of Defense and the stockpiling program have been reduced in the fiscal year I954 and I am recommending a further reduction for the fiscal year I955. The reduction in the total Department of Defense expenditures will be effected despite the fact that expenditures for aircraft, shipbuilding, electronics, guided missiles, construction, research and development, and many other defense programs will continue at close to record peacetime levels. I am also recommending some increased expenditures in the fiscal year 1955 for the mutual military program and for atomic energy which will bring expenditures for these two programs to record levels. Nevertheless total spending for national security is estimated to decline about i.6 billion dollars from the fiscal year I953 to I954, and an additional 3.9 billion dollars from I954 to 1955.

Page  119 Dwight D. Eisenhower, 1954 This decline in national security expenditures reflects the dynamic longrange plan recommended by the Joint Chiefs of Staff for our military forces, the savings resulting from the economies effected by this administration, the cessation of hostilities in Korea, and the decrease in procurement-particularly with respect to vehicles, ammunition, and soft goodsmade possible by the improved supplies and materiel position. The defense team, both military and civilian, is working hard toward improvement of the organization, procedures, and methods of the entire Defense Establishment. Already much progress has been made. The Office of the Secretary of Defense has been reorganized, and the administrative structures of the three military departments are under review, with the purpose of making Secretaries of these departments truly responsible administrators and establishing clearer lines of responsibility within this concept. This will help in achieving the maximum economies that can be realized through improved management and administration. Considerable progress has been made in standardizing military procurement, and it is planned to reduce sharply the present approximately 4 million different procurement items. This alone will ultimately save hundreds of millions of dollars in procurement, warehousing, and distribution costs. The adoption of commercial maintenance practices for aircraft, vehicles, and other equipment is currently saving millions of dollars. Better transportation methods are being worked out which will produce additional economies. Savings are also being effected in personnel, procurement, and supply activities. Through these and similar economy programs, more defense for the taxpayers' dollar will be realized. Consistent with these plans for a sustained military capability at the lowest possible cost is an integrated plan of continental and civil defense. Such planning is necessary in order to hold our civilian losses from possible enemy attack to a minimum. Last summer I told the American people that "the Soviets now have the capability of atomic attack upon us, and such capability will increase with the passage of time." I made this statement shortly after it was established that the Soviet Union had successfully detonated a thermonuclear device which, if successfully converted into an offensive weapon and if exploded over our American cities, would be capable of effecting unprecedented destruction. II9

Page  120 q 14 Public Papers of the Presidents The administration has taken a number of actions to deal with this serious prospect. Funds are included in the Department of Defense budget to expand the system of continental defense which coordinates the actions of our radar outposts and our air, naval, and land forces. It will provide improved early warning of enemy attack and the men and equipment to resist any such attack. Expenditures for continental defense in the fiscal year 1955 are expected to be greater than ever before in our history. This budget reflects a new concept of civil defense which takes account of the destructive threat of modern weapons and which emphasizes improved warning of impending attack and planning for the dispersal of populations of potential target cities in advance of enemy attack. NATIONAL SECURITY [Fiscal years. In millions] Expenditures 1950 I195I 1952 1953 1954 actual actual actual actual estimated '955 estimated Item Gross expenditures: Direction and coordination of defense.................. Other central defense activities..................... Army defense............. Navy defense............... Air Force defense........... Proposed legislation......... Subtotal-Department of Defense.............. Mutual military program: Present programs......... Proposed legislation....... Development and control of atomic energy............ Stockpiling of strategic and critical materials.......... Total.................... Deduct applicable receipts..... Net budget expenditures....... 1 Less than 5oo00,000ooo dollars. $lo $I2 $13 $I5 $12 $13 199 353 379 394 438 562 3,983 7,469 15,635 16,242 14,200 10,198 4,100oo 5,582 io, 162 11,874 I1I,300 10,493 3,600 6,349 12,709 I5,085 I5,6oo00 16,209..................................... 100 11,892 19,765 38,898 43,6iO 41,550 37,575 130 99I 2,442 3,954 4,200 3,575...................................... 700 55~ 897 1,670 1,791 2,200 2,425 438 I3, oio (1) 13, 010 654 22,307 (1) 22,307 837 43, 847 (1) 43,847 9i9 50, 274 (1) 50, 274 770 48,720 (1) 48, 720 585 44, 86o (1) 44, 86o 120

Page  121 Dwight D. Eisenhower, I954 q 14 NATIONAL SECURITY-Continued [Fiscal years. In millions] New obligational authority Item Direction and coordination of defense.................... Other central defense activities.. Army defense................ Navy defense................ Air Force defense............. Proposed legislation........... Subtotal-Department of Defense................ Mutual military program: Present programs........... Proposed legislation......... Development and control of atomic energy............ Stockpiling of strategic and critical materials.............. Total new obligational authority................. I950 1951 I952 1953 I954 1955 recactual actual actual actual estimated ommended $II I80 4,392 4,359 5, 428...... $12 432 19, 588 12, 484 15, 203...... $I4 419 21, 354 i6, 220 22, 375...... $I5 400 15, 221 12, 689 20, 45I...... $13 762 12, 777 9, 526 11,417...... $I3 548 8, 236 9, 882 II, 206 I, Io8 I4,370 47,719 60,382 48,776 34,495 30, 993 I,359 5,222 5,29I 4,236 3,800..................................... 2, 500 794, 919 I, 266 4,079 I, 043 I, 366 425 2, 910 579 I34............. I6,948 57,770 67,518 57,225 39,338 34,859 Much planning, organization, and training remains to be done, however, to make this strategy of civil defense fully effective at all levels of government. It will be the Federal responsibility, as reflected in this budget, to provide warning of impending attacks, and to stockpile medical supplies. The Federal Government will not assume the responsibilities which belong to local governments and volunteer forces, but will supplement State and local resources, provide necessary information on weapons effects, and advise and assist States and localities. Many activities throughout the budget are related, directly and indirectly, to the national security. They are not all classified as national security for many reasons. Civil defense is one of these activities. The major part of continental defense is in the military budget, but, because of the community aspect of the civil defense program, funds for it are included as heretofore in the section on housing and community development. Department of Defense.-The total of the first six items listed in the preceding table indicates the portion of our national security expenditures 121

Page  122 Public Papers of the Presidents which is used for the direct support of our military forces. For these items the budget recommends 31.0 billion dollars of new obligational authority and estimates expenditures of 37.6 billion dollars in the fiscal year 1955. These expenditures are 4.0 billion dollars less than the amount now estimated for I954. The revised estimate for I954 is 2.1 billion dollars less than the actual spending in I953-in marked contrast with the expectation in the budget document of January 9, I953, that such expenditures in the fiscal year 1954 would exceed those in 1953. The changing military situation following the sudden attack on Korea brought unbalanced programs and uncoordinated financing during the fiscal years 1951 to 1953. Steps have been, and will continue to be, taken by this administration to bring these factors into balance. One result has been the elimination of the previously forecast increase in expenditures in 1954. Because of the long lead-time needed to procure military equipment, the expenditures have not come down to the level of the new obligational authority. In 1954, with new obligational authority of 34.5 billion dollars, the expenditures are estimated to be 41.6 billion dollars. Likewise, in I955, though I am recommending 31 billion dollars in new obligational authority, the expenditures are estimated at 37.6 billion dollars. At the outbreak of hostilities in Korea we had about I.5 million men under arms. The Korean fighting and general defense buildup brought this figure up to an average of 2.4 million in the fiscal year 195I; to an average of 3.5 million in fiscal year I952 and a peak strength of 3.7 million in the last quarter of that fiscal year; and to an average of 3.6 million in fiscal year I953. Recently, I announced our plan to withdraw two Army divisions from Korea and return them to the United States as an initial step in the progressive reduction of United States ground forces in Korea. This withdrawal is made possible by the cessation of hostilities, the increased mobility and striking power of our air and other combat forces, and by the increasing capabilities of the Republic of Korea forces. This action does not impair our readiness and capacity to oppose any possible renewal of Communist aggression with even greater effect than heretofore if this should be necessary. United States military forces in the Far East will be maintained at appropriate levels, with emphasis on highly mobile naval, air, and amphibious units. Funds are provided to the Depart 122

Page  123 Dwight D. Eisenhower, I954 ment of Defense in this budget for the continued support of Republic of Korea forces at a high level of effectiveness. As the striking power of our combat forces is progressively increased by the application of technological advances and the growth of airpower, the number of military personnel is being reduced. Total military personnel is scheduled to be reduced from the present level of more than 3.4 million to approximately 3.3 million by June 30, I954, and a little over 3 million by June 30, I955. On this basis, this budget provides for an average of 3.2 million military personnel during the fiscal year I955, compared with an average of 3.4 million during the fiscal year 1954. The efficiency of our combat forces is contingent upon having experienced, well-trained career personnel. In the State of the Union Message I indicated that pay alone will not retain in the Armed Forces, in competition with industry, the necessary proportion of long-term personnel. We must provide a more generous use of other benefits important to service morale. Under the long-range plan recommended by the Joint Chiefs of Staff, the number of Army divisions may be less than those currently organized, but increased mobility and the availability of modem weapons will provide each division with increasingly greater striking power. As part of the program to improve continental defense, the number of guidedmissile antiaircraft battalions will be increased substantially. At the present time, the Air Force, Navy, and Marine air forces have a total active inventory of approximately 33,ooo aircraft, of which approximately one-third are jet aircraft. The emphasis on airpower is reflected in the objective of increasing the active aircraft inventory to more than 40,00o during the next 3 years, with more than half of these aircraft to be jets. At that time the Air Force will have I37 wings-of which I26 will be combat wings-augmented by appropriate combat support units. Naval airpower will include I 6 carrier air groups and I5 antisubmarine warfare squadrons, while the Marines will maintain 3 Marine air wings. In each case, these units will be supplemented by appropriate combat support units. The Navy, in addition to increasing its effective air strength, will continue to modernize the fleet, with emphasis on the combatant elements. The Marine Corps will maintain three combat-ready divisions. 123

Page  124 Public Papers of the Presidents The military plan for forces to be maintained in the fiscal year 1955 permits a reduction of approximately 600 million dollars in the expenditures required for military pay, allowances, and other direct military personnel costs. Operation and maintenance-sometimes called housekeeping-is being held to a minimum, and expenditures in this area will be reduced. Major procurement expenditures as a whole will decline by about 15 percent from 1954 levels, but the I4.5 billion dollars expected to be spent for this purpose will still be almost four times as great as the amount spent during the fiscal year 195 I-the first year of buildup following the attack in Korea. Because the capital investment will already have been made for much new equipment and for a considerable portion of the desired mobilization reserve of materiel and supplies, expenditures for vehicles, ammunition, production equipment, and some other major equipment items will be lower in I955. The accumulation of mobilization reserves is being scheduled over an extended period of time, with a view toward keeping production facilities of key military items in continued production. Provision of capital equipment and modernization of aircraft will continue at a rapid pace in I955, and expenditures for aircraft procurement for the Air Force and naval aviation will be at the same general level as in I954. Aircraft procurement expenditures will account for 22 percent of total Department of Defense expenditures in 1955, compared with 20 percent in 1954, 17 percent in 1953, and I3 percent in 1952. Shipbuilding expenditures will continue at approximately the same level as in I954, but the new obligational authority I am recommending will provide for a slightly higher level of shipbuilding in the years immediately ahead in order to meet the problem of "block obsolescence" of the fleet, a major portion of which was built during World War II. Expenditures for military public works in the fiscal year 1955 will be maintained at the 1954 level, as work progresses on air bases, antiaircraft and radar sites, and other necessary installations. Expenditures for reserve components are expected to increase by about 20 percent as the buildup of a vigorous reserve program continues. Research and development will continue at a high level. The following table shows, by major cost category, the elements making up the Department of Defense budget. I24

Page  125 Dwight D. Eisenhower, I954 DEPARTMENT OF DEFENSE [Fiscal years. In millions] Budget expt I95I I952 actual actual New obligational enditures authority I953 I954 I955 I955 actual estimated estimated estimated I950 1 Cost category actual Military personnel................ Operation and maintenance......... Major procurement and production......... Aircraft............. Ships............... Other............... Military public works............... Reserve components............. Research and development......... Establishmentwide activities........ Working capital (revolving) funds................ Total....... $, 892 1 Detail not available. $7, I148 $11I, 152 $I 11, 556 $I0, 910 $10, 335 $10, 673 6,444 I I, 855 IO, 335 8,979 8,769 9,I07 (3, 976) 2, 412 38i I, i83 (I I, 478) 4, 888 624 5, 966 (I7, I23) 7,416 I, 191 8, 5i6 (I7, 273) 8, 425 I, 005 7,843 (I4, 546) 8,310 990 5, 246 (7, 303) 4, 399 I, 150 I, 754 439 I, 89, 913 1,687 I, 650 I,09 537 476 52I 56o 675 7Io 758 I,I63 I,412 1,425 1,350 I,352 621 656 666 735 74~ 739 -I58 I9, 765 299 38, 898 84 43, 6Io -19 -490....... 4I,550 37,575 30,993 Mutual military program.-Because our own national security is vitally dependent on the continued strength of our allies throughout the free world, we have undertaken over the past several years to assist them in building the military forces necessary to deter Communist aggression from without or subversion from within. Since the beginning of the mutual defense assistance program in fiscal year I950, when the armed strength of the free world was at low ebb, I 8 billion dollars have been made available to furnish military equipment and training to friendly nations. More than half of this amount will have been spent by the end of the fiscal year I954. This assistance, combined with their own resources, enables our allies and friends to equip and train an equivalent of 175 army divisions, about 220 air force squadrons, nearly 1,5oo00 naval aircraft, over 440 naval vessels, and related combat and logistic units to back up these forces. 51986-60 12 I 25

Page  126 Public Papers of the Presidents These friendly forces located in key strategic areas for the defense of the free world are largely supported by the countries themselves. In addition, substantial forces are exclusively supported by our allies. Without all of these forces the United States would be faced with a potential defense burden so costly that it could well sap the economic vitality of our Nation. These forces constitute an integral part of the military strength of the free world. Since the mutual military program is so closely integrated with our own military plans and program, it is shown this year in the defense chapter of part II of the budget, and is discussed here as part of our national security program. Because the mutual military program is also an integral part of our foreign policy, the Secretary of Defense will continue to carry out his responsibilities for the mutual military program under the foreign policy guidance of the Secretary of State and within the terms of the mutual security legislation passed by the Congress. In this budget, mutual military program funds are shown under the new obligational authority of the Department of Defense. However, this arrangement is being reviewed and my recommendations will be set forth in connection with the authorizing legislation I shall recommend to the Congress. This authorizing legislation should permit adjustments in the composition of our aid programs to meet changing needs due to new international developments. It is therefore essential that the Congress maintain the present Presidential powers of transferability of all foreign assistance funds, whether for military, technical, or economic assistance. The recent Paris meeting of the North Atlantic Treaty Organization set realistic force goals for the 14 member nations, which will provide for a substantial increase in the defensive strength of NATO. The mutual military program provides the bulk of the initial equipment and certain mobilization reserves needed to meet these new goals. Meanwhile, our allies are themselves carrying heavy burdens. Their military budgets during the period of this program exceed by many times the value of the equipment we have so far delivered. They have expressed their determination to continue their efforts at high levels. Despite the progress which NATO has made, we are nevertheless faced with a serious need to achieve the unity in Europe which is necessary for strength and security in the North Atlantic area. As is well known, 126

Page  127 Dwight D. Eisenhower, 1954 ( I4 the treaty constituting the European Defense Community is not as yet in effect. It is not necessary for me to dwell on the reasons why the EDC is urgently needed. However, I am convinced that the Europeans who must decide on this essential next step toward building a European community are fully aware of what is at stake and will in the near future reach their decisions. NATO is engaged in a reappraisal of strategy and tactics to reflect the prospective availability of atomic and other new weapons. These studies, to be meaningful, require the dissemination of certain information regarding atomic weapons to NATO commanders. This will have a significant impact on NATO planning and provide a greater measure of security for all. I shall recommend that the Congress amend the Atomic Energy Act to permit us to disseminate classified information to our allies with regard to the tactical use of atomic weapons. This, of course, would be accomplished under stringent security regulations. It is essential that action on this matter be taken by the Congress during the current session. In Indochina, where the French Union and Associated States forces are holding back Communist efforts to expand into the free areas of Asia, the United States is making a major contribution by providing military equipment and other military support. The amount as well as the timeliness of this military assistance will be an important factor in improving the situation. Additional native forces must be trained and equipped to preserve the defensive strength of Indochina. This assistance is required to enable these gallant forces to sustain an offensive that will provide the opportunity for victory. We have helped the Chinese Nationalist forces to strengthen the defense of the Island of Formosa. This assistance will be continued as will assistance to other countries of the free world such as the Philippines, Thailand, and some of the American Republics. The mutual military program, like our domestic military program, is now designed to build strength for the long pull rather than meet a given target date. Accordingly, we will concentrate on helping equip forces which our allies can themselves support over a long period of time. with minimum dependence upon aid from the United States. We have succeeded in substantially reducing the need for additional funds in fiscal year I955 compared to previous years. 127

Page  128 Public Papers of the Presidents Our mutual security program continues in two related parts-the economic and technical program is much smaller in amount than the mutual military program and is discussed in a later section under international affairs. In that section is a comparative summary of the combined program. Development and control of atomic energy.-In my speech before the United Nations on December 8, I953, I made proposals looking toward a resolution of the atomic danger which threatens the world. My budgetary recommendations for the program of the Atomic Energy Commission for the fiscal year I955 contemplate both new efforts to advance peacetime applications of atomic energy and also additional production of fissionable materials. All men of good will hope that these fissionable materials, which can be used both for peace and for military defense, will ultimately be used solely for peace and the benefit of all mankind. Under the recommendations in this budget, expenditures of the Atomic Energy Commission will rise in the fiscal year I955 to the highest point in our history. Operating costs will rise significantly as newly completed plants are brought into production. Capital expenditures will continue at a high level as construction goes forward on major new plants authorized in recent years. New obligational authority recommended in I955 is above that provided in I954, because of the expansion in operations. Initiation of new construction projects will be at a lower level than in recent years, and they will be limited essentially to facilities directly related to the production program and to several urgently needed research and development facilities. In all areas of activity the Commission is making strenuous efforts to effect economies; results are being accomplished in the reduction of unit costs. The increase in expenditures for operations from 912 million dollars in the fiscal year I954 to I,I82 million dollars in I955 is due primarily to expanded operations at the Commission's facilities at Oak Ridge, Paducah, Portsmouth, Hanford, and Savannah River, as plants are completed and placed in operation. To meet the greater requirements for raw materials for this enlarged productive capacity, increased amounts of uranium ores and concentrates will be purchased. Due to vigorous efforts in recent years to expand our sources of supply in this country and abroad, increased amounts are now being made available to match the increase in requirements. 128

Page  129 Dwight D. Eisenhower, 1954 e I4 Atomic reactor development will be focused particularly upon the development of industrial atomic power for peacetime uses. The Commission will move forward on the construction of a large atomic power reactor to be initiated in the fiscal year I954, marking a significant advance in the technology of peacetime atomic power. Research and development, including construction of experimental facilities, will continue also on several other types of reactors which show promise of ultimately producing power at economic rates. The launching-this month-of the first atomic submarine, the U. S. S. Nautilus, will be followed in the fiscal year I955 by the launching of the U. S. S. Seawolf, a second atomic submarine of different design. Research on the more difficult problems of aircraft propulsion by atomic energy will continue. With the advent of various technical developments relating to atomic power and with the greater availability of raw materials and fissionable materials, the time has arrived for modification of the existing atomic energy legislation to encourage wider participation by private industry and by other public and private groups in this country in the development of this new and uniquely attractive energy source for peaceful purposes. Such widespread participation will be a stimulating and leavening force in this important field and will be consistent with the best traditions of American industrial development. The congressional Joint Committee on Atomic Energy last summer held public hearings which have served a most useful purpose of identifying and developing both the problems and the opportunities which emerge as preparations are made to depart from the Federal Government's existing monopoly in this field. Legislation is being recommended to the Congress which would encourage such participation and yet retain in the Federal Government the necessary controls over this awesome force. Further amendment of the Atomic Energy Act is needed also to enable us to realize the full value of our atomic energy development for the defense of the free world. I shall recommend amendments which would permit, with adequate safeguards, a greater degree of exchange of classified information with our allies, in order to strengthen their military defenses-as already mentioned-and to enable them to participate more fully in the development of atomic power for peacetime purposes. I shall recommend also an amendment which would permit the transfer 129

Page  130 Public Papers of the Presidents of fissionable material to friendly nations to assist them in peacetime atomic power development, particularly those nations which are supplying us with uranium raw materials. This proposed amendment, as well as the previously mentioned amendment, will provide adequate safeguards for the security of the United States. These legislative recommendations are independent of my recent proposal for the establishment of an international agency to advance the peacetime benefits of atomic,energy, for which additional legislation would be needed. It is now feasible to plan to terminate Federal ownership and operation of the towns of Oak Ridge, Tennessee, and Richland, Washington. To enable the citizens of these communities to manage their own affairs in a more normal fashion, legislation will be recommended which would permit them to purchase their own homes and to establish self-government in these communities. Stockpiling of strategic and critical materials.-Considerable progress has been made in the fulfillment of the national stockpile goals, and further substantial progress is expected during the fiscal year I955. By the end of I955 about 50 of the 73 materials objectives will be virtually completed. Consequently, expenditures will decline sharply from 919 million dollars in 1953 to 770 million dollars in I954 and 585 million dollars in 1955. The total value of all stockpile objectives is estimated at 7.2 billion dollars, of which about 5.5 billion will be on hand by June 30, I955, to meet industrial and mobilization requirements in times of emergency. In addition to these direct expenditures from stockpile appropriations, the borrowing authority provided under the Defense Production Act, discussed in the finance, commerce, and industry section of this message, is used primarily for expanding the supply of critical materials. Net expenditures under this authority are estimated at 381 million dollars in the fiscal year I954 and 308 million dollars in I955. Therefore, a total of nearly 900 million dollars will be spent in the fiscal year 1955 to assure an adequate supply of critical materials in the event of an emergency. VETERANS' SERVICES AND BENEFITS Since 1940 the number of veterans has risen nearly fivefold and it is still increasing rapidly as men are discharged from the Armed Forces. There are now more than 20 million veterans, who, with their families, constitute 40 percent of our people. Over 300 laws provide a variety of special benefits and services to this large segment of our population. 130

Page  131 Dwight D. Eisenhower, 1954 It is our firm obligation to help our veterans overcome the handicaps which they incurred in the service of the Nation so they can return to their normal civilian pursuits. We must first of all do what we can to ease the burdens of veterans disabled in service and the families of those who have died from service causes. This is our primary responsibility, and generous benefits to them are the core of our veterans' programs. Secondly, we must make available readjustment aids through wellconceived and properly administered programs for those veterans discharged after service during national emergencies. Finally, we must remember that the best way to help our millions of veterans is by making it possible for them to share fully in the economic VETERANS' SERVICES AND BENEFITS [Fiscal years. In millions] Expenditures I953 1954 1955 actual estimated estimated Program or agency Gross expenditures: Readjustment benefits: Education and training................. Loan guaranty and other benefits (Veterans Administration)................... Unemployment compensation (Labor Department).......................... Compensation and pensions............... Insurance and servicemen's indemnities...... Hospitals and medical care: Current expenses...................... Hospital construction................... Other services and administration (Veterans Administration and other)............. Total.................................. Deduct applicable receipts: Insurance programs (Veterans Administration)................................. Other services and administration (Veterans Administration, primarily canteen services)................................. Net budget expenditures................... Recommended new obligational authority for 1955 $350 $659 $473 I 1 2 89 $554 37 37 26 2, 420 102 657 100 25I 4, 327 28 4, 298 40 2, 485 I 05 693 84 22 1 4, I90 2 28 4, i6o 2, 5 6! 2( 4, 2 6i 35 75 56 2, 535 72 94 689 6o 44 07 I76 23 3, 959 3......... 28......... 4,I92......... 1 Compares with new obligational authority of 4,132 million dollars in 1953 and 4,229 million dollars in 1954. 131

Page  132 4r I4 Public Papers of the Presidents and social gains of our country. This means assuring them adequate job opportunities. It also means assuring them, both during and after military service, of the same protection under the broad social-security programs that is provided for nonveterans. Progress in achieving these objectives will lessen the need for pensions and other special benefits for the vast majority of veterans who, fortunately, did not incur disabilities during their service. The appropriations recommended in this budget will enable the Government to discharge fully our obligations to veterans in the coming fiscal year. Funds are included to provide for all essential benefits and services, in some cases exceeding the amounts spent in any previous year. At the same time allowance has been made for anticipated savings from improvements in efficiency, resulting in part from a general reorganization of the Veterans Administration. Readjustment benefits.-Education and training and loan guaranty benefits are provided for veterans of World War II and the current emergency. In addition, special vocational rehabilitation assistance is provided for service-disabled veterans of both periods, and unemployment compensation is available to veterans of the Korean conflict. Expenditures of 652 million dollars for all readjustment benefits in the fiscal year 1955 are estimated to be about 8 percent higher than in the current year. While expenditures for benefits to veterans of the Korean conflict are increasing, outlays for education and training, rehabilitation, and loan guaranty benefits to World War II veterans are declining. Thus, the proportion of total outlays for all readjustment benefits going to veterans of the Korean conflict is expected to rise from about one-half to about four-fifths in the one year. During the fiscal year I955 an average enrollment of 537,000 veterans-more than 3o,ooo above the previous year-is expected in school, job, and farm training courses. Of this number, an estimated 4I2,000 are veterans of the Korean conflict. A decline in expenditures for loan guaranty and other benefits from I953 to I955 reflects the discontinuance of payment by the Government of a gratuity up to 60o dollars on each guaranteed loan issued after September I, 1953. Unemployment compensation payments to veterans will increase. This is the result of the growth in the number of eligible veterans. 132

Page  133 Dwight D. Eisenhower, 1954 q I4 While existing legislation was intended to provide benefits during the transition period after discharge, it does not include a limit on the time during which veterans may apply for unemployment compensation. I recommend that the law be changed to provide for a time limit for filing claims after discharge. This should provide reasonable time for veterans to make their readjustment to civilian life and to establish benefit rights under the general unemployment compensation program. Limits are now provided in the Servicemen's Readjustment Assistance Act for other benefits. Compensation and pensions.-The estimated expenditures of 2.5 billion dollars will provide for compensation and pension benefits to an average of 3.3 million individuals and families. This total includes nearly i.8 billion dollars in compensation payments to service-disabled veterans and families of those veterans who have died from service-connected causes, and 700 million dollars for non-service-connected pensions. It also includes 45 million dollars for subsistence payments to an average of 20,000 disabled veterans in the vocational rehabilitation program and for I I5,000 burial awards. Expenditures for compensation and pensions have increased sharply in the last decade, and the long-run outlook on the basis of present laws and veteran population is that these expenditures will rise to double their present annual amount within several decades. At the same time, a large proportion of the present or potential recipients of these benefits will also qualify for payments under the Government's old-age and survivors insurance program. While the conditions under which veterans are entitled to compensation and pension benefits are largely specified by law, the Administrator of Veterans' Affairs necessarily has important responsibilities for their administration, and the budget estimates for the fiscal year I 955 assume additional efforts to prevent unsound practices and abuses. Insurance and servicemen's indemnities.-The Government reimburses the veterans' insurance trust funds for payments made for deaths traceable to war hazards in the case of policyholders under the national service life insurance contracts issued mostly to World War II veterans and under the United States Government life insurance policies issued to veterans of earlier periods. The Government also pays certain other insurance benefits directly to policyholders. Insurance payments are expected to '33

Page  134 q I4 Public Papers of the Presidents decline from 84 million dollars in the fiscal year 1954 to 45 million dollars in I955. Since the enactment of the Servicemen's Indemnity Act of 1951 as a substitute for a Government life insurance program, the families of servicemen who die on duty or within I20 days after separation are paid benefits at the rate of $92.90 a month for o years. These payments are expected to increase 41 percent from the I954 level to 30 million dollars in 1955 -Hospital and medical care.-The estimates for current expenses of the veterans' hospital and medical programs will provide for an average of I 10,200 patients in Veterans Administration and contract hospitals and 25,700 members in Veterans Administration and State domiciliary facilities during the fiscal year 1955. The cost of caring for the increase of about 2 percent in the hospital load compared to the level now estimated for 1954 is offset, however, by lower amounts for the medical and dental outpatient care programs. The lower estimates for the dental outpatient care program are based primarily upon the recommendation that the Congress extend for I955 the language enacted for the fiscal year I954 in Public Law I49, 83d Congress, limiting dental treatment for noncompensable disabilities to those cases for which application for treatment is made within one year of discharge. The budget includes recommended new obligational authority of 44 million dollars for new construction and improvements, including 30 million dollars to complete new hospitals at San Francisco and Topeka, toward which the Congress made an initial appropriation for the fiscal year I954. I am recommending increased appropriations to provide for an average employment in the Veterans Administration medical and hospital programs of 136,000 during the fiscal year 1955, an increase of Io,5oo from average employment in I953 and 3,000 more than in the current year. This increase provides for operation of the new hospital facilities which have been constructed. Other services and administration.-General administrative expenses of the Veterans Administration are estimated to decline further in the coming year as the result of declining workloads for readjustment of World War II veterans as well as improved performance resulting from better organization and greater efficiency. Average employment of 35,600 I34

Page  135 Dwight D. Eisenhower, I954 q I4 in Veterans Administration nonmedical programs is estimated for I955, I I percent below employment in the current year and I 7 percent less than in I953. Trust funds.-Under the United States Government life insurance and national service life insurance trust funds, nearly 7 million policies continue in force, carrying 44 billion dollars of life insurance issued before enactment of the Servicemen's Indemnity Act of 195I. The receipts of these funds now roughly balance their disbursements. The transactions of these, as of other, trust funds are not included in the budget totals. VETERANS' LIFE INSURANCE FUNDS (Trust funds) [Fiscal years. In millions] 'I954 I955 Item I953 actual estimated estimated Receipts: Transfers from general and special accounts..... $84 $75 $36 Interest on investments........................ 200 208 208 Premiums and other............................... 427 522 485 Total...................................... 7II 805 729 Expenditures: Dividends to policyholders.......................... I90 297 217 Benefits and other............................ 470 533 524 Total...................................... 66o 830 741 Net accumulation (+) or withdrawal (-)...... +5I -25 -I2 Balance in funds at close of year..................... 6, 6i3 6, 588 6, 576 INTERNATIONAL AFFAIRS AND FINANCE My budget recommendations for the international programs of the Government will enable us to hold our newly won initiative in world affairs and move toward a lasting peace. The budget for international affairs and finance includes funds required for the conduct of our foreign affairs, for the programs for economic and technical development abroad, and for our foreign information and exchange program. The mutual military program, which was formerly included in the budget along with these programs under the heading "International security and foreign relations" has been discussed in this budget message I35

Page  136 q( I4 Public Papers of the Presidents as part of the national security program. At the same time, military assistance is intimately related to and must be administered in the furtherance of our foreign policy. The extent of our assistance under both the mutual military program and mutual economic and technical program is shown in a summary table below. This table covers all components of the present mutual security program. This entire program is directed toward the establishment of conditions overseas which, in one way or another, contribute to our own security and well-being. MUTUAL SECURITY PROGRAMS, MILITARY AND ECONOMIC [Fiscal years. In millions] Expenditures: Mutual military program...................... Mutual economic and technical program......... Total...................................... New obligational authority: 1954 1953 actual estimated $3, 954 $4, 200, 702 I, 300 5, 656 5, 500 1 955 recommended or estimated $4, 275 I, I25 5, 400 Mutual military program 1.................... 4, 236 3, 800 2, 500 Mutual economic and technical program 2......... I, 907 926 I, OIo Total...................................... 6, I43 4, 726 3, 510 1 Does not include reappropriations of $321 million for 1953 and $1,763 million for 1954. 2 Does not include reappropriations of $128 million for I953 and $179 million forI954. Our national security and international programs are designed to deter would-be aggressors against the United States and other nations of the free world, and to strengthen our efforts for peace by all appropriate means including diplomatic negotiations with the Soviets. With a position of strength, an effective conduct of our foreign relations by the Department of State is the keystone of our efforts to win our way to peace. There has never been a time when the future security and welfare of our country were more dependent upon the exercise of wise leadership in the realm of world affairs. My recommendation for funds for the Department of State will enable it to meet this challenge. Some countries are still facing such economic conditions that they are not able solely by their own efforts to support the desired military effort or to provide for the economic growth and progress essential to 136

Page  137 Dwight D. Eisenhower, I954 I I4 our mutual objectives. It is thus still necessary that supplementary goods, services, and technical skills be provided by the United States. It is for these purposes that funds for economic and technical development are requested for fiscal year 1955. Through our information and exchange program we are attempting to achieve a clear understanding by others of our aims, objectives, and way of life and a better understanding by us of the aspirations and cultures of other countries. Such mutual understanding increases our ability to exercise strong, sympathetic, and cooperative leadership in the mutual efforts of free peoples to achieve their common goals. INTERNATIONAL AFFAIRS AND FINANCE [Fiscal years. In millions] Gross expenditures Net expenditures Recommended new 1 954 1955 1 954 I 955 obligational 1 953 esti- esti- 1 953 esti- esti- authority Program actual mated mated actual mated mated for 1955 Conduct of foreign affairs... $50o $129 $125 $I50 $129 $1 I25 $ii6 Economic and technical development: Present program1........ 2,396 1,943 1, 105 1,960 1,555 658 15 Proposed legislation................... 370............ 370 I, 0oIO Surplus agricultural commodities disposal (proposed legislation)...................................... 300 Foreign information and exchange activities............ Io6 95 97 io6 95 97 105 Total................. 2,652 2, I167 1,697 2,216 1,779 1,250 1, 546 1 Gross expenditures exclude private bank loans guaranteed by the Export-Import Bank and net repayments thereof in the amounts of 4 million dollars in 1953, 82 million dollars in 1954, and i88 million dollars in 1955. During the past year progress has been made toward the accomplishment of the objectives of our international programs. Not only have our allies and friends grown in military strength, but also a continued high level of production and increased gold and dollar reserves have permitted European countries to become more nearly self-supporting. This improvement makes it possible for estimates of expenditures for economic and technical programs included in this budget to be significantly lower than the already reduced level of the fiscal year 1954. Significant con I37

Page  138 q I4 Public Papers of the Presidents tributory factors in this progress have been our assistance in past years and the positive and constructive fiscal and other economic measures which have been taken by the other countries themselves. As a result the fiscal year 1955 represents, in a sense, a period of transition from heavy dependence by a large number of countries upon massive bilateral economic assistance from the United States to the use of such assistance in more limited circumstances. Progress in such a transition will generally depend upon the extent to which our own policies, and those of our friends, contribute to increased private investment, increased exports to the United States, internal financial and economic reforms in some countries, and multilateral cooperation for the achievement of strong and self-supporting economies. Conduct of foreign affairs.-The burden of the vastly enlarged responsibility involved in our international affairs falls heavily upon the Department of State since the Secretary of State is the officer responsible, under the President, for the development and control of all foreign policy and for the conduct of our relations with foreign governments and international agencies. Successful discharge of this broad responsibility calls for wise and informed diplomatic support to our national leaders in negotiations carried on at the highest levels as at Bermuda and Berlin. It requires the day-to-day representation of our national interest through some 273 diplomatic missions and consular offices abroad. We also must continue to give our firm support to the United Nations and other international organizations, and bear a part of the costs of these organizations and their programs. A successful administration of our foreign policy requires the State Department to report and appraise political, economic, and social conditions and trends abroad; to provide foreign policy guidance to all agencies carrying on programs overseas; and to coordinate in the field all foreign policy aspects of overseas programs. Finally, advice must 'be furnished as to the foreign policy implications of domestic programs. Net budget expenditures for the conduct of foreign affairs in the fiscal year 1955 are estimated at 125 million dollars. This expenditure represents a decrease of 4 million dollars from 1954, resulting from reduction of personnel and other costs of the Department of State including the curtailment of civilian occupation activities in Germany. Economic and technical development.-Net budget expenditures for economic and technical development in the fiscal year 1955 are estimated 138

Page  139 Dwight D. Eisenhower, 1954 at I,028 million dollars, compared with 1,555 million dollars in the fiscal year I954 and 1,96o million dollars in I953. This budget, as did the fiscal year 1954 budget, reflects proportionately greater emphasis on programs in Asia, Africa, and Latin America. It contemplates new appropriations for aid to very few European countries. In the Far East there is a need for contributions to provide for relief in Korea and, now that hostilities have been terminated, for an expanded reconstruction program for that war-devastated country. Funds are also recommended to maintain the strength and security of Formosa and to support further the effort of our friends combating Communist aggression in Indochina. This budget also provides for technical assistance and economic development in India, Pakistan, the Philippines, and other nations of Asia to encourage continued progress in their efforts to improve the living conditions of their people. With respect to the Near East the budget provides for helping relieve the plight of Arab refugees through contributions to the United Nations refugee agency, and for technical assistance and supplementary economic development in the Arab States, Israel, and Iran. Provision is also made in the budget for continuing the technical assistance program for Latin America. This program, which has existed for a number of years, contributes to a reduction of social and economic problems upon which communism feeds and which hampers the development of stable and growing economies. Surplus agricultural commodities.-I plan to request authority soon to use a part of our accumulated surpluses of agricultural products to assist in strengthening the economies of friendly countries, and otherwise to contribute to the accomplishment of our foreign policy objectives. Authority will be requested to use for this purpose over a 3-year period up to I billion dollars worth of commodities held by the Commodity Credit Corporation. This budget anticipates a request for a supplemental appropriation of 300 million dollars for the fiscal year I955 to reimburse that Corporation for commodities used. This program for use of agricultural surpluses is designed to complement our general program of economic and technical development and must be closely coordinated with it. The program for use of surplus agricultural commodities involves the use of stocks held by the Commodity Credit Corporation. No additional budget expenditures will be required for these commodities. I39

Page  140 Public Papers of the Presidents It should be emphasized in connection with this program that it is purely temporary, predicated upon adoption of our domestic agricultural program which should not involve the continued accumulation of large surpluses. Special safeguards will be provided which will require that commodities furnished must be in addition to amounts which otherwise would have been imported and must not displace the usual marketings of the United States and friendly countries. Foreign information and exchange activities.-This budget includes expenditures of 97 million dollars for foreign information and exchange activities, including those functions conducted by the new United States Information Agency. This is an increase of 2 million dollars over the expenditures for foreign information and exchange programs in the fiscal year 1954. In October, on the advice of the National Security Council, I directed the United States Information Agency to develop programs which would show the peoples of other nations that the objectives and policies of the United States will advance their legitimate aspirations for freedom, progress, and peace. I believe that if the peoples of the world know our objectives and policies, they will join with us in the common effort to resist the threat of Communist imperialism and to achieve our mutual goals. It is essential that the United States Information Agency have the tools to carry out this mission. The United States Information Agency will reach 77 free countries through radio, press, motion pictures, or information centers and will reach I Iron Curtain countries through radio broadcasts. My budget recommendations for information and exchange activities include 15 million dollars of new obligational authority for educational exchange programs. These programs are designed to promote a receptive climate of public opinion overseas through the exchange between the United States and over 70 foreign countries of students and persons who are leaders important to the present or future of their nations. SOCIAL SECURITY, WELFARE, AND HEALTH I believe that, along with the essentials of protecting the freedom of our people and maintaining a strong and growing economy, we must make greater and more successful efforts than we have made in the past to strengthen social security and improve the health of our citizens. In so doing, we build for the future, and we prove to the watching world that 140

Page  141 Dwight D. Eisenhower, 1954 q 14 a free Nation can and will find the means, despite the tensions of these times, to progress toward a better society. The keystone of our social security program today is the system of oldage and survivors insurance, under which nearly 70 million people are insured and 6 million people are presently receiving benefits. The economic protection afforded by this social insurance is now accepted as basic in our society. Yet there are serious defects in the system. In my recent social security message, I submitted specific recommendations to remedy these defects. The legislation to improve old-age and survivors insurance will not directly affect the budget totals, since this program is financed through SOCIAL SECURITY, WELFARE, AND HEALTH [Fiscal years. In millions] Program or agency Gross expenditures: Public assistance: Present program....................... Proposed legislation...................... Promotion of public health: Present program....................... Proposed legislation...................... Aid to special groups: Vocational rehabilitation: Present program..................... Proposed legislation.................... School lunch........................... Indian welfare and other................ Accident compensation.................... Prisons and probation.................... Retirement and dependents insurance (Railroad Retirement Board).................. Defense community facilities and services..... Total.................................. Deduct applicable receipts.................. Net budget expenditures.................... 1 Less than 500,000 dollars. Expenditures I953 1954 I1955 actual estimated estimated $1,332 $1,391 $1, 187.............. 108 Recommended new obligational authority for I955 $1, 202 108 316 289............ 25...... 83 48 43 29 33 I I, 910 (1) I, 910 25...... 83 51 42 27 35 4 I, 947 (1) I, 947 281 7 21 I 8 68 54 43 28 234 89 21 9 68 54 43 29...... 2 i, 807 (1) I, 807................ 2 I, 857 *................. 2 Compares with new obligational authority of 1,886 million dollars in 1953 and 1,919 million dollars in 1 954. I4I

Page  142 Public Papers of the Presidents payroll taxes which go into a trust fund, and the expenditures are made from the fund rather than from the general budget accounts. However, the legislation should lessen the need for expenditures from the general budget accounts to help the States pay public assistance to the needy aged and to dependent children, as old-age and survivors insurance takes over a larger and larger role in providing them with basic protection. To reflect this development, legislation is being prepared to reduce Federal grants to States for old-age assistance as old-age and survivors insurance continues to take over an increasing share of the load. My social security message has set forth these recommendations in more detail. This administration flatly opposes the socialization of medicine. Under the traditional American approach, private and nonprofit medical and hospital insurance programs have grown steadily and now cover a large segment of the population. Yet there is still a long way to go. Many families are not protected; many health costs are not insured. Positive action to promote the health of all our people has been recommended in my recent message. The budget estimates for the fiscal year 1955 provide for the costs of the proposed legislation to improve the health of the people and also for the improvements and expansion of vocational rehabilitation services for the disabled. Experience has proved that these efforts pay for themselves many times over. Including the proposed legislation, net budget expenditures for social security, welfare, and health in the fiscal year 1955 are estimated at I,8o7 million dollars. This is I40 million dollars less than estimated expenditures in I954. The decline results mainly from an expected reduction in public assistance grants to the States. Public assistance.-Under present law the Federal Government contributes, according to a statutory formula, to State expenditures for assistance payments to four groups of people in need-dependent children, the aged, the blind, and the totally disabled. With the expansion of the social security program, it is now feasible to recommend a new formula for public assistance grants which will more adequately recognize the varying financial needs of the several States and the appropriate role of the Federal Government in meeting these needs. The legislation which I am recommending would provide for a permanent formula to replace the present temporary increase in the Federal share which expires next 142

Page  143 Dwight D. Eisenhower, 1954 September 30. This new formula includes specific provision for a related reduction in Federal grants to States for old-age assistance as the improved old-age and survivors insurance program takes over an increasing share of the load. A transition period for adjusting both Federal and State procedures will be necessary. The decrease of nearly I 00 million dollars in estimated expenditures for public assistance is made possible primarily by the proposed improvement in old-age and survivors insurance, which will reduce the need for supplementation by public assistance. Promotion of public health.-The budget provides for initiating our new program to help assure adequate medical and hospital services. The main elements of this program are: i. Establishment of a limited reinsurance service to encourage private and nonprofit health insurance organizations to offer broader health protection to more families on a basis which would reinsure the special additional risks through premiums modeled on sound insurance principles. The capital for this program will be provided initially by the Federal Government and repaid from fees. 2. A broadening of the present Federal grant-in-aid program for hospital construction to stimulate provision of diagnostic and treatment centers, rehabilitation facilities, nursing homes, and additional chronic disease hospitals, and to help finance State surveys of their needs for such facilities. The new program is estimated to require new obligational authority of 89 million dollars for the fiscal year I955, of which 7 million dollars would be spent in that year. Budget expenditures for all public health programs under existing legislation, excluding medical care for military personnel and veterans, are estimated at 28i million dollars in the fiscal year I955. About onehalf of this amount will be for grants to universities and medical schools for medical research and training, for clinical and laboratory research conducted by the Federal Government, and for operation of the Public Health Service hospitals. The Public Health Service hospitals primarily furnish hospital and medical care to American merchant seamen. The budget provides funds to continue these special services while the Department of Health, Education, and Welfare has this program under review. Other expenditures will be for grants-in-aid to State governments and '43

Page  144 a I4 Public Papers of the Presidents local communities for hospital construction, general health services, maternal and child health, and the control of specific diseases, such as tuberculosis, cancer, mental illness, and heart ailments. With the major communicable diseases, including tuberculosis and venereal diseases, diminishing in importance as public health problems, greater emphasis is being given to the chronic diseases which are becoming more prevalent. Vocational rehabilitation program.-The estimate for the present program of vocational rehabilitation reflects congressional action, taken in the 1954 appropriation act, to require that a larger portion of the program be financed by the States. To revitalize the vocational rehabilitation program, I have recommended that we redefine our objectives so as to make possible a substantial increase in the number of persons rehabilitated. School lunch program.-Budget expenditures shown for the school lunch program for fiscal years prior to I955 include funds for the purchase of commodities for distribution to the States, as well as for cash payments to the States. The amount recommended for 1955 will maintain cash payments to the States at the same level as in 1954. In addition, it is expected that larger Federal contributions of surplus agricultural commodities will be made to the program. These contributions are financed from a permanent appropriation to the Department of Agriculture. As a result, total Federal aid for the school lunch program, including cash payments and surplus foods distributed under the program for the children are estimated at 2i8 million dollars in the fiscal year 1955 compared with 206 million dollars in 1954. Railroad retirement.-As described earlier, the railroad retirement program is reported in this Budget in the same manner as the old-age and survivors insurance program and appears in the tables on that basis. The change does not affect the budget deficit. Trust funds.-The old-age and survivors insurance system is operated through a trust fund, which receives the payroll contributions and pays the benefits and administrative expenses. The tax rate rose to 2 percent each on employers and employees, effective January i, I954. My proposals for expanding and improving the program will raise receipts by an estimated I00 million dollars, benefit disbursements by 400 million dollars, and administrative expense by 8 million dollars in the fiscal year I955. I44

Page  145 Dwight D. Eisenhower, 1954 SOCIAL SECURITY, WELFARE, AND HEALTH (Trust funds) [Fiscal years. In millions] Fund and item Federal old-age and survivors insurance trust fund: Receipts: Present program: Appropriation from general receipts.......... Deposits by States........................ Interest and other......................... Proposed legislation.......................... Payments of benefits, construction, and administrative expenses, and tax refunds: Present program........................... Proposed legislation.......................... Net accumulation........................... Balance in fund at close of year................. 1953 actual $4, o86 44 387........ -2, 748........ I, 769 i8, 364 1I954 1955 estimated estimated $4, 6oo00 100 442 -3,368........ I, 774 20, 138 $5, 369 135 477 100 -3,809 -408 I, 864 22, 002 Railroad retirement fund: Receipts: Appropriation from general receipts................. 658 675 640 Interest on investments............................ 89 98 105 Payments of benefits, salaries, and expenses....... -465 -49~ -5I3 Net accumulation.............................. 282 283 232 Balance in fund at close of year.................... 3, i83 3, 466 3, 698 Federal employees' retirement funds: Receipts: Employee contributions........................... 425 427 427 Transfer from budget accounts and other....... 321 31 30 Interest....................................... 215 227 236 Payments of annuities and refunds, and expenses.. -363 -421 -448 Net accumulation................................ 598 264 245 Balance in funds at close of year.................. 5, 652 5, 916 6, i6i The Government also operates separate retirement programs for railroad workers, mentioned above, and for Federal civilian employees. I45

Page  146 (I I 4 Public Papers of the Presidents HOUSING AND COMMUNITY DEVELOPMENT Good housing and the development of adequate community facilities are essential to the welfare of our people and to the stability and growth of our economy. Over the years the Federal Government has undertaken a wide variety of programs to assist our citizens in obtaining better housing. These programs, however, have been designed in the main to meet shortrun emergencies or they have been developed piecemeal without a clear underlying policy. As a result, housing laws have become a patchwork which only experts can understand. Excessive reliance has been placed on direct participation by the Federal Government in areas where, properly encouraged, local governments or private enterprise could have carried a larger share of the total responsibility. Different Federal programs have too often worked at cross-purposes, resulting in heavy expense without commensurate gains. In some instances, they have aggravated inflationary price increases instead of working toward lower housing cost for the ultimate consumer. Finally, the weaknesses in the organization of Federal housing activities have prevented us from realizing the full potentialities of present programs. At my request, the Advisory Committee on Housing Policies and Programs, under the chairmanship of the Housing Administrator, has intensively examined all Federal housing activities. After consideration of its report and the Administrator's recommendations, I am proposing a series of changes which have three important objectives: First, they would reorient existing programs to emphasize the initiative of private enterprise and the role of local governments. Second, they would fill importantgaps in the present housing program and at the same time eliminate numerous unnecessary and obsolete activities. Third, they would strengthen the administration of these programs to assure the most economical and effective use of Federal funds in improving the housing conditions of the Nation. To carry out these proposals I shall recommend major changes in legislative authority. I shall also submit a reorganization plan which will permit a more logical grouping of operating programs and give the Hous — ing Administrator appropriate authority to supervise these programs and to determine major policies. Pending final decision on important details, estimates for these proposals are not specifically set forth in this budget. However, they will not have a significant effect on the Federal budget in the fiscal year I955. 146

Page  147 Dwight D. Eisenhower, I954 4 I 4 Most housing and community development programs involve both expenditures and receipts. In the fiscal year I955 gross expenditures will total an estimated 1,903 million dollars, but receipts will exceed these expenditures by 277 million dollars. These net receipts compare with HOUSING AND COMMUNITY DEVELOPMENT [Fiscal years. In millions] Gross expenditures I954 I955 1953 estz- estiactual mated mated Net expenditures Recommended new I954 I955 obligational I953 esti- esti- authority actual mated mated for 1955 Program or agency Urban development and redevelopment............ Aids to private housing: Housing and Home Finance Agency: Federal Housing Administration............. Federal National Mortgage Association...... Other................ Veterans' housing loans (Veterans Administration)................. Treasury (Reconstruction Finance Corporation)... Farm housing (Department of Agriculture)......... Public Housing programs... General housing aids: Housing and Home Finance Agency: College housing loans... Other................ Provision of community facilities: Present programs........ Proposed advances for public works planning.. Defense housing........... Civil defense.............. Disaster loans and relief.... Total................. $25 $68 $97 $21 $38 $48 124 118 94 -43 -30 -69 645 590 488 15 i6 4 379 62 -i66....... -25 -38 -28 $4 92 109 84 70 78 44 -6 -50 - I I.... 19 I7..... I9 I7 I, 027 1,222 956 14 37 62 5 3 3 I -220 -234 77 I4 36 5 3 58 3 3 31 53 34 23 43 3 6 28 78 I5 2, 118 3I 76 I7 2, 357 3 I 7 903 I, 903 28 5I 12 549.. 3I 74 I3 57 3 I 68 3 -277 86 1 176 1 Compares with new obligational authority of 1,526 million dollars in 1953 and 628 million dollars in 1954. 147

Page  148 Public Papers of the Presidents net expenditures of 549 million dollars in 1953 and the revised estimate of net expenditures of 57 million dollars in I954. The great improvement in the fiscal outlook over the 2 years reflects mainly the fact that purchases of mortgages by the Federal National Mortgage Association are declining and sales are rising. Increased private financing for the public housing program is also reducing the need for Federal outlays. Urban development and redevelopment.-Too many families in our cities today are living in substandard housing in deteriorating and slum neighborhoods. Since I949 the Federal Government has been providing loans and grants to local governments for clearance and redevelopment of slum areas. Most local projects approved for Federal assistance are still in the planning stage, but by the end of the fiscal year 1955, clearance and redevelopment operations will be completed or underway for I80 projects, compared to 43 projects begun by June 30, 1953. Net expenditures in I955 are estimated to rise to 48 million dollars, of which 39 million dollars represents grants to local communities to cover two-thirds of the net cost of projects which they have completed, or on which they have made substantial progress. This acceleration is encouraging, but clearing slums provides only a partial answer. Effective progress in redeveloping our cities will require (i) enlistment of greater local and private participation, (2) slum prevention as well as elimination, and (3) rehabilitation of rundown houses and neighborhoods. To help attain these objectives, I shall recommend legislation broadening the present program to authorize loans and grants for the conservation, rehabilitation, and renewal of neighborhood areas. Important changes should also be made in mortgage insurance authority of the Federal Housing Administration and in the low-rent public housing program, so that these programs can contribute more effectively to sound redevelopment. All of these aids should be fully coordinated and should be provided only in areas where the local community has adopted and is carrying out its part of an effective program to arrest urban decay. Federal Housing Administration.-As one of the major Federal aids to private housing, the Government insures mortgage loans made to finance housing construction or purchase. In the fiscal year 1955 under existing programs the construction of an estimated 190,000 new homes and the purchase of I26,000 existing homes will be financed with the aid of mortgages insured by the Federal Housing Administration. Receipts from I48

Page  149 Dwight D. Eisenhower, I954 q I4 premium income and other sources will exceed expenditures by an estimated 69 million dollars. To encourage the substitution of private financing for Federal outlays in the areas of greatest housing need, I shall urge the Congress to authorize two new mortgage insurance programs, as well as to liberalize certain existing programs. Specifically, the Federal Housing Administration should now be authorized to insure private credit used for the rehabilitation of obsolete neighborhoods. It should also be given authority, on an experimental basis, to insure mortgages with small down payments and with the balance payable over a long period, to finance inexpensive homes for lower income families, particularly families displaced by rehabilitation and slum-clearance programs. Additional authority should be provided to adjust down payments and maturities for insured mortgages to the extent consistent with overall economic policy. I shall also recommend simplification of the basic housing laws by the elimination of numerous inactive or unnecessary programs and by simplification of the structure and operations of the existing mortgage insurance funds. At the same time, measures will be recommended to strengthen the insurance funds. Federal National Mortgage Association.-The Federal National Mortgage Association buys and sells mortgages insured by the Federal Housing Administration or guaranteed by the Veterans Administration. Gross expenditures are estimated at 488 million dollars in the fiscal year I955, mainly for purchase of mortgages to finance military and defense housing under commitments made in earlier years. By I 955 the supply of private funds is expected to be adequate in most areas to provide financing for most other types of mortgages without Federal support. The policy of this administration is to sell the mortgages now held by the Association as rapidly as the mortgage market permits. Assuming satisfactory market conditions, receipts from these sales and from other sources in 1955 will exceed expenditures by an estimated i66 million dollars. This contrasts with net expenditures of 379 million dollars in I953, and 62 million dollars estimated for 1954. The legislation which I shall propose would provide authority to establish, from time to time, maximum interest rates and other terms on insured and guaranteed mortgages with the objective of encouraging an adequate, but not excessive, supply of private mortgage funds for all parts of the 51986-60 13 I 49

Page  150 e 14 Public Papers of the Presidents country. This proposal would make unnecessary in the future large Government purchases of mortgages such as were required in the past, whenever interest rates made such mortgages unattractive to private lenders. I shall also recommend the initiation of a new program, financed in large part from private funds, to furnish many of the secondary market facilities now provided by the Federal National Mortgage Association. Other aids to private housing.-Net expenditures for direct housing loans to veterans are estimated at 44 million dollars in the fiscal year I955, compared with 78 million dollars in I954. Sales of loans to private investors are expected to rise as a result of the recent increase in the rate of interest on these loans. Under existing law, disbursements will be made during I955 only on loans for which commitments are made prior to the expiration of lending authority on June 30, I954. Authority for farm housing loans under title V of the Housing Act should be permitted to expire on June 30, I954. Most of the essential needs can be met under other authorities and funds available to the Farmers' Home Administration. The loans of three other programs will be substantially liquidated in the fiscal year I954. These include mortgages held by the Reconstruction Finance Corporation, loans made by the Housing Administrator to the Alaska Housing Authority, and loans to various prefabricated housing manufacturers. Public housing.-As already indicated, I shall propose a new mortgage insurance program and other measures to encourage provision of private housing for low-income families. If these proposals prove effective, the need for future construction of low-rent public housing will be reduced. As an interim measure, however, the present public housing program should be continued at the level considered necessary to meet the needs of low-income families, particularly those displaced by slum-clearance and urban rehabilitation activities. Accordingly, my recommendations for the fiscal year I955 in this budget would authorize construction of approximately 35,000 low-rent public housing units by local housing authorities, with the assistance of Federal loans and annual contributions adequate to assure the low-rent character of these units. An estimated 956 million dollars in temporary Federal loans and other expenditures will be necessary to finance the operations of the low-rent and other public housing programs during the fiscal year I955. Receipts 150

Page  151 Dwight D. Eisenhower, 1954 e I4 from private refinancing of local housing authority obligations and other sources are estimated to exceed these expenditures by 234 million dollars. All except 8 million dollars of the 77 million dollars in new obligational authority requested is for payment of annual contributions under contracts made in prior years. College housing.-Under the Housing Act of I950 the Housing Administrator makes direct loans repayable over 40 years to finance student and faculty housing at colleges and universities. Net expenditures for such loans in I955 will rise to 58 million dollars, largely under commitments made in prior years. By June 30, I955, over 200 loans will have been approved. These will finance construction of housing accommodations for about 5o,ooo students and faculty members. Wherever possible, private financing of these loans will be encouraged. Provision of community facilities.-The sharp reduction in net expenditures for provision of community facilities reflects mainly liquidation by the Treasury of loans to public agencies which were originally made by the Reconstruction Finance Corporation. No appropriations are being requested at this time for new loans to public agencies. To encourage State and local governments to prepare for possible future expansion in public works construction, I am recommending legislation to authorize Federal advances to them for planning future construction. If the authority is granted, I shall request a supplemental appropriation for the fiscal year I954 of io million dollars, with estimated expenditures of 3 million dollars in 1955. Civil defense.-Expenditures for civil defense are included in housing and community development because of their community aspects, but the program is discussed in this message under national security. Federal expenditures for civil defense are estimated at 68 million dollars in the fiscal year I 955. EDUCATION AND GENERAL RESEARCH The citizen in a democracy has the opportunity and the obligation to participate constructively in the affairs of his community and his Nation. To the extent that the educational system provides our citizens with the opportunity for study and learning, the wiser will their decisions be, and the more they can contribute to our way of life. I do not underestimate the difficulties facing the States and communities in attempting to solve the problems created by the great increase in '5'

Page  152 IJ 14 Public Papers of the Presidents the number of children of school age, the shortage of qualified teachers, and the overcrowding of classrooms. The effort to overcome these difficulties strains the taxable resources of many communities. At the same time, I do not accept the simple remedy of Federal intervention. It is my intention to call a national conference on education, composed of educators and interested citizens, to be held after preparatory conferences in the States. This conference will study the facts about the Nation's educational problems and recommend sensible solutions. We can then proceed with confidence on a constructive and effective long-range program. Pending the outcome of these conferences and the development of our educational program, the Federal Government is providing assistance to those communities where school needs have been greatly increased by the activities of the Federal Government. Budget expenditures for education and general research activities in the fiscal year 1955 are estimated at 223 million dollars. This figure does EDUCATION AND GENERAL RESEARCH [Fiscal years. In millions] Budget expenditures (net) I953 I954 I955 actual estimated estimated Recommended new obligational authority for I955 Program or agency Promotion of education: Office of Education: Assistance for school construction and operation in federally affected areas........... Vocational education.................... Grants for colleges of agriculture and the mechanic arts......................... Educational conference and other proposed legislation............................ Other................................. Educational aid to special groups............. Library and museum services................ General-purpose research: National Science Foundation............... Bureau of the Census...................... National Bureau of Standards.............. Total.................................. 1 Less than 500,ooo dollars. $201 25 $199 26 $I39 25 $99 25 5 5 5 5 3 7 1 I 4 I 3 8 277 I 3 7 12 7 9 9 278 3 7 12 12 10 9 223 (1) 3 9 12 I4 IO 8 2 I85 2 Compares with new obligational authority of 328 million dollars in 1953 and 217 million dollars in I954. I52

Page  153 Dwight D. Eisenhower, I954 not include amounts spent for education and research in connection with the military, veterans', atomic energy, and certain other programswhich are classified in other sections of the budget. Sixty-two percent of the expenditures for education and general research in the fiscal year I955 will be for grants to those local school districts that have been burdened by Federal activities. Another I 3 percent will be for grants to States to help support their vocational education programs and their land-grant colleges. The Federal Government also assists Howard University and educational institutions for the deaf and blind, and it maintains major library and museum services at the National Capital. Expenditures shown for general-purpose research are for programs of the Census Bureau, the National Bureau of Standards, and the National Science Foundation. Promotion of education.-Responsibility for education in the United States belongs to the State and local governments. The Federal Government has for many years provided financial assistance for land-grant colleges and some other educational activities. The Office of Education also disseminates information on educational trends and good practices. In recent years, the problems of education have been increasing in severity while this service has been reduced. My budget recommendations provide for an expansion of this basic activity. The proposed national conference and preparatory State conferences will be most important steps toward obtaining effective nationwide recognition of these problems and toward recommending the best solutions and remedies. I recommend immediate enactment of the authorizing legislation and appropriations so that preparations for the individual State conferences as well as the national conference can begin at once. Within the appropriation recommended for the Office of Education in this budget is provision to expand the studies and consultations through which it promotes better practices in education. One problem to which particular attention will be given is the meager education received by children of migrant agricultural workers. Because these children move with their parents from State to State, the problem of providing for their education can be solved only through special effort on a cooperative interstate basis. In addition, I recommend that legislation be enacted which will enable the Office of Education to join its resources with those of State and local '53

Page  154 41 I4 Public Papers of the Presidents agencies, universities, and other educational organizations for the conduct of cooperative research, surveys, and demonstration projects. Legislation is necessary to make this cooperative effort effective. An advisory committee on education in the Office of the Secretary of Health, Education, and Welfare should be established by law. This recommendation carries forward an objective of the reorganization plan under which the Department was created last year. This committee, composed of lay citizens, would identify educational problems of national concern to be studied by the Office of Education or by experts outside the Government, and would advise on action needed in the light of these studies. For these new activities directed toward the improvement and strengthening of our basic educational services, I am including 300,000 dollars in the I955 budget and recommending a I954 supplemental appropriation of 2 million dollars. The last session of the Congress enacted legislation to extend temporarily the laws under which assistance has been provided to local school districts burdened by Federal activities, and to improve the original laws so that they will provide the aid economically and to the areas most acutely affected. As a result of these improvements, the recommended appropriation of 59 million dollars for school-operating assistance in the fiscal year I955 is I4 million dollars below the amount for I954. This assistance is provided to more than 2,000 school districts, with enrollments of almost 5 million children, of whom almost I million qualify for assistance because their presence is related to Federal activities. The appropriation of 40 million dollars for school construction recommended for I955, together with the I954 appropriation of 70 million dollars, will provide for the most urgent classroom needs of the school districts eligible for this aid under the extended program. These funds are being used to help build almost 5,000 classrooms to serve I40,000 children. Aid to special groups.-A construction program now underway at Howard University will provide facilities for double the enrollment in the schools of medicine, dentistry, pharmacy, and related health fields. This budget includes funds for the construction of the preclinical medical building, the last unit necessary to make this expanded enrollment possible. Although the university is not limited to any group, it serves as I54

Page  155 Dwight D. Eisenhower, 1954 ( I4 an important center of higher education for Negroes. The expanded enrollment, therefore, will help to alleviate the shortage of doctors, particularly Negro doctors. Enrollment at the Columbia Institution for the Deaf has been increasing in recent years. Steps now being taken to enable the college to reach an accredited status in the near future include the provision of additional teachers and funds for the construction of a library-classroom building. One-third the cost of this building is being provided by contributions, primarily from former students. General research.-The National Science Foundation was created by the Congress in recognition of the need to formulate an adequate scientific research policy for the Nation. It is now engaged in intensive studies to that end, and is giving particular attention to the size and composition of the research activities of the Federal Government. The Congress, at its last session, amended the basic act of the Foundation, removing the ceiling on appropriations to this agency in order to permit steps toward increasing the responsibility of the Foundation for the general-purpose basic research of the Federal Government. Approximately one-half of the 6-million-dollar increase I am recommending in the appropriation for the Foundation for the fiscal year I955 is in reality a transfer of the responsibility and the financing for certain basic research programs from the Department of Defense to the National Science Foundation. The remainder of the increase is needed to expand basic research. Within the appropriation for the National Bureau of Standards, there is also provision for an increase in basic research. Additional basic research is needed to build up the fund of knowledge on which will be based the development of new crops for agriculture, new methods of safeguarding health, new tools for industry, and new weapons. A further important result is the training which basic research projects provide for graduate students in our universities. The number of trained scientists graduating each year falls short of the needs of our growing economy and is still declining. Enlargement of the research program and the related fellowship program will help counteract this trend. Funds are requested for the fiscal year I 955 to permit the Census Bureau to conduct a sample census of agriculture. This census will provide essential data for current needs. '55

Page  156 ( I4 Public Papers of the Presidents AGRICULTURE AND AGRICULTURAL RESOURCES My recommendations for Federal agricultural programs are designed to help in the solution of pressing immediate problems such as the hardships arising from severe drought in major farm areas, the squeeze on livestock producers resulting from lower cattle prices, and the disposal of excess stocks of wheat, cotton, vegetable oils, and dairy products which have been accumulated under provisions of price-support laws presently in force. They also take into account our long-run goals-promotion of a more stable and healthy farm economy, conservation and improvement of our basic agricultural resources, and provision of an adequate supply of food and fiber to match the needs of our increasing population. AGRICULTURE AND AGRICULTURAL RESOURCES [Fiscal years. In millions] Gross expenditures 1954 1955 I 953 esti- estiactual mated mated RecomNet expenditures mended -- new obI1954 I1955 ligational 1953 esti- esti- authority actual mated mated for 1955 Program or agency Stabilization of farm prices and farm income: Price support, supply, and purchase programs (CCC): Existing programs 1........ Proposed legislation........... International Wheat Agreement...... Removal of surplus agricultural commodities......... Sugar Act......... Federal crop insurance............ Agricultural adjustment programs.. $2,874 $2,832 $2,951 $i,831 $1, 152 $1, 105.................................................... $1,750 131 84 89 131 84 89....... 82 63 205 233 82 65 65 63 205 233 I80 65 65 6o 27 37 33 5 9 3 6 I3 44 43 I3 44 43 42 1 Gross expenditures exclude private bank loans guaranteed by the Commodity Credit Corporation and net repayments thereof in the amount of 340 million dollars in 1953, 1,564 million dollars in 1954, and 274 million dollars in 1955. 156

Page  157 Dwight D. Eisenhower, I954 AGRICULTURE AND AGRICULTURAL RESOURCES-Continued [Fiscal years. In millions] Program or agency Financing farm ownership and operation: Farm Credit Administration...... Farmers' Home Administration..... Disaster loans and emergency feed... Financing rural electrification and rural telephones......... Agricultural land and water resources: Agricultural conservation program... Soil Conservation Service, flood prevention and other: Existing programs. Proposed legislation........... Research and other agricultural services. Total............ Gross expenditures 1954 1955 1953 esti- estiactual mated mated $1, 936 $2,oi2 $2,164 177 193 i68 Net expenditures '954 I955 I953 esti- estiactual mated mated -$83 -$I $42 Recommended new obligational authority for 1955 $25 177 I93 I68 I68 47 315 66 i6 i8i -I17...... 239 250 232 239 250 232 137 308 256 196 251 242 i65 195 66 73 69 66 73 69 66 2 2 3 I45 6, io8 I57 6, 523 167 6, 478 I45 2, 936 I57 2,654 167 2, 366 I59 2 2,791 2 Compares with new obligational authority of 1,333 million dollars in 1953 and 2,302 million dollars in 1954. The Secretary of Agriculture has recently reorganized the Department to increase administrative efficiency and to make more effective the various services the Department renders. Activities have been grouped into major units consisting of closely related programs, and provision has been made for greater emphasis on research and extension work directed to the improvement of farm products, reduction of production and marketing costs, and broadening of both the foreign and the domestic markets for farm products. Gross expenditures for agricultural programs in the fiscal year I 955 are 51986-60 14 I57

Page  158 (e I4 Public Papers of the Presidents estimated at 6.5 billion dollars. Repayments of loans and the sale of commodities constitute most of the receipts of the public enterprises carrying on certain of these programs. These receipts are estimated at 4.I billion dollars. Hence, net budget expenditures in the fiscal year I955 are estimated at 2.4 billion dollars. This is 288 million dollars less than estimated net expenditures in I954 and 570 million dollars less than in I953. Stabilization of farm prices and farm income.-Price support activities of the Commodity Credit Corporation, which account for nearly one-half of the estimated I955 net budget expenditures for agriculture and agricultural resources, have dominated the trend of these expenditures in recent years. There is no better evidence of the tremendous budgetary significance of these activities than the increase of about 2.5 billion dollars during the past calendar year in commodities held by the Corporation and in price support loans. Furthermore, present prospects indicate that, under present law, large additional budgetary outlays will be required for these activities in the fiscal year I955. It is clear, therefore, that a thorough reconsideration by the Congress of the provisions of existing price support laws is needed not only in the interest of farmers, but also in the national interest. In my recent special message, I recommended improvements in the price support legislation both to deal with the immediate problems arising from our large surpluses of agricultural commodities and to chart a course for the future that will more effectively achieve the goals of farm price supports. In most instances the reduction in budget expenditures which can be expected from improved and more flexible price support provisions will begin to be effective in the fiscal year 1956. It is impossible, because of many variable factors, to estimate with any certainty the expenditures under these programs. Based upon the best information now available, it appears that the gross price support expenditures of the Commodity Credit Corporation, which reflect mainly the loans made and commodities acquired during the year, will be 3 billion dollars in the fiscal year I955. Anticipated receipts of i.9 billion dollars from loan repayments and commodity sales will result in net expenditures in the fiscal year I955 of i.i billion dollars. These net expenditures for price supports are expected to be 47 million dollars lower than in I954, and 726 million dollars below the high level reached in 1953. 158

Page  159 Dwight D. Eisenhower, I954 q 14 The reduction in expenditures from the 1953 level is due primarily to the application of marketing quotas on wheat and cotton and acreage allotments on corn which are intended to reduce production from the 1954 crops. The estimates for the fiscal years 1954 and 1955 also reflect greater emphasis given to private financing of price support operations. This, coupled with the customary timing for loan maturities, will result in a substantial proportion of the price supports on the I953 and I954 crops not becoming a Government expenditure until the loans held by private institutions mature, which will occur in I955 and subsequent fiscal years. All obligations of the Commodity Credit Corporation, whether in the form of borrowing from the Treasury or commodity loans held by banks and guaranteed by the Corporation, constitute a use of the statutory borrowing authority of 6.75 billion dollars. With the large volume of commodity loans and inventories now held and the increases expected in 1954 and 1955, it is estimated that the obligations of the Corporation may exceed its present borrowing limit during the annual peak, probably February I954, and rise to a still higher level in the fiscal year I955. I shall recommend to the Congress early in this session a supplemental 1954 estimate of 775 million dollars to restore borrowing authority to the Corporation, through cancellation of notes owed the Treasury, in an amount equal to the sum of the Corporation's capital impairment as of June 30, I953, the advances during I953 for control of foot-and-mouth disease, and the cost of operations under the International Wheat Agreement. This note cancellation will require immediate action by the Congress to insure that the Corporation can fulfill its statutory responsibilities under the present price support program. I shall also recommend legislation to increase the borrowing authority of the Corporation by 1.75 billion dollars, effective July I, 1954. This recommended increase in borrowing authority takes into account the increased commitments by the Government which would result from the proposed increase in the minimum 1954 cotton acreage allotment. While these commitments will be made in the fiscal year 1955, the cash expenditures by the Commodity Credit Corporation will not occur until 1956. The recommended new obligational authority for the Corporation will meet the minimum foreseeable needs, provided steps are taken through new legislation to place our farm price support program on a sound basis I59

Page  160 Public Papers of the Presidents for the future. A further request for additional borrowing authority may be necessary at a later date if conditions result in this amount being insufficient to provide for the commitments and expenditures required during the period the presently applicable price support provisions remain in effect. Under the revised International Wheat Agreement, which became effective in the fiscal year 1954, our export quota for wheat has been reduced because of the withdrawal of Great Britain from the Agreement. Moreover, the maximum export price has been raised from $I.80 to $2.05 per bushel. As a result, expenditures under this program are expected to be only about two-thirds as much as in 1953 when our guaranteed export quota was larger and the spread between the domestic price and the export price of wheat was wider. While expenditures under the Wheat Agreement will be less in 1955 than in earlier years, the loss of wheat exports may increase wheat surpluses and thus cause larger outlays by the Commodity Credit Corporation under the price support program than would otherwise occur. The permanent appropriation for the removal of surplus agricultural commodities, enacted in 1935, is equivalent to 30 percent of the customs receipts for the preceding calendar year. In the fiscal year 1955 there will be available from this authority a carryover of 241 million dollars from prior years plus I8o million dollars of new authorization. This total of 421 million dollars compares with estimated expenditures in I955 of 233 million dollars. Of this amount 150 million dollars of surplus commodities purchased under this program is estimated to be distributed to the national school lunch program in 1955, as compared with I23 million dollars in I954 and 52 million dollars in I953. This permanent appropriation will be used also to strengthen the work being done by the Foreign Agricultural Service in cooperation with the Department of State in developing new foreign markets for our agricultural products. Financing farm ownership and operation.-The Farm Credit Act of 1953, enacted by the last session of the Congress, restored the Farm Credit Administration to an independent status under the supervision of the Federal Farm Credit Board created by that legislation. It is the policy of this administration, through the Farm Credit Administration, to strengthen cooperative credit services on the basis of sound business-credit standards, and to increase farmer participation in the ownership and control of the Federal farm credit system to the end that the investment of I60

Page  161 Dwight D. Eisenhower, I954 the United States in the federally sponsored agricultural credit institutions may be retired within a reasonable time. The cooperative credit institutions supervised by the Farm Credit Administration make both long- and short-term loans to farmers and to farmers' cooperatives. Short-term loans by the production credit associations are financed largely through the federally owned intermediate credit banks. Gross expenditures of these banks, which reflect mainly new loans, are expected to be approximately offset by receipts from loan repayments in the fiscal year 1955. Direct loans to farmers by the Farmers' Home Administration, primarily for farm ownership, production and subsistence, and water facilities, are intended to supplement the credit services provided by private and cooperative credit agencies. The principal purpose of these loans is to help borrowers improve their financial situation so that they can qualify for private or cooperative credit. In the fiscal year I955, the regular loan program will be continued at about the same level as that provided in I954. Collections of principal and interest on old loans, which approximately equal new loans made, go directly into miscellaneous receipts of the Treasury and are not deducted from budget expenditures of this program. Existing legislation does not provide adequately for the financing of group water facilities and related small water supply projects. Proposals for legislation will be submitted at a later date to broaden the geographical area within which water facilities loans may be made, and to increase the loan limit. The volume of special disaster loans to farmers increased sharply during the first half of the fiscal year I954. This increase resulted mainly from loans made to stockmen and other farmers in droughtstricken areas to help them finance feed purchases and thereby avoid drastic liquidation of their livestock holdings. The Federal Government also contributed emergency feed from stocks acquired in price support operations and absorbed a part of the cost of making other feed available to farmers in these areas. As of December I8, i953, the Federal Government under this program had committed 52 million dollars to supply I.4 million tons of feed concentrates and over 5 million dollars to cover the Federal Government's share of the cost of the hay program which is administered by the States. A recommendation will be made to the Congress shortly 16I

Page  162 q I4 Public Papers of the Presidents to assure a continuation of advances to States for assistance in distributing hay to farmers and ranchers in the drought areas. In addition, meat purchases of 86 million dollars by the Government up to December i6, 1953, financed from the permanent appropriation for removal of surplus agricultural commodities, have resulted in the removal of about 780,ooo head of cattle from the market. The disaster loan program, along with provision of emergency feed and purchases of meat by the Department of Agriculture, supported livestock prices at a time when the market otherwise would have been more depressed by forced liquidation of livestock. The need for new loans and other emergency assistance is expected to be greatly reduced by the spring of I954, and collections during the fiscal year 1955 on disaster loans made in prior years should exceed new loans made. Financing rural electrification and rural telephones.-The need for rural electrification loans has become less as the proportion of our farms -that are electrified has increased. About 9i percent of our farms are -now electrified. Only about 42 percent of our farms, however, have -telephone service. The budget recommendations for these two programs in the fiscal year I955 provide loan funds sufficient to finance substantial further expansion of electrification and telephone services in rural areas. In order to reduce the need for future Federal aid, this administration also is exploring possible arrangements whereby more private capital can be made available to finance telephone services in -rural areas. Agricultural land and water resources.-The need for greater emphasis on conservation and development of our agricultural land and water -resources was set forth in my special message to the Congress on this matter,on July 3I, 1953. The budget estimates provide for 66 million dollars -under existing legislation to continue and improve the technical and advisory services of the Soil Conservation Service and for related activities. Additional work should be undertaken with a view to strengthening our vital upstream conservation activities. Farmers increasingly realize that it is in their own interest to do more of this work. Because the Nation as well as farmers and local communities receive benefits,, this work should be a joint responsibility. Existing law, however, does not provide an adequate basis for cooperative upstream development. The I 955 budget, therefore, includes 3 million dollars under proposed legislation to permit the Department of Agriculture to cooperate with State and local agencies i62

Page  163 Dwight D. Eisenhower, 1954 in the planning and installation on small watersheds of the necessary protective facilities, and to provide for better conservation, development, utilization, and disposal of water. This will supplement the i i million dollars to be spent under existing law for watershed protection and flood prevention projects. In conformance with the forward authorization for the I954 crop year enacted in the I954 appropriation act, the budget provides I95 million dollars for the agricultural conservation payment program in the fiscal year I955. A proposed revision of this program will be recommended to the Congress. The proposal involves no expenditures in the fiscal year I955. Research and other agricultural services.-To achieve a more efficient and stable agriculture and to provide for the future needs of a growing population, increased attention must be given to research and educational work on problems of agricultural production, soil conservation, and marketing. The I955 budget includes I I2 million dollars for research and extension work, an increase of i8 million dollars over the estimate for the fiscal year 1954. This work is done in cooperation with State and private agencies. The budget recommendations will provide for a needed expansion of research on marketing and utilization of farm products and of other scientific research conducted by Federal agencies, and increased payments to States for related cooperative research programs. This budget also will provide greater Federal contributions to the Federal-State extension program. The recommended increase in Federal appropriations for cooperative research and extension work is accompanied by a recommended decrease in appropriations for certain regulatory activities carried on jointly with the States. The budget contemplates elimination of Federal contributions for tuberculosis and brucellosis indemnity payments and curtailment of Federal quarantine and similar operations in a number of insect and plant disease programs. The shift in responsibility for continuation of these programs is in accordance with the policy of this administration that the Federal Government should withdraw from activities which we believe can be more appropriately carried on by private enterprise or by State and local governments. A strengthening of agricultural research and the wide dissemination of improved techniques through extension work will contribute to the efficiency of farm production and marketing, benefiting both producers and i63

Page  164 Public Papers of the Presidents consumers. This will provide the solid foundation for a more prosperous and stable agriculture and ultimately for less reliance on Government price support and other financial aids. NATURAL RESOURCES My recommendations for the natural resources programs of the Government are based on a reappraisal of the responsibility which the Federal Government should exercise in the development of our resources. At the same time, the recommendations have been made with due regard to our overall fiscal position. To keep the Federal financial burden at a minimum while defense expenditures remain high, some improvements and program expansions which might be desirable have not been included in this budget. Emphasis has been given to careful planning to insure sound development of our natural resources. Such development should be timed, whenever possible, to assist in leveling off peaks and valleys in our economic life. A strong program of resource conservation and development is necessary to support the progressively expanding demands of our increasing population and to contribute to the economic growth and security of the Nation. Achievement of this goal requires a combined effort on the part of States and local communities, citizens, and the Federal Government. To the greatest extent possible, the responsibilitity for resource development, and its cost, should be borne by those who receive the benefits. In many instances private interests or State and local governments can best carry on the needed programs. In other instances Federal participation or initiative may be necessary to safeguard the public interest and to accomplish broad national objectives. Estimated net expenditures of I. i billion dollars in the fiscal year I955 will provide for the management and protection of the resources which belong to all the people and which are under the jurisdiction of the Federal Government. About three-fourths of this total will be for flood control, irrigation, power, and multiple-purpose river basin development. The remainder will be spent on the management, development, and protection of our national forests, parks, and other public lands, and for mineral and fish and wildlife resources and basic surveys. Activities to advance the peacetime applications of atomic energy, which will be of increasing significance in I955, are discussed with other activities of the Atomic Energy Commission in the national security section of this message. i64

Page  165 Dwight D. Eisenhower, I954 ( 14 NATURAL RESOURCES [Fiscal years. In millions] Gross expenditures Net expenditures Recommended new I954 1955 1954 1955 obligational 1953 esti- esti- I95 esti- esti- authority Program or agency actual mated mated actual mated mated Land and water resources: Corps of Engineers: Flood control and multiplepurpose projects: Existing program...... $579 $4I6 $361 $579 $416 $361 Proposed legislation: Aid for non-Federal development of water resources........................ 5 5 Department of the Interior: Bureau of Reclamation: Irrigation and multiple-purpose projects: Existing program..... 235 I82 167 231 i8o 164 Proposed legislation: Federal projects............. (1).......... (1) Proposed legislation: Aid for non-Federal development of water resources.................... 5... 5 Power transmission agen for 1955 $342 5 i6o (1) 5 cies................. Indian lands resources.. Bureau of Land Management and other...... Tennessee Valley Author 65 64 53 65 64 32 36 35 29 35 '4 i6 15 '4 I6 53 39 34 27 15 i6 ity................... 315 366 439 184 195 212 Department of State..... 15 9 5 I5 9 5 Federal Power Commission................... 4 4 4 4 4 Forest resources........... 107 16 IIo 107 ii6 IIo Mineral resources......... 4I 41 39 38 38 36 Fish and wildlife resources... 34 37 38 34 37 38 Recreational use of re 142 2 4 o8 36 36 sources................. 30 34 34 30 34 34 29 General resource surveys and other............... 28 28 27 28 28 27 27 Total...................., 499 1,349 1,337 1, 358, I72 1, 03 2 978 1 Less than 500,000 dollars. 2 Compares with new obligational authority of 1,396 million dollars in 1953, and 1,026 million dollars in 1954. i65

Page  166 Public Papers of the Presidents Land and water resources.-Under my recommendations in this budget, the Federal Government will spend an estimated 858 million dollars for the conservation and development of land and water resources in the fiscal year 1955. A major part of this represents investment in assets which will yield benefits long into the future. This administration is developing a sound and uniform national policy for the conservation, improvement, and use of water and related land resources, designed to assure that future programs are not only responsive to local requirements but are consistent as well with the needs of the Nation as a whole. As a step in this direction, a statement of principles has been issued on the generation, transmission, and disposal of electric power. Standards for the justification of proposed water resources projects are currently being reviewed by the executive branch. Special attention is being given to requirements for the sharing of costs among private beneficiaries, State and local groups, and the Federal Government. Also, the Congress has established commissions to examine resource programs, as well as other Federal activities, and to make recommendations with respect to them. As the various studies are completed, I shall make specific legislative recommendations to the Congress. This administration has also taken and will continue to take steps to encourage non-Federal interests to formulate plans and undertake development of water resources, including hydroelectric power, which are consonant with the best use of the natural resources of the area. An outstanding example of cooperation between various levels of governmentState, Federal, and international-in multiple-purpose development of a resource is the proposal for the development of the St. Lawrence River. It would also be in the public interest for construction to be undertaken, on a non-Federal basis, to realize the power potential of the Niagara Falls site. Basic resource surveys and advance engineering and design activities will be carried on in 1955 at rates necessary to provide for further development of our resources. Federal activities in projects or plans will not imply any exclusive reservation of such projects to Federal construction or financing or preclude local participation in them. Needed projects to be constructed by the Federal Government may include those which, because of size and complexity, are beyond the means of local, public or private enterprise. My budget recommendations also provide for the continuation of river i66

Page  167 Dwight D. Eisenhower, I954 e I4 basin work now underway. Less urgent features of the projects, not required for operation of going or completed units, will be deferred. Budget expenditures of the Bureau of Reclamation and the Corps of Engineers include an estimated 443 million dollars in the fiscal year I955 to carry on construction of about i 6o river basin development projects. A substantial amount of these expenditures is for multiple-purpose development for irrigation, flood control, navigation, and hydroelectric power. l)uring the fiscal year I955, 20 projects will be completed or substantially c ompleted, including 9 flood control projects, 5 irrigation projects, and 6 multiple-purpose projects with power facilities. In furtherance of the policies of this administration, I am recommending the starting of some new projects or new units of existing projects by the Corps of Engineers and the Bureau of Reclamation, as well as the resumption of some previously deferred projects. The budget recommends commencing work on 6 irrigation and water supply projects, 8 local flood prevention projects, and 8 navigation projects, one of which I recommend starting in the fiscal year I954 with supplemental funds. In addition, it provides for resumption of work on 2 flood control reservoirs and 2 river and harbor improvements. This work is estimated to cost a total of I 84 million dollars, with expenditures of 20 million dollars scheduled for the fiscal year I955. Together with the St. Lawrence Seaway, this totals to 23 new projects and 4 resumptions in the budget. The navigation projects, including the St. Lawrence Seaway, are discussed in this message with the transportation and communication programs. Recommendations for related watershed protection and flood prevention activities of the Department of Agriculture are discussed in the section on agriculture and agricultural resources. The new local flood prevention works, to be constructed by the Corps of Engineers, are relatively small projects and can be completed within 3 years. The detailed plans preliminary to construction have been completed. Each of the projects has a favorable ratio of benefits to costs and provides for a reasonable degree of financial cooperation by local interests. Resumption of work is proposed on 2 flood control reservoirs, each of which is about one-third completed. The new projects recommended for the Bureau of Reclamation include 3 projects already authorized and 2 projects under legislation I am proposing. Commencement of work is also recommended on a new pumping unit of an irrigation project now under construction. These are small i67

Page  168 4 I4 Public Papers of the Presidents or intermediate-sized developments. In their selection, consideration has been given to the benefits of supplemental irrigation for established farming areas, to more intensive and beneficial use of existing water supplies, and to the ability of the water users to make a reasonable repayment of the investment. In the case of one of the projects which requires authorization, I have recommended to the Congress that provision be made in the legislation for repayment within 50 years of all reimbursable costs, and that construction of the project be made contingent on the assumption by the State, together with local organizations, of financial responsibility for reimbursable costs beyond the ability of the water users to repay. This principle is in line with the policy of this administration that, to the greatest extent possible, the cost of these developments should be borne by those who receive the benefits. In accordance with this administration's policy of encouraging State and local undertakings, there is included in the budget an initial appropriation of Io million dollars under proposed legislation to enable the Corps of Engineers and the Bureau of Reclamation to cooperate with States, local governments, or private groups in the development of their water resources. It is thought that there are projects on which State and local interests could go forward with some Federal assistance. Such assistance should be provided on an equitable financial basis and should be limited to projects from which benefits would accrue to the general public. The power policy of this administration recognizes the willingness of State and local groups to participate in providing additional power facilities. Where the necessary transmission facilities are not being provided on reasonable terms by other public or private agencies, the Department of the Interior will construct and operate transmission lines that are economically feasible and are necessary for proper interconnection and operation of Federal generation plants, and those that are required to carry power to load centers within economic transmission distances. As a result of this policy and the approaching completion of transmission systems required for carrying out arrangements for marketing power from Federal projects under construction, combined expenditures of the Bonneville, Southeastern, and Southwestern Power Administrations in the fiscal year I955 will be less than in 1954. Under the Federal Power Act, licensees of hydroelectric projects which benefit from headwater impoundments of other projects, either public or i68

Page  169 Dwight D. Eisenhower, r954 private, must make annual payments to the upstream developer in accordance with benefits received. The Federal Government is not required to make similar payments when Federal projects derive such benefits. In simple equity, this should be done. I recommend enactment of legislation which would require such Federal payments. Although no appropriations are included in the 1955 budget for new power generation units by the Tennessee Valley Authority, expenditures will increase for continuation of construction of power plants presently underway, and for operation of power plants after they are completed. Expenses for operation of flood control, navigation, and fertilizer facilities will continue at about the I954 level. Expenditures for power and fertilizer operations are more than offset by the income from sales. In order to provide, with appropriate operating reserves, for reasonable growth in industrial, municipal, and cooperative power loads in the area through the calendar year I 957, arrangements are being made to reduce, by the fall of I 957, existing commitments of the Tennessee Valley Authority to the Atomic Energy Commission by 500,000 to 6oo,ooo kilowatts. This would release the equivalent amount of Tennessee Valley Authority generating capacity to meet increased load requirements of other consumers in the power system and at the same time eliminate the need for appropriating funds from the Treasury to finance additional generating units. In the event, however, that negotiations for furnishing these load requirements for the Atomic Energy Commission from other sources are not consummated as contemplated or new defense loads develop, the question of starting additional generating units by the Tennessee Valley Authority will be reconsidered. In order to carry out the power policy of this administration which requires an interest charge on the Federal investment in power facilities to reimburse the Treasury for the cost of providing funds, a proposal is being developed for submission to the Congress to provide that an adequate rate of interest be paid to the Treasury on public funds invested in power facilities of the Tennessee Valley Authority. For this purpose, I have requested that a study be undertaken by the agency in cooperation with other executive agencies. National forests and other public lands.-The development and use of our public lands should be on a businesslike basis with due regard for proper conservation and for the rights and interests of States and private i69

Page  170 Public Papers of the Presidents citizens. Programs of the Forest Service and the Bureau of Land Management provide for the management, development, and increasing use of the valuable timber, forage, and mineral resources of the national forests and public lands, and also for the protection and use of these lands for their strategic watershed and other public values. Receipts from the use of these lands, estimated at 154 million dollars in the fiscal year I955, are shared with the States and counties in which the lands are located. The budget contemplates the withdrawal of Federal financial participation in certain phases of State and private forestry cooperation, with greater assumption of responsibility by local interests. At the same time, emphasis will be placed by the Forest Service on cooperative research. Increased funds are recommended to complete construction of access roads needed to salvage the timber in the beetle-infested and windblown forest areas of Washington and Oregon. Expenditures for the management and protection of our national parks, monuments, and historic sites will be somewhat above the current-year level, so as to provide for improved services to the increasing number of visitors. This increase is largely offset by a reduction in expenditures for construction. Federal aid to States for fish and wildlife restoration, financed by special taxes on fishing and hunting goods, will increase. As a part of the administration's objective of charging reasonable fees for services or facilities provided by the Government for private individuals or groups, consideration is being given to adjustments which would result in increased receipts to the National Park Service, thus returning to the Treasury a larger amount of the costs of maintaining and operating our national parks. Expenditures on Indian land resources will provide for soil conservation work and further development of water supplies and timber and range resources necessary for their economic development. In the fiscal year 1955 appropriations will be reduced from their level in I954 as a result of the slowing down or deferring of some construction projects-which will be accomplished without jeopardizing the overall objectives of the Indian programs. Mineral resources.-I have recently appointed a Cabinet committee to establish guidelines for the prudent use and development of domestic mineral resources and to assure our growing economy of necessary mineral supplies in time of emergency. The report of this committee, expected 170

Page  171 Dwight D. Eisenhower, 1954 (I I 4 within the next few weeks, should be helpful in resolving many of the problems facing the mineral producers of the Nation. The Bureau of Mines will continue its basic research programs in the fiscal year I955 for the aid of private development of resources, with emphasis on expanding the utilization of minerals in abundant supply and the development of suitable substitutes for materials in short supply. The Federal Government will also encourage private development by undertaking basic resource surveys, providing incentives for exploration of high priority minerals, and assisting in the development of oil and gas reserves of the Outer Continental Shelf. TRANSPORTATION AND COMMUNICATION Efficient transportation and communication services are essential to the national economy and the national security. At my request, an intensive reappraisal of Federal responsibilities is underway both by the regular departments and agencies and by special commissions. The general principles guiding this reappraisal are that the national interest will usually be served best by a privately owned and operated industry, which is supported by a minimum of Federal funds or Federal basic facilities and services operated at the lowest feasible cost and financed, where possible, by charges levied on the users of the services. In the fiscal year I955 net budget expenditures for transportation and communication programs will decline to an estimated I,4 I 8 million dollars, compared with I,856 million dollars in I954 and 2,077 million dollars actually expended in I953. The largest decrease is the anticipated reduction of the postal deficit by operating savings and by increased postal rates. Sizable reductions have also been made in other large programs. New legislative authority is required to move more rapidly toward putting the postal service on a self-supporting basis and to establish a corporation to operate the Washington National Airport. I am also recommending legislation to permit us to participate in the St. Lawrence Seaway, and to continue and strengthen the Federal-aid highway program. Promotion of aviation.-The rapid development of aviation has been materially assisted by numerous services and by direct financial assistance provided by the Federal Government. These aids have included basic scientific research in aeronautics, establishment and operation of airways, enforcement of safety regulations, assistance in construction of airports, '7I

Page  172 q1 I4 Public Papers of the Presidents TRANSPORTATION AND COMMUNICATION [Fiscal years. In millions] Gross expenditures Net expenditures Recommended new 1954 1955 I 954 I1955 obligational 1953 esti- esti- 1953 estiz- esti- authority actual mated mated actual mated mated for 1955 Program or agency Promotion of aviation: Civil Aeronautics Adminis tration................ $i6i $146 $121 $i6i $146 $i2i Civil Aeronautics Board (subsidies to air carriers)......... 54 8o.... 54 8 National Advisory Committee for Aeronautics.. 78 91 77 78 91 77 Promotion of merchant marine: $104 73 58 I 02 Maritime Administration. Inland Waterways Corporation................ Provision of navigation aids and facilities: 358 262 156 235 i96 107 12 (1)..... -2 -I........ Coast Guard..............230 236 190 230 236 190 Corps of Engineers: Present programs...... 113 102 Io6 113 102 Io6 Proposed legislation (St. Lawrence Seaway).............. 6.......... 6 Panama Canal Company.. I o6 102 99 -I o -2 - I Provision of highways: Bureau of Public Roads: Present programs......... 550 592 582 550 592 582 Proposed legislation.................................. Alaska roads and other... 22 20 1 7 22 20 17 Postal service: Present program.......... 2, 775 2, 775 2, 775 659 440 330 Proposed increase in postal rates.......................................... -240 Regulation of transportation. 1 7 i6 i 6 I 7 I6 i6 Other services to transporta 1 03 1 05........ I 0 598 I3 329 -240 i6 tion.................... Regulation of communication.................... 45 42 45 15 -4~ 21 22 7 7 7 7 7 7 8 Total................. 4,474 4,446 4,277 2,077 1,856 1,418 2 1,482 1 Less than 5oo00,000ooo dollars. 2 Compares with new obligational authority of 1,925 million dollars in 1953 and 1,756 million dollars in 1954. 172

Page  173 Dwight D. Eisenhower, 1954 q I4 and direct provision of subsidies to airmail carriers. While need for some aid continues, the increasing maturity of this industry requires thorough reevaluation of the promotional responsibilities of the Federal Government. At my request, the Air Coordinating Committee is now undertaking a comprehensive review of our aviation policy. With growing maturity, the airline and aircraft manufacturing industries should assume increased responsibility for air safety. Improved procedures of traffic control, elimination of older-type facilities, and curtailment of less essential services should permit an expanded volume of air traffic to be handled safely with reduced Federal expenditures for operating programs. Expenditures for construction programs are likewise declining. As a result of these developments, expenditures of the Civil Aeronautics Administration can be reduced and we can still fulfill the basic Federal responsibilities for providing air-navigation aids, traffic control, and safety services. Budget expenditures in the fiscal year I955 are estimated to be 25 million dollars less than in I954, and 40 million dollars less than in I953. I am recommending appropriations for new airways facilities amounting to 5 million dollars, which will permit further progress on the modern very high frequency system of navigation aids and certain other improvements. Pending completion of current studies, no provision is made in the budget for additional appropriations for grants to State and local governmental units for airport construction. In addition, the time has come when consideration should be given to requiring the users of the airways facilities to share the costs of providing this service. Reorganization Plan No. 10 of 1953, transferring the subsidy portion of airmail payments from the Postmaster General to the Civil Aeronautics Board, makes it possible for the first time for Congress to consider this major aid to aviation as a separate budget item. For both 1954 and I955, these subsidy payments are estimated at approximately 80 million dollars, based primarily on existing route patterns and mail rates. The subsidy expenditures were included in the Post Office Department through September I953. The separation of compensatory mail payments, which remain in the Post Office, from subsidy payments is a necessary first step toward a more effective review of expenditures for civil aviation as well as for the postal service. I73

Page  174 (I I 4 Public Papers of the Presidents The scientific research in aeronautics conducted by the National Advisory Committee for Aeronautics will continue in the fiscal year I955 to be devoted almost entirely to support of the military programs for the development of new and improved aircraft, guided missiles, and propulsion systems. The budget provides for a strong continuing program in aeronautical research and for initial operation of the three new large supersonic wind tunnels now under construction. Nevertheless, expenditures will be I4 million dollars less than in the fiscal year I954 because of the sharp decrease in construction expenditures as projects are completed. The superior performance of our jet aircraft in Korea and the even better performance of newer types now in production has been possible because of the basic research and wind-tunnel testing done in previous years. Much of the work will also contribute eventually to improving the performance, safety, and comfort of civil aircraft. Future possibilities are hinted by the recent performance of our research airplanes, one of which attained a speed of over i,6oo miles per hour-two and one-half times the speed of sound. Merchant marine.-Federal aid to the merchant marine consists primarily of operating and construction subsidies to offset the differences between American and foreign costs. This program is designed to promote a healthy merchant marine as a nucleus capable of rapid expansion to meet national-defense needs. The sharp reduction in expenditures will result almost entirely from virtual completion of construction of the 35 Mariner-class vessels authorized in 195 1. Expenditures for operating subsidies have been rising steadily, and in I 955 will account for 85 of the I07 million dollars in net expenditures for maritime programs. These increases reflect not only faster payment of earlier obligations but also higher levels of subsidy resulting from the increased operating costs in recent years. The size and rising trend of expenditures for these subsidies make it essential to consider legislative changes to provide for more effective budgetary control consistent with the basic objectives of the maritime program. Operating programs of the Maritime Administration show a downward trend. By the end of the fiscal year 1955 the emergency operation of Government-owned cargo vessels will be reduced to about 47, compared to a high of 538 in I952. Ships withdrawn from operation are being maintained in the national-defense reserve fleet to meet future emergency needs. '74

Page  175 Dwight D. Eisenhower, 1954 The physical assets of the Inland Waterways Corporation were sold as of July I, I953, in accordance with this administration's policy of removing the Federal Government from an activity which is appropriately private. The terms of sale fully protect the public interest in the continuance of the common-carrier barge service along the Mississippi and Warrior Rivers. Navigation aids and facilities.-The expanded search-and-rescue facilities of the Coast Guard established in support of Department of Defense activities are being curtailed. Moreover, the fact that our transoceanic civil aviation no longer has a requirement for ocean weather stations has made it possible to reduce the number of these stations to those required by the Department of Defense, which in the future will finance them. These and other realinements will permit Coast Guard financed expenditures to be reduced from 236 million dollars in fiscal I954 to i90 million dollars in fiscal I 95 5 The Corps of Engineers will carry forward at minimum levels the maintenance work required for continued operation of river and harbor projects. Construction will also continue in I955 at economic rates on I 3 channel, harbor, or lock and dam projects, including one project to be initiated by a proposed 1954 supplemental appropriation. Seven other projects will be initiated and 2 deferred projects resumed in I 955. These projects have been selected on the basis of assuring the expeditious movement of traffic in existing harbors or waterways serving important requirements of commerce or national security. Emphasis has been given to small- or intermediate-sized projects for which detailed engineering plans have been completed. Not only do the benefits of these projects exceed their costs, but also, except for four high-priority projects of national interest, local beneficiaries will make a reasonable financial contribution. In my State of the Union Message I again strongly recommended enactment of legislation to create a Government corporation to work, along with Canada, on the construction and operation of the proposed St. Lawrence Seaway. This proposal, now before the Congress, represents one part of a broad development of the great potential of the St. Lawrence River for electric power and for navigation. The power features of the International Rapids section are expected to be constructed in part by the Province of Ontario and in part by the State of New York. The seaway legislation would permit the Federal Government, in cooperation with I75

Page  176 ( I4 Public Papers of the Presidents Canada, to build the remaining navigation facilities needed for oceangoing vessels to reach the Great Lakes. The total amount to be invested by the United States in the seaway is now estimated at I o5 million dollars, with first-year expenditures of 6 million dollars. As I have previously indicated, not only would the seaway make a major contribution to national security, but over a period of years the tolls received by the United States from the prospective commercial use should permit the Federal investment to be fully repaid. Joint participation with Canada in this undertaking will assure that all legitimate American interests are taken into account in the construction and operation of this vital transportation link. Highways.-Expenditures under the Federal-aid highway program of grants to States for highway construction have been rising during the past year, and will continue to rise in the fiscal year I955 under commitments made pursuant to the Highway Act of I952. The 1955 expenditures will be the highest in history. Emphasis in the selection of new projects will be given to the national system of interstate highways, which comprises the most important routes for interstate commerce and national defense. Of the 555 million dollars of estimated expenditures under the Federal-aid program in the fiscal year I955, about 150 million dollars will be spent for projects in the interstate system. Other construction programs of the Bureau of Public Roads will involve expenditures of 27 million dollars, mainly for direct construction of forest highways and defense access roads. We should give increased attention to eliminating the existing inadequacies of the national system of interstate highways. Pending development and review of detailed proposals for extension of the Federal-aid highway program, I am including under proposed legislation the 575 -million-dollar level of the existing authorization. Similarly, I am including the prevailing annual rate of 22.5 million dollars for the foresthighway program. No appreciable expenditures will be made under the proposed authorizations in the fiscal year I955. Postal service.-Measured both in dollars and in employees, the postal service is big business. But, in its management, the modern methods which have so greatly increased the efficiency of private business have too often been ignored. Last February, I announced "a program directed at improving service, while at the same time reducing costs and decreasing deficits." Progress I76

Page  177 Dwight D. Eisenhower, 1954 qI I4 is being made toward achieving these objectives and will continue. First, we are speeding the delivery of mail by many new steps without significant change in costs of handling. Later window hours, later pickups, changes in transportation patterns and schedules, experiments in carrying first-class mail by air, and many other projects have been made effective or are now being tested. The results will become increasingly apparent in the next year. Second, to obtain a clear-cut measure of the cost of operating the postal service, the payment of airline subsidies has been transferred by reorganization plan to the Civil Aeronautics Board, and legislation enacted to require Government agencies and the Congress to reimburse the Post Office for the cost of handling their mail. Third, we have initiated many economies and are planning others. Reduced mail-handling costs through efficient modern techniques already have resulted in substantial savings. This program is well underway but will take a long time to complete, since the new methods will require employee training and development of new machines. Fourth, the deficit has been further reduced by increases in rates which the Postmaster General could change. Increases in parcel-post rates, foreign-mail rates, and others subject to administrative discretion have in the main put these services on a self-supporting basis. The results of these and other improvements are already visible in the financial operations and outlook. Despite an estimated increase in mail volume of almost 2 billion pieces, gross expenditures of 2,775 million dollars in the fiscal year 1955 will remain unchanged from I954. With higher operating revenues, the deficit under existing postal rates will continue to decline: Million 1953 (actual) ------------------------------------------ $659 I954 (estimated) --------------------------------------- 440 1955 (estimated) --------------------------------------- 330 No business, public or private, can prosper unless its management is free to use the best available methods of operation and to set prices adequate to cover the costs of an efficient operation. Legislation is already before the Congress to authorize the Post Office Department to acquire needed modern postal facilities, through long-term leases with title acquired at the end of the term. Other legislation is required to correct archaic administrative and personnel practices, and to enable expanded use of more modem transportation methods. I77

Page  178 Public Papers of the Presidents Most important, prompt and favorable action by the Congress is needed to increase postal rates. I am recommending increases in rates sufficient to yield as a minimum an additional 240 million dollars in revenues in the fiscal year 1955. These revenues would reduce the 1955 postal deficit to 90 million dollars. Adequate rates, together with further major economies in postal operations, are expected to put the postal business on a self-supporting basis. This will continue to be our policy. Regulation.-Three regulatory commissions carry out the Government's responsibility to protect the public interest in reasonable rates and adequate, safe transportation and communication: Interstate Commerce Commission, Federal Communications Commission, and Civil Aeronautics Board. Although their duties have substantially increased in recent years, anticipated improvements in management and procedures make it unnecessary to request any significant appropriation increases. For example, the centralization of administrative responsibility and the reorganization of existing activities in the Interstate Commerce Commission should make possible more effective use of available funds. By the end of the fiscal year I954, the Federal Communications Commission should be substantially current in handling applications for television stations, so that the funds required for its activities, except for a new program of monitoring frequency usage, will be smaller in the fiscal year I955 than in 1954. Receipts of public enterprise funds.-Two-thirds of the gross expenditures of 4,277 million dollars for transportation and communication programs in the fiscal year I955 will be financed from receipts of public enterprise funds. Postal receipts account for the bulk of these revenues. Substantial receipts are also anticipated from tolls and other revenues of the Panama Canal Company, and from vessel operations of the Maritime Administration. FINANCE, COMMERCE, AND INDUSTRY Within the limits set by requirements of national defense and the needs of the national economy, we are steadily reducing direct banking and business operations of the Federal Government. For example, the Reconstruction Finance Corporation is being liquidated, and the Government's synthetic rubber plants are being offered for sale. At the same time, the programs of the Department of Commerce to promote trade and industry are being strengthened and the Small Business Administration has 178

Page  179 Dwight D. Eisenhower, 1954 FINANCE, COMMERCE, AND INDUSTRY [Fiscal years. In millions] (l I4 Gross expenditures '954 I955 1953 esti- estz Net expenditures Recom— mended new I954 1955 obligational 1953 esti- esti- authority actual mated mated for I955 Program or agency actual Promotion of defense production: Expansion of defense production............... $390 Reconstruction Finance Corporation............ 516 Other.................. 21 Business loans and guarantees: Reconstruction Finance Corporation (Treasury): Loans................. 28 Other................ 18 Small Business Administration....................... Promotion or regulation of trade and industry: Department of Commerce. 17 Other................... 9 Promotion or regulation of financial institutions...... 6 Total................. I, 205 1 Compares with new obligational million dollars in 1954. mated mated $562 $546 $89 $381 $308 349 270 -98 -233 27 i6 84 -5 -65 -4 $4 44 122 IO 7 -95 -I2I........ 5 -29 97 -9........ 13 3I I 12 25........ 17 22 17 17 22 22 10 II 9 IO I1 II 7 I, 151 6 9I7 -3 76 -20 i64 5 162 5 1 42 authority of 134 million dollars in 1953 and 97 been established to meet the special needs of small business. Regulatory agencies are simplifying their procedures and putting greater stress on cooperation rather than compulsion, without reducing protection to the public. Gross expenditures for finance, commerce, and industry programs are expected to be 917 million dollars in the fiscal year 1955, a reduction of 234 million dollars from I954. About 60 percent of these expenditures are for financial assistance provided under the Defense Production Act. Another 30 percent are for the production programs administered by the Reconstruction Finance Corporation-primarily rubber and tin. Anticipated receipts of these enterprises as a group will decline about as much as their expenditures. Accordingly net expenditures of 162 million dollars in 1955 will be about the same as in 1954. I79

Page  180 e I4 Public Papers of the Presidents Expansion of defense production.-The Defense Production Act authorizes extensive financial assistance to assure expansion of productive capacity and of the materials supply necessary for our defense. With the help of purchase commitments, loans, and advances already made, much of the needed expansion is now under way. As a result, the aluminum productive capacity of the United States has doubled since I950 and supplies of machine tools, titanium, copper, nickel, and other critical items have also substantially increased. These programs are financed under the borrowing authority of 2.I billion dollars provided in the Defense Production Act. Gross expenditures in the fiscal year 1955 are estimated at 546 million dollars. Of this amount 296 million dollars will be spent for purchases of materials and i65 million dollars for loans and advances to producers. Most of these expenditures arise from commitments already outstanding. Since a large part of the materials to be acquired under this authority will be sold to the military stockpile of strategic and critical materials to meet its objectives, this program is intimately related to the stockpiling program discussed in the national security section of this message. Receipts from these sales and from sales to private industry, together with repayments of loans and advances, are estimated at 238 million dollars in I955, reducing net expenditures to 308 million dollars. Reconstruction Finance Corporation-production programs.-Expenditures and receipts of the rubber, tin, and abaca fiber programs currently administered by the Reconstruction Finance Corporation will continue to decline sharply in I955, primarily as a result of reduced operations anticipated in the tin program. By the end of the present fiscal year, the Government will have completed purchases of tin for the national stockpile. World supplies are already adequate to meet current requirements. As a result, there may no longer be a need for continued operation of the Government tin smelter in I955. Pending outcome of international negotiations, the budget assumes withdrawal of the Government smelter from operations at the end of the fiscal year I 954. During the fiscal years I954 and I955, annual production of synthetic rubber is estimated at about 6oo,ooo tons- a reduction from the 7I 2,000 tons produced in I953. Present experience indicates that this level of production will meet all of the anticipated national needs for synthetic i8o

Page  181 Dwight D. Eisenhower, 1954 q I4 rubber. Although the Rubber Facilities Disposal Act authorizes sale of Government plants to private ownership before the end of the fiscal year I955, plans are not yet far enough advanced to include estimated receipts from such disposal in the I 955 budget. The production programs will be transferred to another agency before June 30, I954, as provided in the Reconstruction Finance Corporation Liquidation Act. Business loans and guarantees.-The regular business loan program of the Reconstruction Finance Corporation is now in liquidation as a result of legislation enacted last year on the recommendation of this administration. The Treasury Department will administer the liquidation after June 30, I954. We plan to sell a major part of the Corporation's loans to private financial institutions. To meet commitments previously made, some expenditures will continue, but repayments and sales of loans will result in estimated net receipts of i 2 i million dollars in I 955. A new program of loans to small businesses has recently been established in the Small Business Administration. The I955 budget assumes that about 350 loans will be authorized in the fiscal year I954, and about 700 in 1955. This would almost exhaust the available appropriation of 55 million dollars by the end of i955. Loans will be made where private credit on reasonable terms is unavailable, and, whenever possible, they will be made jointly with private banks. The Small Business Administration also assists small concerns in obtaining a fair share of Government contracts, and provides them with technical and financial advice. Department of Commerce.-In accordance with this administration's declared policy, most emergency controls over business have been removed. The business programs of the Department of Commerce have been reorganized to provide a simpler and more effective basis for carrying on both regular business services and continuing responsibilities under the Defense Production Act. The Business and Defense Services Administration provides general services to business, assists in mobilization preparedness, and administers relevant current defense activities. The Bureau of Foreign Commerce assists in promoting international trade, primarily by providing American business with information on opportunities to buy and sell abroad. The Office of Business Economics provides data on the American economy and analyses of economic and business trends for a wide range of business and Government purposes. I am recommending i8i 51986-6O415

Page  182 Public Papers of the Presidents small increases in the appropriations for these programs so that the Department can adequately carry out its responsibilities to foster and promote industry and commerce. LABOR AND MANPOWER My budget recommendations for the labor and manpower programs of the Federal Government are designed to help the Nation's productive system function smoothly and efficiently, by providing economic safeguards for workers, by helping bring together jobseekers and jobs, and by helping to recruit the working forces for defense and other industries. Workers will continue to be given protection against substandard wages and working conditions and against income losses due to unemployment. Orderly labor relations will be fostered, and the amicable settlement of disputes will be assisted by mediation. Including proposed legislation, budget expenditures for labor and manpower programs are estimated at 28I million dollars during the fiscal year I955, an increase of i 6 million dollars from the current fiscal year. Ap proximately three-fourths of total budget expenditures for these programs is for administering the job placement and unemployment compensation services. Although many of our workers benefit from the existing Federal-State unemployment compensation system, the present Federal law does not include employees of firms with fewer than eight persons nor does it include Federal civilian employees. I recommend prompt extension of the system to these workers. Seventeen States already provide coverage of most firms with one or more employees, and most other States have legislation which will permit immediate coverage when the Congress acts. Amendments to State laws to achieve full coverage will be needed in only a dozen States. This preparedness on the part of the great majority of States will permit rapid extension of this valuable protection after the Federal law is amended. Additional revenues will more than offset the administrative costs resulting from such extension. An estimate of the benefit costs for Federal employees is included under general government. Placement and unemployment compensation administration.-Gross expenditures in the fiscal year I955 for administering the Federal-State placement and unemployment compensation services under present law are estimated at i92 million dollars, 7 million dollars below the current year. A decrease of about 30 million dollars will result from a change in 182

Page  183 Dwight D. Eisenhower, 1954 LABOR AND MANPOWER [Fiscal years. In millions] q I4 RecomExpenditures mended new obligational I 953 I954 1955 authority actual estimated estimated for I955 Program or agency Gross expenditures: Placement and unemployment compensation administration: Department of Labor: Present program................ Proposed legislation to broaden unemployment insurance: Federal civilian personnel....... Other workers................ Labor standards and training: Department of Labor.............. Mine safety (Department of the Interior and other)............... Military manpower selection: Selective Service System and National Security Training Commission............. Labor relations.................... Labor information, statistics, and general administration: Department of Labor......................... Defense production activities: Department of Labor................. T otal............................ Deduct applicable receipts: Farm labor supply revolving fund.............. $2I2 $I99 $192 $223 2 20 2 20 I3 I2 I2 12 4 5 5 5 33 30 31 32 I3 I4 I3 I3 7 7 7 7 2 284 3 (1) 267 2........ 282......... 2 314 I......... Net budget expenditures.................... 281 265 281......... 1 Less than 500,ooo dollars. 2 Compares with new obligational authority of 282 million dollars in 1953 and 267 million dollars in I954. financial arrangements, by which advance payments to each State before the opening of each fiscal year will be reduced from an amount covering three months' operations to an amount for one month. Part of this reduction will be offset, however, by a higher estimated rate of expenditures for this program resulting from increases in salaries provided by State laws to employees who administer the services, some rise in the expected number of unemployment compensation claimants, and provision for 183

Page  184 q I4 Public Papers of the Presidents weekly filing of claims and weekly payment of benefits. The weekly claims system, replacing the biweekly method currently in use in most States, will provide more satisfactory service to the claimants and, by permitting more frequent contact, should reduce the possibilities of fraudulent or erroneous payments. These factors may make necessary a request for a supplemental appropriation for the current fiscal year. This administration has already recommended enactment of legislation to transfer annually to a special account in the unemployment trust fund, an amount equal to the difference between the receipts of the Federal unemployment tax and the administrative costs of operating our joint Federal-State unemployment security program. The initial transfer, biased on receipts and expenditures in the fiscal year I955, would be made at the beginning of the fiscal year I 956. My recommendations in this budget provide for continued operation of the system for recruiting qualified workers from Mexico for seasonal employment on farms in the United States. These workers are needed to supplement our domestic farm-labor supply. The I954 appropriation for this recruitment program was based on legislation which was to have expired on December 3I, 1953. This authority has now been extended until December 3', I955, and funds are included in the budget to pay for operations during the rest of the fiscal year I 954, as well as in the fiscal year I955. The railroad unemployment insurance taxes and expenditures which were previously included in budget accounts are now entirely included in trust accounts. Labor standards and training.-Budget expenditures for the minimumwage and maximum-hour regulatory programs in the fiscal year 1955 are estimated at about the I 954 level. The social and economic plight of migratory farmworkers has been studied repeatedly. Up to now, little positive action to better these conditions has been taken by the Federal Government. This budget includes a recommended appropriation of iOO thousand dollars to enable the Department of Labor to provide leadership in establishing a cooperative Federal-State program in the fiscal year I955. Military manpower selection.-Although a reduction in military personnel is planned, calls by the Department of Defense in I955 to replace men drafted in I953 will require an increase of 676 thousand dollars in estimated expenditures of the Selective Service System. This budget pro184

Page  185 Dwight D. Eisenhower, T954 vides also for continuing a small staff for the National Security Training Commission. Labor relations.-Budget expenditures of I3 million dollars in the fiscal year I955 are estimated for the independent labor relations agencies-the National Labor Relations Board and the mediation services. Emphasis will be placed on providing improved services to employers and employees of industries and establishments strategically situated in interstate commerce. Unemployment trust fund.-Under present law, unemployment compensation benefit payments in the fiscal year I 955 are expected to be somewhat higher than in I954 because of an increase in claims of short duration and liberalization of benefits by States. Receipts in I955 are estimated somewhat lower than in the current fiscal year. The legislation I am recommending to broaden unemployment compensation coverage will increase both the receipts and the benefit payments. Trust-fund transactions are not included in the totals of budget receipts and expenditures. UNEMPLOYMENT TRUST FUND [Fiscal years. In millions] I 953 1954 1955 Item actual estimated estimated Receipts: Deposits by States and railroad unemployment taxes: Present programs........................... $1, 39 I $I, 344 $1, 329 Proposed legislation extending coverage.................................. 45 Interest......................................... 203 222 2i6 Payments: State and railroad withdrawals for benefits: Present programs............................ -I, 004 -1,095 -1,1 95 Proposed legislation extending coverage.................................-6o Net accumulation, including proposed legislation........................................ 590 471 435 Balance in fund at close of year...................... 9, 244 9, 715 I 0, 150 GENERAL GOVERNMENT Net expenditures for general government functions are estimated at I) I6o million dollars for the fiscal year I 955, compared with I, I 75 million dollars in the fiscal year I 954. These expenditures are chiefly for the traditional Government activities not specifically classified elsewhere-making and enforcing the laws, collection of revenues, management of the public debt, and custody and management of public buildings and records. 185

Page  186 Public Papers of the Presidents GENERAL GOVERNMENT [Fiscal years. In millions] RecomExpenditures mended new - -- obligational I953 I954 1955 authority actual estimated estimated for 1955 Program or agency Gross expenditures: Legislative functions.................. Judicial function.................... Executive direction................. Federal financial management: Tax collection.................... Customs collection, debt management, and other...................... Other central services: Central property and records management......................... Civil Service Commission.......... Other........................... Unemployment compensation for Federal civilian employees (proposed legislation)..................... Retirement for Federal civilian employees......................... Protective services and alien control: Federal Bureau of Investigation..... Immigration and Naturalization Service........................... Other.......................... Territories, possessions, and District of Columbia: District of Columbia: Present programs................ Proposed legislation.............. Territories and possessions.......... Other general government: Payment of claims and relief acts.... Weather Bureau.................. Other.......................... Total.......................... Deduct applicable receipts............ Net budget expenditures............... $48 27 II $46 29 '3 $47 30 11 269 277 265 I73 I77 i66 $46 30 I1 266 I65 I55 16 23 I79 21 I4 158 i6 i9 156 I5 21........... 25 25 324 34 32 32 71 77 78 78 40 4I 39 39 22 29 22 21 12 48 I37 27 21 I, 444 5 I6 47 I49 26 24 I, 178 3 20 I5 46 I4 '7 42 I35 25 i6 I, 164 4 25 I4 1 I, OI9......... I,439 I, I75 I, 6o........ 'Compares with new obligational authority of 1,337 million dollars in 1953 and I,033 million dollars in I954. I86

Page  187 Dwight D. Eisenhower, 1954 Federal financial management.-During the past year the Internal Revenue Service has improved greatly the administration of Federal revenue laws. Further economies will be made by cutting overhead expenses. These savings of several million dollars will be used to strengthen the field audit staff and to obtain more effective collection and enforcement. Auditing of tax returns and settlements are being speeded up. Tax collection has been decentralized so that most decisions in individual cases can now be made in district offices near the taxpayer. The reduced staff in Washington is concerned primarily with developing overall policies and assuring uniformity in administration throughout the country. Nevertheless, serious problems remain. For example, despite the improvement in auditing, the backlog of unaudited returns and uncollected accounts has increased for several years. Strenuous efforts are being made to reverse this trend, both to increase collections and to permit a more prompt determination of taxpayers' liabilities. Further reduction in expenditures by the Bureau of the Public Debt will be achieved in the fiscal year 1955 by revisions in the savings bond promotion program to place greater emphasis on the sale of larger denomination bonds, elimination of uneconomic sales outlets, and other economies. A large volume of savings bonds is now reaching maturity, but redemptions of these matured bonds are relatively low, since most owners are taking advantage of their right to continue to hold them at 3 percent interest. Central property and records management.-Substantial reductions have been made in the expenditures of the General Services Administration for management of Government property and records. The fiscal year 1955 estimate of 156 million dollars is 23 million dollars below actual 1953 expenditures and 2 million dollars below the revised I954 estimate. These savings primarily result from material reductions in building space rented for Government use, made possible in part by reductions in the scope of Government operations and accomplished through an aggressive and critical examination of requirements. In addition, numerous savings are being achieved by the General Services Administration which reduce the budget requirements of other agencies throughout the Government. Real property requirements and holdings are being reexamined and property determined to be surplus is being disposed of as rapidly as possible. Purchases of new materials have decreased as a result of elimination of I87

Page  188 Public Papers of the Presidents unnecessary inventories by reduction in the number of separate types of items carried in inventories and by better utilization of property already on hand. Significant progress also is being made in controlling the volume of records, in their economical storage, and, when they are no longer essential, in accelerating their disposal. Civil Service Commission.-As part of the program for strengthening the merit system of the Federal civil service, the budget provides funds to improve the standards used for the recruitment and transfer of personnel and to further the career development of Government employees. The Civil Service Commission expenditures as a whole, however, will decrease with improved management practices and with a decline in prospective workloads for the examination and placement of applicants and for the investigation of persons employed or seeking employment in the Federal service. I am recommending legislation to strengthen further the merit system and to provide conditions of employment for Federal personnel more nearly comparable to those in private enterprise. Certain legal restrictions initiated at the beginning of the present national emergency on the appointment and promotion of Federal workers should be removed. The present statutory limits on the number of high-level executive and scientific positions should be raised. Government agencies should be permitted to select employees from among the top five rather than the top three on Federal civil-service registers. Existing inequities in overtime-pay practices should be corrected. Building and maintenance workers should be added to the categories of employees paid at rates prevailing locally in private employment for similar occupations. The incentive-awards program should be consolidated and improved in order to eliminate costly administration and to increase employee interest in greater efficiency and economy. The cost of these changes in the main can be absorbed within the appropriations recommended for the agencies concerned. Unemployment compensation for Federal workers.-I strongly recommend extension of the unemployment compensation system to give Federal employees the same benefits as are now provided to most workers in private employment. This will require an estimated 25 million dollars in expenditures for benefit payments in the fiscal year I955. This program could be administered under contractual arrangements made through the Department of Labor with existing State unemployment compensation systems. I88

Page  189 Dwight D. Eisenhower, I954 Retirement for Federal civilian personnel.-An appropriation of 30 million dollars is recommended to permit the continued payment to retired Federal workers of temporary cost-of-living increases as authorized by the Congress in I952. The budget also includes 2 million dollars to pay annuities under special laws. The civil-service retirement system is financed jointly by employee contributions and appropriations by the Government. The Congress, at its last session, however, did not appropriate for the Government's payments to the fund. The resumption of these payments is not included in this budget. Recommendations for financing this system as well as other retirement programs for Federal personnel will be determined after the Committee on Retirement Policy for Federal Personnel completes its study and reports to the Congress on or before June 30, 1954. Protective services and alien control.-The Federal Bureau of Investigation, as the investigative arm of the Department of Justice, obtains evidence for use in legal actions involving violations of Federal law. The crime rate throughout the country has put an increasing burden on the Bureau. The Bureau also has primary responsibility for coordinating investigations in the executive branch necessary for the Nation's internal security. Such investigations continue at peak levels. It is essential, therefore, that the Bureau staff be adequate to discharge these responsibilities. District of Columbia.-I strongly recommend enactment of legislation to finance the expanded public works construction urgently needed in the National Capital. This legislation would authorize an increase of 9 million dollars in the annual Federal payment to the general fund of the District of Columbia, and an additional i million dollars for full payment for all water and related services. It would authorize I07 million dollars of additional interest-bearing loans to the District over the next decade, of which an estimated 5 million dollars would be spent in the fiscal year I955. These expenditures by the Federal Government would be accompanied by substantial increases in taxes paid by District taxpayers. This legislation would, for the first time in recent years, place Federal payments to the District government on a level commensurate with the Federal Government's position in and its demands upon the District. It would permit the District to start a long-term program of public works necessary to make the Capital City worthy of our great Nation. 51986-60 16 189

Page  190 (e 14 Public Papers of the Presidents Territories and possessions.-The Federal Government also has special responsibilities for administering the various Territories and possessions, including the Canal Zone and the Trust Territory of the Pacific Islands. Included in this budget are certain necessary increases in expenditures for continuing the civilian administration of the Trust Territory, except those islands in the northern Marianas returned to the jurisdiction of the Navy. I recommend that the Congress enact at an early date legislation establishing the basic form of government for the Trust Territory to replace the present temporary arrangements. Intergovernmental relations.-A Commission on Intergovernmental Relations is now studying the proper role of the Federal Government in relation to the State and local governments. It is giving particular attention to fiscal relationships, such as Federal grants-in-aid, tax sources, and intergovernmental tax immunities, and will report shortly on certain aspects of its assignment. Claims and relief acts.-The payment of certified claims makes up the total expenditure figure of 135 million dollars estimated for claims, judgments, and private relief acts in the fiscal year 1955. Most of these payments are for claims resulting from activities of the Department of Defense. The apparent decline of I 4 million dollars in expenditures in the fiscal year 1955 is due to the usual omission in the budget year of any specific estimate for other claims, judgments, and relief acts. Receipts of public enterprise funds.-The operations of the Virgin Islands Corporation account for most of the 4 million dollars in receipts of public enterprise funds. INTEREST Primarily as a result of the large increase in the public debt during World War II, interest payments now account for about I o percent of Federal expenditures. Interest payments are fixed primarily by the size of the public debt and by interest rates on debt already outstanding. Interest on the public debt.-Interest payments on the public debt in the fiscal year I955 are estimated at 6,8oo million dollars. This is an increase of 275 million dollars over estimated expenditures for the current fiscal year, and 297 million dollars above actual expenditures in I953. The increase in I 955 reflects both the higher average interest rates and the larger public debt. The average rate on the interest-bearing public debt rose from 2.33 percent on June 30, 1952, to 2.4I percent on De I90

Page  191 Dwight D. Eisenhower, I954 (I I 4 INTEREST [Fiscal years. In millions] RecomBudget expenditures (net) mended new obligational 1953 I 954 I 955 authority Item actual estimated estimated for I955 Interest on public debt.................. $6, 503 $6, 525 $6, 8oo $6, 8oo Interest on refunds of receipts................. 75 70 70 70 Interest on uninvested trust deposits..... 5 5 5 5 Total............................ 6, 583 6, 6oo 6, 875 1 6, 875 'Compares with new obligational authority of 6,583 million dollars in I953 and 6,6oo million dollars in I954. cember 3I, I953, primarily because of the refinancing of maturing obligations at the higher market rates prevailing. As the result of the deficit financing during the same period the public debt has increased from 259 billion dollars to 275 billion dollars (including about one-half billion dollars not subject to the statutory debt limitation). The budget of the United States is the financial expression of the administration's program for the coming fiscal year. An understanding of its scope and content is a high challenge to every citizen. When I took office a year ago, I promised the Congress and the people that this administration would seek to chart a fiscal and economic policy which would reduce the planned deficits and bring the budget into balance. I warned that this would not be easy. There still are heavy national security requirements. Substantial expenditures are by law relatively nondiscretionary. The far-reaching activities of the Federal Government are extremely complex. Despite these inherent difficulties, we have made great progress. Federal expenditures have been cut substantially, tax reductions have been made justifiable, and the budgetary deficit has been sharply reduced. We have, furthermore, made appropriate provision for our national security and for our international obligations and we have been able to propose certain increases in Federal expenditures to advance our domestic well-being and to foster economic growth. I firmly believe, therefore, that this budget represents a plan of govern I9I

Page  192 41 I 4 Public Papers of the Presidents ment which will not only protect our way of life but will also strengthen our economic base and enhance the welfare of all our people. DWIGHT D. EISENHOWER NOTE: As printed, references to special analyses appearing in the budget document have been deleted. 15 14 Memorandum Concerning Purchase of Savings Bonds by Government Employees. January 22, I954 Memorandum to the Heads of Departments and Agencies: The nation's economic welfare requires the widest possible distribution of the national debt through the continued sale of United States Savings Bonds to the people. To this end it is important that Government employees continue their leadership in the purchase of Savings Bonds through the Pay Roll Savings Plan. The Interdepartmental Savings Bond Committee established by Executive Order No. 9953 of April 23, I948, provides a vehicle for the effective promotion of the Pay Roll Savings Plan. This Committee is composed of the heads of the several executive departments and agencies or their designated alternates. I therefore request that each of you give the fullest cooperation to the Chairman, Mr. Edward F. Bartelt, Fiscal Assistant Secretary of the Treasury, in the work of the Committee. Any of you who will be unable to work personally with the Committee should immediately designate an alternate from among the senior officials of your department or agency. DWIGHT D. EISENHOWER i 6 e1 Memorandum Transmitting Report of the Commission on Foreign Economic Policy. January!23, 1954 WITH THIS MEMORANDUM, I am transmitting a copy of the Report to the President and the Congress by the Commission on Foreign 192

Page  193 Dwight D. Eisenhower, 1954 Economic Policy. The Commission, as you know, was set up, at my request, by the Congress to study and report on the over-all foreign economic policy of this country. I am anxious that Executive Departments and Agencies with responsibilities in the area of foreign economic policy proceed immediately with an intensive review of this report as a first step in the formulation of a unified Administration program to be submitted to the Congress for its attention during the current session. I am confident that, on the basis of the Report, it will be possible to develop a program that will advance the best interests both of the United States and of the free world. DWIGHT D. EISENHOWER NOTE: A copy of this memorandum was suant to the act approved August 7, 1953 sent to the heads of all departments and (67 Stat. 472). The Commission's reagencies having responsibility for foreign port (94 pp.), transmitted to the Presieconomic policy. dent and the Congress on January 23, The Commission on Foreign Economic 1954, together with a minority report (20 Policy, of which Clarence B. Randall pp.), transmitted January 30, were pubserved as Chairman, was established pur- lished by the Government Printing Office (January I954). 17 ti4 Special Message to the Congress on Housing. January 25, I954 To the Congress of the United States: I submit herewith measures designed to promote the efforts of our people to acquire good homes, and to assist our communities to develop wholesome neighborhoods in which American families may live and prosper. The development of conditions under which every American family can obtain good housing is a major objective of national policy. It is important for two reasons. First, good housing in good neighborhoods is necessary for good citizenship and good health among our people. Second, a high level of housing construction and vigorous community development are essential to the economic and social well being of our country. It is, therefore, properly a concern of this government to insure that opportunities are provided every American family to acquire a good home. '93

Page  194 Public Papers of the Presidents In working toward this goal, we must not be complacent. The Federal government must provide aggressive and positive leadership. At the same time actions and programs must be avoided that would make our citizens increasingly dependent upon the Federal government to supply their housing needs. We believe that needed progress can best be made by full and effective utilization of our competitive economy with its vast resources for building and financing homes for our people. The building of new homes provides only a partial solution to the housing problem. The Nation has tremendous assets in its 37,000,000 existing non-farm homes. The fact that 20,000,ooo of these are owneroccupied demonstrates the continuing efforts of our people to have their own homes, where they can raise their families in self-respect and in good surroundings. But i9,000,000 of our existing non-farm homes are more than 30 years old. We must encourage the conservation and improvement of our existing supply of homes for the important contribution this can make to the raising of national housing standards. Our housing deficiencies continue to be serious. Millions of our people still live in slums. Millions more live in run-down, declining neighborhoods. The national interest demands the elimination of slum conditions and the rehabilitation of declining neighborhoods. Many of our local communities have made good progress in this work and are eager to make further substantial improvements but are hard put to find the needed resources. The knowledge, the skills, the resources and, most important, the will to do this job already exist in the Nation. We have a private homebuilding industry and home-financing institutions that are strong and vigorous. We have a highly skilled labor force. Savings are high. While some of our communities are financially hard-pressed, they are increasingly alert to the need both for improving their existing physical plants and for sound growth and development proportionate to their expanding populations. We have the unlimited resources which grow from the independence, pride and determination of the American citizen. I am convinced that every American family can have a decent home if the builders, lenders, and communities and the local, State and Federal governments, as well as individual citizens, will put their abilities and determination energetically to the task. To help find the best way to meet our national housing needs, I recently appointed an Advisory Committee on Government Housing Policies and '94

Page  195 Dwight D. Eisenhower, 1954 Programs, consisting of leading citizens experienced in the problems of housing, mortgage finance, and community development. Under the Chairmanship of the Housing and Home Finance Administrator, this Committee has made an exhaustive study of existing Federal housing programs. It has also analyzed numerous proposals for the development of a program better adapted to our present housing requirements. The conclusions of this Committee, and the results of our own studies and experience in administering present housing laws, are reflected in the recommendations I am about to propose. Several of these recommendations provide an entirely new approach to the task of meeting our housing needs. I. NEIGHBORHOOD REHABILITATION AND ELIMINATION AND PREVENTION OF SLUMS In order to clear our slums and blighted areas and to improve our communities, we must eliminate the causes of slums and blight. This is essentially a problem for our cities. However, Federal assistance is justified for communities which face up to the problem of neighborhood decay and undertake long-range programs directed to its prevention. The main elements of such programs should include: First. Prevention of the spread of blight into good areas of the community through strict enforcement of housing and neighborhood standards and strict occupancy controls; Second. Rehabilitation of salvable areas, turning them into sound, healthy neighborhoods by replanning, removing congestion, providing parks and playgrounds, reorganizing streets and traffic, and by facilitating physical rehabilitation of deteriorated structures; Third. Clearance and redevelopment of nonsalvable slums. Existing housing programs permit an effective attack on only the third of these essential tasks. A new approach will help our communities to deal effectively with the other two. I, therefore, make the following recommendations: I. Title I of the Housing Act of 1949 should be broadened. It should make available a program of loans and grants for the renovation of salvable areas and for the outright elimination of nonsalvable slums. Under this program, there would be immediately available from existing authorizations approximately $700,000,000 of loan funds and $250,000,000 in capital grant funds. As our communities are enabled by this broadened I95

Page  196 Public Papers of the Presidents authorization to increase the scope and pace of their efforts, I shall request such additional loan and grant authorizations as can be effectively used. 2. The Federal Housing Administration should be authorized to insure private credit used to rehabilitate homes in declining neighborhoods. This new program should be limited to specific areas where the local community has given adequate assurances that it will carry out a workable plan of neighborhood renewal. 3. A program of matching grants to States and metropolitan areas should be established to enable smaller communities and metropolitan area planning agencies to do the planning job which is necessary to arrest the spread of slum conditions. I recommend that the Congress authorize the appropriation of $5,000,000 for this purpose. II. CONSERVATION AND IMPROVEMENT OF EXISTING HOUSING Because of the housing shortages that developed during the depression and war years, recent Federal housing activities have been directed mainly to increasing the production of new homes. But while the high demand for new homes will continue, and while private activity will be encouraged to meet that demand, we must also undertake the long-delayed job of maintaining existing homes in good condition. Millions of our people live in older homes in which they have invested their savings; our people and our economy will greatly benefit if these homes can be kept in good repair and are brought up to modern standards of comfort and convenience. It is not enough, therefore, to rehabilitate homes in obsolete neighborhoods. To encourage the maintenance and improvement of homes wherever located, I recommend the following additional amendments to the National Housing Act: I. The maximum permissible terms authorized for the insurance of loans on existing homes should be made comparable to those available for new housing. This amendment will end the present discriminatory policy which favors the purchasing of new as against existing homes. It should have the important additional advantage of facilitating the trading in of older homes on new home purchases. 2. The maximum loan which can be insured under Title I of the National Housing Act to repair and modernize single-family homes should be increased from $2,500 to $3,ooo and the maximum term should be I96

Page  197 Dwight D. Eisenhower, 1954 q I7 extended from three years to five years. Comparable revisions should be made in loan limitations and terms authorized for the rehabilitation of multiple dwellings. Since the terms of such loans have not changed for fifteen years, these adjustments are obviously needed to help our citizens repair and improve their homes. III. HOUSING FOR LOW-INCOME FAMILIES The continued lack of adequate housing, both new and used, for lowincome families is evidence of past failures in improving the housing conditions of all of our people. Approval of my preceding recommendations will increase the opportunities of many families with low incomes to buy good older homes. But a more direct and more positive approach to this serious problem must be taken by the government. I recommend, therefore, a new and experimental program under which the Federal Housing Administration would be authorized to insure long-term loans of modest amounts, with low initial payment, on both new and existing dwellings, for low-income families. The application of this new authority should be limited to those families who must seek other homes as a result of slum rehabilitation, conservation, and similar activities in the public interest. I recognize, as did the Advisory Committee, that this program represents a challenge to private builders and lenders. In order to assist them in meeting this challenge, a greater proportion of the risk should be underwritten by the Federal Housing Administration than it regularly insures. The successful development of this program will afford a much greater proportion of our lower income families an opportunity to own or rent a suitable home. Until these new programs have been fully tested and by actual performance have shown their success, we should continue at a reasonable level the public housing program authorized by the Housing Act of I949. I recommend, therefore, that the Congress authorize construction, during the next four years, of I40,000 units of new public housing, to be built in annual increments of 35,000 units. Special preference among eligible families should be given to those who must be relocated because of slum clearance, neighborhood rehabilitation, or similar public actions. The continuance of this program will be reviewed before the end of the fouryear period, when adequate evidence exists to determine the success of the other measures I have recommended. In addition to this requested extension of the public housing program, the Housing Administrator will 197

Page  198 Public Papers of the Presidents recommend amendments to correct various defects which experience has revealed in the present public housing program. IV. HOUSING PROBLEMS OF MINORITY GROUP FAMILIES It must be frankly and honestly acknowledged that many members of minority groups, regardless of their income or their economic status, have had the least opportunity of all of our citizens to acquire good homes. Some progress, although far too little, has been made by the Housing Agency in encouraging the production and financing of adequate housing available to members of minority groups. However, the administrative policies governing the operations of the several housing agencies must be, and they will be, materially strengthened and augmented in order to assure equal opportunity for all of our citizens to acquire, within their means, good and well-located homes. We shall take steps to insure that families of minority groups displaced by urban redevelopment operations have a fair opportunity to acquire adequate housing; we shall prevent the dislocation of such families through the misuse of slum clearance programs; and we shall encourage adequate mortgage financing for the construction of new housing for such families on good, well-located sites. V. MODERNIZATION OF NATIONAL HOUSING ACT There are certain deficiencies and numerous obsolete and unnecessary provisions in the National Housing Act. The Housing Administrator will present to the appropriate Committees of the Congress a number of proposals to modernize this basic law. These recommendations will include a scale of mortgage ceilings more realistically related to the increased cost of both single-family and multi-family structures and complementary revisions in mortgage ceilings for cooperative projects. VI. ADJUSTMENT OF PERMISSIBLE TERMS OF GOVERNMENT INSURED OR GUARANTEED MORTGAGES Because inflationary or deflationary pressures can be accentuated or diminished by mortgage credit terms, government operations in connection with the insurance or guarantee of mortgage loans should be judiciously adjusted to prevailing economic conditions. The Congress has already given the President limited authority to adjust from time to time, in the light of economic conditions, the permissible terms on 198

Page  199 Dwight D. Eisenhower, 1954 JI17 government guaranteed and insured mortgages. I urge the Congress to broaden this authority to cover all loans insured by the Federal Housing Administration and guaranteed by the Veterans Administration. Such authority would permit adjustments, within appropriate statutory limits, in maximum interest rates and in loan-to-value ratios and maturities. This action by the Congress would materially strengthen our ability to stabilize economic activity and high levels of production and employment. A fuller discussion of the importance of this recommendation will be included in the Economic Report to be submitted to the Congress on January 28. VII. SECONDARY MORTGAGE MARKET In recent years the Federal National Mortgage Association has functioned as a primary lender rather than as a secondary source of mortgage credit. As a result the Federal government now finds itself with substantial frozen investments in guaranteed and insured mortgages. Because of the terms on which these mortgages were written and the prices at which they were purchased, they are not readily salable in the private market. The following changes should therefore be made: i. The Federal National Mortgage Association should be reorganized to require the users of the facility to invest funds on a basis which would eventually permit the full retirement of government funds from secondary mortgage market operations. The Federal government should be enabled to purchase the initial stock of the reorganized association, but private capital funds supplied by the users of the facility should be built up to speed the retirement of the government's initial investment. 2. The reorganized Federal National Mortgage Association should be given three basic responsibilities: First, it should be authorized to issue its own non-guaranteed debentures on the private market. With the funds so obtained, it can perform a desirable service by buying mortgages at market rates in areas where investment funds are scarce, for resale in areas where there is a surplus of funds. There is need for an organization to carry out this true function of a secondary market. Second, the new Association should be authorized to manage and liquidate present mortgage holdings which are government-owned assets. It should be made clear that such liquidation is to be accomplished in an orderly manner and in such a way as to protect the interests of the individual borrower. Since Treasury funds were used in the acquisition '99

Page  200 ] I7 Public Papers of the Presidents of these assets, all proceeds of this liquidation should be returned to the Treasury. Third, the President should be enabled to authorize the Federal National Mortgage Association to borrow directly from the Treasury for the sole purpose of purchasing certain kinds and types of insured and guaranteed loans when the President determines such action to be necessary in the public interest. For this purpose the borrowing authority of the Association should be limited to a reasonable amount to be made available from the present Treasury borrowing authorization of the Association. Although outright primary support for certain types of loans may be desirable in the public interest from time to time, this support should be clearly identified as the direct use of Treasury funds for mortgage purchasing, and the extent of such support should be closely controlled. Approval of these recommendations will correct the most serious defects of the present mortgage purchasing operations of the Federal government and will authorize an effective secondary market facility, relying primarily on private financing. It will also provide flexible authority under which the Federal government could directly purchase mortgages, should economic conditions and the public interest indicate the need for such action. VIII. REORGANIZATION OF FEDERAL HOUSING ACTIVITIES The present organization of Federal housing activities is unsatisfactory. The Housing and Home Finance Agency is a loosely knit federation of separate organizations. Its present structure is cumbersome, inefficient and lacks clearcut recognition of administrative authority. The result is confusing to the public. Neither the Congress nor the Executive Branch can expect it to achieve good and efficient management under its present structure. I shall, therefore, submit to the Congress a reorganization plan to provide a better grouping of housing activities headed by an Administrator with adequate supervisory authority. I believe that this message offers the means whereby our Nation may provide more and better homes for our families. By applying these recommendations we shall add to the comfort and the health of our people; we shall strengthen the economic and social fibers of our Nation; and we shall reinforce the freedom and self-reliance which have brought great 200

Page  201 Dwight D. Eisenhower, I954 ness to our land. I urge, therefore, that the Congress give to these recommendations its early and favorable consideration. DWIGHT D. EISENHOWER i 8 e The President's News Conference of January 27, I954. THE PRESIDENT. Ladies and gentlemen, I have one or two items I think may be of some interest. As you know, President Bayar and his wife are going to be here this evening as visitors to our Government, and there will be a formal dinner for them this evening. I am delighted to have them, of course. Turkey has emerged a very modern and sturdy nation and great friend of ours, and so I regard it as a great privilege to have the opportunity of paying a compliment to them. The other item that certainly interests me and, I hope, you, is coffee. I want to be very careful what I say. I am going to read one or two sentences, they are not particularly for quotation, but I don't want to misquote the Federal Trade Commission. I understand they are going to have a press conference themselves, so I am not trying to steal their story. I just want to tell you, up to date, what I know about it. On January 13 they started a preliminary investigation to see what was the trouble about coffee prices in this country. They discovered enough that they thought a full-scale investigation was indicated, and is going to take place. Now, the Chairman said that the Commission will give particular attention to the charge that domestic trading in coffee futures on the Coffee and Sugar Exchange is restricted to certain types of coffee, and that all domestic coffee prices are tied in in some ways to the Exchange price. What it all means and comes down to is that they are going to try to determine first whether the law has been violated and, secondly, to publish all the facts in an economic report. Of course, the Commission will maintain liaison with the Department of Justice. Just exactly what is going on, no one seems to know. Of course, we do know there is a shortage. Back in the thirties there was a great surplus; 201

Page  202 Public Papers of the Presidents there was a reduction in planting, I believe even a cutback in the acreage devoted to coffee, and now demand has caught up. Add to that a few frosts and things like that; it's been bad, and it's bad for all of us in coffee at this time. Anyway, the Trade Commission is making a full investigation of the matter. In the past week, as you know, the Randall Commission reported to me, and I have sent copies of the Randall Commission Report to each executive agency of Government. Now, the idea of the Commission was conceived in line with the whole general policy of developing a stronger America. It has to be examined by all interested agencies to make certain that in trying to achieve that effort, we don't damage or harm seriously, at least, any great group in America. To that I would never be a party, because the attempt is to develop the economy of America, make it stronger, not to make it weaker. Because of the very dedicated work all these people did, I think all of us owe them a debt of thanks. Certainly I feel so. And I feel that Mr. Randall himself has worked so hard on it that he still has a field of usefulness as we analyze and present these conclusions in the form of specific recommendations. So I have retained him as a Special Consultant to the White House, which he has agreed to, to help out in that way for the time being. Now, let's see if I had anything else here. I think that is all the special items I have. We'll go to questions. Q. Merriman Smith, United Press: Mr. President, in your recent speech to the Anti-Defamation League of B'nai B'rith, you spoke quite highly of part of the American code of behavior being that the accused had the right to face his accuser. A California Congressman, a Democrat named Condon, yesterday before the House Un-American Activities Committee, asked for the right to face his accusers. He had been mentioned in an AEC report as being a Communist, and he denied that. I wonder if you think your code, as you spelled it out for the AntiDefamation League, would apply in his case? THE PRESIDENT. Well, Mr. Smith, you are asking me to take one offthe-record expression of conviction, translate it quickly into a specific case, and make an application in another quick conclusion. I certainly believe earnestly in the general statement that I made before. This case, I really have had no connection with. As I understand, it was done in the Atomic Energy Commission. 202

Page  203 Dwight D. Eisenhower, I954 e i8 Just what can be done in these cases, I am not certain, but I do think that this man has got to be given every right to clear himself. This is the first time I knew he had been accused of being a security risk, and I don't know any of the circumstances; but I certainly believe that if we are going to have decency and justice for the individual in this country, he has got to be given full opportunity in some way to establish the falsity of charges. Just how that works out in a specific case, I think I will have to pass that one for a moment. Maybe there will be a report made on it to me, on that subject; I don't know. Q. Raymond Brandt, St. Louis Post-Dispatch: Mr. President, on this Randall Commission Report, after the agencies have reported, will you send a special message to Congress? THE PRESIDENT. I haven't any fixed conclusions; I suppose I will, yes, I think I will. That was certainly my original intention. Q. Mr. Brandt: And it will follow the general line of the majority report, if you can find out the majority? [Laughter] THE PRESIDENT. It is being analyzed now, but there is, generally speaking, a majority opinion runs through it. The recommendations I make will be based upon the Report and upon the analyses made by the several Departments of Government. Q. Ray Scherer, National Broadcasting Company: I have a question allied to Mr. Smith's, and I would like to ask you to comment, if you will, sir, on a development in Norwalk, Connecticut. It appears this morning on the front page of a paper that is generally deemed to be reliable, and it goes like this: "The names and addresses of residents of this city whose record of activities are deemed to be Communistic by the local Post for the Veterans of Foreign Wars, are being forwarded by it to the Federal Bureau of Investigation." THE PRESIDENT. Now, what do you want me to comment? Q. Mr. Scherer: Whether you think this fits in with the expressions in your B'nai B'rith speech: "It was learned today that a special committee formed from men from all walks of life had been created to sift the suspects." Do you think this might be a threat to civil liberties? THE PRESIDENT. Well, I don't believe you can stop anybody from putting something down and sending forward names; but I believe that there are libel and slander laws in our country, and if a man makes or a group of people make false charges against someone, they have to be 203

Page  204 ( I8 Public Papers of the Presidents responsible for their own statements. So just what this one is, I don't know; I had not heard of it, and I am not sure what opinion I would have on this at all. Q. Sarah McClendon, El Paso Times: In line with that same thing, we learned at Mr. Brownell's press conference last week, and I believe Mr. Donald Dawson stated this in the paper this morning, that if you are employed by the Federal Government and you suddenly leave or quit, your friends may think you have been fired for security reasons; you have no means of proving to them. I know a man who quit the State Department the other day, and he said, "Please don't put it in the paper; I am just quitting, but somebody will think I have been fired for security reasons." Is there some way we can devolve a system for tagging these people, like the Army does, with honorable discharges and dishonorable discharges? THE PRESIDENT. Of course, this whole thing is a very confused business, and since there have been so many hundreds of thousands, millions of people employed by the Government, unusual and cloudy cases arise. As I told you before, our idea is here that we should not charge anyone with disloyalty or subversive activity unless that is proved in a court of law, and I don't believe that we should. We talk and try to devise a scheme whereby those people whose records gave you some evidence that they were not good security risks in the Government should not be there employed. Now, that is all that we have ever tried to say about this thing. Certainly no one that I know of has ever gone a bit further. As to differentiating between the person who gets, let's say, a letter of commendation when he goes, and the other, I think it ought to be possible. You bring up a point of this thing, I must tell you, that I had not thought about; but I think something like that ought to be possible. Certainly, I am going to ask about it and see whether it can be done. Q. Mrs. May Craig, Maine Papers: Mr. President, last night in a speech at a pro-Bricker amendment dinner, it was charged that the Status of Forces legislation of the last year, which subjected American soldiers to foreign courts in NATO countries does, in fact, deprive them of constitutional rights. When I was in France last September, Americans told me that our American soldiers were so being deprived in their 204

Page  205 Dwight D. Eisenhower, I954 ( I8 opinion. Has that been brought to your attention in relation to any cases of American soldiers? THE PRESIDENT. Well, in this complicated business of trying to make America stronger in the world, you do run into a variety of situations involving individuals. Now, I don't know what the people argue. The Status of Forces agreement was one for which I worked very seriously when I was in Europe, for this reason: fundamentally, any foreigner in the United States can be tried by a United States court if he commits a crime of any kind, and we have units of other nations come here occasionally. This same thing happens in a foreign country. Now, these people, let me point out, are our partners. In no case where we make agreements with other nations are we trying to establish or act like they're satellites. That is a philosophy that seems to me repugnant to the whole concept of freedom, of liberty. And remember this: the Status of Forces agreement, as I recall the provisions-after all, it is 2 years ago that I studied them-any crime that is committed between individuals of our units, they are tried by us; anything that happens when the man is on official duty, they are tried by us. The actual time when the man is exposed to some kind of action by a foreign court is when he is on leave, and he is in exactly the same status, as a practical measure, as you were when you went there. Now, if you had committed an offense in France, or wherever you were, would you have expected to come back to the United States to be tried? You would have been tried, and you would accept that risk when you go over there. The difference is that a soldier is ordered over, but he does have his post, he does have his unit, and it is still expected then that when he goes off of his own territory and goes off on leave, on his own personal status, that he does become responsible to their courts. Even there, there are certain safeguards in the way he is represented and the information given to our embassies. Now, this same thing applies to people who are here. All these treaties are reciprocal, and that is the thing to remember. They are arranged so as to do justice to the very greatest possible extent to the individual, and to meet national needs. 205

Page  206 q i8 Public Papers of the Presidents Q. Charles von Fremd, CBS Television: Mr. President, yesterday Senator Young said that during the campaign you always promised the farmers nothing less than go percent of parity, and he challenged your flexible price supports at 75 to go percent of parity. I would like to ask you, do your recent agricultural recommendations represent a change in your thinking on this matter, and if so, why? THE PRESIDENT. Well, now, let me ask you one question: did you go to the trouble to read my speeches in the campaign? Q. Mr. von Fremd: Yes, sir; I did. THE PRESIDENT. All right; then, did you find anything that said I ever promised permanent rigid price supports at go percent? Ever? Any place? Q. Mr. von Fremd: Mr. President, I am just referring to the remarks of Senator Young yesterday. THE PRESIDENT. I know, but I don't answer individuals; I answer questions directed to principles and ideas. I am not engaged in argument with individuals. Q. Mr. von Fremd: My question then, sir, is your present plan, which you submitted on agriculture, does that represent in any way a change in your thinking? THE PRESIDENT. None at all. Actually, what I promised was this: I said there is on the books a law, an amendment to the acts of '48 and '49, which carries rigid price supports through December of I954; that law will be rigidly enforced, and there will be no attempt to tamper with it. In the meantime-and I promised this in every talk I ever made about agriculture-we will get together the most comprehensive, the most broadly based groups of actual farmers and farm students and agricultural intellectuals, and all the rest of them, get them together to devise a program that seems to meet best the needs of our country; that is exactly what I said. That is exactly what we have done, and we have come up with a program in which I believe. I believe it to be as nearly adapted to the needs of this country as we can possibly devise at this moment. Q. Marvin Arrowsmith, Associated Press: Mr. President, would you comment on Molotov's demands for a Big Five Conference including Red China and world problems? THE PRESIDENT. Well, of course, my attitude about these things, I 206

Page  207 Dwight D. Eisenhower, 1954 e I8 think, is known; but in any event we do have a conference now going on in Berlin to which our representative has gone. I have, as you know, I hope, the utmost confidence in Secretary Dulles and his wisdom, and I know there is going to be no change in policy. He is going to stick to and, so far as he is able in that conference, carry out the beliefs and policies of this Government. I don't think that it is in order for me to speak in detail of my opinions at the moment. He is now on the front line and is carrying out the job, and I am backing him up. Q. Robert Spivack, New York Post: The Peiping radio, I understand, has been having a propaganda field day with the case of Corporal Dickenson, and while I am sure that he will be given a fair trial, I wonder if you feel that there is any better way of handling the cases of these men who admit their mistake, and had the courage to break with the Communists. THE PRESIDENT. I have two remarks on that: I was so disturbed when I saw it in the paper that I got hold of Secretary Wilson, and we discussed it. By no means do I think that this investigation was started merely because the man had been for a moment saying he believed he'd stay Communist and stay over there. I think there must be something else to it, although I personally am not very well informed on that. This is the fact: they said they were going to put him, I believe, before a court-martial. Actually, any courtmartial in the Army-and here I can speak from a little bit more experience-is preceded by a very long investigative process. If, say, you put a man in to prefer charges against him, those charges are handed to an impartial and objective group, sometimes individuals, sometimes a group, and a long investigation goes through to determine whether there are real grounds for trying this man. That investigation will, just as a matter of law, take place; and I know that Secretary Wilson himself is keeping close touch with it to see that no injustice is done. Certainly, I am sure that I know of no Army man or anybody else who would punish a man for a simple mistake committed under the most trying of circumstances, and who later repented. After all, we can read the tale of the prodigal son profitably occasionally. 207

Page  208 Public Papers of the Presidents Q. Daniel Schorr, CBS Radio: Mr. President, aside from the Dickenson case, as such, do you have any thoughts on the whole vexing problem confronting this country in the form of those who signed germ warfare confessions, and those 2 Iwho remained behind? THE PRESIDENT. Well, the 21 who remained behind, I don't know of anything you can do, except to take the action the Services did. Secretary Wilson just decided to separate them from our Services under dishonorable conditions. Now, for these people who come back, I think there has to be a real investigation and study to see what to do with them. We must not, sitting here in the comparative safety of Washingtonthere are dangers of another kind, at least-[laughter]-let us not be too sure of what we would have done under these same circumstances. What I would hope that the Services do as they investigate this thing is to have some real sympathy in their hearts as they look into it. And I must say this: my own experience, my long experience with the armed services, was that usually you can find there the full average measure of decency and humanity when you are forced into this business of judging and passing judgment upon the weaknesses or failures of others. I think that there will be no attempt on the part of anybody to be harsh in these cases. Q. Robert L. Riggs, Louisville Courier-Journal: Mr. President, we took up with Mr. Brownell the matter of breaking down these 2200; that was on your advice, I believe. Mr. Brownell said we ought to go to the Civil Service Commission, and I see by the papers that Mr. Young of the Civil Service Commission has notified a Congressman that it is up to the White House and the National Security Council. We are going around in circles, are we not, sir? THE PRESIDENT. Well, probably what he said is because he is compelled, under an Executive order that I issued some time back, to make reports to us; I hadn't thought of that when I mentioned it before. You see, the Attorney General drew up this security order, as opposed to the so-called loyalty boards and so forth, and I was thinking of him as a man who was more intimately aware of the circumstances than I was. Now, it is possible that there is some kind of a time thing on it; but on the other hand, I don't know whether there can ever be any real breakdown into specific categories that you people might like. 208

Page  209 Dwight D. Eisenhower, I954 q i8 I will have to ask Chairman Young myself what this thing is developing into. But as far as I am concerned, I am trying to protect the service of the United States and do no one damage, if I can help it. That is the reason I answered one question awhile ago that I believe there ought to be some way of showing when people are separated with complete honor and for reasons of their own, and when they are just something else. But a poor security risk-I am not going to say that what we deem to be a poor security risk under statements made on the record reaching clear back into babyhood, I am not going to say that he is a disloyal person; I just won't do it because I don't necessarily believe it. Q. Mr. Riggs: Sir, a moment ago you said you were not aware of anyone who used any such terms. Governor Dewey has used the words "spies and traitors," and then referred to I400 security risks. THE PRESIDENT. When I said anyone, I meant anyone that was within this administration. I am sorry. Q. Norman Carignan, Associated Press: Mr. President, last Thursday you held a meeting at the White House with your brother, Dr. Milton Eisenhower, and several Cabinet officers and other Government officials dealing with Latin America. And I gather it dealt with the loan policy towards Latin America. I wonder if you could tell us something about the meeting and any conclusions reached? THE PRESIDENT. I merely can say this: the meeting ended with an agreement that there would be an intensive study by several of the interested agencies as to exactly what some of these specific problems are, and whether there should be any change in policy as of now. I would think it would be a little while before their answers would be available. Q. Edward Sims, Columbia (S.C.) State and Record: Ever since you made the statement in Augusta about unemployment areas and defense contracts for unemployment areas, there has been, of course, intense interest in my section and other sections; and this morning there is a report out that you have assured or the Government has assured-not you personally-20 percent of the defense contracts to unemployed areas. Is that something new? Would you comment on that at all? THE PRESIDENT. In no case do I think there is a fixed rule of that kind. For example, suppose you are going to build a ship, how can you take 20 percent of a ship and put it some place else? Certain things just have to be done as units. 209

Page  210 e I8 Public Papers of the Presidents As I explained to you before, the great mass of these procurement orders will go out in the normal routine manner, lowest bidder and lowest responsible bidder, and that is that. The law allows the withholding of a certain percentage-even that can differ-that can be put out then for negotiated bids as long as the bid is as low as the lowest bid you got in the normal line of communication. I believe that 20 percent is merely the maximum, that is what I understand. Q. Jerry O'Leary, Washington Evening Star: Mr. President, do you see any signs of agreement between the opposing sides on the Bricker amendment? Do you have any information of a possible agreement? THE PRESIDENT. Well, I can only say that certain of my associates down on the Hill keep hoping for it. So far as I know, there is nothing different from what you see in the papers. Q. Richard Wilson, Cowles Publications: Some people have characterized your legislative program as an extension of the New Deal. I think former President Truman is one that has done that. Would you care to comment or discuss that? THE PRESIDENT. I think the best comment on that is to go and take a look at the budget. Take a look at the budget he proposed, and what we did, and the direction in which we are going. Q. Mr. Wilson: How would you draw a distinction between the two? THE PRESIDENT. The difference in the direction in which it would go. One was going further and further into debt and at an increasing rate; and the other is trying to reduce the expenditures of Government and go the other way. Now, let me point out: there were a number of things that started in the late I92o's and early 1930'S that were continued on throughout the New Deal. The RFC notably is one. I don't think anyone attempts to say that everything that was done by some political opponents, or by a political school in which he did not believe, is necessarily evil or bad for the country. I believe our job, I believe the job of this administration or any other that will come after it, is to take the situation as it exists, and what is good for the country. I believe that we use titles, appellations, what do you call them, meanings of words that seem to get all confused-liberal, progressive, and all the rest of them. Nevertheless, I think it would be safe to say this: 210

Page  211 Dwight D. Eisenhower, 1954 when it comes down to dealing with the relationships between the human in this country and his Government, the people in this administration believe in being what I think we would normally call liberal; and when we deal with the economic affairs of this country, we believe in being conservative. Now, I quite admit that there can be no distinct line drawn between the economy and the individual, and I am ready to say also that such a little capsule sort of description of an attitude can be pulled to pieces if you want to. But, in general, that is what we are trying to do. The difference here is that the Government's position, the Government's growth, the Government's activity under this new administration is to try to have its functions in conformity with the Constitution of this country; but in doing so, to make certain that the individuals realize that Government is a friend and is not their enemy in any way. That is, by all odds, certainly an abbreviated answer to such a question, but I do think that all the way along we have showed the difference between this philosophy, the philosophy of this Government, and that of the New Deal. Q. James Reston, New York Times: I wonder, sir, if you can give us any report about the Atomic Energy discussions you have had with the Soviet Ambassador, or rather that Mr. Dulles has had. THE PRESIDENT. No, there is no report at this time. I don't know when there will be one, actually. Q. Robert Clark, International News Service: Mr. President, your social security message would seem to have answered this, but I have been requested to ask you whether the administration has abandoned its original proposal to cut back to IS 2 percent social security tax. THE PRESIDENT. Well, last year, of course, I asked for its freezing for a year. Now my recommendations extend social security to something like ten million more people and increase the benefits, and it seems to us necessary to allow the 2 percent to go into effect. Merriman Smith, United Press: Thank you, Mr. President. NOTE: President Eisenhower's twenty- I:02 o'clock on Wednesday morning, fifth news conference was held in the January 27, 1954. In attendance: I85. Executive Office Building from 10: 33 to 2I I

Page  212 q 9 Public Papers of the Presidents I 9 ~1 Remarks of Welcome to President Bayar of Turkey. January 27, I954 President and Madame Bayar: It is a great privilege to speak for the American people and the Nation's Government in bidding you welcome here to the Capital. On the personal side, Mrs. Eisenhower and I are very proud to have you, the Head of the great and friendly State of Turkey, as guests at the White House. NOTE: The President greeted President American soil. Celal Bayar and Mme. Bayar on the I was very happy to accept the very North Portico of the White House at kind invitation of that great soldier and 5: 00 p.m. A translation of President statesman, your President Eisenhower, Bayar's reply follows: and of Mrs. Eisenhower. I am very proud I can hardly express the emotions that to convey to them and to the American I feel at the warm acclaim that I have people the warm affection and the greetreceived ever since I have set foot on ings of my Nation. 20 41 Toasts of the President and President Bayar at the White House. January 27, I954 Your Excellency, Madame Bayar, distinguished guests of two countries: Tonight, this company-this Capital-this country-is honored by the presence at this board of the Head of the Turkish Republic. We gladly seize the opportunity afforded us by his presence, to salute a nation which is one of the most gallant and staunchest defenders of freedom in the modern world. The evolution of Turkey, taking place within the span of a single generation, is one of the marvels of our time. Fifty years ago-and there are a number of us here who can remember that long-the events, the names, and the faces of Turkey were little known to us. Our understanding of the country and its people was very meager indeed. And then the change. Today we recognize it as a modern, progressive country, one that we are proud to call ally in the great problems that face the free world today. This great change was brought about by a dream of a group of men, a group of men headed by Mustafa Kemal Ataturk. He had a dream that with a band of devoted associates they translated into reality-by service, unselfish and dedicated service, to 212

Page  213 Dwight D. Eisenhower, I954 (I 20 their country. Forgetting themselves, they gave their lives and their talents to the nation to which they belonged. And since 1923 we see the transformation that has taken place. Now the great Ataturk is dead, but his work lives on, and our guest of honor this evening is one of the original band that worked with him to bring about this great change, and to make Turkey the nation she is today: great, and growing greater every day. Our guest of honor, since that day in 1923, has been almost continuously in the Assembly of his country. He has held almost every position in his government, including that of Prime Minister, and now is honored by holding the highest position in the land. In a feeble effort to show some of the appreciation of this Government and its people, for Turkey as a nation and its people, our Government has awarded to our guest of honor the Legion of Merit in the grade of Chief Commander, the highest honor that this Government can give to anyone in time of peace not a citizen of this country. And with your permission, I shall read the Citation: "The President of the United States of America, authorized by Act of Congress July 20, 1942, has awarded the Legion of Merit, Degree of Chief Commander, to Celal Bayar, President of the Turkish Republic, for exceptionally meritorious conduct in the performance of outstanding services: "The Turkish people have shown their confidence in Celal Bayar by entrusting him with high offices throughout his long public career, but especially when he was honored by being placed in the highest and most responsible position in Turkish public life-that of the Presidency of the Republic. In this high office, he has contributed greatly to the enrichment of that goodwill which characterizes the relationship between Turkey and the United States. Under his firm leadership, Turkey has continued to actively support those ideals which are cherished by free peoples everywhere, thus contributing effectively to the hopes for freedom and peace throughout the world." Signed by the President. Now, my friends, as we lift our glasses to our guest of honor, let us remember that through him we do so, also, to the great nation of Turkey and its people-a people whose future we shall watch with interest, and wish for them everything that is good in a free world. Ladies and gentlemen, President Bayar of Turkey. 51986-60 ---17 213

Page  214 (I 20 Public Papers of the Presidents NOTE: The President proposed this toast at a state dinner at the White House at 9:45 p.m. President Bayar responded in Turkish. Thereafter the following translation was read by John F. Simmons, Chief of Protocol: Mr. President: I am deeply moved by the warm reception and the manifestations of genuine friendship which I have experienced since I set foot on American soil. I am particularly happy, as your guest this evening, to enjoy your solicitous hospitality in this legendary residence. The emotion that I felt on listening to your kind words about my country was not only stirred by the sincere feelings which you so well expressed, but it was also due to the fact that I realized how well this country understood the revolution which has taken place in my country since the day that, under the leadership of one of her sons devoted to the cause of civilization and humanity, she changed her destiny until the day she won her place in the community of free countries and assumed her duties in the service of humanity. There is no doubt that the words that you, a great general and outstanding statesman, have spoken as the highest authority of the great American nation, will be a source of endless joy to all my countrymen. I also wish to thank you for your kind and gratifying words about myself. As you have said, I do in fact cherish the moral satisfaction of having worked together, from the first day to the last, with Kemal Ataturk, the saviour of my country, the founder of modern Turkey, and the architect of the Turkish Revolution. But the group who rallied under Ataturk and who were then called "the na tional force," are a symbol of the Turkish nation who pinned their destiny on him in the cause of a free and independent Turkish land, and for the ideal of a free and independent world according to the highest human concepts. Today, these goals of the Turkish nation have been attained. Turkey shares the responsibility of a common fate with those nations of the free world who are making sacrifices for their liberty and independence. The happiest manifestation of that is in the firm ties which bind our two countries to each other. I am very proud to hear that your government has decided to confer upon me the Legion of Merit, which is the highest award given in time of peace to a foreign citizen, in recognition of his services. I accept this great honor, fully conscious of its worth, as a valuable token of the friendship of the American people towards my nation, which at the moment I represent on friendly American soil. Turkey considers it a human and national duty to cooperate with the peoples who are striving for the realization of the ideals of a free world and genuine peace. No matter how strenuous and dark may be the road that leads to that objective, she is determined to walk hand in hand with her allies. For the Turkish nation, liberty is the mainstay of life. And I am convinced that the souls of the Turkish and American nations find communion on that motto above everything else. When, therefore, our sons shake each other's hand on the road on which our countries are determined to walk arm in arm, they feel the mutual determination and confidence of two great spirits. I raise my glass to your health, and to the health of Mrs. Eisenhower. I drink to the happiness and prosperity of our great ally, the United States. 214

Page  215 Dwight D. Eisenhower, 1954 (I 2 I 2 I 41 Annual Message Transmitting the Economic Report to the Congress. January 28, I954 To the Congress of the United States: I am herewith presenting my Economic Report, as required by Section 3 (a) of the Employment Act of I 946. In preparing this Report, I have had the assistance and advice of the Council of Economic Advisers. I have also had the advice of the heads of executive departments and independent agencies. I present below, largely in the words of the Report itself, what I consider to be its highlights. OUR OBJECTIVES A great opportunity lies before the American people. Our approach to a position of military preparedness now makes it possible for the United States to turn more of its attention to a sustained improvement of national living standards. Our economic goal is an increasing national income, shared equitably among those who contribute to its growth, and achieved in dollars of stable buying power. Sustained economic growth is necessary to the welfare and, indeed, to the survival of America and the free world. Although American living standards on the average are now higher than ever, there are certain groups whose consumption is much less than it should be. We can in our lifetime go far toward eliminating substandard living. A steadily rising national income is the best assurance of harmonious social and economic adjustments. There can be no lasting harmony in a nation in which competing groups and interests seek to divide a constant or shrinking national output. ROLE OF GOVERNMENT The demands of modern life and the unsettled status of the world require a more important role for Government than it played in earlier and quieter times. It is Government's responsibility in a free society to create an environ 2I5

Page  216 e 2I Public Papers of the Presidents ment in which individual enterprise can work constructively to serve the ends of economic progress; to encourage thrift; and to extend and strengthen economic ties with the rest of the world. To help build a floor over the pit of personal disaster, Government must concern itself with the health, security and welfare of the individual citizen. Government must remain alert to the social dangers of monopoly and must continue vigorous enforcement of the anti-trust laws. Government must use its vast power to help maintain employment and purchasing power as well as to maintain reasonably stable prices. Government must be alert and sensitive to economic developments, including its own myriad activities. It must be prepared to take preventive as well as remedial action; and it must be ready to cope with new situations that may arise. This is not a start-and-stop responsibility, but a continuous one. The arsenal of weapons at the disposal of Government for maintaining economic stability is formidable. It includes credit controls administered by the Federal Reserve System; the debt management policies of the Treasury; authority of the President to vary the terms of mortgages carrying Federal insurance; flexibility in administration of the budget; agricultural supports; modification of the tax structure; and public works. We shall not hesitate to use any or all of these weapons as the situation may require. THE CURRENT SITUATION The year just closed was very prosperous with record output, widely distributed incomes, very little unemployment, and prices stable on the average. In the second half of the year there was a slight contraction in business leading to unemployment in some localities. This was due mainly to a decline in spending by businesses for additions to inventory. Other categories of spending, notably retail sales, have been well sustained. Our economic growth is likely to be resumed during the year, especially if the Congress strengthens the economic environment by translating into action the Administration's far-reaching program. BASIS FOR CONFIDENCE The removal of wage and price controls, the stopping of price inflation, the development of new products available to consumers, and the im2I6

Page  217 Dwight D. Eisenhower, I954 ( HI proved economic condition of the nations of the free world constitute an unusual combination of favorable factors for the future. While Federal expenditures were being cut in many directions during the past year, outlays on research and development grew and came to 2V/2 billion dollars out of a total national expenditure on research of 4 billion dollars. Research has already given us many new industries and products, including atomic energy, radioactive isotopes, electronics, helicopters, jet engines, titanium and heat resistant materials, plastics, synthetic fibers, soil conditioners, and many others. Outlays on the building of new knowledge must continue since they are our surest promise of expanding economic opportunities. Because of billions of dollars of savings in Government spending made in this Administration's first year, major tax cuts went into effect on January i. More than 5 billion dollars of tax savings are now being left with the American people to increase their purchasing power this year. More will be released to taxpayers as rapidly as additional savings in Government expenses are in sight. Also favorable to the maintenance of high consumer expenditures growing out of high personal incomes is our wide diffusion of wealth and incomes and the strong urge of Americans to improve their living standards. Expenditure plans of American business for plant and equipment constitute a powerful support for economic activity. Despite the record volume of home building in recent years, there is still a good market for housing in this country. Vacancies in our cities, with few exceptions, are below the level necessary for a healthy competitive market. A continued rise in State and local expenditures may be expected. There is still, in most parts of the country, a vast backlog of needed schools, highways, hospitals, and sewer, water and other facilities. Federal expenditures will remain a significant sustaining factor in the economy. Our financial institutions are fully capable of meeting all reasonable credit demands and are in condition to withstand successfully any strains to which they may be exposed. 2I7

Page  218 41 XI Public Papers of the Presidents MEASURES TO STRENGTHEN THE ECONOMY To protect and promote economic stability we should take bold stepsby modernizing unemployment insurance; by broadening the base and benefits of old-age insurance; by permitting a longer "carry-back" of losses for tax purposes; by granting broad discretionary authority to the Executive to alter, within limits and appropriate to changing circumstances, the terms of governmentally insured loans and mortgages; by establishing a secondary home mortgage market; and by making improvements in the planning of public works programs. To stimulate the expansive power of individual enterprise we should take action-by revising the tax laws so as to increase incentives and to remove certain impediments to enterprise, especially of small business; by improving credit facilities for home building, modernization, and urban rehabilitation; by strengthening the highway system; and by facilitating the adjustments of agriculture to current conditions of demand and technology. CONCLUSION Employment in January, I954, is somewhat lower than in January, 1953. There seems to be a connection between this fact and the fact that in January, I953, we were still fighting in Korea and are not doing so today. We can make the transition to a period of reduced mobilization without serious interruption in our economic growth. We can have in this country and in the free world a prosperity based on peace. There is much that justifies confidence in the future. The Government will do its full part to help realize the promise of that future in its program to encourage an expanding and dynamic economy. DWIGHT D. EISENHOWER NOTE: The message and the complete re- nomic Report of the President, 1954" port (225 pages) are published in "Eco- (Government Printing Office, I934). 22 4J Address Recorded for the Republican Lincoln Day Dinners. January 28, I954 My fellow Americans: You are gathered in this meeting as active, devoted members of a political party. As such, you give of your time, your thought, and your 2i8

Page  219 Dwight D. Eisenhower, I954 (f 22 effort to the most important business I know-the public affairs of your country. You concern yourselves with the conduct and management of government-from the smallest political unit to the topmost levels of the Federal Administration. You are, therefore, in politics-even though you may hold no appointive or elective office. And you should, it seems to me, wear your political badge with some considerable pride. For politics ought to be the part-time profession of every citizen who would protect the rights and privileges of free people and who would preserve what is good and fruitful in our national heritage. Politics must be the concern of every citizen who wants to see our national well-being increased and our international leadership strengthened. In that combined sense, politics is the noblest of professions. In the ranks of that kind of politics, every American should be enrolled. You are so enrolled. You chose to enlist in this political endeavor under the banner of the Republican Party. It so happens that I made the same choice. I hope that we reached our separate and individual decisions in this important matter for similar reasons and as a result of sincere conviction. For a political party is an instrument to translate into effective action the aims and aspirations of the people. It is therefore essential that the members of a political party-if the party is to be effective-join together to reach a common goal. Unless there is unified support of broad political policy, there is no true political party. Only in unity can the strength of each of us be multiplied by the total number of all of us. Only in such multiplication of strength can the impact of our efforts be felt with equal force in the Nation's smallest precinct and in the Nation's Capital, alike. We must generate such an impact if our party-the Republican Party-is successfully to meet the responsibilities of national leadership with which it has been charged by our people. We will meet that challenge with success if, as we celebrate this onehundredth anniversary of our party, we seize the opportunity to review its origins and to consider and apply the political philosophy of its first great leader. A century ago, our party was born as a result of many meetings of little-known men in many sections of the country. Another little-known 219

Page  220 qI 22 Public Papers of the Presidents man in Springfield, Illinois, becoming the leader of that party, later became a "Man of the Ages." This month, we celebrate his birth and the birth of the party he led. But in every season and in every year and in every month, the man and the party are inseparably linked, one with the other. In Abraham Lincoln as in no other man, in the wisdom of his statesmanship and in the vast sympathy of his human concern was concentrated the rich promise of our Republican Party. Beyond all others of his day or since, he most effectively inspired our party to serve the Nation's good-both of the moment and for the centuries. With the country facing the terrible threat of disunity, he made his and the party's first purpose the preservation of the Nation. From the very moment he repeated the oath as president until the tragic end, Abraham Lincoln's every act and every word were clearly aimed, shaped, sharpened, and designed to serve that single purposethe preservation of our country. In the Emancipation Proclamation, at Gettysburg, in his two great inaugural addresses, in countless other utterances and statements-in private letters to friends and critics, within his Cabinet and to the public-over and over and over again, always he seemed to be sayingWe are the trustees of the American heritage. In this time, in this tragic war, we have but one responsibilitythe protection of that heritage. Every thought we hold, every action that we take, every sacrifice we make-all these must be dedicated, single-mindedly, to this task. We must leave to the future an America that is whole, intact, strong, united-and still the land of freedom. We are the trustees of the American heritage. Tirelessly and stubbornly he repeated it. Every tortuous moment of those last 4 years, he lived it. Through his success, you and I are today the trustees of that same heritage. We, in our time, must pass on to our children's children this America-strong and still the land of freedom. "The legitimate object of government," declared Lincoln, "is to do for a community of people whatever they need to have done, but can not do at all, or can not so well do, in their separate and individual capacities." 220

Page  221 Dwight D. Eisenhower, 1954 (f 2 2 So, preoccupied though he was with the crisis of impending secession and the onrushing tragedy of civil war, he clearly realized that other and continuing responsibilities of government had to be met if this Nation was to remain whole, intact, strong, united, and still the land of freedom. The same simple but basic philosophy of government he then expressed is still the best guide for the men and women whose official responsibility it is today to direct the legislative and executive affairs of our Nation. Their measure of success will be determined in the degree that they are able to absorb and apply the teachings of that great leader. In his first inaugural address, Abraham Lincoln also said, "This country belongs to the people who inhabit it." And, at the same time, he made it clear that when the people grow weary of their existing Government, they have the constitutional privilege of changing its course. Fifteen months ago, the American people-seemingly weary of the course their Government was taking at the time-exercised their constitutional rights and changed that course. You and other hard-working party members like you, aided by millions of Americans of other or no party allegiance, played a vital part in that process-in your neighborhoods and communities, in your counties and your States. And with victory came added responsibility. On you today-as politicians in the finest meaning of the term-and on your leaders-rests the responsibility of justifying now and for history the mandate of November, 1952. That mandate requires that always we address ourselves to the preservation of this Nation against threat of any kind from any quarter whatsoever. We must preserve its basic system and the freedoms it guarantees to its citizens. It requires also that we share Lincoln's concern for the proper role of government in helping and protecting all our citizens. It was in such concern that there was recently placed before the Congress this administration's program for consideration and translation into law. Through our unified action, that program will secure our country against the threats of our time and will be doing for our people those things they cannot well do for themselves. We will justify the people's decision of I952 only as we attract-with our program-new and willing workers to our ranks; only, with those workers, as we learn the habit and spirit of teamwork; only, with Lincoln, as we remember and apply the wise counsel he gave us in his Second Annual Message when he said: 451986 60 18 221

Page  222 (I 22 Public Papers of the Presidents "The dogmas of the quiet past are inadequate to the stormy present. The occasion is piled high with difficulty and we must rise with the occasion. As our case is new, so we must think anew and act anew." For we know that each day the world is new, that the problems each day brings are new. But we know also that, though these tasks are new, the approach to them is still the Lincoln approach. To be dedicated to a single purpose-the freedom, strength, prosperity, and peace of America-and to strive with all that's in us to advance the welfare of her citizens-that is the forward way we must seek for America. That is the legitimate purpose of Lincoln's party-a century ago, today, and always. NOTE: The President's Lincoln Day ad- Lincoln Day Dinner of the Republican dress was recorded on film for use by the State Central, County, and Town ComRepublican National Committee. The mittees of Rhode Island, held on January film was shown for the first time at the 28 in Providence. 23 4J Toasts of the President and President Bayar at the Turkish Embassy. January 29, I 954 Your Excellency, Madame Bayar, my friends: A very wise teacher that I greatly admired once observed to me that life is made up of friendships, friendships of various kinds, it is true, and in each case the qualities appropriate to the relationship that exists between the peoples or the groups. In the world today, there is a free world-and its opponent is a world that is ruled by dictatorial processes behind the Iron Curtain. The free world is bound together by friendships. The world behind the Iron Curtain is bound together by force, or the threat of force. If these friendships are strong, then the free world will have unity. And we well know that in unity is strength, as in disunity is weakness and destruction. The United States has sought friends, and will continue to seek friends, in this world; and it will measure friendships in those qualities that we call the ennobling virtues of man: his courage, his capacity for selfsacrifice, his readiness to stick by his friend until the end-courage, stamina, gallantry. It is in these terms and these qualities that we so value our friendship with Turkey. We have found her-we have proved her, on the fields 222

Page  223 Dwight D. Eisenhower, 1954 (I 23 of Korea, for our sons are buried together, where numbers of them fought shoulder to shoulder-we have found them to be a nation of courage, of gallantry, of stamina. To a friendship of this kind, one that has been forged and maintained in common recognition of these values, there are always two others: confidence and faith. This evening, as I stand here, I say to you, with no shadow of doubt in my mind, that if the free world can be bound together in its entirety by the kind of friendship that binds America and Turkey, we have no more reason to fear the people behind the Iron Curtain than we have to fear ourselves as we sit here at this gorgeous board. [Applause] And so, President Bayar, I am sure that those of my countrymen that are gathered this evening would want me to express to you something more than the polite courtesy that is due to the Head of a State on a visit to this Nation's Capital. They would want me to try to say that we value you and your visit as symbolic of a friendship that exists between our two countries. We value your visit because you bring to us something deeper than anything else in this world: true friendship. And so, sir, with your permission, we raise our glasses to you, to Madame Bayar, and to Turkey. NOTE: This toast was proposed at 10: 05 p.m. in response to a toast by President Bayar at a dinner which he gave in honor of President Eisenhower at the Turkish Embassy. Immediately after the President finished speaking, President Bayar added in English "And to my hostess." The toast proposed by President Bayar was given in Turkish. An English translation was then read as follows: Mr. President, ladies and gentlemen: I am happy to greet you and Mrs. Eisenhower to this Embassy. Having for many years occupied the center of world attention in the military and political field, you have since acquired renewed stature by being elected to your present position of supreme responsibility, showing the confidence that your great nation has displayed in you. The people of Turkey are gratified to know that in the trying times that we must all endure in our quest for peace and safety, a victorious and glorified General and experienced statesman like yourself is at the head of the American democracy, which has undertaken great, historical responsibilities. We learn with gratitude of your magnanimous proposal, calling for the international use of atomic energy in the service of the prosperity and health of mankind. Whatever may be the outcome of this epoch-making proposal, which constitutes the most incontrovertible evidence of the goodwill of the free world, history will always praise your country and yourself for this sublime endeavor. This worthy and humane initiative has proved once again in the eyes of the world the strength of the moral principles forming the basis of United States foreign policy, which has the safeguarding of peace as its main aim. However ardent may be the love of peace which pervades our spirits, a glance at international relations is sufficient to show that what the free world has so far achieved in the search for peace is yet a 223

Page  224 Public Papers of the Presidents long way from giving us the possibility to relax the efforts which we must make to attain that objective. No solution has as yet been found for any of the difficulties which cause the restlessness of the world. Under these conditions, we have to keep up conscientiously our defense efforts, while we lend renewed vigor to our genuine endeavors for the attainment of peace. I am confident that we shall win the peace that will provide for mankind a life of liberty free of menace. It is the duty of nations who can grasp realities to walk toward that goal with determination, solidarity, and without being carried away by delusions. Ever since the day we proclaimed our Republic, we Turks-who are firmly attached to our motto of "Peace at home, and Peace abroad"-have believed that the most effective measure to prevent war is to set up an international organization capable of convincing any prospective aggressor that aggression will not meet with impunity, and to bring up citizens of the world untainted with the vices of envy, greed, and grudge. The American people, who in the perilous years have set the whole world an example of idealism and magnanimity, may rest assured that they have found in the Turkish nation a firm companion on whom they can rely in every way. The sons of Turkey have fought shoulder to shoulder with your sons under the banner of the United Nations, as a symbol of the human virtues of right and liberty, who have together performed legendary deeds under an able command, and who have died together for a great ideal. A signpost which stands on one of the frontiers of Turkey reads: "We Turks are proud of our nation, and are prepared to die for it." That motto sums up the outlook on life of the Turkish people. Mr. President, I drink to your health, and to the health of Mrs. Eisenhower, and to the happiness and prosperity of the American nation. 24 eJ Statement by the President Upon Signing Bill Amending the Agricultural Adjustment Act of 1938. January 30, 1954 I HAVE TODAY approved H.R. 6665, "To amend the Agricultural Adjustment Act of 1938, as amended." The principal purpose of the bill is to alleviate the great hardship on many cotton farms that would result from the severe production adjustments required under existing legislation. This is accomplished by increasing the national acreage allotment and modifying the method of apportioning that allotment to farms. The bill also would permit the Secretary of Agriculture with respect to the i954 and 1955 crops of wheat to increase acreage allotments and marketing quotas for any class or subclass of wheat determined to be in short supply. At the present time, there is a shortage only of amber durum wheat, which is used in the milling of semolina. Semolina is a type of wheat flour that is used exclusively in the manufacture of macaroni, noodles, and spaghetti. 224

Page  225 Dwight D. Eisenhower, 1954 (t 25 Finally, this legislation removes the prohibition against the use of funds provided under Section 32 of the Agricultural Adjustment Act for extending assistance to the potato industry. It must be clearly understood that this action provides no basis for a program which might result in the dumping or destruction of potatoes. This is as it should be. NOTE: As enacted, H.R. 6665 is Public Law 290, 83d Congress (68 Stat. 4). 25 eI The President's News Conference of February 3, I954. THE PRESIDENT. Good morning. I think that the only statement I have this morning is my apologies for being 5 minutes late. Time slipped by on me. We will go right to questions. Q. Merriman Smith, United Press: Mr. President, does this Government know the whereabouts of the Russian Far Eastern Mission member, Mr. Rastovorov? THE PRESIDENT. I have had no detailed reports on it. Q. Charles Lucey, Scripps-Howard: Mr. President, will you prefer some kind of congressional check on treaty-making power or would you prefer to see no bill at all passed? THE PRESIDENT. Well, Mr. Lucey, I have tried to make my position clear on this several times. There is undoubtedly an honest fear throughout the United States that the treaty-making power can be used to contravene or to supersede our Constitution. In order to reassure America's population on this score, I am ready to do anything, even if it requires some kind of language in the Constitution. When it comes to anything, however-and this is where I stick and will not compromise one word-when it comes to the point of using any amendment to change or alter the traditional and constitutional balances of power among the three departments of Government, a feature of our Constitution that is the very genius of our whole system of government, I won't compromise one single word. That is exactly where I stand. Q. Robert Donovan, New York Herald Tribune: Sir, on the same subject, this Bricker amendment, it is very complicated, and it has now gotten into a very complicated tangle on the Hill. Do you think, sir, it 225

Page  226 Q] 25 Public Papers of the Presidents is wise to try to thrash this out without having a new look at it in committee, in view of the technicalities that have now piled up? THE PRESIDENT. Of course, I am not going to comment on the processes used in the Senate, but I must say it is a complicated matter. As you people know, it absorbs the time of great numbers of people, studies and arguments. It is very, very intricate, and I go back again and again that that Constitution has served us very well for 165 years. Maybe individuals at times have abused it or maybe here and there we haven't been too accurate in our interpretations-because we have had reversals in interpretations. But, by and large, those people did a job that I don't want to trifle with too much, and unnecessarily. So I do believe that these things must be soberly studied. They must not become in the slightest degree partisan. They must be examined in what is the long-term good of the United States, what is going to be the effect of this two decades from now, and what is it going to be next year. Let's not be in a hurry about such an important thing. Q. Laurence Burd, Chicago Tribune: Mr. President, there is a report in the news this morning that we have sent 125 air technicians to Indochina to service our bombers over there, and that France has requested 400 more. Do you know, sir, whether we have military personnel in Indochina, and what our plans are on that? THE PRESIDENT. In many countries of the world we have not only military attaches and their staffs, we have large military missions. In Indochina, as in numbers of other countries, we have military missions. We do not put people there as fighting units. They are training and technical missions of all kinds, they vary in size, and that is all there is to say on the subject. Q. Mr. Burd: Do you know if planes are being serviced over there? THE PRESIDENT. I couldn't say whether they are or not, but we do have a military mission. One of their jobs is instructing in air as well as the rest of the things. Q. David Sentner, Hearst Newspapers: Mr. President, do you consider the Indonesian [Indochinese] situation critical at the present time? THE PRESIDENT. Well, it's been critical for so long that it's difficult to just point out a period when it is more than normally critical. I think this is a fact: all of us have known, in every situation like you have there, that the heart and soul of the population finally becomes the 226

Page  227 Dwight D. Eisenhower, I954 25 biggest factor of success or failure. By that I mean if the Vietnamese want to be free, if they believe that through this kind of a war they will be free, then you will have probable success. Q. Anthony Leviero, New York Times: Mr. President — THE PRESIDENT [continuing]. If it goes the other way, you will probably not have the success. So it is critical in the sense that we have had some evidence that there is a lack of enthusiasm we would like to have there. I am sorry, I just had a lapse: Indonesia Q. David Sentner, Hearst Newspapers: I meant Indochinese. THE PRESIDENT. You did? Then I answered it! [Laughter] I am glad we were both wrong. Some day I must tell you the story of the confusion with a cross-eyed man. [Laughter] Q. Anthony Leviero, New York Times: I am sorry for the interruption, and that is what I meant to call attention to. THE PRESIDENT. Thank you. Q. Charles von Fremd, CBS Television: I wonder, sir, if there is anything you can add at this time to the reported Air Force plan to build a world-wide chain of atom bomb storage bases that was discussed up on the Hill? THE PRESIDENT. I have not seen that. Q. Mr. von Fremd: It was discussed up on the Hill yesterday in the Armed Services Committee, I believe. THE PRESIDENT. I didn't know; it has escaped me; I haven't a word to say on it. Q. Kenneth Scheibel, Gannett News Service: Mr. President, the Government must decide soon what price it will pay for surplus butter under the program which starts this spring. The dairy people have announced they want it kept where it is, but a lot of consumers think it is too high and it should be reduced. Do you know of any plan to reduce the price of butter? THE PRESIDENT. I'll put it this way: I don't know that the decision has been reached as to where the price would be fixed for next year. Incidentally, I believe I have an engagement now with the dairy people coming in to see me, and I imagine they will talk about that. I do believe this: We can't keep butter priced out of the market and get it used. I just don't believe that, and something, I think, has to be done. 227

Page  228 Public Papers of the Presidents Q. George Herman, CBS Radio: Mr. President, do you agree with Secretary Wilson that the United States is doing go percent of the atomic bomb rattling in the world? THE PRESIDENT. Well, I don't think I ever make just ordinary generalizations that sound like that. I do deplore any spread of hysterical fear in this world. I think that a mature, intelligent people ought to look at the problems and the threats that face them in the world, do the best they can, and have some confidence in the result. I do deplore, and I think that must have been what Secretary Wilson was trying to say-deploring, let us call it, just spreading of fear. Q. Nat Finney, Buffalo News: Mr. President, some of the reports from Berlin in the early phases of the conference there suggested, it seems to me, that there was some real progress being made on the discussion of your proposal for an atomic pool. Is there any light you can throw on that for us today? THE PRESIDENT. No, not of a particularly detailed kind, at least. I do have, as you would know, I have my daily reports from Secretary Dulles. As I believe I noted last week, he is on the job, the man that enjoys my full confidence. He is doing the best he can to get those agreements of the kind that we believe to be logical and suited to the world situation today, fair to all. Experience has not given any great reason for assuming tremendous successes, but by the same token, I believe we must always keep trying; that is what we are doing. So far as the atomic side of it is concerned, it would always be possible, of course, that some little advance might be made there even in the absence of advances in the wider political problems; but, as of now, I can't even suggest that that might come about. Q. Jack Bell, Associated Press: Mr. President, I would like to get back to the Bricker amendment for just a moment. I wonder if you could tell us whether you have any objections to Senator George's substitute proposal for the Bricker amendment? THE PRESIDENT. Well, I'll tell you, at this moment I am not going to talk about the details of the thing because, as was suggested a few minutes ago, these things are complicated; they are very complicated, and they need long study. Every time something new appears upon the scene, my advisers and I get together. I get people from outside of Government, inside, and 228

Page  229 Dwight D. Eisenhower, I954 they begin to study it. But until meanings are clear and convictions can be formed, why, I wouldn't want to talk on details. Q. Mrs. May Craig, New England Papers: Mr. President, if I may go back to the sabre-rattling, our new look puts our dependence on air power and air power weapons, and it is said that they are deterrents of war. Now, if the enemy gets the idea that we will not use them, will they be a deterrent? THE PRESIDENT. Well, Mrs. Craig, I will tell you: I spent some little time at war, and I don't think that big and bombastic talk is the thing that makes other people fear. I think that a calm going about of your own business, pursuing a steady course, that is the thing that makes him begin to tremble and wonder what you are going to do. Let me point this out: we fought a number of campaigns over in Europe, and I don't recall once issuing a precampaign statement that "we are big and strong and mighty and tough, and we are going to beat somebody's brains out." [Laughter] We went ahead with our job, our preparations, and when it was necessary, then the thing started. Our prayer is now that it will never be necessary to do these things, but we are just going about our business like Americans ought to-I hope. Q. Robert Spivack, New York Post: Mr. President, have you received any preliminary reports yet on the investigation of the high price of coffee, and if so, what they show? THE PRESIDENT. No, I haven't, except what I expressed last week: that they believed from their preliminary investigation there was sufficient evidence to indicate the need for a much broader and deeper one. Q. Paul Leach, Chicago Daily News: Mr. President, there has been considerable criticism in the insurance industry of your reinsurance proposal in the health plan. Is there any indication that that will be modified or changed or dropped? THE PRESIDENT. Not at this moment; it hasn't been suggested to me. In other words, the Secretary of that Department has not come up with any change in plan. Q. Elmer Davis, ABC Television: Mr. President, is there any more information about the 2200? THE PRESIDENT. On this 2200, when I found out some little time ago that you people had a very widespread interest in this thing, I said, "Well, let's take a good look." 229

Page  230 ( 25 Public Papers of the Presidents Here was something that never occurred to me there was going to be this kind of intense interest. We have had several groups since then studying just exactly what we can do, how far we can break these things down, and what information can be put out. When they report to me, I will use some channel to get it to you. Just exactly what the answer is going to be, I don't know. Q. John Herling, Editors Syndicate: Mr. President, this is a question that ties in with the economic side and the human relations side of your program. On the economic side you referred in your message to Congress that this was not the time for raising the minimum wage; it was a matter of timing. Does this mean that you don't plan to recommend a raise in minimum wages while we are holding the present level of unemployment? THE PRESIDENT. Well, I think my Economic Report speaks for itself, and if you take any one of these items out of context and begin to talk about it, you can make it mean anything. I really put in many hours of hard work with my advisers on that Report, and I would respectfully refer you to that Economic Report for what I really believe at this moment about the minimum wage scale. Q. Mr. Herling: Sir, in listing the things that would have to be done in the summary of your Economic Report, the spread of unemployment insurance, and so on, were listed among other things, but minimum wage was not. That is why the question as to whether or not you plan to do something about it this session. THE PRESIDENT. The Economic Report, I think, makes clear that there would be a very great question about the wisdom of such a move at this particular moment when you are going through, inescapably, a transition from a semiwar economy, or even war economy, and all its controls into a freer economy not supported by great munitions expenditures of all kinds. It becomes a question of timing, and I am not so certain that I could describe the exact conditions that would have to be prevailing before you would make this recommendation. But I am certain that everybody studying that report and helping to prepare it does believe that it is through the proper distribution of the profits deriving from our form of industry-the widespread distribution-that the prosperity of this country comes about. They believe in getting that done just as far as it is possible. 230

Page  231 Dwight D. Eisenhower, I954 Q. Mr. Herling: On the human relations side, the Albert Beeson nomination, which is being held up in Congress today, there seems to be a growing doubt in the Senate Labor Committee about how completely Mr. Beeson has severed his relations with his company and the pension plan connected with it. Senator Smith said late last night the White House wants fast action on the nomination one way or the other. Do you have any further or alternative plans in this connection? THE PRESIDENT. I have no plans at all of any kind in this connection. I had my people search for an individual, I had both the Department and the Labor Departments in this particular thing. We searched and we found a man; we talked to him; we thought he was a good man. We think he is a good man. We put him before the Senate, and it is up to them. Q. Ray Scherer, National Broadcasting Company: Mr. President, several top Republicans have suggested that there is something unethical, almost un-American, about using this word "recession" in connection with the present business conditions. What could you say about that? THE PRESIDENT. I hadn't seen those words, at least stated in that way. I think it is a free country; you can use words as you see fit, and attach to them such meanings almost as you see fit. I think we are going through a readjustment that we have had to after every time we have been in one of these emergencies of any kind in our country. You have to go as intelligently as you can, always remembering that the prosperity of this country lies in the prosperity of its masses, not just of the few corporations or anything else like that. That is the policy we are trying to apply. I suppose we have receded from something, because not everything is at its peak today, so you have to use the word as you see fit. I had not heard that particular exhortation. Q. Marvin Arrowsmith, Associated Press: Mr. President, to go back to the first question of the conference, you said you hadn't received a detailed report, a report on this case of the Soviet agent who is missing in Tokyo. Can you say whether he is in American custody? THE PRESIDENT. No, I can't say anything, because it just happens to be one of those things that I have had no report of any kind. I assume that when there is really important information to impart, it will be brought to me. Normally it would, certainly. 23I

Page  232 4 25 Public Papers of the Presidents Q. Harry Frantz, United Press, South American Service: Mr. President, the question may be premature, and I won't press it if you are not prepared, but I just wondered if you are yet ready to give any general indication of your thought and plans with regard to the Tenth InterAmerican Conference at Caracas on March ist? There has even been some speculation that you thought of attending the opening, for example. THE PRESIDENT. It has been discussed often between my principal advisers in those departments and myself, but there has been no feeling so far that we saw a practicable way for me to get down there at the moment. Q. Fletcher Knebel, Cowles Publications: Mr. President, after about a year of these press conferences, what do you think of them? Do you like them or not? [Laughter] THE PRESIDENT. You are getting a little personal around here, aren't you? Well, I'll tell you: I think I told you people the first time we ever had a press conference that over a very considerable period of time in which I have been thrown into more or less intimate contact with the press-and that goes back to '41-I feel that there has been between us existing a very fine relationship, in war and in peace. I have no particular objection even to the so-called needling questions. I think I recognize most of them. [Laughter] And I have got some very good friends. I will tell you frankly that one of the difficulties of the particular job I am on is that lots of good friends I have got among the newspaper people I can't pursue as freely as I could at one time, because it isn't understood you are just meeting a friend; you are meeting a newspaperman, and that becomes something else again. I don't mean to say that I like to give away the time that sometimes these conferences call for, particularly if they come at a very busy period. But all in all, I think I like them; that would be my answer. Q. George Herman, CBS Radio: Mr. President, last week at our conference you expressed interest in a plan for honorable discharges for people in Government employ. Could you tell us if you have inaugurated any study on that subject? THE PRESIDENT. I asked about it, and I meant to ask about it this morning, to see whether we had gotten any place at all, but I just overlooked it. Q. Mr. Herman: You have asked somebody to look into it? 232

Page  233 Dwight D. Eisenhower, 1954 4 25 THE PRESIDENT. Oh, yes; I have asked. Q. Robert Clark, International News Service: Former President Socarras of Cuba was arrested a few weeks ago and accused of trying to smuggle arms out of the United States. We have a Latin-American client who would like to know if his arrest means the United States would not under any circumstances permit the security of another American Republic to be threatened by illegal activities of political exiles? Q. (Several voices): We don't understand the question. THE PRESIDENT. Well, the question is, in general, this: that there was apparently some action taken to prevent suspected export of illegal arms, and the question was, then, did this act mean that the United States would always act in the same pattern in the case of any South American country. Obviously, here is a question that has so many implications you wouldn't even attempt an off-the-cuff, shooting-from-the-hip answer. Actually there was no detailed report made to me on the primary incident and, therefore, I could not certainly reason from there to a policy until I knew all of the facts. I couldn't possibly answer the question at the moment. Q. Edward Milne, Providence Journal-Bulletin: Mr. President, I have my usual poor notes on this, on your answer to the question about the 2200. I have you promising to channel something to us, but I don't understand whether you are going to channel the breakdown to us or whether you are simply going to let us know the decision of your associates. THE PRESIDENT. Well, it could be both-[laughter]-but finally I will tell you what we are going to do about it. Now, you just have to give me a little time. This is an extremely complicated thing. Remember, I insist on one thing: let us not run this Government so as we can throw extraordinary guilt by association or any other way on people that are innocent. At the same time, I am determined that I will not keep people around and give them the privilege of governmental employment if they are security risks. Now, that is all I am trying to do. It takes time to break it down, and you will get an answer when I can give it and as fully as I can give it, and I don't know how fully that will be. Q. Robert Spivack, New York Post: Mr. President, this is a personal question, too, but last week when you were telling us about the coffee 233

Page  234 (1 25 Public Papers of the Presidents situation you said that you were intensely interested, I believe, in it yourself. Can you tell us how you take your coffee, and why? [Laughter] THE PRESIDENT. Well, I'll tell you, you asked one that is a bit too personal for me. I happen to be a rather stubborn individual when I think I am being taken in any way or for any reason. I act in my own life in accordance with my convictions; but one reason I am so intensely interested, I have been one of the great coffee drinkers of the United States all my life-most soldiers are, as you know-so I am very interested in getting this coffee back to a price where I think it is reasonable. Q. Charles von Fremd, CBS Television: Mr. President, I find myself in a quandary regarding Mr. Knebel's question, and I say this with no intention, sir, of being insulting. I wonder, however, if for the sake of the record it might be included that among your friends and the people you would like to get to know better among the newspapermen, if included among them could also be radio and television? [Laughter] THE PRESIDENT. A strange thing about it, some of my best friends have been those people. Merriman Smith, United Press: Thank you, Mr. President. NOTE: President Eisenhower's twenty- IO:59 o'clock on Wednesday morning, sixth news conference was held in the February 3, 1954. In attendance: 155. Executive Office Building from 10:35 to 26 e[ Letter to Walter Reuther, President, United Automobile Workers, CIO, Concerning Economic Growth and Stability. February 3, I 954 [ Released February 3, I 954. Dated February I, I 954] Dear Mr. Reuther: I have now had an opportunity to read very carefully your letter of January thirteenth reviewing current economic conditions and renewing your proposal for a national conference on employment. To protect and promote economic stability, we have taken and will continue to take bold steps. The Administration has now outlined a program which, taken in its entirety, is designed to sustain a high level of production and employment throughout our economy. I am well aware of those areas presently experiencing certain economic hardships during 234

Page  235 Dwight D. Eisenhower, I954 (t 26 this transitional period. From the point of view of Federal action, I believe that the most important attack on these situations is from the standpoint of fostering the over-all health and vitality of our economy. It is with that principle in mind that the economic program of this Administration has been formulated. Consultation with respect to the various parts of the Administration's program has, of course, been widespread. Continuing steps have been and are constantly being taken to re-examine the policies of the Federal Government affecting economic growth and stability. Special inquiries have been made and are being made into the problems of agriculture, housing, foreign economic policy, taxation, and the relations between Federal, State and local governments. I am gratified to know that you and other members of your group have discussed various aspects of economic growth and stability with the Council of Economic Advisers and with others in the Executive Branch. I hope that such consultations will continue on the wide range of problems that face us. At the present time, I believe this is the most fruitful method of pooling the ideas and experience of all segments of our population. While we must recognize and seek to deal with particular instances of economic hardship as they arise, it is essential to the achievement of greater national economic strength to maintain a steady, unshakable attitude of public confidence in the capacity of the American economy for continued growth. All of our citizens in positions of leadership have the responsibility of placing in the proper perspective transitional periods such as we are presently passing through. It is my deep conviction that we can make the transition, now underway, from a wartime to a peacetime economy without serious interruption in our growth as a nation or in the improvement of the living standards of our people. Government policy is now geared to decreasing the difficulties incident to this transition and to strengthening the weapons necessary for this task. The Economic Report of the President, which was transmitted to the Congress on January twenty-eighth, sets forth and defines an affirmative and constructive overall approach to the problem of creating conditions favorable to sustained economic growth. We shall continue to pursue this objective with unrelenting determination. Sincerely, DWIGHT D. EISENHOWER 235

Page  236 my 2 7 Public Papers of the Presidents 27 eJ Veto of Bill Authorizing Commemorative Coinage for the Tercentennial Celebration of the City of Northampton, Massachusetts. February 3, 1954 To the United States Senate: I am returning herewith, without my approval, S. 987, "To authorize the coinage of 5o-cent pieces in commemoration of the tercentennial celebration of the founding of the city of Northampton, Massachusetts." The proposed legislation would authorize the coinage of one million silver 5o-cent pieces in commemoration of the tercentennial celebration of the founding of the city of Northampton, Massachusetts. The principal objection to commemorative coins is that they detract from the fundamental function of the coinage as a medium of exchange. Multiplicity of designs on United States coins would tend to create confusion among the public, and to facilitate counterfeiting. The Congress recognized the necessity for limiting the designs of coins by section 35IO of the Revised Statutes which provides that: "... no change in the design or die of any coin shall be made oftener than once in twenty-five years from and including the year of the first adoption of the design, model, die, or hub for the same coin:. I am further advised by the Treasury Department that in the past in many instances the public interest in these special coins has been so short-lived that their sales for the purposes intended have lagged with the result that large quantities have remained unsold and have been returned to the mints for melting. I fully recognize the importance to the country of the event which this coin would commemorate. I recognize, too, that the authorization of one or two or three of such issues of coins would not do major harm. However, experience has demonstrated that the authorization of even a single commemorative issue brings forth a flood of other authorizations to commemorate events or anniversaries of local or national importance. In the administration of President Hoover, these authorizations multiplied to the point where he felt compelled to exercise his veto. The same pattern recurred in the administrations of Presidents Roosevelt and Truman. In view of this historical pattern, which by now has become 236

Page  237 Dwight D. Eisenhower, 1954 (f 28 so clear, I think that it is both wiser and fairer to make known my views on this subject at the outset. I therefore regretfully withhold my approval of S. 987. As has been suggested in the past, it seems to me wholly appropriate that anniversaries like this one, which the Congress deems it desirable to commemorate, should be recognized by bills authorizing the Treasury to provide suitable commemorative medals at cost. DWIGHT D. EISENHOWER 28 tI Veto of Bill Authorizing Commemorative Coinage for the Tercentennial Celebration of the City of New York. February 3, I 954 To the United States Senate: I am returning herewith, without my approval, S. 2474, "To authorize the coinage of 5o-cent pieces to commemorate the tercentennial of the foundation of the city of New York." The proposed legislation would authorize the coinage of not to exceed five million silver 5o-cent pieces in commemoration of the tercentennial of the founding of the city of New York. The principal objection to commemorative coins is that they detract from the fundamental function of the coinage as a medium of exchange. Multiplicity of designs on United States coins would tend to create confusion among the public, and to facilitate counterfeiting. The Congress recognized the necessity for limiting the designs of coins by section 35IO of the Revised Statutes which provides that: "... no change in the design or die of any coin shall be made oftener than once in twenty-five years from and including the year of the first adoption of the design, model, die, or hub for the same coin:... " I am further advised by the Treasury Department that in the past in many instances the public interest in these special coins has been so shortlived that their sales for the purposes intended have lagged with the result that large quantities have remained unsold and have been returned to the mints for melting. I fully recognize the importance to the country of the event which this coin would commemorate. I recognize, too, that the authorization of one 237

Page  238 <f 28 Public Papers of the Presidents or two or three of such issues of coins would not do major harm. However, experience has demonstrated that the authorization of even a single commemorative issue brings forth a flood of other authorizations to commemorate events or anniversaries of local or national importance. In the administration of President Hoover, these authorizations multiplied to the point where he felt compelled to exercise his veto. The same pattern recurred in the administrations of Presidents Roosevelt and Truman. In view of this historical pattern, which by now has become so clear, I think that it is both wiser and fairer to make known my views on this subject at the outset. I therefore regretfully withhold my approval of S. 2474. As has been suggested in the past, it seems to me wholly appropriate that anniversaries like this one, which the Congress deems it desirable to commemorate, should be recognized by bills authorizing the Treasury to provide suitable commemorative medals at cost. DWIGHT D. EISENHOWER 29 J4 Veto of Bill Authorizing Commemorative Coinage for the Sesquicentennial of the Louisiana Purchase. February 3, I954 To the House of Representatives: I am returning herewith, without my approval, H.R. 917, "To authorize the coinage of 5o-cent pieces to commemorate the sesquicentennial of the Louisiana Purchase." The proposed legislation would authorize the coinage of not to exceed two and one-half million silver 5o-cent pieces in commemoration of the one hundred and fiftieth anniversary of the Louisiana Purchase. The principal objection to commemorative coins is that they detract from the fundamental function of the coinage as a medium of exchange. Multiplicity of designs on United States coins would tend to create confusion among the public, and to facilitate counterfeiting. The Congress recognized the necessity for limiting the designs of coins by section 351I of the Revised Statutes which provides that: "... no change in the design or die of any coin shall be made oftener than once in twenty-five years from and including the year of the first adoption of the design, model, die, or hub for the same coin:... 238

Page  239 Dwight D. Eisenhower, 1954 (I 30 I am further advised by the Treasury Department that in the past in many instances the public interest in these special coins has been so short-lived that their sales for the purposes intended have lagged with the result that large quantities have remained unsold and have been returned to the mints for melting. I fully recognize the importance to the country of the event which this coin would commemorate. I recognize, too, that the authorization of one or two or three of such issues of coins would not do major harm. However, experience has demonstrated that the authorization of even a single commemorative issue brings forth a flood of other authorizations to commemorate events or anniversaries of local or national importance. In the administration of President Hoover, these authorizations multiplied to the point where he felt compelled to exercise his veto. The same pattern recurred in the administrations of Presidents Roosevelt and Truman. In view of this historical pattern, which by now has become so clear, I think that it is both wiser and fairer to make known my views on this subject at the outset. I therefore regretfully withhold my approval of H.R. I917. As has been suggested in the past, it seems to me wholly appropriate that anniversaries like this one, which the Congress deems it desirable to commemorate, should be recognized by bills authorizing the Treasury to provide suitable commemorative medals at cost. DWIGHT D. EISENHOWER 30 eJ Letter to Frederic L. Vorbeck, Executive Chairman, United Catholic Organizations for the Freeing of Cardinal Mindszenty. February 4, I954 [ Released February 4, 1954. Dated February i, 1954] Dear Mr. Vorbeck: I have your telegram of January twenty-third on behalf of the United Catholic Organizations for the Freeing of Cardinal Mindszenty. We in the free world have not forgotten that this is the fifth anniversary of 239

Page  240 (e 30 Public Papers of the Presidents Cardinal Mindszenty's trial and imprisonment by the Communist authorities in Hungary. The unjust nature of the proceedings against Cardinal Mindszenty is, of course, well known to the American people. They regarded the attack upon him as a blow against religious freedom in Hungary and an unprincipled attempt to destroy spiritual and moral influences in that country. The Communist assault upon religious liberty and leadership in Hungary has failed, however, to turn the Hungarian people from their faith in God. The plight of Cardinal Mindszenty and of other churchmen who have suffered at the hands of the Communists has not been forgotten. Their situation continues deeply to concern the people of Hungary and to evoke the sympathy of the free world. Despite the constraints of person and silence imposed on Cardinal Mindszenty and other church leaders by their persecutors, the spirit of these men has defied confinement by the totalitarian State. It has become, indeed, a symbol of faith and freedom for our times. Sincerely, DWIGHT D. EISENHOWER 3' 4I Remarks at the LincolnDayBoxSupper. February 5, I954 Mr. Vice President, Members of the Cabinet, and Members of the Senate and of the House of Representatives, guests from all over this country, and their ladies and wives, and my very dear-all of youRepublican friends: In first attempting to acknowledge my very deep appreciation of the cordiality of your welcome, might I say, first that I have had a great inspiration over the past year in working with the representatives, legislative and executive, that you people have sent here to Washington. It has been a great privilege to work with individuals who are dedicated to the good of America, and place America above all personal or other gain. It is a great privilege to address each of you, the people who throughout this land believe as we do, who support us with your hearts, with your 240

Page  241 Dwight D. Eisenhower, 1954 voices, with everything that you have, to make certain that America is going to consistently grow stronger and better-spiritually, intellectually, economically, militarily. It was only a bit more than four score and ten years ago that a very great man said, "Four score and seven years ago our fathers brought forth upon this continent a new nation, conceived in liberty, and dedicated to the proposition that all men are created equal." Now, as he ended that great speech, a classic not only in the English language but in philosophical thought, Abraham Lincoln said that "government by the people and for the people and of the people shall not perish from the earth." That was his philosophy. He uttered those words in a time of crisis. He dedicated his whole being to that one thought, that government by the people and for and of the people should not perish. He endured every indignity. We think of him today as a great leader. Yet he offered to hold McClellan's horse if McClellan would win a victory. There was nothing, no sacrifice he would not make to say we will preserve this nation as it has existed for four score and seven years. Now, in his time, the threat was a physical one-physical disunion of this great United States. But, my friends, he was only voicing a thought, he was only crystallizing a threat that has been with every type of free government since free government was first conceived. Always there is the struggle between domination by the few, and government of themselves by the many. And he was determined it should not perish. And in every age and every time, there have been people so dedicated. And it is for that reason that free government exists today. And we are no different from those who have gone before us. We in our time must make certain that the genius of the Constitution and of our government shall not perish, that it shall belong to the young and to those who come after us in the same general form that it has been received by us. Now, in doing this, Abraham Lincoln said something else of a very profound character. "The legitimate function of government," he said, "is to do for the individuals what they cannot do for themselves, or cannot so well do for themselves." In this we find the expression of his great heart, his determination that government should be interested in people, in that person's disasters, in their privileges, in their rights. Everything that went to enrich their life or to damage that life was a legitimate con 241

Page  242 (I 3I Public Papers of the Presidents cern of government, and when necessary, government would directly intervene. So that here we have, really, the compound, the overall philosophy of Lincoln: in all those things which deal with people, be liberal, be human. In all those things which deal with the people's money or their economy, or their form of government, be conservative-and don't be afraid to use the word. And so today, Republicans come forward with programs in which there are such words as "balanced budgets," and "cutting expenditures," and all the kind of thing that means this economy must be conservative, it must be solvent. But they also come forward and say we are concerned with every American's health, with a decent house for him, we are concerned that he will have a chance for health, and his children for education. We are going to see that he has power available to him. We are going to see that everything takes place that will enrich his life and let him as an individual, hard-working American citizen, have full opportunity to do for his children and his family what any decent American should want to do. And so, my friends-by the way, you know, I wasn't supposed to make a speech, I was supposed to get up and greet you and sit down. [Applause] Now I am puzzled, I don't know whether you meant it would be a good idea to sit down or not. [Laughter] But let me bring this thought to you. This is really what I want to say: What a glorious challenge we have, what a privilege to live in this time. We know these threats to our system from abroad. We know those things that we have seen happening from within that have alarmed us. Let us be courageous. Let us lift our chins, our heads, and square our shoulders, and walk right square into it like Lincoln would have walked into it. Let us not be afraid to be humble, as he was humble when it was necessary. But let us-when it comes down to the basic purpose of the Republican Party: to preserve this Nation as it has existed, and to make government serve the needs of all our people, no matter in what way that needs to be done-let us be just as courageous as Lincoln was courageous as he met the problems of 4 years of dreadful civil war, with brother against brother, with state against state. If we meet it in that way, it seems to me we will meet it almost with 242

Page  243 Dwight D. Eisenhower, 1954 At 32 delight-with happiness that it has been given to us, in our time, to serve our country. Those men who fought on the battlefields of Gettysburg served their country, whichever side they were on. They believed in something. They did it to the utmost of their ability. If we would do it in that way, we don't have to listen to the prophets of gloom who say that we are going to go into this or that kind of a stumble or fumble or fall. The United States doesn't need to fall. The reason I believe in the Republican Party is because I believe it is the best political instrument available in this country to serve the United States in this kind of objective: for making certain that every individual American, whatever his station, will recognize that he has the opportunity of a free citizen, to make for himself what he can, and he will have a sympathetic partner-a big-brother partner, in the Federal Government; and that this Nation will persist in the kind of nation that was designed by our forefathers and in which it is now our great privilege to live. Now, my friends, you have done me a great honor by asking me here, allowing me to address these few thoughts to you. I wonder whether before we break up this party, you would like me to go over and bring my Mamie to greet you? NOTE: The President spoke at the Uline Arena in Washington at io:oo p.m. 32 eI Remarks Broadcast as Part of the American Legion "Back to God" Program. February 7, 1954 AS A FORMER SOLDIER, I am delighted that our veterans are sponsoring a movement to increase our awareness of God in our daily lives. In battle, they learned a great truth-that there are no atheists in the foxholes. They know that in time of test and trial, we instinctively turn to God for new courage and peace of mind. All the history of America bears witness to this truth. 243

Page  244 Public Papers of the Presidents Out of faith in God, and through faith in themselves as His children, our forefathers designed and built this Republic. We remember from school days that, aboard a tiny ship of destiny called the Mayflower, self-government on our continent was first conceived by the Pilgrim Fathers. Their immortal compact began with the words, "In the name of God, Amen." We remember the picture of the Father of our Country, on his knees at Valley Forge seeking divine guidance in the cold gloom of a bitter winter. Thus Washington gained strength to lead to independence a nation dedicated to the belief that each of us is divinely endowed with indestructible rights. We remember, too, that three-fourths of a century later, on the battletorn field of Gettysburg, and in the silence of many a wartime night, Abraham Lincoln recognized that only under God could this Nation win a new birth of freedom. And we remember that, only a decade ago, aboard the transport Dorchester, four chaplains of four faiths together willingly sacrificed their lives so that four others might live. In the three centuries that separate the Pilgrims of the Mayflower from the chaplains of the Dorchester, America's freedom, her courage, her strength, and her progress have had their foundation in faith. Today as then, there is need for positive acts of renewed recognition that faith is our surest strength, our greatest resource. This "Back to God" movement is such a positive act. As we take part in it, I hope that we shall prize this thought: Whatever our individual church, whatever our personal creed, our common faith in God is a common bond among us. In our fundamental faith, we are all one. Together we thank the Power that has made and preserved us a nation. By the millions, we speak prayers, we sing hymns-and no matter what their words may be, their spirit is the same-"In God is our trust." NOTE: The President's remarks were p.m. as part of an American Legion probroadcast from the White House at 2:30 gram originating in New York City. 244

Page  245 Dwight D. Eisenhower, 1954 49 33 33 ~1 The President's News Conference of February IO, I954. THE PRESIDENT. Good morning. One or two little items that may be of some interest: First, I hope you will allow me to welcome here a group of press people, press representatives, from the NATO countries. I assume that among them are people I have met many times before during my travels about Europe; anyway, I am glad you are here. I saw some rumors that the Government was intending to increase the interest rates on these Rural Electrification Administration loans. That is not true. I told you last December that there would soon be two divisions returning from Korea, if there were no great change in the situation. We expect that very soon the 45th Division will start back, and a little later on the 4oth; two National Guard Divisions-the 45th largely from the Oklahoma area, and some other units in it; and the 40th from California. I think the first one will be here in the middle of April, and the next one about the middle of June. It gives me an opportunity again to pay tribute to these National Guard units who keep themselves organized, their staffs and commanders trained in time of peace, and ready to operate in an emergency. It is part of our reserve element and, of course, very necessary. As you know, under the law there would normally come about soon a half-cent reduction in the Federal tax on gasoline. You also know in the statements already made that the administration hopes to keep that halfcent tax in order to push the good roads program throughout the United States. In the past, not all of this money has been put out on road construction in matching funds with the States. We hope to do it with all of it, and if we are successful, it will increase the Federal participation, I think, by some $225 million on a matching basis with the States. There is a Cougar Dam on the McKenzie River. There is a little statement that has been written about it, a very short one, and you will find it outside when you go out. It was merely a statement because it more or less exemplifies the thing we have been talking about quite a while, participation by local communities, municipalities, States, and so 51986-60 —19 245

Page  246 (l 33 Public Papers of the Presidents on, with the Federal Government in these great developments when such participation is feasible and possible. Now, that covers the few little statements I had, so we will start with questions. Q. Merriman Smith, United Press: Mr. President, the Democrats on Capitol Hill say that bipartisan support of certain portions of your program have been endangered by certain statements which have been made by members of the administration, statements ranging from the fact that the Democrats were soft toward subversives in the Government, to labels of political sadism. The Democrats have asked or suggested that you stop the statements; and we wondered if you could discuss the situation in general terms for us. THE PRESIDENT. Well, I think, first of all, it is quite apparent that I am not very much of a partisan. The times are too serious, I think, to indulge in partisanship to the extreme, and I quite cheerfully admit that there must be Democratic support for the enactment of certain parts of the program. I believe Senator Knowland has often described himself as a majority leader without a majority in the Senate, so it is obvious that if these things are to become law there will have to be some support from the Democratic side. This one thing, I believe, I can say without appearing to be pontifical or particularly "stuffed shirt" about it: we have, and I have, tried to desperately draw up a program that seems to me to be good for all Americans, which includes Democrats. I don't expect any Democrat to support any program because he happens to be a friend of mine-and I have many friends among them, as some of you would know. I have tried to put out a program that is good for the United States, and it is on that basis that I appeal for help. I know of no way in which the Chief Executive could stop this kind of thing except among the members of his own executive family, and I must say again that in this region, I have my own doubts that any great partisanship displayed by members of the executive department is really appropriate in this day and time. Now, there have been from the beginning of parties intemperate statements. They have been hurled back and forth. We seem to survive them and they seem to roll off the backs of political people, after the first flurry is over. I am often amazed when I read some of the statements that were made about Washington even before there were political parties. 246

Page  247 Dwight D. Eisenhower, I954 (I 33 If you will look up and read what was said of him in his second administration, where they called him a tyrant, a betrayer of the people, a seeker after a gilded throne on which he wanted to establish a royal dynasty, and so on, these things have been going on a long time. I don't believe in bitter partisanship. I never believe that all wisdom is confined to one of the great parties; and I certainly have never, in general terms, criticized the other party, that is, to include its great membership. I believe there are good Americans in both parties, and I believe that the great mass of both parties is fundamentally and naturally sound. Q. Anthony Leviero, New York Times: Mr. President, isn't it preaching a kind of class warfare for Republican leaders to suggest that all Democrats, whether they are private citizens or officials, whether they are Senators or office holders, suggest that they are tinged with treason or that they are all security risks, without distinction? That is what has been going on. THE PRESIDENT. You say that is what's been going on? I have seen no such statement; but if any such statement is made, I would consider it not only completely untrue, but very unwise-I mean even from a political partisan standpoint. Who would be so foolish as to call all of another great group treasonous to the United States of America? After all, they fought for America. Q. William Flythe, Hearst Newspapers: Mr. President, may I ask you about Indochina, sir, if you would care to say anything? THE PRESIDENT. As I told you last week-I believe I told you last week, didn't that subject come up? I said we had increased the technical side of the training units you send out there. I forget the technical name for them-the training and administrative units that turn over the equipment, and so on-MAAGs, we call them. We have increased that. Now, recently, some of our equipment shipped to Indochina has involved airplanes, and they just didn't have the people to take care of them. So we increased that particular body by some airplane mechanics, who are to be returned from there no later than June 5th. Q. Mr. Flythe: Mr. President, I wanted to ask you, if I might, if these people could be considered in any way combatant troops? THE PRESIDENT. No, they are not only maintenance troops, but I see no opportunity of them even getting touched by combat. Q. Roscoe Drummond, New York Herald Tribune: Mr. President, 247

Page  248 4f 33 Public Papers of the Presidents would you say it would be accurate for us to construe your answer to Mr. Merriman Smith about partisanship as meaning that you would counsel officials of the executive branch of the Government not to engage in extreme partisanship? THE PRESIDENT. That is correct. Q. Alan Emory, Watertown Times: Sir, following up Mr. Leviero's question about specific comments from Republicans about the Democrats, I wondered if you would care to comment on these specific statements: one, by a Republican Senator, "that the label 'Democrat' was stitched with the idiocy of a Truman, rotted by the deceit of an Acheson, corrupted by the red slime of a White"; and second, by another Republican Senator, that "the Republicans, when they took over, had found heaps of evidence of treason in the previous administration, and that the Democrats had tampered with the security of the United States." THE PRESIDENT. Well, I will not comment on anybody's statement as such. I will not engage in personalities, and I think I have stated my position quite clearly as to what I think. I believe this: I believe that the ordinary American is capable of deciding what is temperate and just in fact, and what is just indulging in language for no good purpose that I can see. Q. Ethel Payne, Defender Publications: Mr. President, last Friday evening at the Lincoln Day box supper at the Arena, the Howard University choir, which was scheduled to sing, was barred from the hall by District police. THE PRESIDENT. Who? Q. Miss Payne: The Howard University choir, even though they had their instructions, and had followed out those instructions. Consequently, they were forced to return to the campus without appearing on the program; but, in the meantime, two other singing groups, the Duke and Emory University Glee Clubs were admitted without incident. I wonder if you had been informed of that, and if you had looked into it. THE PRESIDENT. I not only had not been informed of it-[confers with Mr. Hagerty]-I am just told, for the first time that I have heard about this, I am told by Mr. Hagerty that the bus driver was instructed to go around to the door by which I entered, and he refused to go around to that place. I hope there is no connection between those two facts. [Laughter] But anyway, that is just what I have been informed. 248

Page  249 Dwight D. Eisenhower, 1954 (q 33 I would say this: if that choir was barred by the reason that you seem to fear, of anything about race or of color or anything of that kind, I will be the first to apologize to them. I just don't believe that could have happened. Q. Pat Munroe, Albuquerque Journal: Mr. President, further on the question of bipartisanship, Senator Anderson, perhaps the best friend of your farm program in Congress, is up for reelection, and his probable opponent will be a rather conservative Republican, Governor Mechem. They are saying there that you will probably stay out of the State entirely in the course of the campaign. I think we need a refresher on your plans for helping individuals-helping the Republican ticket in general, this November. THE PRESIDENT. I have nothing to say on it except to repeat what I said a long time ago. I believe it was before one of our conferences: I am not going into any State and I am not going to participate in local contests. I think that as President I have really no right to do so. Q. Robert Richards, The Copley Press: Anent that partisan fight, would you say, one, that it is possible to frighten the country into a depressionTHE PRESIDENT. I don't think I heard you start the question. Q. Mr. Richards: I say, would you say, one, it is possible to frighten the country into a depression; and, two, that efforts to frighten it were of political motivation? THE PRESIDENT. I think it would be possible to mislead and, to a certain extent, frighten the country; not into a major depression, I doubt that. But I do believe you could have a recession brought about by such statements. On the other hand, I have in the past few months noticed statements that were attributed to at least people of more than one party in this respect, and I believe I will comment on that no more than I have. I don't want to violate my own ideas of fairness. Q. William Dickinson, Philadelphia Bulletin: Sir, would you permit direct quotation of your answer to Mr. Smith's question, the first one of the conference? THE PRESIDENT. I wouldn't without taking a look at it. I don't recall the question and I don't recall my answer. But I just believe that the procedures of these conferences have to be observed rather closely or they will become something other than what they are. I hope you don't want 249

Page  250 Public Papers of the Presidents me to come in here and begin to think of my grammar and rhetoric and all the rest of it in answering your question, so I would want to take a look. Q. Marvin Arrowsmith, Associated Press: Mr. President, to go back for a moment to that question on Indochina, there seems to be some uneasiness in Congress, as voiced by Senator Stennis for one, that sending these technicians to Indochina will lead eventually to our involvement in a hot war there. Would you comment on that? THE PRESIDENT. I would just say this: no one could be more bitterly opposed to 'ever getting the United States involved in a hot war in that region than I am; consequently, every move that I authorize is calculated, so far as humans can do it, to make certain that that does not happen. Q. Hazel Markel, Mutual Broadcasting System: Mr. President, there is a report that there has been rather heavy mail at the White House concerning the appointment of a woman to the White House staff. I would like to ask if the mail has been heavy on that score, and if there is consideration being given to such an appointment. THE PRESIDENT. Well, if there is, I haven't seen it. Now, I don't want to answer your question with just a flat "no" for this reason: as you know, the mail all comes to a great place and it is sorted and segregated and I get my portion of it. I have seen none of it; but I would say and repeat again: I look for brains and ability where I can find it, and if I can find it among the women, I would certainly like to see one of them around here, in one of those important positions. Q. Joseph Slevin, New York Journal of Commerce: Mr. President, I would like to get back to your highway program announcement at the beginning of the session. You said you hoped to increase, as I understood it, Federal participation by $225 million. THE PRESIDENT. Well, only in this way: there had been certain of the funds withheld apparently, maybe because the States didn't match them. I am not quite sure of all the facts, but we do hope to step up this program from around $675 million to about $900 million. [Addresses Mr. Hagerty] Isn't that correct? Mr. Hagerty: That is correct. THE PRESIDENT. That is correct, about $900 million. Q. Mr. Slevin: Is that in addition to the amount programed in your budget when it went to the Congress? 250

Page  251 Dwight D. Eisenhower, I954 'y 33 THE PRESIDENT. The amounts are not programed, except as I spoke of the tax, the cent and a half excise tax, as opposed to two cents. Q. Mr. Slevin: Is this $225 million in addition? THE PRESIDENT. The $225 million would be in addition to the one and a half cent yield. You would get a 2 percent yield, which would altogether run aboutQ. Mr. Slevin: I am afraid I didn't make myself quite clear. I meant would the $225 million of Federal expenditures be in addition to the amount the budget said the Federal Government would spend in the next fiscal year? THE PRESIDENT. As a matter of fact, I have forgotten the item that the Federal budget itself said. I don't believe we gave a specific figure, exact figure, on that, because I thought it was dependent on the amount collected by the tax. I will look up the point and tell you about that. Q. Will Muller, Detroit News: Mr. President, Detroit, the day before yesterday, was declared a surplus labor area. Do you plan that your order channeling set-asides into surplus labor areas will apply to Detroit, and there will be some relief there in the automotive industry? THE PRESIDENT. Well, so far as this system gives any relief at all, it goes to every section of the country without exception, provided that the conditions are met. They are, in my mind, very strict conditions. If they are met, why, they would go to Detroit as well as any place else, I suppose. Q. Edward Milne, Providence Journal-Bulletin: Mr. President, Chairman Wiley of the Foreign Relations Committee urged quite strongly in the Senate on Monday that the whole question of a treaty powers amendment be referred either to a congressional committee or to a Presidential commission for study. Senator Knowland, however, is trying to push ahead with an amendment to be written, as he said, on the floor at this session. Which course do you favor? THE PRESIDENT. Well, I have had my say, in general, on this whole business of amending the Constitution. As you know, I have no official role in the amending of our Constitution. When an amendment is approved by two-thirds of each House, it goes to the States, and that is that. Now, as to the procedures that they follow down there, I will leave it to them. I am not going to participate in that. Q. Mr. Milne: Could I just pursue the question for a moment? Several weeks ago, when the Bricker amendment, as such, was the pending 25I

Page  252 q 33 Public Papers of the Presidents business before the Senate, you made it extremely plain that you were opposed to the Bricker amendment. The pending business, when the Senate returns to the amendment next week, will be the KnowlandSaltonstall-Millikin, and one other Senator's name was attached, Senator Ferguson. I wonder, sir, whether or not you approve that amendment which has been spoken of, at least informally, as an administration amendment? THE PRESIDENT. Well, as you know, my position was always that there was a certain-normally kept in section i-that no agreement, no treaty, can be in opposition, or if it is in opposition to the Constitution, have any effect. I have always thought that was the amendment that would reassure the American people, and nothing else was really necessary. I have examined many, many versions, and where they don't seem to transcend that purpose, in substance, I have not objected. That is all. I have just objected to those things that I believe would hamper the President and the State Department in carrying on the foreign relations of this country, or where there would be an upsetting of the balance of powers established by the Constitution. Q. Glenn Thompson, Cincinnati Enquirer: Back to the road moneyTHE PRESIDENT. To the what? Q. Mr. Thompson: To the road money. Q. Sarah McClendon, El Paso Times: Highway money. Q. Merriman Smith, United Press: Highway money. THE PRESIDENT. Oh, yes. Q. Glenn Thompson, Cincinnati Enquirer: Yesterday Congressman McGregor introduced a bill in the House which would increase the Federal contribution to highway building not by $225 million but by $289 million. He described his bill as introduced for the administration. I wondered if your statement of $225 million is an intentional change from that bill? THE PRESIDENT. Well, the figure that they gave me this morning was 250, and I was merely trying to be conservative. [Laughter] I don't know exactly what the amount is. Q. Mr. Thompson: Mr. President, may I ask what the administration's position is- 225, 250, or 289? 252

Page  253 Dwight D. Eisenhower, 1954 4l 33 THE PRESIDENT. Well, as a matter of fact, I came in here to talk to you about a principle based on a %2-cent tax; I don't know exactly what the figure is, and I can't be expected to know. Now, I am going to look it up. Q. James B. Reston, New York Times: Sir, in one of these meetings I believe you referred to your responsibilities as head of the Republican Party. I wonder if you would discuss with us how far those responsibilities cover the activities of the Republican National Committee? THE PRESIDENT. Well, by organization they don't control it at all. What the President's responsibility as head of the party requires is that he devise a program that is in general conformity with the platform of his party, and that he do his best to get it enacted into law. I think that would be the simplest way to state his major party responsibility. Now, all parties are organized for business purposes, as you know, in a very detailed way. They head up into the Chairman of the National Committee, and the Chairman of the National Committee is never appointed, as again you well know, without consulting the President as to whether such and such a man is acceptable to him in that position. But as far as actually directing the affairs of that body, he has no official position whatsoever. Q. Mr. Reston: I was thinking, sir, of your statement, for example, this morning, suggesting or counseling tolerance upon members of your administration. Would you expect the Chairman of the Republican National Committee to follow such advice? THE PRESIDENT. Yes, I would. Q. Daniel Shorr, CBS Radio: Mr. President, should your remarks on Indochina be construed as meaning that you are determined not to become involved or, perhaps, more deeply involved in the war in Indochina, regardless of how that war may go? THE PRESIDENT. Well, I am not going to try to predict the drift of world events now and the course of world events over the next months. I say that I cannot conceive of a greater tragedy for America than to get heavily involved now in an all-out war in any of those regions, particularly with large units. So what we are doing is supporting the Vietnamese and the French in their conduct of that war; because, as we see it, it is a case of independent and free nations operating against the encroachment of communism. 51986-60 20 253

Page  254 Public Papers of the Presidents Q. Mrs. May Craig, New England Papers: Mr. President, a member of the Senate Armed Services Committee says he fears we are inching our way into war in Indochina, and that the Senate Armed Services Committee was not informed of the sending of additional technicians. Could you tell me to what extent you feel that you are bound to inform the Senate Armed Services Committee of your movements? THE PRESIDENT. Well, I have not heard of this statement you made, and I should like very much to see and talk to that individual before I speak further, because I make no charges. I do know this: we try in every significant event that takes place in our international relationships to inform the proper people in the Senate and House-leadership, chairmen, and so on-before we do it, so that they know what's going on. There is no attempt here to carry on the affairs of America in a darkened room. One thing we must never forget: in the touchiness of today, everything you do has certain risks. Even when we try to give some food to some starving people there was risk in it-we were warned that there would be the gravest consequences likely to follow from such a thing. Everything you do has its certain risks. Knowing that, we try to keep people informed; and if someone told you that, well, it doesn't agree with my understanding and, therefore, I would want to talk to that person. Q. Charles Bartlett, Chattanooga Times: Mr. President, leading Republicans down in Tennessee seem to have the idea that you have decided against reappointing Gordon Clapp as Chairman of TVA. I wonder if you could give us some direct insight into that? THE PRESIDENT. Well, to start with, the answer to that is simple: with respect to the appointments of personnel, you never make a statement until the appointment is announced. You never make a statement about such things; so I am sorry, I can't comment on it. Q. Sarah McClendon, El Paso Times: I believe, sir, that you had some conversations with the Mexican Ambassador last week. I wonder if you discussed the Mexican labor question? And did he say that a unilateral agreement whereby the United States brings in Mexico would endanger our good relations with that country? THE PRESIDENT. He just came to ask that certain friendly talks that were going on between us be resumed, and I agreed instantly. Q. Robert Spivack, New York Post: Mr. President, following up Mr. Reston's question, last Sunday night Leonard Hall said over a TV 254

Page  255 Dwight D. Eisenhower, 1954 (I 33 program that the Republican National Committee was underwriting Senator McCarthy's tour across the country, and that this constituted an endorsement, and that he considered the Senator an asset. This was after the Senator had described the two previous administrations as "twenty years of treason." Do you approve of underwriting the tour or agree with Mr. Hall? THE PRESIDENT. I don't think my approval or disapproval here is needed, and I am not going to comment any further on that. Particularly, I have said many, many times that I am not going to talk about anything where personalities are involved; I will not do it. Q. Clayton Knowles, New York Times: Mr. President, you asked for statehood for Hawaii, and it looks like you are going to get it. There is a bill out in the Senate; but there are also bills reported in both the Senate and House for statehood for Alaska. Do you think the time is ripe for Alaskan statehood, as well? THE PRESIDENT. These things are now separated on the Hill where they are still under discussion. I think rather than start a debate in this body on the same questions, I will wait until they decide; then, if you want to ask me a question again, I will talk about it. Q. Ray Scherer, National Broadcasting Company: Mr. President, would you give us any inkling of any travel plans you might have in the near future? THE PRESIDENT. What? Q. Mr. Scherer: Travel plans, plans to be out of the city. THE PRESIDENT. I hope to spend next Saturday out of this town. [Laughter] I hope that I will get a chance to go shooting. As you know I went to Europe; I haven't been shooting for 3 years, and I want to see whether I can hit a quail, if that is possible. If I go, I shall go to Secretary Humphrey's farm down in Georgia. That is still hopefully in my plans. Q. Edward Milne, Providence Journal-Bulletin: Mr. President, I think there has been some oversight here, and nobody has raised the question about 2200 security risks. [Laughter] THE PRESIDENT. You have raised it, and I will let you discuss it. [Laughter] Merriman Smith, United Press: Thank you, Mr. President. NOTE: President Eisenhower's twenty- I Io0 o'clock on Wednesday morning, seventh news conference was held in the February io, 1954. In attendance: 204. Executive Office Building from I0:30 to 255

Page  256 Public Papers of the Presidents 34 4i Statement by the President on the Participation by Eugene, Oregon, in the Multiple Purpose Development of the McKenzie River. February I 0, I 954 BY JOINING with the Federal government in the multiple purpose development of the McKenzie River, the City of Eugene, Oregon, is pioneering in the new concept of power development in the Pacific Northwest. I have had an opportunity to study the program which the Eugene Water and Electric Board and the Corps of Engineers have jointly developed. Under the plan, the Federal government will undertake the construction of flood control works on the McKenzie and the City will underwrite the cost of construction of power facilities and transmission lines. This program, when carried to a successful conclusion gives the local people a responsibility in the important development work. It is true partnership and conforms to the power policy of this Administration. Legislation has been introduced by Senator Cordon and Congressman Ellsworth to carry this policy into effect. NOTE: The President referred to S. 2920 and H.R. 7815, introduced on February 9. 3 5 eJ Letter to Governor Thornton, Chairman of the Governors' Conference I954, Proposing a Visit to Korea by a Select Group of Governors. February I 1, 1954 [ Released February i i, 1954. Dated February 9, I 9541 Dear Dan: Our country, as you know, has an important stake in the fortunes and destiny of the Republic of Korea. Since the cessation of hostilities there last July, we have continued to improve its military position and have! also assumed the task of helping to rebuild its war-torn economy. The results of these endeavors will profoundly affect our leadership and prestige in the Far East and indeed throughout the free world. 256

Page  257 Dwight D. Eisenhower, I954 9 36 I am persuaded that a short visit to Korea by a select group of State executives who are constantly in direct touch with the American people would be highly beneficial. Their personal evaluation of our progress would provide the public with the essential knowledge and broad understanding to which it is entitled. Accordingly, I would be deeply appreciative if you, together with other members of the Executive Committee of the Governors' Conference, could go to Korea on or about April I and, upon your return, give an appraisal of the situation there based on first-hand observation. Will you canvass your Committee and advise me which Governors wish to make the trip? With kind regard, Sincerely, DWIGHT D. EISENHOWER NOTE: On July 9, 1954, the White House released the text of a report on Korea by Governor Dan Thornton of Colorado, and by Governors John Fine of Pennsylvania and Allan Shivers of Texas who accompanied him on his visit to Korea. The Governors reported that a good job was being done in administering the U.S. aid programs. "The American and Korean people can be assured that operating overhead is being kept at a minimum and that a full dollar value is being extracted for every dollar spent. Measurable progress has been made toward repairing the devastation wrought by the Communist aggression. We believe that this progress will quicken in the months ahead through the joint efforts of Koreans and Americans." After citing many examples of progress under the program, the Governors suggested that additional effort be directed toward (a) achieving still better coordination of the U.S., U.N., and Korean programs, (b) encouraging Korea to stimulate private enterprise and private foreign investment through monetary reforms, (c) considering further utilization of U.S. surplus agricultural commodities, and (d) encouraging Korea to take additional measures toward economic and financial stabilization to permit maximum effectiveness in use of aid funds. A supplemental report to the President on Japan was attached to the release of the Korean report. 36 eJ Statement by the President on the Appointment of Admiral Jerauld Wright as Supreme Allied Commander, Atlantic. February I7, I954 I FEEL that Admiral Wright is extremely well qualified to perform the duties of Supreme Allied Commander, Atlantic. Admiral Wright has 257

Page  258 (I 36 Public Papers of the Presidents extensive background and naval command experience in positions of vital importance and he is an officer of outstanding character and ability. Admiral Wright has served as Deputy U.S. Representative to the Standing Group of the North Atlantic Treaty Organization and is thoroughly cognizant of the duties and responsibilities of SACLANT. I feel that Admiral Wright will uphold and carry forward the fine traditions and worthy objectives sought by all the NATO nations. I have every confidence that Admiral Wright can make an outstanding contribution to our common defense effort. 37 ei Remarks to the White House Conference on Highway Safety. February 17, I 954 Mr. Secretary, ladies and gentlemen: A privilege accorded me is that of coming to this meeting in order to extend to each of you a cordial welcome on behalf of the Government of the United States. The purpose of your meeting is one that is essentially local or community in character. But when any particular activity in the United States takes 38,ooo American lives in one year, it becomes a national problem of the first importance. Consequently, this meeting was called, and you have accepted the invitation, in an understanding between us that it is not merely a local or community problem. It is a problem for all of us, from the highest echelon of Government to the lowest echelon: a problem for every citizen, no matter what his station or his duty. I was struck by a statistic that seemed to me shocking. In the last 50 years, the automobile has killed more people in the United States than we have had fatalities in all our wars: on all the battlefields of all the wars of the United States since its founding I 77 years ago. We have great organizations working effectively and supported by the Government, to seek ways and means of promoting peace in the world in order that these great tragedies may be prevented-or at least minimized in the future. But we live every day with this problem that costs us so many lives, and not only lives but grief and suffering in the families from which those victims came-to say nothing of the disablement that so many other citizens must bear all through their lives either through their own or someone else's carelessness. 258

Page  259 Dwight D. Eisenhower, 1954 'I 37 It is one of those problems which by its nature has no easy solution. No one can come along and say that we must have more policemen or more traffic lights or just more roads. It is a problem that is many-sided, and therefore every citizen can contribute something to it if nothing else but his own sense of responsibility when he is driving his car or crossing the street or taking care of his children. But I must say that in each community I do believe that much would be done if the efforts of all of those to whom we give legal responsibility in this affair would have the organized support of all of us. If there were community groups established that could command the respect and the support of every single citizen of that city or that community, so that the traffic policeman, so that everyone else that has a responsibility in this regard, will know that public opinion is behind him. Because I have now arrived at the only point that I think it worthwhile to try to express to you, because in all the technicalities of this thing you know much more than I do. I do want to refer, though, for one moment to this one factor: public opinion. In a democracy, public opinion is everything. It is the force that brings about progress; it is the force that brings about enforcement of the laws; it is the force that keeps the United States in being, and it runs in all its parts. So, if we can mobilize a sufficient public opinion, this problem, like all of those to which free men fall heir can be solved. That public opinion is not a thing of passing moment, not a thing to be won to our side all in one day. It is earnest, long, dedicated leadership on the part of everybody who understands the problem, and then having once been formed, it takes the same kind of leadership to maintain and sustain it, so that this problem will not return to us in exaggerated form. And that fear, I believe, is a very real one. The same list of statistics that I saw said that in I975-I don't know why I should be bothered about that year, except I have grandchildrenthere are going to be 80 million automobiles on our streets and roads and highways. Now, the Federal Government is going to do its part in helping to build more highways and many other facilities to take care of those cars. But 80 million cars on our highways! I wonder how people will get to highway conferences to consider the control of highway traffic. It is going to be a job. 259

Page  260 (I 37 Public Papers of the Presidents But that figure does mean this: we don't want to try to stop that many automobiles coming-I am sure Mr. Curtice doesn't, anyway-we want them. They mean progress for our country. They mean greater convenience for a greater number of people, greater happiness, and greater standards of living. But we have got to learn to control the things that we must use ourselves, and not let them be a threat to our lives and to our loved ones. And so I say all of this comes back to the mobilization of public opinion. This kind of meeting does something in the mobilizing of that opinion. When you go back to your communities, each of you will have an opportunity that is probably as direct and immediate and personal a one as you could probably have in this whole Government of ours. So while I thank you for being here, for doing your part in this kind of job, in this kind of meeting, I also congratulate you on the opportunity that is opening up to each of you in your own communities. And now again, thank you for the privilege of coming here and meeting you, and saying that I think you are engaged in something-I know you are engaged in something that is not only to the welfare of every citizen of the United States, but I believe that they realize it. Thank you very much. NOTE: The White House Conference on the President referred toward the end of Highway Safety was called by the Presi- his remarks, was Chairman of the group dent through a letter to the State Gov- representing business. Later he became ernors released December 14, 1953. Sec- Chairman of the President's Committee retary of Commerce Sinclair Weeks for Traffic Safety. served as General Chairman of the Con- The President spoke at the Departference. Harlow H. Curtice, to whom mental Auditorium. 38 eT Special Message to the Congress Recommending Amendments to the Atomic Energy Act. February 1 7, I 954 To the Congress of the United States: For the purpose of strengthening the defense and economy of the United States and of the free world, I recommend that the Congress approve a number of amendments to the Atomic Energy Act of I946. These amendments would accomplish this purpose, with proper security safeguards, through the following means: 260

Page  261 Dwight D. Eisenhower, I954 q 38 First, widened cooperation with our allies in certain atomic energy matters; Second, improved procedures for the control and dissemination of atomic energy information; and, Third, encouragement of broadened participation in the development of peacetime uses of atomic energy in the United States. NUCLEAR PROGRESS In I946, when the Atomic Energy Act was written, the world was on the threshold of the atomic era. A new and elemental source of tremendous energy had been unlocked by the United States the year before. To harness its power in peaceful and productive service was even then our hope and our goal, but its awesome destructiveness overshadowed its potential for good. In the minds of most people this new energy was equated with the atomic bomb, and the bomb spelled the erasure of cities and the mass death of men, women, and children. Moreover, this Nation's monopoly of atomic weapons was of crucial importance in international relations. The common defense and world peace required that this monopoly be protected and prolonged by the most stringent security safeguards. In this atmosphere, the Atomic Energy Act was written. Well suited to conditions then existing, the Act in the main is still adequate to the Nation's needs. Since 1946, however, there has been great progress in nuclear science and technology. Generations of normal scientific development have been compressed into less than a decade. Each successive year has seen technological advances in atomic energy exceeding even progressive estimates. The anticipations of I946, when government policy was established and the Atomic Energy Act was written, have been far outdistanced. One popular assumption of I946-that the United States could maintain its monopoly in atomic weapons for an appreciable time-was quickly proved invalid. That monopoly disappeared in 1949, only three years after the Atomic Energy Act was enacted. But to counterbalance that debit on the atomic ledger there have been mighty increases in our assets. A wide variety of atomic weapons-considered in I946 to be mere 261

Page  262 q 38 Public Papers of the Presidents possibilities of a distant future-have today achieved conventional status in the arsenals of our armed forces. The thermonuclear weapon-nonexistent eight years ago-today dwarfs in destructive power all atomic weapons. The practicability of constructing a submarine with atomic propulsion was questionable in I946; three weeks ago the launching of the U.S.S. Nautilus made it certain that the use of atomic energy for ship propulsion will ultimately become widespread. In I946, too, economic industrial power from atomic energy sources seemed very remote; today, it is clearly in sight-largely a matter of further research and development, and the establishment of conditions in which the spirit of enterprise can flourish. Obviously, such developments as these within so short a period should have had a profound influence on the Nation's atomic energy policy. But in a number of respects, our atomic energy law is still designed to fit the conditions of I946. Many statutory restrictions, based on such actual facts of I946 as the American monopoly of atomic weapons and limited application of atomic energy in civilian and military fields, are inconsistent with the nuclear realities of I954. Furthermore, these restrictions impede the proper exploitation of nuclear energy for the benefit of the American people and of our friends throughout the free world. An objective assessment of these varied factors leads clearly to these conclusions: In respect to defense considerations, our atomic effectiveness will be increased if certain limited information on the use of atomic weapons can be imparted more readily to nations allied with us in common defense. In respect to peaceful applications of atomic energy, these can be developed more rapidly and their benefits more widely realized through broadened cooperation with friendly nations and through greater participation by American industry. By enhancing our military effectiveness, we strengthen our efforts to deter aggression; by enlarging opportunities for peacetime development, we accelerate our own progress and strengthen the free world. Section i of the Atomic Energy Act of 1946 wisely recognizes the need for future revisions of the law. In its spirit and in consideration of matters of the utmost importance to the Nation's defense and welfare, I recommend that the Congress approve a number of amendments to the Atomic Energy Act. 262

Page  263 Dwight D. Eisenhower, 1954 (I 38 COOPERATION WITH OTHER NATIONS In this atomic era, the growth of international cooperation for the defense of the free world is the most heartening development on the world political scene. The United States is allied with many friends in measures to deter aggression and, where necessary, to defeat the aggressor. The agreements binding ourselves and our friends in common defense constitute a warning to any potential aggressor that his punishment will be swift and his defeat inevitable. These powerful influences for peace must be made as strong and convincing as possible. Most of our friends among the nations have had little opportunity to inform themselves on the employment of atomic weapons. Under present law, we cannot give them tactical information essential to their effective participation with us in combined military operations and planning, and to their own defense against atomic attack. Our own security will increase as our allies gain information concerning the use of and the defense against atomic weapons. Some of our allies, in fact, are now producing fissionable materials or weapons, supporting effective atomic energy research and developing peacetime uses for atomic power. But all of them should become better informed in the problems of atomic warfare and, therefore, better prepared to meet the contingency of such warfare. In order for the free world to be an effective defense unit, it must be geared to the atomic facts of this era. I urge, therefore, that authority be provided to exchange with nations participating in defensive arrangements with the United States such tactical information as is essential to the development of defense plans and to the training of personnel for atomic warfare. Amendments to the definition of "restricted data" recommended later in this message will also contribute to needed administrative flexibility in the exchange of information with such nations concerning the use of atomic weapons. To meet a specific defense need existing in I 95 I, the Congress approved a carefully limited procedure for the communication of information on the processing of atomic raw materials, reactor development, production of fissionable materials, and related research and development. These limitations should now be modified so that the authority to communicate information, adjusted to present conditions, may be better used to our national advantage. In the development of peaceful uses for atomic energy, additional 263

Page  264 Public Papers of the Presidents amendments are required for effective United States cooperation with friendly nations. Such cooperation requires the exchange of certain "restricted data" on the industrial applications of atomic energy and also the release of fissionable materials in amounts adequate for industrial and research use. I therefore recommend that the Atomic Energy Act be amended to authorize such cooperation. Such amendments should prescribe that before the conclusion of any arrangements for the transfer of fissionable material to a foreign nation, assurances must be provided against its use by the recipient nation for military purposes. Sharing certain information with other nations involves risks that must be weighed, in each instance, against the net advantages to the United States. In each case, we must be guided by such considerations as: The sensitivity and importance of the data, the specific uses to which the information will be put, the security standards of the cooperating nation, its role in the common defense of the free world, and the contributions it has made and can make to the mutual security effort. Such considerations apply to the exchange or communication of information on general defense planning and the employment of conventional weapons as well as to the information that could be exchanged pursuant to these recommendations. These recommendations are apart from my proposal to seek a new basis for international cooperation in the field of atomic energy as outlined in my address before the General Assembly of the United Nations last December. Consideration of additional legislation which may be needed to implement that proposal should await the development of areas of agreement as a result of our discussions with other nations. In a related area, present law prevents United States citizens or corporations from engaging directly or indirectly in the production of fissionable material outside the United States, except upon determination by the President that the proposed activity will not adversely affect the common defense and security. Matters that have arisen under this provision have been ordinary business or commercial activities which nevertheless fall within the broad statutory prohibition because they might contribute in some degree, however minor, to foreign atomic energy programs. The President should be enabled to authorize the Atomic Energy Commission to make future determinations of this nature. This amendment is related also to the above amendment concerning the exchange of information with other countries, as arrangements for authorized exchanges of information!264

Page  265 Dwight D. Eisenhower, I954 (j 38 with friendly foreign governments may involve participation by American citizens or firms in work in foreign countries. The proposed amendment would permit the Atomic Energy Commission also to authorize such participation. All of these proposed amendments should make it clear that the authority granted must be exercised only in accordance with conditions prescribed by the President to protect the common defense and security. PROTECTION OF ATOMIC ENERGY INFORMATION A special category of "restricted data," so defined as to include virtually all atomic energy data of security significance, is now established by law. "Restricted data" are protected in the law by special espionage provisions, provisions relating to the control, dissemination and declassification of such data, and by requirements for personnel security clearances. Personnel Security. The provisions of the Act relating to security clearances of personnel need improvement in several respects. The Act does not recognize degrees of sensitivity of "restricted data." The same clearance requirements apply to any type of "restricted data," whether it be access by the unskilled construction laborer to "restricted data" of only marginal security significance, or access by a scientist to the heart of atomic weapons information. The Atomic Energy Commission lacks sufficient latitude under present law to determine the extent of personnel investigation needed for adequate security. Many costly background investigations required by present law are unnecessary. The Atomic Energy Commission should be permitted to relate the scope of investigation required under the Act to the significance of the access to "restricted data" which will be permitted. This amendment is especially pertinent to the proposed broadening of private participation in the development of atomic power. While such private participants will require access to "restricted data" on reactor technology, full investigations of all their employees who will have such access are not warranted because much of the data involved will not have significant security importance. Moreover, such investigations would impede and discourage the desired participation and would be unnecessarily costly both to government and to industry. Where access to more sensitive "restricted data" is involved, the Commission must, of course, require full investigations. Another security clearance problem relates to personnel of Depart265

Page  266 Public Papers of the Presidents ment of Defense agencies and to the personnel of contractors with those agencies. The Atomic Energy Commission may now disclose "restricted data" to such of these personnel as have security clearances from the Department of Defense. The "restricted data" so disclosed by the Commission are thereafter protected in accordance with Department of Defense security regulations. And yet, contractors of the Commission are precluded by law from granting the same personnel access to the same "restricted data" until they have had AEC clearances, based on investigations by the Federal Bureau of Investigation or the Civil Service Commission. As applications of atomic energy become increasingly widespread within the Armed Services, the necessity increases for communication of "restricted data" between AEC contractors and participants in related Department of Defense programs. The present fact that personnel engaged in military programs who have military clearances must be denied access to "restricted data" by AEC contractor personnel impedes cooperation between the Department of Defense and the Atomic Energy Commission in areas of mutual interest and causes unnecessary expense in time and money. I therefore recommend that the Atomic Energy Commission be enabled to authorize its contractors and licensees to afford access to "restricted data" to personnel engaged in Department of Defense programs who need such data in their work and who possess the proper military security clearances. The Definition of Restricted Data. (i) A large body of "restricted data" under present law relates primarily to military utilization of atomic weapons. The responsibility for the control of much of this weapons information logically should rest with the Department of Defense rather than with the Commission. Many administrative difficulties that are produced by a dual system of security would be eliminated by the removal of this weapons information from the "restricted data" category and its subsequent protection by the Department of Defense in the same manner and under the same safeguards as other military secrets. This method of handling weapons information is not possible under present law. "Restricted data" can be removed from the statutory "restricted data" category only by declassification, upon a determination by the Atomic Energy Commission that the publication of such data would not adversely affect the common defense and security. Declassi 266

Page  267 Dwight D. Eisenhower, I954 (e 38 fication obviously is not the remedy. The remedy lies in reliance upon the standard security measures of the user, the Department of Defense. I recommend, therefore, that the statutory definition of "restricted data" be amended to exclude information concerning the utilization of atomic weapons, as distinguished from information on their theory, design and manufacture. (2) In addition to information which falls wholly within the utilization category, there is information which concerns primarily the utilization of weapons but which pertains also to their design and manufacture. In order to avoid difficulties in this marginal zone, I recommend legislation which also would authorize removal of such information from the "restricted data" category. This would be done only when the Commission and the Department of Defense jointly determine that it relates primarily to military utilization of atomic weapons and that it can be adequately safeguarded as classified defense information under the Espionage Act and other applicable law. (3) Consistent with these changes, I recommend that the Department of Defense join with the Atomic Energy Commission in any declassification of "restricted data" which relate primarily to military utilization of atomic weapons and which can be published without endangering the national security. Thus, the Department of Defense will have an appropriate voice in the protection and declassification of such "restricted data" and the responsibilities of the Commission will be clarified with respect to all other "restricted data". DOMESTIC DEVELOPMENT OF ATOMIC ENERGY What was only a hope and a distant goal in I946-the beneficent use of atomic energy in human service-can soon be a reality. Before our scientists and engineers lie rich possibilities in the harnessing of atomic power. The Federal Government can pioneer in its development. But, in this undertaking, the enterprise, initiative and competitive spirit of individuals and groups within our free economy are needed to assure the greatest efficiency and progress at the least cost to the public. Industry's interest in this field is already evident. In collaboration with the Atomic Energy Commission, a number of private corporations are now conducting studies, largely at their own expense, of the various reactor types which might be developed to produce economic power. There are 267

Page  268 q 38 Public Papers of the Presidents indications that they would increase their efforts significantly if the way were open for private investment in such reactors. In amending the law to permit such investment, care must be taken to encourage the development of this new industry in a manner as nearly normal as possible, with careful regulation to protect the national security and the public health and safety. It is essential that this program so proceed that this new industry will develop self-reliance and self-sufficiency. The creation of opportunities for broadened industrial participation may permit the Government to reduce its own reactor research and development after private industrial activity is well established. For the present, in addition to contributing toward the advancement of power reactor technology, the Government will continue to speed progress in the related technology of military propulsion reactors. The present complementary efforts of industry and Government will therefore continue, and industry should be encouraged by the enactment of appropriate legislation to assume a substantially more significant role. To this end, I recommend amendments to the Atomic Energy Act which would: i. Relax statutory restrictions against ownership or lease of fissionable material and of facilities capable of producing fissionable material. 2. Permit private manufacture, ownership and operation of atomic reactors and related activities, subject to necessary safeguards and under licensing systems administered by the Atomic Energy Commission. 3. Authorize the Commission to establish minimum safety and security regulations to govern the use and possession of fissionable material. 4. Permit the Commission to supply licensees special materials and services needed in the initial stages of the new industry at prices estimated to compensate the Government adequately for the value of the materials and services and the expense to the Government in making them available. 5. Liberalize the patent provisions of the Atomic Energy Act, principally by expanding the area in which private patents can be obtained to include the production as well as utilization of fissionable material, while continuing for a limited period the authority to require a patent owner to license others to use an invention essential to the peacetime applications of atomic energy. Until industrial participation in the utilization of atomic energy acquires a broader base, considerations of fairness require some mechanism to assure that the limited number of companies, which as government 268

Page  269 Dwight D. Eisenhower, I954 4f 39 contractors now have access to the program, cannot build a patent monopoly which would exclude others desiring to enter the field. I hope that participation in the development of atomic power will have broadened sufficiently in the next five years to remove the need for such provisions. In order to encourage the greatest possible progress in domestic application of atomic energy, flexibility is necessary in licensing and regulatory provisions of the legislation. Until further experience with this new industry has been gained, it would be unwise to try to anticipate by law all of the many problems that are certain to arise. Just as the basic Atomic Energy Act recognized by its own terms that it was experimental in a number of respects, so these amendments will be subject to continuing future change and refinement. The destiny of all nations during the twentieth century will turn in large measure upon the nature and the pace of atomic energy development here and abroad. The revisions to the Atomic Energy Act herein recommended will help make it possible for American atomic energy development, public and private, to play a full and effective part in leading mankind into a new era of progress and peace. DWIGHT D. EISENHOWER 39 eJ The President's News Conference of February I7, I954. THE PRESIDENT. My apologies for being a little early; I am trying to compress my schedule today. I hope, the Lord willing, in about an hour to be on my way to southern California-an area, by the way, which I have never seen, and none of my family. We are anxious to do it. As usual, of course, there is a small staff going along, I understand a lot of the newspaper people have already departed, and a lot of bills, reports, to read and sign. There is one little item that I don't know whether it has been published, so I jotted it down: the Queen Mother is going to make a visit to America in November. She is going to participate, I believe, in an English Speaking Union ceremony in New York. She is going to par269

Page  270 Public Papers of the Presidents ticipate in the Columbia Bicentennial because, you know-a little commercial for Columbia-their charter was originally granted by King George II. Then, she will come down to Washington, will spend from about November 4th to November 6th at the White House, and then, I believe, will be here in the city at the Embassy for a while longer. The coffee investigation is proceeding. One reason I bring up the subject, I was asked by someone in my office whether I thought this investigation would have any effect on the relationships between the United States and our people, with South American countries and peoples. I see no possibility, myself, that it can affect them. The Brazilians, as you know, are as much upset by this coffee rise as the rest of us. What the investigation is about is to see whether there are any load blocks thrown between the source of supply in Brazil and South America and other countries, and the consumers, by speculation and other processes of that kind that account for part of this great price rise. That is what the investigation is about, not looking into the internal affairs of any other country. There is a report due this afternoon, and I believe it will be available to all of you, from the Presidential emergency board with respect to the dispute between the Railway Express Agency and the Brotherhood of Railway Clerks. That report I haven't seen, but it is to be made available, isn't it? Mr. Hagerty: Four o'clock. THE PRESIDENT. Four o'clock. I think that is about all I have in the way of little announcements of my own, so we will start the questions. Q. Kenneth Scheibel, Gannett Newspapers: Mr. President, a number of the farm State Congressmen in both parties are complaining that the reduction in dairy prices was too severe and should have been done on a more gradual basis. They feel that the cutback will cause hardships in some areas and might stir up some resentment against the flexible program that you advocate. Is there any-would you tell us if there is any plan to reconsider that decision or are you going to stick with it? THE PRESIDENT. As you know, I never use the word "never," but, as of now, I have no thought that it should be reconsidered. Each of these problems has to be considered on its own merits; you see, each year under this support program that has been under butter, 270

Page  271 Dwight D. Eisenhower, 1954 l 39 each year there has been a new decision to be taken: "Will you again support at 90 percent or will you reduce?" Now, last year all the conditions were there that called for reduction in accordance with the law as it exists. I, myself, with the Secretary of Agriculture, decided that in view of the fact this came right along after the election, somewhere about the first of March, as I recall, and that it was a problem that had only started a little while before in November, it was only fair to continue the 90 percent for another year and see what happened. We did warn them if this kind of thing continued, the 90 percent rigid price supports could not be maintained. All year long we have been working with dairy associations, leaders of dairy associations, who believe that they have devised for themselves a program which will eventually make them really independent of governmental support. It will require some governmental, I believe, insurance. So the whole thing is not as sudden as it looked. This had been talked about for a year, looking ahead to the time when we must get butter back to some kind of price where it will be used. Today we have butter moving directly from creameries to governmental storage. Well, we are trying to get butter back on the dinner table in some way or other, and we believe that is in the best interests, long-term interests, of the dairy people themselves, as well as other farmers, as well as the public. Now, that is the belief. Q. Daniel Schorr, CBS Radio: Are you satisfied with the results of and the reaction to your remarks on extreme partisanship? THE PRESIDENT. Well, I have no particular profound comment to make on that question. I expressed to you people my views about extremism of any kind in this political world, and I didn't particularly offer advice to anyone. I said what I would do and what I thought was only the right and, let us say, the wisest thing to do in our daily political life in this country. Q. Alan S. Emory, Watertown Times: Sir, I wonder if I could get back to butter for a second. I would like to ask two questions on the subject: first, did Mr. Benson inform you in advance specifically that he was going to lower the supports all the way to 75 percent of parity; and, second, do you see any conflict between the 15 percent drop on dairy products and your farm, program proposal that there should be a gradual, probably 5 percent a year drop when the basic crops were changed to flexibility? 27I

Page  272 4J 39 Public Papers of the Presidents THE PRESIDENT. In the first question you are asking me for a test of perfect memory, and I am not sure. We talked over this problem many, many times during the year, and whether or not we agreed it was going to be from go to 15 [751 in one particular day, I am not certain. But I did know what the prospects were; therefore, it had certainly my tacit approval before it was ever even thought of. With respect to the second, I explained that this particular matter in the agricultural field is not like the storable crops. After all, you freeze butter at zero temperatures, and in i8 months, I understand, it is going rancid and deteriorates. I have also announced as one of my principles-and I think all of you will recall it-that I do not believe it is justified in this day and time to produce American products by the toil of our hands and the sweat of our brows, and then have them spoil. We have got to do something about it. Now, if you can't do something with it right now, when you have got 270 million pounds of butter in your hands, you have got to make some move to get it moving into commercial lines and, possibly, to turn some of the dairy products themselves into other types of dairy products. So, since this has been going on for a year-it has been under discussion, and actually it was first proposed that we do this in March I953-there has been, as I say, at least long notice, even though the actual move itself did go from go to the lower extreme. Q. Nat S. Finney, Buffalo Evening News: You sent over your message on the amendments to the Atomic Energy Act today. I wonder if you had any comment as to how urgent you consider that the Congress act on those at this session? THE PRESIDENT. Well, when you go to talking about degrees and such things, I think it is difficult to give an exact answer. I will recall to your minds, I think, something that I have talked about before. I was, after all, Commander in Chief; and I suffered, very seriously suffered, under an inability to talk to allies about weapons and kinds of tactics that would be applicable if ever another war broke out, because of the secrecy imposed by this act. So I have always believed, not just this minute but for years backward, that there should be certain reasonable modifications made. So I would say I would like to see them get at it, put it that way. 272

Page  273 Dwight D. Eisenhower, I954 Q. L. G. Laycook, Nashville Tennessean: Mr. President, several members of Congress contend that the TVA will be crippled because the administration included no requests for funds for new power generating facilities in the budget. Would you care to comment on that? THE PRESIDENT. Well, I haven't a great deal to say about it that I haven't said before. You will remember this question was up last year and we went through it. There was a struggle between $90 million and $9 million. I know of no reason why the city of Memphis, if it wanted to, couldn't do something about this matter itself. But what does disturb me is this: a whole great region of our country saying that it is completely dependent upon the Federal Government and can't move in improving its lot, except with Federal Government intervention. Now, much as I believe in the partnership between Federal Government, local government, and State government in developing the resources of our country, making them available to all the people at the lowest possible price, I still think that when we relieve local communities, local populations, of all responsibility, all of the participation in the costs of these things, we are running a very dangerous course. Now, what we are doing with this one is taking a good long survey and a good long look at it. I don't know what the final answer will be, but we are not going, as I say, we are not going to destroy the TVA; that, you can be sure of. Q. Mr. Laycook: One more question, sir. Have you appointed a commission to make this study that you just spoke of? THE PRESIDENT. I have not appointed a Presidential commission, no. There have been surveys going on through the Bureau of the Budget. Q. Richard Harkness, National Broadcasting Company: There were two economic developments yesterday, Mr. President. The Department of Commerce issued its new style census count of unemployment, which showed the figure was rising sharply from the previous estimate; and then an economist of the Federal Reserve Board, Mr. Winfield Riefler, said that already the economic dip was sharper than you had anticipated in your economic message to Congress. Would you comment on that? THE PRESIDENT. Well, in the first place, the new figures for the Department of Commerce-and I suppose you studied them to see what the 273

Page  274 (l 39 Public Papers of the Presidents difference is-don't necessarily show a sudden rise. They would show a sudden rise possibly if you had this same figure based on this same basis of sample-taking for the last several months. But this is the first one, and we don't know whether the difference comes about through difference in sampling or whether there is actually a sharper rise in January than we had anticipated. I personally think there is a little of both. I didn't see this other remark that you speak of with the Federal Reserve Board. Q. Mr. Harkness: That was the testimony before the Joint Economic Committee. THE PRESIDENT. I would say this: for the last several weeks all of us have been alert to this day by day, trying to make certain that there is no move neglected on the part of the Government that could be helpful, to make sure that we don't have any real recession. And I will tell you this: so far as using the powers of the Government are concerned, why, we are using them gradually. Now, if this thing would develop so that it looks like we are going into anything major, I wouldn't hesitate one second to use every single thing that this Government can bring to bear to stop any such catastrophe in this country. I have said that often, and I say it again; but you also don't want to throw the Government wildly out into all sorts of actions, lashing around everywhere, until you know what you are doing. It is a very dangerous move, I should say. Q. John Herling, Editors Syndicate: Mr. President, there are current reports that you favor a larger grant of power to States in the handling of labor relations, and I wonder whether they are correct reports. THE PRESIDENT. I have made no commitment, no talk of any kind, except what you have already seen in the amendments I sent, to the TaftHartley bill, to Congress. Q. Mr. Herling: Well, some pro-Eisenhower union men are asking the question whether or not you would favor such an extension of power to States in labor relations, even if it meant the States would enact legislation that would lead to what has been described as union-busting legislation. THE PRESIDENT. Well, I have never believed in union-busting. You are propounding here a hypothetical question which I have never talked about, and I would be foolish to try any shooting-from-the-hip answer to that one, I will tell you. 274

Page  275 Dwight D. Eisenhower, 1954 9 39 Q. Robert L. Riggs, Louisville Courier-Journal: Sir, on your TVA answer, did I get the correct impression that you were advocating the city of Memphis building a steam-generating plant? THE PRESIDENT. No, I didn't advocate anything; but, I said, what would stop them if they wanted to? What I did say is this: I am fearful when I see any great section of the United States saying that they cannot do a single thing in industrial expansion or any other kind of expansion unless the Federal Government moves in and does it for them; that is just what frightens me. Q. Mr. Riggs: Your point was the city could build it if they wished? THE PRESIDENT. I think so; I don't know any reason why they shouldn't. Someone tells me that there is an element in the contract down there that sort of estops the kind of action which would take place wherever you had free enterprise or greater freedom. I am not quite sure what that item is, but I was told that just in the last few days. Q. Sarah McClendon, El Paso Times: Mr. President, this unilateral Mexican labor program is being blocked in the House Rules Committee. Is that being done at your request, pending the outcome of the resumption of these negotiations in Mexico City on the bilateral labor program? THE PRESIDENT. I assure you I didn't know it was blocked in the Rules Committee; I didn't know anything about it. Q. David P. Sentner, Hearst Newspapers: Mr. President, would you care to comment upon any expected results from the Big Four Conference or any lessons from it? THE PRESIDENT. Well, I suppose lessons are of all kinds, positive and negative, and so on. I don't think there is any comment to make. The Secretary of State is coming back soon. He is going to report immediately to bipartisan groups in both Senate and House, and to the appropriate committees in each case. He will report to me early next week, as soon as I come back; and I will possibly then, at whatever press conference follows that, have something to say about his evaluation. I have had nightly reports from the Secretary, and I think I am fairly well acquainted with his thinking; but it is only fair, I think, both to him and to me, before I comment publicly to wait and have a chat with him. 275

Page  276 Public Papers of the Presidents Q. Joseph R. Slevin, New York Journal of Commerce: Mr. President, do you think the economic downturn has reached a point where consumers should get larger tax concessions than your program called for? THE PRESIDENT. Well, I can't give you an affirmative answer to that one at this moment. As you know, the Economic Report states that that is a measure to bring in very quickly when you see this thing spread very definitely. I should think that March ought to be sort of the key month. March is a month when, I am told, employment begins normally to pick up and you have a definite upturn in the curve. Now, if that isn't true, I should say then we would have a very definite warning that would call for the institution of a number of measures; possibly this tax reduction would be one of the first considered, although I can't say for certain. Q. Jack L. Bell, Associated Press: Mr. President, Senator Carlson said earlier today that there would be a statement issued on the 2200. He didn't make it clear exactly where the statement would be issued. If there is such a statement, would you care to comment on it now in advance of issuance, and tell us something about it? THE PRESIDENT. Well, no. [To Mr. Hagerty] Didn't you tell me that the Civil Service Commission, I think, is going to have a preliminary statement on this thing sometime-today, is it? Mr. Hagerty: Yes, 4:00 o'clock. THE PRESIDENT. Four o'clock. But I think that their final answer that they will put out will take a little bit of time to compile, but they are going to have a statement to make on it sometime this afternoon. Q. Andrew F. Tully, Scripps-Howard: Mr. President, what has become of your plan for an international atomic energy pool? THE PRESIDENT. As a matter of fact, it is not dead, and I wouldn't be at all surprised to see some further negotiation in a group jointly set up to do some private talking on it. I don't know yet what is going to happen, but it is still alive. Q. Mr. Tully: Did Mr. Dulles and Zaroubin get anywhere in their discussions? THE PRESIDENT. I think I have said enough on that; thank you very much. 276

Page  277 Dwight D. Eisenhower, 1954 (t 39 Q. Louis Lautier, National Negro Press Association: Is there any way to distinguish between aid to the anti-Communist forces in Indochina and support of colonialism? THE PRESIDENT. Well, of course. You have asked the very question that is the crux of this whole thing at this moment. There is no colonialism in this battle at all. France has announced several times, and most emphatically last July, that they are fighting to give the three associated states their freedom, their liberty; and I believe it has been agreed they would live inside the French Union, but as free and independent states. Now, as I see it, the Vietnamese are fighting for their own independence, and I have no trouble at all making the distinction that you speak of. We are not trying to help anybody support and maintain colonialism. Q. Henry Pierre, Le Monde (Paris): Mr. President, there have been some reports that General O'Daniel will be sent back to Indochina with increased responsibilities. Does it imply, in your opinion, some criticism about the way the Vietnamese troops have been trained up to now? THE PRESIDENT. No. I think, first of all, to get a real answer to your question why there should be a change in the head of that mission out there-Trapnell, I believe, is there now-I believe you better go to the Defense Department; but it merely means there would be a man to relieve Trapnell in Indochina. Q. Helene C. Monberg, Colorado Newspapers: Mr. President, there is a report on the Hill that you would like your good friend Governor Thornton to run for the Senate; is that true? THE PRESIDENT. Well, I have refused on several occasions to comment on the specific internal and local affairs of any State, particularly their political affairs. Now, as to a State where I hope to go and spend a pleasant summer, I know I am not going to say anything about it. [Laughter] Q. Mrs. May Craig, Maine Newspapers: Mr. President, Senator Bridges and Senator Symington are going to Italy to investigate the report that Communists are infiltrating into aircraft plants there, and they will also investigate similar reports. Do you think that it is appropriate to impart atomic information and weapons to allies who may be temporarily in a political turmoil? 51986-60 21 277

Page  278 'l 39 Public Papers of the Presidents THE PRESIDENT. Well, Mrs. Craig, there are as many kinds of atomic energy information as there are different types of people in this room. We are not talking about giving anybody information that will help an enemy. Now, that is the only thing I can say to that. (Speaker unidentified): Thank you, Mr. President. NOTE: President Eisenhower's twenty- 2:20 o'clock on Wednesday afternoon, eighth news conference was held in the February I7, I954. In attendance: I78. Executive Office Building from I:58 to 40 Ii Message to Prime Minister Nehru Commending the Indian Custodial Forces in Korea. February I9, I954 Dear Mr. Prime Minister: Now that the mission of Indian troops is drawing to a close in Korea, I want to express to you my appreciation and that of my countrymen for the performance of the Indian Custodial Forces. No military unit in recent years has undertaken a more delicate and demanding peacetime mission than that faced by the Indian forces in Korea. The vast majority of prisoners placed in their charge had from months of imprisonment and uncertainty become highly nervous and volatile. The confidence inspired by the exemplary tact, fairness and firmness shown by the Indian officers and men led by their two able commanders, Lt. General Thimayya and Major General Thorat did much to alleviate the fears and doubts of these prisoners. The performance of these officers and their troops was fully in keeping with the high reputation of the Indian Army. They deserve the highest commendation. With best wishes, Sincerely, DWIGHT D. EISENHOWER 278

Page  279 Dwight D. Eisenhower, I954 q 41 4I tI Veto of Bill Relating to Claims of Certain Employees of the Bureau of Prisons. February 22, 1954 To the House of Representatives: I return herewith without my approval H.R. 395, "To confer jurisdiction upon the United States Court of Claims with respect to claims against the United States of certain employees of the Bureau of Prisons, Department of Justice." This measure would confer jurisdiction upon the United States Court of Claims to adjudicate the claims of employees and former employees of the Federal Bureau of Prisons, notwithstanding the lapse of time or any provisions of law to the contrary. The claimants seek compensation for overtime performed on Saturdays during the period beginning in March 193I, and ending in May 1943. They allege that they were not granted compensatory time off on some other work day as required by the so-called Saturday half-holiday law of March 4, 193. Even for the most recent of the claims the six-year statute of limitations expired several years ago. The claims in these cases relate to work performed at different times over a period of more than twenty years. The official time and attendance records which would be required to prove or disprove the issues of fact have been disposed of periodically in the regular manner. Without doubt, necessary witnesses have died or are otherwise beyond reach. This is the very kind of situation which proves the wisdom of a statute of limitation. Without it in such cases it is doubtful whether we can have efficient and orderly administration of the affairs of government. If I were to approve this enactment, I could not in good conscience refuse to approve other bills setting aside the statute of limitations on old claims for overtime or other compensation for either individuals or groups of Federal personnel who delayed in presenting their claims. Leaving aside these very important issues of principle and going to the legislative record of this bill, it would appear that the measure has been under consideration in one form or another since the first session of the 8oth Congress. Each successive review by the Department of Justice has 279

Page  280 e 4I Public Papers of the Presidents indicated that within the then existing statutory framework, Bureau of Prisons employees were granted appropriate time off. In this connection, it must be remembered that the matter of authorizing payment of overtime compensation to Federal employees has been of gradual development. For almost fifty years, between 1893 and 1942, except where there was express authorization to the contrary, the statutes prohibited the payment of additional compensation for extra hours of service, and there was no law of general applicability establishing weekly hours of duty of Federal per annum employees. The outbreak of World War II brought a close to the haphazard approaches to this problem. Under war-time laws and those enacted since, definite statutory limits were established to govern the work week, overtime compensation, and holiday pay. Without doubt, by present standards, the working conditions of the Bureau of Prisons employees for a great part of the period in question would be considered onerous. But they were no more onerous than those applicable to many other groups of Federal employees. I believe it would be a mistake to single out the group covered by H.R. 395 for the purpose of dealing retroactively with an hours-of-work situation which existed during a long-past period that began almost twenty-three years ago. Furthermore, I do not see how this bill could work full justice. Turnover in employment in the classes of employees covered by it was very high, and I have the gravest doubts that the intended benefits would reach more than the relatively few who would become aware of the existence of this act if I were to approve it. I am in favor of providing Federal employees with the fullest opportunity to adjust grievances. I believe, however, that it is fair to confine them generally to the limitations of law and other reasonable conditions. This case, in my opinion, is especially an instance where the law and the principles of orderly administration should be permitted to prevail. For these reasons I return the bill without my approval. DWIGHT D. EISENHOWER 280

Page  281 Dwight D. Eisenhower, 1954 (I 42 42 qI Veto of Bill for the Relief of Mrs. Anna Holder. February 23, I954 To the House of Representatives: I return herewith H.R. 3733, "For the relief of Mrs. Anna Holder." This measure, in directing the payment to Mrs. Anna Holder of the sum of $IO,ooo, would provide a special legislative settlement of her claim that she is entitled to that amount from the Government as the beneficiary named in two $5,000 policies of National Service Life Insurance. These policies matured in May I 945. Mrs. Holder, the sole surviving designated beneficiary, thereupon claimed the proceeds. She established that the deceased serviceman, an orphan, had been reared from early childhood by her parents, and that she occupied a de facto relationship of sister for many years. The Veterans' Administration denied her claim, ruling that she did not come within the permitted classes of beneficiaries prescribed in the National Service Life Insurance Act of I 940, as amended. The correctness of the ruling of the Veterans' Administration under the applicable law is not disputed. The Congress imposed specific limitations on the classes of beneficiaries permitted to be named under National Service Life Insurance maturing before August i, I946. Similarly, the Congress did not vest in the Veterans' Administration authority to grant exceptions from the general rule. Therefore it seems to me irrelevant and unwise to accept as justification for this bill, the fact that Mrs. Holder could now qualify as a beneficiary under existing law, which was not made retroactive. On the other hand, I believe that it is relevant to take fully into account several other factors of great importance in connection with the National Service Life Insurance program as it existed up to 1946. The insurance was issued at peace-time rates which it was recognized would provide but a small fraction of the cost of the program if the United States should become involved in a war. Consequently, provision was made that all benefits payable because of deaths due to the extra hazard of military service would, in effect, be paid from appropriated funds. This was done by reimbursing the trust fund for such costs. Under these circumstances, it was considered desirable to restrict those eligible for 28I

Page  282 eq 42 Public Papers of the Presidents benefits to the categories of persons to whose support the veteran might be obligated to contribute. Finally, I cannot overlook considerations of equity to all beneficiaries as contrasted with the individual case in which the deceased veteran named an ineligible person as the beneficiary of his insurance. I have expressed the view, on other occasions, that uniformity and equality of treatment to all who are similarly situated must be the steadfast rule if the Federal programs for veterans and their beneficiaries are to be operated successfully. Otherwise, inequities are compounded, as is fully revealed by statistics reported by the Veterans' Administration. More than 3,200 claims of designated beneficiaries for the proceeds of National Service Life Insurance have been denied because they were not within the prescribed classes of beneficiaries. A great number of them involved relationships which appear to have been just as close and as real as that claimed by Mrs. Holder. In my judgment, this is not a case in which the circumstances are so unique or exceptional as to justify a waiver of the law. I, therefore, withhold my approval from the bill. DWIGHT D. EISENHOWER 43 41 Statement by the President on Proposed Improvements in the Federal Personnel Program. February 24, 1954 I HAVE been long convinced that a program combining the best practices of progressive private employers with the special demands of public service would greatly benefit our Federal career system and its employees, and would improve the efficiency of its administration. In keeping with this conviction, I recently designated a subcommittee of the Cabinet to carry on studies with other special groups to determine how best to adjust pay inequities and provide other necessary elements of a well-rounded personnel program. Many of the elements of such a program have since been recommended to me and approved by the Cabinet. As approved by me, these elements are: I. Reclassification, job evaluation and a new pay scale for the Postal Field Service as recommended by the Postmaster General. 282

Page  283 Dwight D. Eisenhower, 1954 (I 43 2. Readjustment of inequities in the Classification Act pay scale. 3. A program of contributory Group Life Insurance, on a voluntary basis, for all Federal employees. 4. A program of contributory Medical Care and Hospitalization Insurance open to all Federal employees on a voluntary basis. 5. Unemployment insurance, according to recommendations made in my Budget Message. 6. Improvement of governmental pension plans which will be based on recommendations of the Committee on Retirement Policy for Federal Personnel. 7. Continuing study of the wage board pay system and the extension of that system to certain jobs now under the C.P.C. schedule of the Classification Act. 8. Repeal of the "Whitten Amendment" in order to remove certain restrictions on Federal appointments and promotions established during the Korean emergency. 9. Additional improvements in Federal personnel administration, including: (a) Longevity pay increases in grades above GS- i o; (b) Increase in the number of positions in the three highest grades under the Classification Act; (c) Revision of overtime pay and premium pay provisions; (d) Development of a stronger incentive awards program; and (e) Substitution of a "Rule of Five" for the present "Rule of Three" in selecting eligibles from the Civil Service lists. Recommendations covering much of this program have already been sent to the Congress and are scheduled for early action. The contributory life insurance and medical care and hospitalization insurance programs will be presently submitted to the Congress for later consideration and analysis. 283

Page  284 Public Papers of the Presidents 44 4t Letter to Prime Minister Nehru of India Concerning U.S. Military Aid to Pakistan. February 25, I954 [ Released February 25, I 954. Dated February 24, 1954] Dear Mr. Prime Minister: I send you this personal message because I want you to know about my decision to extend military aid to Pakistan before it is public knowledge and also because I want you to know directly from me that this step does not in any way affect the friendship we feel for India. Quite the contrary. We will continually strive to strengthen the warm and enduring friendship between our two countries. Our two Governments have agreed that our desires for peace are in accord. It has also been understood that if our interpretation of existing circumstances and our belief in how to achieve our goals differ, it is the right and duty of sovereign nations to make their own decisions. Having studied long and carefully the problem of opposing possible aggression in the Middle East, I believe that consultation between Pakistan and Turkey about security problems will serve the interests not only of Pakistan and Turkey but also of the whole free world. Improvement in Pakistan's defensive capability will also serve these interests and it is for this reason that our aid will be given. This Government's views on this subject are elaborated in a public statement I will release, a copy of which Ambassador Allen will give you. What we are proposing to do, and what Pakistan is agreeing to, is not directed in any way against India. And I am confirming publicly that if our aid to any country, including Pakistan, is misused and directed against another in aggression I will undertake immediately, in accordance with my constitutional authority, appropriate action both within and without the UN to thwart such aggression. I believe that the PakistanTurkey collaboration agreement which is being discussed is sound evidence of the defensive purposes which both countries have in mind. I know that you and your Government are keenly aware of the need for economic progress as a prime requisite for stability and strength. This Government has extended assistance to India in recognition of this fact, and I am recommending to Congress a continuation of economic 284

Page  285 Dwight D. Eisenhower, 1954 and technical aid for this reason. We also believe it in the interest of the free world that India have a strong military defense capability and have admired the effective way your Government has administered your military establishment. If your Government should conclude that circumstances require military aid of a type contemplated by our mutual security legislation, please be assured that your request would receive my most sympathetic consideration. I regret that there has been such widespread and unfounded speculation on this subject. Now that the facts are known, I hope that the real import of our decision will be understood. With best wishes, Sincerely, DWIGHT D. EISENHOWER 45 eI Statement by the President on Military Aid to Pakistan. February 25, I954 ON FEBRUARY i9th, Turkey and Pakistan announced their intention to study methods of achieving closer collaboration on various matters including means designed towards strengthening peace and security. This Government welcomed this move and called it a constructive step towards better ensuring the security of the whole area of the Middle East. The Government of Pakistan has now asked the United States to grant military assistance. I have said repeatedly that regional groupings to ensure security against aggression constitute the most effective means to assure survival and progress. No nation can stand alone today. My report to the Congress on June 30, I953, stated that we should strengthen efforts towards regional political, military and economic integration. I, therefore, under the authority granted by the Congress, am glad to comply with Pakistan's request, subject to the negotiation of the required MDAP agreement. This Government has been gravely concerned over the weakness of defensive capabilities in the Middle East. It was for the purpose of helping to increase the defense potential in this area that Congress in its last session appropriated funds to be used to assist those nations in the area which desired such assistance, which would pledge their willingness to pro-!285 51986-60 -22

Page  286 Public Papers of the Presidents mote international peace and security within the framework of the United Nations, and which would take effective collective measures to prevent and remove threats to peace. Let me make it clear that we shall be guided by the stated purposes and requirements of the mutual security legislation. Those include specifically the provision that equipment, materials or services provided will be used solely to maintain the recipient country's internal security and for its legitimate self defense, or to permit it to participate in the defense of the area of which it is a part. Any recipient country also must undertake that it will not engage in any act of aggression against any other nation. These undertakings afford adequate assurance to all nations, regardless of their political orientation and whatever their international policies may be, that the arms the United States provides for the defense of the free world will in no way threaten their own security. I can say that if our aid to any country, including Pakistan, is misused and directed against another in aggression I will undertake immediately, in accordance with my constitutional authority, appropriate action both within and without the UN to thwart such aggression. I would also consult with the Congress on further steps. The United States earnestly desires that there be increased stability and strength in the Middle East, as it has desired this same thing in other parts of the free world. It believes that the aspirations of the peoples in this area for maintaining and developing their way of life and for realizing the social advances close to their hearts will be best served by strength to deter aggression and to reduce the fear of aggression. The United States is prepared to help in this endeavor, if its help is wanted. 46 ~1 Statement by the President Marking the Opening of the Red Cross Drive. February 28, 1954 My fellow Americans and Red Cross members: Americans believe in the Red Cross. I personally believe in it, first, because I know from my own experience the great good it accomplishes in war and peace; second, because I believe 286

Page  287 Dwight D. Eisenhower, I.954 in the fundamental principle of Red Cross-the principle of people helping people. Through the Red Cross, Americans have helped the men and women in our armed forces. In generation after generation, American servicemen have turned to the Red Cross with their personal problems, their family emergencies, and the Red Cross has responded. It has responded quickly and generously. Through the Red Cross, the people of this Nation have constantly relieved the pain and suffering of fellow citizens trapped by natural disasters. The homeless and the hungry have been sheltered and fed. Victims of disaster, lacking the means to rebuild and refurnish their homes, have found in the Red Cross the assistance they needed. And because the American people have donated their blood as well as their money, the Red Cross during the last decade has given life itself to the wounded and the sick. The blood donated by the American people has saved not only the wounded on the battlefields of World War II and Korea, but the sick and injured in more than three thousand hospitals here at home. The Red Cross has provided, and with your help will continue to provide, vast quantities of blood products-products such as gamma globulin, which helps our children avoid the horrible paralysis caused by polio. So much for the material contributions of the Red Cross. But beyond all this-the Red Cross abundantly provides faith in the innate goodness of people, in their ability to work together for the Nation's good. It exemplifies the enormous power which kindness and generosity can exert to move men closer to the day when the rule of force will be banished from the world, and when the Golden Rule will guide the actions of mankind. Through your Red Cross you give special meaning to this faith in humanity. I am confident that this year, as in the past, the American people will join the Red Cross in its magnificent efforts to comfort our fellow men. 287

Page  288 '9 47 Public Papers of the Presidents 47 e Message Recorded for the Observance of World Day of Prayer. March 2, 1954 My friends in many lands: It is profoundly moving to realize that the I954 World Day of Prayer is to be observed, in appropriate services, by many millions of people around the globe. These services, beginning in New Zealand and the Tonga Islands, west of the international date line, follow the sun throughout the day, and end 24 hours later, in St. Lawrence Island in Alaska. Prayer seems to bring closer together in mutual understanding, the people who unite in its practice. At the very beginning of our own national life, at a time when the Constitutional Convention was plagued by dissension and on the point of breaking up, Benjamin Franklin suggested that all join him in a moment of prayer. After that silent moment, the delegates suddenly seemed to be united in their purposes, and there was born the great document by which we live. Throughout the history of this country, all the men and women we most revere as inspired leaders constantly sought Divine Guidance in the discharge of their public responsibilities. Today the innermost longing of mankind is for peace; peace for all nations, for all men, everywhere. The hosts of people who take part in this World Day of Prayer are seeking the help of the Almighty to find the way toward the goal of peace, toward the triumph of freedom and the unity of men. In this noble purpose all men of good will may devoutly join. NOTE: The President's words were broad- Day of Prayer (March 5) was sponsored cast throughout the world by the Voice by the United Church Women of the of America, as recorded and as trans- National Council of Churches of Christ lated into some 37 languages. World in the United States. 48 T The President's News Conference of March 3, I954. THE PRESIDENT. Ladies and gentlemen, as you know, the Governor of Puerto Rico made a visit to the capital yesterday, to join with all of us 288

Page  289 Dwight D. Eisenhower, 1954 (q 48 here in an expression of his sentiments of regret at the tragic events on Capitol Hill 2 days ago. I was, of course, pleased to welcome him for that purpose, because while we all knew what the sentiments of the mass of Puerto Rico were, it was, I thought, a very splendid gesture on his part to come up and state them, you might say, officially. We start out-I have got one statement that I want to make as my complete and full expression on one incident of recent weeks. [Reading] I want to make a few comments about the Peress case. The Department of the Army made serious errors in handling the Peress case and the Secretary of the Army so stated publicly, almost a month ago. The Army is correcting its procedures to avoid such mistakes in the future. I am completely confident that Secretary Stevens will be successful in this effort. Neither in this case, nor in any other, has any person in the executive branch been authorized to suggest that any subordinate, for any reason whatsoever, violate his convictions or principles or submit to any kind of personal humiliation when testifying before congressional committees or elsewhere. [Discontinues reading] For the benefit of those of you who are making statements, Mr. Hagerty has insisted on duplicating this, and you will probably get a copy of it. [Resumes reading] In a more general sense, I have certain observations to make. They are: I. We must be unceasingly vigilant in every phase of governmental activity to make certain that there is no subversive penetration. 2. In opposing communism, we are defeating ourselves if either by design or through carelessness we use methods that do not conform to the American sense of justice and fair play. 3. The conscience of America will clearly discern when we are exercising proper vigilance without being unfair. That conscience is reflected in the body of the United States Congress. We can be certain that its members will respond to America's convictions and beliefs in this regard. Here I must repeat something that I have often stated before. The ultimate responsibility for the conduct of all parts of the executive branch of the Government rests with the President of the United States. That responsibility cannot be delegated to another branch of Government. It is, of course, likewise the responsibility of the President and his associates 289

Page  290 ( 48 Public Papers of the Presidents to account for their stewardship of public affairs. All of us recognize the right of the people to know how we are meeting this responsibility and the congressional right to inquire and investigate into every phase of our public operations. Manifestly, in a government such as ours, successful service to i60o million people demands a true spirit of cooperation among the several branches of Government, especially between the executive and the legislative branches. Real cooperation is possible only in an atmosphere of mutual respect. I spent many years in the Army, during the course of which I sometimes appeared before committees of the Congress. Sometimes I was a direct witness; more often, in my early years, at least, I was merely a so-called technical assistant to the man testifying. In all that time, I never saw any individual of the Army fail to render due and complete respect to every member of Congress with whom duty brought him in contact. In all that time, I never saw any member of the Congress guilty of disrespect toward the public servants who were appearing before him. In the tradition of such mutual respect I grew up in the governmental service. It is that tradition that I intend that the executive branch will observe and apply as long as I hold my present office. Now, I have only a few additional comments. First, all of us know that our military services and their leaders have always been completely loyal and dedicated public servants, singularly free of suspicion of disloyalty. Their courage and their devotion have been proved in peace as well as on the battlefields of war. America is proud of them. I am certain that no one in any governmental position wants to have his own utterances interpreted as questioning the lasting debt that all of us as Americans owe to the officers and enlisted men and women of the armed services. In this tribute to the services, I mean to include General Zwicker, who was decorated for gallantry in the field. Second, except where the interests of the Nation demand otherwise, every governmental employee in the executive branch, whether civilian or in the Armed Forces, is expected to respond cheerfully and completely to the requests of the Congress and its several committees. In doing so it is, of course, assumed that they will be accorded the same respect and courtesy that I require that they show to the members of the legislative 290

Page  291 Dwight D. Eisenhower, 1954 (e 48 body. Officials in the executive branch of the Government will have my unqualified support in insisting that employees in the executive branch who appear before any type of executive or congressional investigating body be treated fairly. Third, obviously, it is the responsibility of the Congress to see to it that its procedures are proper and fair. Of course, I expect the Republican membership of the Congress to assume the primary responsibility in this respect, since they are the majority party and, therefore, control the committees. I am glad to state that Senator Knowland has reported to me that effective steps are already being taken by the Republican leadership to set up codes of fair procedure. Fourth, there are problems facing this Nation of vital importance. They are both foreign and domestic in character. They affect the individual and collective future of all of us. The views of myself and my associates on these matters have been outlined in the proposals for legislation we have submitted to the Congress. They deserve the undivided and incessant attention of the Congress, of the executive branch, of the public information media of our Nation, of our schools, and even of our churches. I regard it as unfortunate when we are diverted from these grave problems-of which one is viligance against any kind of internal subversion-through disregard of the standards of fair play recognized by the American people. These incidents are all the more useless and unfortunate in view of the basic dedication of every loyal American to the preservation and advancement of America's safety, prosperity, and well-being. [Ends reading] And that is my last word on any subject even closely related to that particular matter. Q. Merriman Smith, United Press: Mr. President, this is not closely related, but Senator McCarthy yesterday questioned the wisdom of Secretary Dulles having removed from Mr. McLeod the authority over personnel problems in the State Department. I wonder if you could tell us your feeling on that. THE PRESIDENT. Well, the assignment to duty of any administrative officer in any department of Government is the responsibility of the head of that department, and no one else's whatsoever. I hold the head of department responsible to me for proper operation of that department. He is, in turn, responsible for everything that goes on within it. 291

Page  292 Public Papers of the Presidents Q. Donald Shannon, Salt Lake City Deseret News: I think this is quite far removed from anything you were talking about. The term of Interstate Commerce Commissioner James K. Knudson expired in December. Why hasn't the renomination gone up, and will it eventually be sent to the Senate? THE PRESIDENT. It has not been submitted to me yet. I haven't had anything on that brought to my desk. Q. Richard Harkness, National Broadcasting Company: Would you comment, sir, on suggestions that special labor camps be formed to contain alleged and suspected subversives in the Armed Forces? THE PRESIDENT. Well, I don't believe I will comment on this at the moment. Renewed attention has been given to this whole problem within the Armed Forces, they are coming up with a plan, and I will be perfectly ready to comment on their whole plan after it is once submitted. But I don't believe that I want to comment on a suggestion of that kind which I never before heard. Q. Mr. Harkness: Mr. President, if I may continue, sir. THE PRESIDENT. Yes. Q. Mr. Harkness: This is not part of the Army's plan, as I understand it. It is, to the contrary, a suggestion of Senator McCarthy. THE PRESIDENT. Well, as I say, I don't care to comment on it at the moment because I don't know how it would work out. Q. Sarah McClendon, El Paso Times: Sir, totally aside from that, but somewhat related to what you said about humiliation before committees and fair play-totally aside from the merits or demerits of Chief Justice Warren or his accuser-don't you think it smacks of totalitarianism for a witness before a congressional committee on a confirmation case to be harassed by the Justice Department and the Metropolitan Police and the Capitol Police when he is there to testify, in a free country? THE PRESIDENT. Well, you are asking a question based on a premise that I do not know to be true. I know about this only what I have read in the papers, and that said that there was a man who was a fugitive from justice, and the legal authorities of our country were taking care of their own responsibilities. I should say this: if they did have responsibility and didn't discharge it, we would have cause to worry. I don't know anything about the merits of the case. 292

Page  293 Dwight D. Eisenhower, 1954 e 48 Q. Mrs. McClendon: Sir, if I may continue, I believe later they decided that they didn't have enough to arrest the man there-of course, that would be a question of fact-but what I am getting at is arresting a man through efforts of the Department of Justice in the Halls of Congress when he comes before a congressional committee to say, as an American, he wants to testify. THE PRESIDENT. I believe that that is something that will have to be tested by the good sense of the enforcement officers, and the decisions of courts. I haven't heard the particular circumstances that you describe. I just knew from the papers that a man, appearing to testify, was wanted somewhere else, and officers were called upon to do something about it. Q. Alice Dunnigan, Associated Negro Press: Mr. President, the question has been under discussion on Capitol Hill as to whether Labor Secretary Mitchell's letter sent to the chairman of the Senate Committee on Labor and Public Welfare last week endorsing the Ives equal employment opportunity bill, with enforcement powers, expresses the position of the administration on this measure. Would you like to clarify your position on that? THE PRESIDENT. I have made my position clear many dozens of times. I believe there are certain things that are not best handled by punitive or compulsory Federal law. Now, not only is Secretary Mitchell allowed in his own person to have views different from me on certain particular details of governmental activity, but any other Cabinet officer is so allowed and so authorized, and I don't consider it any matter of disloyalty to me. He expressed his own personal views, and I respect his personal views, but I don't want around me a bunch of yes-men. Q. McClellan Smith, Radio Television Daily: Mr. President, Chairman Reed of the House Ways and Means Committee has said that a io percent ceiling should be the maximum on excise taxes. If such a bill goes through, will you veto it? THE PRESIDENT. I know of no question that is more impossible of answer than what an Executive will do about a future bill with respect to vetoes, because no one knows what is all going to be in that bill; and sometimes, I suppose, you have to swallow a deal of castor oil along with the sweet coating. 293

Page  294 Public Papers of the Presidents Now, as far as that measure is concerned, Secretary Humphrey issued a statement last evening that represents views that he and I had previously discussed; and if you want to know the details of the views, I suggest you take a look at that statement and discuss it down at the Treasury Department. Q. Edward Folliard, Washington Post: Mr. President, how does the truce in Korea affect the Red Cross, that is, in Red Cross services to the Armed Forces there and elsewhere? THE PRESIDENT. I don't want to be interpreted here as knowing anything about the law, if there is a law that applies. So far as I am concerned, every place that I have ever seen troops in the field, we have had the Red Cross; even in this country you have local voluntary groups. I can't see how it would affect it whatsoever. I had the Red Cross in Germany, after we had an armistice over there, and so I think that the Red Cross goes right ahead performing its many functions, in spite of the fact that shooting has stopped there. Q. Mr. Folliard: What I had in mind is, is there still the need? THE PRESIDENT. Oh, indeed. You know, I can't imagine anything more difficult for a very great body of young, impatient, virile Americans than to be cooped up in occupational or other sorts of inactive duties. One of the reasons that the Army has tackled with such enthusiasm and such success the rebuilding of South Korea is because it gives them something constructive to do, and they are doing it. Now, in that kind of a situation, I think there are many instances where you need the Red Cross far more than you do when the actual fighting is going on, because the fighting and the getting ready for it so absorbs the attention of people. Q. Anthony Leviero, New York Times: Mr. President, I wonder if you would listen to a question on the Peress case, and if it has been covered I would gladly scotch it. The public has been given two views of that, and one emanating from the Pentagon is that the handling of the case was essentially a redtape and paperwork muddle. I believe you have covered that in your statement. On the other hand, from the Hill, we get the contention that there was a deliberate covering up and coddling of a Communist. I wonder if you would comment on that point? THE PRESIDENT. Well, you know, I don't mind. As a matter of fact, I had it in my statement once, because I did want to make some general 294

Page  295 Dwight D. Eisenhower, 1954 q 48 observations expressing my views in unequivocal terms, and it got so long that I just dropped it out. Actually, of course, I think that all of the detailed facts that have occurred over these last o months are not yet completely known. I don't for one minute believe that senior officers of the Army or the armed services have been trying to cover up anything of communism. You do have an unfortunate law-I say "unfortunate"-you do have a law that requires this: if you draft a doctor you are compelled to give him a commission. Well, that puts a great dilemma in front of an administrator in the Army. Actually there is a case now decided by the appellate courts, I am told, that requires the Army now to pay back pay to a man that they refused to commission; they have to pay back pay as a captain or a major for the past x months, I don't know exactly what it is. So, I would say it was partly confusion-knowing how to handle such cases. You people might be amused a little bit to know that when I was in Europe a few years back, the French had to come up with this problem; after all, when you have got 25 or 30 percent of your people registered or voting in the Communist Party, and then you have a universal military service law bringing them in, think of their problem. Well, I used to discuss with them how they handled it. They did, of course, try to keep these people out of sensitive positions. And they had this one remarkable and very encouraging result: that the people who came into the Army as Communists, less than a quarter of them went out as such. They learned some things in the Army, apparently, they hadn't known before. Q. Mrs. May Craig, New England Papers: Mr. President, last year Senator Margaret Smith of Maine introduced a bill to outlaw the Communist Party or any similar organization under another name. Would you favor that? THE PRESIDENT. I can't tell you for sure, Mrs. Craig, for this reason: when I came down here, one of the first things I asked was for a study on that, and lawyers have been fighting over it ever since. There seems to be a constitutional bar in just outlawing a particular political party in this country, and I believe that all convictions that have been secured against these leaders have been not on the word "Communist" but on their being a part of a conspiracy to destroy the American 295

Page  296 e1 48 Public Papers of the Presidents form of government by force. So I don't know whether it can be done, and there certainly I wouldn't want to commit myself on something that was constitutionally so abstruse. Q. Lloyd Schwartz, Fairchild Publications: Mr. President, I would like to ask whether you have decided to reject a Tariff Commission proposal for special fees on imports of wool, now before you. THE PRESIDENT. There is going to be an announcement a little later in the week, a public announcement; I could possibly just tie the thing up a little, but I have already approved certain actions, and for certain reasons, and they will be explained in a public statement. It will be out, I think, in 2 or 3 days. Q. Robert Spivack, New York Post: Mr. President, as you know, before the Army and General Zwicker were involved, witnesses had been abused also on the Hill, and one of the ideas that has been kicking around, which I don't think we have ever asked for your comment on, is the idea of combining these investigations under more responsible leadership. Would you tell us how you feel about that? THE PRESIDENT. I have constantly stated that I recognize and respect the right of Congress to investigate into anything that it finds it necessary to investigate. Manifestly also, the business of determining their own rules, their own procedures, is a matter for the conscience of the Congress, and I have tried to point out that in the long run, certainly they are going to be responsive to the general will of the United States. I can state nothing more definite on that. Q. Nat Finney, Buffalo Evening News: Are you satisfied with the outcome of the debate on the Bricker amendment on Capitol Hill? THE PRESIDENT. The only thing I can say is that I am very pleased that we can devote our efforts to concrete and specific parts of a program that I believe to be absolutely essential for building a stronger and better America; that is all I can say on it. Q. Robert Richards, Copley Press: How do you think the Republicans are coming along with your advice to be kinder to Democrats? [Laughter] THE PRESIDENT. I got a letter on it within 5 minutes before I came over here. I got a letter on it from a man in Maine who, at least, cheered my words, and maybe I will pass his letter around. Q. Marietta Dake, Niagara Falls Gazette: Mr. President, I was won 296

Page  297 Dwight D. Eisenhower, I4954 (I 48 dering whether you instructed the Republican leadership to see to it that each committee has at least one Republican and one Democrat in attendance at all times? THE PRESIDENT. I can't possibly instruct the Senate as to its procedures. They have reported to me as to what they are planning to do, and I will wait until their program comes out, which certainly should be shortly. Q. Anthony Leviero, New York Times: Mr. President, Chairman Young of the Civil Service Commission reported yesterday to a committee on the subversive cases, the security risk cases. I wonder if you have any comment on that report? THE PRESIDENT. Only one thing, and that is to emphasize to you ladies and gentlemen once more, I never used the word "subversives" in connection with the program that this administration designed to get rid of undesirables of any kind in this administration. I simply stated we are going to get rid of security risks. Now, Mr. Young is attempting to give you such information as is available and is proper to give out, and your problems will have to be with him. My own opinion is that they were bad security risks, and that is all. Q. Mr. Leviero: Well, Mr. President, following that up, long before this administration came into office, people were claiming they were treated unfairly, both under the loyalty and security programs. Has any thought been given to making characterizations of "unsuitable" instead of "security risks" where it relates to people who are not disloyal? THE PRESIDENT. You bring up a word I had not thought of, but it might be, it might be that they could find-I think they did it, though, on this basis: if you find these people you call unsuitable by reason of personal habits or anything else, they become risks. I had this problem in the war. I had men when we were planning secret operations, if it was brought to me and proved that they were men that drank and, therefore, were a little bit indiscreet in their social contacts, they were removed and in some cases reduced. The same principle, I think, applies; but you may have an idea that our people can look at. Merriman Smith, United Press: Thank you, Mr. President. NOTE: President Eisenhower's twenty- Io:58 o'clock on Wednesday morning, ninth news conference was held in the March 3, 1954. In attendance: 256. Executive Office Building from 10:32 to 297

Page  298 Public Papers of the Presidents 49 eI Statement by the President on the Administration's Program for the Domestic Wool Industry. March 4, I954 ON JULY 9, I953, on the advice of the Secretary of Agriculture, I requested the United States Tariff Commission to make an investigation, under Section 22 of the Agricultural Adjustment Act, to determine the effect of imports of certain varieties of sheep's wool on the operation of the domestic price-support program for wool. I now have the Report of the Tariff Commission, in which a majority of its members recommend the imposition of certain fees on imports of wool in addition to the prevailing duties. At the same time as the Tariff Commission inquiry was initiated, I requested the Secretary of Agriculture to make a comprehensive study of the domestic factors which have contributed to the decline in sheep numbers and wool production in the United States, with a view toward the development of a sound and prosperous domestic wool industry consistent with an expanding international trade. On the basis of this study, which was carefully analyzed and discussed by the interested agencies of the Executive Branch, I determined that domestic wool growers required continued price or income assistance in a more effective form than is now provided. I accepted the principal recommendations of the Secretary of Agriculture, which provide for government assistance to growers under an incentive payment plan during periods when wool prices are below the desired support level. These recommendations have been submitted to the Congress. Hearings have been held before the Senate Committee on Agriculture and Forestry and a bill embodying these recommendations has been approved by that Committee. The enactment of this program by the Congress would eliminate the necessity for an increase in import fees or other limitations on wool imports, a course of action which I do not believe would best serve either the wool growing industry or the national interest. I am confident that this new program will appreciably contribute to the achievement of a sound and prosperous domestic wool industry, an essential component of a healthy overall economy and a strong defense. In view of the fact that the Administration's new wool program is 298

Page  299 Dwight D. Eisenhower, 1954 ( 50 specifically designed to help remedy those conditions which prompted the Tariff Commission's investigation, I am taking no action on the Commission's Report. 50 oT The President's News Conference of March 10, 1954. THE PRESIDENT. I have only one announcement. It is very inconsequential. Sometime during the coming week I shall probably go on the air to discuss the general contents of the tax program. As you know, the administration is committed-the administration of the Republican Party-to a program, the pieces of which have gone down to the Congress in the form of legislative proposals and, all together, make up a plan of action that we believe to be good for the United States. Of that, taxes is part. The purpose of taxes is, of course, to get the money to pay the bills for the things you have to do, or believe desirable for Government to do, for its people-and to do it in such a way as to cause not only the least damage to the economy but to, the great mass of people that make up the United States, and cause the burdens to be distributed in such a way that we will not impede the very progress you are trying to advance. So it will be discussed. The only point of my making the statement now is that the tax program will be discussed in its relationship to what we are trying to do in a broad program. That is the only statement I have to make. We will go right to questions. Q. Merriman Smith, United Press: Mr. President, do you feel that there is a need for any additional Republican reply on a nationwide basis to Adlai Stevenson other than Vice President Nixon's speech Saturday? THE PRESIDENT. Well, I don't sense any particular need myself. I think all you people know how greatly I admire the Vice President, how much I trust him. I have confidence that he will place the facts as he understands them, and as all of us in a position of responsibility in the Republican Party understand them, before the people; and that will be that. Q. Robert G. Spivack, New York Post: Mr. President, in connection with the selection of Vice President Nixon to reply, does that mean that 299

Page  300 Public Papers of the Presidents Senator McCarthy will not be speaking for the party in the '54 campaign? THE PRESIDENT. You pose a question that I don't suppose anyone in the world can answer. I suppose when he speaks, he will say he is representing what he chooses. The Republican Chairman has made it quite clear in this instance who has been selected to speak for the party, and that is that. Q. Martin Agronsky, American Broadcasting Company: It has been reported, sir, that you personally chose the Vice President to respond to Mr. Stevenson, and communicated your wishes to Mr. Hall; is that correct? THE PRESIDENT. There was a meeting at which I participated, and I don't remember that I was the one that suggested it. I most certainly concurred heartily. I can't remember, frankly, who made the first suggestion that Mr. Nixon should do it, but I certainly concurred heartily. Q. Richard L. Wilson, Cowles Publications: Mr. President, last Saturday night the proposition was put forward that the Republican Party is half Eisenhower and half McCarthy. Would you care to comment on that? THE PRESIDENT. At the risk of appearing egotistical-and you can so interpret it if you choose-I say nonsense. Q. Edward T. Folliard, Washington Post: Mr. President, this is related to Merriman Smith's question. Do you think that the big networks have been fair in giving time to the Republican National Committee to answer Governor Stevenson rather than to Senator McCarthy? McCarthy feels that the networks have been unfair. THE PRESIDENT. I am not going to make the decisions that, of course, the Federal Communications Commission makes, and that the networks make on their own responsibility. Personally, I think that the networks have certainly discharged their responsibility for being impartial when they give to the Republican National Committee the right to answer as they see fit. You know, suppose any one of you would make a speech, whatever party you belong to, and mention 2o names on the other side; now, does the network have to give 20 different people the right to get up and answer, or is it a party thing? There must be some limit to this sort of thing. I believe as long as they give to responsible, acknowledged heads of the organization part 300

Page  301 Dwight D. Eisenhower, 1954 4J 50 of the party-the Chairman-the right to determine this, why, that is justice. Q. Mrs. May Craig, Maine Newspapers: Mr. President, do you not regard the Stevenson speech as a part of the Democratic campaign for Congress, and therefore it should be answered by the party-by the Republican Party? THE PRESIDENT. Yes, indeed I do. Of course I do. Q. Roscoe Drummond, New York Herald Tribune: Mr. President, will you tell us whether you find yourself in substantial sympathy with it, or what your reaction is to it if that is not correct, to Senator Flanders' talk yesterday in the Senate? THE PRESIDENT. Well, I was perfectly certain I wasn't going to get through this morning without getting that question. [Laughter] And I thought about it on the way over. [Laughter] Now, certainly, I can agree with this part: the Republican Party is now the party of responsibility, so charged by the people of the United States in the elective process. And when Senator Flanders points up the danger of us engaging in internecine warfare, and magnifying certain items of procedure and right and personal aggrandizement, and all such questions, to the point that we are endangering the program of action that all the leadership is agreed upon and we are trying to put across, then he is doing a service when he calls the great danger to that kind of thing that is happening. Now, I am not going to be in a position of endorsing every word he said or how he said it. I don't know; all I saw of it was a little bit of thing on television last evening, and so I know you wouldn't ask me just to say I underwrite it. But I do say that calling attention to the grave error in splitting apart when you are in positions of responsibility and going in three or four different directions at once is just serious, that's all. Q. Anthony H. Leviero, New York Times: Mr. President, I wonder if you would put that much on the record, the answer to that question. THE PRESIDENT. I will tell you what you can do. I believe they keep a transcript; after the meeting is over, Mr. Hagerty can see how many errors of grammar, of which I was guilty, when I stated it-[laughter]and if he thinks it is worthwhile stating it, or if it is all right, you can put it in. 301

Page  302 Public Papers of the Presidents Q. Richard L. Wilson, Cowles Publications: Can we include that "nonsense" part in that quotation? THE PRESIDENT. I forget. I said about-half and half, you said? That was the question? Q. Mr. Wilson: Yes. THE PRESIDENT. As far as I am concerned, you can use my influence with Mr. Hagerty. [Laughter] Q. Laurence H. Burd, Chicago Tribune: I would like to ask about the Manion resignation. We have never had any statement from the White House on it. Dr. Manion said he was asked to resign by Sherman Adams, presumably because of his stand on the Bricker amendment and the TVA. My question is, can you tell us who was responsible for the Manion resignation and why it was asked for? THE PRESIDENT. Actually, Dean Manion, a very estimable man, was entitled to his own opinions on those certain items, and they were never questioned. I knew where he stood on certain things when I asked him to do a certain job. But he was busy and couldn't do the job that he was asked for. The job requires a continuous devotion to that kind of work. As a matter of fact, we are hunting for the man now that can give full time to that kind of work. Q. Mr. Burd: It was a question of time, was it not? THE PRESIDENT. So far as I was concerned, yes. Q. M. Stewart Hensley, United Press: Senator Anderson yesterday formally called up his amendment to tack Alaska onto the Hawaiian statehood bill. Do you have any comment on that at all? THE PRESIDENT. Well, our leadership has promised to do its best to keep them separate, and I personally favor that plan. You people know where I have stood on this business of statehood for the two Territories. You know that I take a platform seriously. I am trying very much to carry out the basic promises of the Republican platform. I note that some of them are paralleled in the Democratic platform. So I don't see any reason why each of these subjects can't be handled on its own merits. Q. Robert G. Spivack, New York Post: Mr. President, this is on a less controversial subject. Have you ever had your coffee report? THE PRESIDENT. Ever had what? Q. Mr. Spivack: The report on the coffee investigation that you announced. 302

Page  303 Dwight D. Eisenhower, Iq954 (I 50 THE PRESIDENT. No, I haven't. Will you look that up? I don't know whether that is completed, the major one. I gave you the results of the preliminary, which they said, you will remember, justified a fullscale investigation. The reports on that full-scale, I have not had. Q. Kenneth M. Scheibel, Gannett Newspapers: Mr. President, there seems to be increasing support in Congress and among the farm organizations that we sell part of our surplus butter to Russia for 40 or 50 cents a pound, provided part of that surplus is made available in this country at a reduced price. Could you tell us if you would favor such an arrangement? THE PRESIDENT. I haven't heard just exactly that one. I, of course, believe that where the United States interests indicate the need for a barter arrangement to get something that we need and can preserve in place of butter which we apparently don't need, because it is in storage, and which is perishable, that would be a good deal, in my estimation. Q. Mr. Scheibel: Would you extend that to include all the other farm surpluses we have, swapping for materials? THE PRESIDENT. Certainly, the great surpluses. I really believe we should look for ways to trade them advantageously to the United States. That is what barter is, that is what trade is, that is what made this country, in many ways; and I don't think we should fear now our ability to trade to the best interests of the United States. But, on the other hand, I realize there are a thousand different considerations that apply to this delicate thing of disposing of these surpluses, both at home and abroad. Q. Paul Shinkman, Radio Stations WASH-FM and WDON: Prime Minister Churchill said last week that he still felt that a four-power conference at the top level would be helpful in the foreseeable future. Do you have any comments on that subject? THE PRESIDENT. Of course, I have disagreed with Winston-with the Prime Minister in the past. Here, in this one, I will put it this way: I fail to see at this moment what good could come out of it. Of course, there are always the possibilities of great difficulty coming. Now, I have approved numbers of conferences for our Secretary of State participating with other foreign ministers. Incidentally, I must say, I think he has handled himself like a master. I know of no one who could have done better than Secretary Dulles in representing the best interests of the United States in the most confusing and trying of circumstances. I think we are fortunate to have such a man. 303

Page  304 Public Papers of the Presidents Q. Charles S. von Fremd, CBS Television: Mr. President, the Colonel Schwable case has raised an important argument, the two sides of which you are probably quite familiar with, with your distinguished military background. On the one side, the military naturally fears from the standpoint of precedence to have its men admit to false confessions, while from the humanitarian standpoint, it is easy to understand and sympathize with a man who makes a false confession under duress or torture. Not referring specifically to the Colonel Schwable case, sir, can you give us your general views on this entire military situation, or problem? THE PRESIDENT. Well, when you begin to talk about military problems, you must certainly relate that problem to the times in which you live. If you will go back to our Revolutionary War times, you will find there were codes that existed among professional fighting men that were almost independent of international law. If you captured a general, he was your guest; you took him in; you were very nice to him. He might be the guest of the conquering general for 2 or 3 days. There was a sort of understanding that controlled most of our contacts with the enemy, and out of that were translated really the rules of land warfare to which many nations adhered. Today, with hatreds and prejudices sharpened, all brought about by very deep, underlying differences in ideologies, the very basis by which we live-we think we are a religious civilization; our opponents in the world believe in a materialistic dialectic and nothing else, that only materialism has anything to do with man's happiness, man's progress, and man's concern-these bring about very, very great changes. Now, you must remember that all the early part of my life I was studying the campaigns, the conduct of past wars and past heroes of minea Lee and a Washington, people like that. Today you have got to be a rather understanding individual if you presume to criticize severely someone who has given way to the things that these men have had to endure. Indeed, I read only recently that one psychiatrist said that there is no man on earth that under the continued process of brainwashing can fail to make the confession desired of him. There is, of course, like all things, a rule of reason that applies. You can't take back such people and ask young America to follow them enthu 304

Page  305 Dwight D. Eisenhower, 1954 e 50 siastically. On the other hand, we mustn't condemn them too severely. It is a very, very hard problem. And I must say this: in some I 3 yearsor something like that, maybe they are not continuous, they seem almost that-that you have to sit in judgment on other humans' failures, legal and other failures, you have to sit in and take final action on them, it is a very trying thing. First of all, you must think of punishment as being instituted for the protection of society, the society that you know. On the other hand, you have justice to the individual. Frequently your opinions and convictions differ. It is a very, very difficult problem, and sometimes that is one of the burdens you wish could be removed from your shoulders. I carried it a long time, and I have no really definite answer for it. Sorry. Q. Marvin L. Arrowsmith, Associated Press: Mr. President, there has been a great deal of talk among some Republicans lately that the word has gone out from you that you want much more emphasis on the positive aspects of the administration's program. Possibly your answer on the Senator Flanders' speech gives some of the reasons, but I wonder if you could tell us if that is so, if you feel there should be more of that emphasis. THE PRESIDENT. Mr. Arrowsmith, I thought I had emphasized that right here in one of these meetings. I don't believe that things negative promote the happiness of people. I believe that you must go forward in the spiritual and intellectual, cultural, economic development of this country if we are going to make it a place where I 6I million people can live in happiness-and the increasing population can live in happiness. Now, all the things that distract from that effort, they are sometimes necessary. All of these things, these corrective, and therefore punitive measures, are sometimes necessary; but what I complain about is their overemphasis. The overemphasis of those things to the exclusion of a positive program of human welfare, human advancement, that is what I complain about. I think it is very wrong. And I have certainly appealed to everybody that I can reach with my voice to give their attention-not necessarily to agree with every single item in this program, but for goodness' sake, to take out what is good and to stand behind it, and to give less attention to subjects that are unworthy, really, of occupying our time from morning until night. Q. Edwin Dayton Moore, United Press: Mr. President, are you going 305

Page  306 q 50 Public Papers of the Presidents on both television and radio with your tax talk? And do you have any idea what night it will be? THE PRESIDENT. As a matter of fact, I haven't even asked for time yet. Actually, what I mean is this. I want most informally and as simply as I can to explain the philosophy underlying a tax program, what it means. I assume, because I believe this is the practice, I assume that it will be on both television and radio because, I assure you, it will be nonpartisan as far as I am concerned. Q. Paul R. Leach, Chicago Daily News: Will that be next week, Mr. President? THE PRESIDENT. I think so. Q. Mr. Leach: Not this week? THE PRESIDENT. Well, what are we on now? We are on Wednesday. Next week. Q. Sarah L. McClendon, El Paso Times: Mr. President, we all know how you feel about the Bricker amendment and about keeping the powers of the executive branch independent of the others. But if some examples of flagrant cases, where the international executive agreements negotiated by agencies of the executive branch of the Government were presented to you, where these agreements, made internationally, violate internal law, would you be inclined to reconsider those agreements and to disapprove them? THE PRESIDENT. Well, it is a very intricate hypothetical question. I haven't seen these agreements, and I don't know exactly what I would do. But I will say this: if I have gotten so rigid in any conviction of theory that I can't take any case that is put in front of me and try to decide it with such enlightenment as God has given me according to what I believe to be the best interests of the country, then certainly they ought to move rapidly to impeach me. I certainly would try to do so. Q. James J. Patterson, New York News: Mr. President, Senator Stennis said yesterday that we were in danger of becoming involved in World War III in Indochina because of the Air Force technicians there. What will we do if one of those men is captured or killed? THE PRESIDENT. I will say this: there is going to be no involvement of America in war unless it is a result of the constitutional process that is placed upon Congress to declare it. Now, let us have that clear; and that is the answer. 306

Page  307 Dwight D. Eisenhower, I954 Q. Anthony H. Leviero, New York Times: Mr. President, Chancellor Adenauer suggested the other day that we ought to return the seized German assets in this country. I wonder if any decision has been reached on that. THE PRESIDENT. Well, there has been no decision. It has been a subject of study since, I think, almost the first day I came into this office. It is a very difficult one. I personally believe that this matter should be settled, cleared up, once and for all, and we get out of the business. That is what I am trying to do. Q. John Herling, Editors Syndicate: Mr. President, do you plan to send up a supplementary message on labor relations to Congress? THE PRESIDENT. I don't know. There is probably never a week goes by that there are not serious talks on some phase of labor relations, someone coming in to make a recommendation. There is no plan at this moment to send a specific message up; however, that doesn't preclude the fact that I could. Q. A. Robert Smith, Portland Oregonian: Mr. President, about 3 weeks ago, you issued a formal statement at your news conference endorsing a dam in Oregon, Cougar Dam, and you said that this exemplified what you have meant all along as a partnership proposal-that the Federal Government would build the dam and the local utility would install the generators. At about the same time, a group of Arkansas Senators and Representatives called on Mr. Dodge at the Budget Bureau, in trying to urge him to have the Federal Government proceed to build several additional dams on the White River. They reported that he said that hereafter the partnership policy was the only thing that would be followed in the construction of dams in the West, and in the South, too; that is, only in cases where local utilities would install the generators. Now, can you clarify that? THE PRESIDENT. Well, it has never been stated in that way. If you will go back over every statement that I have ever made about this question of public power, you will find, on the erection of these multiplepurpose dams, that wherever it is feasible, I want local participation; because I believe you will get greater economy and greater care in the operation and the building and the use to which the dam is put. Now, it is also acknowledged in every single statement, there can be cases where it is so exclusively to the Federal advantage to do this thing, 307

Page  308 Public Papers of the Presidents of course, they will do it then. The rule of looking for the partnership is exactly what I hope to follow, but I don't preclude the possibility that these others come up. Of course, they do. Q. Garnett D. Homer, Washington Star: Mr. President, do you have any travel plans for this weekend that you can tell us about? THE PRESIDENT. As a matter of fact, I hope to go up to Camp David, if I can. Now, there is still doubt in the way, but I want to go up and take a look. As a matter of fact, from there, I think I might say, I would hope to roam around at least as far as a little local golf course that some of you may know about. Q. Mrs. May Craig, Maine Newspapers: Mr. President, could I have a second question? Would you comment on Stevenson's criticism of your "new look" defense program? THE PRESIDENT. Well, of course, I comment on nothing that other individuals say. I would merely comment, here, this: I have spent a long time in the military services. In all the really important positions I ever had, I dealt with the three services, not with the single one-I mean, in important positions in higher rank. I am concerned about the security of this country, I hope, as seriously as any single individual alive. If I have too much confidence in my own judgment here, well, that is for someone else to say, and I am therefore subject to criticism. But I will say this: I am doing nothing in the security departments that I don't believe is for the welfare and the security and the continued safety of the United States of America, and I am not going to demagogue about it. Q. William V. Shannon, New York Post: Mr. President, along that line, there has been criticism that, unlike Presidents Roosevelt and Truman, that this administration has engaged in insufficient prior consultation with the leaders of the opposition party in forming defense and foreign policy. Would you care to comment on that? THE PRESIDENT. You say they are complaining because we are guilty of insufficient? Q. Mr. Shannon: Yes. THE PRESIDENT. You haven't heard the statements made to me that they were never consulted in the last 20 years, according to my reports, except after a decision has been made-the fait accompli, and here it is. That has been the complaint made to me. We have been going to 308

Page  309 Dwight D. Eisenhower, 1954 (I 50 extraordinary lengths, and they look at me sometimes rather askance because of my insistance on it. I would say the shoe is on the other foot so far as my reports go. Q. Anthony H. Leviero, New York Times: Apropos of the "new look" question, Mr. President, is there any change in the procedures of the Joint Chiefs of Staff in considering defense policies? Any change since you came? THE PRESIDENT. None at all. Look. Let us go back to that question again for a minute. We recognize one thing, and one thing has caused the new look, so called. As you know, I despise all slogans; I don't think they are truly descriptive of anything. But we were in an emergency pointing up toward some fancied date. They selected July I, 1952, '54, or whatever-you pick the date-but we were working toward that. What I ask all of us to remember is this: the free world is picking up a burden that it may have to carry on indefinitely. We can't look forward to a solution to the problems we have inherited as of next year or even in the next decade, possibly not in our lifetime. We have got to be able to carry this forward and in such a way that it will not wreck the very concepts on which all free government is constituted. Now, all that we are trying to do is to get these things so put together in view of their extraordinary, almost extravagant, cost and expense, to get all these things put together so that the free world can pick up this burden which is bound to remain a burden, and do it in a way that we don't have to abandon it at a critical point along the road, or we don't have to get hysterical with fear because we are afraid we are not doing too much. Remember, there are considerations on both sides of such problems or they wouldn't be problems. But we must, I insist, be ready for the long term, and that's a fact. Merriman Smith, United Press: Thank you, Mr. President. NOTE: President Eisenhower's thirtieth o'clock on Wednesday morning, March news conference was held in the Execu- 10, 1954. In attendance: i8i. tive Office Building from 10:33 to I I: OI 51986-60 23 309

Page  310 e 5I Public Papers of the Presidents 5 I 4J Remarks at Conference of the National Association for the Advancement of Colored People. March I, I954 Ladies and gentlemen: From time to time the President of the United States has the privilege of appearing before a body of Americans assembled here in Washington to extend to them greetings on behalf of the administration and of the Federal Government here located. And certainly, more often than not, he also has the privilege of extending felicitations and well wishes in the prosecution of their work. It is the last part of this statement that I want to refer to for a moment. My welcome to you is warm and sincere, but I should like also to take your time to talk about the good wishes that I extend for the prosecution of your work. I believe most sincerely in the statement of Lincoln that this nation was dedicated to the proposition that all men are created equal. I believe with the writers of the Declaration of Independence that men are endowed by their Creator with certain rights. And furthermore, I believe that the vast majority, the great mass of Americans want to make those concepts a living reality in their lives. I was talking only a few minutes ago with some of your leaders in the anteroom just off this hall. I had a chance to express my belief that all of us can take inspiration from this one thought: the great faith of the American people taken in the mass. There are vociferous minorities. There are people who, for selfish or for fearful reasons, do not fully live up to the concepts held and so eloquently stated by our Founding Fathers-or by Lincoln. But, by and large, the mass of America wants to be decent, and good, and just. Our people do not want to make differentiations among people based upon inconsequential matters of nature involving color and race. Admitting quickly-even if sadly-that the ideals of those people have not been reached, let us still remember this: this same thing is true of everything we do in life. Ideals are really never reached by imperfect humans. But the striving for them makes better both the great body we are trying to affect and ourselves. 310

Page  311 Dwight D. Eisenhower, I954 q 52 And so-and I hope, my dear friends, that doesn't sound like a sermon-I am merely trying to state my beliefs as fully and as frankly as I know how to do. But I believe that this struggle, this one that in your case now has gone on for, lo, these many decades, is producing results on the part of the administration. I stated my own personal views many times before the election. I have tried to state them since. Wherever Federal authority clearly extends, I will do the utmost that lies within my power to bring into living reality this expression of equality among all men. By no means do I come here to make a political statement or to outline for you what has been done. But I do submit that in the two areas that I spoke about in the campaign, definite progress has been made. It is in the areas of all the armed services and where their territories and functions and activities extend, and right here in the District of Columbia. With respect to these, I expressed certain convictions and determinations. Not in all cases have the full results been achieved. But we are still trying. I know of no other slogan that is so good for all of us as once we have determined upon and visualized a worthy ideal, to keep on trying with all that is in us. I wish for each of you an enjoyable time in this Capital. I hope that you, aside from the fruitfulness of your work, have the satisfaction of seeing something around this town that you will carry back with really fond memories. I hope that you will find something just outside of the beauty of the buildings and the niceness of nature. For all of you-good luck and goodbye. NOTE: The President spoke in the Departmental Auditorium at 12:30 p.m. 52 41 Statement by the Presidenton the Approval by the Belgian Parliament of the European Defense Community Treaty. March 12, 1954 I HAVE JUST been informed that Belgium, by the vote of its Senate today, has completed all parliamentary action leading to ratification of the treaty establishing the European Defense Community. Belgium has thus become the third nation whose legislature has taken this important step. 3"

Page  312 (e 52 Public Papers of the Presidents One of the most important conditions essential to assuring lasting peace will be met when an integrated and, therefore, stronger European Community has been built. I am gratified that steady progress is being made toward this goal. 53 eI Remarks on Dedicating by Remote Control the First Power Unit at Fort Randall Dam, South Dakota. March I 5, 1954 Governor Anderson, and all Americans participating in the ceremony at Fort Randall Dam this morning: It is both an honor and a privilege to be able to gather with you people by the means of this long distance cable in dedicating the first power unit that Fort Randall Dam will operate. The occasion is significant not only to the individuals who will benefit directly from the flood control features, the navigation, the power, the irrigation-everything that will come from this dam. It is a symbol also of what we all over America must do about our most precious natural resource. By this I mean water. Water uncontrolled, improperly used, can cause us more damage in this country, possibly, than almost any other single element. Properly used, properly harnessed, it can be our greatest resource. It is one of my most earnest ambitions, an ambition shared so far as I know by every political leader of both parties in Washington and elsewhere and by all of my associates in the Cabinet-to make certain that we find the best and most intelligent ways of participating through a combination of Federal, State, and local assets in developing the water resources of our country so as to be of lasting benefit for the whole Nation, now and always. And now, my friends, with these very few, but very earnest remarks, it is my privilege to press the key that will start in operation this first power element at Fort Randall Dam. NOTE: The President spoke in the Cabinet Room at 12:30 p.m. 3I2

Page  313 Dwight D. Eisenhower, 1954 41 54 54 to Radio and Television Address to the American People on the Tax Program. March I 5, 1954 [ Broadcast from the White House at 9: oo p.m.] Good evening, my friends: I would like to talk with you tonight about something that concerns each of us personally and directly-especially on March I 5th. I want to talk about our taxes-and about the new tax program that Congress will debate this week. Now, I can talk only about a few essential facts in this program because, my friends, this goo-page book is the new tax program, and this 5oo-page book is the explanation made by the Ways and Means Committee of the House of Representatives to the House regarding this bill. You and I tonight will be discussing only a very few of the high spots. Now, we recognize, of course, that taxes are necessary. We know that through taxes our Government gets the money to carry on its necessary functions. The most costly is defense. Only at our peril may we pursue a penny wise, pound foolish policy in regard to the Nation's security. In the past year, we have been able to make real savings in defense costs. But despite these savings, 70 cents out of each dollar spent by your Government still go for defense purposes. The remaining 30 cents go for many things: to meet our obligations to veterans-to carry on important activities overseas-to pay the interest on the gigantic public debt-and to do within our country what Abraham Lincoln described as "those things which the individual cannot do at all or so well do for himself." I know how burdensome your taxes have been and continue to be. So we are watching every expenditure of Government-to eliminate waste, duplication, and luxury. But while we are insisting upon good management and thrift in Government, we have, at the same time, asked the Congress to approve a great program to build a stronger America for all our people. So let me give you some examples of the things we want to do in this program: We want to improve and expand our social security program. 313

Page  314 Public Papers of the Presidents We want a broader and stronger system of unemployment insurance. We want more and better homes for our people. We want to do away with slums in our cities. We want to foster a much improved health program. We want a better and a lasting farm program, with better reclamation and conservation. We want an improved Taft-Hartley Act to protect workers and employers. We want wider markets overseas for our products. We want-above all-maximum protection of freedom and a strong and growing economy-an economy free from both inflation and depression. Most of these things cost money. Without adequate revenue, most of them would be abandoned or curtailed. That is why our tax proposal is the cornerstone of the entire effort. It is a tax plan designed to be fair to all. I am sure you join me in the hope that the Congress, before it adjourns, will approve this program for a stronger America. And along with this great Plan for America, we want also to reduce your taxes so you can save or spend more of your own money, as you personally desire. Now, to reduce taxes, we had to find some way of saving money, for despite many years of heavy taxation, our Government has been running deeper and deeper into debt. A year ago, this administration inherited a budget calling for a spending program that we have since reduced by twelve billion dollars. Of this total saving, seven billion dollars is being made this year. Now, seven billion dollars is so much money-even in Washingtonthat it's hard to know what it really means. Let's see if we can get some idea of how much it is. The money American farmers got last year for all the corn and all the wheat grown in our entire country was seven billion dollars. The money Americans paid in all of last year for household utilities and for fuel amounted to seven billion dollars. The money Americans pay each year for doctor, dentist, medical and hospital bills is seven billion dollars. Now, I think you will agree that we have, indeed, saved a lot of money. Without these savings, there could have been no tax relief for anyone. Because of these savings, your tax cuts were possible. 314

Page  315 Dwight D. Eisenhower, 1954 On January Ist this year your taxes were cut by five billion dollars. The tax revision program now in Congress will cut taxes by over one and a half billion dollars more. The total may be nearly seven billion dollars. Thus the Government is turning back to you about all that we expect to save this year. Meanwhile, we are seeing to it that the Government deficit, instead of growing, may continue to shrink. Now, in the light of all this, let's look at the tax program now in Congress. To start with, it is the first time in half a century that our tax laws have been completely overhauled. This long overdue reform of old tax laws brings you benefits which go beyond the tax reductions I have just mentioned. Millions of individual taxpayers-many of you listeningwill benefit. Now here are some of the ways in which you will benefit: You will have larger deductions for your medical expenses. There will be special deductions for the cost of child care for those among you who are widows who work. Fairer tax treatment for the widows of policemen and firemen and others who have fraternal or private pension plans. Fairer tax consideration for those of you who are retired. Deductions of up to $Ioo a week for those of you receiving sickness or accident benefits. There are, in addition, important provisions to encourage the growth and expansion of industry, the creation of jobs, and the starting of new and small businesses. Now, one of these provisions is of particular interest to those among you who have made or want to make investments to help meet the expenses of a growing family or to meet the requirements of old age. This year, we proposed to reduce by a modest amount or percentage the existing double taxation on dividend income. This will be important to all of us, whether our savings are large or small. It will encourage Americans to invest in their country's future. And let us remember this most important fact: the average investment needed to buy the tools and facilities to give one of our workmen a job runs about eight to ten thousand dollars. The more we can encourage savings and investments, the more prosperous will be i6o million American citizens. Just as we need more spending by consumers, so we need buyers for items produced by heavy industry-for lathes and looms and giant gen315

Page  316 Public Papers of the Presidents erators. The making of these things gives jobs to millions of our people. This carefully balanced tax program will encourage this kind of production. It will make new jobs, larger payrolls, and improved products. It will give us lower price tags on many of the things we want and need. And here is another important part of this program. It concerns the income tax on corporations. Under the law, this tax would be reduced two weeks from today. Now I have asked the Congress to keep this tax at 52 percent and not to permit it to go down to 47 percent at this time. The extension of this extra tax on corporations will provide enough money to pay the costs of the benefits this tax revision program will bring to individuals and business. So, there you have, in broad outline, the new tax revision program. I most earnestly hope that the Congress will pass it. But-this is an election year. Some think it is good politics to promise more and more Government spending, and at the same time, more and more tax cuts for all. We know, from bitter experience, what such a policy would finally lead to. It would make our dollars buy less. It would raise the price of rent, of clothing, and of groceries. It would pass on still larger debts to our children. Some have suggested raising personal income tax exemptions from $6oo to $8oo, and soon to $i,ooo, even though the Federal budget is not in balance. You've seen this kind of deal before. It looks good on the surface but it looks a lot different when you dig into it. The $ i,ooo exemption would excuse one taxpayer in every three from all Federal income taxes. The share of that one-third would have to be paid by the other two-thirds. I think this is wrong. I am for everybody paying his fair share. When the time comes to cut income taxes still more, let's cut them. But I do not believe that the way to do it is to excuse millions of taxpayers from paying any income tax at all. The good American doesn't ask for favored position or treatment. Naturally he wants all fellow citizens to pay their fair share of the taxes, just as he has to do, and he wants every cent collected to be spent wisely and economically. But every real American is proud to carry his share of that national burden. In war and peace, I have seen countless examples of American pride and of the unassuming but inspiring courage of young American citizens. I simply do not believe for one second that 3I6

Page  317 Dwight D. Eisenhower, I954 anyone privileged to live in this country wants someone else to pay his own fair and just share of the cost of his Government. Aside from that, let's just be practical. The loss of revenue involved in this proposal would be a serious blow to your Government. A $ioo increase in the exemption would cost the Government two and a half billion dollars. To increase the personal exemption to one thousand dollars would cost eight billion dollars. This, of course, would be on top of the large tax cuts our savings have already made possible this year. Now, in your interest I must and will oppose such an unsound tax proposal. I most earnestly hope that it will be rejected by the Congress. Especially, I hope you feel the same way. Every dollar spent by the Government must be paid for either by taxes or by more borrowing with greater debt. To make large additional savings in the cost of Government at this moment means seriously weakening our national defense. I do not know any friend of the United States who wants that, under present world conditions. Now the only other way to make more tax cuts now is to have bigger and bigger deficits and to borrow more and more money. Either we or our children will have to bear the burden of this debt. This is one kind of chicken that always comes home to roost. An unwise tax cutter, my fellow citizens, is no real friend of the taxpayer. Now, this evening I mustn't overlook those among us who are professionally faint hearted. They have been arguing lately that we are on the very brink of economic disaster. Viewing with gloom is only to be expected in the spring of an election year. The truth is, we do not have a depression. And what's more, as I have said time and time again, your Government will continue to use its full powers to make sure that we don't have one. A month ago, I expressed to the Congress my conviction that we would be able to go from wartime to peacetime conditions without serious economic trouble. Nothing has happened since to change my mind. Some unemployment has developed in different parts of the country, but the Nation as a whole continues to be prosperous. Unemployment has reached about the level it was in the spring of I 950. The broad program I have proposed to the Congress will strengthen our economy. When it is approved by Congress, it will both increase the number of jobs and help make every man secure in the job that he has. 51986-60 24 31I7

Page  318 qy 54 Public Papers of the Presidents Of course, everyone wants tax reductions of the right kind, at the right time. That specifically includes this administration. This has been proved by the large tax cuts we have already made possible this year. But at this time economic conditions do not call for an emergency program that would justify larger Federal deficits and further inflation through large additional tax reductions. My friends, a century and a half ago, George Washington gave us some good advice. He said we should keep a good national defense. He also said we should not ungenerously impose upon our children the burdens which we ourselves ought to bear. I know you and I agree with Washington on these points. We agree, too, on efficiency in Government, and on a forward-looking program for a stronger America-an America whose people know good health and prosperity-who are secure, day and night, from fear at home or abroad. That is the aim of this tax program. That goal, my fellow citizens, is a goal worthy of our people. 55 (I Letter to the Governors of the States and Territories Requesting Them To Serve as Honorary Chairmen, United Defense Fund. March 16) 1954 [ Released March i6, 1954. Dated March 15, 1954 ] Dear Governor Some time ago, I accepted the Honorary Chairmanship of the United Defense Fund. I did this because of my deep conviction that the defense of this country depends upon the voluntary activities of its citizens, as well as upon the authority of government. I am delighted that General of the Army Omar N. Bradley has accepted, at my request, the active campaign chairmanship. There is great need this year for an aggressive campaign for financial support for the United Defense Services. We have moved from a fighting war to an armed peace, but the problem of sustaining the high morale of our defense forces is no less acute than during time of actual combat. If we are to maintain the United Defense Services-particularly those of 318

Page  319 Dwight D. Eisenhower, 1954 (e 56 the USO-on the desired high level, the understanding and support of the American people are vital. In the task of marshalling this support, we hope to enlist as leaders the official heads of State and Territorial Governments. Accordingly, I am asking each State and Territorial Governor to serve as Honorary Chairman for the United Defense Fund in his State or Territory. I hope that it will be possible for you to accept this important assignment. Sincerely, DWIGHT D. EISENHOWER 56 eI Statement by the President Upon Signing Bill Providing for Protection of Mexican Migrant Labor. March i 6, 1954 ON SIGNING this legislation, I wish to dispel any misconceptions which may exist regarding its purpose. The basic purpose is to enable this Government to give Mexican migrant labor the protection of our laws. Whenever United States employment is at such a level that Mexican workers are needed to supplement the United States labor force, and whenever they can be spared temporarily from Mexico, we of course welcome their valuable assistance to our farming community if they will cross the border legally. The problem of adequate control and protection of Mexican workers in the United States has in recent years been the subject of searching analysis by the Governments of the United States and Mexico, working both independently and together. The two Governments, after more than four months of careful study and friendly negotiation-conducted in an atmosphere of mutual respect worthy of two sovereign neighbors-announced on March io that they had concluded a renewed and improved Migrant Labor Agreement. While neither Government assumes that this Agreement will prove to be the final answer to the whole complex problem, it provides necessary means for moving forward to more complete solutions. Unforeseeable future developments may some day lead the two Governments to determine that formal agreement on this subject is no longer desirable but that appropriate action by each within its own jurisdiction is still essential. Authority has existed for a number of years for the 319

Page  320 (e 56 Public Papers of the Presidents Attorney General to admit Mexican farm workers under whatever conditions he alone may establish, but because of the wording of applicable legislation there has not been adequate authority for United States governmental measures for protection and placement of the workers at any time there should not be an agreement with Mexico. The present law is precautionary in that it removes this disability and enables the Secretary of Labor to perform these functions of protecting and placing migrant workers which are so important to both United States and Mexican interests, at any time these services may be required. NOTE: As enacted the bill (H.J. Res. 355) is Public Law 309, 83d Congress (68 Stat. 28). 57 4t The President's News Conference of March I7, I954. THE PRESIDENT. I trust, ladies and gentlemen, everybody is wearing his proper emblem and done up in green this morning. Someone asked last week about the coffee investigation. We inquired, and the Chairman says that the investigation is coming along in good form, and they should have a report in the near future. There is one other little item, an Executive order that will be published, I guess this afternoon, having to do with this research and development. The only reason I mention it is because of the tremendous impression and impact it makes on me when I look at the sums that the Government spent for research and development only a matter of I2, I3 years ago, and what we are spending now. When you have an item of more than $2 billion in your budget, you have something that takes, of course, not only the finest scientific brains you can find in the United States to supervise and coordinate it, but it is really big business of a very large order; I believe in 1940, in all departments, that ran to $ioo million. I think that Mr. Hagerty will have a statement to put out somewhere along about 4: 00 o'clock. I think that is all I have, so we will go to questions. Q. Merriman Smith, United Press: Mr. President, Representative Sterling Cole, the Chairman of the Joint Congressional Atomic Energy 320

Page  321 Dwight D. Eisenhower, I954 (] 57 Commission, said last night that we now have a hydrogen bomb and can deliver it anywhere in the world. I wonder if you could discuss that? THE PRESIDENT. No, I wouldn't want to discuss that. I hadn't seen the statement, and I don't recall what we have released. My embarrassment at this moment is not that I wouldn't be glad to talk over certain of these things if I could recall how far we have gone in releasing information on the point, but when you say "can deliver anywhere in the world," why, of course, I guess that assumes that you have the right places from which to do it, and the machines, and so on. I would say that was a question not to be discussed until I was more sure where I am standing. Q. Mrs. May Craig, Maine Newspapers: Mr. President, he did put in the reservation if we have bases near enough. He did say we do not have nonstop planes that can take it there now. THE PRESIDENT. I didn't read what he said; and I am sorry, Mrs. Craig, I don't believe I will discuss that this morning because I just don't think it is wise for me to do so until I check up. It is possible that I have said so much in the past that I would be perfectly justified in discussing it in some detail this morning. I will tell you what I will do; I will look up and see where we stand, and if it comes up at our next conference, why then, I will discuss it if I should do so. But I just don't want to go off the deep end here when I don't know where I'm standing. Q. Edward T. Folliard, Washington Post: Mr. President, I would like to ask you about a reply you made to a question last week. You had been asked about Indochina, about the possibility of a war growing out of an incident in Indochina, and you made this reply: "I will say this: there is going to be no involvement of America in war unless it is a result of the constitutional process that is placed upon Congress to declare it. Now, let us have that clear; and that is the answer." What I wanted to ask, Mr. President, is this: does that mean that if an aggression came, one, say, like the aggression in Korea in I950, that you would hold up action until Congress debated the matter and then declared war? THE PRESIDENT. Well, of course, you are trying to foresee every possible condition that can arise. 32I

Page  322 Public Papers of the Presidents Last week we were talking about Indochina, and I believe the question was concerning the possibility of one of our men, or one or two, getting killed, and what that would mean. I tried to reply very emphatically, and I still don't back away from the generalization I made in this general sense. But let us take an extreme case: suppose, while we are sitting here, right at this minute, there came a message flashed over the United States that coming up from the south somewhere were a great fleet of airplanes, and we had positive evidence that they were intent upon spreading destruction in the United States. Now, if there is anyone here or any citizen of the United States who would hold me guiltless if I said, "We will sit here and try to get in touch with Congress," well, then, I don't know who they are. That is an extreme case, and we must be careful not to make generalizations just in terms of taking care of extremes. You can go right on down the line until you can have something where you say, "Well, the best interests of the United States are involved in this incident taken with someone else, but there is plenty of time to discuss it with Congress." But when you come down to the matter of self-preservation, quick reaction to a threat against your life, I believe there is a rule that applies to nations exactly as it does to the individuals: you don't call a policeman if your life is actually in danger; if you have nothing else to do but run, you at least try to do your best. I think that a rule of reason must apply here. But as far as trying to involve in any kind of circumstances the United States in a complete war-after all, war involves many things. There are all sorts of relationships changed in the world. We are talking now about just defense against that sudden attack. Then, of course, you have the congressional. Q. Mr. Folliard: Mr. President, the argument was made in I950 that speed was very urgent, that it was necessary to move very quickly. THE PRESIDENT. Well, I don't remember exactly about that. I remember I was up in Canada, as a matter of fact, when it happened, and I came out of Canada. But if I recall, the first order was that there would be air support given to the South Koreans, the Republic of Korea troops; so there was plenty of time then to discuss what further action you would take, plenty of time to discuss it by Congress, I should think. 322

Page  323 Dwight D. Eisenhower, 1954 (J 57 I am not trying to judge or to pass judgment on what happened. I am merely saying that there arise occasions in the handling of anything that is as complicated as a great country such as ours in its relationships with other countries, that you can't always predict exactly how you will handle a thing. We must, once in a while, trust to the judgment of humans and of people; that is why Government is so much dependent upon the people holding it. I am merely trying to say in my statements, I am against violating the Constitution. Actually, this thing was so well debated, you know, when the Constitution was passed, that it is implicit, I think, in our whole document that the President must act against sudden unexpected aggression. They debated just exactly that point when they passed that provision that the Congress would declare war. Q. William P. Flythe, Hearst Newspapers: Mr. President, could you say anything about the status of the negotiations with Russia on the joint development of atomic energy for peaceful purposes? THE PRESIDENT. No, I can't say anything about it because the conversations that are going on are still on very much of a private basis. I can't say anything. Q. Ethel Payne, Defender Publications: Mr. President, Vice President Nixon said on his return from Asia that every act of racial discrimination or prejudice in the United States hurts America as much as an espionage agent who turns over a weapon to a foreign enemy. He added that every American citizen can contribute towards creating a better understanding of American ideas abroad by practicing and thinking tolerance and respect for human rights every day of the year. We know also that you have taken the firm stand along these same lines. Do you not feel then, that the continuance on our statute books of the McCarran-Walter Act containing the national origins quota system, which discriminates against Asiatic people from southeastern Europe and from the West Indies, is harming our foreign policy, and will there be any proposal made to Congress on immigration which might alleviate these conditions? THE PRESIDENT. As you know, you are bringing up a very broad, but it is a very vital question to us. Now, there has not been brought to me from the State Department this act and its immediate and direct effect upon our relationships with 323

Page  324 Public Papers of the Presidents other countries, so there have been no discussions between me and the State Department officials on the point. I do say that I believe as we come closer and closer to living by the principles enunciated in our founding documents, our own situation abroad is going to be better, and that is the kind of thing for which I strive. I am not going to be a bull in a china shop and destroy things. I am working for things; that is what I am trying to say. Q. Richard Harkness, National Broadcasting Company: If I may go back, sir, to the question raised by Mr. Folliard. Yesterday, Secretary of State Dulles said that he interpreted our NATO obligations and our obligations under our Latin-American pacts to retaliate in the event of an attack on one of our allies, and that there was no need for you to go to Congress for a declaration of war in such an event. On the other hand, thinking back, I discovered that the Senate Foreign Relations Committee, in approving the NATO pact in June I949, this committee said that the treaty gave no authority to the Chief Executive that was not there in the absence of a treaty. Would you comment on Mr. Dulles' speech? THE PRESIDENT. As a matter of fact, I don't think, by any manner of means, Mr. Dulles meant his remarks to say that I would have the authority to declare war. But there is a difference between an act of war and declaring war-I mean an act of violence. I come back again to the obvious right of self-protection, self-preservation, if you are attacked and you have notice. What would you do if you suddenly were facing a gigantic Pearl Harbor? This thing isn't academic. When you get into that extreme, you are going to act, do whatever you think will save best the people of the United States, and would most quickly diminish the power of the other fellow to repeat it. Now, this whole thing within hours has to be before the Congress. They have to act on this. After all, you can't carry on a war without Congress. They have to appropriate the money, provide the means, the laws, and everything else. So Congress would have to come in on an emergency basis, if they were absent; or if they were here they would start meeting at night quickly. Things would have to move at the most tremendous speed. But I believe there is a great gulf between what the President would do to protect the United States and an actual declaration of war. Now, I could be mistaken, and I would not argue it. I would like 324

Page  325 Dwight D. Eisenhower, 1954 'l 57 to discuss it with Foster Dulles but, having talked to him, I am sure that we are absolutely in agreement as to what we mean about it. Q. Richard L. Wilson, Cowles Publications: Mr. President, on this general subject there is another point involved. Mr. Dulles has outlined the policy of retaliation, and in some quarters that has been interpreted as meaning that if you have a local war or a local situation that the retaliation might be against Moscow or Peiping or some major point. Could you discuss that question of the local warlike situation? THE PRESIDENT. Mr. Wilson, there is one thing I can tell you about war, and almost one only, and it is this: no war ever shows the characteristics that were expected; it is always different. What we are trying to say now is to express a generalization that would apply in an infinite variety of cases, under an infinite variety of provocations, and I just don't believe it is possible. I think that what has got to be decided is how deeply is the safety and security of America involved. We do know that there are weapons now in being that give more than ever to the attacker a tremendous advantage, the man who attacks by surprise. The element of surprise, always important in war, has been multiplied by the possibility of creating such widespread destruction quickly. Therefore, any President should be worse than impeached, he should be hanged, I should say, if he didn't do what all America would demand that he do to protect them in an emergency. But when it comes to saying that where on the fringe or the periphery of our interests and of wherever we may be, that any kind of an act on the part of the enemy would justify that kind of thing, that I wouldn't hold with for a moment; I don't think anybody else would. Q. Mr. Wilson: Well, the point has been made, sir, that the policy which Mr. Dulles outlined on January I 2th would mean that we wouldn't take part in wars like the Korean War or the Indochinese War, but that if we did do anything to meet the threat of those local wars, it would be a direct attack upon the major aggressor at some point most desirable for us. THE PRESIDENT. Well now, I will tell you: Foster Dulles, by no stretch of the imagination, ever meant to be so specific and exact in stating what we would do under different circumstances. He was showing the value to America to have a capability of doing certain things, what he believed that would be in the way of deterring an aggressor and preventing this dread possibility of war occurring. 325

Page  326 (I 57 Public Papers of the Presidents So no man, I don't care how brilliant he is, would undertake to say exactly what we would do under all that variety of circumstances. That is just nonsense. Q. Marvin L. Arrowsmith, Associated Press: Mr. President, I would like to get clear on one point. You are talking throughout here about the possibility of Presidential action in the case of an attack without going to Congress first? THE PRESIDENT. I am talking about things you would have to do in 2 minutes, that is all. Q. Martin S. Hayden, Detroit News: Mr. President, since our last press conference, a Senate committee has released certain documents in which they allege that your Secretary of the Army made threats against the Senate committee, and offered to turn in the Navy and the Air Force if he could get a favor from the committee. I wanted to ask you just this, sir: as the man responsible for the Executive, are you at all disturbed about these reports and these allegations against this man in your administration? THE PRESIDENT. Well, to say that a thing like that causes no concern to a Chief Executive would, of course, be ridiculous. After all, I have plead and plead for positive action to try to get our minds off these petty quarrels, negative results of calling each other names, and getting ahead with something that is good for the United States. I believe that with all my being, so every time that these things occur and upset people on the Hill and get them separated from the Executive, why, of course, it is serious. Now, when you ask me whether I believe Secretary Stevens, of course I do. If I didn't believe him, if I didn't have faith and confidence in him, he wouldn't be where he is; of course I believe in him. I don't say he can't be mistaken, I should make that clear. I don't know, there may be something that he has been misinformed on; but so far as his integrity and honesty are concerned I stand by him. Q. Kenneth M. Scheibel, Gannett News Service: Mr. President, a bill has been introduced in the House to change the St. Lawrence Seaway legislation which has been approved by the committee, substituting Federal funds and putting in private capital to finance that project. Could you give us the administration viewpoint on the use of private capital rather than Federal? THE PRESIDENT. I don't quite-you say substituting Federal funds? 326

Page  327 Dwight D. Eisenhower, I954 Q. Mr. Scheibel: Substituting private capital for Federal money. THE PRESIDENT. I haven't seen the exact language of any amendment proposed, but I would say this: I stand behind the bill as it came out of committee; that is what I should like to see enacted. Q. Robert G. Spivack, New York Post: Mr. President, there has been considerable speculation as to what the renewed fighting in Indochina means, and I wondered if, on the basis of any reports you have-well, some of the speculation goes along the lines that it is for the psychological effect on the Geneva conference; and others is that it means a renewal of Russian belligerency; and then there are some others. I wondered how you interpreted it. THE PRESIDENT. No, I have no exact interpretation of those things, as none of us has. Strange and weird things are happening in this war. There was a movement, a very strong movement, you know, to the south and southwestward. Now, the spearheads of that force moved back to around this town, whose name I can never pronounce, but it is probably at the tip of your tongue, all of you. I assume that this force, having made all of this move down there, has now decided to see if they can accomplish something that they would consider a very great victory, if they could really defeat this French force that is holding this citadel and town. It wouldn't look like it was planned originally for that, because otherwise why waste all the time going on south. But they have come back. The fighting season, I believe, there will soon be drawing to a close because of the rains; so it looks to me like a battle just to try to overpower the French in that region. It may be something else; I haven't asked really my G-2 boys to give me their interpretation of the movement. Q. Sarah McClendon, El Paso Times: Sir, Congressman Raybum and Congressman Cooper and Senator George undertook to answer you on taxes last night. I wonder if you would like to answer them on this point: they say the dividend features of this tax bill would give only 6 families out of every i,ooo great benefits, and 8o percent of the people would not be benefited by the bill, and that those with incomes less than $5,000 would really suffer. THE PRESIDENT. U.S. Steel is probably taken as the example of big business, owned by rich families. 327

Page  328 '1 57 Public Papers of the Presidents There are 300,000 men working for U.S. Steel; there are 300,000 stockholders in U.S. Steel. Fifty-six percent of those stockholders are men who draw less than $5,ooo a year in their total incomes. Of that number, I think there is a total of 46 percent below the $4,500 mark, which is the average wage of the steel earners. There are more stockholders in U.S. Steel that are in the bracket $2,000 to $3,000 income than there are in any other thousand-dollar bracket in the whole list of stockholders. Now, to say that the bill that we have designed and worked on all these months is designed to help rich people, is an error. Q. Gould Lincoln, Washington Evening Star: Your speech on taxes has been interpreted in some quarters as meaning that you would veto the tax bill if it should contain the large exemptions proposed by some Congressmen. Would you tell us something about that? THE PRESIDENT. As I have explained here before, it would be dangerous to say in advance what bills a President should veto and should not. As you know, the President does not have the power of the item veto; and he has to take the bill or reject it. I explained before, sometimes you have to take very unpleasant features along with an otherwise good bill. However, any bill that in my opinion is going to wreck us or put us in an impossible situation, then I have got to sit down with it and decide whether the bad features are more important than the good. That is about all I can say. But I do say this: I notice some of the people that suddenly want to cut our income way down are the very people who just a very few months ago were saying "We will not increase the debt limit." Now, they must have some answer to that one. Q. Milton B. Freudenheim, Akron Beacon Journal: Mr. President, yesterday you were visited by your Commission to sell the Government's synthetic rubber plants. I wondered if you have any comment on the progress of that effort? THE PRESIDENT. Only that they think they are making real progress. I believe there is a date set, before long, when this particular phase of expiration and all that comes to an end, and then start long negotiations. I know they believe that they are making real progress. Q. Robert J. Donovan, New York Herald Tribune: Sir, I had a question collateral to Mr. Hayden's on these investigations. There have been 328

Page  329 Dwight D. Eisenhower, 1954 reports that all these embroilments have impaired morale in the Army and, particularly among officers. Have you had any reports, sir, on that; or, in your judgment, is that likely? THE PRESIDENT. No, I haven't had any specific reports on it, but I will tell you: I would suspect that inside their hearts a lot of people hurt. The Army, and all the rest of the services, are rightfully very proud of the kind of service they have rendered to the United States. Now, when they find, sometimes rightly-well, as a matter of fact, it hurts more when it is rightly. When they are rightly criticized for the mistakes or errors or blunders of someone at the top of the services, they feel pretty low. When they are accused unjustly there is, I suppose you would say, a mixture of anger, resentment, and rather a great deal of sadness. They are people who are not articulate; they are not around making speeches in commercial clubs and all that sort of thing. They are people to whom I think we all owe a lot, and we ought to stand up and very carefully differentiate against anyone we think may have made a mistake and may have made a blunder, and these great armed services. There is a man for example, I see in the paper, who built a dog house. Well, he ought to live in it. I mean, he did it with Federal funds. [Laughter] Q. Edward T. Folliard, Washington Post: Mr. President, I would like to go back to the matter of Secretary Dulles and the doctrine of "massive retaliation." As you told Mr. Wilson, you can't foresee the things you might do under varying circumstances. Perhaps we are confused, because we have been led to believe that Secretary Dulles had enunciated some new doctrine. Is it a new doctrine, sir? THE PRESIDENT. Oh, no, not at all. Q. Mr. Folliard: Then there is nothing new about that? THE PRESIDENT. After all, let's remember this: the American sailors tried to fight back at Pearl Harbor, didn't they? Q. Mr. Folliard: Yes. THE PRESIDENT. Well, that was an act of war; it was an act of violence, at least. We would have been amazed had they not done it. If you can imagine such things happening on a larger scale, who is the man who has to act quickly? The President of the United States, as the Commander in Chief of the Armed Forces; he has got to do something. 329

Page  330 (I 57 Public Papers of the Presidents But when it comes down to saying that merely because in some corner of the world our vital interests are hurt, we are going to decide in advance such great and extraordinary action that the Congress really has no way of backing up, that wouldn't be right. Q. Mr. Folliard: Last week, Mr. President, you said you didn't particularly care for slogans, but we have had this, we have been hearing now about the "new look," the "new look" in defense, "new look" in foreign policy; is it true, sir, would we be wise to assume that nothing new has happened in the matter of militaryTHE PRESIDENT. Have you got 3 minutes to listen to a lecture? Q. Mr. Folliard: Yes, sir. [Laughter] THE PRESIDENT. All right. "New look": now, what do we mean? We mean this: we are not fighting with muzzle-loaders in any of the services. Every single day things change in this world, and any staff or any group of leaders doing his job is re-examining the world situation, the advances of science, the whole situation, geographic and otherwise, of our country and of others, to see what is it that we now need most to insure our security and our peaceful existence. You cannot possibly say that the kind of a unit and organization that I took to war or took over across the Channel in I944 would have any usefulness today whatsoever. For example, you will recall we landed on June 6; we got out of that narrow little beachhead on about July 25. All right; behind that we built up two artificial harbors and we were landing over the beaches. What would two atomic bombs have done to the whole thing? So you just simply can't take, in warfare or in any contemplation of war or preparation for war, take old patterns and say that is by which we live. All that the "new look" is is an attempt by intelligent people to keep abreast of the times; and if you want to call your today's clothes the "new look" as compared to what Lincoln wore, all right, we are in the "new look." But I just don't like this expression because it doesn't mean much to me. I mean that we are striving our best to meet the grave responsibilities that are placed upon people whose job is to protect this country. Let me point out this: I hear people say "bigger army." Now, our most valued, our most costly asset is our young men. Let's don't use them any more than we have to. 330

Page  331 Dwight D. Eisenhower, 1954 For 40 years I was in that Army, and I did one thing: study how can you get an infantry platoon out of battle. The most terrible job in warfare is to be a second lieutenant leading a platoon when you are on the battlefield. If we can do anything to lessen that number-remember this: we are planning right now the greatest peacetime army we have ever held, one million men in time of peace. What are we talking about? It is, I think, there is too much hysteria. You know, the world is suffering from a multiplicity of fears. We fear the men in the Kremlin, we fear what they will do to our friends around them; we are fearing what unwise investigators will do to us here at home as they try to combat subversion or bribery or deceit within. We fear depression, we fear the loss of jobs. All of these, with their impact on the human mind makes us act almost hysterically, and you find hysterical reactions. We have got to look at each of those in its proper perspective, to understand what the whole sum total means. And remember this: the reason they are feared and bad is because there is a little element of truth in each, a little element of danger in each. That means that finally there is left a little residue that you can meet only by faith, a faith in the destiny of America; and that is what I believe is the answer. This "new look"-the "new look" is just our effort to solve in one field, that of the direct military attack, to produce the best results we can for the protection of America. To call it revolutionary or to act like it is something that just suddenly dropped down on us like a cloud out of the heaven, is just not true, just not true. Q. Roscoe Drummond, New York Herald Tribune: Mr. President, may I ask a quick question, and that is, do you think the time will come when we will have a press conference in which events do not require us to ask a question about unwise investigators? [Laughter] THE PRESIDENT. I will tell you, Mr. Drummond, coming over this morning I said to one of my associates, I said, "You know, if one name comes up I am going to ask permission whether we couldn't have one press conference without this particular subject coming up." [Laughter] Q. Mrs. May Craig, Maine Newspapers: Mr. President, if you are able to talk to us at your next press conference about Mr. Cole and what he said on the hydrogen and atomic bombs, would you consider 33I

Page  332 '9 57 Public Papers of the Presidents answering the question as to why we do not have planes which can deliver the hydrogen bomb from continental United States? THE PRESIDENT. Of course, there are some of these questions that you had maybe get in the best engineers from Lockheed, and Consolidated and Boeing; ask those people, because there are certain limitations on every plane that is flying in the air today. However, I will look into the thing and see how much has been put in the public domain. I am perfectly ready to try to place in such perspective as I can, out of my experience before this group, such facts as are already in the public domain. But let me make perfectly clear, I am not going to release anything here that hasn't been released before. Q. Clark R. Mollenhoff, Des Moines Register and Tribune: Mr. President, has the White House given up in its effort to obtain the resignation of Colonel Johnson from the ICC? THE PRESIDENT. What are you talking about? [Laughter] It is a question I know nothing about; I don't know the name; I don't know what you are talking about. Q. Mr. Mollenhoff: Is it correct, Mr. President, that you don't know that Mr. Adams has had Mr. Johnson at the White House on a couple of occasions to discuss that? THE PRESIDENT. I suppose there are 500 people a day going in that office that I know nothing about. I don't know what you are talking about, so I don't have any answer whatsoever. Q. Robert G. Spivack, New York Post: Mr. President, on this question of fears, I think I can detect in all the questions that have been asked you here about the war question, there is one fear that seems to be involved, and that is the possibility of our involvement in the Indochina war if our men who are over there are further attacked. I know this came up last week at the press conference. THE PRESIDENT. And I gave my answer. You read it and you will find it is exact. Merriman Smith, United Press: Thank you, Mr. President. NOTE: President Eisenhower's thirty-first o'clock on Wednesday morning, March news conference was held in the Execu- 17, 1954. In attendance: i67. tive Office Building from 10:3I to I:o02 332

Page  333 Dwight D. Eisenhower, 1954 q 58 58 4I Veto of Bill for the Relief of Wilhelm Engelbert. March I 7, I 954 To the United States Senate: I return herewith, without my approval, S. 153, a bill "For the relief of Wilhelm Engelbert." This measure would grant the status of lawful permanent residence in the United States to Mr. Engelbert upon payment of the required visa fee. Mr. Engelbert is a native and citizen of Germany who was born in Dortmund, Westphalia, on July 27, I905. He entered the United States illegally on December 3I, I926, as a deserting seaman, with the intention of remaining here permanently. Between I926 and the outbreak of World War II in 1939, the alien did nothing to regularize his status in the United States. In fact, according to the record set forth in the Committees' reports upon this bill, his actions indicate clearly that he thought of himself as a German and showed his allegiance time and again as that of a German national. After the United States entered World War II, Mr. Engelbert was interned as an enemy alien. He remained an internee until July I, 1948. In due course, a warrant for his deportation to Germany was issued in I 943. This warrant, issued on grounds of illegal entry, was outstanding at the time of his release from alien enemy proceedings. Applications for reconsideration and reopening of the deportation hearings have been denied by the Board of Immigration Appeals. Although it appears that to a certain extent Mr. Engelbert's motives in becoming a member of the Nazi party, registering for service in the German army, equipping himself with German money to defray the cost of a trip to Germany, and other acts demonstrating allegiance to Germany, may have been dictated by a desire to assist his mother and to obtain legal entry into the United States, the fact remains that he did nothing to regularize his status for some twelve years. Furthermore, from I 939 until the end of World War II there is nothing in the record of this case to indicate that Mr. Engelbert showed real willingness to accept the responsibilities of a permanent resident of the United States. On the contrary, he sought repatriation to Germany during the war, and it was not until after 333

Page  334 Public Papers of the Presidents victory had been assured in Europe in 1945 that he withdrew his application and requested adjustment of his immigration status. Under these circumstances, I see no basis for setting aside the requirements of the immigration law. DWIGHT D. EISENHOWER 59 4[ Veto of Bill for the Relief of the Estate of Mrs. Margareth Weigand. March 17, I 954 To the United States Senate: I return herewith, without my approval, the enrolled bill (S. 502), "For the relief of the estate of Mrs. Margareth Weigand." Kurt F. Weigand, the son of Margareth Weigand and a German citizen resident in the United States, was interned in I942 as an enemy alien. Following his release from parole in I 945, he died in Fargo, North Dakota, by accidental drowning. Owing to his coverage under the Social Security Act, his mother, a resident and citizen of Germany, became entitled to a lump sum death benefit award. The amount of the award was vested in the Attorney General by Vesting Order I7973, dated May 3 I, 1 95 I, which was issued in accordance with the provisions of the Trading With the Enemy Act. This bill would provide for the return of the amount so vested to the estate of Mrs. Margareth Weigand. Mrs. Weigand was alive at the date of issuance of the vesting order. Section 39 of the Trading With the Enemy Act, as amended, in general prohibits the return of property or interests in property vested from nationals of Germany or Japan unless such nationals are eligible for return under the provisions of section 32 of the Act. Mrs. Weigand did not file a claim under section 32 for return of the amount vested, and the record contains no indication that she would have been eligible for return. Her ineligibility would disqualify her successors in interest. If ineligible, the enactment of the bill would authorize the transfer of the property to the beneficiaries of her estate contrary to existing general law. Moreover, even if these beneficiaries were eligible for the return of the property, this bill would bestow a preference on them by setting aside the claims procedures prescribed by general law. There is no apparent reason for singling out the beneficiaries for preferential treatment of any nature. 334

Page  335 Dwight D. Eisenhower, I954 (I 60 The reasons urged in support of this measure would equally apply to the cases of thousands of other enemy nationals whose property in the United States was vested pursuant to the provisions of the Trading With the Enemy Act. DWIGHT D. EISENHOWER 60 e1 Statementby the President Upon Signing Executive Order Strengthening the Scientific Programs of the Federal Government. March 17, 1954 SCIENCE has a vital role in our Nation's security and growth. During the past half-century, it has brought about a vast transformation in industry, in agriculture, in medicine, in transportation, and in communications. Military science has been revolutionized by technological development. The impact of science is increasingly felt in every field of public policy including foreign affairs. All this has been brought about through a combination of vision, initiative, business enterprise, a strong educational system, and the dedicated enthusiasm of the scientific community. The responsibilities of the Federal Government toward science have likewise changed greatly. In 1940, the Federal Government spent about one hundred million dollars in supporting research and development. The budget which I have just transmitted to the Congress calls for expenditures for these purposes in the next fiscal year of over two billion dollars. This is convincing evidence of the important role of science and technology in our national affairs. This rapid expansion of Federal responsibility requires prudent administration. More than half of all the investment in the Nation today for scientific research and development is being made by the Federal Government. In large measure, these Federal funds are paid to industry and educational institutions for the conduct of research and development projects. Thus our Federal policies and practices regarding research and development are felt immediately and substantially by industry and our educational institutions. 335

Page  336 (f 60o Public Papers of the Presidents More than ninety percent of this Federal support is presently going into applied research and development. This is the practical application of basic knowledge to a variety of products and devices. However, only a small fraction of the Federal funds is being used to stimulate and support the vital basic research which makes possible our practical scientific progress. I believe strongly that this Nation must extend its support of research in basic science. While the Executive Order which I have signed today calls upon the National Science Foundation to carry out important responsibilities in regard to scientific research, it is also designed to strengthen the conduct and support of vital research and development in the several agencies where science is important in achieving their assigned missions. This order will, for the first time, set in motion important steps leading to a thorough and continuing review of the status of the Federal Government's activities in science, and thus enable the Government, together with industry, higher education, and the scientific community to move forward with assurance toward the achievement of the Nation's goals. I expect and believe that this order will clarify the position of the Government toward the support and advancement of science in the Nation, and that it will contribute in a constructive sense to the development of our national policy in this important and critical area. NOTE: Executive Order 10521, "Admin- lished in title 3 of the Code of Federal istration of Scientific Research by Agen- Regulations, 1954 Supplement, p. 49. cies of the Federal Government," is pub6 I 4I Citation Accompanying Medal of Honor Presented to Ola L. Mize. March i 8, 1954 THE PRESIDENT of the United States of America, authorized by Act of Congress March 3, I863 has awarded in the name of The Congress the Medal of Honor to SERGEANT FIRST CLASS (THEN SERGEANT) OLA L. MIZE, USA for conspicuous gallantry and intrepidity at the risk of his life above and beyond the call of duty in action with the enemy: Sergeant Mize, Infantry, United States Army, a member of Company 336

Page  337 Dwight D. Eisenhower, I954 41 6i K, 5th Infantry Regiment, 3d Infantry Division, distinguished himself by conspicuous gallantry and outstanding courage above and beyond the call of duty in action against the enemy near Surang-ni, Korea, on I o-I June 1953. Company K was defending "Outpost Harry," a strategically valuable position, when the enemy launched a heavy attack. Learning that a wounded comrade lay helpless at a friendly listening post, Sergeant Mize with a medical aid man moved through intense enemy fire and rescued him. On returning to his position Sergeant Mize organized an effective defense and inflicted heavy casualties against the continuously and fiercely attacking enemy. During this period he was knocked down three times by the concussion of artillery and grenade blasts but each time he dauntlessly arose and resumed the violent combat. When enemy onslaughts ceased temporarily with the enemy in possession of friendly emplacements in the outpost area, he led his few remaining men from bunker to bunker, firing into the apertures, throwing grenades at the entrenched foe, and effectively neutralizing their positions. When an enemy soldier suddenly stepped from cover prepared to fire at one of Sergeant Mize's men, Sergeant Mize killed him saving the life of his fellow-soldier. After rejoining the platoon, he observed that a friendly machine gun had been overrun. Unhesitatingly, he fought his way to the position, single-handedly killing ten of the enemy and dispersing the remainder. Fighting his way back to his command post he took a position to protect several wounded soldiers. Later, securing a radio, he directed friendly artillery fire upon the attacking enemy's routes of approach and at dawn he helped regroup for a counterattack which drove the enemy from the outpost. Sergeant Mize's valorous conduct and unflinching courage reflect lasting glory upon himself and uphold the noble traditions of the military service. DWIGHT D. EISENHOWER NOTE: The President presented the medal at 11:30 a.m. on September 7, 1954, in to Sergeant Mize at Lowry Air Force Base the presence of relatives and friends. 337

Page  338 Public Papers of the Presidents 62 eI Statement by the President Upon Approving Recommendations for the Development of the Upper Colorado River Basin. March 20, I954 I HAVE TODAY approved recommendations for the development of the Upper Colorado River Basin. The general plan upon which these recommendations are based has been prepared by the Secretary of the Interior. The Secretary's recommendations have been reviewed by the Bureau of the Budget. Legislation embodying the Administration's recommendations is being prepared for introduction in the Congress. This is a comprehensive, well-planned development of a river basin. The close Federal-State cooperation upon which the Secretary's plan is based also carries out this Administration's approach to water resource development. The development will conserve water, enabling the region to increase supplies for municipal uses, industrial development, and irrigation. It will develop much-needed electric power. The development calls for sound financing. The legislation now being drafted will set up a fund for the entire project so that it will be constructed and paid for as a basin program. Construction of the Echo Park and Glen Canyon dams, two of the large projects in the basin plan, is recommended. These dams are key units strategically located to provide the necessary storage of water to make the plan work at its maximum efficiency. The legislation being drafted will authorize a number of projects which will put to use the waters of the Upper Colorado. This authorization will become effective following further consideration by the Secretary of the Interior, with the assistance of the Secretary of Agriculture, of the relation of these projects to the wise use and sound development of the basin. I am deferring my recommendation on the Shiprock unit of the Navajo project until the Secretary has completed his study. I hope the Congress will give early consideration to enactment of the Administration's legislative proposal. I firmly believe development of 338

Page  339 Dwight D. Eisenhower, 1954 q 63 the Upper Colorado River Basin, in accordance with its provisions, is in the national interest. NOTE: The recommendations approved papers, are printed in Senate Report by the President, together with related x983 (83d Cong., 2d sess.). 63 eI The President's News Conference of March 24, I954. THE PRESIDENT. I have nothing of my own this morning, and we will go right to questions. Q. Merriman Smith, United Press: Mr. President, the Republican leadership has said that Senator McCarthy should not participate in an investigation in which he is involved; yet the Senator insists on the right of cross-examination in an investigation of the dispute between his committee and the Army. What are your feelings, sir, in this matter? THE PRESIDENT. Well, I have no feelings at all about a particular situation or technicality of which I know nothing. I am perfectly ready to put myself on record flatly, as I have before, that in America, if a man is a party to a dispute, directly or indirectly, he does not sit in judgment on his own case, and I don't believe that any leadership can escape responsibility for carrying on that tradition and that practice. Q. Richard Harkness, NBC Radio: May we quote you on that? THE PRESIDENT. No. You have the regular-I don't mind. You can go and see Mr. Hagerty as usual on that particular point; but if every time I say something I am to be quoted, why, I will come over here with written answers. Q. Merriman Smith, United Press: Mr. President, can we have Mr. Romagna [official reporter] read back the last part of your reply-some of us missed it-without asking for a direct quotation? THE PRESIDENT. OK. Q. S. Douglass Cater, Jr., The Reporter Magazine: Mr. President, last year you urged passage of the Refugee Relief Act, but to date only a handful of people have been admitted under that. Do you have any knowledge as to whether the difficulty lies in the legislation, or the administration, or where it does lie? THE PRESIDENT. Well, I haven't any late and detailed report on it. 339

Page  340 q( 63 Public Papers of the Presidents What I do have is a statement that they have had great difficulty in trying to streamline procedures in accordance with the prescriptions of the act itself, as passed, and to get the thing rolling. It has been reported to me they are striving to do so. I would hope that this logjam loosens up very shortly. I will look it up again. Q. John Herling, Editors Syndicate: I believe in your press conference of February 17th, in reply to a question on the economic situation, you referred to March as being sort of the key month as to action by the Government in regard to rising unemployment, and if unemployment continued to rise at that time then action other than has been pursued would be called for. Now, unemployment has risen, sir, and I wonder whether there is an administration policy that has been projected at this time? THE PRESIDENT. I don't recall the exact words. I implied and indicated that March would normally be a rather significant month, that is, a month when normally, seasonally, there is an upturn. I don't believe I said that instantly there would be programs set, I said there would be a new examination of the problem and it would cause real concern. It is difficult to talk about this question without taking a little bit more time than just a "yes" or "no," ladies and gentlemen. Coming out of a war economy, going back into a peacetime economy, has traditionally caused, in every country, very, very marked fluctuations, sometimes marked by great inflation, lowered productivity, all that sort of thing. What has been the task that has really been going on for quite a while, but especially since last July, has been trying to make this transition, with a cutback on all kinds of war production, ammunition and everything else being used in Korea, in such a way as to cause the least damage. There has been, of course, a continuous rise in unemployment since that time. The figures for March are, of course, not all in, and they won't be in until sometime in early April. A contributing cause here, they tell me, although I am not so sure of the effect of this one, is that Easter being late, the ladies have not been buying as rapidly as they normally do this time of year and all kinds of qualifying conditions enter into this thing. The only thing that I am sure of, up to this moment-we study this every single day of our lives, there is a conference in my office on this subject every single day-there is nothing that has developed that would 340

Page  341 - Dwight D. Eisenhower, 1954 (l 63 call for a slambang emergency program being applied at this moment. That doesn't mean that we are not watching everything. Many things have been done. There is easier credit, there is cheaper money, there are things of that kind; there are housing and building programs before the Congress which should be helpful. There is every kind of thing constantly under consideration that we can think of that would be helpful. But we just don't believe this is the time to move on- an emergency basis; because if we do, we could easily distort the picture very badly. Q. Daniel S. Schorr, Columbia Broadcasting System: Mr. President, are you satisfied with the progress of your legislative program through Congress? THE PRESIDENT. I think there have been several times when we have discussed exactly what this word "satisfied" means. I truly believe that the rounded program sent to Congress represents a crying need in the United States. I believe it will insure its progress; I believe it will insure an upturn in the economy; I believe it will insure greater prosperity and happiness for all of us; distribution of inescapable burdens and a stronger America, which is, after all, the ultimate goal. Now, the longer we put that off, to my mind, the more we are failing to take advantage of our opportunities to do what we should. Q. William P. Flythe, Jr., Hearst Newspapers: Would you care to say anything, sir, about the conference at Geneva with reference to Indochina and Communist China? That is a large order. THE PRESIDENT. Of course, you are asking a question that we can take the rest of the time on. I would say only a very few things. One, I don't believe that it is necessary to argue the importance of all this great southeast Asian area and the southwest Pacific, its importance to the United States and to the free world. Indonesia, our friends in Burma and Siam and Malaya, the Philippines, all in that region, it is of the most transcendent importance. This fighting going on in Indochina, no matter how it started, has very manifestly become again one of the battlegrounds of people that want to live their own lives against this encroachment of Communist aggression; that is what it is. With respect to Communist China, at this moment, in the forthcoming conference, I haven't much to say. I have expressed certain of the rea 51986-60 25 341

Page  342 l 63 Public Papers of the Presidents sons why we took the attitude that we do toward Red China, and until those conditions have changed, there is no change in our attitude or our situation. Q. Pat Monroe, Salt Lake City Deseret News: Mr. President, on December 8, before the U.N., in your Operation Candid Speech, you said that the free people of the world must be armed with the significant facts, that is, atomic facts, of today's existence, and yet a lot of us have found what has been called the uranium curtain of secrecy at the Atomic Energy Commission closing ever tighter. My specific question concerns the possible resumption of press conferences there at the Atomic Energy Commission, if and when. THE PRESIDENT. Well, I will tell you, I wouldn't give you a positive answer that that is a good thing to do. I do believe this, that entering the atomic age, you people have legitimate questions-and all America and possibly the world-affecting this whole development. You have a right to ask them at places, specifically to me or the White House or other places, when information can be given without definitely jeopardizing the security of the United States. I shall try, after Admiral Strauss comes back from the Pacific, to review this whole question with him again and determine, if we can, what is the scope or the limits of the things of which I can talk. I promised this last week, not realizing, I guess, at that moment that he was a long ways from my side. I want to put off any further discussion until he comes back. Q. Mrs. May Craig, Maine Newspapers: Mr. President, in relation to that, my question to you last week was aimed at clarifying your position on the emphasis to be put on bombers based in the United States rather than depend on overseas bases which might or might not be available to us in war. THE PRESIDENT. Now, Mrs. Craig, you are talking about something that I won't talk about. I am not going to say what I consider, except I do consider myself a military man in that respect, and my lifetime was spent in it. I am not going to try to give an evaluation of the one kind of a base as against another at this moment. I don't think it would be wise at all. Q. Ethel Payne, Defender Publications: Mr. President, since you have said that you are in favor of using Federal authority, where it is proper to do so, in the program of ending racial discrimination, will you urge 342

Page  343 - Dwight D. Eisenhower, 1954 (1 63 the Congress to act favorably on S. 262, the bill to prohibit segregation in interstate travel? THE PRESIDENT. I will take a look. I haven't heard of the bill; I will take a look, because I am not sure. I would have to consult the Attorney General and see what he says about our authority there. Q. Joseph C. Harsch, Christian Science Monitor: Mr. President, would you give us a soldier's appreciation of the battle at Dien Bien Phu? THE PRESIDENT. Well, it is extremely difficult unless you are on the spot. I have talked to a number of people. Frankly, the odds that are just given in numbers, the comparative odds, the attacker against the defender-if you had a well-chosen defensive position, I would say the odds were all in favor of the defender. Now, I suppose most of you have looked at the map, and you know this position is in the valley astride a river; that it is not too long. With some 2 I battalions, I believe it is, they are trying to defend a position that is completely dominated by the observation that the attackers have on the two ridges, the ridges on the side of the river. So that makes it anything but pleasant. Some of you here were unquestionably at Anzio-that was after I left Italy, but I have gone back to that battleground-and there all the Allied Forces were in an almost impossible position. They were lying on the plain, and the enemy had all of the observation positions to place all the artillery where they wanted to, and it is a terrible thing on morale. So, I think one of the things, one of the intangibles, that you would have to be present to evaluate is what is the effect of this continuing situation where they are getting shot at all the time and don't believe they are shooting back effectually; what is that effect on morale? Now, there is no need to tell you people that followed battles in the war, morale is everything. So long as a unit thinks it can win, it can win; but, of course, many things go into making it up. I would say right now, as I see it, there is no reason for good troops to despair of coming out of the thing all right. Now, it is not an easy one. By the way, I asked one specific question you might be interested in. I find there is a colonel commanding the unit, and he was put there because apparently he is a very brilliant commander. I said, "Well, if 343

Page  344 (I 63 Public Papers of the Presidents I were the commander in the field, and I had a colonel commanding that thing, he would have been a general the day before yesterday." [Laughter] In any event, there is apparently a very brilliant, fine, young soldier commanding the place, and doing a gallant job, and they did promise to put my remark on his record after it came out. Q. Nat S. Finney, Buffalo Evening News: Mr. President, there has been a good deal of complaint about the statistics of unemployment, complaint about confusion in the two series. Do you have any plans to do anything about that? THE PRESIDENT. Well, they are doing something about it. They have a group that is checking every single new installment of statistics to try to figure out what these things mean, and are going to adopt the one that is the most accurate-I think that is the broader one. But to get adjustment between the two, it is going on right along. I think it is unfortunate that the thing happened to be put into effect when we did have a rise, and when we are also rightfully concerned with rising unemployment and, therefore, it puts an element of confusion in the thing that wouldn't normally be there. But they are working as hard as they can to get it straightened out and to produce the honest facts, that I assure you. No one is trying to be clever about this, but to get the straightforward facts. Q. Frank van der Linden, Nashville Banner: Mr. President, a week ago you had a conference here with Mr. Harry Carbaugh of Chattanooga, and he came out later and said you discussed the possibility of making him the Chairman of TVA. A statement came through Mr. Hagerty's office, said he could not serve the full time; and some of the Democrats in the Senate have said that that indicates maybe he won't get the job, that it is a face-saver, they say. I wonder if you have a comment on that? THE PRESIDENT. Face-saver? Q. Mr. van der Linden: Yes. They say that he was just being given a nice welcome treatment here, and that he will be brushed off-that is the Democrat view on it. THE PRESIDENT. I think that they flatly said that I had no decision to announce because I had reached none, and that is the absolute truth. Now, the other two items that you heard, so far as I know, are also the absolute truth. 344

Page  345 Dwight D. Eisenhower, I954 Q. Donald R. Larrabee, New Bedford Standard-Times: Mr. President, there has been criticism in some quarters of the fact that this administration has retained a I948 Presidential directive which denies loyalty and security data to congressional committees. I would like to ask you if you would care to comment on the charge that this has hampered the work of congressional committees, and should be revoked or revised? THE PRESIDENT. You start off with a statement of which I am not presently informed. There are certain types of files that will never be released by the executive departments. The FBI files are inviolate, and are going to remain so as long as I am here. Now, if there are other kinds of files-they tell me they do forward certain summaries and factual information, as long as it is fact; I don't know exactly how it is done-it is a question you might look up and provide the answer for, Mr. Hagerty. I don't know enough about it to talk about it further. Q. Paul Scott Rankine, Reuters-Australian Associated Press: Mr. President, there have been some expressions of concern overseas that your policy of instant retaliation against aggression, that it might not involve consultation between the United States and its allies, either in advance of or during the kind of emergency which you discussed with us last week. I wondered if you could clarify the situation? THE PRESIDENT. Well, I explained to you last week one type of emergency in which a commander in chief would have no recourse, and that was when you were directly under the kind of thing, in a glorified way, that happened at Pearl Harbor. But I believe that the Prime Minister answered one part of your question very accurately, yesterday, when he said we had all the arrangements for instant consultation that could possibly be made and, particularly, with respect to any use of the bases there. With other of our friends in the North Atlantic Alliance, particularly those we work very close with-Canada, for example-we are always in consultation. Q. Charles J. Greene, Jr., New York Daily News: Returning, sir, to your first question about a man sitting in judgment upon himself, McCarthy is insisting as late as yesterday afternoon, that he no longer wishes to sit in judgment, that he has withdrawn from any voting on 345

Page  346 ,9 63 Public Papers of the Presidents the committee, that all he wants and must have is the right to crossexamine the witnesses. Will you comment on that? THE PRESIDENT. No. Many times, I told you, I don't know enough about the specific case to comment, even if I should. There are certain things that the leadership and the people down there cannot escape responsibility for, and I am not going to try to prejudice the case by commenting on details of which I know nothing. I state my principle on which I stand. Q. Marvin Arrowsmith, Associated Press: We have been asked whether you care to comment on the Senate rejection yesterday of the resolution to unseat Senator Chavez. It was turned down, as you probably saw. THE PRESIDENT. I have no comment whatsoever. I would say again you are talking about something that certainly is strictly the Senate's business. Q. Sarah McClendon, Galveston News-Tribune: Sir, you have been asked, I believe, to keep the Texas City tin smelter open. That request was made by Senator Johnson and Congressman Thompson; and in view of the situation in Indochina, I wonder if you have made up your mind to reverse the budget and keep it open? THE PRESIDENT. No, I haven't made up my mind about it. As a matter of fact, the question has been reopened for study, but I have not made up my mind to keep it open. Q. George E. Herman, CBS Radio: Mr. Hagerty told us yesterday that you would not be commenting on the atomic energy test, but I wanted to ask you a question on the fringe, if you, have no objection. Some anti-American newspapers in Japan and other countries in the Far East, have been seizing upon these cases of radioactive poisoning to make some very strong anti-American propaganda. I wonder if you would care to give us some statement of policy of the Government of its responsibility towards the rest of the world in these tests? THE PRESIDENT. It is quite clear that this time something must have happened that we have never experienced before, and must have surprised and astonished the scientists. Very properly, the United States has to take precautions that never occurred to them before. Now, in the meantime, I know nothing about the details of this case. It is one of the things that Admiral Strauss is looking up, but it has been 346

Page  347 Dwight D. Eisenhower, 1954 q 63 reported to me that the reports were far more serious than the actual results justified. Q. Robert G. Spivack, New York Post: Mr. President, there have been stories in papers around the country by various Republican leaders expressing the hope that you will actively take part in the 1954 congressional campaign, and that you will be visiting their communities or making a speaking tour. Have you any thoughts on that? THE PRESIDENT. I have expressed my thoughts before this body time and again, and I am sure that there is no one here that is really mistaken about what I mean and what I have said. If there is, you can bring the question up next week. Q. Alan S. Emory, Watertown Daily Times: Mr. President, this week the House Rules Committee, after beginning action on the St. Lawrence Seaway project, decided to postpone until April first additional hearings and, possibly, a vote. This action was taken with the presence before the committee of both the leading proponents and opponents of the project from the House Public Works Committee, and the postponement has resulted in some charges of stalling even by your own backers who consider this a major part of the administration program. I wonder, sir, if you intend to ask the House leadership to expedite action on the Seaway? THE PRESIDENT. So far as I know, they have got it scheduled for its place in their program, and I am not going to ask them to upset a whole program of work. Frankly, I think the House has been doing an awfully good job. No one has asked me about it, but if you would like to ask my opinion about the tax fight the other day, why, I would say I think they did a magnificent job. They did it for the good of the country and, I would say, with a minimum of concern for their own particular welfare or ambitions. They did it because they thought it was a fine program. Of course, we had some few, thank goodness, Democrats who felt the same way about it; but I think the House has been doing a fine job. I can certainly ask when they expect this to come out, but I have the minimum of criticism for the group. Q. David Sentner, Hearst Newspapers: Mr. President, in your promise to review the atomic weapons public relations problem, will that include the possibility of having members of the press invited to any future hydrogen bomb test? 347

Page  348 q 63 Public Papers of the Presidents THE PRESIDENT. Well, I will ask. I hadn't thought of it. I think rather than comment on it right now, I will take it up, I will say that. So the discussions will include that. Q. Carroll H. Kenworthy, United Press: Mr. President, when you were talking about the French Colonel at Dien Bien Phu a few minutes ago, did you say you recommended that to the French General who saw you the other day? THE PRESIDENT. Well, I said I recommended it; I don't know whether I recommended it toQ. Mr. Kenworthy: You spoke to the French General? THE PRESIDENT. I said I thought it would be a good thing to do. Q. Mr. Kenworthy: And you told it to the Frenchman? THE PRESIDENT. I told it to a Frenchman who promised it would be put on his record. Q. Ray L. Scherer, NBC Radio: General MacArthur said the other day you called him down here to get his views on certain subjects. Could you tell us any more about that visit with the General? THE PRESIDENT. Well, I didn't see General MacArthur's statement afterward, but he and I have been very closely associated since 1930, and I have never found any talk with him profitless. We talked about the general conditions in the Far East, where he spent so many years of his life. We talked over general situations, implications of various things that we saw in our reports, and it was not intended to reach definitive conclusions or plans or anything else. It was merely an exchange of views from an old friend; that is what it was. Q. Lloyd Schwartz, Fairchild Publications: Mr. President, a Supreme Court decision recently appears to have knocked out about sixteen of these State right-to-work laws which provide for use of injunction against picketing and boycotts and the like. I wanted to ask, have you definitely abandoned any plan to send up a message on this to Congress to correct this? THE PRESIDENT. There has been no definite decision on it. As a matter of fact, I didn't know about the Supreme Court decision you are speaking of this morning. Q. Robert J. Donovan, New York Herald Tribune: Sir, your compliment to the House naturally begs the question on a certain other branch on Capitol Hill. [Laughter] 348

Page  349 Dwight D. Eisenhower, 1954 THE PRESIDENT. Then I am glad you brought it up; I would like to make it clear. After all, all of us know that the rules of the Senate differ from those of the House; possibly because the House is such a large body, they have to have firmer disciplinary control. But in any event, let us remember this also, that all revenue bills have to start in the House. There the extensive hearings are held, which often helps to shortcut the work in the other House. I was asked a question about the House Rules Committee, I wasn't asked about the Senate. Now, they have to have a little more time, as we all know. Q. Joseph Chiang, Chinese News Service: Mr. President, Generalissimo Chiang Kai-shek once again was elected by the people, the free people, of China as President of the Republic of China. Do you have any comment to that, sir? THE PRESIDENT. Well, I don't think I have any comments. As you know, I know the Generalissimo, and I like him. When I go there, or when I have been out in that region, I like to see him; but I don't know anything at all about what I should say or what comment you would expect from me now. I really don't. Merriman Smith, United Press: Thank you, Mr. President. NOTE: President Eisenhower's thirty- IO:58 o'clock on Wednesday morning, second news conference was held in the March 24, 1954. In attendance: 2i2. Executive Office Building from 10:31 to 64 eI Statement by the President Upon Signing Bill To Amend the Natural Gas Act. March 27, I 954 I HAVE TODAY approved H.R. 5976, a bill "To amend section i of the Natural Gas Act." This measure preserves the authority of the Federal Power Commission to regulate the rates which may be charged for natural gas moving in interstate commerce up to the time it reaches the State in which it will be wholly consumed. At the same time the bill makes it possible to remove from Federal regulation persons and facilities receiving gas within or at the boundary of a State if all of the natural gas so received 51986-60 26 349

Page  350 Al 64 Public Papers of the Presidents is to be used within that State. The bill contains a Congressional declaration that these matters are primarily of local concern and subject to regulation by the several States. The removal is operative only if the States exercise and enforce jurisdiction over rates and services. I have approved this bill because of my conviction that the interests of the individual citizen will be better protected when they remain under State and local control than when they are regulated or controlled by the Federal Government. I shall support State regulation of functions and matters which are primarily of local concern whenever possible and when not contrary to the national interest. The State regulation provided in H.R. 5976 presents a new challenge to the State governments and their regulatory commissions. This measure places the responsibility for protection of consumer interests for intra-state matters squarely where it belongs-in the hands of the people of the States and their duly elected or appointed officials. I believe effective and competent discharge of that responsibility will result. If experience should demonstrate that the Act creates a larger area of regulation by the States than they will be able to handle effectively in the public interest, I shall promptly recommend that the Congress take whatever remedial action appears to be necessary. NOTE: As enacted, H.R. 5976 is Public Law 323, 83d Congress (68 Stat. 36). 65 eJ Letter Accepting Resignation of Joseph M. Dodge as Director of the Bureau of the Budget. March 27, I 954 [ Released March 27, 1954. Dated March 2, I954] Dear Joe: I must, of course, respect your wish to leave governmental service after so many years devoted to it. I cannot in conscience ask you to reconsider in view of the reasons you give for your decision. But I assure you that it is only with the greatest reluctance that I accept your resignation as Director of the Bureau of the Budget. Your services during these past fourteen months in office have been invaluable to the country. Your competence and knowledge in an ex 350

Page  351 -— _ _ _ __~____~IL1_II___ Dwight D. Eisenhower, 1954 q 66 ceedingly difficult field have immeasurably helped solve the gigantic fiscal and management problems that have faced this Administration. On the more personal side, I shall sorely miss your advice, counsel and your friendly helpfulness. In fact, I have every intention of imposing upon you from time to time to give me your thoughts and opinions on some of the knotty questions that will continue to arise. In thinking back over the governmental positions you have been called to fill since the beginning of World War II, I am struck by the fact that not only has each been an important one but most of the assignments have been almost on an emergency basis. In each your reputation for efficiency and dedication to the public good has continued to grow. As a consequence, you will leave behind you in the government service a host of admiring friends; I know that each of them would join me now in wishing for you the greatest of happiness and success in the years to come. With warm personal regard, As ever, DWIGHT D. EISENHOWER NOTE: In his letter of resignation Mr. after the 1955 budget was presented to the Dodge referred to his work in revising the Congress. His letter was released with original 1954 budget and to his intention, the President's reply. known to the President, of resigning soon 66 eJ Statement by the President on the Ratification by Germany of Treaties Relating to the Proposed European Defense Community. March 29, I954 PRESIDENT HEUSS of the Federal Republic of Germany has signed the treaty establishing the European Defense Community and the Convention on Relations with the Federal Republic, thus completing final ratification of these treaties by the Federal Republic. I am gratified that one more country has now completed all phases of ratification of these treaties which are designed to assure a stronger European community and thereby contribute to the establishment of lasting peace. 351

Page  352 q 67 Public Papers of the Presidents 67 eI Special Message to the Congress on Foreign Economic Policy. March 30, 1954 To the Congress of the United States: I submit herewith for the consideration of the Congress recommendations concerning the foreign economic policy of the United States. Due to the urgency and significance of our problems in this area, I previously recommended, and the Congress approved, the establishment of the Commission on Foreign Economic Policy. Its membership, consisting of seventeen elected officials and private citizens, was drawn from all parts of the country and represented diverse points of view. The Commission's report, prepared in the American tradition of full debate and vigorous dissent, has been carefully reviewed by the various Executive Departments of the Government and forms the basis for the program I submit in this message. Before the Commission began its deliberations I said to its members, "I commend to you an attitude both realistic and bold. Above all, I urge you to follow one guiding principle: What is best in the national interest." The national interest in the field of foreign economic policy is clear. It is to obtain, in a manner that is consistent with our national security and profitable and equitable for all, the highest possible level of trade and the most efficient use of capital and resources. That this would also strengthen our military allies adds urgency. Their strength is of critical importance to the security of our country. Great mutual advantages to buyer and seller, to producer and consumer, to investor and to the community where investment is made, accrue from high levels of trade and investment. They accrue no less in trade from nation to nation than in trade from community to community within a single country. The internal strength of the American economy has evolved from such a system of mutual advantage. In the press of other problems and in the haste to meet emergencies, this nation-and many other nations of the free world-have all too often lost sight of this central fact. World-wide depression and wars, inflation and resultant economic dislocations, have left a sorry heritage: a patchwork of temporary expedients and a host of restrictions, rigidities, interferences and barriers which seriously inhibit the expansion of interna352

Page  353 Dwight D. Eisenhower, 1954 e 67 tional trade. Thus are impeded the very forces which make for increased production, employment and incomes. The tasks of repairing the physical damage caused by the catastrophe of war have been substantially achieved. The creation of an adequate system of defense for the free world is well advanced. Most of the countries which suffered the ravages of war have made remarkable headway towards financial stability and increased production. Their own efforts have been greatly aided by our assistance, and yet, despite this recovery, we and other free nations are still severely limited by the persistence of uneconomic, man-made barriers to mutual trade and the flow of funds among us. Together we and our friends abroad must work at the task of lowering the unjustifiable barriers-not all at once but gradually and with full regard for our own interests. In this effort, the United States must take the initiative and, in doing so, make clear to the rest of the world that we expect them to follow our lead. Many foreign restrictions have been imposed as a consequence of the so-called "dollar gap." This phrase has become the symbol of the failure of the free world to find a lasting solution to the imbalance of international payments. We should no longer fill it by major grants to enable other nations to secure what they need but cannot buy. Our aim must not be to fill the dollar gap, but rather to help close it. Our best interest dictates that the dollar gap be closed by raising the level of trade and investment. The United States stands ready and able to produce and sell more than the rest of the world can buy from us. The inability of many foreign countries to buy our goods in the volume we would like to sell does not arise from any lack of desire for these goods. Such is far from the case. Instead it arises out of an inability of these nations to pay-in dollarsfor the volume we have to sell. Dollar grants are no lasting solution to this impasse. The solution is a higher level of two-way trade. Thus we can sell and receive payment for our exports and have an increasing volume of investment abroad to assist economic development overseas and yield returns to us. Greater freedom from restrictions and controls and the increased efficiencies which arise from expanding markets and the freer play of economic forces are essential to the attainment of this higher trade level. 353

Page  354 q 67 Public Papers of the Presidents Failure so to move will directly threaten our domestic economy, for it will doom our efforts to find ways by which others, through their own efforts, can buy our goods. The only practicable alternative is to reduce exports. Our farms would have to sell less, since the products of 40 million acres, amounting to I0 to 12 percent of our agriculture, would have to find their market outside our own country. Moreover, if their export markets were curtailed, American factories now selling their products throughout the world would have to reduce employment. It is a very important fact that over 4 million American workers depend on international trade for their employment. Beyond our economic interest, the solidarity of the free world and the capacity of the free world to deal with those who would destroy it are threatened by continued unbalanced trade relationships-the inability of nations to sell as much as they desire to buy. By moving boldly to correct the present imbalance, we shall support and increase the level of our exports of both manufactured and agricultural products. We shall, at the same time, increase the economic strength of our allies. Thus shall we enhance our own military security by strengthening our friends abroad. Thus shall we assure those sources of imports that supplement our domestic production and are vital to our defense. Thus shall we raise our standard of living and aid in the development of a better world for all of us and our children. TARIFFS I am convinced that the gradual and selective revision of our tariffs, through the tested method of negotiation with other nations, is an essential ingredient of the continuing growth of our domestic economy. An expression of our willingness to negotiate further will offer needed leadership towards the reduction of trade and payments barriers that limit markets for our goods throughout the world. The Commission on Foreign Economic Policy recommended a threeyear extension of the Trade Agreements Act with amendments to authorize: a. Reduction, pursuant to trade agreement negotiation, of existing tariff rates on commodities selected for such negotiations by not more than 5 percent of present rates in each of the three years of the new act; b. Reduction, by not more than one-half over a three-year period, of 354

Page  355 Dwight D. Eisenhower, 1954 q 67 tariffs in effect on January i, I945, on products which are not being imported or which are being imported only in negligible volume; and c. Reduction, over a three-year period, pursuant to trade agreement negotiation, to 50 percent ad valorem, or its equivalent, of any rate in excess of 50 percent ad valorem, or its equivalent. I have approved these recommendations of the Commission and urge their adoption by the Congress. I may also recommend special provisions for negotiation with Japan in view of the economic problems of that country. The foregoing authority does not contemplate across-the-board tariff reductions. The peril point and escape clause procedures would, of course, be preserved, and the three proposed types of rate reduction would not be cumulative. Tariff reductions would be made selectively on specific commodities, and only after notice and hearings in accordance with past practice. This would represent our part in the gradual and careful approach to the whole problem of improved trade which the world so urgently needs. No sudden, sharp, or widespread adjustments within our economy would be involved. These escape clause and peril point provisions of our tariff legislation are designed to mitigate injury to our domestic producers from tariff reductions. Whenever recourse is had to these provisions, I shall carefully consider the findings and recommendations of the Tariff Commission. My responsibilities for the welfare of the nation require that I continue to base my decisions at times on broader grounds than the Tariff Commission is empowered to consider. The Commission on Foreign Economic Policy supports this position. I have approved the Commission's recommendations that the United States withhold reductions in tariffs on products made by workers receiving wages which are substandard in the exporting country. This policy shall be placed in effect. I have also approved the Commission's recommendations concerning raising of labor standards through consultative procedures and cooperation in international conferences such as those sponsored by the International Labor Organization. These recommendations for renewal and amendment of the Trade Agreements Act are based on the plain truth that if we wish to sell abroad we must buy abroad. 355

Page  356 q 67 Public Papers of the Presidents THE GENERAL AGREEMENT ON TARIFFS AND TRADE Since 1948, virtually all the major trading nations of the world, including the United States, have become parties to a General Agreement on Tariffs and Trade. This Agreement has been the principal arrangement by which we in the United States have sought to carry out the provisions and purposes of the Trade Agreements Act. The Commission on Foreign Economic Policy has recommended that the United States renegotiate the organizational provisions of the Agreement, so that the contracting parties acting collectively would confine their functions to sponsoring multilateral trade negotiations, recommending broad trade policies for individual consideration by the legislative or other appropriate authorities in the various countries, and providing a forum for consultation regarding trade disputes. I shall act promptly upon this recommendation. At the same time, I shall suggest to other contracting parties revisions of the substantive provisions of the Agreement to provide a simpler, stronger instrument contributing more effectively to the development of a workable system of world trade. When the organizational provisions of the Agreement have been renegotiated, they will be submitted to the Congress for its approval. CUSTOMS ADMINISTRATION AND PROCEDURE The problems of tariff classification, of proper valuation of imported articles and of procedures for administering the customs are complex and perplexing. Over the years these problems have grown to the point where they now constitute an unwarranted and unintended burden on trade. The United States may be no worse in this regard than many other nations, but good business practice alone is sufficient to require: a. Simplification of commodity definitions, classifications and rate structure; b. Improvement in the methods of valuation of imports; and c. Establishment of more efficient procedures for customs administration. To this end I shall propose legislation providing for the simplification of the commodity definitions and rate structures in the Tariff Act, after a study by the Tariff Commission, and subject to appropriate standards to be established by the Congress. Such legislation should also provide 356

Page  357 Dwight D. Eisenhower, I954 for a better method of classification of articles not enumerated in the tariff schedules, and for such improvement in the statutes governing the administration of customs procedures as can be made at this time. In this connection I am directing the Department of the Treasury to keep customs procedures under continuous review and to report to the Congress annually on the difficulties and delays in processing goods through Customs, together with recommendations for action to eliminate such obstructions. I further recommend that the anti-dumping law and procedures under it be changed so far as necessary to permit speedier and more efficient disposal of cases and to prevent undue interference with trade during investigation of suspected dumping. To provide an improved basis for customs valuations I urge adoption of the Treasury's valuation proposals. These are embodied in H.R. 6584 which has already been passed by the House of Representatives. U.S. INVESTMENT ABROAD An increased flow of United States investment abroad could contribute significantly to the needed expansion of international trade. It also could help maintain a high level of economic activity and employment in the United States. Further, such investment contributes to the development abroad of primary resources needed to meet our own everincreasing needs even while it helps to strengthen the economies of foreign countries. In view of the great importance of private investment to our foreign economic policy, I emphasize the necessity for passage of the Administration tax bill already recommended to you and already advanced in your considerations which provides for: a. Taxation of business income from foreign subsidiaries or from segregated foreign branches which operate and elect to be taxed as subsidiaries at a rate 14 percentage points lower than the regular corporate rate; b. Broadening the definition of foreign taxes which may be credited against the United States income tax to include any tax, which is the principal form of taxation on business in a country, except turnover, general sales taxes or excise, and social security taxes; c. Removing of the overall limitation on foreign tax credits; and d. Permitting regulated investment companies concentrating on foreign investment to pass on to their stockholders the credit for foreign taxes which would be available on direct investment. 357

Page  358 (I 67 Public Papers of the Presidents Further to encourage the flow of private investment abroad, we shall give full diplomatic support, through our activities here and through our missions and representatives in the field, to the acceptance and understanding by other nations of the prerequisites for the attraction of private foreign investment. We shall continue to use the treaty approach to establish common rules for the fair treatment of foreign investment. In connection with legislation authorizing the Mutual Security Program I suggest that the Congress consider the desirability of broadening the existing authority to guarantee against losses on new investment abroad, so as to cover losses caused by war, revolution and insurrection. The Commission has pointed out that uncertainty as to the application of United States antitrust laws to the operations of American firms abroad is a deterrent to foreign investment. It recommended that our antitrust laws be restated in a manner which would clearly acknowledge the right of each country to regulate trade within its own borders. At the same time, the Commission insisted that it should be made clear that foreign laws or established business practices which encourage restrictive price, production or marketing arrangements will limit the willingness of United States businessmen to invest abroad and will reduce the benefits of such investment to the economies of the host countries. I have requested the Department of Justice to consider this recommendation in connection with its current study of the antitrust laws. BUY AMERICAN LEGISLATION At present certain of our laws require that, in specified Federal or Federally-financed procurement, preference be given to domestic firms over foreign bidders. Except where considerations of national security, persistent and substantial unemployment, or encouragement of small business require otherwise, I agree with the Commission that it is improper policy, unbusinesslike procedure and unfair to the taxpayer for the Government to pay a premium on its purchases. I request, therefore, that legislative authority be provided to exempt from the provisions of this legislation the bidders from nations that treat our bidders on an equal basis with their own nationals. Meanwhile, the Executive Branch is clarifying the application of these preference principles to government procurement. It will limit the price differential favoring domestic producers over foreign bidders to a reasonable percent dependent upon the circumstances over and above whatever tariffs may 358

Page  359 Dwight D. Eisenhower, I954q6 q 67 apply. Discretionary authority, however, must be continued to, permit special consideration in government procurement for the requirements of national security, for the problems of small business and of areas where persistent and substantial unemployment exists. RAW MATERIALS This country is blessed with abundant mineral resources, but we, must make the most of them if we are to satisfy the ever-increasing appetite of an expanding economy and at the same time maintain an adequate defense posture. We must recognize, however, that it is not possible for this nation, or any other nation, to produce enough of every metal and mineral needed by modern industry. These materials are not evenly distributed throughout the world. We have to depend on one another. Our foreign economic policies, therefore, must encourage the relatively easy flow of these materials in international trade. The Commission has made two sets of recommendations which I believe will materially assist in achieving an orderly expansion of mineral production both here and abroad. The first is that the United States Government should make a constructive contribution toward greater stability of world prices of raw materials by moderating or relaxing impediments to international trade, by encouraging diversification of foreign economies, by avoiding procurement practices which disturb world prices, by consultation with other nations, and by tempering the fluctuations in our own economy. The second calls for increased encouragement of investment in overseas production by our citizens and the nationals of other countries. I heartily endorse these recommendations. The Commission also, recommended that domestic sources for raw materials required for military purposes should be assured by direct means and not by tariffs and import quotas. I believe that normally this is sound. However, I have appointed a special Cabinet committee which is now surveying the whole field of our minerals policy and have drawn their attention to these recommendations. AGRICULTURE Perhaps no sector of our economy has a greater stake in foreign trade than American agriculture. In recent years, for example, one-third of 359

Page  360 q 67 Public Papers of the Presidents our wheat, forty percent of our cotton and rice, and one-fourth of our tobacco and soybeans have been exported. It is highly important to maintain foreign markets for our agricultural products. Any program designed to serve the interests of American agriculture must take due account of the necessity for export markets. Put in the words of the Commission, "It is necessary to harmonize our agricultural and foreign economic policies without sacrificing the sound objectives of either." I am convinced such reconciliation is possible. Acceptance of the recommendations in my Agricultural Message of January I I will, I feel certain, help accomplish this objective. MERCHANT MARINE With respect to our ocean shipping, we must have a merchant marine adequate to our defense requirements. I subscribe to the principle that such support of our merchant fleet as is required for that purpose should be provided by direct means to the greatest possible extent. Such a policy, however, requires a careful analysis of the means available for providing direct support, its possible effects on foreign flag vessel carryings, and its total costs before a specific program can be recommended. The Department of Commerce has already studied this problem at length. Its findings will be further reviewed within the Executive Branch in order to develop specific recommendations to transmit to the next session of the Congress, in addition to the proposals submitted by the Executive Branch that are now before the Congress. INTERNATIONAL TRAVEL International travel has cultural and social importance in the free world. It also has economic significance. Foreign travel by Americans is a substantial source of dollars for many countries, enabling them to pay for what we sell them. While the promotion of tourism is primarily a responsibility of the countries which welcome visitors, and is a function for private enterprise, there are some specific governmental actions which can be helpful. For example, there is H.R. 8352 which increases the duty-free allowance for tourists from $500 to $Iooo, exercisable every six months. I recommend its passage. From time to time I may have other recommendations for legislative action to stimulate travel. Meanwhile, in the Executive Branch, I shall instruct the appropriate 360

Page  361 __ Dwight D. Eisenhower, 1954 q 67 agencies and departments, at home and abroad, to consider how they can facilitate international travel. They will be asked to take action to simplify governmental procedures relating to customs, visas, passports, exchange or monetary restrictions and other regulations that sometimes harass the traveler. ECONOMIC AID AND TECHNICAL ASSISTANCE Assistance extended in the past by the United States to other free nations has played an effective part in strengthening the national security, developing important resources, and opening up significant opportunities, for ourselves and for others. It has also carried with it, in many instances, particularly in technical cooperation and famine relief, a deep humanitarian response by our people. However, economic aid cannot be continued indefinitely. We must distinguish between an emergency and a chronic malady, between a special case and a general rule. I subscribe, therefore, to the principle that economic aid on a grant basis should be terminated as soon as possible consistent with our national interest. In cases where support is needed to establish and equip military forces of other governments in the interest of our mutual defense, and where this is beyond the economic capacity of another country, our aid should be in the form of grants. As recognized by the Commission, there may be some cases in which modest amounts of grant aid to underdeveloped countries will importantly serve the interest of security. I further agree that in other situations where the interest of the United States requires that dollars not otherwise available to a country should be provided, such support to the maximum extent appropriate should be in the form of loans rather than grants. In extending such loans, we must be careful not to interfere with the normal lending activities and standards of the Export-Import Bank. The International Bank is the primary institution for the public financing of economic development. The Export-Import Bank will consider on their merits applications for the financing of development projects, which are not being made by the International Bank, and which are in the special interest of the United States, are economically sound, are within the capacity of the prospective borrower to repay and within the prudent loaning capacity of the Bank. I approve the recommendations of the Commission on Foreign Economic Policy that the United States participation in technical cooperation 36i

Page  362 q( 67 Public Papers of the Presidents programs should be pressed forward vigorously. Such programs should concentrate on providing experts and know-how rather than large funds or shipments of goods except for necessary demonstration equipment. They should not provide capital for investment but should be so administered as to fit into the programs of development of the assisted countries and they should be related to any private or public investment likely to be forthcoming. Review of the requirements for the Mutual Security Program has been conducted with these principles in mind and substantial reductions in grant aid have been made by this Administration. The legislation which I shall later propose for the Mutual Security Program will reflect these principles. EAST-WEST TRADE In viewing the problems of other nations of the free world, we are forced to recognize that the economies of some of them have been weakened by the disruption of the broad historic pattern of trade between East and West. Curtailment of our aid programs will increase the pressures for resumption of such trade. A greater exchange of peaceful goods between East and West-that is, goods not covered by the Battle Act nor otherwise considered strategic-so far as it can be achieved without jeopardizing national security, and subject to our embargo on Communist China and North Korea, should not cause us undue concern. I shall, of course, take appropriate action to ensure that our security is fully safeguarded. CONVERTIBILITY The Commission rightly regards positive progress toward currency convertibility as an indispensable condition for a freer and healthier international trade. Steps toward enabling holders of foreign currencies to convert them freely into other currencies deserve our encouragement. The Commission has correctly observed that the initiative and responsibility for introducing currency convertibility must rest with the countries concerned. I am happy to say that such initiative is being taken. The British and other members of the Commonwealth of Nations have met twice, in London and in Sydney, to consider plans for convertibility of the pound sterling. The United Kingdom and other important nations of Europe have discussed their aims with us. Individually they are taking constructive steps affecting their own currencies. In addition, discus362

Page  363 Dwight D. Eisenhower, 1954 sions among them which are now under way in connection with the renewal of the European Payments Union are being largely influenced by their desire to prepare the way for convertibility. I have approved the Commission's recommendations for cooperation in strengthening the gold and dollar reserves of countries which have prepared themselves for convertibility by sound internal and external policies. These recommendations do not call for new action by the Congress. Authority and procedures for this purpose already exist. The United States will support the use of the resources of the International Monetary Fund as a bulwark to strengthen the currencies of countries which undertake convertibility. In addition, a study is now being made, as suggested by the Commission, of the possibility of standby credits from the Federal Reserve System. CONCLUSION What I have outlined to you is a minimum program which should be judged as a whole. Its various parts are interrelated; each requires the other. Conceived as a whole, this program consists of four major parts: Aid-which we wish to curtail Investment-which we wish to encourage Convertibility-which we wish to facilitate and Trade-which we wish to expand I consider it essential that we achieve each of these objectives, which we must clearly understand are closely interlocked: As we curtail our aid, we must help to close the dollar gap by expanding our foreign investment and trade. This expansion will be facilitated by a return to convertibility of foreign currencies. The return by our friends abroad to convertibility will be encouraged if our trade policy leads them to expect expansion of our foreign trade and investment. Unless we are prepared to adopt the policies I have recommended to expand export and import trade and increase the flow of our capital into foreign investment, our friends abroad may be discouraged in their effort to re-establish a free market for their currencies. If we fail in our trade policy, we may fail in all. Our domestic employment, our standard of living, our security, and the solidarity of the free world-all are involved. For our own economic growth we must have continuously expanding 363

Page  364 e 67 Public Papers of the Presidents world markets; for our security we require that our allies become economically strong. Expanding trade is the only adequate solution for these two pressing problems confronting our country. DWIGHT D. EISENHOWER NOTE: The report of the Commission on uary 1954). See also note to Item i6, Foreign Economic Policy was published above. by the Government Printing Office (Jan68 eI The President's News Conference of March 3 I, 1954. THE PRESIDENT. As you can suspect, ladies and gentlemen, from the picture-taking this morning, we are trying a little bit of an innovation. There has been some slight interest shown in the tests recently conducted in the Pacific, and for this reason, I brought along with me this morning the expert in that field. After I take a certain share of the press conference time, I am going to turn the rest of it over to him. Of course, this will also give me a unique privilege of seeing someone else in this particular spot! 1 One of the things that I should like to take a moment to talk about is the excise taxes. The excise taxes, of course, have reduced revenues a very considerable amount more than I recommended. Nevertheless, from the beginning it was acknowledged that here was a field that was open to discussion. There is one school of thought that believes that cutting of excise taxes can have such a great effect in stimulating of business that the revenues will not be hurt as much as we estimate. In any event, the bill, continuing certain needed excise taxes on beyond April ist-that is tomorrow-is going to be signed. I will sign it today. I accept it wholeheartedly, and we are certainly hopeful that any damaging results will not be as great as might be. I should like to call attention to this one fact: on figures furnished to me by the Treasury, this will be the greatest single tax reduction in dollars ever accomplished by the American Government, $7,400,oooooo reduced 1 The President referred to the Chairman of the Atomic Energy Commission, Lewis L. Strauss. See note at end of this news conference. 364

Page  365 Dwight D. Eisenhower, I954 At 68 in one year in taxes. This includes, of course, the reduction in income taxes of January ist, the abolition of the excess profits tax, and this excise tax. That will be a huge amount of money in the hands of private citizens to spend themselves; and, certainly, we have every reason to believe that it will be a stimulating factor in our economy. Another point to discuss just briefly is housing. There has been a lot of different kinds of thinking on public housing. I think most of you are aware of the general provisions of the plan that I submitted to the Congress some couple of months ago, and I am informed that Mr. Wolcott's committee is bringing out that program largely in the same form as presented to him. Now, in the public housing factor, there has been a very considerable struggle, but I am delighted that yesterday the leadership succeeded in getting the necessary appropriations so that approximately 35,000 public housing units can be constructed this year. And the authorization will certainly be accorded to go for a like amount or something of that order next year, in the authorization committee. The other item that I wanted to mention was the Randall report, and my message to Congress on foreign trade. I think the report and the message largely speak for themselves, but I do want to make this one observation: in making this kind of an adjustment, in trying to move from an era in which our friends abroad had to depend so, markedly on direct aid into an era where expanded trade will be of benefit to all of us, certain difficulties, even certain hardships can occur not only in our country but in others. The Government is alert to that situation, will constantly be vigilant to see that any damage of that kind does not become one that is unjustified as you think of the welfare of the i6o million people, and will take such steps as are necessary to prevent them from becoming either widespread or severe. But that there will be some adjustments of that kind is, of course, inevitable. I do believe that in this day and time, the free world must come more and more to realize that in an expanding, healthy, two-way trade lies our best insurance that the doctrines of statism cannot come in and overcome our whole idea of free government. Within our own country we don't feel that danger so intimately; the danger, in other words, is not in position, let us say, of breathing down our necks. But in some of the others it is, and we have got to take all of those things into consideration 365

Page  366 f 68 Public Papers of the Presidents as we stand firmly for a principle which, in the long run, is for the good of all of us. It is going to take very great firmness because, as I say, there are bound to be some maladjustments and difficulties. Now, that was my speech for the morning, ladies and gentlemen; and the rest of my time that I have allocated to myself, we will take up with questions. Q. Merriman Smith, United Press: I wonder if you could explore for us, sir, or amplify on Secretary Dulles' speech the other night in which he spoke of our readiness to take united action in the Far East. THE PRESIDENT. Well, of course, the speech must stand by itself. I should say that I was over every word of it beforehand; Secretary Dulles and I, as usual, find ourselves in complete agreement. I have forgotten the exact words that he used in respect to the question you raised, but he did point out that it is in united action of all nations and peoples and countries affected in that region that we can successfully oppose the encroachment of communism, and should be prepared to meet any kind of attack that would come in there. He pointed out the great value of the region to all the free world and what its loss would mean to us. So, I think, aside from just the assertion that we are seeking that kind of united action among all our friends, that the speech otherwise must stand by itself. Q. Martin Agronsky, American Broadcasting Company: Mr. President, I wondered if I could ask one more specific question along those lines. The united action has been interpreted generally as indicating, perhaps, intervention, direct intervention or direct use, more accurately, of American troops. Can you comment on that-if necessary? THE PRESIDENT. Well, I have said time and again that I can conceive of no greater disadvantage to America than to be employing its own ground forces, and any other kind of forces, in great numbers around the world, meeting each little situation as it arises. What we are trying to do is to make our friends strong enough to take care of local situations by themselves, with the financial, the moral, the political and, certainly, only where our own vital interests demanded any military help. But each of these cases is one that has its own degree, let us say, of interest for the United States, its own degree of risk and danger; consequently, each one must be met on its merits. 366

Page  367 Dwight D. Eisenhower, I954 Al 68 I couldn't possibly give you a general rule of what the United States would do in a situation, because no one could know all of the circumstances surrounding it. I think the best answer I ever heard in diplomacy was that given by France, I believe, to Germany in late August or late July of I 9 I 4. When Germany asked her her intentions, she said, "France will do that which her best interests dictate," and that is about the only answer I believe you can give, except in terms of very great generality. Q. Garnett Homer, Washington Evening Star: Mr. President, reports from Europe indicate that the European Defense Community project is bogging down. That raises again the question of whether we have all our policy eggs in that EDC basket, or whether there is some alternative in mind if EDC fails. Could you comment on that? THE PRESIDENT. Well, I just say this. I have been threatened with defeat before, and I don't fight my second battle on the supposition that it is going to occur. I am all out for the approval of EDC and establishing it as a factor that will insure Europe's safety. Until that question is definitely settledand I still firmly believe in the affirmative-I am not going to comment on what else could happen. Q. Robert G. Spivack, New York Post: Mr. President, an explosive situation seems to be building up in the Middle East between the Arab States and Israel, which the Soviet Union seems to be exploiting, if not fomenting. I wondered if you favored bringing the Israel-Arab dispute before the U.N. Security Council, the whole dispute? THE PRESIDENT. I couldn't comment on that at the moment. It would be, I think, speaking a little bit recklessly. We have had a very definite program of our own that we have supported-when I say "of our own"I don't mean it quite that way-we have thoroughly approved the idea that is implicit in the U.N. plan that through some economic unity there we would achieve a better, let us say, psychological and political union; therefore, we have been very strongly supporting the plan of development, including water development and sharing, that we hoped would be effective. There is, of course, so much emotionalism in the thing that you can't tell from day to day how it is going to come out. But I do say it is a case where both sides ought to restrain their partisans and their extremists, use a little bit of reason, and depend upon the judgments of outside people. 367

Page  368 at 68 Public Papers of the Presidents Q. Francis M. Stephenson, New York Daily News: I wonder, is the Federal Government planning to take any action in the New York waterfront strike? THE PRESIDENT. The question is about the New York waterfront strike. I, of course, want to be careful that I don't pretend that I am going to get into a field where it is so technical that I couldn't possibly expect to know the answers; so I will talk a little bit in generalities but, I think, clearly enough to show intention and concern. Any strike of this kind is of the utmost importance to the whole Nation and, therefore, to your Federal Government. Whenever we touch this delicate transportation system of the United States and affect it seriously, we affect the economy, we affect the living, the welfare of many thousands; we affect even such things as health and sanitation, that sort of thing. So these things become serious instantly. The second they occur, every department of Government that has any possible connection instantly keeps abreast of the situation: the Attorney General; the NLRB-largely independent-of course does so, and determines such things as elections and all that sort of thing; at the same time, Federal courts, an independent branch, take action. Finally it becomes necessary to make sure that their orders are obeyed. There is also, of course, the understanding in America that everything is handled locally as long as it can be, and you don't bring down Federal agencies until it is necessary. There are city authorities, there are State authorities; they are doing their best, and again we have one of those cases where partnerships must be observed. The Federal Government has certain grave responsibilities imposed by law, but there are also the police powers and that sort of thing in keeping order that reside in the local authorities. So it is a question of partnership. Our Attorney General, the NLRB, the Secretary of Labor, everybody, is keeping up with this as closely as possible, and to keep me informed as to the whole situation, so that if it does become the responsibility of the Federal Government to take more positive action, we are ready to move in accordance with law, the Constitution, and the merits of the case. Now, there is very little more you can say, I think, on that matter. Q. Otto Leichter, Arbeiter-Zeitung, Vienna, Austria, and Swiss and West German Newspapers: Mr. President, do you consider or contemplate any new initiative to obtain an Austrian independence treaty or 368

Page  369 Dwight D. Eisenhower, 1954 qy 68 the withdrawal of all occupation forces, or at least to ease the occupation of Austria? THE PRESIDENT. I am not sure that I understood every single implication of your question; but, generally, it was, do we have any new approach now to secure a general approval of the Austrian treaty. About the only observation I could make on it is this: for now, I think it is, 6 or 7 years, we have stood firmly for the early completion of the Austrian treaty, believing it to be wholly unjust and unnecessary to continue the occupation of that country, in view particularly of the facts that early in the war it was agreed that Austria had been occupied country and not an instigator of the war. So I know of no reason that we shouldn't continue to stand on that belief; as a matter of fact, I know we do, and we will certainly be alert to every possible way of easing the situation. But when you come down to asking me to predict success or what could be a brand new approach, I could not comment. Q. George E. Herman, CBS Radio: Mr. President, the last few weeks the Soviet Union has broken a considerable amount of precedent by publishing the details of nuclear and thermonuclear explosions. Could you tell us what your feelings are on their policies and intentions in making public these facts lately? THE PRESIDENT. No, I don't really know. We have had many discussions on them-I would say inconclusive; but there are some who believe that it is indicating a slight change in public policy that might indicate a greater readiness to negotiate earnestly and honestly. We are trying to keep ourselves in position so that, at any sign of negotiating honestly, we can do so with confidence, on the plan that I suggested last December-which would be merely a beginning. All things like that, we would certainly welcome in view of the situation in the world today. Q. Ray L. Scherer, National Broadcasting Company: Mr. President, the last couple of weeks several members of your team have announced they are returning to private life: C. D. Jackson, Mr. Kyes, and Mr. Dodge. Could you discuss with us the problem of inducing such men to stay in Government? THE PRESIDENT. Today, I think it is perfectly clear to all of us, with the family responsibilities that men have, with the tax situation that they 369

Page  370 q 68 Public Papers of the Presidents have, children to educate, and all of that sort of thing, it is only natural that they think this kind of public duty should be shared. Now, each of the three men you name promised to stay a year. In each case, because of certain changes in the program and the need for having very intelligent expositions before the committees of the House and the Senate, they have agreed to stay a little longer. They are difficult to replace, but in at least two instances I am sure we have two very able and capable men to take their places. I believe that any government such as this is not wholly damaged by some rotation of people, bringing fresh people in from the outside as long as they are capable in themselves and dedicated. The three men that are going, that you just named, I couldn't speak of them in terms of too great praise. I think they have done a remarkable job. I am indebted to them, and I think the people are indebted to them. So it is not easy for any people to fill their shoes, but when you can do it, a certain amount of that rotation is good rather than bad. Q. Clark R. Mollenhoff, Des Moines Register and Tribune: Mr. President, several weeks ago I had asked if the White House had given up its efforts to obtain the resignation of Chairman Johnson of the ICC, and at that time you stated that you had no knowledge of that, and I wondered if you had an opportunity to acquaint yourself with the ICC problem of personnel. THE PRESIDENT. As a matter of fact I forgot about that question. Will you make a note, and I will. [Confers with Mr. Hagerty] As a matter of fact, Mr. Hagerty says that I make an answer that is very, very unusual for me, because he says "No comment." I don't know anything about it, but I will try again to look it up. [Laughter] That is my last question, and now Mr. Strauss is going to take over.. I didn't realize that time had gone. NOTE: During the remainder of the news reading from his statement Mr. Strauss conference the Chairman of the Atomic answered queries from members of the Energy Commission, Lewis L. Strauss, press. read from a prepared statement making The statement was released by the public those portions of his report to the White House. Excerpts of the statement President of March 30, 1954, as could be were published in the Department of released without compromising the na- State Bulletin (vol. 30, p. 548). tional security. The Chairman described President Eisenhower's thirty-third his visit to the AEC proving grounds in news conference was held in the Executhe Marshall Islands where he witnessed tive Office Building from 10:30 to 11:o09 the second part of the thermonuclear o'clock on Wednesday morning, March weapons tests for which Bikini and Eni- 3I, 1954. In attendance: 235. wetok served as bases of operations. After 370

Page  371 Dwight D. Eisenhower, 1954 69 ei Letter to Lindsay Warren Regarding His Retirement as Comptroller General of the United States. March 3 I, I 954 Dear Mr. Warren: It is with a great deal of regret that I agree to the request in your letter to retire on April 30, 1954, as Comptroller General of the United States. It is unfortunate from every viewpoint that you are unable to complete your full term after thirteen and one-half years of outstanding service in that important position. Not only has your service been long, it has also embraced the period of tremendous responsibility in government incident to the conduct of the second World War, the postwar military and foreign aid programs, and the Korean conflict. However, I can certainly understand that it would be inadvisable to continue in this very demanding office against the advice of your doctors. You have left a lasting mark on government in the great program of the General Accounting Office and can take deep pride in so vast a contribution to better, more efficient governmental operation. I appreciate the fine cooperation you have given this Administration. Please accept my warm good wishes for a fully satisfying and happy retirement. Sincerely, DWIGHT D. EISENHOWER 70 4J Statement by the President on the Death of General Hoyt S. Vandenberg. April 2, 1954 THE NATION mourns the passing of a devoted and able military leader, General Hoyt S. Vandenberg, and will hold him in grateful remembrance. Gallant commander, a decade ago, of our tactical air force in Northwest Europe; unswerving advocate of the precepts and cause of the United States Air Force; a forceful fighter for a strong national defenseGeneral Vandenberg was a courageous and tireless leader. He has left 37'

Page  372 Public Papers of the Presidents a lasting imprint on the Service he loved so well and on the nation he served with all his strength and skill. News of his untimely death brings sorrow to his host of civilian and military friends, among whom I was privileged to be numbered. 7 I 41 Statement by the President on the Fifth Anniversary of the Signing of the North Atlantic Treaty. April 4, I954 FIVE YEARS AGO today, the signing of the North Atlantic Treaty launched a unique working partnership among the Atlantic peoples. Their alliance for the preservation of peace and mutual defense against Communistic aggression is now a mighty bulwark of the free world. NATO symbolizes the unity of free men in an age of peril. Fourteen nations, diverse in language and economy and custom and political structure, are joined within it because each nation is determined to sustain its own independence. Dedicated to a common purpose, their strength is multiplied, their inexhaustible energies are pooled. During my service with NATO there were many uniforms worn, many tongues spoken at my headquarters. But daily I found new inspiration in the unity of spirit among my comrades. The inspiration remains with me; a cherished memory, a heartening proof that free men-united-can face any peril unafraid. NATO is visible evidence that, in cooperation among the free peoples, we can best preserve our common heritage of freedom against any threat. 72 eI Radio and Television Address to the American People on the State of the Nation. April 5, I 954 [ Delivered from the Broadcast Room of the White House at 8:30 p.m.] Good evening, my friends: This evening I want to talk to you about a very big subject. I want to talk to you about this great country of ours. I should like to ask you, 372

Page  373 Dwight D. Eisenhower, I954 q 72 with me, to make a quick survey of its strength, its problems, its apprehensions, and its future. Particularly I would like to talk to you about what you and I can do about its future. Now, as we first take a look at the strength of America, you and I know that it is the most productive nation on earth, that we are richer, by any standard of comparison, than is any other nation in the world. We know that we have great military strength-economic-intellectual. But I want to call your particular attention to spiritual strength. Now, I don't think it is amiss, in this season of the year that has so many religious overtones, that we call attention to this fact: that in conception, our Nation had a spiritual foundation, so announced by the men who wrote the Declaration of Independence. You remember what they said? "We hold that all men are endowed by their Creator with certain rights." That is very definitely a spiritual conception. It is the explanation of our form of government that our Founding Fathers decided upon. And now, today, that spiritual strength is just as great in its requirements as it has ever been in our whole history. By this I mean it is very important that you and I value the spiritual things that they had in mind when they founded this country. For example, the things that were stated in the Bill of Rights, the things that announce the rights that every single individual has in this country; his equality before the law, his right to worship as he pleases, and think as he pleases, and talk as he pleases, just so he does not trespass on the rights of others. And the other part of the spiritual strength we need today is the same stamina and courage and gallantry that our forefathers had in defending those rights. I want to call your attention to this particular part of the American strength, because without all this everything else goes by the board. We must be strong in our dedication and our devotion to America. That is the first element of our entire strength. But all in all, this total strength of America is one of those things we call-and the world callsunbelievable. Now why, then, with all this strength, should we be worried at times about what the world is doing to us? Actually we see threats coming from all angles-internal and external, and we wonder what is going to happen to us individually and as a Nation. Now, perhaps I can illustrate some of the reasons for this concern of today. Thirty-seven years ago tomorrow, our country entered the First 51986-60 27 373

Page  374 (e 7 2 Public Papers of the Presidents World War. At that time, I was a lieutenant serving with the United States Infantry in Texas. My regiment was armed, as were all other regiments, with the same kind of equipment, at least as to type and general character of power, as were the regiments that fought the SpanishAmerican War. Now, only a year ago, the hydrogen bomb was exploded in the Pacific. Last month, another series of tests was undertaken. Now, this transfer of power, this increase of power from a mere musket and a little cannon, all the way to the hydrogen bomb in a single lifetime, is indicative of the things that have happened to us. They rather indicate how far the advances of science have outraced our social consciousness, how much more we have developed scientifically than we are capable of handling emotionally and intellectually. So that is one of the reasons that we have this great concern, of which the hydrogen bomb is merely a dramatic symbol. None of the questions that bothers us today has an easy answer. And many of them have no answers at all, at least in their complete sense. We may only do our best, and from there on make sure that we are doing all that human beings can do to meet these problems. This is not greatly different from what the ordinary American family does. It has the problems of meeting the payments on the mortgage, paying for the family car, educating the children, laying aside some money for use in case of unexpected illness. It meets these problems courageously. It doesn't get panicky. It solves these problems with what I would call courage and faith, but above all by cooperation, by discussing the problem among the different members of the family and then saying: this is what we can do, this is what we will do, and reaching a satisfactory answer. The problems of America are the family problems multiplied a millionfold. That is what we are talking about tonight. Now I am not going to try to talk about all these problems. We can talk about water conservation, and soil erosion, and handling of the public debt, and all of these things that bother us day by day in our daily lives. But I am going to confine myself this evening to discussion of just four or five of these. For example, we are concerned about the men in the Kremlin. We are concerned about the Atomic Age. We are concerned about the loss of our international friends in exposed areas of the world-the loss of them to the Communist dictatorship. We are worried about Communist pene374

Page  375 Dwight D. Eisenhower, 1954 tration of our own country, and we are worried about the possibility of depression, and the loss of jobs among us here at home. Now, the greater any of these apprehensions, the greater is the need that we look at them clearly, face to face, without fear, like honest, straightforward Americans, so we do not develop the jitters or any other kind of panic, that we do not fall prey to hysterical thinking. Sometimes you feel, almost, that we can be excused for getting a little bit hysterical, because these dangers come from so many angles, and they are of such different kinds, and no matter what we do they still seem to exist. But underlying all of these dangers is one thing: the threat that we have from without, the great threat imposed upon us by aggressive communism, the atheistic doctrine that believes in statism as against our conception of the dignity of man, his equality before the law-that is the struggle of the ages. Now, the H-bomb-the H-bomb and the Atomic Age. They are not in themselves a great threat to us. Of course not. The H-bomb is a threat to us only if a potential aggressor, who also has the secrets of the H-bomb, determines to use it against us. And against that, then, we have to make our provisions, to make certain that sensible men have done every possible thing they can to protect ourselves against that threat. Communism seeks to divide us, to set class against class, good people against good people, when those good people should be standing together in defense of liberty and against communism. Because of that, we must take counsel among ourselves and stand together and let nothing tear us apart. So let us first, then, take these purposes one by one, and think of some of the counterbalancing factors against the threat itself. By this I mean, take the Kremlin. When we say that word, we mean the politburo, and we think of what may be its designs against us, what may be the dictator's intentions with respect to war or aggression, his plans to enslave the world. Of all of these, of course, war poses to us the gravest threat, because of its destructive qualities. Now let us take the first of what I would call the counteracting or counterbalancing factors. The very fact that those men, by their own design, are in the Kremlin, means that they love power. They want to be there. Whenever they start a war, they are taking the great risk of losing that power. They study history pretty well. They remember Mussolini. They remember Hitler. They have even studied Napoleon very 375

Page  376 q 72 Public Papers of the Presidents seriously. When dictators over-reach themselves and challenge the whole world, they are very likely to end up in any place except a dictatorial position. And those men in the politburo know that. So we have the first of these counteracting or counterbalancing factors, against the possibility of their declaring war. There are many risks of every kind in war. Among other things, the Russians have a system of satellites-captive satellites. Now they know, again, the risks of indulging in war when you have captive satellites. Napoleon went into Russia in 1812 with exactly that kind of army. The Grand Army of France had been reinforced by Prussians and others of the regions that Napoleon had conquered, whose soldiers he had impressed into his own army. As quickly as he met his first disaster, they began to desert. The Russians know all that. That very system of satellites could be, in a war of exhaustion, a very great source of weakness. They have, as compared to us, economic weaknesses, and after all a strong economy is necessary, if you are going to push through to victory in a modern war. The Russians produced last year something less, probably, than half a billion barrels of oil. We produced two and a quarter by ourselves. We produced something over twice as much steel as they produced. Now these are strong elements in our economy, when you are going to use so much of your production to wage a war, particularly a war of exhaustion. Now all of these things are deterrents upon the men in the Kremlin. They are factors that make war, let us say, less likely. As long as they know that we are in position to act strongly and to retaliate, war is not a decision to be taken lightly. Yet I admit-and we must all admitthat it remains a possibility they might do this, in a fit of madness, or through miscalculation. Of course, as I mentioned before, the H-bomb is dangerous because those people have its secrets, possess and have exploded, as they did some months back, such a bomb. But we know, with respect to that bomb, we are not going to start a war. It is not going to be used by our initiative. And I have just talked about this sobering effect of the risks of war upon the men in the Kremlin. Of all those sobering effects, none is greater than the retaliation that will certainly be visited upon them if they would attack any of our nations, or any part of our vital interests, aggressively and in order to conquer us. 376

Page  377 --- Dwight D. Eisenhower, i954 In addition to all this, we devote ourselves to civil and continental defense, in order to make certain that we have the best possible chance to live through such a catastrophe, as well as to inflict upon the enemy such losses that he would quit fighting. But since insanity still exists, I again say there is still an element in that threat that we must calculate very coldly and very carefully. Now the next thing that we fear, or concerning which we are apprehensive, is this idea of Communist infiltration into our own country, into our Government, into our schools, into our unions, into any of our facilities, any of our industries, wherever they may be, and wherever those Communists could damage us. Now, it would be completely false to minimize the dangers of this penetration. It does exist. We know some of them are here. Yet, let me give you now some of the counterbalancing factors. First of all, this fear has been greatly exaggerated as to numbers. In our country today, there are possibly some 25 thousand doctrinal Communists. The FBI knows pretty well where they are. But the headlines of the newspapers would sometimes have you think that every other person you meet is a Communist. Actually, 25 thousand out of i 6o million people means about one out of six thousand. But they are dangerous. Now our great defense against those people is the FBI. The FBI has been doing, for years, in this line of work, a magnificent job. They are a great bulwark, and any one of you can notify them today about real valid facts which you have, and they will be on the job doing something about it. They are that kind. So great is the story that they have to tell that I am not going to attempt to tell it tonight. Instead, I have asked the Attorney General on next Friday night, to come before you and give you a complete account of what the FBI has been doing about this. Along with this, this fear of Communist penetration, comes another fear that is related to it, the fear that we will use intemperate investigative methods, particularly through congressional committees, to combat communistic penetration. As I pointed out before, it is minute. The great mass of governmental people, Government workers, civilian and in uniform, people in our schools, and everywhere else that we can think of, are just as dedicated as you and I. They are just as loyal. But this fringe still has to be 377

Page  378 -0 72 ~J72 Public Papers of the Presidents -hunted out, and as I say, you will get a full report of what the FBI is,doing on this. Now, the congressional committee. One of its functions-when it was set up as the congressional investigative committee it was to be your protection against the unwarranted attacks of an overpowering executive. It was to look after your civil liberties, to make certain that your liberties were not eroded away. Now, ladies and gentlemen, I admit that there can be very grave offenses committed against an innocent individual, if he is accused, possibly, by someone having the immunity of congressional membership. He can lose his job. He can have scars that will be lasting. But in the long run, you may be certain of this: America believes in, and practices, fair play, and decency and justice. In this country, public opinion is the most powerful of all forces. And it will straighten this matter out wherever and whenever there is real violence done to, our great rights. And now the next fear I want to touch upon is the fear of losing international friends, the fear that comes to us, or the apprehension that comes to us, when we consider that exposed areas of the world, not so strong as we are, not so strong in materials, or in this world's riches, or militarily, may fall prey to the subversion, the deceit, the bribery, and the propaganda that is practiced by the Russians. Now, some of these areas are very, very important to us, not merely because of the necessary materials we get from them-tin, tungsten, rubber, manganese, and all the things we need to keep our economy going-but because those people, if regimented under the Communist dictators in the Kremlin, could make them stronger and stronger as against us, as the free world was chipped away. Now, let us take, again, some of the counterbalancing values. Did you ever stop to think there is no nation in the world that has ever freely adopted communism in a vote of the people? On the contrary, every time Communists have taken over a country, even Russia, it has been done by a very small minority practicing violence. Or through some slick method, or political move it has gotten control of the country, establishing a gestapo or other method of police control and has ruled that country. Moreover, there is a growing understanding in the world, of the decency and justice of the American position in opposing the slavery of any nation. We do not believe that any nation, no matter how great, 378

Page  379 Dwight D. Eisenhower, 1954 q 72 has a right to take another people and subject them to its rule. We believe that every nation has a right to live its own life. Every bit of aid we give, every cooperative effort we undertake, is all based upon the theory that it is cooperation among equals. The other night, a newspaper by a curious error, spoke of allies as "appliances" instead of alliances. Now the one mistake we must never make is to think of our friends in the international world as being tools of ours. They are not. They are friends of ours. And as they are friends, they are equals to us. The United Nations was conceived with one idea: that cooperative effort among great and free, peace-loving nations could establish peace in this world. That the United Nations authorizes coalitions in different areas of the world designed for the same purposes and in the same spirit. We believe in these. In every corner of the world, whether it is to protect the southwest Pacific, or NATO in Europe, or wherever it is, we believe that the interested nations should band together, and in cooperative spirit, maintain the freedom of those countries against any kind of communist aggression. Still, some of these nations are weak; they are indecisive. And we have our disappointments in trying to build them up. So we have again that form of apprehension to take into our calculations, prepare for and prepare against. Now I want to take up, just very briefly, the fear of depression and loss of jobs. You will hear people talking about the level of 3,700,ooo unemployed. And it is very true. And it is a figure that comes about as a result of our efforts to go from a war to a peace economy. That figure happily shows every sign now of leveling off. The last report was only a few thousand greater than the one just earlier. But these people who look on it so gloomily never say to you that there are more than 6o million people today gainfully employed in the United States, entirely aside from the 3,500,000 that are in the armed services. We have a number of peacetime jobs and an employment that is very near to an all-time high. We have great insurance plans in this country against loss of jobs. We have a farm program to protect the farmer against disaster. We have the great savings of our people near an all-time high. And then we have the great requirements of the i 6o million people of good income, and that is the kind of thing that gives employment and insures the productivity of our farms and factories. But aside from this, my friends, we have also a Government that is 379

Page  380 (f 72 Public Papers of the Presidents ready to act whenever necessary. Now one of the important things in this kind of problem is the attitude of your Government. I have tried to define our Government several times as one that is completely liberal in its relationship to people, but earnestly tries to be conservative when it deals with your money and your economy. Now already there have been many measures taken to ease and to accommodate this transition from war to peace economy. We have made loans easier and facilitated construction. We have reduced and are reducing to some extent the surpluses that overhang our agricultural market. We are trying to increase our markets abroad, stimulating production, and so on. But there are many, many more plans in reserve, ready to use if necessary. Among these, of course, is public construction, further lowering of taxes, increasing your money to spend in many ways, and that is something to be brought out if necessary. But on the other hand, your Government does not intend to go into any slambang emergency program unless it is necessary. Now, my friends, I should say that the one great aspiration of America is a free, peaceful, and prosperous world. To have a free, peaceful, and prosperous world, we must be ever stronger; we must be ever stronger not only in the things I have mentioned but particularly in this spiritual sense, in the belief-the faith that we can do certain things. We must have the faith that comes from a study of our own history, from the inspiration of leaders like Washington and Lincoln, and what our pioneering forefathers did. But as we look at the whole problem, and we sum up these apprehensions of which I have just spoken, we find that each of them has a certain lingering element of truth in it. And so we have plans, and this administration has presented to the Congress a plan-a legislative program. In that program there is ample measure for defense, civil, and continental defense and for the deterrent effects of our atomic development. We have lowered taxes so that six billion dollars or more have been turned back to the public so as to stimulate production. We have farm programstaxes-trade-mutual security-housing-social security-health programs-all of these things. My friends, if they are done, we will be certain of a stronger America that will be capable of bringing closer to us this peaceful, prosperous, and secure America. But I say, again, that it is the American belief in decency and justice and progress, and the value of individual liberty, because of the rights 380

Page  381 Dwight D. Eisenhower, 1954 41 73 conferred upon each of us by our Creator, that will carry us through, as we study and plan these things. There must be something in the heart as well as in the head. So as we do this, as you and I approach our problems in this way, I assure you we don't have to fear. I don't mean to say, and no one can say to you, that there are no dangers. Of course there are risks, if we are not vigilant. But we do not have to be hysterical. We can be vigilant. We can be Americans. We can stand up and hold up our heads and say: America is the greatest force that God has ever allowed to exist on His footstool. As such it is up to us to lead this world to a peaceful and secure existence. And I assure you we can do it. Good-night, my friends. 73 e1 The President's News Conference of April 7, I954. THE PRESIDENT. We will go right to questions this morning, ladies and gentlemen. Q. Merriman Smith, United Press: Mr. President, concerning the hydrogen bomb, are we going to continue to make bigger and bigger H-bombs and, as the H-bomb program continues or progresses, are we learning anything that is directly applicable to the peacetime uses of atomic energy? THE PRESIDENT. No, we have no intention of going into a program of seeing how big these can be made. I don't know whether the scientists would place any limit; and, therefore, you hear these remarks about "blow-out," which, I think, is even blowing a hole through the entire atmosphere. Q. (Questioner unidentified): What was that, sir? THE PRESIDENT. I say you hear statements, comments like "blow-out" and all of that sort of thing. We know of no military requirement that could lead us into the production of a bigger bomb than has already been produced. Now, with respect to the potentiality of this development for peacetime use, our people study, I think in almost every aspect of human affairs, how this whole atomic science, this nuclear science, can be applied to peacetime uses. 51986-60 —28 38I

Page  382 L_~ q 73 Public Papers of the Presidents It would be rash to say that the hydrogen bomb doesn't add to the possibilities; yet, at the moment, I know of no direct connection or direct application of the hydrogen bomb principle to peacetime power. I asked that very question of the scientists, and they gave an answer as nearly as I have just stated it as I can recall. Q. Walter Ridder, St. Paul Pioneer Press and Dispatch: Sir, on that subject, a certain Senator said last night there had been a delay of I8 months in the production of the hydrogen bomb, and suggested it was due to subversion in Government. Do you know anything about that? THE PRESIDENT. No, I know nothing about it. I never heard of any delay on my part, never heard of it. Q. Mrs. May Craig, New England Papers: Mr. President, aren't you afraid that Russia will make bigger hydrogen bombs before we do? THE PRESIDENT. No, I am not afraid of it. I don't know of any reason for building a bigger bomb than you find to represent as great an efficiency as is needed or desirable, so I don't know what bigger ones would do. Q. Joseph Harsch, Christian Science Monitor and NBC: Mr. President, would you care to say anything to us about the loyalty and patriotism of Edward R. Murrow? THE PRESIDENT. I am going to say nothing at all about that. First of all, I don't comment about people, I don't comment about things of which I know nothing. I will say this: I have known this man for many years; he has been one of the men I consider my friend among your profession. That is what I do know about him. So far as indulging in philosophical discussion, I can't remember any instance; but I do say that he has been one of those that over the years, in the war, when he was working in London, and so on, I always thought of him as a friend. Q. Robert Richards, Copley Press: Mr. President, would you mind commenting on the strategic importance of Indochina to the free world? I think there has been, across the country, some lack of understanding on just what it means to us. THE PRESIDENT. You have, of course, both the specific and the general when you talk about such things. First of all, you have the specific value of a locality in its production of materials that the world needs. 382

Page  383 Dwight D. Eisenhower, 1954 Then you have the possibility that many human beings pass under a dictatorship that is inimical to the free world. Finally, you have broader considerations that might follow what you would call the "falling domino" principle. You have a row of dominoes set up, you knock over the first one, and what will happen to the last one is the certainty that it will go over very quickly. So you could have a beginning of a disintegration that would have the most profound influences. Now, with respect to the first one, two of the items from this particular area that the world uses are tin and tungsten. They are very important. There are others, of course, the rubber plantations and so on. Then with respect to more people passing under this domination, Asia, after all, has already lost some 450 million of its peoples to the Communist dictatorship, and we simply can't afford greater losses. But when we come to the possible sequence of events, the loss of Indochina, of Burma, of Thailand, of the Peninsula, and Indonesia following, now you begin to talk about areas that not only multiply the disadvantages that you would suffer through loss of materials, sources of materials, but now you are talking really about millions and millions and millions of people. Finally, the geographical position achieved thereby does many things. It turns the so-called island defensive chain of Japan, Formosa, of the Philippines and to the southward; it moves in to threaten Australia and New Zealand. It takes away, in its economic aspects, that region that Japan must have as a trading area or Japan, in turn, will have only one place in the world to go-that is, toward the Communist areas in order to live. So, the possible consequences of the loss are just incalculable to the free world. Q. Diosdado M. Yap, Manila Chronicle: Mr. President, next Friday marks the I2th anniversary of the fall of Bataan. Would you care to make any comment on it? THE PRESIDENT. Well, I have been asked by General Romulo to send a message to a meeting, which I have done. If I haven't already signed it, I have been working on it, I know that. Q. Raymond Brandt, St. Louis Post-Dispatch: Mr. President, what response has Secretary Dulles and the administration got to the request for united action in Indochina? 383

Page  384 Public Papers of the Presidents THE PRESIDENT. So far as I know, there are no positive reactions as yet, because the time element would almost forbid. The suggestions we have, have been communicated; and we will have communications on them in due course, I should say.' Q. Robert G. Spivack, New York Post: Mr. President, do you agree with Senator Kennedy that independence must be guaranteed the people of Indochina in order to justify an all-out effort there? THE PRESIDENT. Well, I don't know, of course, exactly in what way a Senator was talking about this thing. I will say this: for many years, in talking to different countries, different governments, I have tried to insist on this principle: no outside country can come in and be really helpful unless it is doing something that the local people want. Now, let me call your attention to this independence theory. Senator Lodge, on my instructions, stood up in the United Nations and offered one country independence if they would just simply pass a resolution saying they wanted it, or at least said, "I would work for it." They didn't accept it. So I can't say that the associated states want independence in the sense that the United States is independent. I do not know what they want. I do say this: the aspirations of those people must be met, otherwise there is in the long run no final answer to the problem. Q. Joseph Dear, Capital Times: Do you favor bringing this Indochina situation before the United Nations? THE PRESIDENT. I really can't say. I wouldn't want to comment at too great a length at this moment, but I do believe this: this is the kind of thing that must not be handled by one nation trying to act alone. We 'on April IO, I954, the White House released a statement by the Secretary of State shortly after his talk with the President before leaving for London and Paris. Secretary Dulles stated that he would consult with the British and French governments about the problems involved in creating "the obviously desirable united front to resist communist aggression in Southeast Asia." The Secretary continued: "The communist bloc with its vast resources can win success by overwhelming one by one little bits of freedom. But it is different if we unite.... Our purpose is... to create the unity of free wills needed to assure a peaceful settlement which will in fact preserve the vital interests of us all." In a statement released by the White House on April i9, following his return to Washington, Secretary Dulles noted that he had found in both capitals recognition of the need for exploring the possibility of establishing a collective defense. The full text of both statements by the Secretary of State are published in the Department of State Bulletin (vol. 30, pp. 590, 668). 384

Page  385 Dwight D. Eisenhower, 1954 must have a concert of opinion, and a concert of readiness to react in whatever way is necessary. Of course, the hope is always that it is peaceful conciliation and accommodation of these problems. Q. Charles von Fremd, CBS Television: I would like to go back to the A- and H-bomb matter for just a moment, sir. Due to the concern and the arguments in the British House of Commons in the past week, do you think it possible or wise to have a renewal of the passage of atomic energy information or hydrogen information between the two countries? THE PRESIDENT. Well, exactly how much information you have to pass back and forth, I am not sure. This whole development has a curious history, and, I believe, the Prime Minister tried to trace some of the several steps the other day in the House of Commons. Originally, I think it was clearly evident that there was supposed to be a complete exchange of information. Then there was a new agreement made in '48-intervening was the Atomic Energy Act. And now, the Atomic Energy Commission is-I don't know whether it has as yet presented the bill, but it has been working on a bill, at least, you might say to modernize the law under which we operate. The original bill, let me call your attention, was drawn under the theory we could keep the secret of the manufacture of the atomic bomb. Well, the second that went out and was disproven, then you have a new condition, and there should be now some revision of law. As to exactly how much information we should exchange, I am not certain; but I do know this: when it comes down to the exchanging of the information that is necessary in order for allies to work together intelligently, both for the prevention of war or in the tragic occurrence of war for operating efficiently, that much, of course, we must do now. Q. Alice Johnson, Seattle Times: Mr. President, last week the Senate passed a measure enabling both Hawaii and Alaska to achieve statehood. If the House should pass that measure, would you veto the bill? THE PRESIDENT. I believe I have made a rule here never to predict what I will do. I am sometimes like the man, you know, who in a speech was introduced a little bit overgenerously; and he said, "I am even going to be interested in what I am going to say, because there certainly have been great predictions made about it." [Laughter] 385

Page  386 Public Papers of the Presidents Here we have a situation for which I have stood for a long time, Hawaiian statehood. I thought there were certain considerations of national security, and so on, that made the other case a separate one. If these bills are put together, I will have to take a look at them at the time and study and decide what I believe to be right at that moment. I just can't predict. Q. Mrs. Johnson: May I ask one more allied question? Governor Heintzleman of Alaska recently suggested that statehood should be given only to the populated area of Alaska. Would you favor such a move as that? THE PRESIDENT. I don't know whether I would favor it. It certainly is a different problem; and I would look at it with an entirely different viewpoint than I would if we had all those outer reaches, barren outer reaches, that are lying on the Bering Sea and the Arctic Ocean, included. It would be a different problem in my mind. Q. Ethel Payne, Defender Publications: Mr. President, in your housing message to Congress on January 25th you said the administrative policies governing the operations of the several housing agencies must be, and will be, materially strengthened and augmented in order to assure equal opportunity for all of our citizens to acquire, within their means, good and well-located homes. Then there was a further reference to the misuse of slum clearance laws to dislocate persons. I would like to know what administrative regulations have been issued by the housing agencies to implement this part of the message. THE PRESIDENT. You have asked a question that I will have to ask Mr. Hagerty to look up for next week. I know this: I know that every administrative part of Government knows my policy and is trying to do it. Now, they may be slow getting around to it, sometimes. Q. Robert Clark, International News Service: Secretary Dulles has said that the Chinese Communists are awfully close to open aggression in Indochina. Can you tell us what action we are prepared to take if their intervention reaches the point of open aggression? THE PRESIDENT. No, Mr. Clark, I couldn't answer that one for the simple reason that we have got this whole troublous question now under study by a group of people. The only thing I can say is that here is a problem that is of the utmost moment to all of us, not only the United States, to the free world. It is 386

Page  387 Dwight D. Eisenhower, 1954 4t 73 the kind of thing to which there is more attention given, I guess, at the given moment of real acute occurrence than almost any other thing. It is getting study day by day, and I can't tell you what would be the exact reaction. Q. Sarah McClendon, El Paso Times: Sir, I found many Senators and House members this week who said that while you were allaying their fears, that Secretary Dulles was making them fear more, and I wonder if he is going to clear his statements on Indochina with you? THE PRESIDENT. So far as I know, Secretary Dulles has never made an important pronouncement without not only conferring and clearing with me, but sitting down and studying practically word by word what he is to say. Now, I am not aware of any antagonism between the statements he has made and I have made. I have plead with America to look facts in the face; I have plead with them not to minimize what the possibilities of the situation are, but to realize that we are i 6o million of the most productive and the most intelligent people on earth; therefore, why are we going around being too scared? Now, on the other hand, we would be completely foolish not to see what these facts are and what their potentialities are. I see those two statements as completely compatible, not as incompatible. Q. Marvin Arrowsmith, Associated Press: Mr. President, you have touched on this, but I wonder if you could tell us whether there is any truth to these reports in the last couple of days that the United States is asking some of the other free nations to join in a joint declaration warning Communist China against any aggression in Southeast Asia? THE PRESIDENT. No; in approach, Mr. Arrowsmith, you call attention to the problem and say that this looks like a place where the interests of all of us are involved, and now let us talk this over. You don't propose the answer before you study it, put it that way. Q. Kenneth Scheibel, Gannett Newspapers: Sir, could you tell us how soon you expect to name a successor to Mr. Warren, the Comptroller General? THE PRESIDENT. No, I can't tell you. Q. Henri Pierre, Le Monde (Paris): Mr. President, would you say that the last statement of the Secretary of State of last week about 387

Page  388 q' 73 Public Papers of the Presidents Indochina has improved the chance of reaching a negotiated solution at Geneva of the Indochinese controversy? THE PRESIDENT. Your question is really, do I think there is a good chance of reaching a negotiated solution? Q. Mr. Pierre: That is right. THE PRESIDENT. Well, I wouldn't class the chances as good, no, not one that the free world would consider adequate to the situation. I must say, let me make clear again, I am certain the United States, as a whole, its Congress and the executive portions of its Government, are ready to move just as far as prudence will allow in seeking any kind of conciliation or negotiated agreement that will ease any of the problems of this troubled world. But one thing: we are not going to overstep the line of prudence in keeping ourselves secure, knowing that the agreements we made have some means of being enforced. We are not simply going to take words. There must be some way of making these things fact and deed. Q. Robert Riggs, Louisville Courier-Journal: Does the executive branch want any action by Congress now about Indochina? THE PRESIDENT. Not at this moment. I should point out, with all the sincerity I have, there is nothing partisan about this problem. There is nothing, so far as I know, in which the executive branch and the Congress are apart. We not only must confer upon the broadest scale with the leaders of Congress as we proceed toward a decision, we go just as far as they would think it would be necessary in such a conference. If some specific authority or anything else were necessary, it would be asked for after the leaders had already agreed on a bipartisan basis this is what we should do. I know of nobody that is trying to escape his responsibility in this whole business, because we realize that it is America and the free world we are talking about, and nothing else. Q. Martin Agronsky, American Broadcasting Company: Mr. President, in response to the question about whether you knew anything of Senator McCarthy's charge that the building of the H-bomb had been delayed for 18 months as a result of Communist influence in our Government, you replied you didn't know anything about that. That might leave the implication, sir, that there is some possibility of truth in that charge. It is a very serious charge, of actually high treason in Government. 388

Page  389 Dwight D. Eisenhower, 1954 '9 73 THE PRESIDENT. I don't know. As a matter of fact, I don't know of any speech, first of all; I get from here the first knowledge that there was a speech. But, secondly, I have been very close to the Chairman of the Atomic Energy Commission. He tries to keep me informed not only of present developments but of history. He has never mentioned such a thing as you speak of, and I gave a perfectly honest answer: I never heard of it. Q. James Patterson, New York News: Mr. President, as the last resort in Indochina, are we prepared to go it alone? THE PRESIDENT. Again you are bringing up questions that I have explained in a very definite sense several times this morning. I am not saying what we are prepared to do because there is a Congress, and there are a number of our friends all over this world that are vitally engaged. I know what my own convictions on this matter are; but until the thing has been settled and properly worked out with the people who also bear responsibilities, I cannot afford to be airing them everywhere, because it sort of stultifies negotiation which is often necessary. Q. John W. Vandercook, American Broadcasting Company: Going to a change of subject, sir, the most recent figures of the Bureau of Census have indicated that possibly unemployment is leveling out; that statement has been made. Would you care to say, sir, whether you have reckoned a specific figure or proportion of unemployment which might be regarded as acceptable or permissible as an average in the American life? THE PRESIDENT. Well, in the economic conferences, we talk about that possibility a very great deal. But let us remember, the economy of America is not a static thing; you cannot say 6 percent equals so-and-so, and that is disaster, and something else is prosperity. It is a fluid thing, and you must keep touch with it. Now, the last figures I saw, apparently the total of employment rose about 50,000 in March and apparently unemployment rose about 50,000, sort of canceling each other out, but showing a very definite flattening out of the curve of the rise of unemployment. There are other rather encouraging signs in the economy. The thing is now, I think, to keep in touch with it day by day to be ready to move with everything you have, to give it a boost in the right direction. But 389

Page  390 (t 73 Public Papers of the Presidents again, as in all other things, let's don't be panicky about it, let's be straightforward. This is one field where I have no intention of trying to conceal anything from the American public that we find out. It is just what do we do at any given moment, and it is not always easy, but we are doing our best. Q. Mr. Vandercook: May I ask a related question, sir? THE PRESIDENT. Yes. Q. Mr. Vandercook: Do you have in mind so far any intention of proposing legislation to assist the States to continue unemployment benefits beyond the 6 months' period, as that 6 months, in many instances, is running out? THE PRESIDENT. I have forgotten for sure whether that was in the bill that went to the Congress or not. I remember the subject was discussed by Mrs. Hobby in front of me, and I would have to ask Mr. Hagerty to give you the exact thing as to whether it was actually in the bill. Merriman Smith, United Press: Thank you, Mr. President. NOTE: President Eisenhower's thirty- I 0:57 o'clock on Wednesday morning, fourth news conference was held in the April 7, 1954. In attendance: 197. Executive Office Building from 10:32 to 74 eJ Statement by the President on the Approval by the Luxembourg Parliament of the European Defense Community Treaty. April 7, 1954 I HAVE JUST learned of the vote of the Luxembourg Parliament, approving ratification of the treaty establishing the European Defense Community. Luxembourg has thus become the fourth of the six European Defense Community nations whose Parliament has taken favorable action. This represents further significant progress in the establishment of this Community. The integration of the defense forces of France, Germany, the Benelux nations and Italy will do much to assure conditions in Europe which will contribute to the peace and security of that area. 390

Page  391 Dwight D. Eisenhower, I954 75 1 Statement by thePresidentUpon Approving the Joint Resolution Providing for the Observance of Bataan Day. April 8, I954 I HAVE TODAY approved Senate Joint Resolution 143 providing for the observance of April 9, the twelfth anniversary of the fall of Bataan, as Bataan Day. The intervening years since Bataan have little dimmed the bitterness of defeat, the sorrow at the terrible human loss. Nevertheless, that day was a day of glory. Philippine and American soldiers wrote a heroic chapter in military history. As comrades in arms they proved in defeat that men of righteous purpose and firm resolve can endure suffering and death and fight with courage and tenacity. Bataan Day reminds us of the close ties which bound our two countries in adversity and by which we are still joined in happier circumstances. We are bound no longer in a relationship of dependence, nor by common peril, but in a far richer bond-that of free and sovereign nations with like aims and aspirations. On this twelfth anniversary of the fall of Bataan, let us remember with a full measure of gratitude those brave and gallant men of our two countries who stood and fell together in the cause of freedom. NOTE: As enacted, Senate Joint Resolution 143 is Public Law 328, 83d Congress (68 Stat. 51). 76 41 Remarks at Ceremony Marking the Issuance of the First Stamp Bearing the Motto "In God We Trust." April 8, 954 General Summerfield and distinguished guests: The size and greatness, the influence of America have come to be an accepted fact in the modem world. In trying to describe these characteristics and qualities of our country, we are often tempted to do it in terms of the height of our buildings, the extent of our roadways, the speed of our automobiles, the wonderful gadgets that we use in our houses. 39I

Page  392 9 76 Public Papers of the Presidents But America was great, America was a symbol of hope to many millions of people long before these modern appliances were even discovered by the genius of man. Throughout its history, America's greatness has been based upon a spiritual quality, which seems to me is best symbolized by the stamp that will be issued today, and in honor of which issuance we are here gathered. The Flame of Liberty symbolizes the determination of America always to remain free, to remain a haven of the oppressed and a ready acknowledgement that all men in the attainment of human aspirations and worthy aspirations are dependent upon an Almighty. It seems to me in these two concepts we have a true description of the greatness of America. The reason that I was particularly honored to come here today, aside from the opportunity of meeting with friends, was to be a part of the ceremony which now gives to every single citizen of the United States, as I see it, the chance to send a message to another. Regardless of any eloquence of the words that may be inside the letter, on the outside he places a message: "Here is the land of liberty and the land that lives in respect for the Almighty's mercy to us." And to him that receives that message, the sender can feel that he has done something definite and constructive for that individual. I think that each of us, hereafter, fastening such a stamp on a letter, cannot fail to feel something of the inspiration that we do whenever we look at the Statue of Liberty, or read "In God We Trust." NOTE: The ceremony was held in the Summerfield. The stamp was an 8-cent office of Postmaster General Arthur E. issue. See also Item 77 below. 77 eT Remarks at Luncheon Meeting of the National Conference of Republican Women. April 8, 1954 Madam Chairman, and ladies: To illustrate the state of confusion in which I sort of find myself at this moment, I think I should tell you a story about three cross-eyed men who were called before a cross-eyed judge. And in starting the 392

Page  393 Dwight D. Eisenhower, 1954 examination, he said to the first, "What's your name?" And the second one said, "John Smith." The Judge said, "I didn't speak to you," and the third one said, "I know it." For some reason or other, I thought I was to come to a business meeting of this organization and that I was to step in and more or less wave a hand and be on my way. I found that, as you can see, that I was a little wrong. I have just come from assisting in the dedication of a new stamp. Sounds like a very commonplace and ordinary sort of thing to do. It was thrilling-and I will tell you why it was to me. Not only because of the company there gathered-representatives of all the great religious groups of the United States, and of our Government, and of others. The stamp has on it a picture of the Statue of Liberty, and on it also is stated "In God We Trust." By putting on the Flame of Liberty, it seems to me it places America before the world, not as the greatest nation because of its tall buildings and its automobiles, but because it represents a concept of human dignity, that here all the world can enjoy this liberty, all of those who come to her shores; and also a Nation whose greatness is based on a firm unshakeable belief that all of us mere mortals are dependent upon the mercy of a Superior Being. Now the reason this seems so thrilling is not just those thoughts, but the opportunity it gives to every single individual who buys the stamp to send a message-regardless of the content of a letter. You may, by placing that stamp on a letter, send a message of hope to those who are oppressed, or let us say, of inspiration and reawakening to our own friends and those among us who will be reminded thereby that this is the land of the free and in God we trust. So each of those stamps, I think, is a worthy messenger of the American system. And as I can see this, every proper, every dedicated political worker is exactly the same. The Republican Party is by no means a conspiracy among people who simply thirst for power. The Republican Party is an agency of America, which means an agency for spreading further in the world this concept of the dignity of the human, our dependence upon a Superior Being. And in those two concepts we find vast room to develop every single good thought, idea, program, for the benefit of our own citizens, and to serve as worthy leaders in the same way for the entire world. Ladies and gentlemen-are there any gentlemen here?-I cannot tell 393

Page  394 Public Papers of the Presidents you how great I believe to be the opportunity that now lies before America, and before the Republican Party of that country. Now, I understand-I have been told-that 52 percent of the votes cast for the Republicans in the last national election were by women. Consequently, I must say that it would appear the majority of my gratitude to the people for the work they did in advancing the kind of theory of which I have been trying so haltingly to speak, belongs to the women. I want to tell you now two tiny stories, one occurring this morning in my office. There is a man visiting us from Australia. He is head of the steel union-the iron and steel union of Australia. His name is Short. He is a very thoughtful, very earnest, and very sincere man. And he was talking about defeating communism. He fought for 15 years within his union to defeat communism, and finally did it, and is now chairman of that union, the greatest in Australia. He has, therefore, acquired a very great deal of experience, a lot of which we could possibly use. He does not believe that the defeat of communism lies merely in economic measures, in trying to raise the standard of living. He believes it is in work-work and organization. And he made the report that women are great workers, and if they believe something, if they are dedicated to it, their energy is tireless, their determination unbounded. Not long ago I had the great pleasure of playing a round of golf-at least I went along-with Ben Hogan. Ben Hogan is, of course, the great golfer of our time-of these modem days. I said to him, "Do you think that such and such a young man will be a champion who can take your place?" And he said, "It depends entirely on how seriously he takes his job and how hard he will work." He said, "He has got everything; that's all he needs to do." I think that the tribute that I should like to bring to Republican women this morning is this: whenever they have come to my office, and their representatives, they have sought opportunities to work, opportunities better to organize, missions to carry out-something to do. I have yet to have a delegation of women come to my office and insist that so and so be appointed to this or to that, or that we lower taxes even on handbags. They have come as dedicated people, ready to work, appreciating the seriousness of their job. I could wish that that kind of attitude and that kind of spirit was shared by every single American, no matter what their political faith, 394

Page  395 Dwight D. Eisenhower, I954 q 78 no matter what their political convictions. Because in the long run, it is only as America expresses with all its might what it believes, in its heart and its mind, are we going to be safe and secure in a free and prosperous world. If we do that we cannot fail. We must have that kind of dedication to win. I am very grateful to you for asking me over in front of this distinguished body. I hope you have had a fine time here. I hear that you have been briefed by most of my Cabinet officers. And I get that every week, so I know you are very well informed about everything that is going on. Thank you. NOTE: The President's opening words the President referred to Laurence E. "Madam Chairman" referred to Bertha Short, National Secretary of the FedAdkins, Assistant to the Chairman of the erated Iron Workers Association of Republican National Committee. Later Australia. 78 4f Remarks at the "Help Korea" Trains Ceremony. April 9, I 954 FIRST OF ALL, I think I may speak for the people of the United States in thanking you three gentlemen-and you, Mrs. Willkie-for your part in mobilizing the gifts of America to go to a country where they are so badly needed. I think I can speak, also, for the nation, in thanking the railroads for being so helpful and cooperative in showing such a sympathetic attitude toward this great need. I want to speak for just a moment about my pride in what the Army has done. The Army had a long and grueling experience out in that country, as did, of course, all our fighting forces. Yet so impressed were our soldiers by the great need out there, and by the gallantry of their ally, that they themselves contributed more than 25 million dollars. This was completely aside from all of the work they did in providing the know-how for reconstruction of schools, hospitals, roads, bridges-all the things that were destroyed in the war. So as they excite my pride, you people excite my thanks. I am certain that all of us are going to have our sentiments stirred very deeply in this country by your efforts. I am sure the response will be everything that you expect. 395

Page  396 Public Papers of the Presidents Now to each of you-good luck. NOTE: The President spoke in the Rose Trains campaign, Philip A. Hollar, Vice Garden at 2:30 p.m. In the opening President of the Association of American paragraph he referred to Dr. Howard A. Railroads, and Mrs. Wendell L. Willkie, Rusk, President of the American Korean National Chairman of the Women's DiviFoundation, Henry C. Alexander, Na- sion of the American Korean Foundation. tional Chairman of the Help Korea 79 qI Citation Accompanying Medal of Honor Presented to Benjamin F. Wilson. April I 0, I 954 THE PRESIDENT of the United States of America, authorized by Act of Congress March 3, I863 has awarded in the name of The Congress the Medal of Honor to FIRST LIEUTENANT (THEN MASTER SERGEANT) BENJAMIN F. WILSON, UNITED STATES ARMY for conspicuous gallantry and interpidity at the risk of his life above and beyond the call of duty in action with the enemy: Lieutenant Wilson, Infantry, United States Army, a member of Company I, 3ISt Infantry Regiment, 7th Infantry Division, distinguished himself by conspicuous gallantry and indomitable courage above and beyond the call of duty in action against the enemy near Hwach'onMyon, Korea, on 5 June I95I. Company I was committed to attack and secure commanding terrain stubbornly defended by a numerically superior hostile force emplaced in well-fortified positions. When the spearheading element was pinned down by withering hostile fire, he dashed forward and, firing his rifle and throwing grenades, neutralized the position denying the advance and killed four enemy soldiers manning submachine guns. After the assault platoon moved up, occupied the position and a base of fire was established, he led a bayonet attack which reduced the objective and killed approximately twenty-seven hostile soldiers. While friendly forces were consolidating the newly-won gain, the enemy launched a counterattack and Lieutenant Wilson, realizing the imminent threat of being overrun, made a determined lone-man charge, killing seven and wounding two of the enemy, and routing the remainder in disorder. After the position was organized, he led an 396

Page  397 Dwight D. Eisenhower, 1954 ( 80 assault carrying to approximately fifteen yards of the final objective, when enemy fire halted the advance. He ordered the platoon to withdraw and, although painfully wounded in this action, remained to provide covering fire. During an ensuing counterattack, the commanding officer and first platoon leader became casualties. Unhesitatingly, Lieutenant Wilson charged the enemy ranks and fought valiantly, killing three enemy soldiers with his rifle before it was wrested from his hands, and annihilating four others with his entrenching tool. His courageous delaying action enabled his comrades to reorganize and effect an orderly withdrawal. While directing evacuation of the wounded, he suffered a second wound, but elected to remain on the position until assured that all of the men had reached safety. Lieutenant Wilson's sustained valor and intrepid actions reflect utmost credit upon himself and uphold the honored traditions of the military service. DWIGHT D. EISENHOWER NOTE: The President presented the medal Base at I I:30 a.m. on September 7, I954, to Lieutenant Wilson at Lowry Air Force in the presence of relatives and friends. 80 oJ Statement by the President on the Death of Senator Griswold of Nebraska. April 12, I954 I WAS SHOCKED to hear the news of the sudden and tragic passing of Dwight P. Griswold. As Governor of Nebraska, Chief of the American Mission for Aid to Greece, and as a member of the United States Senate, Senator Griswold was a devoted public servant and a distinguished legislator. Although he had served in the Senate less than two years, his long experience in government made him a valuable member of the Upper House; one whose advice and counsel were widely sought. The nation can ill afford to lose the services of such a fine American as Dwight P. Griswold. 397

Page  398 Public Papers of the Presidents 8 iI 4 Memorandum to the Administrator, Housing and Home Finance Agency, Directing Him To Take Custody of the Records of the Federal Housing Administration. April 12, I954 Memorandum for: The Administrator Housing and Home Finance Administrator In order to facilitate the investigations which are being conducted by the Executive Branch of the Government and any other actions necessary or proper to insure the fidelity of operations under the National Housing Act, you are hereby authorized and directed to take custody forthwith of all files and records of the Federal Housing Administration, both in Washington and the field, pertaining to Title I and Section 6o8 of the National Housing Act, and such other files and records as you find proper for such purposes. DWIGHT D. EISENHOWER NOTE: On April i6 a White House re- the President had similarly directed all lease stated that the President had di- agencies to assist in any investigations by rected all appropriate agencies to coop- committees of the Congress into FHA erate fully in the investigation of the activities in the field of small property Federal Housing Administration being improvement insurance and the financconducted by Albert M. Cole, Adminis- ing of privately-owned rental housing trator of the Housing and Home Finance projects. Agency. The release further stated that 82 eJ Message to the King of Laos on the both Anniversary of His Accession to the Throne. April I 5, I 954 [ Released April I5, I954. Dated April 14, 1954] His Majesty Sisavang Vong King of Laos Luang Prabang, Laos It is an honor to send personal greetings to Your Majesty on the fiftieth anniversary of your accession to the throne. I wish at the same time to 398

Page  399 Dwight D. Eisenhower, I954 (l 83 express my hope that the people of Laos will continue for many years to benefit from your wise and courageous leadership which has been so vital a factor in the inspiring defense of your Kingdom against foreign aggression. DWIGHT D. EISENHOWER NOTE: This message was released at Augusta, Ga. 83 4e Exchange of Messages Between the President and the President of France and the Chief of State of Viet-Nam Concerning the Defenders of Dien Bien Phu. April i6, 1954 IN COMMON with millions of my countrymen, I salute the gallantry and stamina of the Commander and soldiers who are defending Dien Bien Phu. We have the most profound admiration for the brave and resourceful fight being waged there by troops from France, Vietnam, and other parts of the French Union. Those soldiers, true to their own great traditions, are defending the cause of human freedom and are demonstrating in the truest fashion qualities on which the survival of the free world depends. I would be grateful if you would convey to the Commander of the gallant garrison of Dien Bien Phu this expression of my admiration and best wishes. DWIGHT D. EISENHOWER NOTE: Identical messages were sent to President Coty of France and to the Chief of State of Viet-Nam, Bao Dai. President's Coty's reply follows: I have transmitted without delay, to the fighting men of Dien Bien Phu and to their chiefs the message you sent to me. The Expeditionary Corps and the National Armies of the Associated States are fighting in Indo China not only for the safeguard and the independence of the Associated States but also for the common ideal adopted by the whole free world, as our American friends know so well. Our soldiers will proudly welcome this testimony by the former Commanderin-Chief, who led the allied troops to victory in the fight against oppression. RENE COTY The reply from the Chief of State of Viet-Nam follows: At moment when all who here participate in battle for dignity of man are bound by anxiety and animated by hope your message is a precious comfort. The moving battle of Dien Bien Phu symbolizes the determination of communism to impose its rule without regard for 399

Page  400 (1 83 Public Papers of the Presidents the suffering of the people. Also opens given them by the great American nation all eyes to reality of force and wills which address to it the expression of their gratirefuse to bow before the Red despotism. tude and friendship. Before this dramatic circumstance, the BAo DAI Vietnamese people unite in determination The messages were released at Augusta, and recognizing the disinterested aid Ga. 84 4T Statement by the President Regarding Relationships With the Proposed European Defense Community. April i 6, I 954 AS THE TIME APPROACHES for historic decision on the remaining measures required to put into effect the European Defense Community Treaty, it is appropriate for me to state clearly the United States position on the relation between the European Army and the European Community on the one hand, and the North Atlantic Treaty Organization and the broader Atlantic Community on the other hand. The essential elements of this position, which have been discussed with leaders of both political parties in the Congress, may be simply stated. The United States is firmly committed to the North Atlantic Treaty. This Treaty is in accordance with the basic security interests of the United States and will steadfastly serve these interests regardless of the fluctuations in the international situation or our relations with any country. The obligations which the United States has assumed under the Treaty will be honored. The North Atlantic Treaty has a significance which transcends the mutual obligations assumed. It has engendered an active practical working relationship among the Atlantic nations. Through the North Atlantic Treaty Organization, the United States and its allies are working to build the concrete strength needed to deter aggression and, if aggression occurs, to halt it without the devastation or occupation of any NATO country. These nations are also seeking to make the Atlantic Alliance an enduring association of free peoples, within which all members can concert their efforts toward peace, prosperity, and freedom. The European Defense Community will form an integral part of the Atlantic Community and, within this framework, will ensure intimate and durable cooperation between the United States forces and the forces of the European Defense Community on the continent of Europe. I am 400

Page  401 Dwight D. Eisenhower, 1954 q 84 convinced that the coming into force of the European Defense Community Treaty will provide a realistic basis for consolidating Western defense and will lead to an ever-developing community of nations in Europe. The United States is confident that, with these principles in mind, the Western European nations concerned will proceed promptly further to develop the European Community through ratification of the European Defense Community Treaty. When that Treaty comes into force the United States, acting in accordance with its rights and obligations under the North Atlantic Treaty, will conform its actions to the following policies and undertakings: ( ) The United States will continue to maintain in Europe, including Germany, such units of its Armed Forces as may be necessary and appropriate to contribute its fair share of the forces needed for the joint defense of the North Atlantic area while a threat to that area exists, and will continue to deploy such forces in accordance with agreed North Atlantic strategy for the defense of this area. (2) The United States will consult with its fellow signatories to the North Atlantic Treaty and with the European Defense Community, on questions of mutual concern, including the levels of the respective Armed Forces of the European Defense Community, the United States and other North Atlantic Treaty countries to be placed at the disposal of the Supreme Commander in Europe. (3) The United States will encourage the closest possible integration between the European Defense Community forces on the one hand, and United States and other North Atlantic Tre