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1975/03/11 - Donald Rumsfeld
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The original documents are located in Box 43, folder "1975/03/11 - Donald Rumsfeld" 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 Gerald Ford donated to the United States of America his copyrights in all of his unpublished writings in National Archives collections.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. Digitized from Box 43 of the James M. Cannon Files at the Gerald R. Ford Presidential Library MEETING WITH DONALD RUMSFELD Tuesday, March 11, 1975 3:00 p.m. ISSUES THE WHITE HOUSE WASHINGTON February 27, 1975 MEMORANDUM FOR: THE VICE PRESIDENT THROUGH: JIM CAVANAUGH FROM: MIKE DUVAL SUBJECT: Your Meeting with Secretary Morton There are several matters that I believe you should be aware of prior to your meeting with Secretary Morton relating to his relationship to White House and Executive Office staff and his role in energy policy. Relationships between Interior and OMB/Domestic Council. Several controversial issues have strained relationships between Interior and Domestic Council/OMB. During the past year, two issues in particular have led Secretary Morton to conclude that his positions in public and with the Congress have been undermined by "The White House. " The two issues involved are: A. Land Use Legislation. Former President Nixon proposed land use legislation in 1971 and 1973 as a key element of the Administration's environmental program. The Senate passed bills in both the 92nd and 93rd Congress. During House consideration of the bill last year, strong opposition developed from many outside interests, including governors of western states, who feared the bill was the first direct step (in addition to Clean Air and Water Pollution laws) to inject the Federal Government in local land use decisions. At this point, President Nixon decided to stop pushing the Administration's original proposal. John Rhodes was notified the Administration agreed that the land use bill then before the House posed a threat to traditional American beliefs about the sanctity of private property and would permit Federal control over State and local land use policies and decisions. Secretary Morton recommended strongly against with- drawing Administration support for land use legislation. As far as our current position is concerned, President Ford has asked for a review of issues involved before he decides whether or not to propose a new bill. - 2 - B. Strip Mining. President Nixon also proposed strip mining legislation in 1971 and 1973 as a part of his environmental program. A bill was passed by the Senate in September 1973. After long debate a more rigourus bill was passed by the House in July 1974. During House consideration, it became clear that the bill was unacceptable to Commerce, Treasury and OMB, because of significant adverse coal production impact and a number of other objectionable provisions (e. g., precedent-setting unemployment benefits). Interior Department had the lead in working with the Congress and Interior staff apparently had led members to believe that the bill, though objectionable, was acceptable to Secretary Morton. As the Congress was completing action on the bill in December, President Ford concluded that it should be vetoed. This, too, was embarrassing to the Secretary and he has described the matter as the second time that the White House had pulled the rug out from under him. He has been particularly critical of the Domestic Council staff role. A recent example illustrates the delicate situation. The President personally reviewed the issues and decided Administration position on a new bill (Issue paper at Tab A) which he transmitted to the Congress on February 6. Last Thursday, Congressman Phil Ruppe called Max Friedersdorf and indicated that he was getting very little help from Interior in supporting the President's bill. He indicated that he foresaw a repeat of the events of last year when the House passed bill was acceptable to Interior Department but not to others in the Administration. We worked with Interior Department, OMB and other agencies to get material to Phil Ruppe to defend the Admin- istration bill but this undoubtedly added to the strain between the Interior Department on the one hand and Domestic Council, OMB, and the Congressional Relations staff on the other. Secretary Morton's Energy Role. While the Secretary is the Chairman of the Energy Resources Council, nearly all the work of the Council is controlled by Frank Zarb, with principal staffing by the Federal Energy Administration. Recent actions in the energy area and (including most of the Administration's energy proposals) have had little Interior Depart- ment involvement. Recent new stories have drawn attention to the growing role of Frank and FEA and the lesser role of the Secretary. This situation could lead to strain between Secretary Morton and Frank Zarb. THE WHITE HOUSE WASHINGTON March 10, 1975 Frong Agnes Waldron TO FROM: SUBJECT: Jim Cannon Jun Presidential Positions Would you give me, in the President's words, his position on : attached 1. Extension of the Voting Rights Act. attached 2. Sharing with states revenue on oil taken from the Outer Continental Shelf. 3. The formation of a Consumer Protection Agency. No record. If part of these are immediately available, I would appreciate your sending them along and the rest could come later. JMC: jm CC Paul Theis 94 THE BUDGET FOR FISCAL YEAR 1976 profits tax proposal to reduce the consumption of these products and to reduce dependence on uncertain foreign energy supplies. This tax proposed to be offset by reductions in income taxes, and allowance for payments to low-income individuals, increased aid to State and local governments, and various Federal agencies. Most of this offsct can occur through the income tax system, but for those instance where it can not, the budget includes an allowance for energy tax equalization payments. Included in general operating programs are the analysis and de velopment of energy policy; the management and leasing of federall owned oil, natural gas, and coal resources; and uranium enrichment These activities are administered by the Federal Energy Administra tion, the Department of the Interior, and the Energy Research and Development Administration. The generation and marketing. of hydroelectric power is included under "Water resources and power. Negative outlays in 1974 result primarily from offsetting revenues for sales of uranium enrichment services. Outlays for operating program will total $498 million in 1976. In order to increase domestic energy production over the next 10 years, a program to prepare for leasing oil and gas lands in all new areas on the Outer Continental Shelf is being pursued, and a tentative schedule of sales has been drawn up. A decision to lease any area will be made only after the completion of environmental studies and impact statements and a determination that unacceptable adverse environmental impacts will not occur. Proceeds from this leasing are counted as undistributed offsetting receipts, and the estimates for them appear at the end of the budget. Uranium enrichment operations, which primarily provide fuel for civilian nuclear powerplants, must increase significantly in order: to meet future demands. The previously authorized expansion of the three existing enrichment plants of the Energy Research and Development Administration (ERDA) will continue. Legislation will be proposed to enáble ERDA to institute commercial pricing for uranium enrichment services. Outlays for uranium enrichment activities will be $738 million in 1976. Some provisions of the tax structure-known as tax expenditures also encourage the development and exploitation of energy and mineral resources. The two such provisions with the largest impact are the treatment of exploration and development costs (mostly for oil and gas) as current expenses rather than as capital investments, which estimated to reduce receipts by $1.4 billion in 1976; and the excess of percentage depletion over actual cost depletion (up to 50% of not income), a provision that applies to over a hundred minerals and energy sources and is estimated under current law to reduce 1976 Table 17. BUDGET OUTLAYS BY FUNCTION, 1966-1976 (in millions of dollars)-Continued Actual Estimate Function 1966 1967 1968 1969 1970 1971 1972 1973 1974 1975 1976 364 850 Revenue sharing and general purpose fiscal assist- ance: 851 General revenue sharing 6,636 6,106 6,176 6,304 852 Other general purpose fiscal assistance 242 288 311 365 451 488 531 586 640 857 946 Total revenue sharing and general purpose fiscal assistance 242 288 311 365 451 488 531 7,222 6,746 7,033 7,249 900 Interest: 901 Interest on the public debt 12,014 13,391 14,573 16,588 19,304 20,959 21,849 24,167 29,319 32,900 36,000 902 Other interest -728 -858 -822 -796 -992 -1,350 -1,267 -1,355 -1,247 -1,569 -1,581 Total interest 11,286 12,533 13,751 15,793 18,312 19,609 20,582 22,813 28,072 31,331 34,419 Allowances for: Energy tax equalization payments 500 7,000 Civilian agency pay raises 550 Contingencies 200 500 Total allowances 700 8,050 950 Undistributed offsetting receipts: 951 Employer share, employee retirement -1,447 -1,661 -1,825 -2,018 -2,444 -2,611 -2,768 -2,927 -3,319 -4,070 -3,888 THE BUDGET FOR FISCAL YEAR 1976 952 Interest received by trust funds -1,917 -2,275 -2,674 -3,099 -3,936 -4,765 -5,089 -5,436 -6,583 -7,769 -8,305 953 Rents and royalties on the Outer Continental Shelf -248 -637 -961 -428 -187 -1,051 -279 -3,956 -6,748 -5,000 -8,000 Total undistributed offsetting receipts -3,613 -4,573 -5,460 -5,545 -6,567 -8,427 -8,137 -12,318 -16,651 -16,839 -20,193 Total outlays 134,652 158,254 178,833 184,548 196,588 211,425 231,876 246,526 268,392 313,446 349,372 MEMORANDUM Federal funds 106,512 126,779 143,105 148,811 156.301 163,651 177,959 186,403 198,692 229,005 254,215 Trust funds 31,708 36,693 41,499 43,284 49,065 59,361 67,073 81,447 90,833 110,338 123,425 Interfund transactions -3,568 -5,218 -5,771 -7,547 -8,778 -11,586 -13,156 -21,325 -21,133 -25,897 -28,268 THE PRESIDENT. And Washington is on the quarter. MRS. BROOKS. Thank you, Mr. President. MRS. BROOKS. And Kennedy and Eisenhower. THE PRESIDENT. Congratulations. It is a great project, THE PRESIDENT. Well, congratulations to you. I think and it will contribute significantly to the Bicentennial. it is very significant as a part of the Bicentennial, and I MRS. BROOKS. I hope so. am sure John Warner is delighted to have this kind of THE PRESIDENT. John, thank you. MR. WARNER. Yes, Mr. President. Nice to see you all again. THE PRESIDENT. imagination, and action. NOTE: The exchange of remarks began at 1:25 p.m. in the Cabinet I can compliment you on not only the action but on the Room at the White House where Mrs. Brooks and Mr. Warner pre- effort to participate. I think it is wonderful, Mary. sented the President with first strikes of the newly designed Bicenten- nial coins. MRS. BROOKS. Thank you. MR. WARNER. It is one of the best competitions that has been held thus far in the Bicentennial. Q. Can you tell us which coin Kennedy is on? Gel. THE PRESIDENT. Kennedy is on the half dollar, and on Meeting With Coastal State Governors the back is Independence Hall. Washington is on the quarter, and the drummer boy is on the back. And the Text of the President's Remarks at the Meeting on Outer Moon and Liberty Bell is on the dollar with Eisenhower Continental Shelf Oil and Gas Development. on the back. November 13, 1974 Q. You say there will be 45 million of these sets? MRS. BROOKS. There will be 45 million silver ones we The imbalance between our Nation's demand for oil are allowed to make. We will only be able to make in the and gas and our domestic production of these resources is proof about 4 million a year. We hope to make them for one of the most serious problems we face. The rapid in- 2 years. But we are already getting volumes of orders. It crease in energy costs in the past years has been a major is tremendous. driving force behind today's inflation. Q. $15 a set, is that right? The essence of this problem is that while we produce MRS. BROOKS. Yes, for this proof set. about 11 million barrels per day, we consume about 17 Q. You said something about the uncirculated coins. million. Domestic demand is increasing, but domestic pro- MRS. BROOKS. The uncirculated silver ones will be $9. duction is dropping because most of our onshore oil fields THE PRESIDENT. Those are the ones that come in these are being depleted. paper rolls? We must adopt rigorous conservation measures, but it MRS. BROOKS. Yes. They won't be packaged as elabo- is clear that regardless of what conservation steps we take rately as this. and what eventual long-range energy policy we adopt, in THE PRESIDENT. How many participated in the com- the near term we must increase our domestic production petition for the designs? of oil and gas. MRS. BROOKS. We had almost a thousand designs come I believe that the outer continental shelf oil and gas in from men, women, and even schoolchildren. We have deposits can provide the largest single source of increased kept the schoolchildren's, and we are going to probably domestic energy during the years when we need it most. put those designs in the museum somewhere. They are ter- The O.C.S. can supply this energy with less damage to the ribly interesting. environment and at a lower cost to the U.S. economy than THE PRESIDENT. Do you recall who won the contest, any other alternative. We must proceed with a program in each? that is designed to develop these resources. Legitimate concerns have been expressed about O.C.S. MRS. BROOKS. Yes. This is a boy from Columbus, Ohio. leasing and development. Let me briefly address myself Dennis [R. Williams] to these concerns. THE PRESIDENT. I hope he didn't go to Ohio State. First, concern has been expressed that industry does [Laughter] not have the manpower and equipment necessary for ex- MRS. BROOKS. An art school. Sorry, I don't have a ploration and development of 10 million acres of O.C.S. Michigan winner for you. lands and that this could lead to the sale of leases at And Jack Ahr, who won the quarter, is from Arling- bargain prices. ton Heights, Illinois, and this one was from Minneapolis, We believe that industry can make the manpower and Minnesota [Seth G. Huntington]. equipment available. And I might note that although the Volume 10-Number 46 FORD 10 million acres has been a useful planning objective, we To assure that any spills that might occur do not cause are not wedded to this particular goal. Our primary objec- uncompensated harm, however, I have also asked Secre- tive is to produce oil and gas where we can do so safely. tary Morton and Chairman Peterson to prepare a pro- But, in any case, we will insure that leases are not sold posed comprehensive liability statute governing oil-spills. below fair market values. I have directed Secretary Mor- This bill will be ready for introduction in the next ton to insure that these objectives are attained. Congress. Second, concern has been expressed that we should not In summary, the resources of the outer continental shell lease any new areas of the U.S. continental shelf until the represent a potential contribution of major proportions to coastal States have completed detailed plans to accommo- the solution of our energy problem. I am confident that date the onshore impact of offshore production. concerns about leasing exploration and development of Coastal States have only begun to establish the mecha- the outer continental shelf can be addressed openly and nisms for coastal zone planning, and that activity must fairly, that planning can proceed in an orderly, coopera- proceed rapidly. But the steps needed now to prepare for tive way and the problems confronting us in opening new a leasing program need not await completion of these areas can be resolved. detailed plans by the States. The prolonged delay would I pledge the cooperation of my Administration in this only postpone the date when we will learn whether sub- task. stantial reserves can, in fact, be produced from our O.C.S. NOTE: The President met with the Governors at 5 p.m. in the Cabi- and would lengthen the time that we will have to rely on net Room at the White House. Attending the meeting were: the costly imported oil. Governors of Connecticut, Delaware, Louisiana, Maine, Massachu- Furthermore, the shoreside impact will not occur for setts, Mississippi, New Hampshire, and New Jersey; the Governors- elect of Maine, Georgia, and New York; the Lieutenant Governors several years following institution of a leasing program. of Maryland and Rhode Island; and the Lieutenant Governors-elect That period will enable State and local governments to of Alaska, Connecticut, Massachusetts, and South Carolina. prepare for the shoreside impact. To help insure effective, As printed above, this item follows the text of the White House press release. cooperative action, State and local officials will be asked to participate in the process of selecting tracts to be con- sidered for detailed environmental and resource study. In order to facilitate coastal State participation in this effort, I plan to request an additional $3 million in the National Association of Realtors current fiscal year for the coastal zone management pro- gram to accelerate State planning efforts. I have also The President's Remarks at the Association's directed Secretary Morton and Secretary Dent to consult Convention in Las Vegas, Nevada. with coastal Governors regarding any additional steps that November 14, 1974 might be required to plan adequately for onshore develop- ment associated with offshore leases that are actually President Doherty, President-elect Leitch, ladies and issued. gentlemen: Third, concern has also been expressed that our pro- It is truly a great privilege and a very high honor to posed leasing program cannot be conducted without unac-- have the opportunity of appearing before this conven- ceptable risks to the environment. We are taking the steps tion of the National Association of Realtors, and I thank necessary to reallocate additional funds during the current you from the bottom of my heart for your warm and fiscal year to strengthen our preleasing environmental as- friendly welcome. It is nice to be here. sessment and monitoring activities. At the outset, I wish to pay a very special tribute to If our studies show that development cannot occur in the members of the National Association of Realtors for a particular area without unacceptable risk, then we will all that you have achieved in the face of. a very, very not hold a lease sale. The step that must now be taken is serious and difficult economic environment. to begin the detailed studies to identify risks in specific You know, I always think it is a help, as a matter of areas to be considered for leasing. fact, when the complex problems we all deal with are We have made great strides in our O.C.S. safety pro- at least recognized in part by others, and sometimes this gram thus far, and we will work closely with the coastal happens in very strange ways. States so that they understand and have a part in the Two weeks ago, I went back to my hometown of Grand further development of regulations that govern these oper- Rapids, Michigan, for a rally in a tremendous college ations off their coast. fieldhouse. And just as I was coming into the building I also recognize the concern about oil spills. Our energy I heard the master of ceremonies ask the marching band and environmental experts have concluded that the great- to play one more selection, something that would be ap- est danger to our coasts from oil spills is not from offshore propriate for the President of the United States. So they production, but, instead, from the greatly expanded tanker played "Nobody Knows the Troubles I've Seen." traffic that would result from increasing imports. [Laughter] Volume 10-Number 46 PRESIDENTIAL DOCUMENTS: GERALD R. FORD, 1975 99 choices must be explained to the most important forum United Mine Workers of America there is-some 213 million Americans. Your help in just explaining the facts-we do not expect you to be preju- The President's Telegram to President Arnold R. diced one way or another-but if you can get the facts Miller on the Union's 85th Anniversary. out, this is vitally important to an honest dialog and effec- January 25, 1975 tive decisionmaking. I appreciate your concern by being here today. And I As the United Mine Workers of America marks its look forward to seeing you around the country, where I eighty-fifth anniversary, your members deserve the con- hope to be in the next several months. gratulations and gratitude of the American people. Thank you very much. Since the founding of your great union before the turn NOTE: The President spoke at 4:40 p.m. in Room 450 of the Old of the century, mine workers have contributed immeas- Executive Office Building to members of the Radio-Television News urably to the progress and economic welfare of all Amer- Directors Association who were attending a briefing by Administra- icans. The UMW has fought long and hard to advance tion officials on the President's energy and economic proposals. the overall status of American miners. And in doing so, it has helped to improve the well-being of all American workers. I welcome this opportunity to assure you that my Ad- National MIA Awareness Day ministration stands firmly behind your continuing efforts to bring about even greater improvements in the safety and welfare of miners. Proclamation 4342. January 25, 1975 As we reinforce our national effort to achieve an inde- By the President of the United States of America pendent fuel supply to heat our homes and run our indus- a Proclamation try, the coal your members mine will be more important than ever. January 27, 1975, marks the second anniversary of the Your union has my very best wishes on this proud mile- signing of the Paris Agreement ending United States com- stone in the annals of American labor history. bat involvement in Vietnam. Although the Agreement GERALD R. FORD contains specific obligations on accounting for the missing NOTE: The text of the telegram was made available by the White and the return of the remains of the dead, the communist House Press Office. It was not issued in the form of a White House authorities have failed either to provide this information press release. or to follow through on the return of the remains of our dead. Over 2400 Americans are still unaccounted for- some 900 of them still listed as missing, the remainder declared dead with their bodies never recovered. The families of these men continue to live with the anguish of Voting Rights Extension Bill uncertainty about the ultimate fate of these loved ones. The President's Letter to the Speaker of the House and Now, THEREFORE, I, GERALD R. FORD, President of to the President of the Senate Transmitting Proposed the United States of America, do hereby designate Mon- Legislation To Extend the Voting Rights Act of 1965. day, January 27, 1975, as National MIA Awareness Day, January 27, 1975 dedicated to the many Americans who remain missing or unaccounted for in Indochina, and to their families. I call Dear Mr. Speaker: (Dear Mr. President:) upon all Americans to join in voicing once again the clear, Enclosed for your consideration and appropriate refer- continuing commitment of the American people and their ence is proposed legislation entitled the "Voting Rights Government to seek the fullest possible accounting for Act Amendments of 1975." Americans missing in Southeast Asia and the return of This proposal would extend for an additional five the remains of those who died. years the basic provisions of the Voting Rights Act of IN WITNESS WHEREOF, I have hereunto set my hand 1965. These provisions, including the requirement that this twenty-fifth day of January, in the year of our Lord certain States and political subdivisions submit to the nineteen hundred seventy-five, and of the Independence United States District Court for the District of Columbia of the United States of America the one hundred or the Attorney General any changes in voting laws, will ninety-ninth. be subject to expiration after August 6, 1975. GERALD R. FORD The proposal would also extend for an additional five [Filed with the Office of the Federal Register, 10:09 a.m., years the provision which suspends the use of literacy January 27, 1975] tests and other similar prerequisites for voting in all states Volume 11-Number 5 100 PRESIDENTIAL DOCUMENTS: GERALD R. FORD, 1975 and subdivisions not subject to such suspension under the third week in March as National Poison Prevention section 4(a) of the 1965 Act. Week. The Voting Rights Act of 1965 has been an extremely Now, THEREFORE, I, GERALD R. FORD, President 0 effective statute. Since its enactment, substantial progress the United States of America, do hereby proclaim th has been made in safeguarding and furthering the right week beginning March 16, 1975, as National Poison Pre to vote. Nonetheless, our experience indicates the need to vention Week. extend once more the key sections of the Act. I invite all agencies and organizations concerned witl Sincerely, preventing accidental poisoning among our Nation's chil GERALD R. FORD dren to engage in activities that will speed our Nation NOTE: This is the text of identical letters addressed to the Honor- progress in protecting all our children against lasting ir able Carl Albert, Speaker of the House of Representatives, and to jury or death from accidental poisoning. the Honorable Nelson A. Rockefeller, President of the Senate. IN WITNESS WHEREOF, I have hereunto set my han The text of the draft bill was also included with the release. this twenty-seventh day of January, in the year of ou Lord nineteen hundred seventy-five, and of the Indepenc ence of the United States of America the one hundre ninety-ninth. National Poison Prevention GERALD R. FORD [Filed with the Office of the Federal Register, 5:22 p.m Week, 1975 January 27, 1975] Proclamation 4343. January 27, 1975 By the President of the United States of America a Proclamation Manual for Courts-Martial The future of America is in our children. For 13 years, Executive Order 11835. January 27, 1975 National Poison Prevention Week has been an annual landmark in the ongoing campaign to protect the young PRESCRIBING AMENDMENTS TO THE MANUAL FC children, our country's greatest resource, from the trage- COURTS-MARTIAL, UNITED STATES, 1969 (REVISE dies of childhood poisonings. EDITION) The average American home contains a growing vari- ety of labor-saving devices, chemical products, and medi- By virtue of the authority vested in me by the Unifor cines. We can be proud of the skill and initiative that Code of Military Justice (10 U.S.C., ch. 47), and have made this progress possible. Yet, every thoughtful President of the United States, I hereby prescribe ti citizen must be aware that these household products and following amendments to the Manual for Courts-Marti: drugs which ease our daily life, in many instances, are po- United States, 1969 (Revised edition), prescribed 1 tentially poisonous if used unwisely or stored so carelessly Executive Order No. 11476 of June 19, 1969. that small children can get to them. SECTION 1. The first paragraph within paragraph 34 Our challenge as educators, as parents, and as citizens is amended to read as follows: is to strive to reduce the toll of childhood poisoning "d. Witnesses. All available witnesses, including the through adequate programs of public education and in- requested by the accused, who appear to be reasonab formation. These programs should develop an aware- necessary for a thorough and impartial investigation W ness of the potential danger associated with many prod- be called and examined in the presence of the accuse ucts in the home environment. and if counsel has been requested, in the presence of t Since 1970, the Poison Prevention Packaging Act has accused and his counsel. Ordinarily, application for t contributed substantially to reducing the number of harm- attendance of any witness subject to military law W ful accidental intakes and subsequent injuries and fatal- be made to the immediate commanding officer of t ities among children under five. Poisoning reports for witness, who will determine the availability of the W aspirin, the product most frequently involved in child- ness. The Secretary of a Department may prescribe reg hood intake and deaths, have shown a marked decrease lations which permit the payment of transportati since requirements were established under the Act for expenses and a per diem allowance to civilians request child-resistant packaging. In order to give further recog- to testify in connection with the pretrial investigation nition and emphasis to the need to reduce this tragic toll, SEC. 2. Paragraph 53d(2) (a) is amended to read the Congress has by a joint resolution of September 26, follows: 1961 (75 Stat. 681), requested that the President of the "(2) Military judge alone. (a) General. A general United States annually issue a Proclamation declaring special court-martial to which a military judge has be Volume 11-Number 5 PRESIDENTIAL DOCUMENTS: GERALD R. FORD, 1975 Secretary of Transportation of this Nation in securing civil rights for all our citizens. It is an impressive if not a perfect record. Announcement of Intention To Nominate Many of the social and political changes Dr. King William T. Coleman, Jr. January 14, 1975 envisaged as a civil rights leader are now taken for granted. But progress is not counted by past success; we must con- The President today announced his intention to nom- inate William T. Coleman, Jr., of Philadelphia, Pa., to be tinually renew our commitment to the cause of justice Secretary of Transportation. He will succeed Claude S. and equality. Brinegar, who has resigned effective February 1, 1975. Dr. King was in the forefront in leading the way to Since 1952, Mr. Coleman has been with the law firm passage of the Voting Rights Act of 1965. I supported of Dilworth, Paxson, Kalish, Kohn and Dilks of Phila- the original act and its extension in 1970. This law has delphia. He was elected a partner in 1956. From 1949 to helped to open up our political processes to full citizen 1952, he was with the firm of Paul, Weiss, Rifkind, Whar- participation-and we must safeguard these gains through ton and Garrison of New York City. Mr. Coleman was born on July 7, 1920, in Philadel- another five-year extension of the statute. phia, Pa. He received his A.B. degree summa cum laude I will forward to the Congress later this week draft in 1941 from the University of Pennsylvania and his legislation for such an extension. I believe the right to LL. B. degree magna cum laude from the Harvard Uni- vote is the foundation of freedom and equality. It must versity School of Law in 1946. He was a Langdell Fellow be protected. at Harvard Law School from 1946 to 1947. He then During his lifetime, Dr. King received the Nobel Prize served as a law clerk to Supreme Court Justice Felix Frankfurter from 1948 to 1949. and numerous other awards. But shortly before his death Mr. Coleman is married to the former Lovida Hardin, seven years ago, he said that he preferred to be remem- and they have three children. They reside in Philadelphia, bered not for these honors, but for his service to his Pa. fellow man. Dr. King is remembered as he wished-and his memory continues to inspire hope for America. We must not le Dr. Martin Luther King, Jr. his work die-that will be the highest tribute of all. The President's Remarks Recorded for the Anniversary NOTE: The President recorded the remarks on Tuesday, January 1. of Dr. King's Birth. January 14, 1975 1975, in commemoration of Dr. King's birth on January 15, 192! The White House also announced that the President had sent On the 46th anniversary of the birth of Dr. Martin telegram to Coretta Scott King expressing his high regard for Luther King, Jr., it is appropriate to review the progress memory of her late husband. THE STATE OF THE UNION The President's Address Delivered Before a Joint Session of the Congress. January 15, 1975 Mr. Speaker, Mr. Vice President, Members of the 94th Congress, and distinguished guests: Twenty-six years ago, a freshman Congressman, a young fellow with lots of idealism, who was out to change the world, stood before Sam Rayburn in the well of the House and solemnly swore to the same oath that all of you took yesterday, an unforgettable experience, and I congrat- ulate you all. Two days later, that same freshman stood at the back of this great Chamber, over there someplace, as President Truman, all charged up by his single-handed election victory, reported as the Constitution requires on the state of the Union. Volume 11-Number 3 jab Zaumen Bowy Art OWE xe WHITE Nam HOUSE DECISION WASHINGTON March 10, 1975 MEMORANDUM FOR THE PRESIDENT FROM: JIM CANNON SUBJECT: TRANSFER OF THE NAVAL PETROLEUM RESERVES FROM NAVY TO INTERIOR This memo is to ask whether you have changed your position on the matter of transferring Naval Petroleum Reserves from Navy to Interior. Congressman Melcher is the sponsor of a bill (H.R. 49) recently reported favorably by his subcommittee of the House Interior Committee which would transfer responsibility for the Naval Petroleum Reserves from Navy to Interior. Congressmen Melcher and Bell have stated publicly (Tab A) that they have "unofficial" word from the White House that you would be "delighted" to have their bill pass the Congress. Since such a transfer differs from the position taken in your Energy Independ- ence Act, the Melcher-Bell statement has led to questions from Navy, DOD, and the Congress as to whether you have in fact changed your position. The matter is particularly urgent because Administration witnesses will appear at Senate Interior Committee hearings tomorrow at 10:00 a.m. and specific questions are expected as to whether you favor transfer of the Reserves to the Interior Department. RECOMMENDATION I recommend that you authorize a response during the hearings which will make clear your current position. DECISION Indicate that the Melcher-Bell statement apparently is based on a misunderstanding of your position. Indicate that the Melcher-Bell statement reflects your current position. GERALD FORD P-080 (PETROLEUM) WASHINGTON (UPI) 1 PRESIDENT FORD WAS REPORTED TODAY TO HAVE DECIDED TO SUPPORT LEGISLATION CALLING FOR THE TRANSFER OF THE NAVY'S UNTAPPED UNDERGROUND PETROLEUM RESERVES TO THE INTERIOR DEPARTMENT. CHAIRMAN JOHN MELCHER, D-MONT., OF THE HOUSE PUBLIC LANDS SUBCOMMITTEE TOLD REPORTERS OF THE "UNOFFICIAL" SWITCH BY THE PRESIDENT AFTER THE PANEL UNANIMOUSLY APPROVED A BILL PROVIDING FOR THE TRANSFER OF JURISDICTION. MELCHER SAID FORD APPARENTLY HAD NOT SAID ANYTHING PUBLICLY BECAUSE HE HAS SENT CONGRESS A PROPOSED BILL CALLING FOR PRODUCTION FROM THE ELK HILLS RESERVE IN CALIFORNIA UNDER CONTINUED NAVY JURISDICTION. BUT MELCHER SAID THE WHITE HOUSE HAD "PRIVATELY" AND UNOFFICIALLY" SAID THE PRESIDENT "WOULD BE DELIGHTED TO HAVE (THE T P-082 ADD 1 PETROLEUM, WASHINGTON (UP-080) BUT MELCHER SAID THE WHITE HOUSE HAD "PRIVATELY" AND UNOFFICIALLY SAID THE PRESIDENT "WOULD DE BELIGHTED TO HAVE THE COMMITTEE) BILL MOVE QUICKLY.* THE BILL APPROVED BY UNANIMOUS VOICE VOTE OF THE HOUSE PANEL WOULD TRANSFER BOTH THE ELK HILLS RESERVE AND THE NAVY'S HUGE ALASKAN RESERVE TO THE INTERIOR DEPARTMENT FOR ADMINISTRATION. LIKE THE ADMINISTRATION BILL, IT CALLS FOR PRODUCTION AS QUICKLY AS POSSIBLE FROM THE ELK HILLS RESERVE AND FOR FURTHER EXPLORATION OF THE ALASKAN OIL FIELD, MELCHER SAID HE WOULD PUSH FOR HOUSE ACTION ON THE BILL WITHOUT FIRST REFERRING IT TO THE HOUSE ARMED SERVICES COMMITTEE. THE BILL NOV GOES TO THE PARENT HOUSE INTERIOR COMMITTEE, HE ALSO SAID HOUSE SPEAKER CARL ALBERT HAD BULED THAT THE LEGISLATION WAS PROPERLY REFERRED TO THE INTERIOR COMMITTEE DESPITE A PROTEST BY REP, JOHN MOSS, D-CALIF., WHO CONTENDED IT SHOULD HAVE CONE TO THE ARMED SERVICES COMMITTEE. UPI 02-28 03:03 PED GERALD FORD LIBRAN 5 [ca.3/11/75] THE WHITE HOUSE WASHINGTON TO: Warren FROM: AGNES WALDRON as requested 176 PRESIDENTIAL DOCUMENTS: GERALD R. FORD, 1975 worsens. What are these new measures, and what would that if a company derives revenue from their oil and gas trigger the new initiatives-what developments? Specifi- developments, could they plow those revenues back into cally, how high would unemployment have to go? further exploration and development and thereby avoid THE PRESIDENT. Congratulations on your new success a tax on those revenues or those profits. in joining the Gridiron Club.¹ [Laughter] This was a very close call at the time I made the deci- MISS THOMAS. Answer the question. [Laughter] sion when we put this program together. The Congress is THE PRESIDENT. You made it unanimously, too. in the process-or I hope it will soon be in the process-of Well, to answer your question, the action that I took taking up my energy program. There ought to be ample today, I think, is constructive. It is an effort at the request opportunity for the proponents and the opponents to state of a number of Governors to move in an area where they their views and convince the Congress one way or another. think some beneficial results will accrue. It is a response to I can understand some justification for the plowback a particular situation. provision. I don't think it is a serious change in my pro- I think it is important to maintain basically my deep posal, but I will point out to the Congress that if they concern about an acceleration of Federal expenditures at incorporate the plowback provision, it will probably mean the present time, but at the same time being cognizant of a loss of about $3 to $4 billion annually in tax revenues to unique circumstances, which I think this was. And if and the Federal Government, and, if so, there will be less when other such circumstances arise, I will be willing to money to return to energy users than the figure that I have take a look at them and make an honest judgment as to recommended. whether they are helpful or harmful. But there is on the other hand a good argument that a UNEMPLOYMENT RATE plowback provision might stimulate more production, so it is a very close call. And although I favor what I have Q. Well, Mr. President, may I ask you: Mr. Meany recommended, I can understand the reasons for the plow- says that unemployment could go as high as 10 percent. back provision. Is that true, and, if not, what assurances can you give that it will not? VOLUNTARY ENERGY CONSERVATION THE PRESIDENT. Well, I watched my good friend, Q. Mr. President, voluntary conservation still seems to George Meany, on Sunday when he pulled that figure out be a weak hope in the program and to some of us more of the air. I think Mr. Meany, I might say parenthetically, skeptical. Does it still rate a high priority with the Admin- will approve of my release of $2 billion in highway con- istration, and if it does, do you see the need for any more struction funds, because he has repeatedly said that these restrictive plan? people have a high unemployment rate, these people are THE PRESIDENT. I think you have to have voluntary skilled craftsmen, and such a program would help get cooperation from 213 million Americans. I think their some of them back to work. affirmative participation is very vital. On the other hand, But we don't foresee a figure as high as that forecast by it seems to me that we need stronger action, and that is Mr. Meany. As a matter of fact, we are convinced with why I have recommended to the Congress this compre- the tax reductions that we have proposed-and that I hensive program and this, I think, very fair and equitable think the Congress will approve-we believe with the effort to get some action. other actions that we are taking, unemployment, the rate This program has four basic foundations: number one, of unemployment will gradually go down at the end of conservation by the price mechanism; number two, added 1975 and be improved in 1976. supply by stimulating exploration and development; num- CHANGES IN ENERGY PROPOSALS ber three, equity in the return of tax money to people, to business, to States; and, number four, security. This pro- Q. Mr. President, in view of your answer to Mr. Cor- gram gets America going in making us invulnerable mier, in your talks at Houston and here today, did you against foreign oil cartels, and, yet, we do need voluntary hear any convincing arguments that might make you cooperation at the same time. modify your energy proposals, and if so, which and how? THE PRESIDENT. There was one question raised by MEETING WITH JOHN CONNALLY individuals both in and out of government, both in Hous- Q. Mr. President, you have tried to set in writing stand- ton as well as in Topeka, about one provision, and that ards of ethics for members of your Administration. I want is whether or not, as a part of the windfall profits tax, to ask you about your meeting last night in Houston with there ought to be a provision for a plowback, which means former Texas Governor John Connally, who, as you know, is under indictment. On second thought, do you think 1 The President was referring to the fact that the questioner, Helen Thomas of United Press International, had recently been there might be anything improper for the Nation's chief elected the first woman member of the Gridiron Club. legal officer to meet with a man who is under indictment? Tupeka Volume 11-Number 7 news conf. 2-11-75 PRESIDENTIAL DOCUMENTS: GERALD R. FORD, 1975 and buses that will use much less fuel, and, finally, the ment. The facts, as I understand them, are just about the drilling of many thousands of new oil and gas wells. following: With the money we spend in one month on imported In the last 12 to 18 months, the cost of drilling a well oil, I am told that we could drill the equivalent of 18,000 has gone up 100 percent or more. With those facts in onshore wells or about 3,000 offshore wells. mind, I think we have to understand the need for incen- We are all in this together. Each of us has a contract tives. I have seen estimates that the petroleum industry with this country. Each-of us must make good on the key might budget as much as $26 billion for capital spending clause in that agreement which deals with responsibility. in 1975 on expansion projects throughout the country to As you well know, there is a price for everything, whether help boost our energy supply. However, many of the pro- it be independence from tyranny or freedom from depend- posed projects may never see the light of day if the Con- ence. It is important that we have this freedom from de- gress fails to act on legislation that I have requested. pendence on others for the resources that we need. I have proposed a very comprehensive energy program. Idealism and realism do not contradict one another. It is not a program that is without cost or without sacri- The American people have always been idealists. It is now fices, but it is a program that will keep costs and inequities time to show ourselves and the world that we are also as low as possible, still achieving our objective of energy realists. independence. In another time of crisis, during World War II, the oil I suspect in this room many of you may not support and gas industry increased its production by 20 percent all of what I have proposed, but as I must say again, I with an investment of nearly $5 billion. This industry have seen no better program proposed. And let me illus- expenditure was the equivalent of two and a half times trate, if I might, my program and what the Congress has the cost of the Manhattan Project that developed the been working on so far since January 14, when they atomic bomb. A far greater commitment is needed today reconvened. and the Government cannot begin to do it alone. Here is a copy of the bill put together by myself and Instead of betting on what foreign sources may do, we my advisers, 167 pages of a comprehensive program to should put our money on what Americans can do and increase supply and to conserve in the utilization or impor- what Americans will do. If we offer sufficient incentives, tation of foreign oil-167 pages, leaving out-because it American enterprise here at home will solve our energy is traditional in the Congress-the specific recommenda- problems. tions of any tax changes. But the title of the bill, I think, Because of our present dependence, we are confronted is important: To increase domestic energy supplies and with these two critical problems: First, the effect on our availability, to restrain energy demand, and to prepare national political and military security; and, secondly, the for energy emergencies and for other purposes. 167 pages. severe strain increased petroleum prices have caused, not Now I have in my hand here the bill the Congress has only to our economy but those of the world's industrialized been working on since January 14-4 pages-and let me nations. read the title of what Congressional action calls for: To As I have indicated, America is not in control of its suspend, for a 90-day period, the authority of the Presi- energy destiny right now. Price leadership has shifted to dent under Section 232 of the Trade Expansion Act. the Arab nations and to other members of the Organiza- I ask you, in all sincerity which makes more sense- tion of Petroleum Exporting Countries. I am determined a program that is comprehensive, put together for the that American independence in energy be restored. We purpose of conservation and for increased production must never again be forced to pay the cartel-manipulated, or a piece of legislation of 4 pages suspending the power inflated prices of foreign oil. of the President to do anything about the problem. However, we must pay a price now to insure a more It is so patently obvious to me that a program and a reasonable price for our oil in the future. And that price plan is needed, not a step backward. It is quite obvious, is what it will cost us to produce American oil on Amer- I should say, that in my judgment, my program is far ican soil-right here in the State of Texas, in Alaska, in superior to any system of allocations, of quotas, or ration- the Outer Continental Shelf, and elsewhere within our ing. And that is what we have heard from the Congress territorial limits. most of the time thus far-either allocations, quotas, or Now, some people in Washington do not seem to rec- gasoline rationing. ognize the need for incentives in the marketplace, but we I don't think allocation or rationing can be fair and must, in my judgment, have sufficient incentives in the equitable to the consumer. Neither one can stimulate marketplace to increase production. Unless we create in- energy independence. They cannot produce one barrel centives, we will be settling for dependence on other of oil, not one gallon of gasoline. Furthermore, such a nations. program would be administratively burdensome, substi- Personally, I am very sensitive to the dramatic cost tuting bureaucratic judgment for the interplay of the increases in domestic oil and gas exploration and develop- free marketplace. It would be costly, about $2 billion a Houston 2-10-75 FORD Volume 11-Number 7 ERALD LIBRARI HEALTH. DEPECATION 26 THE SECRETARY OF HEALTH, EDUCATION, AND WELFARE DEPARTMENT WASHINGTON, D. C. 20201 U.S.A. February 25, 1975 MEMORANDUM FOR THE VICE PRESIDENT Vice Chairman, Domestic Council Subject: Domestic Council I look forward to working with the other members and staff of the Domestic Council on the responsibilities outlined in the President's memorandum of February 13. I believe the effective operation of the Council is essential to the development and implementation of responsible policy, and this Department will give the staff of the Council every assistance and its full support. In connection with the specific matters covered in the President's memorandum, I should like to make several suggestions: First, I believe that Council staff could play a significant role in facilitating communication between members of the Council and the President. When it was first established, this was to have been the purpose of the staff; it would assure that memoranda from Department heads completely addressed issues that concerned the President, and also that other persons in the White House and Executive Branch had an opportunity to comment on particular proposals. Subsequently, this function was too frequently replaced by one in which the staff would delay memoranda while it prepared its own analysis of the matter and then submit that instead of the original; substantively, the staff's lack of familiarity with the details of an issue did not improve the papers, and procedurally communication between the President and his Cabinet was blocked rather than facilitated. This problem has to my mind been more responsible for delays, misunder- standings, and even recriminations than any other single procedural problem involving the Cabinet vis-a-vis "The White House." Secondly, I would like to see the Cabinet and Domestic Council staff operate in the same way in resolving specific, short-fused policy issues, e.g., development of Administration positions on legislation, issuance of regulations involving more than one Department, etc. This role should be to consider issues in a way that is quickly responsive to the changing circumstances that occur in Congress. In this area the Council could operate as a constructive complement to the OMB: OMB can interpret existing policy and analyze some of the effects of proposed changes; the Domestic Council, without the specific respon- sibility for a particular aspect of the President's program, such as 2 OMB has, can be sensitive to, and deal more effectively with, a variety of concerns--political as well as budgetary--and convene discussions on energency issues as warranted. Thirdly, in the consideration of long-term issues, I would like to see the Domestic Council staff involved in the process at an early stage. In the past, Departments have engaged in extended study of policy options before Domestic Council staff had an opportunity to participate, which occasionally resulted in a need for lengthy debate and put a Cabinet officer in the position of selling his view to a skeptical White House staff rather than working with them. Earlier involvement of the Council staff in the study of manifestly significant long-range policy would go far to improve this situation. These few suggestions seem to me to fit within the intent of the President's memorandum. While others could better judge their impact on other Departments, I know that in this Department's work we would be able to improve the President's staff product considerably if they are agreed to. I look forward to working with you, Jim Cannon, and all Domestic Council staff to bring this about. Secretary cc: The President Donald Rumsfeld James Lynn James Cannon THE WHITE HOUSE WASHINGTON March 11, 1975 MEMORANDUM FOR THE PRESIDENT FROM : JIM CANNON SUBJECT : Science and Technology Adviser to the President The Vice President has rewritten and resubmitted an earlier paper proposing the creation of a Science and Technology Office in the Executive Office. (Tab A) The Vice President suggests three options: 1. A three-member Council of Technology and Science Advisers with up to 20 assistants, at a cost of $2.5 - $5 million annually. Legislation would be required. 2. A single Director of Technology and Science with up to 17 assistants as needed. Initial cost would be $1 - $1.5 million annually. Legislation would be required. 3. A Science and Technology adviser with up to 3 assistants, at a cost of $100,000 - $200,000 annually. Admin- istrative action would be required. Phil Buchen recommends a fourth option: The appointment of a Scientific and Technology Liaison Adviser to the President. Admin- istrative action would be required. (Tab B) 2 Paul O'Neill recommends a Science Adviser with a staff of up to three. (Tab C) Jack Marsh recommends the Vice President's Option 3, an Adviser with up to three assistants. (Tab D) Dr. Ted Marrs recommends Option 2, (Tab E) Domestic Council Comment: 1. In my view the President and his Executive Office staff should have readily available the best scientific and technological information and judgment on a wide range of subjects relating to the national interest. 2. The House Committee on Science and Technology is committed to passage in this Congress of a bill creating a Council of Advisers on Science and Technology in the Executive Office. On March 6, 1975 Representa- tives Teague and Mosher introduced a comprehensive bill that would -- a) write into law a national science policy, b) create a Council of Advisers, c) establish a Cabinet level Secretary, of Research and Technology Operations, d) form a government corporation to promote public use of research and develop- ment (Tab F) 3. Congress is likely to pass some kind of Science and Technology bill at this session, according to Mosher. Informal discussions with House Science and Technology Committee members and staff indicates that the House Committee is flexible and wants to work with your staff on passage of a bill that is acceptable to you. But it appears that any Science and Technology office smaller than something on the order of the Vice President's Option 2 would not be acceptable to the House Committee. 3 Decision: Develop a detailed proposal to: Create a three-member Council (Rockefeller Option 1) Create a Director of Technology (Rockefeller Option 2, Marrs recommends, with modifications) Create a Science and Technology Adviser (Rockefeller Option 3, Marsh recommends) Create a Science Adviser (Buchen Option 4, O'Neill recommends) Decision: That you authorize me to undertake, with Max Friedersdorf's staff, discussions with Representatives Teague and Mosher with the view to modify their bill to comport with your decision. Approve Disapprove Hold for further consideration THE WHITE HOUSE WASHINGTON AGENDA MEETING WITH DONALD RUMSFELD Tuesday, March 11, 1975 3:00 p.m. 1. How would you describe the central responsibilities of the Domestic Council in relation to the President's day to day operation? 2. How could the Domestic Council improve its work the President? petrix a) Are too many papers going guiden year to the President? Example: Consumer Protection Agency memorandum with options on 24 issues. burn Orguer b) Who rejects papers not important enough for the President to see? c) How does the President like papers written? 3. My initial impression is that too many Domestic Council memoranda to the President arrive so late that the President has little time to read the information or consider his options. If so, I would like to try to work out some system to SALD N. FORD CLERARY 2. constion won provide for earlier delivery of important papers to the President. (Note attachment) 4. How do members of the Domestic Council staff know the President's precise position on issues, " i.e. Consumer Protection Agency? a) Are his statements indexed by computer? 5. To what extent should the Domestic Council attempt to resolve issues between 48m a) Departments b) Departments or Agencies and OMB? I E.g. Secretary Weinberger's request concerning 3 and deep Orilned research training programs. lumut 6. Any comments on the present Domestic Council Cat an staff? hur 7. Purpose of the 7:30 a.m. meeting of information. Duh & Jahny Exchange - Tain ur Them 8. Speeches and appearances by Domestic Council lahn Members in support of Administration positions. ASSE GERALD E N.FORD 1. Date of necessity for public statements - Presidential Press Conferences, Presidential statements, Cabinet testimony on the Hill, polin have, or other. aw 2. The President needs ( ) days to consider. Jan 3. Domestic Council needs ( ) days to staff out. form 4. Department or agency should deliver paper to the Domestic Council ( ) days before a decision on issues is to be made public. FORD : LIBRARY 938870 1 ours MC EPB one DC chorowled Gury TP Not have every So to the had 10b But und policy Great - and New what are wer one white Must mori alternativer lu can coder views pur keep. in Boom i mine DREALO FORD mana this policy discopent Br fact Marh out alwas of publec with of mgain unsis prilemely, will rew pnes vertui water Ruther - surpli Broxle then than the quation FORD [ca. 3/11/75] Miny Di, cammin appearances gup 1 spech, 7 weeting pupm of 7.30 want Too deports few How hert - without V Too Justive spohen & vital a No of The 3 4 aquat given control milie muty' my Batch Embran Ultrer MNSC 3 staffo x How do we know his pontrow er. planbar connue reprecentation ACT, { Cheettan, Camon FORD LIBRARY wapo ween 8.2 - % weep - same a before I both 4 but swp also down 300, our dioport discover (2 2 [ca. 3/11/75 1. Date of necessity for public statements - Presidential Press Conferences, Presidential statements, Cabinet testimony on the Hill, or other. 2. The President needs ( ) days to consider. 3. Domestic Council needs ( ) days to staff out. 4. Department or agency should deliver paper to the Domestic Council ( ) days before a decision on issues is to be made public.