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    "ocrText": "5780 words\n2nd DRAFT OF 1/3/47\nBARRY ARCHIVES \"NATIONAL RECORDS TRUNKY AND UNITED\n8.5.\nSERVICE\nBOYERWENT\nMR. SPEAKER, MR. PRESIDENT, MEMBERS OF THE 80th CONGRESS:\nI come before you today to report on the State of the Union\nand, in the words of the Constitution, to recommend such measures as\nI judge necessary and expedient.\nI come also to welcome you as you take up your duties, to wish\nCol you all a very happy New Year, and to discuss with you the manner in\nwhich you and I should fulfill our obligations to the American people\nduring the next two years.\nThe power to mold the future of this nation lies in our hands --\nyours and mine, Joined together.\nIf in this year, and in the next, we can find the right\ncourse to take as each issue arises, and if, in spite of all difficulties,\nwe have the courage and the resolution to take that course, then we shall\nachieve a state of well-being for our people without precedent in\nhistory. And if we continue tow work with the other nations of the world\nearnestly, patiently, and wisely, we can -- granting a will for peace on\nthe part of our neighbors make a lasting peace for the world.\nSAFETY ARCHIVENAL RECORDS TRUMAN LISTED\n- 2 -\nBut, if we are to realize these ends, the Congress and the\nPresident, during the next two years, must work together. It is not\nunusual in our history that the majority of the Congress represents a\nparty in opposition to the President's party. I am the 20th President\nof the United States who, at some time during his term of office, has\nfound his own party to be in the minority in one or both Houses of the\nCongress.\nI realize that on some matters the Congress and the President\nopinion\nmay have honest differences of view. Differences in party, however, did\nPurtisan\nnot cause material differences in the conduct of the war. Nor, in the\nconduct of our international relations, during and since the war, have such\nparty differences mattered. a great deal.\nOn some domestic issues we may, and probably shall, disagree.\nThat in itself is not to be feared. It is inherent in our form of Govern-\nment. But there are ways of disagreeing; men who differ can still work\ntogether sincerely for the common good. We shall be risking the Nation's\nsafety and destroying our opportunities for progress if we do not settle\nany disagreements in this spirit, without thought of partisan advantage.\n-3- - -\nGeneral Domestic Economy\nAs the year 1947 begins, the state of our national economy\npresents great opportunities for all. We have virtually full employ-\nment. Our national production of goods and services is fifty per\ncent higher than in any year prior to the war emergency. The national\nincome in 1946 was higher than in any peacetime year. Our food\nproduction is greater than it has ever been. During the last five\nyears, our productive facilities have been expanded in almost every\nfield. The American standard of living is higher now than ever be-\nfore, and when the housing shortage can be overcome, it will be even\nhigher.\nDuring the past few months we have removed at a rapid\nrate the emergency controls over private enterprise that the Federal\nGovernment had to exercise during the war. The remaining controls\nwill be retained only so long as they are needed to protect the\npublic. Private enterprise must be given the greatest possible\nfreedom to continue the expansion of our economy.\n- 4 -\nTHEREY\nHARRY\n\"RATIONAL\nARCHIVES AND\nIn my Proclamation of December 31, 1946, I announced the\nRECORDS\nSERVICE\"\nGOVERNMENT\ntermination of hostilities. This automatically ended certain temporary\ncertain\nlegislation and executive powers.\nA\nTwo groups of temporary laws still remain: The first are\nthose which by Congressional mandate are to last during the \"emergency\";\nthe second are those which are to continue until the \"termination of\nthe war\".\nI shall submit to the Congress recommendations for the repeal\nof certain of the statutes which by their terms continue for the\nduration of the \"emergency\", I shall at the same time recommend that\nothers within this classification be extended until the Congress declares\nthe war ended. As to those statuteswhich continue until the war has\nterminated, I urge that the Congress promptly consider each such statute\nindividually, and repeal such emergency legislation where advisable.\nNow that nearly all war-time controls have been removed, the\noperation of our industrial system depends to a greater extent on the\ndecisions of business men, farmers, and workers. These decisions must\nbe wisely made with genuine concern for the public welfare. For the\nwelfare of business men, farmers and workers depends upon the economic\nwell-being of those who buy their products the general public.\n- 5 -\nBARNA ARCHIVES S. \"MATIONAL REWNIPS THEMAS AND\nU.S.\nSERVICE\"\nROVENUMENT\nAn important present source of danger to our economy is the\npossibility that prices might be raised to such an extent that the con-\nsuming public could not purchase the tremendous volume of goods and\nservices which will be produced in 1947.\nWe all know that recent price increases have denied to many\nof our workers much of the value of recent wage increases. Farmers\nhave found that a large part of their increased income has been absorbed\npriced\nby increased costs. While some of our people have received raises in\nincome which exceed price increases, the great majority have not. Those\nmoderate\npersons who live on fixed incomes--retired persons living on pensions,\nfor example--and workers whose incomes are relatively inflexible--such as\nteachers and other civil servants--have suffered hardship.\nIn the effort to bring about a sound and equitable price\nstructure each group of our population has its own responsibilities:\nIt is up to industry not only to hold the line on existing prices,\nbut to make reductions whenever profits justify such action.\nIt is up to labor to refrain from pressing for unjustified wage\nincreases that will force increases in the price level.\n- 6 -\nBARRY ARCHIVES NATIONAL RECORDS THUNKY AND\nSERVICE\"\nAnd it is up to Government to do everything in its power to\nencourage high-volume production, for that is what makes possible good\nwages, low prices and reasonable profits.\nIn a few days there will be submitted to the Congress the\nEconomic Report of the President, and also the Budget Message. Those\nmessages will contain many recommendations. Today I shall outline five\nmajor domestic policies which I believe the Government should pursue\nduring 1947. These policies are designed to meet our immediate economic\nneeds and, at the same time, to provide for the long-range welfare of\nour free enterprise system:\nFirst, promotion of greater harmony between labor and\nmanagement.\nSecond, restriction of monopoly and unfair business practices;\nassistance to small business; and the promotion of the free\ncompetitive system of private enterprise.\nThird, continuation of an active program of home con-\nstruction.\nFourth, the balancing of the budget in the next fiscal\nyear, and the achieving of a substantial surplus to be applied\nto the reduction of the public debt.\nFifth, protection of a fair level of return to farmers\nin post-war agriculture.\nTRUDAD\n- 7 -\nBARRY\nNATIONAL\nARCHIVER AND\nRECORDS\nTHEY\nLabor_Management Relations\nU.S.\nSERVICE\"\nThe year just past -- like the year after the First World War -\nwas marred by labor-management strife.\nDespite this outbreak of economic warfare in 1946, we are today\nproducing goods and services in record volume. Nevertheless, it is essen-\ntial to improve the methods for reaching agreement between labor and manage-\nment and to reduce the number of strikes and lock-outs.\nWe must not, however, adopt punitive legislation. We must not,\nin order to punish a few labor leaders, pass vindictive laws which will\nrestrict the proper rights of the rank and file of labor. We must not,\nunder the stress of emotion, endanger our American freedoms by taking\nill-considered action which will lead to results not anticipated or\ndesired.\nWe must remember, in reviewing the record of disputes in 1946,\nthat management shares with labor the responsibility for failure to reach\nagreements which would have averted strikes. For that reason, we must\nrealize that industrial peace cannot be achieved merely by laws directed\nagainst labor unions.\nDuring the last decade and a half, we have established a national\nlabor policy in this country based upon free collective bargaining as the\nprocess for determining wages and working conditions.\nThis is still the national policy.\nIt should continue to be the national policy.\n- 8 -\nBut as yet, not all of us have learned what it means to bar-\ngain freely and fairly. Nor have all of us learned to carry the mutual\nresponsibilities that accompany the right to bargain. There have been\nabuses and harmful practices which limit the effectiveness of our\nsystem of collective bargaining. Furthermore, we have lacked sufficient\ngovernmental machinery to aid labor and management in resolving differences.\nCertain labor-management problems need attention at once and\ncertain others, by reason of their complexity, need exhaustive investi-\ngation and study.\nWe should enact legislation to correct certain abuses and to\nprovide additional governmental assistance in bargaining. But we should\nalso concern ourselves with the basic causes of labor-management dif-\nficulties.\nIn the light of these considerations, I propose to you and\nurge your cooperation in effecting the following four-point program to\nreduce industrial strife:\nPoint number one is the Learly enactment of legislation that would\nto prevent certain unjustifiable practices, which should receive immediate\nattention.\nFirst, under this point, are jurisdictional strikes.\n- 9 -\nIn jurisdictional strikes the public and the employer are\ninnocent bystanders who are injured by a collision between rival unions.\nThis type of dispute hurts production, industry, the public-and labor\njurisdictional trike\nTRUMAN\nitself. I consider them indefensible.\nNATIONAL\nARCHIVES AHD\nTHE\nREQURDS\nSERVICE\"\nThe National Labor Relations Act provides procedures for BOYERN WENT\ndetermining which union represents the employees of a particular\nemployer. In\nsome jurisdictional cases, however, disputes minority unions use sconomic the\nstike pressure to compel employers to deal with them despite the employer's\nthe majority\nlegal duty to bargain with smother union. Strikes to compel an employer\nto violate the law are inexcusable. Legislation to prevent such strikes\nis clearly desirable.\nAnother form of inter-union disagreement is the jurisdictional\nstrike involving the question of which labor union is entitled to perform\na particular task. Provision must be made, when rival unions are unable\nto settle such disputes themselves, for birth peaceful and binding\ndetermination. of the issues.\nA second unjustifiable practice is the secondary boycott,\nwhen used to further jurisdictional disputes or to compel employers\nto violate the National Labor Relations Act.\n- 10 -\nNot all secondary boycotts are unjustified. We must judge\nthem on the basis of their objectives. For example, boycotts intended\nto protect union wage rates and working conditions should be distinguished\nfrom those in furtherance of jurisdictional disputes. The structure of\nindustry sometimes requires unions, as a matter of self-preservation,\nto extend the conflict beyond a particular employer. There should be\nno blanket prohibition against boycotts. The appropriate goal is\nlegislation which prohibits secondary boycotts in pursuance of unjusti-\nfiable objectives, but does not impair the union's right to preserve\nits own existence and the gains made in genuine collective bargaining.\nA third practice that should be corrected is the use of economic\nforce, by either labor or management, to decide issues arising out of\nthe interpretation of existing contracts.\nCollective bargaining agreements, like other contracts, should\nbe faithfully adhered to by both parties. In the most enlightened union-\nmanagement relationships, disputes over the interpretation of contract\nterms are settled peacefully by negotiation or arbitration. Legislation\nshould be enacted to provide machinery whereby unsettled disputes\nconcerning the interpretation of an existing agreement may be referred\nby either party to final and binding arbitration.\nARE\nARCHIVED \"NATIONAL AND THE\n- 11 -\nRECORDS\nU.S.\nSERVICE\"\nWOVERN SIGNT\nPoint number two is the extension of the facilities within\nthe Department of Labor for assisting collective bargaining.\nOne of our a order\ndifficultes fundamental problems in anaiding arises from later lack strip of\nin the collective bargaining process. The parties often do not have a clear\nunderstanding of their responsibility for settling disputes through\ntheir own negotiations. We constantly see instances where labor or manage-\nment resorts to economic force without exhausting the possibilities for\nagreement through the bargaining process. Moreover, neither the parties\nnor the government have a definite yardstick for determining when and how\ngovernment assistance should be invoked. There is need for integrated\ngovernmental machinery - offering the successive steps of mediation,\nvoluntary arbitration and - ultimately in cases of grave national concern -\nascertaining the facts of the dispute and reporting them to the public.\nSuch machinery would facilitate and expedite the settlement of disputes.\nPoint number three is the broadening of our program\nof social legislation to alleviate the causes of workers'\ninsecurity.\nOn June 11, 1946, in my message vetoing the Case Bill, I made\na comprehensive statement of my views concerning labor-management\nrelations. I said then, and I repeat now, that the fundamental solu-\n- 12 -\ntion of labor-management difficulties is to be found not in legislation\ndealing directly with labor relations, but in a program designed to\nremove the causes of insecurity felt by many workers in our industrial\nsociety. In this connection, for example, the Congress should consider\nthe extension and broadening of our social security system, better housing,\na comprehensive national health program and provision for a fair\nminimum wage.\nPoint number four is the appointment of a Temporary\nJoint Commission to inquire into the entire field of labor-\nmanagement relations.\nI recommend that the Congress provide for the appointment\nof a Temporary Joint Commission to undertake this broad study.\nThe President, the Congress, and management and labor have\na continuing responsibility to cooperate in seeking and finding the\nsolution of these problems. They should all take part in it. I\ntherefore recommend that the Commission be composed as follows:\ntwelve to be chosen by the Congress from the members of both parties in the\nHouse and the Senate, and eight representing the public, management and labor,\nto be appointed by the President.\n- 13 -\nThe Commission should be charged with investigating,\nreporting and making recommendations upon certain major subjects\namong others:\nTRUNAN\nAND VR\nARCHIVER NATIONAL AND\nTHE\nREGURDS\n1.5.\nSERVICE\"\nFirst; the special and unique problem of nation-wide\nstrikes in vital industries affecting the public interest. In\nparticular, the Commission should examine into the question of hour to\nthe manner [ which the Government can intervene\nV\nsettling\nor\npre-\nsuch\nvent strikes without endangering our general democratic freedoms.\nUpon a proper solution of this problem may depend the whole\nindustrial future of the United States. The paralyzing effects of a\nsuch industries as\nnation-wide strike in our transportation exabem, coal nines, oil fields,\nsteel mills, or communications Cacilities can result in disaster to\nour entire economy. We have been able to avoid such disaster, in recent\nyears, only by the use of extraordinary war powers. Fall Those powers will\nsoon be gone. In their place there must be created an adequate system\nand effective machinery in these vital fields. This will require careful\nproblem\nstudy and a boldness of approach consistent with the preservation of\nfustan approach\nthe rights of our people. The need is & pressing are and I urge you\nit\nto give lats your earliest attention.\n- 14 -\nSecond; the best methods and procedures for carrying out\nthe collective bargaining process. This should include the responsi-\nbilities of labor and management to negotiate freely and fairly with\neach other, and to refrain from strikes or lockouts until all possi-\nbilities of negotiation have been exhausted.\nThird; the underlying causes bolund labor-management disputes.\nSome of the subjects presented here for investigation involve\nlong-range study. Others can be considered immediately by the Commission\nits\nand their recommendations can be submitted to the Congress in the reason-\nnear future.\nI recommend thatthis Commission make its first report,\nincluding specific legislative recommendations, not later than\nMarch 15, 1947.\nIn the course of its study the Congress must consider that\nfree and strong labor unions are a bulwark of democracy. They must\ncontinue to be free and they must continue to be strong.\n- 15 -\nRestriction of Monopoly and Promotion of Private Enterprise\nThe second major policy I desire to lay before you has to do\nwith the growing concentration of economic power and the threat to free\ncompetition in private enterprise. In 1941 the Temporary National\nBARRY ARCHIVES \"NATIONAL RECORDS THUMAN AND LIVE\nU.S. SERVICE\nEconomic Committee completed a comprehensive investigation into the\nworkingsof the national economy. The Committee's study showed that,\ndespite half a century of anti-trust law enforcement, one of the gravest\nthreats to our economic welfare lay in the increasing concentration of\neconomic power in the hands of a small number of giant organizations.\nDuring the war, this long-standing tendency toward economic\nconcentration was accelerated. As a consequence, we now find that to a\ngreater extent than ever before, whole industries are dominated by one\nor a few large organizations which can restrict production in the interests\nof higher profits and thus reduce employment and purchasing power.\nIn an effort to assure full opportunity and free competition\nto business we will vigorously enforce the anti-trust laws. I recommend\nalso that the Congress consider legislation to adapt these laws to our\npresent need.\nThe restoration of competition in industry calls for a two-sided\nattack. To strengthen and enforce the laws that regulate business\n- 16 -\npractices is not enough; enforcement has to be supplemented by positive\nmeasures of aid to new enterprises. Government assistance, research\nprograms, and credit powers should be designed and used to promote the\ngrowth of new firms and new industries. Assistance to small business\nis particularly important at this time when thousands of veterans who\nare potential business and industrial leaders are beginning their careers.\nWe should also give special attention to the decentralization\nof industry and the development of areas that are now under-industrialized.\nHousing\nHARRY\nARCHIVER AND RECORDS DELIVERY\nThe third major policy is also of great importance to the\nnational economy — an agressive program to encourage home construction.\nThe first federal program to relieve the -sexterans' housing shortage was announced\nin December / 1945. Since that time one million family housing units have\nbeen put under construction and more than six hundred and seventy-five\nthousand units have already been completed. The rate of expansion in\nconstruction has broken all records.\nIn the coming year the number of dwelling units built will\napproach, if not surpass, the top construction year of 1926. The primary\nresponsibility rests with private industry and labor to deliver\nthat returns can afford.\nhousing at reasonable prices, The Government will continue to expedite\nthe flow of key building materials, to limit most non-residential\nconstruction and to give financial support where it will do the most good.\n- 17 -\nMeasures to stimulate rental housing and new types of housing construction\nwill receive special emphasis.\nTo reach our long-range goal of adequate housing for all our\npeople, a comprehensive housing bill similar to the non-partisan bill\npassed by the Senate last year is urgently required, At a minimum,\nsuch legislation should open the way for rebuilding the blighted\nareas of our cities and should establish positive incentives for the\nINSMAN\ninvestment of billions of dollars of private capital in large-scale\nAROVE\nARCHIVES AND LINES\nRECORDS\nrental housing projects. It should provide for the improvement of\nU.S. SERVICE\" BOYERNINES\nhousing in rural areas and for the construction, over a four-year\nperiod, of half a million units of public low-rental housing. It\nshould authorize a single peacetime federal housing agency to assure\nefficient and economical mobilization of our resources on the vast\nhousing front.\nFiscal Affairs\nThe fourth major policy has to do with balancing the budget.\nIn a prosperous period such as the present one, the budget of the Federal\nGovernment should be balanced. Prudent management of public finance requires\nthat we begin the process of reducing the debt. The budget which I shall\nsubmit to you this week has a small margin of surplus.\n- 18 - -\nIn the Budget Message, I am making recommendations which, if accepted,\nwill result in a substantially larger surplus which should be applied\nto debt retirement.\nExpenditures relating to the war are still high. Considerable\nsums are required to alleviate world famine and suffering. Aid to\nveterans will continue at a peak leavel. The world situation is such\nthat & high larger level of military expenditures 1s I required. Interest on\nthe public debt and certain other costs are irreducible. For these\nreasons I have had to practice stringent economy in preparing the budget;\nand I hope that the Congress will co-operate in this program of economy.\nAgriculture\nThe fifth major policy has to do with the welfare of our farm\npopulation.\nIn the next few years American agriculture faces the same\ndangers it did after World War I. The nation failed then to maintain\neconomic outlets for agriculture's productive capacity, and it also\nfailed to provide means through which farmers could adjust their types\nof production to the shifting demands. Therefore, as demand fell off\nand prices dropped, surpluses piled up.\nTRUMAN\nAND\nNATIONAL\nARCHIVES AND\nREGORDS\nTHERIY\n- 19 -\nU.S.\nSERVICE\"\nBOVERN WEAT\nWe must make sure of meeting the problems which we failed\nto meet after the first World War. We must maintain markets for our\nnew-found productive power and make sure that farmers have the means\nhauging conditions.\nto adapt their production quickly to shifting demands.\nThe farmer is entitled to a fair income. Ways can be found\nto carry out the objectives of a balanced pattern of peacetime produc-\ntion without either undue sacrifice by farm people or undue expense to\nthe Government.\nHealth and General Welfare\nOf all our national resources, none is of more basic\nvalue than the health of our people. Over a year ago I presented\nto the Congress my views on 8. national health program. The\nCongress acted on several of the recommendations in this program --\nmental health, the health of mothers and children, and hospital\nconstruction. I urge this Congress to complete the work begun\nlast year and to enact the most important recommendation of\nthe program -- to provide adequate medical care to\n- 20 - -\nall who need it, not as charity but on the basis of payments made by\nthe beneficiaries of the program.\nOne administrative change would help greatly to further our\nnational program in the fields of health, education, and welfare. I again\nrecommend the establishment of a well-integrated Department of Welfare.\nVeterans\nFourteen million World War II servicemen have returned to\ncivilian life. The great majority have found their places as citizens\nof their communities and their Nation. It is a tribute to the fiber\nof our servicemen and to the flexibility of our economy that these\nadjustments have been made so rapidly and so successfully.\nMore than two million veterans of World War II are attending\nschools or acquiring job skills through the financial assistance of the\nFederal Government. Thousands of sick and wounded veterans are daily\nreceiving the best of medical and hospital care. Half a million have\nobtained loans, with Government guarantees, to purchase homes or farms\nor to embark upon new businesses. Compensation is being paid in almost\ntwo million cases for disabilities or death. More than three million\nare continuing to maintain their low-cost National Service Life Insurance\npolicies. Almost seven million veterans have been aided by unemployment\nand self-employment allowances.\n- 21 -\nHARRY ARCHIVED \"NATIONAL REGURDS TRUMAN AND VEHICLES\nSERVICE\"\nGOVERNMENT\nExclusive of mustering-out payments and terminal leave pay, the\nprogram for veterans of all wars is costing over seven billion dollars\na year I one fifth of our total Federal budget. This is the most far-\nreaching and complete veterans' program ever conceived by any nation.\nExcept for minor adjustments, I believe that our program of\nbenefits for veterans is now complete. In the long run, the success of the\nprogram will not be measured by the number of veterans obtaining financial\naid or by the number of dollars we spend. History will judge us not by\nthe money we spend, but by the further contribution we enable our veterans\nto make to their country. In considering any additional legislation,\nthat must be our criterion.\nCivil Rights\nWe have recently witnessed in this country numerous assaults\nupon the constitutional rights of individual citizens as a result of\nracial and religious bigotry. A substantial segment of our people have\nbeen prevented from exercising fully their right to participate in the\nelection of public officials, both locally and nationally. Freedom to\nengage in lawful callings has been denied.\n- 22 -\nThe will to fight these crimes should be in the hearts of every\none of us.\nFor the Federal Government, that fight is now being carried on\nby the Department of Justice to the full extent of the powers that have\nbeen conferred upon it.\nHowever, the Constitution itself expressly withholds from the\nFederal Government the major task of preserving the peace in the several\nstates, except upon application by a legislature or governor.\nI am not convinced that the Federal Government is doing all that\nit can and should do to protect the civil rights of all its citizens. I\nhave, therefore, by Executive Order, established the President's Committee\non Civil Rights to study and report on the whole problem of federally-\nsecured civil rights.\nNatural Resources\nIn our responsibility to promote the general welfare of the\npeople, we have always to consider the natural resources of our country.\nThey are the foundation of our life. In the development of the great\nriver systems of America there is the major economic opportunity of our\ngeneration to contribute to the increase of the national wealth. This\nprogram is already well along; it should be pushed with full vigor.\n- 23 -\nI must advise the Congress that we are rapidly becoming a \"have\nnot\" Nation as to many of our minerals. The economic progress and the\nsecurity of our country depend upon an expanding return of mineral dis-\ncovery and upon improved methods of recovery. The federal government must\ndo its part to meet this need.\nmn\nBARRY ARCHIVES NATIONAL RECORDS TRUNAV AND\nForeign Affairs\n1.5.\nSERVICE\nBOYER MINT\nProgress in reaching our domestic goals is closely related\nto our conduct of foreign affairs. All that I have said about main-\ntaining a sound and prosperous economy and improving the welfare of\nour people has greater meaning because of the world leadership of the\nUnited States. What we do, or fail to do, at home affects not only our-\nselves but millions of people throughout the world. If we are to fulfill\nour responsibilities to other nations, we must make sure that the United\nStates is sound economically, socially and politically. Only then will\nwe be able to help bring about the elements of peace in other countries -\npolitical stability, economic advancement, and social progress.\nPeace treaties for Italy, Bulgaria, Rumania and Hungary have\nfinally been prepared. Following the signing of these treaties next month\nin Paris, they will be submitted to the Senate for ratification. This\ngovernment does not regard the treaties as completely satisfactory.\nWhatever their defects, however, I am convinced that they are as good as\n- - 24 - -\nwe can hope to obtain by agreement among the principal wartime Allies.\nFurther dispute and delay would gravely jeopardize political stability in\nthe countries concerned for many years.\nDuring the long months of debate on these treaties, we have\nmade it clear to all nations that the United States will not consent\nto settlements at the expense of principles we regard as vital to a\njust and enduring peace. We have made it equally clear that we will not\nretreat to isolationism. Our policies will be the same during forthcoming\nnegotiations in Moscow on the German and Austrian treaties, and during\nfuture conferences on the Japanese treaty.\nThe delay in arriving at the first peace settlements is due\npartly to the difficulty of reaching agreement with the Soviet Union\non the terms of settlement. Whatever differences there may have been\nbetween us and the Soviet Union, however, should not be allowed to obscure\nour common interest in the early making of the peace. The major concern\nof each of us should be the promotion of collective security, not the\n#\nadvancement of individual security. Our policy toward the Soviet\nUnion is guided by the same principles which guide our\npolicies toward all nations. We seek only to uphold the\n- 25 -\nprinciples of international justice which have been embodied in\nthe Charter of the United Nations. The achievements of the\nTRUMAN\nUnited Nations in its first year prove that the Soviet Union\nHAVE\nNATIONAL\nARCHIVED AND\nRECORDS\nU.S.\nSERVICE\"\nand the United States can live as friendly associates, thriving\nBOYERN MENT\nin a peace they have collaborated to establish, and prospering\nthrough trade with each other and with the rest of the world.\nWe must now get on with the peace settlements. The occupying\npowers should recognize the independence of Austria and withdraw their\ntroops. The Germans and the Japanese cannot be left in doubt and fear\nas to their future; they must know their national boundaries, their\nresources and what reparations they must pay. Without trying to manage\ntheir internal affairs, we can insure that those countries do not rearm.\nInternational Relief and Displaced Persons\nThe United States can be proud of its part in caring for\npeoples reduced to want by the ravages of war, and in aiding nations\nto restore their national economies. We have shipped more supplies\nto deficit areas of the world since the end of the war than all other\ncountries combined.\nHowever, insofar as caring for displaced persons is concerned,\nI do not feel that we have done our part. Only about 5,000 of them have\nentered the United States since May, 1946. The fact is, we have accom-\n- 26 -\nplished nearly all that is possible under the present quota laws. No\nGovernment executive or department can bring about an increase in the\npresent average of approximately 800 displaced persons admitted per\nmonth without Congressional assistance in the form of new legislation.\nI urge the Congress to turn its attention to this world problem, in\nan effort to find ways whereby we can fulfill our responsibilities to\nthese thousands of homeless and suffering refugees of all faiths.\nAtomic Energy\nThe United States has taken the lead in the endeavor to\nput atomic energy under effective international control. We seek no\nmonopoly for ourselves or for any shall group of nations. We ask only that\nthere be safeguards sufficient to insure that no nation will be able to\nuse this power for military purposes. So long as all governments are\nnot agreed on means of international control of atomic energy, the\nshadow of fear will obscure the bright prospects for the peaceful\nuse of this enormous power.\nIn accordance with the Atomic Energy Act of 1946, the\nCommission established under that law is assuming full jurisdiction\nover our domestic atomic energy enterprise. A formal transfer to\nthe Commission of all government property in this field was completed\n- 27 -\non December A 31. The program of the Commission will, of cousse, be\nworked out in close collaboration with the military services in con-\nformity with the wish of the Congress, but it is my fervent hope\nthat the military aspect of atomic energy will have 8. steadily diminish-\ning significance. We look to the Commission to foster the development\nof atomic energy for industrial use and scientific and medical research.\nIn the vigorous and effective development of these constructive aspects\nof atomic energy rests our hope that this new force may ultimately be\nturned into 8. blessing for all nations.\nMIRT ARCHIVES \"NATIONAL RECORDS TRUMAD AND LIVE\nU.S.\nSERVICE\"\nMilitary Policy\nGOVERNMENT\nIn 1946 the Army and Navy completed the demobilization of\ntheir wartime forces. They are now maintaining the forces which we need\nfor national defense and to fulfill our international obligations.\nWe live in a world in which strength on the part of peace-\nloving nations is still the greatest deterrent to aggression. World\nstability can be destroyed when nations with great responsibilities\nneglect to maintain the means of discharging their responsibilities.\nThis is an age when unforeseen attack could come with\nunprecedented speed. We must be strong enough to defeat,\nand thus to forestall any such attack. In our steady progress\ntoward a more rational world order, the need for large\n- 28 -\narmed forces is progressively declining; but the stabilizing force\nof American military strength must not be weakened until our hopes\nare fully realized. When a system of collective security under the\nUnited Nations has been established, we shall be willing to lead in\ncollective disarmament but, until such a system becomes a reality,\nour\nwe must not again allow unilateral weakness to invite attack.\nTRUNKS\nas\n\"NATIONAL\nFor these reasons, we need well-equipped, well-trained\nARCHIVES AND\nREGORDS\nLIBERTY\nU.S.\nSERVICE\"\nBOVERNMENT\narmed forces and we must be able to mobilize rapidly our resources\nin men and material for our own defense, should the need arise.\nThe Army will be reduced to one million and seventy thousand\nmen by July 1, 1947. Half of the Army will be used for occupation\nduties abroad and most of the remainder will be employed at home in the\nsupport of these overseas forces.\nThe Navy is supporting the occupation troops in Europe and in\nthe Far East, and its fundamental mission - support of national\ninterests wherever that support is required -- is unchanged. The Navy,\naverage\nincluding the Marine Corps, will consist of five hundred and ninety\nseventy one thousand officus and men duing she fiscal year 1948.\neight thousand men on July 1, 1947\nWe are encountering serious difficulties in maintaining our\nforces at even these reduced levels. Occupation troops are barely suf-\nficient to carry out the duties which our foreign policy requires.\n- 29 -\nOur forces at home are at a point where further reduction is impracticable.\nWe should like an Army and a Navy composed entirely of long-term volunteers,\nbut in spite of liberal inducements the basic needs of the Army are not\nnow being met by voluntary enlistments. # The War Department has advised\nme that it is unable to make an accurate forecast at the present time\nas to whether it will be possible to maintain the strength of the\nArmy by relying exclusively on volunteers. The situation will\nbe much clearer in a few weeks, when the results of the campaign\nfor volunteers are known. The War Department will make its recommen-\ndation as to the need for the extension of Selective Service in suffi-\ncient time to enable the Congress to take action prior to the expira-\ntion of the present law on March 31st. The responsibility for main-\ntaining our Armed Forces at the strength necessary for our national\nsafety rests with the Congress.\nThe development of a trained citizen reserve is also vital\nto our national security. This can best be accomplished through\nUniversal Training. I have appointed an Advisory Commission on\nUniversal Training to study the various plans for a training program\nand I expect that the recommendations of the Commission will be of\nbenefit to the Congress and to me in reaching decisions on this\nproblem.\n- 30 -\nThe cost of the military establishment is substantial.\nThere is one certain way by which we can cut costs and at the same time\nenhance our national security. That is by the establishment of a\nsingle Department of National Defense. I shall communicate with\nthe Congress in the near future with reference to the establish-\nment of a single Department of National Defense.\nBARRY TRUCKS AND THE\nU.S.\nNational defense does not consist only of an army / and navy\nan\nand air force. National security rests on a much broader base. It\ndepends on a sound economy of prices and wages, on a prosperous\nagriculture, on satisfied and productive workers, on a competitive\nprivate enterprise free from monopolistic repression, on continued\nTREAT THE OUT 1 S.S.\nindustrial harmony and production, on civil liberties and human\nashoug\nN\nfreedoms --- on all the forces which create in our men and women morale\nX\nfifer\nand spiritual stamina.\nTo bring about that kind of national security -- that kind\nof national defense - and to keep it at a high level that is the\nmeasure of our duty and our responsibility. Together we can fulfill\nthat duty and that responsibility. The American people expect that\nof us; and we cannot fail them.\nLet us have the will and the patience and mutual respect and for-\nbearance to do the job together. Then God will give us the wisdom to\ncarry on the task of leading the peoples of the world down His ways of\npeace."
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