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Reagan, Ronald
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Agnes M. Waldron Files (Ford Administration)
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The original documents are located in Box 21, folder "Reagan, Ronald" of the Agnes M.
Waldron 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 R. 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States of America his copyrights in all of his unpublished writings in National Archives collections.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.
Some items in this folder were not digitized because it contains copyrighted
materials. Please contact the Gerald R. Ford Presidential Library for access to
these materials.
Newsday
MARTIN
1/18/71
SCHRAM
Campaign
View
48,7
Wooing the Nametags
Chicago-Leaders of the State Republi-
sure that later on these chairmen will feel
can Parties were working the Marriot Ho-
comfortable about joining with us."
tel Conference Room, highballs in hand,
Thus, Sears came on to a formal meet-
ing of the 45 attending chairmen the next
picking at standard hors d'oeuvre trays
morning with the lowest of low-key mes-
and renewing political acquaintances
and
48.71
ERRORS IN CANDIDATE REAGAN'S
SPEECH OF MARCH 31, 1976
REAGAN STATEMENT:
page 1, paragraph 3
"In this election season the White House in telling us
a solid economic recovery is taking place. It claims
a slight drop in unemployment. It says that prices
aren't going up as fast, but they are still going up,
and that the stock market has shown some gains. But,
in fact, things seem just about as they were back in
the 1972 election year. Remember, we were also
coming out of a recession then. Inflation has been
running at around 6%. Unemployment about 7%.
Remember, too, the upsurge and the optimism lasted
through the election year and into 1973. And then,
the roof fell in. Once again we had unemployment. Only
this time not 7%, more than 10. And inflation -- wasn't
6%, it was 12%. "
RESPONSE:
The peak of unemployment -- 8.9% -- was reached in May, 1975.
Latest unemployment figures -- March, 1976 -- show the rate was
7.5%. The employment is now at an all time high with 86.7
million at work. This exceeds the pre-recession peak of
July, 1974 and is a 2.6 million gain since March '75.
Prices are not going up as fast. Inflation in 1974 was at an annual
rate of over 12 percent. Today it is running at an annual rate of
about 6 percent.
In 1972 we were further into recovery than we are today. But
Mr. Reagan's statistical facts concerning 1973-74 are incorrect.
The peak unemployment figure was reached in May, 1975 at
8.9%. It never reached 10% as he states.
FORD is LIBRARY GERALD
REAGAN STATEMENT:
Page 2, paragraph 2
"Now, in this election year 1976, we're told we're
coming out of this recession. Just because inflation
and unemployment rates have fallen to what they were
at the worst of the previous recession. If history
repeats itself will we be talking recovery four years
from now merely because we've reduced inflation from
25% to 12%. "
RESPONSE:
All of the figures -- retail sales, GNP, durable goods, housing,
personal income, etc. clearly show we are moving out of the
recession -- the Administration's statements are not based merely
on improved unemployment and cost-of-living statistics as Mr.
Reagan implies.
FORD is LIBRARY GERALD
REAGAN STATEMENT:
Page 2, paragraph 3
"The fact is, we'll never build a lasting economic
recovery by going deeper into debt at a faster rate
than we ever have before. It took this nation 166
years -- until the middle of World War II -- to
finally accumulate a debt of $95 billion. It took
this administration just the last 12 months to add
$95 billion to the debt. And this administration
has run up almost one-fourth of our total national
debt in just these short nineteen months. 11
RESPONSE
The national debt reached $72 billion in 1942. The current
estimated deficit for FY 1976 is $76.9 billion. Gross federal
debt for FY 1976 is estimated at $634 billion. Thus the
administration's share of the national debt is 15.6%, not 25%.
FORD i LIBRARY GERALD
REAGAN STATEMENT:
Page 2, paragraph 4
"Inflation is the cause of recession and unemployment.
And we're not going to have real prosperity or recovery
until we stop fighting the symptoms and start fighting
the disease. There's only one cause for inflation - -
government spending more than government takes in.
The cure is a balanced budget. Ah, but they tell us,
80% of the budget is uncontrollable. It's fixed by laws
passed by Congress."
RESPONSE:
The President has offered specific plans for a balanced budget.
But a large part of the cause of the current recession is the
result of past fiscal policies, rapid increases in federal expendi-
tures. There is no quick remedy for problems created a decade
ago. A rapid return to a balanced budget, as Mr. Reagan calls
for, would provide fuel for inflation, but at the same time, it
would mean a long delay in recovery and much longer period of
high unemployment.
The budget for FY 1977 estimates that 77.1% of the budget is
uncontrollable.
FORD & LIBRARY GERALD
REAGAN STATEMENT:
page three, last two sentences of top paragraph
"But laws passed by Congress can be repealed by
Congress. And, if Congress is unwilling to do this,
then isn't it time we elect a Congress that will?"
RESPONSE:
The open-ended or uncontrollable programs call for outlays of
$383.1 billion in FY 1977. $236.8 billion is allocated to payments
for individuals. Does Mr. Reagan want to repeal the following:
Social Security and Railroad Retirement -- $108. 0 billion
Federal Employees Retirement Benefits -- $22.9 billion
Veterans Benefits -- $16.3 billion
Medicare and Medicaid -- $38.4 billion
Public Assistance Programs -- $26.0 billion
FORD & LIBRARY QERALD
REAGAN STATEMENT:
Page 3, paragraph 2
"Soon after he took office, Mr. Ford promised he
would end inflation. Indeed, he declared war on
inflation. And, we all donned those WIN buttons to
"Whip Inflation Now. " Unfortunately, the war - -
if it ever really started -- was soon over. Mr.
Ford, without WIN button, appeared on TV, and
promised he absolutely would not allow the Federal
deficit to exceed $60 billion (which incidentally was
$5 billion more than the biggest previous deficit
we'd ever had). Later he told us it might be as
much as $70 billion. Now we learn it's $80 billion
or more. "
RESPONSE:
The President did draw a line at a deficit of $60 billion on March 29,
1975 in a televised address. The largest single yearly deficit occur-
red in 1943 -- $54.8 billion. The difference between $54.8 billion
and $60 billion is, of course, $5.2 billion. The current estimated
deficit for FY 76 is not $80 billion or more, it is $76.9 billion.
FORD is LIBRARY GERALD
REAGAN STATEMENT:
Page 3, paragraph 3
"Then came a White House proposal for a $28 billion
tax cut, to be matched by a $28 billion cut in the
proposed spending -- not in the present spending, but
in the proposed spending in the new budget. Well, my
question then and my question now is, if there was.
$28 billion in the new budget that could be cut, what
was it doing there in the first place?"
RESPONSE
The proposed $28 billion cut is a cut in the anticipated $56
billion year-to-year increase in Federal spending that would
take place unless strong measures are taken. The President
has proposed the reform measures needed to accomplish this
objective; cutting in half the growth rate of federal spending
and making it possible to give the American people further tax
cuts.
FORD + LIBRARY GERALD
REAGAN STATEMENT:
Page 4, paragraph 1
"It would have been nice if they'd thought of some
arrangement like that for the rest of us. They could,
for example, correct a great unfairness that now
exists in our tax system. Today, when you get a
cost-of-living pay raise -- one that just keeps you
even with purchasing power -- it often moves you
up into a higher tax bracket. This means you pay
a higher percentage in tax but you reduce your pur-
chasing power. Last year, because of this inequity,
the government took in $7 billion in undeserved pro-
fit in the income tax alone, and this year they'll
do even better. Now isn't it time that Congress
looked after your welfare as well as its own?"
RESPONSE:
Inflation does indeed increase taxes. The President has recognized
this and has been successful in reducing the inflation rate by 50%.
He has also proposed curbing the rise in expenditures and matched
this with a comparable tax cut.
FORD is LIBRARY GERALD
REAGAN STATEMENT:
Page 5, paragraph 3
"Ending inflation is the only long range and lasting
answer to the problem of unemployment. The Wash-
ington Establishment is not the answer. It's the
problem. Its tax policies, its harassing regulations,
its confiscation of investment capital to pay for its
deficits keeps business and industry from expanding
to meet your needs and to provide the jobs we all
need. 11
RESPONSE:
The President's economic policies are anti-inflationary. He has
vetoed 46 bills and saved the taxpayers $13 billion. (Source: OMB)
Monetary expansion is now far more restrained than in 1972. Over
the last six months, the broadly defined money supply has grown
at an 8.6% annual rate. In the comparable September 1971-
March 1972 period, it grew at a 14.6% rate. It should be noted
that a 14.6% rate is well above the 10.5% upper limit of the
Federal Reserve's present target range.
Wholesale prices increased 12.5% from March 1974-March 1975,
while the price index went up only 5.5% between March 1975 and
March 1976.
Employment reached an all-time high of 86.5 million in February.
New orders for manufactured goods were up 2.4 percent in
February.
FORD is LIBRARY
REAGAN STATEMENT:
Page 6, paragraph 2
"At the time we were only importing a small percentage
of our oil. Yet, the Arab boycott caused half a million
Americans to lose their jobs when plants closed down for
lack of fuel. Today, it's almost three years later and
"Project Independence" has become "Project Dependence. "
Congress has adopted an energy bill so bad we were led
to believe Mr. Ford would veto it. Instead he signed it.
And, almost instantly, drilling rigs all over our land
started shutting down. Now, for the first time in our
history, we are importing more oil than we produce. How
many Americans will be laid off if there is another
boycott? The energy bill is a disaster that never should
have been signed. "
RESPONSE:
Candidate Reagan stated we were only importing a small percentage
of our oil when the Arab oil embargo occurred in 1974. In fact,
we were already importing 35% of our petroleum needs. The
amount of oil that we imported during 1975 was 6.0 mb/d, and
we produced 8. 4mb/d.
The Energy Policy and Conservation Act passed by the Congress
in December ended a year-long debate between the Congress
and the Administration on oil pricing policy and opened the way to
an orderly phasing out of controls on domestic oil over forty
months, thereby stimulating our own oil production. By removing
controls, this bill should give industry sufficient incentive over
a period of time to explore, develop and produce new fields in
the outer continental shelf, Alaska, and potential new reserves
in the lower forty-eight states. Removal of these controls at
the end of forty months should increase domestic production by
more than one million barrels per day by 1985 and reduce imports
by about three million barrels per day.
The average number of active rotary drilling rigs in March 1976
was approximately 270 less than in December 1975 which was the
highest level since 1962. Except for the two years after the
embargo, this First Quarter downturn reflects a normal seasonal
trend. Further, preliminary estimates indicate that 1976 invest-
ments by the petroleum industry in production and development
activities will exceed those of 1975.
FORD is LIBRARY GERALD
REAGAN STATEMENT: (continued)
Page 6, paragraph 2
RESPONSE: (continued)
More importantly, this bill enables the United States to meet
a substantial portion of the mid-term goals for energy independence
set forth over a year ago. Incorporated in this are authorities
for a strategic storage system, conversion of oil and gas-fired
utility and industrial plants to coal, energy efficiency labeling,
emergency authorities for use in the event of another embargo,
and the authority we need to fulfill our international agreements
with other oil consuming nations. These provisions will directly
reduce the nation's dependency on foreign oil by almost two
million barrels per day by 1985. In addition, the strategic
storage system and the stand-by authorities will enable the United
States to withstand a future embargo of about four million barrels
per day.
Oil rigs didn't begin shutting down. There were 1660 drilling
rigs operating in 1975, the highest number in a decade. Through
mid-March 1976, there were as many rigs operating as were
operating in the comparable period during '75.
FORD is LIBRARY
REAGAN STATEMENT:
Page 7, paragraph 2
"When I became Governor, I inherited a state govern-
ment that was in almost the same situation as New
York City. The state payroll had been growing for
a dozen years at a rate of from 5 to 7,000 new
employees each year. State government was spend-
ing from a million to a million and a half dollars
more each day than it was taking in. The State's
great water project was unfinished and underfunded
by a half a billion dollars. My predecessor had
spent the entire year's budget for Medicaid in the
first six months of the fiscal year. And, we learned
that the teachers' retirement fund was unfunded. A
four billion dollar liability hanging over every prop-
erty owner in the state. I didn't know whether I'd
been elected Governor or appointed receiver."
RESPONSE:
The bonded indebtedness of California at $4 billion does not compare
to New York City's current problem.
The State payroll increased from 113,779 in 1967 to 127,929 in 1973.
The state budget more than doubled under Ronald Reagan. From
$4.6 billion in 1967 to $10.2 billion in 1973.
FORDO i LIBRARY GERALD
REAGAN STATEMENT:
Page 7, paragraph 3
Page 9, paragraph 2
"California was faced with insolvency and on the verge
of bankruptcy. We had to increase taxes. Well,
this came very hard for me because I felt taxes
were already too great a burden. I told the people
the increase, in my mind, was temporary and that,
as soon as we could, we'd return their money to
them.
"This was government-by-the-people proving that it
works when the people work at it. When we ended
our eight years, we turned over to the incoming
administration a balanced budget. A $500 million
surplus. And, virtually the same number of employees
we'd started with eight years before. Even though the
increase in population had given some departments a
two-thirds increase in work load."
RESPONSE:
The number of state employees increased from 113, 779 in 1967
to 127, 929 in 1975. Under Reagan, there were three huge tax
increases totalling more than $2 billion.
In 1967, there was an increase of $967 million, the largest state
tax hike in the nation's history. Of this, $280 million went for
one-time deficit payment and state property tax relief. In 1971,
the increase was $488 million with $150 million for property tax
relief. In 1972, an increase of $682 million with $650 million for
property tax relief. Much of this property tax relief was short
term, but the overall tax increases were permanent.
State personal income tax revenues went from $500 million to
$2.5 billion, a 500% increase. Taxable bracket levies were in-
creased from 7% to 11%. The size of the brackets was reduced
so that taxpayers reached the highest bracket more quickly and
FORD & LIBRARY 038870
Page 7, paragraph 3 and Page 9, paragraph 2 (continued)
personal exemptions were reduced. Finally, after he adamantly
denied that he would ever do so, the Governor agreed to a system
of withholding state income taxes.
Bank and corporation taxes went up 100%. The state sales tax
rose from 4% to 6%. The tax on cigarettes went up 7 cents a
pack and the liquor tax rose 50 cents per gallon. Inheritance
tax rates were increased and collections more than doubled.
Under Reagan, the average tax rate for each $100 of assessed
valuation rose from $8.84 to $11.15. Under predecessor Pat
Brown, the increase was much less in dollars and percentage --
from $6.96 to $8.84, and in the six years of Republican Knight's
administration, it was still less -- from $5.94 to $6.96. One
reason for the big increase under Reagan -- from $3.7 billion to
$8.3 billion -- is that the state paid a steadily smaller per-
centage of the school costs -- one of the biggest reasons for
local property taxes.
Despite periodic efforts to provide relief, there has been a sub-
stantial increase in the burden carried by most property owners.
Inflation and high assessments have helped wipe out any savings.
Only $855 million of the record $10.2 billion budget in Reagan's
final year was for tax relief for homeowners and renters.
FORD is LIBRARY 07V830
REAGAN STATEMENT:
Page 10, paragraph 4
"And in less than three years we reduced the rolls by
more than 300,000 people. Saved the taxpayers $2
billion."
RESPONSE:
Substitute for 300,000 and $2 billion the following:
1. Drop by 20,000 persons in rolls due to correction in
accounting procedures in largest county, Los Angeles.
2. Migratory rate of unemployed into California declined
from 233,000 in 1967 to 44,000 in 1971.
3. 110,000 decline in rolls attributed to Reagan even
though his welfare program had not gone into effect
when decline occurred.
4. Rolls for welfare families increased in 8 years of
Reagan's Governorship from 729,357 to 1,384,400
and their state expenditures went from $408 million
to $995 million.
FORD is GERALD LIBRARY
REAGAN STATEMENT:
Page 11, top sentence
"And, increased the grants to the truly deserving needy
by an average of 43%. We also carried out a successful
experiment which I believe is an answer to much of the
welfare problem in the nation. We put able-bodied welfare
recipients to work at useful community projects in return
for their welfare grants. 11
RESPONSE:
The average payment of the AFDC in 1970 was $193.00 per family;
in 1974, it was $239.00. The average payment for Old Age
Assistance in 1970 was $117.00 per person; in 1974, the average
payment was $129.00 per person.
The program never touched more than 6/10th of 1% of welfare
recipients. Also, the program was designed to have 59,000
participants in the first year in 35 counties, but it managed
only 1, 100 participants in 10 counties in mostly rural farm
areas.
In May 1974 the California Auditor General found that 262
participants found regular work as a result of the program at a
cost of $1.5 million. This amounts to $6,000 in overhead costs
plus regular welfare costs for each person placed in regular
employment.
In 1974, because the program was a complete failure, it was
repealed by the Legislature.
FORD is LIBRAR GERALD
REAGAN STATEMENT:
page 12, paragraph 4
"Independent business people, shopkeepers and farmers file
billions of reports every year required of them by Washington.
It amounts to some 10 billion pieces of paper each year and
it adds $50 billion a year to the cost of doing business.
Washington has been loud in its promise to do something
about this blizzard of paperwork. And they made good.
Last year they increased it by 20%. "
RESPONSE:
The figures 10 billion and 50 billion are guestimates. No one has
counted the number of pages in all of these reports. Moreoever,
if it is liberally estimated that it costs $100 an hour to work on these
forms, the total cost to business would be $4.3 billion.
Between December, 1974 and December, 1975, the number of reports
from the Executive branch agencies excluding IRS, banking and
regulatory agencies declined by 5%. However, the number of hours
of burden associated with filling out the reports required by the
Congress, i.e., the Real Estate Settlements Act which requires
information to be filed when a house is sold added 4 million manhours
of reporting burden last year. In the absence of that report the
reporting burden would have declined. There are other reports
mandated by Congress which have added to this burden.
FORD : LIBRARY GENALD
REAGAN STATEMENT:
Page 13, paragraph 2
"We gave just enough support to one side in Angola to
encourage it to fight and die but too little to give it a
chance of winning."
RESPONSE:
The U.S. objective in supporting the FNLA/UNITA forces in
Angola was to assist them, and through them all of black Africa,
to defend against a minority faction supported by Soviet arms and
Cuban intervention. Despite massive Soviet aid and the presence
of Cuban troops there was a good chance for a satisfactory outcome
in Angola until December 19 when Congress adopted the Tunney
Amendment cutting off further U.S. aid to the FNLA and UNITA.
FORD is LIBRARY GERALD
REAGAN STATEMENT:
Page 13, paragraph 3
"In Asia our new relationship with mainland China can
have practical benefits with both sides. But that doesn't
mean it should include yielding to demands by them as
the Administration has, to reduce our military presence
on Taiwan where we have a long-time friend and ally,
the Republic of China."
RESPONSE:
We have not reduced our forces on Taiwan as a result of
Peking's demands. Instead, our reductions stem from our own
assessment of U.S. political and security interests. We have
drawn our forces down because the Vietnam conflict has ended
and because the lessening of tension in the area brought about
by our new relationship with the People's Republic of China
has made it possible.
FORD is LIBRARY 038840
REAGAN STATEMENT:
Page 13, paragraph 3
"Mr. Ford's new Ambassador to the United Nations
attacks our long time ally Israel. 11
RESPONSE:
Governor Scranton not only did not attack Israel, his veto blocked
an unbalanced Security Council Resolution critical of Israel - - a
resolution that every other member of the Security Council voted
for. In his March 23 speech in the United Nations Security Council
Governor Scranton was simply reiterating long-standing U.S.
policy -- a policy articulated by every Administration since 1967 --
on Israel's obligations as an occupying power under international
law with regard to the territories under its occupation.
FORD in LIBRARY 07V870
REAGAN STATEMENT:
Page 13-14, paragraph 3
"And it is also revealed now that we seek to establish
friendly relations with Hanoi. To make it more palatable,
we are told this might help us learn the fate of the men
still listed as Missing in Action."
RESPONSE:
The Congress, reflecting the desire of the American people and
the Administration for an accounting of our Missing in Action and
the return of the bodies of dead servicemen stil held by Hanoi
has urged the Administration to make a positive gesture toward
Hanoi in an effort to obtain such information. The Administration,
in keeping with this Congressional mandate, has offered to discuss
with Hanoi the significant outstanding issues between us. We have
not said we 'seek to establish friendly relations with Hanoi. 1 Such
an assertion is totally false.
FORD is LIBRARY GERALD
REAGAN STATEMENT:
Page 14, paragraph 2
"In the last few days, Mr. Ford and Dr. Kissinger have
taken us from hinting at invasion of Cuba to laughing it
off as a ridiculous idea. Except, that it was their
ridiculous idea. No one else suggested it. Once again --
what is their policy? During this last year, they carried
on a campaign to befriend Castro. They persuaded the
Organization of American States to lift its trade embargo,
lifted some U.S. trade restrictions, they engaged in
culture exchanges. And then on the eve of the Florida
primary election, Mr. Ford went to Florida, called
Castro an outlaw and said he'd never recognize him.
But he hasn't asked our Latin American neighbors to reimpose
a single sanction, nor has he taken any action himself.
Meanwhile, Castro continues to export revolution to
Puerto Rico, to Angola, and who knows where else?
RESPONSE:
We did not persuade the OAS to lift the sanctions against Cuba.
At Quito in the fall of 1974 we did not support a motion in the
OAS to do SO. At San Jose last summer the U.S. voted in favor
of an OAS resolution which left to each country freedom of action
with regard to the sanctions. We did so because a majority of
the OAS members had already unilaterally lifted their sanctions
against Cuba, and because the resolution was supported by a
majority of the organization members. Since that resolution
passed, no additional Latin American country has established
relations with Cuba.
The U.S. did not lift its own sanctions against Cuba, did not
enter into any agreements with Cuba, and did not trade with Cuba.
We did not engage in cultural exchanges. We validated some
passports for U.S. Congressmen and their staffs, for some
scholars and for some religious leaders to visit Cuba. We issued
a few select visas to Cubans to visit the U.S.. These minimal
steps were taken to test whether there was a mutual interest in
ending the hostile nature of our relations. This policy was
consistent with the traditional American interest in supporting
the free flow of ideas and people. We have, since the Cuban
adventure in Angola, concluded that the Cubans are not interested
FORD is GERALD LIBRARY
in changing their ways. We have resumed our highly restrictive
policies toward Cuban travel. With regard to Cuban efforts to
interfere in Puerto Rican affairs, we have made it emphatically clear
REAGAN STATEMENT: (continued)
Page 14, paragraph 2
RESPONSE: (continued)
in the UN and bilaterally to the Cubans and other nations that
the U.S. will not tolerate any interference in its internal affairs.
FORD if LIBRARY GERALD
in
REAGAN STATEMENT:
Page 15, paragraph 3
"The Canal Zone is not a colonial possession. It is not
a long-term lease. It is sovereign U.S. territory every
bit the same as Alaska and all the states that were carved
from the Louisiana Purchase. We should end those
negotiations (on the Panama Canal) and tell the General:
We bought it, we paid for it, we built it and we intend
to keep it. 11
RESPONSE:
Negotiations between the United States and Panama on the Canal
have been pursued by three successive American Presidents.
The purpose of these negotiations is to protect our national
security, not diminish it.
Finally, Governor Reagan's view that the Canal Zone is "sovereign
U. S. territory every bit the same as Alaska and all the states
that were carved from the Louisiana Purchase" is incorrect.
Legal Scholars have been clear on this for three-quarters of a
century. Unlike children born in the United States, for example,
children born in the Canal Zone are not automatically citizens
of the United States.
FORD & GERALD LIBRARY
REAGAN STATEMENT:
Page 16, paragraph 1
"The Soviet Army outnumbers ours more than two-to-one
and in reserves four-to-one. They out-spend us on
weapons by 50%. Their Navy outnumbers ours in surface
ships and submarines two-to-one. We are outgunned in
artillery three-to-one and their tanks outnumber ours
four-to-one. Their strategic nuclear missiles are larger,
more powerful and more numerous than ours. The
evidence mounts that we are Number Two in a world
where it is dangerous, if not fatal, to be second best."
RESPONSE:
Our nation is not "in danger, 11 but it is damaging to the interests
of this country when a politician declare to our adversaries and
our friends abroad -- falsely -- that we are in second place.
Such statements are both irresponsible and dangerous in that
they alarm our people and confuse our allies.
It is meaningless to say the Soviet Army may now be twice the
size of the U.S. Army when about half of the Soviet Army is
deployed on the Chinese border. More meaningful is the Soviet
Army strength in Europe. Such rhetoric based on simplistic
factural comparisons indicate a disturbingly shallow grasp of what
true balance is all about.
Mr. Reagan conveniently neglects to point out that our strategic
forces are superior to Soviet forces. Our missiles are far
more accurate and survivable. We have over twice as many
missile warheads and, after all, it is the warheads which actually
reach the target. Our lead in this area has been increasing over
the past several years. Mr. Reagan likewise ignores our vast
superiority in strategic bombers.
Addressing the implication that the President has tolerated a weak
defense policy, President Ford is the one who reversed the trend
of shrinking defense budgets. His last two defense budgets are
the highest peacetime budgets in the nation's history. Mr. Reagan
might better speak to the Democratic Congress about its $32
billion cuts in defense over the past six years.
Examining in more detail the question of America's strength first,
we must dispose of the numbers game. If national defense were a
FORD & GERALD LIBRARY
REAGAN STATEMENT: (continued)
Page 16, paragraph 1
RESPONSE: (continued)
matter of bookkeeping we could point out that:
- Our missile warheads have tripled;
- We lead the Soviet Union by more than two-to-one;
- We have over a three-to-one lead in strategic
bombers;
- Our missiles are twice as accurate as the Soviet
Union's.
But it is a disservice to the American people to confuse them
with any such numbers comparison. Two important facts are
ignored by Governor Reagan.
First, the United States stands at the head of a great Alliance
system in Europe, and we are firmly tied to the strongest
economic power in Asia. We have friendly relations with most
of the nations of the world. These relations are the product
of our longtime bipartisan foreign policy and the valuable
accomplishments of all of our previous Administrations since
President Truman.
Second, we cannot ignore that whatever might be the balance
of power today, it is not fixed. In our military programs and
our defense budgets, we are indeed looking to the future to
guarantee that this nation will never be in danger.
In our defense programs many new programs insure our position
of strength:
- We are proceeding with the development and production
of the world's most modern strategic bomber, the B-1.
- We are proceeding with the development and production
of the world's most modern and lethal missle launching
submarine, the Trident.
--- We are developing a new large ICBM.
FORD is LIBRARY
REAGAN STATEMENT: (continued)
Page 16, paragraph 1
RESPONSE: (continued)
- - We are producing three new fighters.
- - We are planning the production of 15 new fighting ships.
It is true a figure that can be cited to show that the Soviets have
more ships, but it is a distortion to equate Soviet destroyers with
our modern nuclear powered aircraft carriers.
The money we have put into defense over the past several years
has been inadequate. However, the responsibility for slashing
$32 billion dollars must rest with the Congress, not the
Administration.
Fortunately, under the prodding of President Ford, the Congress
has begun to awaken to the risks of constantly reducing our
defense spending. If the budget he proposed this year passes,
the trend will have been reversed.
In fact we are number one. Unless we falter our give way to
panic we will remain number one.
LIBRARY GERALD ? FORD
REAGAN STATEMENT:
Page 16, paragraph 2
"Why did the President travel halfway 'round the world
to sign the Helsinki Pact, putting our stamp of approval
on Russia's enslavement of the captive nations?
We gave away the freedom of millions of people--
freedom that was not ours to give. 11
RESPONSE:
The President did not go to Helsinki to put the stamp of approval
on Soviet domination of Eastern Europe. On the contrary, he
went to Helsinki along with the Chiefs of State or heads of
government of all our Western allies and, among others, a Papal
Representative, to sign a documents which contains Soviet commitments
to greater respect for human rights, self-determination of peoples,
and expanded exchanges and communication throughout Europe.
"Basket three" of the Act calls for a freer flow of people and
ideas among all the European nations.
The Helsinki Act, for the first time, specifically provides for the
possibility of peaceful change of borders when that would correspond
to the wishes of the peoples concerned. With regard to the particular
case of the Baltic States, President Ford stated clearly on July 25
that "the United States has never recognized the Soviet incorporation
of Lithuania, Latvia and Estonia and is not doing so now. Our
official policy of non-recognition is not affected by the results of
the European Security Conference. " In fact, the Helsinki document
itself states that no occupation or acquisition of territory by force
will be recognized as legal.
FORD & GERALD LIBRAR
REAGAN STATEMENT
Page 16, paragraph 3
"Now we must ask if someone is giving away our own
freedom. Dr. Kissinger is quoted as saying that he
thinks of the U.S. as Athens and the Soviet Union as
Sparta. The day of the U.S. is past and today is the
day of the Soviet Union. 1 And he added, 1 My job as
Secretary of State is to negotiate the most acceptable
second-best position available. 1 11
RESPONSE
Governor Reagan's so-called quotes from Secretary Kissinger are
a total and irresponsible fabrication. He has never said what the
Governor attributes to him or anything like it. In fact, at a
March 23, 1976 press conference in Dallas, Secretary Kissinger
said: "I do not believe that the United States will be defeated.
I do not believe that the United States is on the decline. I do
not believe that the United States must get the best deal it can.
"I believe that the United States is essential to preserve the
security of the free world and for any progress in the world that
exists.
"In a period of great national difficulty, of the Viet-Nam war,
of Watergate, of endless investigations, we have tried to preserve
the role of the United States as that major actor. And I believe
that to explain to the American people that the policy is complex,
that our involvement is permanent, and that our problems are
nevertheless soluble, is a sign of optimism and of confidence in
the American people rather than the opposite."
FORD is 038870 LIBRARY
REAGAN STATEMENT
Page 17, paragraph 2
"Now we learn that another high official of the State
Department, Helmut Sonnenfeldt, whom Dr. Kissinger
refers to as his "Kissinger", has expressed the belief
that, in effect, the captive nations should give us any
claim of national sovereignty and simply become a part
of the Soviet Union. He says, 'Their desire to break out
of the Soviet straightjacket' threatens us with World War III.
In other words, slaves should accept their fate. 11
RESPONSE:
The statement is wholly inaccurate, and a gross distortion of fact,
to ascribe such views to Mr. Sonnenfeldt or to this Admistration.
Neither he nor anyone else in the Administration has expressed any
such belief. The Administration view on this issue was expressed
by Secretary Kissinger before the House International Relations
Committee on March 29 as follows:
"As far as the U.S. in concerned, we do not accept a
sphere of influence of any country, anywhere, and
emphatically we reject a Soviet sphere of influence in
Eastern Europe.
"Two Presidents have visited in Eastern Europe; there
have been two visits to Poland and Romania and Yugoslavia,
by Presidents. I have made repeated visits to Eastern Europe,
on every trip to symbolize and to make clear to these countries
that we are interested in working with them and that we do
not accept or act upon the exclusive dominance of any one
country in that area.
"At the same time, we do not want to give encouragement
to an uprising that might lead to enormous suffering. But in
terms of the basic position of the United States, we do not
accept the dominance of any one country anywhere.
"Yugoslavia was mentioned, for example. We would emphatically
consider it a very grave matter if outside forces were to attempt
to intervene in the domestic affairs of Yugoslavia. We welcome
Eastern European countries developing more in accordance with
their national traditions, and we will cooperate with them. This
is the policy of the United States, and there is no Sonnenfeldt
doctrine. 11
FORD & 9ERALD LIBRARY
11.87
20006WNITE 16009
F6911
WHITE HSE PRESS RM
1600 PENN AVE
EOB
WASHINGTON DC 20006
821
509
April 1975
individual's free will. They all do. The
question is that defining a certain ideal
IN THIS ISSUE:
as good, which for us is the Judeao-
Christian heritage, how can we maxi-
mize individual adherence so that ex-
The 1975 Conservative Political Action Conference held in Washington,
ternal compulsion is unnecessary.
D.C., in February was a major political event. Participants came from
Hence, the primacy of prejudice as
across the nation to hear conservative leaders and to discuss the possible
defined by Burke and the central role
reactions &
of family and church as providing
formation of a new major political party.
restraints in man's relations to man,
NG's own political analyst Henry Camden explains the significance of
not as an adjunct, but as a necessary
CPAC, p. 6 Former YAF National Chairman and current U.S.
rebuttals
usurper to the encroachment of the
Representative from Maryland, Robert Bauman, kicked off the exciting
state as a parent often stands between
conference with a ringing denunciation of the two major parties as they
the state and his minor child.
Secondly, traditionalist immedi-
are presently structured, and offered realignment as a desirable reform,
ately lose their creditability if they
p. 7
American Conservative Union Chairman, M. Stanton Evans,
decide that the issue is "decriminaliza-
explored new party options, p. 11
Ohio Congressman John Ashbrook
To the Editor:
our machinery and wheat are sold to
tion" where the issue is the elimina-
Some misguided leftists are trying
Soviet Russia. These sales strengthen
presented a first-hand view of life within a party which has misplaced its
tion of the concept of sin. As the
to have capital punishment ruled un-
the deficient Russian economic system
principles, p. 13
Photographs of the highlights of the Conference begin
socialists emerge from the proposition
constitutional, basing their argument
and military potential.
that not they themselves or God was
on the "cruel and unusual punish-
These who advocate the detente
responsible for their position in soci-
ment" clause of the Constitution. To a
between the United States and Soviet
ety and hence developed the apologia
careful student of the Constitution,
Russia disregard the warnings of Alek-
of exploiters and the oppressed, so too
this argument is patently specious.
sandr I. Solzhenitsyn that the Russian
do libertarians insist that the state and
The 8th Amendment indeed does
Communist leaders have no intention
its historical tradition are infringing
state, "nor cruel and unusual punish-
to honor any agreements with the
upon their personal prerogatives. As
ments inflicted." To determine
United States, and that they do their
freedom is allowed to be defined as
whether capital punishment qualifies
very best to achieve the destruction of
free will, we come ever closer to
NEW
as such, it is instructive to see whether
the United States. The facts should
Sweden or Brave New World where the
the Constitution itself gives any indica-
not be ignored that Soviet Russia has
most acceptable and acquirable free-
tion. The 5th Amendment states, "No
violated many international agree-
dom among any group of men is soma
person shall be held to answer for a
ments and has occupied Lithuania,
and pneumatic women.
capital, or otherwise infamous crime,
Latvia, Estonia, Hungary, Czechoslo-
unless on a presentiment or indictment
vakia, and other countries in Eastern
of
a
Grand
Jury
This
reference
in
Europe.
THE MAGAZINE OF
the 5th Amendment to capital crimes
Therefore, informed persons should
YOUNG AMERICANS FOR FREEDOM
is an obvious indication that capital
ask the members of Congress to in-
punishment is an accepted and legiti-
crease our defense budget consider-
To the Editor:
mate practice. For certain crimes and
ably, and to do their best to oppose
In January New Guard, both Henry
EDITOR
for certain criminals, the death penalty
the selling of our machinery and wheat
Camden and William Rusher based
APRIL 1975
VOL XV, No. 3
is the most suitable answer.
to our arch-enemy-Soviet Russia-and
part of their advocacies of a "conserva-
Mary Fisk
The 5th and 8th Amendments were
likewise refrain from making any con-
tive" majority party on Kevin Phillips'
PUBLISHER
cessions of credit to Russia. Besides,
absurd work, The Emerging Republi-
Frank Donatelli
on
p.
16
The most important task of the Conference was the initiation
adopted concurrently, and therefore
of the formal mechanism for exploring the alternative of a new party. The
neither takes precedence over the
the Congress should be urged to en-
can Majority.
ASSOCIATE EDITORS
other as to its Constitutional force. It
courage the explosive forces of nation-
Interesting. Some of the policies
is apparent that if capital punishment
alism of the Lithuanians, Latvians,
implied in that book for the aspiring
David Brudnoy
resolution which created this body and the other twelve policy statements
Jameson G. Campaigne, Jr.
of the CPAC participants are on p. 18
North
Carolina
Senator
Jesse
is to become Constitutionally a "cruel
Estonians, the Ukrainians, Georgians,
majority party include:
Robert Moffit
Helms repeated his criticism of the major parties, and called for grass roots
and unusual punishment", an addi-
Armenians, and the other non-Russian
-expansion of public power.
ASSOCIATES
organization and a platform convention, p. 15 Political analyst
Kevin
tional Amendment will be required to
peoples in the Soviet Union-the large-
-continued farm price supports.
Phillips reported on the results of survey data, and found them promising,
abrogate the 5th Amendment's provi-
scale prison of peoples-and weaken
-federal 'job creation'.
Phillip Abbott Luce
sion. Moreover, it is also apparent that,
the Russian imperialism, colonialism,
-retaining and raising the minimum
R. Gaines Smith
p.
25
New York Senator James Buckley urged the return to principle,
lacking such a future Amendment, the
and aggression considerably.
wage laws.
John Snyder
p.
27
YAF Chairman Ron Docksai affirmed the need for the new
issue should be closed to judicial re-
Dr. Alexander V. Berkis
-planned inflation.
David Pietrusza
party, p. 28
view.
Professor of History
-continued compulsory collective bar-
Carl Olson
gaining, and possible repeal of right-
CORRESPONDENTS
The conference was climaxed by the major address by Ronald Reagan,
Woodland Hills, CA.
To the Editor:
to-work laws.
Richard Bocklet
whom many view as the candidate to effect the change which is so
The few individuals who have taken
-a high level of public works expendi-
Eric Brodin
urgently needed, p. 30.
up the defense of traditionalist teach-
tures.
EDITORIAL ASSISTANT
(ED. note: because of the special nature of this issue, and the limitations
To the Editor:
ings on freedom have largely come out
To some people, such a party may
Pam Dutton
The defense budget of the United
poorly by allowing the libertarians to
be worth the efforts of forming it and
of space, the Books, Arts, and Things section has not been included. It will
States is inadequate because of infla-
define the nature of the debate. "Lib-
getting it on the ballot. But I'll not
return with the next issue.)
tion. Nevertheless, many members of
erty," as Lord Acton observed, "is not
waste my shoes and knuckles circulat-
Congress, our TV networks, and self-
the freedom to do what you want, but
ing petitions, nor my time and travel
New Guard is published ten times a year, monthly, with combined issues in January/February and
styled liberal papers are assaulting our
the freedom to do what you ought."
in its founding conventions. It has
July/August by Young Americans for Freedom. Second class postage paid at Woodland Road,
Sterling, Virginia 22170 and additional mailing offices. Copyright 1975 in the U.S. by Young
entire defense system, while the mili-
Conservatism is not an exercise in
been my impression that the goal of
Americans for Freedom. All correspondence, manuscripts, circulation orders and changes of address
tary strength of Soviet Russia is in-
maximizing freedom qua freedom, but
YAF is to move the center, not move
should be sent to New Guard, Woodland Road, Sterling, Virginia 22170. Telephone: (703)
creasing by leaps and bounds daily.
in defining, preserving, and incorporat-
into it.
450-5162. Subscription rates $5 a year. (New Guard is also available in a microfilm edition from
Wide circles of American citizens,
ing the ought into individual's life.
Jack R. Patterson
University Microfilms, 313 N. First St., Ann Arbor, Mich.) The editors welcome unsolicited
manuscripts but request the enclosure of a self-addressed return envelope. Opinions expressed in
including those of the Eastern Euro-
The debate should not center
Roanoke, Va.
signed articles do not necessarily represent the views of the editors or of Young Americans for
pean descent, are alarmed to see that
around which laws infringe upon an
(Continued on inside back cover)
Freedom.
48.71
CITIZENS FOR REAGAN
1835 K Street N.W. Washington. D.C. 20006 202/452-7576
March 31, 1976
EMBARGO--RELEASE UPON DELIVERY 10:30 PM EST WEDNESDAY, MARCH 31, 1976
CONTACT: Lyn Nofziger
Jan McCoy
(202) 452-7606
TEXT OF GOVERNOR RONALD REAGAN'S NATIONWIDE TELEVISION ADDRESS
NBC NETWORK
WEDNESDAY, MARCH 31, 1976
Good evening to all of you from California. Tonight, I'd
like to talk to you about issues. Issues which I think are
involved or should be involved in this primary election season.
I'm a candidate for the Republican nomination for President.
But I hope that you who are Independents and Democrats will let
me talk to you also tonight because the problems facing our
country are problems that just don't bear any party label.
In this election season the White House is telling us a
solid economic recovery is taking place. It claims a slight
drop in unemployment. It says that prices aren't going up as
fast, but they are still going up, and that the stock market
has shown some gains. But, in fact, things seem just about as
they were back in the 1972 election year. Remember, we were
also coming out of a recession then. Inflation has been running
GERALD CUIT ? FORD
Citizens for Reagan Senator Paul Laxalt Chairman Henry M Buchanan Treasurer
A copy of our report is filed with and available for purchase from the Federal Election Commission Washington DC 20463
-2-
at around 6%. Unemployment about 7. Remember, too, the upsurge
and the optimism lasted through the election year and into 1973.
Then, the roof fell in. Once again we had unemployment. Only
this time not 7%, more than 10. And inflation wasn't 6%, it
was 12%.
Now, in this election year 1976, we're told we're coming
out of this recession. Just because inflation and unemployment
rates have fallen, to what they were at the worst of the previous
recession.
If history repeats itself will we be talking recovery
four years from now merely because we've reduced inflation from
25% to 12%?
The fact is, we'll never build a lasting economic recovery
by going deeper into debt at a faster rate than we ever had
before. It took this nation 166 years--until the middle of
World War II--to finally accumulate a debt of $95 billion. It
took this administration just the last 12 months to add $95
billion to the debt. And this administration has run up almost
one-fourth of our total national debt in just these short
nineteen months.
Inflation is the cause of recession and unemployment. And
we're not going to have real prosperity or recovery until we
stop fighting the symptoms and start fighting the disease.
There's only one cause for inflation--government spending more
than government takes in. The cure is a balanced budget. Ah,
but they tell us, 80% of the budget is uncontrollable. It's
FORD LIBRARY is GERALD
-3-
fixed by laws passed by Congress. The laws passed by Congress
can be repealed by Congress. And, if Congress is unwilling to
do this, then isn't it time we elect a Congress that will?
Soon after he took office, Mr. Ford promised he would end
inflation. Indeed, he declared war on inflation. And, we all
donned. those WIN buttons to "Whip Inflation Now." Unfortunately,
the war--if it ever really started--was soon over. Mr. Ford,
without WIN button, appeared on TV, and promised he absolutely
would not allow the Federal deficit to exceed $60 billion (which
incidentally was $5 billion more than the biggest previous
deficit we'd ever had). Later he told us it might be as much
as $70 billion. Now we learn it's $80 billion or more.
&
Then came a White House proposal for a $28 billion tax cut,
to be matched by a $28 billion cut in the proposed spending--not
in present spending, but in the proposed spending in the new
budget. Well, my question then and my question now is, if
there was $28 billion in the new budget that could be cut, what
was it doing there in the first place?
Unfortunately, Washington doesn't feel the same pain from
inflation that you and I do. As a matter of fact, government
makes a profit on inflation. For instance, last July Congress
vaccinated itself against that pain. It very quietly passed
legislation (which the President signed into law) which
automatically now gives a pay increase to every Congressman
every time the cost of living goes up.
FORD is LIBRARY GERALD
-4-
It would have been nice if they'd thought of some arrangement
like that for the rest of us. They could, for example, correct
a great unfairness that now exists in our tax system. Today,
when you get a cost of living pay raise--one that just keeps you
even with purchasing power--it often moves you up into a higher
tax bracket. This means you pay a higher percentage in tax, but
you reduce your purchasing power. Last year, because of this
inequity, the government took in $7 billion in undeserved profit
in the income tax alone, and this year they 11 do even better.
Now isn't it time Congress looked after your welfare as well
as its own?
Those whose spending policies cause inflation to begin
with should be made to feel the painful effect just as you and
I do. Repeal of Congress' automatic pay raise might leave it
with more incentive to do something to curb inflation.
Now, let's look at Social Security. Mr. Ford says he wants
to "preserve the integrity of Social Security. " Well, I differ
with him on one word. I would like to restore the integrity of
Social Security. Those who depend on it see a continual reduction
in their standard of living. Inflation strips the increase in
their benefits. The maximum benefit today buys 80 fewer loaves
of bread than it did when that maximum payment was only $85 a
month. In the meantime, the Social Security payroll tax has
become the most unfair tax any worker pays. Women are discriminated
FORD i LIBRARY GERALD
-5-
against. Particularly, working wives. And, people who reach
Social Security age and want to continue working, should be
allowed to do so and without losing their benefits. I believe
a Presidential commission of experts should be appointed to
study and present a plan to strengthen and improve Social
Security while there's still time--so that no person who has
contributed to Social Security will ever lose a dime.
Before leaving this subject of our economic problems let's
talk about unemployment.
Ending inflation is the only long range and lasting answer
to the problem of unemployment. The Washington Establishment is
not the answer. It's the problem. Its tax policies, its
harassing regulations, its confiscation of investment capital to
pay for its deficits keeps business and industry from expanding
to meet your needs and to provide the jobs we all need.
No one who lived through the Great Depression can ever look
upon an unemployed person with anything but compassion. To me,
there is no greater tragedy than a breadwinner willing to work,
with a job skill but unable to find a market for that job skill.
Back in those dark depression days I saw my father on a Christmas
Eve open what he thought was a Christmas greeting from his boss.
Instead it was a blue slip telling him he no longer had a job.
The memory of him sitting there holding that slip of paper and
then saying in a half whisper "That's quite a Christmas present"--
it will stay with me as long as I live.
FORD is LIBRARY GERALD
-6-
Other problems go unsolved. Take energy. Only a short time
ago we were lined up at the gas station oh We turned our thermostats
down as Washington announced "Project Independence " We were
going to become self-sufficient, able to provide for our own
1974
energy needs.
1974
35%
embargo affected
I
Rpt.
At the time we were only importing a (ch small percentage of
14%
our oil. Yet, the Arab boycott caused half a million Americans
a:s.
Proj.
oh
Oh
ok
to lose their jobs when plants closed down for lack of fuel.
march 1974
Today, it's almost three two years later and "Project Independence" X
has become "Project Dependence. " Congress has adopted an energy
bill so bad we were led to believe Mr. Ford would veto it.
Instead he signed it. And, almost instantly, drilling rigs all
over our land started shutting down. Now, for the X first time in
not
our history, we are impor ting more oil than we produce. How many
1975
Americans
will
be
laid
off
if
there
is
another
boycott?
The
6.0b/d
1975
energy bill is a disaster that never should have been signed.
Prod.
An effort has been made in this campaign to suggest that
1975 8.44
there aren't any real differences between Mr. Ford and myself.
I believe there are, and these differences are fundamental.
One of them has to do with our approach to government. Before
Richard Nixon appointed him Vice President, Mr. Ford was a
Congressman for 25 years. His concern was the welfare of his
congressional district. For most of his adult life he has been
a part of the Washington Establishment.
FORD is LIBRARY GERALD
-7-
Most of my adult life has been spent outside of government.
My experience in government was the eight years I served as
Governor of California. If it were a nation, California would
be the 7th ranking economic power in the world today.
When I became Governor, I inherited a state government that
was in almost the same situation as New York City. The state
payroll had been growing for a dozen years at a rate of from 5
to 7,000 new employees each year. State government was spending
fróm a million to a million-and-a-half dollars more each day
than it was taking in. The State's great water project was
unfinished and underfunded by a half a billion dollars. My
predecessor had spent the entire year's budget for Medicaid in
the, first six months of the fiscal year. And, we learned that the
teachers' retirement fund was unfunded. A four billion dollar
liability hanging over every property owner in the state. I
didn't know whether I'd been elected Governor or appointed
receiver.
California was faced with insolvency and on the verge of
bankruptcy. We had to increase taxes. Well, this came very
hard for me because I felt taxes were already too great a
burden. I told the people the increase, in my mind, was temporary
and that, as soon as we could, we'd return their money to them.
I had never in my life though of seeking or holding public
office and I'm still not quite sure how it all happened. In
my own mind, I was a citizen representing my fellow citizens
against the institution of government.
FORD is LIBRASI GERALD
-8-
I turned to the people, not to politicians for help.
Instead of a committee to screen applicants for jobs, I had a
citizens' recruiting committee, and I told this committee I
wanted an administration made up of men and women who did not
want government careers and who would be the first to tell me
if their government job was unnecessary. And I had that happen.
A young man from the aerospace industry dissolved his department
in four months, handed me the key to this office and told me
we'd never need the department. And to this day, I not only
never missed it, I don't know where it was.
There was a reason for my seeking people who didn't want
government careers. Dr. Parkinson summed it all up in his book
on bureaucracy. He said, "Government hires a rat catcher and
the first thing you know, he's become a rodent control officer."
In those entire eight years, most of us never lost the
feeling that we were there representing the people against what
Cicero once called the "arrogance of officialdom." We had a
kind of watchword we used on each other. "When we begin thinking
of government as we instead of they, we've been here too long."
Well, I believe that attitude would be beneficial in Washington.
We didn't stop with just getting our administrators from
the ranks of the people. We also asked for help from expert
people in a great many fields, and more than 250 of our citizens
volunteered, to form into task forces. They went into every
department and agency of state government to see how modern
FORD & LIBRACT
business practices could make government more efficient,
economical and responsive. They gave an average of 117 days
apiece full time, away from their own jobs and careers. At no cost
to the taxpayers. They made 1,800 specific recommendations. We
implemented more than 1,600 of those recommendations.
This was government-by-the-people proving that it works
when the people work at it. When we ended our eight years, we
turned over to the incoming administration a balanced budget.
A $500 million surplus: And, virtually the same number of
employees we'd started with eight years before. Even though the
increase in population had given some dpeartments a two-thirds
increase in work load.
The water project was completed with $165 million left over.
Our bonds had a triple A rating, the highest credit rating you
can get. And the teachers' retirement program was fully funded
on a sound actuarial basis. And, we kept our word to the
taxpayers-we returned to them in rebates and tax cuts, $5 billion,
761 million.
I believe that what we did in California can be done in
Washington if government will have faith in the people and let
them bring their common sense to bear on the problems bureaucracy
hasn't solved. I believe in the people.
Now, Mr. Ford places his faith in the Washington Establish-
ment. This has been evident in his appointment of former
Congressmen and long-time government workers to positions in his
FORD is LIBRARY GERALD
-10-
Administration. Well, I don't believe that those who have been
part of the problem are necessarily the best qualified to solve
them.
The truth is, Washington has taken over functions that
don't truly belong to it. In almost every case it has been a
failure. Understand, I'm speaking of those programs which logically.
should be administered at state and local levels.
Welfare is a classic example. Voices that are raised now
and then urging a federalization of welfare don't realize that
the failure of welfare is due to federal interference. Washington
doesn't even know how many people are on welfare. How many
cheaters are getting more than one check. It only knows how
many checks it's sending out. Its own rules keep it from finding
out how many are getting more than one check. Well, California
had a welfare problem. 16% of oh all welfare recipients in the
country were drawing their checks in our state. We were sending
on
welfare checks to families who decided to live abroad. One
oh
family was receiving its check in Russia. Our caseload was
oh
increasing by 40,000 people a month. After a few years of
trying to control this runaway program and being frustrated by
bureaucrats here in California and in Washington, we turned again
to a citizens' task force. The result was the most comprehensive
welfare reform ever attempted.
And in less than three years we reduced the rolls by more
than 300,000 people. Saved the taxpayers $2 billion. And,
X
FORD i LIBRARY
-11-
increased the grants to the truly deserving needy by an average
of 45%. We also carried out a successful experiment which I
believe is an answer to much of the welfare problem in the nation.
We put able-bodied welfare recipients to work at useful community
projects in return for their welfare grants
Now, let's look at housing. Washington has tried to solve
this problem for the poor by building low-cost houses. So far.
it has torn down three and a half homes for every one it has
built.
Schools. In America, we created at the local level and
administered at the local level for many years the greatest
public school system in the world. Now through something called
federal aid to education, we have something called federal
interference and education has been the loser. Quality has
declined as federal intervention has increased.
Nothing has created more bitterness for example than forced
busing to achieve racial balance. It was born of a hope that we
could increase understanding and reduce prejudice and antagonism.
I'm sure we all approved of that goal. But busing has failed to
achieve that goal. Instead, it has increased the bitterness and
animosity it was supposed to reduce. California's Superintendent
of Public Instruction, Wilson Riles (himself a black), says,
"The concept that black children can't learn unless they are
sitting with white children is utter and complete nonsense."
Well, I agree. The money now being wasted on this social
experiment could be better spent to provide the kind of school
GERALD FORD LIBRARY
-12-
facilities every child deserves. Forced busing should be ended
by legislation if possible. By constitutional amendment if
necessary. And, control of education should be returned to local
school districts.
The other day, Mr. Ford came out against gun control. But,
back in Washington, D.C., his Attorney General has proposed a
seven-point program that amounts to just that: gun control.
I don't think that making it difficult for law abiding citizens
to obtain guns will lower the crime rate. Not when the criminals
will always find a way to get them. In California I think we
found an answer. We put into law what is practical gun control.
Anyone convicted of having a gun in his possession while he
committed a crime: add five to 15 years to the prison sentence.
Sometimes bureacracy's excesses are so great that we
laugh at them. But they are costly laughs. Twenty-five years
ago the Hoover Commission discovered that Washington files a
million reports a year just reporting that there is nothing to
report.
Independent business people, shopkeepers and farmers file
billions of reports every year required of them by Washington.
It amounts to some 10 billion pieces of paper each year and it
adds $50 billion a year to the cost of doing business. Washington
has been loud in its promise to do something about this blizzard
of paperwork. And they made good. Last year they increased it
by 20%.
LIBRARY GERALD ? FORD
-13-
But there is one problem which must be solved or everything
else is meaningless. I am speaking of the problem of our national
security. Our nation is in danger, and the danger grows greater
with each passing day. Like an echo from the past, the voice of
Winston Churchill's grandson was heard recently in Britain's
House of Commons warning that, "the spread of totalitarianism
threatens the world once again and the democracies are wandering
without aim."
"Wandering without aim" describes U.S. foreign policy.
Angola is a case in point. We gave just enough support to one
side to encourage it to fight and die but too little to give
them a chance of winning. Now we're disliked by the winner,
distrusted by the loser and viewed by the world as weak and unsure.
If detente were the two-way street it's supposed to be, we could
have told the Soviet Union to stop its troublemaking and leave
Angola to the Angolans. But it didn't work out that way.
Now, we are told Washington is dropping the word "detente"
but keeping the policy. But whatever it's called, the policy is
what's at fault. What is our policy? Mr. Ford's new Ambassador
to the U.N. attacks our long-time ally, Israel. In Asia our new
relationship with mainland China can have practical benefits for
both sides. But that doesn't mean it should include yielding to
demands by them as the administration has, to reduce our military
presence on Taiwan where we have a long-time friend and ally, the
Republic of China. And, it is also revealed now that we seek
to establish friendly relations with Hanoi. To make it more
FORD & GERALD LIBRARY
-14-
palatable, we are told this might help us learn the fate of
the men still listed as Missing in Action.
There is no doubt our government has an obligation to end
the agony of parents, wives and children who have lived so long
with uncertainty. But, this should have been one of our first
demands of Hanoi's patron saint, the Soviet Union, if detente
had any meaning at all. To present it now as a reason for
friendship with those who have already violated their promise to
provide such information is hypocrisy.
In the last few days, Mr. Ford and Dr. Kissinger have taken
us from hinting at invation of Cuba to laughing it off as a
ridiculous idea. Except, that it was their ridiculous idea. No
one else suggested it. Once again--what is their policy? During
this last year, they carried on a campaign to befriend Castro.
They persuaded the Organization of American States to lift its
trade embargo, lifted some U.S. trade restrictions, they engaged
in cultural exchanges. And then, on the eve of the Florida
primary election, Mr. Ford went to Florida, called Castro an
outlaw and said he'd never recognize him. But he hasn't asked our
Latin American neighbors to reimpose a single sanction, nor has
he taken any action himself. Meanwhile, Castro continues to
export revolution to Puerto Rico, to Angola, and who knows where
else?
As I talk to you tonight, negotiations with another dictator
go forward. Negotiations aimed at giving up our ownership of the
FORD i LIBRARY
-15-
Panama Canal Zone. Apparently, everyone knows about this except
the rightful owners of the Canal Zone--you, the people of the
United States.
General Omar Torrijos, the dictator of Panama, seized power
eight years ago by ousting the duly-elected government. There
have been no elections since. No civil liberties. The press
is censored. Torrijos is a friend and ally of Castro and, like
him, is pro-communist. He threatens sabotage and guerrilla
attacks on our installations if we don't yield to his demands.
His foreign minister openly claims that we have already agreed
in principle to giving up the Canal Zone.
The Canal Zone is not a colonial possession. It is not
a long-term lease. It is sovereign U.S. Territory every bit
the same as Alaska and all the states that were carved from the
Louisiana Purchase. We should end those negotiations and tell
the General: We bought it, we paid for it, we built it and we
intend to keep it.
Mr. Ford says detente will be replaced by "peace through
strength." Well, now that slogan has a nice ring to it, but
neither Mr. Ford nor his new Secretary of Defense will say that
our strength is superior to all others.
In one of the dark hours of the Great Depression, F.D.R.
said, "It is time to speak the truth frankly and boldly.' I
believe former Secretary of Defense James Schlesinger was trying
to speak the truth frankly and boldly to his fellow citizens.
And that's why he is no longer Secretary of Defense.
FORD & 078870 LIBRARY
-16-
The Soviet Army outnumbers ours more than two-to-one and
in reserves four-to-one. They out-spend us on weapons by 50%.
Their Navy outnumbers ours in surface ships and submarines
two-to-one. We are outgunned in artillery three-to-one and their
tanks outnumber ours four-to-one. Their strategic nuclear missiles
are larger, more powerful and more numerous than ours. The evidence
mounts that we are Number Two in a world where it is dangerous,
if not fatal, to be second best.
Is this why Mr. Ford refused to invite Alexander Solzhenitsyn
to the White House? Or, why Mr. Ford traveled halfway 'round the
world to sign the Helsinki Pact, putting our stamp of approval
on Russia's enslavement of the captive nations? We gave away
the freedom of millions of people--freedom that was not ours to
give.
Now we must ask if someone is giving away our own freedom.
Dr. Kissinger is quoted as saying that he thinks of the U.S. as
Athens and the Soviet Union as Sparta. "The day of the U.S. is
past and today is the day of the Soviet Union." And he added,
" My job as Secretary of State is to negotiate the most
acceptable second-best position available."
I believe in the peace of which Mr. Ford spoke--as much
as any man. But peace does not come from weakness or from
retreat. It comes from the restoration of American military
superiority.
FORD is BERALD LIBRARY
-17-
Ask the people of Latvia, Estonia, Lithuania, Czechoslovakia,
Poland, Hungary and all the others--East Germany, Bulgaria,
Rumania, ask them-what it's like to live in a world where the
Soviet Union is Number One. I don't want to live in that kind of
world; and I don't think you do either.
Now we learn that another high official of the State
Department, Helmut Sonnenfeldt, whom Dr. Kissinger refers to as
his "Kissinger," has expressed the belief that, in effect, the
captive nations should give up any claim of national sovereignty
and simply become a part of the Soviet Union. He says, "Their
desire to break out of the Soviet straightjacket" threatens us
with World War III. In other words, slaves should accept their
fate.
I don't believe the people I've met in almost every State
of the Union are ready to consign this, the last island of freedom,
to the dustbin of history, along with the bones of dead civilizations
of the past. Call it mysticism, if you will, but I believe God
had a divine purpose in placing this land between the two great
oceans to be found by those who had a special love of freedom and
the courage to leave the countries of their birth. From our
forefathers to our modern-day immigrants, we've come from every
corner of the earth, from every race and ethnic background and
we've become a new breed in the world. We're Americans and we
have a rendezvous with destiny. We spread across this land,
building farms and towns and cities, and we did this without
federal land planning or urban renewal.
FORD & GERALD LIBRARY
-18-
Indeed, we gave birth to an entirely new concept in man's
relation to man. We created government as our servant, beholden
to us and possessing no powers except those voluntarily granted
to it by us.
Now a self-annointed elite in our nation's capital would
have us believe we are incapable of guiding our own destiny.
They practice government by mystery, telling us it's too complex
for our understanding. Believing this, they assume we might
panic if we were to be told the truth about our problems.
Why should we become frightened? No people who have ever
lived on this earth have fought harder, paid a higher price for
freedom or done more to advance the dignity of man than the
living Americans, the Americans living in this land today. There
isn't any problem we can't solve if government will give us the
facts. Tell us what needs to be done. Then, gets out of the
way and lets us have at it.
Recently on one of my campaign trips I was doing a question
and answer session, and suddenly I received a question from a
little girl who couldn't have been over six or seven years old,
standing in the very front row. I'd heard the question before
but somehow in her asking it, she threw me a little bit. She said,
why do you want to be President? Well I tried to tell her about
giving government back to the people; I tried to tell her about
turning authority back to the states and local communities, and
so forth; winding down the bureaucracy; it might have been an
GERALD P. FORD
answer for adults, but I knew that it wasn't what that little
r
girl wanted, and I left very frustrated. It was on the way to
-19-
the next stop that I turned to Nancy and I said I wish I had it
to do over again because I'd like to answer her question. Well,
maybe I can answer it now. I would like to go to Washington;
I would like to be President. Because I would like to see this
country become once again a country where a little six-year old
girl can grow up knowing the same freedom that I knew when I was
six years old, growing up in America. If this is the America
that you want for yourself and your children; if you want to
restore governmènt not only of and for but by the people; to
see the American spirit unleashed once again; to make this land
a shining, golden hope God intended it to be, I'd like to hear
from you. Write, or send a wire. I'd be proud to hear your
thoughts and your ideas.
Thank you, and good night.
(END)
FORD i LIBRARY GERALD
48.71
ERRORS IN CANDIDATE REAGAN'S
SPEECH OF MARCH 31, 1976
REAGAN STATEMENT:
page 1, paragraph 3
"In this election season the White House in telling us
a solid economic recovery is taking place. It claims
a slight drop in unemployment. It says that prices
aren't going up as fast, but they are still going up,
and that the stock market has shown some gains. But,
in fact, things seem just about as they were back in
the 1972 election year. Remember, we were also
coming out of a recession then. Inflation has been
running at around 6%. Unemployment about 7%.
Remember, too, the upsurge and the optimism lasted
through the election year and into 1973. And then,
the roof fell in. Once again we had unemployment. Only
this time not 7%, more than 10. And inflation -- wasn't
6%, it was 12%. "
RESPONSE:
The peak of unemployment -- 8.9% - - was reached in May, 1975.
Latest unemployment figures -- March, 1976 -- show the rate was
7.5%. The employment is now at an all time high with 86.7
million at work. This exceeds the pre-recession peak of
July, 1974 and is a 2.6 million gain since March '75.
Prices are not going up as fast. Inflation in 1974 was at an annual
rate of over 12 percent. Today it is running at an annual rate of
about 6 percent.
In 1972 we were further into recovery than we are today. But
Mr. Reagan's statistical facts concerning 1973-74 are incorrect.
The peak unemployment figure was reached in May, 1975 at
8.9%. It never reached 10% as he states.
FORD & LIBRARY GERALD
REAGAN STATEMENT:
Page 2, paragraph 2
"Now, in this election year 1976, we're told we're
coming out of this recession. Just because inflation
and unemployment rates have fallen to what they were
at the worst of the previous recession. If history
repeats itself will we be talking recovery four years
from now merely because we've reduced inflation from
25% to 12%. "
RESPONSE:
All of the figures -- retail sales, GNP, durable goods, housing,
personal income, etc. clearly show we are moving out of the
recession -- the Administration's statements are not based merely
on improved unemployment and cost-of-living statistics as Mr.
Reagan implies.
FORD & LIBRARY GERALD
REAGAN STATEMENT:
Page 2, paragraph 3
"The fact is, we'll never build a lasting economic
recovery by going deeper into debt at a faster rate
than we ever have before. It took this nation 166
years -- until the middle of World War II -- to
finally accumulate a debt of $95 billion. It took
this administration just the last 12 months to add
$95 billion to the debt. And this administration
has run up almost one-fourth of our total national
debt in just these short nineteen months."
RESPONSE
The national debt reached $72 billion in 1942. The current
estimated deficit for FY 1976 is $76.9 billion. Gross federal
debt for FY 1976 is estimated at $634 billion. Thus the
administration's share of the national debt is 15.6%, not 25%.
FORD is LIBRARY QERALD
REAGAN STATEMENT:
Page 2, paragraph 4
"Inflation is the cause of recession and unemployment.
And we're not going to have real prosperity or recovery
until we stop fighting the symptoms and start fighting
the disease. There's only one cause for inflation --
government spending more than government takes in.
The cure is a balanced budget. Ah, but they tell us,
80% of the budget is uncontrollable. It's fixed by laws
passed by Congress."
RESPONSE:
The President has offered specific plans for a balanced budget.
But a large part of the cause of the current recession is the
result of past fiscal policies, rapid increases in federal expendi-
tures. There is no quick remedy for problems created a decade
ago. A rapid return to a balanced budget, as Mr. Reagan calls
for, would provide fuel for inflation, but at the same time, it
would mean a long delay in recovery and much longer period of
high unemployment.
The budget for FY 1977 estimates that 77. 1% of the budget is
uncontrollable.
FORD is LIBRAR 03RALD
REAGAN STATEMENT:
page three, last two sentences of top paragraph
"But laws passed by Congress can be repealed by
Congress. And, if Congress is unwilling to do this,
then isn't it time we elect a Congress that will?"
RESPONSE:
The open-ended or uncontrollable programs call for outlays of
$383.1 billion in FY 1977. $236.8 billion is allocated to payments
for individuals. Does Mr. Reagan want to repeal the following:
Social Security and Railroad Retirement -- $108.0 billion
Federal Employees Retirement Benefits -- $22.9 billion
Veterans Benefits -- $16.3 billion
Medicare and Medicaid -- $38.4 billion
Public Assistance Programs -- $26.0 billion
FORD & LIBRARY GERALD
REAGAN STATEMENT:
Page 3, paragraph 2
"Soon after he took office, Mr. Ford promised he
would end inflation. Indeed, he declared war on
inflation. And, we all donned those WIN buttons to
"Whip Inflation Now. " Unfortunately, the war --
if it ever really started -- was soon over. Mr.
Ford, without WIN button, appeared on TV, and
promised he absolutely would not allow the Federal
deficit to exceed $60 billion (which incidentally was
$5 billion more than the biggest previous deficit
we'd ever had). Later he told us it might be as
much as $70 billion. Now we learn it's $80 billion
or more. "
RESPONSE:
The President did draw a line at a deficit of $60 billion on March 29,
1975 in a televised address. The largest single yearly deficit occur-
red in 1943 - - $54.8 billion. The difference between $54.8 billion
and $60 billion is, of course, $5.2 billion. The current estimated
deficit for FY 76 is not $80 billion or more, it is $76.9 billion.
FORD & LIBRARY GERALD
REAGAN STATEMENT:
Page 3, paragraph 3
"Then came a White House proposal for a $28 billion
tax cut, to be matched by a $28 billion cut in the
proposed spending -- not in the present spending, but
in the proposed spending in the new budget. Well, my
question then and my question now is, if there was
$28 billion in the new budget that could be cut, what
was it doing there in the first place?"
RESPONSE
The proposed $28 billion cut is a cut in the anticipated $56
billion year-to-year increase in Federal spending that would
take place unless strong measures are taken. The President
has proposed the reform measures needed to accomplish this
objective; cutting in half the growth rate of federal spending
and making it possible to give the American people further tax
cuts.
FORD i LIBRARY GERALD
REAGAN STATEMENT:
Page 4, paragraph 1
"It would have been nice if they'd thought of some
arrangement like that for the rest of us. They could,
for example, correct a great unfairness that now
exists in our tax system. Today, when you get a
cost-of-living pay raise -- one that just keeps you
even with purchasing power -- it often moves you
up into a higher tax bracket. This means you pay
a higher percentage in tax but you reduce your pur-
chasing power. Last year, because of this inequity,
the government took in $7 billion in undeserved pro-
fit in the income tax alone, and this year they'
do even better. Now isn't it time that Congress
looked after your welfare as well as its own?"
RESPONSE:
Inflation does indeed increase taxes. The President has recognized
this and has been successful in reducing the inflation rate by 50%.
He has also proposed curbing the rise in expenditures and matched
this with a comparable tax cut.
FORD is LIBRARY GERALD
REAGAN STATEMENT:
Page 5, paragraph 3
"Ending inflation is the only long range and lasting
answer to the problem of unemployment. The Wash-
ington Establishment is not the answer. It's the
problem. Its tax policies, its harassing regulations,
its confiscation of investment capital to pay for its
deficits keeps business and industry from expanding
to meet your needs and to provide the jobs we all
need. 11
RESPONSE:
The President's economic policies are anti-inflationary. He has
vetoed 46 bills and saved the taxpayers $13 billion. (Source: OMB)
Monetary expansion is now far more restrained than in 1972. Over
the last six months, the broadly defined money supply has grown
at an 8.6% annual rate. In the comparable September 1971-
March 1972 period, it grew at a 14.6% rate. It should be noted
that a 14.6% rate is well above the 10.5% upper limit of the
Federal Reserve's present target range.
Wholesale prices increased 12.5% from March 1974-March 1975,
while the price index went up only 5.5% between March 1975 and
March 1976.
Employment reached an all-time high of 86.5 million in February.
New orders for manufactured goods were up 2.4 percent in
February.
FORD & LIBRARY
REAGAN STATEMENT:
Page 6, paragraph 2
"At the time we were only importing a small percentage
of our oil. Yet, the Arab boycott caused half a million
Americans to lose their jobs when plants closed down for
lack of fuel. Today, it's almost three years later and
"Project Independence" has become "Project Dependence. "
Congress has adopted an energy bill so bad we were led
to believe Mr. Ford would veto it. Instead he signed it.
And, almost instantly, drilling rigs all over our land
started shutting down. Now, for the first time in our
history, we are importing more oil than we produce. How
many Americans will be laid off if there is another
boycott? The energy bill is a disaster that never should
have been signed."
RESPONSE:
Candidate Reagan stated we were only importing a small percentage
of our oil when the Arab oil embargo occurred in 1974. In fact,
we were already importing 35% of our petroleum needs. The
amount of oil that we imported during 1975 was 6.0 mb/d, and
we produced 8. 4mb/d.
The Energy Policy and Conservation Act passed by the Congress
in December ended a year-long debate between the Congress
and the Administration on oil pricing policy and opened the way to
an orderly phasing out of controls on domestic oil over forty
months, thereby stimulating our own oil production. By removing
controls, this bill should give industry sufficient incentive over
a period of time to explore, develop and produce new fields in
the outer continental shelf, Alaska, and potential new reserves
in the lower forty-eight states. Removal of these controls at
the end of forty months should increase domestic production by
more than one million barrels per day by 1985 and reduce imports
by about three million barrels per day.
The average number of active rotary drilling rigs in March 1976
was approximately 270 less than in December 1975 which was the
highest level since 1962. Except for the two years after the
embargo, this First Quarter downturn reflects a normal seasonal
trend. Further, preliminary estimates indicate that 1976 invest-
ments by the petroleum industry in production and development
activities will exceed those of 1975.
FORD & LIBRARY GERALD
REAGAN STATEMENT: (continued)
Page 6, paragraph 2
RESPONSE: (continued)
More importantly, this bill enables the United States to meet
a substantial portion of the mid-term goals for energy independence
set forth over a year ago. Incorporated in this are authorities
for a strategic storage system, conversion of oil and gas-fired
utility and industrial plants to coal, energy efficiency labeling,
emergency authorities for use in the event of another embargo,
and the authority we need to fulfill our international agreements
with other oil consuming nations. These provisions will directly
reduce the nation's dependency on foreign oil by almost two
million barrels per day by 1985. In addition, the strategic
storage system and the stand-by authorities will enable the United
States to withstand a future embargo of about four million barrels
per day.
Oil rigs didn't begin shutting down. There were 1660 drilling
rigs operating in 1975, the highest number in a decade. Through
mid-March 1976, there were as many rigs operating as were
operating in the comparable period during '75.
FORD & 9EFALD LIBRARY
REAGAN STATEMENT:
Page 7, paragraph 2
"When I became Governor, I inherited a state govern-
ment that was in almost the same situation as New
York City. The state payroll had been growing for
a dozen years at a rate of from 5 to 7,000 new
employees each year. State government was spend-
ing from a million to a million and a half dollars
more each day than it was taking in. The State's
great water project was unfinished and underfunded
by a half a billion dollars. My predecessor had
spent the entire year's budget for Medicaid in the
first six months of the fiscal year. And, we learned
that the teachers' retirement fund was unfunded. A
four billion dollar liability hanging over every prop-
erty owner in the state. I didn't know whether I'd
been elected Governor or appointed receiver."
RESPONSE:
The bonded indebtedness of California at $4 billion does not compare
to New York City's current problem.
The State payroll increased from 113, 779 in 1967 to 127,929 in 1973.
The state budget more than doubled under Ronald Reagan. From
$4.6 billion in 1967 to $10.2 billion in 1973.
FORD & GERALD LIBRARY
REAGAN STATEMENT:
Page 7, paragraph 3
Page 9, paragraph 2
"California was faced with insolvency and on the verge
of bankruptcy. We had to increase taxes. Well,
this came very hard for me because I felt taxes
were already too great a burden. I told the people
the increase, in my mind, was temporary and that,
as soon as we could, we'd return their money to
them.
"This was government-by-the-people proving that it
works when the people work at it. When we ended
our eight years, we turned over to the incoming
administration a balanced budget. A $500 million
surplus. And, virtually the same number of employees
we'd started with eight years before. Even though the
increase in population had given some departments a
two-thirds increase in work load."
RESPONSE:
The number of state employees increased from 113, 779 in 1967
to 127,929 in 1975. Under Reagan, there were three huge tax
increases totalling more than $2 billion.
In 1967, there was an increase of $967 million, the largest state
tax hike in the nation's history. Of this, $280 million went for
one-time deficit payment and state property tax relief. In 1971,
the increase was $488 million with $150 million for property tax
relief. In 1972, an increase of $682 million with $650 million for
property tax relief. Much of this property tax relief was short
term, but the overall tax increases were permanent.
State personal income tax revenues went from $500 million to
$2.5 billion, a 500% increase. Taxable bracket levies were in-
creased from 7% to 11%. The size of the brackets was reduced
so that taxpayers reached the highest bracket morequickly and
FORD is LIBRARY 038970
Page 7, paragraph 3 and Page 9, paragraph 2 (continued)
personal exemptions were reduced. Finally, after he adamantly
denied that he would ever do so, the Governor agreed to a system
of withholding state income taxes.
Bank and corporation taxes went up 100%. The state sales tax
rose from 4% to 6%. The tax on cigarettes went up 7 cents a
pack and the liquor tax rose 50 cents per gallon. Inheritance
tax rates were increased and collections more than doubled.
Under Reagan, the average tax rate for each $100 of assessed
valuation rose from $8.84 to $11.15. Under predecessor Pat
Brown, the increase was much less in dollars and percentage --
from $6.96 to $8.84, and in the six years of Republican Knight's
administration, it was still less -- from $5.94 to $6.96. One
reason for the big increase under Reagan -- from $3.7 billion to
$8.3 billion -- is that the state paid a steadily smaller per-
centage of the school costs -- one of the biggest reasons for
local property taxes.
Despite periodic efforts to provide relief, there has been a sub-
stantial increase in the burden carried by most property owners.
Inflation and high assessments have helped wipe out any savings.
Only $855 million of the record $10.2 billion budget in Reagan's
final year was for tax relief for homeowners and renters.
FORD is LIBRARY 074830
REAGAN STATEMENT:
Page 10, paragraph 4
"And in less than three years we reduced the rolls by
more than 300,000 people. Saved the taxpayers $2
billion. "
RESPONSE:
Substitute for 300,000 and $2 billion the following:
1. Drop by 20,000 persons in rolls due to correction in
accounting procedures in largest county, Los Angeles.
2. Migratory rate of unemployed into California declined
from 233,000 in 1967 to 44,000 in 1971.
3. 110,000 decline in rolls attributed to Reagan even
though his welfare program had not gone into effect
when decline occurred.
4. Rolls for welfare families increased in 8 years of
Reagan's Governorship from 729,357 to 1,384,400
and their state expenditures went from $408 million
to $995 million.
FORD i 074870 LIBRARY
REAGAN STATEMENT:
Page 11, top sentence
"And, increased the grants to the truly deserving needy
by an average of 43%. We also carried out a successful
experiment which I believe is an answer to much of the
welfare problem in the nation. We put able-bodied welfare
recipients to work at useful community projects in return
for their welfare grants."
RESPONSE:
The average payment of the AFDC in 1970 was $193.00 per family;
in 1974, it was $239.00. The average payment for Old Age
Assistance in 1970 was $117.00 per person; in 1974, the average
payment was $129.00 per person.
The program never touched more than 6/10th of 1% of welfare
recipients. Also, the program was designed to have 59,000
participants in the first year in 35 counties, but it managed
only 1,100 participants in 10 counties in mostly rural farm
areas.
In May 1974 the California Auditor General found that 262
participants found regular work as a result of the program at a
cost of $1.5 million. This amounts to $6,000 in overhead costs
plus regular welfare costs for each person placed in regular
employment.
In 1974, because the program was a complete failure, it was
repealed by the Legislature.
FORD i GERALD LIBRARY
REAGAN STATEMENT:
page 12, paragraph 4
"Independent business people, shopkeepers and farmers file
billions of reports every year required of them by Washington.
It amounts to some 10 billion pieces of paper each year and
it adds $50 billion a year to the cost of doing business.
Washington has been loud in its promise to do something
about this blizzard of paperwork. And they made good.
Last year they increased it by 20%. 11
RESPONSE:
The figures 10 billion and 50 billion are guestimates. No one has
counted the number of pages in all of these reports. Moreoever,
if it is liberally estimated that it costs $100 an hour to work on these
forms, the total cost to business would be $4.3 billion.
Between December, 1974 and December, 1975, the number of reports
from the Executive branch agencies excluding IRS, banking and
regulatory agencies declined by 5%. However, the number of hours
of burden associated with filling out the reports required by the
Congress, i.e., the Real Estate Settlements Act which requires
information to be filed when a house is sold added 4 million manhours
of reporting burden last year. In the absence of that report the
reporting burden would have declined. There are other reports
mandated by Congress which have added to this burden.
FORD & LIBRARY
REAGAN STATEMENT:
Page 13, paragraph 2
"We gave just enough support to one side in Angola to
encourage it to fight and die but too little to give it a
chance of winning."
RESPONSE:
The U.S. objective in supporting the FNLA/UNITA forces in
Angola was to assist them, and through them all of black Africa,
to defend against a minority faction supported by Soviet arms and
Cuban intervention. Despite massive Soviet aid and the presence
of Cuban troops there was a good chance for a satisfactory outcome
in Angola until December 19 when Congress adopted the Tunney
Amendment cutting off further U.S. aid to the FNLA and UNITA.
FORD is GERALD LIBRARY
REAGAN STATEMENT:
Page 13, paragraph 3
"In Asia our new relationship with mainland China can
have practical benefits with both sides. But that doesn't
mean it should include yielding to demands by them as
the Administration has, to reduce our military presence
on Taiwan where we have a long-time friend and ally,
the Republic of China. 11
RESPONSE:
We have not reduced our forces on Taiwan as a result of
Peking's demands. Instead, our reductions stem from our own
assessment of U.S. political and security interests. We have
drawn our forces down because the Vietnam conflict has ended
and because the lessening of tension in the area brought about
by our new relationship with the People's Republic of China
has made it possible.
FORD & LIBRARY
REAGAN STATEMENT:
Page 13, paragraph 3
"Mr. Ford's new Ambassador to the United Nations
attacks our long time ally Israel. 11
RESPONSE:
Governor Scranton not only did not attack Israel, his veto blocked
an unbalanced Security Council Resolution critical of Israel - - a
resolution that every other member of the Security Council voted
for. In his March 23 speech in the United Nations Security Council
Governor Scranton was simply reiterating long-standing U.S.
policy -- a policy articulated by every Administration since 1967 - -
on Israel's obligations as an occupying power under international
law with regard to the territories under its occupation.
FORD & LIBRARY GERALD
REAGAN STATEMENT:
Page 13-14, paragraph 3
"And it is also revealed now that we seek to establish
friendly relations with Hanoi. To make it more palatable,
we are told this might help us learn the fate of the men
still listed as Missing in Action. 11
RESPONSE:
The Congress, reflecting the desire of the American people and
the Administration for an accounting of our Missing in Action and
the return of the bodies of dead servicemen stil held by Hanoi
has urged the Administration to make a positive gesture toward
Hanoi in an effort to obtain such information. The Administration,
in keeping with this Congressional mandate, has offered to discuss
with Hanoi the significant outstanding issues between us. We have
not said we 'seek to establish friendly relations with Hanoi. I Such
an assertion is totally false.
FORD & GERALD LIBRARY
REAGAN STATEMENT:
Page 14, paragraph 2
"In the last few days, Mr. Ford and Dr. Kissinger have
taken us from hinting at invasion of Cuba to laughing it
off as a ridiculous idea. Except, that it was their
ridiculous idea. No one else suggested it. Once again --
what is their policy? During this last year, they carried
on a campaign to befriend Castro. They persuaded the
Organization of American States to lift its trade embargo,
lifted some U.S. trade restrictions, they engaged in
culture exchanges. And then on the eve of the Florida
primary election, Mr. Ford went to Florida, called
Castro an outlaw and said he'd never recognize him.
But he hasn't asked our Latin American neighbors to reimpose
a single sanction, nor has he taken any action himself.
Meanwhile, Castro continues to export revolution to
Puerto Rico, to Angola, and who knows where else?
RESPONSE:
We did not persuade the OAS to lift the sanctions against Cuba.
At Quito in the fall of 1974 we did not support a motion in the
OAS to do SO. At San Jose last summer the U.S. voted in favor
of an OAS resolution which left to each country freedom of action
with regard to the sanctions. We did so because a majority of
the OAS members had already unilaterally lifted their sanctions
against Cuba, and because the resolution was supported by a
majority of the organization members. Since that resolution
passed, no additional Latin American country has established
relations with Cuba.
The U.S. did not lift its own sanctions against Cuba, did not
enter into any agreements with Cuba, and did not trade with Cuba.
We did not engage in cultural exchanges. We validated some
passports for U.S. Congressmen and their staffs, for some
scholars and for some religious leaders to visit Cuba. We issued
a few select visas to Cubans to visit the U.S.. These minimal
steps were taken to test whether there was a mutual interest in
ending the hostile nature of our relations. This policy was
consistent with the traditional American interest in supporting
the free flow of ideas and people. We have, since the Cuban
GERALD FORD LIBRARY
adventure in Angola, concluded that the Cubans are not interested
in changing their ways. We have resumed our highly restrictive
policies toward Cuban travel. With regard to Cuban efforts to
interfere in Puerto Rican affairs, we have made it emphatically clear
REAGAN STATEMENT: (continued)
Page 14, paragraph 2
RESPONSE: (continued)
in the UN and bilaterally to the Cubans and other nations that
the U.S. will not tolerate any interference in its internal affairs.
FORD & GERALD LIBRARY
REAGAN STATEMENT:
Page 15, paragraph 3
"The Canal Zone is not a colonial possession. It is not
a long-term lease. It is sovereign U.S. territory every
bit the same as Alaska and all the states that were carved
from the Louisiana Purchase. We should end those
negotiations (on the Panama Canal) and tell the General:
We bought it, we paid for it, we built it and we intend
to keep it. 11
RESPONSE:
Negotiations between the United States and Panama on the Canal
have been pursued by three successive American Presidents.
The purpose of these negotiations is to protect our national
security, not diminish it.
Finally, Governor Reagan's view that the Canal Zone is "sovereign
U. S. territory every bit the same as Alaska and all the states
that were carved from the Louisiana Purchase" is incorrect.
Legal Scholars have been clear on this for three-quarters of a
century. Unlike children born in the United States, for example,
children born in the Canal Zone are not automatically citizens
of the United States.
FORD is GERALD LIBRARY
REAGAN STATEMENT:
Page 16, paragraph 1
"The Soviet Army outnumbers ours more than two-to-one
and in reserves four-to-one. They out-spend us on
weapons by 50%. Their Navy outnumbers ours in surface
ships and submarines two-to-one. We are outgunned in
artillery three-to-one and their tanks outnumber ours
four-to-one. Their strategic nuclear missiles are larger,
more powerful and more numerous than ours. The
evidence mounts that we are Number Two in a world
where it is dangerous, if not fatal, to be second best."
RESPONSE:
Our nation is not "in danger, 11 but it is damaging to the interests
of this country when a politician declare to our adversaries and
our friends abroad -- falsely -- that we are in second place.
Such statements are both irresponsible and dangerous in that
they alarm our people and confuse our allies.
It is meaningless to say the Soviet Army may now be twice the
size of the U.S. Army when about half of the Soviet Army is
deployed on the Chinese border. More meaningful is the Soviet
Army strength in Europe. Such rhetoric based on simplistic
factural comparisons indicate a disturbingly shallow grasp of what
true balance is all about.
Mr. Reagan conveniently neglects to point out that our strategic
forces are superior to Soviet forces. Our missiles are far.
more accurate and survivable. We have over twice as many
missile warheads and, after all, it is the warheads which actually
reach the target. Our lead in this area has been increasing over
the past several years. Mr. Reagan likewise ignores our vast
superiority in strategic bombers.
Addressing the implication that the President has tolerated a weak
defense policy, President Ford is the one who reversed the trend
of shrinking defense budgets. His last two defense budgets are
the highest peacetime budgets in the nation's history. Mr. Reagan
might better speak to the Democratic Congress about its $32
billion cuts in defense over the past six years.
Examining in more detail the question of America's strength first, R. FORD
we must dispose of the numbers game. If national defense were
NO
a
GERAL
LIBRARY
REAGAN STATEMENT: (continued)
Page 16, paragraph 1
RESPONSE: (continued)
matter of bookkeeping we could point out that:
- Our missile warheads have tripled;
- We lead the Soviet Union by more than two-to-one;
- We have over a three-to-one lead in strategic
bombers;
- Our missiles are twice as accurate as the Soviet
Union's.
But it is a disservice to the American people to confuse them
with any such numbers comparison. Two important facts are
ignored by Governor Reagan.
First, the United States stands at the head of a great Alliance
system in Europe, and we are firmly tied to the strongest
economic power in Asia. We have friendly relations with most
of the nations of the world. These relations are the product
of our longtime bipartisan foreign policy and the valuable
accomplishments of all of our previous Administrations since
President Truman.
Second, we cannot ignore that whatever might be the balance
of power today, it is not fixed. In our military programs and
our defense budgets, we are indeed looking to the future to
guarantee that this nation will never be in danger.
In our defense programs many new programs insure our position
of strength:
- - We are proceeding with the development and production
of the world's most modern strategic bomber, the B-1.
- We are proceeding with the development and production
of the world's most modern and lethal missle launching
submarine, the Trident.
We are developing a new large ICBM.
GERALD R. FORD LIBRARY
REAGAN STATEMENT: (continued)
Page 16, paragraph 1
RESPONSE: (continued)
-- We are producing three new fighters.
-- We are planning the production of 15 new fighting ships.
It is true a figure that can be cited to show that the Soviets have
more ships, but it is a distortion to equate Soviet destroyers with
our modern nuclear powered aircraft carriers.
The money we have put into defense over the past several years
has been inadequate. However, the responsibility for slashing
$32 billion dollars must rest with the Congress, not the
Administration.
Fortunately, under the prodding of President Ford, the Congress
has begun to awaken to the risks of constantly reducing our
defense spending. If the budget he proposed this year passes,
the trend will have been reversed.
In fact we are number one. Unless we falter our give way to
panic we will remain number one.
FORD & LIBRARY
REAGAN STATEMENT:
Page 16, paragraph 2
"Why did the President travel halfway 'round the world
to sign the Helsinki Pact, putting our stamp of approval
on Russia's enslavement of the captive nations?
We gave away the freedom of millions of people--
freedom that was not ours to give. "
RESPONSE:
The President did not go to Helsinki to put the stamp of approval
on Soviet domination of Eastern Europe. On the contrary, he
went to Helsinki along with the Chiefs of State or heads of
government of all our Western allies and, among others, a Papal
Representative, to sign a documents which contains Soviet commitments
-
to greater respect for human rights, self-determination of peoples,
and expanded exchanges and communication throughout Europe.
"Basket three" of the Act calls for a freer flow of people and
ideas among all the European nations.
The Helsinki Act, for the first time, specifically provides for the
possibility of peaceful change of borders when that would correspond
to the wishes of the peoples concerned. With regard to the particular
case of the Baltic States, President Ford stated clearly on July 25
that "the United States has never recognized the Soviet incorporation
of Lithuania, Latvia and Estonia and is not doing so now. Our
official policy of non-recognition is not affected by the results of
the European Security Conference." In fact, the Helsinki document
itself states that no occupation or acquisition of territory by force
will be recognized as legal.
GERALO FORD LIBRARY
REAGAN STATEMENT
Page 16, paragraph 3
"Now we must ask if someone is giving away our own
freedom. Dr. Kissinger is quoted as saying that he
thinks of the U.S. as Athens and the Soviet Union as
Sparta. 1 The day of the U.S. is past and today is the
day of the Soviet Union. I And he added, 1 My job as
Secretary of State is to negotiate the most acceptable
second-best position available. 1 "
RESPONSE
Governor Reagan's so-called quotes from Secretary Kissinger are
a total and irresponsible fabrication. He has never said what the
Governor attributes to him or anything like it. In fact, at a
March 23, 1976 press conference in Dallas, Secretary Kissinger
said: "I do not believe that the United States will be defeated.
I do not believe that the United States is on the decline. I do
not believe that the United States must get the best deal it can.
"I believe that the United States is essential to preserve the
security of the free world and for any progress in the world that
exists.
"In a period of great national difficulty, of the Viet-Nam war,
of Watergate, of endless investigations, we have tried to preserve
the role of the United States as that major actor. And I believe
that to explain to the American people that the policy is complex,
that our involvement is permanent, and that our problems are
nevertheless soluble, is a sign of optimism and of confidence in
the American people rather than the opposite."
FORD is GERALD LIBRARY
REAGAN STATEMENT
Page 17, paragraph 2
"Now we learn that another high official of the State
Department, Helmut Sonnenfeldt, whom Dr. Kissinger
refers to as his "Kissinger", has expressed the belief
that, in effect, the captive nations should give us any
claim of national sovereignty and simply become a part
of the Soviet Union. He says, 'Their desire to break out
of the Soviet straightjacket' threatens us with World War III.
In other words, slaves should accept their fate. "
RESPONSE:
The statement is wholly inaccurate, and a gross distortion of fact,
to ascribe such views to Mr. Sonnenfeldt or to this Admistration.
Neither he nor anyone else in the Administration has expressed any
such belief. The Administration view on this issue was expressed
by Secretary Kissinger before the House International Relations
Committee on March 29 as follows:
"As far as the U.S. in concerned, we do not accept a
sphere of influence of any country, anywhere, and
emphatically we reject a Soviet sphere of influence in
Eastern Europe.
"Two Presidents have visited in Eastern Europe; there
have been two visits to Poland and Romania and Yugoslavia,
by Presidents. I have made repeated visits to Eastern Europe,
on every trip to symbolize and to make clear to these countries
that we are interested in working with them and that we do
not accept or act upon the exclusive dominance of any one
country in that area.
"At the same time, we do not want to give encouragement
to an uprising that might lead to enormous suffering. But in
terms of the basic position of the United States, we do not
accept the dominance of any one country anywhere.
"Yugoslavia was mentioned, for example. We would emphatically
consider it a very grave matter if outside forces were to attempt
to intervene in the domestic affairs of Yugoslavia. We welcome
Eastern European countries developing more in accordance with
their national traditions, and we will cooperate with them. This
is the policy of the United States, and there is no Sonnenfeldt
doctrine. 11
GERALD FORD LIBRARY