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The original documents are located in Box 3, folder "Appalachian Regional Commission"
of the James M. Cannon Files at the Gerald R. Ford Presidential Library.
Copyright Notice
The copyright law of the United States (Title 17, United States Code) governs the making of
photocopies or other reproductions of copyrighted material. Gerald Ford donated to the United
States of America his copyrights in all of his unpublished writings in National Archives collections.
Works prepared by U.S. Government employees as part of their official duties are in the public
domain. The copyrights to materials written by other individuals or organizations are presumed to
remain with them. If you think any of the information displayed in the PDF is subject to a valid
copyright claim, please contact the Gerald R. Ford Presidential Library.
[oct-1975]
A RESOLUTION FROM A MEETING OF
THE PRESIDENT OF THE UNITED STATES
AND
THE APPALACHIAN REGIONAL COMMISSION
A RESOLUTION Concerning Federal/State Cooperation in the
Appalachian Region to Achieve National Energy
Goals
Recognizing that the Nation has set a goal of achieving an
acceptable level of energy independence, and must necessarily turn once
again to Appalachia's coal and other natural resources in order to meet that
goal;
Recognizing that Appalachia's rich natural resources have been
exploited to fuel the Nation's industrial growth in the past without providing
for the Region's development to enable its people to fairly share in the
Nation's resultant prosperity, or to meet the problems of an environment
scarred by intensive mining activity;
Recognizing that to sustain the massive acceleration in coal
production needed in the Region will require the development of roads,
housing, schools and other community facilities and programs;
Recognizing that limited public revenues can never meet all
public needs and that current economic conditions, the necessity to
control inflation, and declining tax revenues, mandate, more than ever,
that the most efficient investment must be made of limited public funds;
GERALD OF.
Digitized from Box 3 of the James M. Cannon Files at the Gerald R. Ford Presidential Library
-2-
Recognizing that all investments of public funds -- local,
State and Federal -- must be coordinated for maximum effectiveness; and
Recognizing that the unique State/Federal partnership process of
the Appalachian Regional Commission assures participation at the local level
and provides for the reconciliation of Federal, State and local interests and
the formulation of mutually agreed upon and supported policies and plans;
and recognizing that the process will produce development strategies basic
to an orderly scheduling of public investments, targeted to best meet
priority needs for public infrastructure and programs required to stimulate
private investment in the Region;
NOW, THEREFORE, BE IT RESOLVED THAT
(1)
The Appalachian Regional Commission recognizes the
critical role of the Region in meeting national energy goals. To help the
Region carry out this role, the Commission commits itself to revise its
development strategies, reorder priorities, and reprogram available funds,
to give higher priority to energy-related public investments and to provide
for the Region's energy work force while at the same time protect its
environment.
GERALO, FORD LIBRARY
-3-
Particularly, the Commission commits highest priority to
accelerating construction of those Appalachian development highways
and roads essential to the transportation of energy resources and the
movement of the energy work force.
(2) The Commission expresses appreciation to the President for
his endorsement of the Appalachian Regional Development Program and
for his recommendation of its four-year extension and asks the Admini-
stration to join again in urging the Congress to expedite enactment of
final legislation.
(3)
The Commission requests that the President instruct the
Domestic Council to work with the Appalachian Regional Commission
to review relevant Federal programs to the end that policies affecting
these programs and their actions within the Region may be revised and
directed to support the kind of future development in Appalachia which
reflects the values of the people who live there. Special attention
shall be given to eliminating the duplication of planning requirements
in economic development programs.
The goal that can unite regionwide development action in both
the regional and national interest is to manage the opportunities inherent
in increased energy production to allow the Region's people to achieve
for themselves a stable and diversified economy and a sound physical
and social environment.
FORD & LIBRARY GERALD
THE appalachian REGIONAL COMMISSION
1666 CONNECTICUT AVENUE
WASHINGTON, D.C. 20235
OFFICE OF
October 3, 1975
FEDERAL COCHAIRMAN
MEMORANDUM
FORD s LIBRARY GERALD
FOR:
Mr. Patrick Delaney
Assistant Director, Domestic
Council
The White House
FROM:
Donald Federal W. Cochairman Whitehead Dm
SUBJECT:
Briefing for the President Mid-Appalachia Conference and
his Meeting with the Appalachian Regional Commission,
October 7, 1975.
A. Public Conference.
The draft background paper delivered to your office yesterday is, of
course, the basic source document for discussion of the Appalachian
Region and its problems. This memorandum cannot substitute for that
document. On the other hand, I appreciate the opportunity to identify
some of the troublesome questions which might be asked of the President
during the public Conference or during the Appalachian Regional
Commission meeting:
1. "Why did the President veto the surface mining regulation bill?"
The President is committed to meeting the Nation's energy
needs with due regard to the necessity for protecting our
environment. He and members of his Administration have made
clear that the President supports the principle of surface mining
regulation. On the other hand, after long and fruitless negotia-
tions with the Senate and House Interior Committees, it proved
impossible to agree on all details.
2. "Where does the President stand on legislation to aid ex-miners
who suffer from Black Lung?"
The Administration supports the legislation shifting the
burden of providing Black Lung benefits from the public taxpayer
to the coal companies. Millions of dollars are now being paid
out by the Social Security Administration every month and the
Ford Administration is proud for having been able to expedite
the processing of applications for such benefits. However, it
Mr. Patrick Delaney
Page 2
GERATE FORD LIBRARY
October 3, 1975
must be recognized that to assume without medical evidence
that persons who have worked a certain amount of time under-
ground automatically qualify for Black Lung disability pay-
ments (as some have proposed) would bankrupt the Treasury.
Countless miners have been able to establish through medical
evidence their entitlement to these payments and future
claimants ought to meet the same reasonable tests.
3. "I read in the papers about roads, bridges, schools, hospitals,
water lines and sewerage treatment plants having been funded
at least in part by the Appalachian Regional Commission. But
these things help those who already have. They do not benefit
people who live up the holler like me. Why can't the Appala-
chian Regional Commission do something directly for poor
people?"
The Commission is not a poverty agency nor is it running
a welfare program. Its mission is to promote the economic
development of Appalachia by guiding the capital investment in
public works and infrastructure which will make the Region
more attractive to tax-paying, good wage-paying, stable
industry. As the Commission discharges this responsibility,
all residents of the Region will benefit. To divert Commission
funding into a poverty or welfare program would overwhelm its
budget and deny the Region the capital investment it needs to
attract private sector commitments which are the key to its
long-range development.
4. "Every time I go to a meeting on Appalachia, I see only bankers,
lawyers, and politicians. If you are truly interested in the
problems of the poor, why don't you include them in your
conferences?"
The President is aware of the need to get input from a
representative sampling of the public. To this end, he has
asked the Commission on Religion in Appalachia (CORA) to
identify persons who could not otherwise afford to attend
this conference and to make the necessary arrangements for
their transportation, room, board, and registration. Arrange-
ments were made for several score of such persons through a
grant provided to CORA by the Appalachian Regional Commission.
Mr. Patrick Delaney
Page 3
October 3, 1975
5. "I am an unpaid citizen director of the Big Sandy Development
District in East Kentucky--a multi-county planning and develop-
ment agency which has been supported by grants from EDA, HUD,
OEO and ARC. Each of these agencies has different requirements
for membership on the board of directors. Why is this so, and
what can you do about it?"
You are correct that Congress has enacted legislation
which directs different agencies to insist upon different
criteria for the administration of their respective programs.
This lack of consistency causes great confusion and waste of
energy by citizens like you who are willing to take the time
to participate in government. Congress ought to examine the
operations of sub-state districts not only from the point of
qualifications for board members, but also from the point of view
of overlapping responsibilities, functions and jurisdictions.
6. "TVA has raised its rates to electricity consumers each and
every month for twelve consecutive months. What do you think
of this and what will you do about it?"
TVA has made a great contribution to the economic well-
being of a large part of our Nation and it can be fully proud
of this record. But I am concerned about recent evidence
that we need to do better (see answer to number 7).
7. "You have nominated Mr. James Hooper of Mississippi to serve
on the board of TVA. Mr. Hooper's record is questionable and
I hear the Senate Public Works Committee may not confirm him.
Will you withdraw Mr. Hooper's nomination?"
(I do not know the extent to which the President will wish
to defend TVA or express public criticism towards it. Nor
do I know to what extent he may wish to defend Mr. Hooper.
The President might review his position both on TVA generally
and Mr. Hooper personally as questions about both are likely.)
8. "Officials of the Interior Department and Park Service have
been talking about closing the Great Smoky Mountain National
Park to through-traffic. They have complained too many tourists
cross the park between North Carolina and Tennessee. I own a
store in Gatlinburg, and would be put out of business should the
park be closed to through-traffic. What is the policy of your
Administration on this issue?"
GERALD FORD LIBRARY
Mr. Patrick Delaney
Page 4
October 3, 1975
(This is a "hot" issue and could be finessed on the
grounds that it is primarily of local significance and
therefore has not come to the President's attention.
On the other hand, it might be an opportunity for the
President to indicate that "the bureaucrats have dropped
the ball on this one. I firmly believe our national
parks should be available for all the motoring public
as well as those hearty souls who want to back-pack into
unspoiled wilderness. We must explore ways to guarantee
the widest use of our national parks while at the same
time preserving them from abuse and excessive demands.")
9. "The National Flood Insurance legislation hurts Appalachia
because most of its land flat enough to be developable is on
the flood plain. Our communities cannot afford the required
insurance coverage and our citizens can't afford to flood-
proof their buildings or the extra cost of building on steep
slopes to get off the flood plain. This legislation makes
development much more costly and therefore puts Appalachia at
a competitive disadvantage when trying to attract new industry
and create jobs. HUD has been vigorously implementing this
legislation and we can't get them to listen to our problem which
must exist in other mountainous areas of the country as well.
Will you support a six or 12-month delay in the effective date
of this program? Time is needed to assess the full impact of
this legislation. Would you support a program that would pro-
vide federal assistance to meeting the additional costs that
this law will create?"
(I don't know what the latest Administration view is on
this issue. Costly as the legislation may be, it is less
costly than cleaning up flood disasters and rebuilding on the
same flood plain communities two and three times every 50 or
60 years. On the other hand, the President might indicate his
willingness to ask HUD to give full attention to these concerns
and for a full White House study of this question in all its
aspects.)
FORD
Mr. Patrick Delaney
Page 5
711
October 3, 1975
B. Appalachian Regional Commission Meeting.
1. Governor Moore of West Virginia may present the case for more
highway money. Specifically, he may ask for mileage to be added to the
Appalachian Highway Development System.
The President might reply that if he concurs in the Commission's
pending budget request, he will be accelerating its highway program by
$40 million in Fiscal 1977 which is about all that he could reasonably
be expected to do.
Governor Moore might ask whether the President would find
acceptable the new highway construction authorizations contained in the
Appalachian extension bill passed by the Senate. There is no Adminis-
tration policy on that question. I have discussed it with OMB and
recommended the Senate bill as a fair compromise between the Administra-
tion bill and the bill passed by the House which would take our highway
program authorizations immediately from its present $185 million level to
$300 million for Fiscal 1977, 1978, 1979 and 1980, The Senate bill would
provide no new authorizations for Fiscal 1977, move to $250 million in
Fiscal 1978 then go to $300 million in 1979 and 1980. The President may
wish OMB guidancé on this one.
2. Governor Rhodes of Ohio frequently has used the ARC as a sounding
board for demanding heavy new expenditures for the exploration for Devonian
shale gas and the development of technologies to make its use economically
feasible.
The President might note that ERDA would be asked to re-examine
its priorities to determine whether too much emphasis has been given for
long-range research into sophisticated energy sources (solar) and thereby
placing insufficient emphasis on the immediate need for applied research
on such questions as removing sulfur from coal and tapping known reserves
of Devonial shale gas. Congress is currently considering increasing ERDA's
authorization for Devonian shale gas exploration and development over and
above ERDA's regular research and development program.
3. Governor Shapp of Pennsylvania is not expected to attend, but if
he does, can almost certainly be expected to complain about the prospect
of abandonment of rail service in the Northeast as contemplated by the
United States Railroad Association's plan.
4. Governor Carey of New York is not expected to attend, but if he
does will most certainly make some mention of New York City's financial
crisis.
FORD
Mr. Patrick Delaney
Page 6
October 3, 1975
5. Governor Carroll of Kentucky might support Governor Moore's
request for more road money by pointing out the need for coal-haul roads
to produce the Nation's energy.
Again the President might indicate a willingness to accelerate
to a reasonable extent the Appalachian Development Highway System, but he
might distinguish construction of that network of major, limited access
highway from the kind of county coal-haul road Governor Carroll advocates.
The President might very well point out that State and local government
must be willing to tax coal companies sufficiently to secure the revenues
to maintain the roads that coal producers use. The President might point
out that although Kentucky has done a good job leveling a severance tax
on coal and returning most of such revenues to its counties, the counties
have frequently used this money for such things as parks and recreation
areas rather than for basic public works like roads. Local and State
governments must discharge their appropriate responsibilities and can't
expect the Federal government to assume all obligations.
Governor Carroll may also speak to the need for Federal agencies
to be more responsive to the views of States. This issue is the essence
óf the proposed resolution now being discussed by some of the governors
for possible action at the Commission meeting with the President. It is
my view that. the President should indicate his strong support for mechan-
isms that provide input from State and local governments to the Federal
decision-making process. ARC is such a mechanism and provides a forum
for direct citizen involvement, as well, through local development dis-
tricts. Since any action of the Commission requires the approval of the
Federal Cochairman, the Administration can provide a forum for negotiating
with local and State interests, yet still protect itself against unreason-
able demands by withholding the consent of the Federal Cochairman, when
necessary.
Governor Carroll completed his term as States' Cochairman of
the Commission last June. In that role he testified before both House
and Senate Public Works Committees on the Administration bill to extend
the Commission. His testimony was well received. The Senate Public
Works Committee, on its own initiative, amended the portions of our Act
dealing with the organization and administration of the Commission. The
thrust of the Senate amendments was to require more personal involvement
by governors rather than leave Commission affairs to lower echelon State
employees. Governor Carroll has taken a position that since governors
do not have time to personally follow the Commission's day-to-day opera-
tions, the Senate amendments would in effect, "federalize" the Commission
GERALD FORD LIBRARY
Mr. Patrick Delaney
Page 7
October 3, 1975
by providing no counter to the daily presence of the President's
Federal Cochairman. Governor Carroll has said he believes enactment
of this portion of the Senate Appalachia bill would negate the balance
of the Federal-State partnership which is the essence of its concept.
My view is that Governor Carroll mis-reads the situation.
The Appalachian program cannot operate effectively without involvement
of the governors and without utilizing fully the clout governors have
with State bureaucracies not always willing to coordinate their activi-
ties with each other or with government at either the local or Federal
level. The approximately $300 million provided annually to the 13
State members through the Appalachian Regional Commission ought to warrant
the attendance by governors at three or four Commission meetings a year
and the interim attention by cabinet-level designees between Commission
meetings. The Senate amendments would increase rather than diminish
genuine State participation. (The Senate was careful to note that the
States might maintain a full-time liaison officer with the Commission
but insisted his role be advisory rather than one to which governors
could delegate voting authority.)
Governor Carroll might also wish to comment on the negative
impact increased coal production will have on Central Appalachia's physical
and social environment without adequate assistance from both the public and
private sectors.
6. Governor Mandell of Maryland has expressed interest in no one
particular aspect of the Commission's program.
7. Governor Holshouser of North Carolina is concerned with the heavy
investment that will be required in roads, schools, hospitals, etc., to
care for sudden population increases. He is also particularly concerned
about threatened natural gas shortages for North Carolina industry.
8. Governor Edwards of South Carolina will be traveling in Europe
and unable to attend our meeting.
9. Governor Busbee of Georgia may comment critically on what he
sees as a myriad of uncoordinated governmental responses to the energy
crisis from a host of different agencies at both the State and Federal
levels.
10. Governor Godwin of Virginia has a strong record of acting to
limit State budget deficits. On the other hand, he has not yet articulated
this position as a member of the Commission.
FORD is LIBRARY REPALO
Mr. Patrick Delaney
Page 8
October 3, 1975
11. Governor Wallace of Alabama has attended Commission meetings
but has said very little to us.
12. Governor Waller of Mississippi leaves office in June, prevented
by State constitution from succeeding himself. He currently represents
the governor members of the Commission as States' Cochairman (a title
designed to suggest the partnership nature of the Commission as there
is both a States' Cochairman and a Federal Cochairman). Governor Waller
has been an active member and it would not be inappropriate for the
President to recognize this fact publicly.
13. Governor Blanton of Tennessee is, of course, our host governor
and will introduce the President at the Commission meeting (see attached
agenda). If Governor Blanton speaks to a particular need for East
Tennessee, he will probably talk about the problems of securing a new
medical school to be located in Johnson City in connection with the VA
Hospital there. Former Governor Dunn and many of his fellow Republicans
vigorously opposed the Johnson City site, preferring location of the
school at the University of Tennessee in Knoxville. This is a dispute
between two sections of Tennessee and involvement in the contest would be
a no-win proposition for the President.
Attachment
Agenda
FORD if LIBRARY GERALD
file
THE WHITE HOUSE
WASHINGTON
October 6, 1975
MEETING WITH THE APPALACHIAN REGIONAL COMMISSION
Tuesday, October 7, 1975
Knoxville, Tennessee
5:20 p.m. (1½ hours)
From: Jim Cannon
I. PURPOSE
To fulfill the request of the Commission.
FORD i LIBRARY GERALD
II. BACKGROUND, PARTICIPANTS AND PRESS PLAN
A. Background
The Appalachian Regional Commission, consisting of all of West Virginia
and parts of 12 other States of the Appalachian Mountain area (New York,
Pennsylvania, Ohio, Maryland, Virginia, Kentucky, North Carolina,
South Carolina, Georgia, Alabama and Mississippi) is holding a regular
meeting which will open with your participation. The region covered by
this Commission contains all or part of 56 Congressional Districts, and
is represented by 26 Senate seats which gives the region substantial
political impact.
The Administration has sent to Congress a bill calling for a four-year
extention of the Appalachian Regional Commission--the strongest en-
dorsement the Commission has received from any Administration since
1965.
The Commission will express appreciation for your support and will be
considering a resolution concerning Federal-State cooperation in the
Appalachian Region to achieve national energy goals. This resolution will
be voted on affirmatively by the Federal Co-chairman, Donald Whitehead,
who is a Presidential appointee and to that extent will be concured in by
the Administration. The resolution recognizes the need to develop the rich
- 2 -
natural resources of the area and asks for your help in making an
adequate provision in the FY '77 Budget for Appalachian development
programs, particularly highways. This is likely to be considered
during your presence in the meeting and it is recommended that you
agree to give serious and thorough consideration to the resolution
without a firm committment at this time.
B.
Participants
See Tab A.
GERALD FORD LIBRARY
C.
Press Plan
Press pool and photo coverage at the beginning of the meeting. Admin-
istration participants and Governors to brief following the meeting.
III. TALKING POINTS
1.
Format
You will greet each of the participants on entering the room and;
Then Governor Blanton (D), Tennessee (Host) will make brief
welcoming remarks.
Then Governor Waller (D), Mississippi will as State Co-chairman
make opening remarks.
Then Donald Whitehead, Federal Co-chairman will make program
remarks on the progress of the Commission to set the stage for your
remarks.
Governor Waller will introduce the President.
2.
Presidential Talking Points
As you know, I have asked Congress to extend the life of this
Commission for four years.
The level of funding has been steady in FY'75 and FY'76 at approx-
imately $340 million (projected). This is up from outlays of $293
million in FY'74. The Governors will want to ask for greater funding,
but such committments should await the regular budget process.
- 3 -
The Act which created the Appalachian Regional Development
program envisioned:
1. The Commission developing plans and programs which
reflected the desire and concerns of the States and the
people. I share those goals.
2. To look at the resources of the region in the context of existing
programs at all levels of government and seek to increase their
effectiveness. We all share this goal.
3. To encourage the private sector to develop industrial, commercial
and recreational projects and to serve as a focal point for coor-
dinating Appalachian programs. Again, we share your goals.
But, goals are only a starting point. Having common goals means
we ought to be able to find reasonable means for their accomplishment.
I want to see the Commission continue and to succeed.
I want to do all we can, with your help and not one penny more in
Federal money than it takes to do the job.
The Commission operates its $300 million annual program with less
than 125 people. Its total administrative and other staff costs are
slightly over two percent of program costs. Its objectives, strategies
and priorities cannot be determined without the consent of its Gov-
ernor members, and no plan, project or program can be approved
without their support.
At the conclusion of your opening remarks, you should turn the
meeting back to Governor Waller of Mississippi.
FORD LIBRARY & GERALD
PARTICIPANTS
Members Confirmed (Seated at the table)
(Not at table)
Governor Ray Blanton (D), Tennessee (Host)
Tom Benson
Governor William Waller (D), Mississippi (Co-chairman) W. Headricks
Governor James Holshouser (R), North Carolina
Edward Deckard
Governor Julian Carroll (D), Kentucky
Dr. Dee Akers
Governor Arch Moore (R), West Virginia
B.L. Coffindeffer
Governor James Rhodes (R), Ohio
Paul Baldridge
Governor George Busbee (D) Georgia
James McIntyre
Donald Whitehead, Federal Co-chairman
Orville Lurch
Governors or Alternates
(Not at table)
Governor George Wallace (D), Alabama
R.C. Bamberg
Governor Marvin Mandel (D), Maryland
William Pate
Governor James Edwards (R), South Carolina
John Lafitte
Governor Mills Godwin (R), Virginia
Lynn Curry
Governor Milton Shapp (D) , Pennsylvania
Edward Simon
Governor Hugh Carey (D), New York
Leonard Schwartz
*Alternates are full Commission members
ARC Staff (Not at table)
Harry Teeter, Exec. Dir.
John Whisman, State Rep.
Administration Participants
Donald Rumsfeld
Director of OMB Lynn
William Seidman
Frank Zarb
FORD LIBRARY is 9ERALD
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FORD i LIBRARY GERALD
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