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    "id": "4526429",
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    "title": "Annual State Convention, Travelers Protective Association of America, Grand Rapids, MI, May 13, 1972",
    "citationUrl": "https://catalog.archives.gov/id/4526429",
    "collections": [
        "Gerald R. Ford Congressional Papers",
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    "subjects": [
        "Economics",
        "Inflation (Finance)",
        "International relations",
        "Vietnam War, 1961-1975"
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    "ocrText": "The original documents are located in Box D35, folder \"Annual State Convention,\nTravelers Protective Association of America, Grand Rapids, MI, May 13, 1972\" of the Ford\nCongressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential\nLibrary.\nCopyright Notice\nThe copyright law of the United States (Title 17, United States Code) governs the making of\nphotocopies or other reproductions of copyrighted material. The Council donated to the United\nStates of America his copyrights in all of his unpublished writings in National Archives collections.\nWorks prepared by U.S. Government employees as part of their official duties are in the public\ndomain. The copyrights to materials written by other individuals or organizations are presumed to\nremain with them. If you think any of the information displayed in the PDF is subject to a valid\ncopyright claim, please contact the Gerald R. Ford Presidential Library.\nANNUAL STATE CONVENTION, TRAUELERS PROTEC TIUE\nASSOC. OF AMERICA, 7:30 P.M. SAT., MAY 13, 1972,\nGRAND RAPIDS, MICHIGAN.\nHN. Vergin Jale\n2.R.S.\nONE OF OUR FOREMOST CONCERNS\nTODAY IS THE HEALTH OF THE U.S. ECONOMY.\nI WOULD LIKE TO GIVE YOU A PROGRESS REPORT\nON THE ECONOMY TONIGHT IN THE LIGHT OF\nTHE ADMINISTRATION?S NEW ECONOMIC POLICY.\nI WILL ALSO TOUCH ON FOREIGN AFFAIRS AND\nTHE ADMINISTRATION'S EFFORTS TO USHER IN\nA NEW ERA OF PEACE.\nOUR NEW ECONOMIC POLICY, AS YOU\nKNOW, IS AIMED AT REDRESSING OUR BALANCE\nOF TRADE, INCREASING U.S. INDUSTRIAL\nPRODUCTIVITY, COMPETING EFFECTIVELY\nABROAD, ATTAINING FULL EMPLOYMENT, AND\nCONTROLLING INFLATION.\nTWO OTHER AIMS SHOULD BE\nPARAMOUNT AT THIS TIME -- KEEPING OUR\nFORD & LIBRARY GERALD\nDEFENSES SECURE AND IMPROVING THE QUALITY\nDigitized from Box D33 of The Ford Congressional Papers: Press Secretary and Speech File at the Gerald R. Ford Presidential Library\n(No PAGE 2) -3-\nOF LIFE FOR ALL OF OUR CITIZENS.\nSINCE JANUARY 1969 THE PRESIDENT\nHAS BEEN GUIDING OUR COUNTRY THROUGH A\nSERIES OF HISTORIC TRANSITIONS:\n-- FROM AN ERA OF CONFRONTATION\nTO AN ERA OF NEGOTIATION.\n-- FROM ARMS COMPETITION TOWARD\nARMS LIMITATION.\n-- FROM THE DRAFT TO AN\nALL-VOLUNTEER SERVICE.\n-- FROM A FEDERAL BUDGET DOMINATED\nBY DEFENSE EXPENDITURES TO ONE DOMINATED BY\nHUMAN RESOURCE PROGRAMS.\n-- FROM WAR TO PEACE.\n-- FROM A WARTIME ECONOMY TO A\nPEACETIME ECONOMY.\nTHE DISLOCATIONS AND PROBLEMS WE\nHAVE ENCOUNTERED IN SHIFTING FROM A WARTIME\nBRAR\n-4-\nTO A PEACETIME ECONOMY HAVE BEEN MOST\nSEVERE. THE PRESIDENT HAS BROUGHT NEARLY\n500,000 TROOPS HOME FROM VIETNAM AND HAS\nSHARPLY CUT OUR ARMED FORCES AND DEFENSE\nPURCHASES. AS THIS WINDING DOWN OCCURRED,\nMORE THAN 2 MILLION MEN AND WOMEN WERE\nRELEASED FROM DEFENSE AND DEFENSE-RELATED\nJOBS.\nFEW AMERICANS REALIZE THAT BY\nTHIS JUNE 30 THE SIZE OF OUR ARMED FORCES\nWILL HAVE BEEN TRIMMED TO 2,391,000,\n73,000 LESS THAN THE LOWEST FIGURE FOR THE\nPAST TWO DECADES AND 1.1 MILLION BELOW THE\nVIETNAM WAR HIGH REGISTERED IN THE PREVIOUS\nADMINISTRATION.\nAT THE SAME TIME, THE NUMBER OF\nCIVILIAN EMPLOYES IN THE DEFENSE DEPARTMENT\nWILL HAVE BEEN CUT BACK TO 1,041,000,\n-5-\nTHE LOWEST SINCE 1965 AND A DROP OF MORE\nTHAN 300,000 FROM THE VIETNAM HIGH.\nDESPITE THE TREMENDOUS PROBLEMS\nENGENDERED BY THE TRANSITION FROM A\nPEACETIME TO A WARTIME ECONOMY -- A\nTRANSITION COMPLICATED BY THE URGENT\nNECESSITY TO FIGHT A NEAR-RUNAWAY\nINFLATION -- AMERICA'S BUSINESS SYSTEM\nWAS NOT FLOUNDERING ON THE ROCKS LAST\nAUGUST 15 OR ANY TIME EARLIER. THE\nADMINISTRATION'S NEW ECONOMIC POLICY WAS\nNOT A BAILOUT FOR BUSINESS.\nTHE PROGRAM WAS MADE NECESSARY\nBY FOUR PROBLEMS:\n-- THE RATE OF INFLATION WAS NOT\nCOMING DOWN FAST ENOUGH;\n-- THE RATE OF UNEMPLOYMENT WAS\nTOO HIGH, DUE IN LARGE PART TO REDUCTIONS\nLIBRARY\nIN MILITARY FORCES AND DEFENSE CONTRACTING;\n-6-\n-- INTERNATIONAL TRADE AND FISCAL\nPROBLEMS WERE PUTTING SERIOUS PRESSURES\nON THE STRENGTH OF THE DOLLAR;\n-- AND LARGE SEGMENTS OF THE\nPUBLIC HAD BEEN TALKED INTO A LACK OF\nCONFIDENCE IN AMERICA'S FUTURE.\nTHE CRISIS IN CONFIDENCE WAS\nREALLY MORE SEVERE THAN ANY CRISIS IN THE\nECONOMY.\nTHE SUCCESS WE HAVE HAD TO DATE\nWITH THE NEW ECONOMIC POLICY IS REPAIRING\nTHE DAMAGE IN PUBLIC CONFIDENCE DESPITE\nCONTINUING POLITICAL ATTACKS ON THE\nPRESIDENT.\nTHE ECONOMY IS EXPANDING\nVIGOROUSLY. MOST OF THE KEY MONTHLY\nINDICATORS ARE POINTING UPWARD. THE 5.3 PER\nCENT ANNUAL GROWTH RATE FOR \"REAL\"\n-7-\nGROSS NATIONAL PRODUCT IN THE FIRST QUARTER\nOF THIS YEAR IS A GOOD SHOWING IN ANYBODY'S\nBOOK.\nMORE ENCOURAGING THAN ANYTHING\nELSE IS THE FACT THAT CONSUMER CONFIDENCE\nIS QUICKENING. THERE WAS A 2.5 PER CENT\nSPURT IN RETAIL SALES IN MARCH, AND THIS\nIS GIVING THE GENERAL BUSINESS UPSWING A\nMUCH MORE SOLID LOOK.\nEMPLOYMENT SOARED IN MARCH TO\nRECORD HEIGHTS. AFTER ADJUSTMENTS FOR\nSEASONAL FACTORS, THE NUMBER OF JOBHOLDERS\nTOPPED 81 MILLION AS EMPLOYMENT ROSE BY\n618,000. THAT WAS THE LARGEST ABSOLUTE\nADVANCE SINCE APRIL OF 1960. BUT WHILE THE\nECONOMY PRODUCED THE LARGEST ONE-MONTH\nINCREASE IN EMPLOYMENT IN OVER 10 YEARS,\nLIORARY\nTHE LABOR FORCE EXPANDED EVEN MORE SHARPLY.\n-8-\nTHE INCREASE IN THE LABOR FORCE -- THE\nLARGEST SUCH INCREASE IN 25 YEARS --\nPREVENTED THE JOBLESS RATE FROM FALLING.\nI PREDICT THAT THE UNUSUAL GROWTH\nIN THE LABOR FORCE WILL TAPER OFF AND\nEMPLOYMENT WILL CONTINUE TO MAKE MARKED\nGAINS. THE RESULT WILL BE TO PUSH\nUNEMPLOYMENT DOWN TOWARD THE 5 PER CENT\nMARK BY THE END OF THIS YEAR.\nTHE ADMINISTRATION'S FISCAL\nPOLICIES WILL PRODUCE AN INCREASE OF\n$100 BILLION IN GNP OVER LAST YEAR. THIS\nWILL BRING THE UNEMPLOYMENT RATE DOWN.\nEFFORTS TO IMPROVE AMERICA'S COMPETITIVE\nPOSITION IN WORLD MARKETS WILL INCREASE\nOUR SALES ABROAD AND GENERATE MORE JOBS\nHERE AT HOME.\nGEBALD FORD LIBRARY\n-9-\nIN ADDITION TO PURSUING\nSTIMULATIVE FISCAL POLICIES, THE\nADMINISTRATION IS ALSO CARRYING OUT\nNUMEROUS PROGRAMS WHICH PROVIDE DIRECT\nEMPLOYMENT. JOBS HAVE BEEN FOUND FOR MORE\nTHAN 270,000 VIETNAM-ERA VETERANS. THE\nADMINISTRATIONS PUBLIC EMPLOYMENT PROGRAM\nHAS CREATED 145,000 NEW JOBS. AND NEARLY\n1,100,000 FEDERALLY-SUPPORTED JOB\nOPPORTUNITIES WILL BE OFFERED AMERICAN\nYOUTH THIS SUMMER -- 89,000 MORE THAN LAST\nYEAR.\nEVERY WEEK THE PULSE OF THE\nECONOMY IS BEATING FASTER. THE RECOVERY\nNOW HAS SOME BOUNCE TO IT. MANUFACTURERS'\nSALES JUMPED AHEAD EARLY IN THE FIRST\nQUARTER OF THIS YEAR. THE OUTPUT OF STEEL,\nBUILDING PRODUCTS, FURNITURE AND\nGERALD R\n-10-\nAPPLIANCES HAS ALSO MOVED HIGHER. MACHINE\nTOOLS HAVE SCORED A 27 PER CENT\nYEAR-TO-YEAR GAIN IN ORDERS IN JUST THE\nFIRST TWO MONTHS OF THIS YEAR. OVERALL,\nINDUSTRIAL PRODUCTION HAS RISEN AT AN\nANNUAL RATE OF MORE THAN 8 PER CENT SINCE\nLAST NOVEMBER. CAPITAL SPENDING ROSE IN\nTHE FOURTH QUARTER OF 1971 AND ALSO IN THE\nFIRST QUARTER OF THIS YEAR.\nALL THE NUMBERS ADD UP TO A\nDEFINITE UPSWING, AND, VERY IMPORTANTLY,\nCONSUMERS SUDDENLY FEEL A LOT BETTER ABOUT\nBUSINESS AND EMPLOYMENT CONDITIONS. THAT\nIS WHY RETAIL SALES ARE PICKING UP AFTER\nMONTHS OF ALMOST NO MOVEMENT.\nON INFLATION, THE MARCH FIGURES\nGIVE US TANGIBLE EVIDENCE OF PROGRESS\nTOWARD OUR GOAL OF REDUCING THE INFLATION\n-11-\nRATE TO 2 TO 3 PER CENT BY YEAR'S END.\nACCORDING TO THE CONSUMER PRICE INDEX, WE\nSTOPPED INFLATION COLD DURING THE MONTH OF\nMARCH. SEASONALLY ADJUSTED, THE INCREASE\nWAS ACTUALLY ZERO. WHILE ONE MONTH DOES\nNOT AN ANNUAL RATE MAKE, I CAN ONLY\nCONCLUDE THAT THE FIGHT AGAINST INFLATION\nIS SUCCEEDING.\nDURING THE FOUR MONTHS SINCE\nTHE FREEZE ENDED IN NOVEMBER, THE CONSUMER\nPRICE INDEX AND EACH OF ITS MAJOR COMPONENTS\nEXCEPT FOOD HAVE RISEN AT A SLOWER RATE\nTHAN IN THE SIX MONTHS BEFORE THE\nSTABILIZATION PROGRAM BEGAN. IN THE SEVEN\nMONTHS SINCE THE PROGRAM WAS INITIATED, THE\nCPI HAS RISEN AT A YEARLY RATE OF 2.8 PER\nCENT, COMPARED WITH 4.1 PER CENT IN THE\nSIX MONTHS PRECEDING THE FREEZE.\n-12-\nAS A RESULT OF THE RESTRAINT ON\nPRICES, THE INCREASE IN THE CONSUMER PRICE\nINDEX WAS HELD TO 3.4 PER CENT FOR ALL OF\n1971. THAT COMPARES WITH A 5.5 PER CENT\nRISE IN 1970 AND 6.1 PER CENT IN 1969.\nON THE BASIS OF THESE FACTS, 1 WOULD SAY THE\nRATE OF INFLATION IS BEING PUSHED IN THE\nRIGHT DIRECTION -- DOWNWARD.\nTHE CRITICS WHO DECLARE THAT THE\nPRICE STABILIZATION MACHINERY HAS GONE\nHAYWIRE BECAUSE OF THE TEMPORARY POST-FREEZE\nBULGE ARE LIKE A SCOREKEEPER WHO DECLARES\nTHAT A PROFESSIONAL GOLFER IS OUT OF THE\nRUNNING BECAUSE HE GOES ONE OVER PAR ON\nTHE FIRST HOLE. HE IS OVERLOOKING THE\nFACT THAT A GOOD GOLFER IS LIKELY TO PICK\nUP A BIRDIE OR TWO ALONG THE WAY TO MAKE UP\nFOR HIS ONE EXCESS.\nFORD LIBRARY is GERALD\n-13-\nTHE CHARGE THAT WAGES ARE BEING\nHELD DOWN WHILE PRICES ARE ROCKETING OUT\nOF CONTROL IS SIMPLY NOT TRUE. GEORGE\nMEANY IS EMPLOYING THE BIG LIE TECHNIQUE,\nMAKING A FALSE STATEMENT AND REPEATING IT\nAGAIN AND AGAIN.\nREAL WAGES MEASURE WHETHER LABOR\nIS BETTER OFF THAN IT HAS BEEN. AND THE\nFACTS ARE THAT REAL EARNINGS FOR WORKERS\nFROM 1970 TO THE PRESENT SHOWED A\n6 PER CENT GAIN, WHILE WORKERS REGISTERED\nNO GAIN IN REAL EARNINGS FROM 1966 TO 1970.\nIN THE LAST QUARTER OF 1971, REAL EARNINGS\nROSE 5 PER CENT. IN ALL OF 1971, AVERAGE\nWEEKLY EARNINGS INCREASED 7.1 PER CENT,\nMORE THAN TWICE THE 3.4 PER CENT INCREASE\nIN CONSUMER PRICES.\nAS YOU KNOW, CORPORATE PROFITS\nLIBRARY\nROSE\n-14-\nARE NOT DIRECTLY UNDER CONTROL OF THE\nECONOMIC STABILIZATION PROGRAM ALTHOUGH\nPROFIT MARGINS ARE.\nSOME PEOPLE HAVE COMPLAINED\nBECAUSE CORPORATE PROFITS ROSE ABOUT\n16 PER CENT IN 1971 AND ARE EXPECTED TO\nRISE ABOUT AS MUCH, OR SLIGHTLY MORE, IN\n1972. NEVERTHELESS, CORPORATE PROFITS WILL\nSTILL BE RELATIVELY LOW IN 1972 AND WILL BE\nONLY 17.5 PER CENT HIGHER THAN IN 1966,\nSIX YEARS AGO. BY CONTRAST, TOTAL PERSONAL\nINCOME IN 1972 WILL BE NEARLY 60 PER CENT\nGREATER THAN IN 1966. AND, SIMILARLY,\nAVERAGE HOURLY EARNINGS OF ALL PRIVATE\nNON-AGRICULTURAL WORKERS IN 1972 WILL BE\nMORE THAN 40 PER CENT HIGHER THAN IN 1966.\nEVEN A SUBSTANTIAL INCREASE IN\nCORPORATE PROFITS THIS YEAR WILL LEAVE THEM\n-15-\nLOW BY HISTORICAL STANDARDS AND LOW\nRELATIVE TO PERSONAL AND WAGE INCOME.\nEVERY AMERICAN WHO UNDERSTANDS THE\nIMPORTANCE OF PROFITS IN OUR FREE\nENTERPRISE SYSTEM SHOULD BE CONCERNED ABOUT\nTHIS, BECAUSE PROFITS ARE THE KEY TO MORE\nJOBS, GREATER PRODUCTIVITY AND THE\nCOMPETITIVENESS OF AMERICAN INDUSTRY IN\nTHE WORLD ECONOMY.\nPROFIT IS THE NAME OF THE GAME\nIN A FREE ENTERPRISE SYSTEM. OUR SYSTEM\nGROWS IN SIZE AND IN STRENGTH AS PROFITS\nGROW. THOSE WHO WOULD PUT A FREEZE ON\nPROFITS WOULD KILL THE GOOSE THAT LAYS THE\nGOLDEN EGGS. TO PENALIZE INDUSTRY THROUGH\nA FREEZE ON PROFITS WOULD BE ROBBING IT OF\nITS LIFE'S BLOOD.\nFORD LIBRARY 'B GERALD\n-16- (No PAGE 17)\nLET ME INTERJECT THIS WORD OF\nCAUTION, HOWEVER. THOSE FIRMS WHICH ARE\nEXCEEDING PROFIT MARGINS ESTABLISHED UNDER\nOUR STABILIZATION PROGRAM WOULD DO WELL TO\nTRIM THEIR PRICES VOLUNTARILY. GOVERNMENT\nACTION FORCING PRICE CUTS SHOULD NOT BE\nNECESSARY.\nSUMMING UP, I BELIEVE THERE ARE\nFIVE ACTIONS WHICH MUST BE TAKEN IF WE\nARE TO ACHIEVE A STABLE ECONOMY. WE SHOULD\nAPPLY WAGE AND PRICE CONTROLS EQUITABLY,\nRELAX ECONOMIC CONTROLS ONCE INFLATION\nHAS BEEN CURBED, HOLD DOWN FEDERAL\nEXPENDITURES, REDUCE BARRIERS TO FREE\nINTERNATIONAL TRADE, AND INCREASE OUR\nEFFORTS TO SMOOTH THE TRANSITION FROM A\nWARTIME TO A PEACETIME ECONOMY.\n-18-\nLL\nTO-SUM\nUP\nTHIS ADMINISTRATION IS\nSTEADILY MOVING THIS COUNTRY TOWARD REAL\nPROSPERITY, NOT THE FALSE PROSPERITY\nGENERATED BY WAR -- THE FALSE PROSPERITY\nTHAT CREATES A DEFENSE PLANT BOOM AND PUTS\nHUNDREDS OF THOUSANDS OF YOUNG MEN INTO\nUNIFORM.\n-AND JUST AS THE ADMINISTRATION IS\nBUILDING A GENUINE PROSPERITY, SO WE ARE\nALSO SEEKING A GENERATION OF PEACE IN\n-19-\nWORLD AFFAIRS.\nPRESIDENT NIXON HAS BROUGHT A\nNEW QUALITY OF REALISM TO AMERICAN FOREIGN\nPOLICY. WE HAVE AGREED TO ACCEPT MAINLAND\nCHINA AS A SOVEREIGN NATION. WE HAVE\nUSHERED IN AN ERA OF NEGOTIATION IN PLACE\nOF CONFRONTATION. AND WE HAVE INITIATED\nTHE NIXON DOCTRINE OF HELPING THOSE\nFRIENDLY NATIONS WILLING TO HELP THEMSELVES.\nLAST YEAR ALONE, WE REACHED A\nNUMBER OF SIGNIFICANT AGREEMENTS WITH THE\nSOVIET UNION:\n-- WE BROKE THE DEADLOCK IN THE\nARMS LIMITATION TALKS AND AGREED ON A\nFRAMEWORK FOR PROGRESS. NOW THERE IS A\nSTRONG POSSIBILITY THAT PRESIDENT NIXON\nWILL BE SIGNING A STRATEGIC ARMS LIMITATION\nAGREEMENT WHEN HE GOES TO MOSCOW ON MAY 22.\n-- WE REACHED AN AGREEMENT ON\nFORD\nBERLIN, REDUCING AT LONG LAST THE DANGER OF\nA DIRECT CONFRONTATION THERE BETWEEN THE\nBRARY\nSUPERPOWERS.\n-20-\n-- WE SIGNED A TREATY BANNING\nWEAPONS OF MASS DESTRUCTION FROM THE\nSEABEDS, AND AGREED ON THE DRAFT OF ANOTHER\nTREATY TO REMOVE THE THREAT OF GERM WARFARE.\n-- WE AGREED ON A MORE RELIABLE\n\"HOT LINE\" WITH MOSCOW.\nWE HAVE NOT REACHED THE PROMISED\nLAND IN OUR DISCUSSIONS WITH THE RUSSIANS\nAND THE CHINESE, BUT FOR THE FIRST TIME IN\nA GENERATION WE HAVE THE OPPORTUNITY TO\nBUILD A LASTING STRUCTURE OF PEACE.\nIN THE MIDDLE EAST THE PRESIDENT\nWANTS TO SEE THE CEASE-FIRE WHICH HE\nINITIATED IN 1970 BECOME A PERMANENT PEACE.\nWE ARE CONTINUING TO WORK ON THAT PROBLEM.\nWE ARE ENDING THE COLD WAR BUT\nTHE HOT WAR IN VIETNAM HAS BECOME HOTTER.\nAS YOU KNOW, THE PRESIDENT HAS\nMADE EVERY EFFORT TO NEGOTIATE A SETTLEMENT\nWITH HANOI, INCLUDING PROPOSALS OFFERED BY\nLIBRARY\n-21-\nWAR CRITICS. TWELVE TIMES HIS PERSONAL\nEMISSARY FLEW TO PARIS TO CONDUCT SECRET\nNEGOTIATIONS. A WHOLE YEAR AGO THE\nPRESIDENT OFFERED THE ENEMY A FULL\nWITHDRAWAL OF AMERICAN TROOPS FROM SOUTH\nVIETNAM IN EXCHANGE FOR A CEASE-FIRE\nAND OUR PRISONERS OF WAR. BUT THE NORTH\nVIETNAMESE INSISTED ON A FULL POLITICAL\nSETTLEMENT, AND IN THE HOPE THAT THE\nSECRET NEGOTIATIONS MIGHT SUCCEED, THE\nPRESIDENT REMAINED SILENT WHILE MANY IN\nTHE CONGRESS ATTACKED HIM FOR NOT DOING\nWHAT HE HAD, IN FACT, ALREADY DONE.\nTHE CHARGE THAT PRESIDENT NIXON\nIS SEEKING A MILITARY VICTORY IN VIETNAM\nAND NOT PEACE IS AN OUT-AND-OUT LIE. THE\nPRESIDENT RESPONDED WITH AIR AND SEA\nCOUNTERATTACKS TO THE NORTH VIETNAMESE\n-22-\nINVASION OF SOUTH VIETNAM BECAUSE HE HAD\nNO OTHER CHOICE SHORT OF ABANDONMENT OF\nSOUTH VIETNAM. HE ALSO HAD A DUTY AS\nCOMMANDER-IN-CHIEF TO PROTECT THE\nU.S.\n60,000,TROOPS STILL IN SOUTH VIETNAM,\nA NUMBER THAT WILL DIMINISH TO 49,000\nBY JULY 1.\nNOW THE PRESIDENT IS SEEKING TO\nEND THE WAR BY CHOKING OFF THE ENEMY'S\nSOURCES OF SUPPLY. THIS IS THE ONLY WAY\nLEFT TO STOP THE FIGHTING, SINCE THE\nOTHER SIDE SIMPLY SNEERS AT OUR EFFORTS\nTO NEGOTIATE A SETTLEMENT. THERE IS\nRISK INVOLVED IN THIS COURSE OF ACTION BUT\nI FEEL GREAT CONFIDENCE IN THE PRESIDENT.\nI FEEL SURE HE HAS FULLY WEIGHED ALL OF\nTHE FACTORS INVOLVED.\nONE OF THE AIMS OF THE NORTH\nGERALD LIBRARY R.FORD\nVIETNAMESE OFFENSIVE IS TO DEMORALIZE\n--23--\nTHE AMERICAN PEOPLE -- TO PERSUADE THEM\nTO DECLARE THE WAR LOST AND TO DEMAND AN\nUNCONDITIONAL PULLOUT OF AMERICAN FORCES.\nBUT A RECENT POLL CONDUCTED BY THE\nOPINION RESEARCH CORPORATION OF PRINCETON,\nNEW JERSEY, SHOWS THAT 7 OUT OF 10 AMERICANS\nSUPPORT THE PRESIDENT'S USE OF U.S. AIR\nAND SEA POWER AGAINST NORTH VIETNAMESE\nMILITARY TARGETS AS LONG AS THE INVASION\nCONTINUES.\nABANDONMENT OF OUR ALLY IS NOT\nTHE ROAD TO PEACE IN VIETNAM AND THE\nWORLD.\nSURRENDER IN VIETNAM IS NOT THE\nROAD TO A LASTING PEACE.\nTHIS IS A TIME WHEN WE MUST ALL\nSTAND UP FOR AMERICA. WE CANNOT RETREAT\nFROM VIETNAM LIKE A BEATEN DOG WITH HIS\n-24-\nTAIL BETWEEN HIS LEGS. THE PRESIDENT WAS\nFORCED TO CHOOSE BETWEEN DECISIVE ACTION\nAIMED AT DEPRIVING THE ENEMY OF THE\nSUPPLIES HE NEEDED TO CONTINUE HIS\nINVASION OR THE POSSIBILITY OF A\nDUNKIRK-LIKE EVACUATION OF THE REMAINING\n60,000 AMERICANS IN VIETNAM.\nTHE PRESIDENT'S DECISION WILL\nNOT SIT WELL WITH THOSE WHO CRY \"PEACE\nNOW\" OR THOSE WHO WOULD ABANDON SOUTH\nVIETNAM TO A COMMUNIST TAKEOVER BY FORCE.\nBUT WE MUST CONTINUE TO ASSERT WORLD\nLEADERSHIP IN THE FACE OF NEO-ISOLATIONISM,\nWELL-MEANING BUT MISGUIDED PACIFISM, AND\nRADICALLY ORGANIZED PROTEST MOVEMENTS\nWHICH TEND TO BENEFIT THE OTHER SIDE.\nWE MUST PUT THE NATION ON A\nNEW COURSE, TAKE HER IN DIRECTIONS THAT\nPOINT TOWARD A NEW ERA OF GREATNESS FOR\n-25-\nTHE AMERICAN PEOPLE.\nWE MUST LAY A FOUNDATION FOR\nPROSPERITY WITHOUT WAR AND WE MUST BUILD\nA NEW STRATEGY FOR PEACE.\nOUR GOALS ARE CLEAR. OUR\nPURPOSE IS STRONG. WITH THE HELP OF THE\nAMERICAN PEOPLE, WE CANNOT FAIL.\n--END--\nFORD LIBRARY & GERALD\nFifth District only\nOffice Copy\nAN ADDRESS BY REP. GERALD R. FORD, R-MICH.\nREPUBLICAN LEADER, U.S. HOUSE OF REPRESENTATIVES\nBEFORE THE ANNUAL STATE CONVENTION OF THE\nTRAVELERS PROTECTIVE ASSOCIATION OF AMERICA\n7:30 PLM. SATURDAY, MAY 13, 1972\nGRAND RAPIDS, MICHIGAN\nFOR RELEASE AT 7:30 P.M. SATURDAY\nOne of our foremost concerns today is the health of the U.S. economy. I\nwould like to give you a progress report on the economy tonight in the light of\nthe Administration's New Economic Policy. I will also touch on foreign affairs\nand the Administration's efforts to usher in a new era of peace.\nOur New Economic Policy, as you know, is aimed at redressing our balance of\ntrade, increasing U.S. industrial productivity, competing effectively abroad,\nattaining full employment, and controlling inflation.\nTwo other aims should be paramount at this time--keeping our defenses secure\nand improving the quality of life for all of our citizens.\nSince January 1969 the President has been guiding our country through a\nseries of historic transitions:\n--From an era of confrontation to an era of negotiation.\n--From arms competition toward arms limitation.\n--From the draft to an all-volunteer service.\n--From a Federal budget dominated by defense expenditures to one dominated\nby Human Resource Programs.\n--From war to peace.\n--From a wartime economy to a peacetime economy.\nThe dislocations and problems we have encountered in shifting from a wartime\nto a peacetime economy have been most severe. The President has brought nearly\n(more)\n-2-\n500,000 troops home from Vietnam and has sharply cut our armed forces and defense\npurchases. As this winding down occurred, more than 2 million men and women were\nreleased from defense and defense-related jobs.\nFew Americans realize that by this June 30 the size of our armed forces\nwill have been trimmed to 2,391,000, 73,000 less than the lowest figure for the\npast two decades and 1.1 million below the Vietnam War high registered in the\nprevious Administration.\nAt the same time, the number of civilian employes in the Defense Department\nwill have been cut back to 1,041,000, the lowest since 1965 and a drop of more than\n300,000 from the Vietnam high.\nDespite the tremendous problems engendered by the transition from a\npeacetime to a wartime economy--a transition complicated by the urgent necessity\nto fight a near-runaway inflation--America's business system was not floundering\non the rocks last August 15 or any time earlier. The Administration's New Economic\nPolicy was not a bailout for business.\nThe program was made necessary by four problems: The rate of inflation was\nnot coming down fast enough; the rate of unemployment was too high, due in large\npart to reductions in military forces and defense contracting; international trade\nand fiscal problems were putting serious pressures on the strength of the dollar;\nand large segments of the public had been talked into a lack of confidence in\nAmerica's future.\nThe crisis in confidence was really more severe than any crisis in the\neconomy.\nThe success we have had to date with the New Economic Policy is repairing\nthe damage in public confidence despite continuing political attacks on the\nPresident.\nThe economy is expanding vigorously. Most of the key monthly indicators\nare pointing upward. The 5.3 per cent annual growth rate for \"real\" Gross National\nProduct in the first quarter of this year is a good showing in anybody's book.\nMore encouraging than anything else is the fact that consumer confidence is\nquickening. There was a 2.5 per cent spurt in retail sales in March, and this is\ngiving the general business upswing a much more solid look.\nEmployment soared in March to record heights. After adjustments for seasonal\nfactors, the number of jobholders topped 81 million as employment rose by 618,000.\n(more)\n--3---\nThat was the largest absolute advance since April of 1960. But while the economy\nproduced the largest one-month increase in employment in over 10 years, the labor\nforce expanded even more sharply. The increase in the labor force-the largest\nsuch increase in 25 years--prevented the jobless rate from falling.\nI predict that the unusual growth in the labor force will taper off and\nunemployment will continue to make marked gains. The result will be to push\nunemployment down toward the 5 per cent mark by the end of this year.\nThe Administration's fiscal policies will produce an increase of $100 billion\nin GNP over last year. This will bring the unemployment rate down. Efforts to\nimprove America's competitive position in world markets will increase our sales\nabroad and generate more jobs here at home.\nIn addition to pursuing stimulative fiscal policies, the Administration is\nalso carrying out numerous programs which provide direct employment. Jobs have\nbeen found for more than 270,000 Vietnam-era veterans. The Administration's public\nemployment program has created 145,000 new jobs. And nearly 1,100,000\nFederally-supported job opportunities will be offered American youth this summer--\n89,000 more than last year.\nEvery week the pulse of the economy is beating faster. The recovery now has\nsome bounce to it. Manufacturers' sales jumped ahead early in the first quarter of\nthis year. The output of steel, building products, furniture and appliances has\nalso moved higher. Machine tools have scored a 27 per cent year-to-year gain in\norders in just the first two months of this year. Overall, industrial production\nhas risen at an annual rate of more than 8 per cent since last November. Capital\nspending rose in the fourth quarter of 1971 and also in the first quarter of this\nyear.\nAll the numbers add up to a definite upswing, and, very importantly,\nconsumers suddenly feel a lot better about business and employment conditions.\nThat is why retail sales are picking up after months of almost no movement.\nOn inflation, the March figures give us tangible evidence of progress\ntoward our goal of reducing the inflation rate to 2 to 3 per cent by year's end.\nAccording to the Consumer Price Index, we stopped inflation cold during the month\nof March. Seasonally adjusted, the increase was actually zero. While one month\ndoes not an annual rate make, I can only conclude that the fight against inflation\nis succeeding.\n(more)\n-4-\nDuring the four months since the freeze ended in November, the Consumer\nPrice Index and each of its major components except food have risen at a slower\nrate than in the six months before the stabilization program began. In the seven\nmonths since the program was initiated, the CPI has risen at a yearly rate of\n2.8 per cent, compared with 4.1 per cent in the six months preceding the freeze.\nAs a result of the restraint on prices, the increase in the Consumer Price\nIndex was held to 3.4 per cent for all of 1971. That compares with a 5.5 per cent\nrise in 1970 and 6.1 per cent in 1969. On the basis of these facts, I would say\nthe rate of inflation is being pushed in the right direction--downward.\nThe critics who declare that the price stabilization machinery has gone\nhaywire because of the temporary post-freeze bulge are like a scorekeeper who\ndeclares that a professional golfer is out of the running because he goes one over\npar on the first hole. He is overlooking the fact that a good golfer is likely to\npick up a birdie or two along the way to make up for his one excess.\nThe charge that wages are being held down while prices are rocketing out of\ncontrol is simply not true. George Meany is employing the big lie technique, making\na false statement and repeating it again and again.\nReal wages measure whether labor is better off than it has been. And the\nfacts are that real earnings for workers from 1970 to the present showed a\n6 per cent gain, while workers registered no gain in real earnings from 1966 to\n1970. In the last quarter of 1971, real earnings rose 5 per cent. In all of 1971,\naverage weekly earnings increased 7.1 per cent, more than twice the 3.4 per cent\nincrease in consumer prices.\nAs you know, corporate profits are not directly under control of the economic\nstabilization program although profit margins are.\nSome people have complained because corporate profits rose about 16 per cent\nin 1971 and are expected to rise about as much, or slightly more, in 1972.\nNevertheless, corporate profits will still be relatively low in 1972 and will be\nonly 17.5 per cent higher than in 1966, six years ago. By contrast, total personal\nincome in 1972 will be nearly 60 per cent greater than in 1966. And, similarly,\naverage hourly earnings of all private non-agricultural workers in 1972 will be\nmore than 40 per cent higher than in 1966.\nEven a substantial increase in corporate profits this year will leave them\nlow by historical standards and low relative to personal and wage income. Every\n(more)\n-5--\nAmerican who understands the importance of profits in our free enterprise system\nshould be concerned about this, because profits are the key to more jobs, greater\nproductivity and the competitiveness of American industry in the world economy.\nProfit is the name of the game in a free enterprise system. Our system\ngrows in size and in strength as profits grow. Those who would put a freeze on\nprofits would kill the goose that lays the golden eggs. To penalize industry\nthrough a freeze on profits would be robbing it of its life's blood.\nLet me interject this word of caution, however. Those firms which are\nexceeding profit margins established under our stabilization program would do well\nto trim their prices voluntarily. Government action forcing price cuts should not\nbe necessary.\nSumming up, I believe there are five actions which must be taken if we are\nto achieve a stable economy. We should apply wage and price controls equitably,\nrelax economic controls once inflation has been curbed, hold down Federal\nexpenditures, reduce barriers to free international trade, and increase our efforts\nto smooth the transition from a wartime to a peacetime economy.\nThis Administration is steadily moving this country toward real prosperity,\nnot the false prosperity generated by war-the false prosperity that creates a\ndefense plant boom and puts hundreds of thousands of young men into uniform.\nAnd just as the Administration is building a genuine prosperity, so we are\nalso seeking a generation of peace in world affairs.\nPresident Nixon has brought a new quality of realism to American foreign\npolicy. We have agreed to accept Mainland China as a sovereign nation. We have\nushered in an era of negotiation in place of confrontation. And we have initiated\nthe Nixon Doctrine of helping those friendly nations willing to help themselves.\nLast year alone, we reached a number of significant agreements with the\nSoviet Union:\n*\nWe broke the deadlock in the arms limitation talks and agreed on a\nframework for progress. Now there is a strong possibility that\nPresident Nixon will be signing a strategic arms limitation\nagreement when he goes to Moscow on May 22.\n* We reached an agreement on Berlin, reducing at long last the danger\nof a direct confrontation there between the superpowers.\n*\nWe signed a treaty banning weapons of mass destruction from the\nseabeds, and agreed on the draft of another treaty to remove the\nthreat of germ warfare.\n*\nWe agreed on a more reliable \"hot line\" with Moscow.\n(more)\n-6-\nWe have not reached the promised land in our discussions with the Russians\nand the Chinese, but for the first time in a generation we have the opportunity\nto build a lasting structure of peace.\nIn the Middle East the President wants to see the cease-fire which he\ninitiated in 1970 become a permanent peace. We are continuing to work on that\nproblem.\nWe are ending the cold war but the hot war in Vietnam has become hotter.\nAs you know, the President has made every effort to negotiate a settlement\nwith Hanoi, including proposals offered by war critics. Twelve times his personal\nemissary flew to Paris to conduct secret negotiations. A whole year ago the\nPresident offered the enemy a full withdrawal of American troops from South Vietnam\nin exchange for a cease-fire and our prisoners of war. But the North Vietnamese\ninsisted on a full political settlement, and in the hope that the secret\nnegotiations might succeed, the President remained silent while many in the\nCongress attacked him for not doing what he had, in fact, already done.\nThe charge that President Nixon is seeking a military victory in Vietnam\nand not peace is an out-and-out lie. The President responded with air and sea\ncounterattacks to the North Vietnamese invasion of South Vietnam because he had no\nother choice short of abandonment of South Vietnam. He also had a duty as\ncommander-in-chief to protect the 60,000 U.S. troops still in South Vietnam, a\nnumber that will diminish to 49,000 by July 1.\nNow the President is seeking to end the war by choking off the enemy's\nsources of supply. This is the only way left to stop the fighting, since the\nother side simply sneers at our efforts to negotiate a settlement. There is risk\ninvolved in this course of action but I feel great confidence in the President.\nI feel sure he has fully weighed all of the factors involved.\nOne of the aims of the North Vietnamese offensive is to demoralize the\nAmerican people--to persuade them to declare the war lost and to demand an\nunconditional pullout of American forces. But a recent poll conducted by the\nOpinion Research Corp. of Princeton, N.J., shows that 7 out of 10 Americans support\nthe President's use of U.S. air and sea power against North Vietnamese military\ntargets as long as the invasion continues.\nAbandonment of our ally is not the road to peace in Vietnam and the world.\nSurrender in Vietnam is not the road to a lasting peace.\nThis is a time when we must all stand up for America. We cannot retreat\nfrom Vietnam like a beaten dog with his tail between his legs. The President was\n(more)\n-7-\nforced to choose between decisive action aimed at depriving the enemy of the\nsupplies he needed to continue his invasion or the possibility of a Dunkirk-like\nevacuation of the remaining 60,000 Americans in Vietnam.\nThe President's decision will not sit well with those who cry \"Peace now\"\nor those who would abandon South Vietnam to a Communist takeover by force. But we\nmust continue to assert world leadership in the face of neo-isolationism,\nwell-meaning but misguided pacifism, and radically organized protest movements\nwhich tend to benefit the other side.\nWe must put the nation on a new course, take her in directions that point\ntoward a new era of greatness for the American people.\nWe must lay a foundation for prosperity without war and we must build a\nnew strategy for peace.\nOur goals are clear. Our purpose is strong. With the help of the American\npeople, we cannot fail.\n###\nVistribution Fifth Dist. p.m. 5/11/72\n+26 copies of\nu affice Copy\nAN ADDRESS BY REP. GERALD R. FORD, R-MICH.\nREPUBLICAN LEADER, U.S. HOUSE OF REPRESENTATIVES\nBEFORE THE ANNUAL STATE CONVENTION OF THE\nTRAVELERS PROTECTIVE ASSOCIATION OF AMERICA\n7:30 PLM. SATURDAY, MAY 13, 1972\nGRAND RAPIDS, MICHIGAN\nFOR RELEASE AT 7:30 P.M. SATURDAY\nOne of our foremost concerns today is the health of the U.S. economy. I\nwould like to give you a progress report on the economy tonight in the light of\nthe Administration's New Economic Policy. I will also touch on foreign affairs\nand the Administration's efforts to usher in a new era of peace.\nOur New Economic Policy, as you know, is aimed at redressing our balance of\ntrade, increasing U.S. industrial productivity, competing effectively abroad,\nattaining full employment, and controlling inflation.\nTwo other aims should be paramount at this time--keeping our defenses secure\nand improving the quality of life for all of our citizens.\nSince January 1969 the President has been guiding our country through a\nseries of historic transitions:\n--From an era of confrontation to an era of negotiation.\n--From arms competition toward arms limitation.\n--From the draft to an all-volunteer service.\n--From a Federal budget dominated by defense expenditures to one dominated\nby Human Resource Programs.\n--From war to peace.\n--From a wartime economy to a peacetime economy.\nThe dislocations and problems we have encountered in shifting from a wartime\nto a peacetime economy have been most severe. The President has brought nearly\n(more)\n-2-\n500,000 troops home from Vietnam and has sharply cut our armed forces and defense\npurchases. As this winding down occurred, more than 2 million men and women were\nreleased from defense and defense-related jobs.\nFew Americans realize that by this June 30 the size of our armed forces\nwill have been trimmed to 2,391,000, 73,000 less than the lowest figure for the\npast two decades and 1.1 million below the Vietnam War high registered in the\nprevious Administration.\nAt the same time, the number of civilian employes in the Defense Department\nwill have been cut back to 1,041,000, the lowest since 1965 and a drop of more than\n300,000 from the Vietnam high.\nDespite the tremendous problems engendered by the transition from a\npeacetime to a wartime economy--a transition complicated by the urgent necessity\nto fight a near-runaway inflation--America's business system was not floundering\non the rocks last August 15 or any time earlier. The Administration's New Economic\nPolicy was not a bailout for business.\nThe program was made necessary by four problems: The rate of inflation was\nnot coming down fast enough; the rate of unemployment was too high, due in large\npart to reductions in military forces and defense contracting; international trade\nand fiscal problems were putting serious pressures on the strength of the dollar;\nand large segments of the public had been talked into a lack of confidence in\nAmerica's future.\nThe crisis in confidence was really more severe than any crisis in the\neconomy.\nThe success we have had to date with the New Economic Policy is repairing\nthe damage in public confidence despite continuing political attacks on the\nPresident.\nThe economy is expanding vigorously. Most of the key monthly indicators\nare pointing upward. The 5.3 per cent annual growth rate for \"real\" Gross National\nProduct in the first quarter of this year is a good showing in anybody's book.\nMore encouraging than anything else is the fact that consumer confidence is\nquickening. There was a 2.5 per cent spurt in retail sales in March, and this is\ngiving the general business upswing a much more solid look.\nEmployment soared in March to record heights. After adjustments for seasonal\nfactors, the number of jobholders topped 81 million as employment rose by 618,000.\n(more)\n-3---\nThat was the largest absolute advance since April of 1960. But while the economy\nproduced the largest one-month increase in employment in over 10 years, the labor\nforce expanded even more sharply. The increase in the labor force-the largest\nsuch increase in 25 years--prevented the jobless rate from falling.\nI predict that the unusual growth in the labor force will taper off and\nunemployment will continue to make marked gains. The result will be to push\nunemployment down toward the 5 per cent mark by the end of this year.\nThe Administration's fiscal policies will produce an increase of $100 billion\nin GNP over last year. This will bring the unemployment rate down. Efforts to\nimprove America's competitive position in world markets will increase our sales\nabroad and generate more jobs here at home.\nIn addition to pursuing stimulative fiscal policies, the Administration is\nalso carrying out numerous programs which provide direct employment. Jobs have\nbeen found for more than 270,000 Vietnam-era veterans. The Administration's public\nemployment program has created 145,000 new jobs. And nearly 1,100,000\nFederally-supported job opportunities will be offered American youth this summer--\n89,000 more than last year.\nEvery week the pulse of the economy is beating faster. The recovery now has\nsome bounce to it. Manufacturers' sales jumped ahead early in the first quarter of\nthis year. The output of steel, building products, furniture and appliances has\nalso moved higher. Machine tools have scored a 27 per cent year-to-year gain in\norders in just the first two months of this year. Overall, industrial production\nhas risen at an annual rate of more than 8 per cent since last November. Capital\nspending rose in the fourth quarter of 1971 and also in the first quarter of this\nyear.\nAll the numbers add up to a definite upswing, and, very importantly,\nconsumers suddenly feel a lot better about business and employment conditions.\nThat is why retail sales are picking up after months of almost no movement.\nOn inflation, the March figures give us tangible evidence of progress\ntoward our goal of reducing the inflation rate to 2 to 3 per cent by year's end.\nAccording to the Consumer Price Index, we stopped inflation cold during the month\nof March. Seasonally adjusted, the increase was actually zero. While one month\ndoes not an annual rate make, I can only conclude that the fight against inflation\nis succeeding.\n(more)\n-4-\nDuring the four months since the freeze ended in November, the Consumer\nPrice Index and each of its major components except food have risen at a slower\nrate than in the six months before the stabilization program began. In the seven\nmonths since the program was initiated, the CPI has risen at a yearly rate of\n2.8 per cent, compared with 4.1 per cent in the six months preceding the freeze.\nAs a result of the restraint on prices, the increase in the Consumer Price\nIndex was held to 3.4 per cent for all of 1971. That compares with a 5.5 per cent\nrise in 1970 and 6.1 per cent in 1969. On the basis of these facts, I would say\nthe rate of inflation is being pushed in the right direction--downward.\nThe critics who declare that the price stabilization machinery has gone\nhaywire because of the temporary post-freeze bulge are like a scorekeeper who\ndeclares that a professional golfer is out of the running because he goes one over\npar on the first hole. He is overlooking the fact that a good golfer is likely to\npick up a birdie or two along the way to make up for his one excess.\nThe charge that wages are being held down while prices are rocketing out of\ncontrol is simply not true. George Meany is employing the big lie technique, making\na false statement and repeating it again and again.\nReal wages measure whether labor is better off than it has been. And the\nfacts are that real earnings for workers from 1970 to the present showed a\n6 per cent gain, while workers registered no gain in real earnings from 1966 to\n1970. In the last quarter of 1971, real earnings rose 5 per cent. In all of 1971,\naverage weekly earnings increased 7.1 per cent, more than twice the 3.4 per cent\nincrease in consumer prices.\nAs you know, corporate profits are not directly under control of the economic\nstabilization program although profit margins are.\nSome people have complained because corporate profits rose about 16 per cent\nin 1971 and are expected to rise about as much, or slightly more, in 1972.\nNevertheless, corporate profits will still be relatively low in 1972 and will be\nonly 17.5 per cent higher than in 1966, six years ago. By contrast, total personal\nincome in 1972 will be nearly 60 per cent greater than in 1966. And, similarly,\naverage hourly earnings of all private non-agricultural workers in 1972 will be\nmore than 40 per cent higher than in 1966.\nEven a substantial increase in corporate profits this year will leave them\nlow by historical standards and low relative to personal and wage income. Every\n(more)\n-5-\nAmerican who understands the importance of profits in our free enterprise system\nshould be concerned about this, because profits are the key to more jobs, greater\nproductivity and the competitiveness of American industry in the world economy.\nProfit is the name of the game in a free enterprise system. Our system\ngrows in size and in strength as profits grow. Those who would put a freeze on\nprofits would kill the goose that lays the golden eggs. To penalize industry\nthrough a freeze on profits would be robbing it of its life's blood.\nLet me interject this word of caution, however. Those firms which are\nexceeding profit margins established under our stabilization program would do well\nto trim their prices voluntarily. Government action forcing price cuts should not\nbe necessary.\nSumming up, I believe there are five actions which must be taken if we are\nto achieve a stable economy. We should apply wage and price controls equitably,\nrelax economic controls once inflation has been curbed, hold down Federal\nexpenditures, reduce barriers to free international trade, and increase our efforts\nto smooth the transition from a wartime to a peacetime economy.\nThis Administration is steadily moving this country toward real prosperity,\nnot the false prosperity generated by war-the false prosperity that creates a\ndefense plant boom and puts hundreds of thousands of young men into uniform.\nAnd just as the Administration is building a genuine prosperity, so we are\nalso seeking a generation of peace in world affairs.\nPresident Nixon has brought a new quality of realism to American foreign\npolicy. We have agreed to accept Mainland China as a sovereign nation. We have\nushered in an era of negotiation in place of confrontation. And we have initiated\nthe Nixon Doctrine of helping those friendly nations willing to help themselves.\nLast year alone, we reached a number of significant agreements with the\nSoviet Union:\n* We broke the deadlock in the arms limitation talks and agreed on a\nframework for progress. Now there is a strong possibility that\nPresident Nixon will be signing a strategic arms limitation\nagreement when he goes to Moscow on May 22.\n*\nWe reached an agreement on Berlin, reducing at long last the danger\nof a direct confrontation there between the superpowers.\n*\nWe signed a treaty banning weapons of mass destruction from the\nseabeds, and agreed on the draft of another treaty to remove the\nthreat of germ warfare.\n*\nWe agreed on a more reliable \"hot line\" with Moscow.\n(more)\n-6-\nWe have not reached the promised land in our discussions with the Russians\nand the Chinese, but for the first time in a generation we have the opportunity\nto build a lasting structure of peace.\nIn the Middle East the President wants to see the cease-fire which he\ninitiated in 1970 become a permanent peace. We are continuing to work on that\nproblem.\nWe are ending the cold war but the hot war in Vietnam has become hotter.\nAs you know, the President has made every effort to negotiate a settlement\nwith Hanoi, including proposals offered by war critics. Twelve times his personal\nemissary flew to Paris to conduct secret negotiations. A whole year ago the\nPresident offered the enemy a full withdrawal of American troops from South Vietnam\nin exchange for a cease-fire and our prisoners of war. But the North Vietnamese\ninsisted on a full political settlement, and in the hope that the secret\nnegotiations might succeed, the President remained silent while many in the\nCongress attacked him for not doing what he had, in fact, already done.\nThe charge that President Nixon is seeking a military victory in Vietnam\nand not peace is an out-and-out lie. The President responded with air and sea\ncounterattacks to the North Vietnamese invasion of South Vietnam because he had no\nother choice short of abandonment of South Vietnam. He also had a duty as\ncommander-in-chief to protect the 60,000 U.S. troops still in South Vietnam, a\nnumber that will diminish to 49,000 by July 1.\nNow the President is seeking to end the war by choking off the enemy's\nsources of supply. This is the only way left to stop the fighting, since the\nother side simply sneers at our efforts to negotiate a settlement. There is risk\ninvolved in this course of action but I feel great confidence in the President.\nI feel sure he has fully weighed all of the factors involved.\nOne of the aims of the North Vietnamese offensive is to demoralize the\nAmerican people--to persuade them to declare the war lost and to demand an\nunconditional pullout of American forces. But a recent poll conducted by the\nOpinion Research Corp. of Princeton, N.J., shows that 7 out of 10 Americans support\nthe President's use of U.S. air and sea power against North Vietnamese military\ntargets as long as the invasion continues.\nAbandonment of our ally is not the road to peace in Vietnam and the world.\nSurrender in Vietnam is not the road to a lasting peace.\nThis is a time when we must all stand up for America. We cannot retreat\nfrom Vietnam like a beaten dog with his tail between his legs. The President was\n(more)\n-7-\nforced to choose between decisive action aimed at depriving the enemy of the\nsupplies he needed to continue his invasion or the possibility of a Dunkirk-like\nevacuation of the remaining 60,000 Americans in Vietnam.\nThe President's decision will not sit well with those who cry \"Peace now\"\nor those who would abandon South Vietnam to a Communist takeover by force. But we\nmust continue to assert world leadership in the face of neo-isolationism,\nwell-meaning but misguided pacifism, and radically organized protest movements\nwhich tend to benefit the other side.\nWe must put the nation on a new course, take her in directions that point\ntoward a new era of greatness for the American people.\nWe must lay a foundation for prosperity without war and we must build a\nnew strategy for peace.\nOur goals are clear. Our purpose is strong. With the help of the American\npeople, we cannot fail.\n# # #"
}