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Question and Answer Session by the President [Press Conference]
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Question and Answer Session by the President [Press Conference]
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Digitized from Box 7 of the White House Press Releases at the Gerald R. Ford Presidential Library
FOR IMMEDIATE RELEASE
FEBRUARY 4, 1975
OFFICE OF THE WHITE HOUSE PRESS SECRETARY
(Atlanta, Georgia)
THE WHITE HOUSE
QUESTION AND ANSWER SESSION
BY THE PRESIDENT
HYATT REGENCY HOTEL
PHOENIX ROOM
2:35 P.M. EST
THE PRESIDENT: Please sit down.
It is a privilege and a pleasure to be in
Atlanta. I have enjoyed the stay, and looking
forward to this press conference.
Mr. Cutts of the Atlanta paper.
QUESTION: In the last 24 hours you have
spoken at length about domestic concerns. I would like
to ask you what options you will have to help maintain
a non-Communist government in Vietnam if the Congress
does not go along with your supplemental appropriation
request as well as this fiscal year 1976 request for
Vietnam?
THE PRESIDENT: If the Congress does not
respond to the requested additional military assistance
for the current fiscal year in an amount which the
Congress last year previously authorized, it will
certainly complicate the military situation from the
point of view of the South Vietnamese.
The South Vietnamese on their own, with our
financial assistance, our military aid, have done very
well, but the Congress did not fully fund the requested
military assistance that was requested. I believe that
if the Congress funds the additional money, that I have
proposed for this fiscal year and continues the money
that I have recommended for next fiscal year, the
South Vietnamese can and will be able to :defend
themselves against the aggressors from the North.
QUESTION: The question is, if the Congress
fails to do that, what options will you have then?
MORE
Page 2
THE PRESIDENT: I do not think that the time
for me to answer that question is at the present. In
the first place, I believe the Congress will fund the
money that I have requested and, if they do, then I
have no need to look at any other options because
they will be capable of defending themselves.
The good judgment of the Congress will fund
the South Vietnamese, will defend themselves, and I
do not think there will be any other needed options.
QUESTION: Mr. President, when you were a
Congressman and called for the impeachment of Justice
Douglas, did you have access or were you slipped any
secret FBI data?
THE PRESIDENT: I do not know what the source
was of information that was given to me, but I was
given information by a high-ranking official of the
Department of Justice. I do not know what the source
of that information was.
QUESTION: Was it Attorney General Mitchell,
then Attorney General Mitchell?
THE PRESIDENT: It was not the Attorney
General John Mitchell.
QUESTION: Was it FBI Director J. Edgar
Hoover?
THE PRESIDENT: It was not.
Two times and you are out, Helen. (Laughter)
QUESTION: Mr. President, we had a story
that Senator Howard Baker from up here in Tennessee is
seriously considering seeking the Republican nomination
in view of a late poll which gives you a rating of
60 percent negative with the American people.
In view of your findings, sir, what is your
feeling about any chance or any opportunity you
will seek a full term as President?
THE PRESIDENT: I have indicated that it is
my intention to be a candidate in 1976 and, of course,
in our system, anybody can if they so desire, qualify
to be a candidate in any primary. I can only indicate
what my intention might be, and I pass no judgment
on what anybody else might do.
MORE
Page 3
QUESTION: Do you think the economic situation,
though, that you will be able to lick it, of course,
increasing your chances?
THE PRESIDENT: I believe that the economic
situation in 1976 will be an improving economic picture.
It won't perhaps be as good as we would like it, but
I believe that unemployment will be going down and
employment will be going up, and we will be doing a
considerable amount better in the battle against
inflation than we did in the last 12 months.
So, with the optimism that I think will come
from more employment, less unemployment, and a better
battle against inflation, I think the economic circum-
stances will be good enough to justify at least my
seeking re-election.
QUESTION: Mr. President, when you left
Vladivostok in November, we were led to understand that
General Secretary Brezhnev would be in Washington in
May or June. The 'time is running short, a lot has
happened in American-Soviet relations since then.
Do you still look forward to welcoming Mr.
Brezhnev just three or four months from now.
THE PRESIDENT: Mr. Cormier, I look forward
to having the General Secretary in the United States
in the summer of 1975. The negotiations which we
concluded in Vladivostok are moving along in the nego-
tiations that are necessary to put the final draft,
These negotiations are taking place in Geneva.
I see no reason why we cannot reconcile any
of the relatively minor differences. The basic agreement
is still in effect, and I am confident that we can
welcome the General Secretary to the United States in
the summer of 1976, and I look forward to it.
MORE
Page 4
QUESTION: Mr. President, I am Alva Haywood,
President of Georgia Press Association.
Your program for the solution of the problems of
energy and the economic situation is submitted to Congress
as a package, and you are asking Congress to approve this
as a package. The concern, sir is that Congress will lift
out points of your program, substitute points of their
program and leave some areas lacking. Would you comment
on the possibilities of such a situation?
THE PRESIDENT: It is true, as you have stated,
that I submitted to the Congress a comprehensive plan, or
program, to solve our energy problem. As a matter of fact,
the bill that we sent to the Congress is about 196 pages,
and that did not include the tax proposals because a President
does not submit in writing tax proposals. He submits the
ideas, and it did not include the proposal I am submitting
for the strip mining bill of 1975. But this is a compre-
hensive interrelated program to solve our energy problem by
reducing consumption and stimulating additional production.
The Congress, I hope, will consider it as a
package. Now, if they do not agree with the package, I
think the Congress has an obligation to come up with their
package. I do not believe they can pick and choose with
press release answers. They have to have something solid.
Now, if they want to change, in a minor way, a part
of my package, I will understand it, but they cannot come
up with a part of an answer because the problem is altogether
too broad and sweeping, and it affects us in industry, in
our homes, in our driving, et cetera. I just hope the
Congress understands the need for a comprehensive plan and will
act accordingly.
QUESTION: Mr. President, recently in Washington,
the big city mayors expressed concern over the high unemploy-
ment rate, particularly in the cities where it runs, as you
know, much ahead of the national unemployment rate. Considering
that your budget message predicts that we may have high-
unemployment for up to another year to 18 months, have your
advisers given you any forecast on the possible effect in
terms of the concern of the mayors, which was a return to
urban violence, the possible effect of continued high unemploy-
ment for such a prolonged period of time?
THE PRESIDENT: I did notice the request of the
mayors for an additional $15 billion over and above what I
have recommended in helping the cities through general
revenue sharing, through the community development program,
through the emergency unemployment program. I believe that
the combination of recommendations I have made in those,
and those I have mentioned and some others, will meet the
problems in our major metropolitan cities, and I do not
believe that we should go beyond those in meeting the
particular problems in those communities.
MORE
Page 5
QUESTION: With your austerity program, will they
be able to get that $15 billion they requested?
THE PRESIDENT: I must respectfully disagree with
the way you labeled my program as an "austerity program."
It is not an austerity program, when you submit a budget for
$349 billion, $36 billion more than the budget for the
current fiscal year and a budget that provides for $15
billion more in income transfer payments, so it is not an
austerity budget. It is a very expensive budget. Because
we have good programs to help the unemployed, to train those
people who are unemployed, to help people on Social Security
and other retirement programs, I do not believe we need the
extra $15 billion recommended by the various mayors.
QUESTION: Mr. President, Ron Wilson, Georgia Network.
Would you comment, please, on Senator Jackson's
assessment of the 94th Congress? He said "it could possibly
be the most dangerous in history in terms of the willingness
on the part of some Congressmen to relax our defense posture."
THE PRESIDENT: I had not seen Senator Jackson's
description of the potentials of the 94 th Congress. I hope
that that description is not an accurate one, and I am
going to wait and see whether they do take the kind of action
that might destroy our military capability. I usually agree
with Senator Jackson on national defense appropriations,
policies, et cetera. If this Congress does slash, without
rhyme or reason, the military budget that I have submitted,
it could jeopardize our national security. I think it is
premature to say they will. I certainly hope they don't.
But I can say, without any hesitation, that I will vigorously
oppose any attempt to slash without rhyme or reason, our
military strength as represented in the budget that I have
submitted.
MORE
Page 6
QUESTION: Mr. President, some people believe
that your economic advisers -- particularly Mr. Green-
span and Secretary Simon -- would like to have this
recession get somewhat deeper so that it will take a
bigger bite out of inflation. Is that a correct
assessment?
THE PRESIDENT: I have spent a good many
hours with Alan Greenspan, as we went over the
various options in our economic and energy program.
I can say most strongly that Alan Greenspan does not
want us to have more adverse economic conditions than
we have today.
He has joined with me in supporting the
program that I submitted, a $16 billion dollar tax
reduction or rebate, and he has also joined with me in
recommending a $17 billion curtailment of certain
Federal budgetary expenses.
It seems to me that this is a well-balanced
program. It is not aimed at trying to make our
economic circumstances worse. It is aimed at trying to
balance our economy, so that we recover from the
recession as quickly as possible and, at the same time,
avoid the potential dangers of a rekindling of double-
digit inflation.
I think the Congress is cognizant of the
problem. I hope the Congress acts responsibly, and I am
an optimist enough to believe that they will.
QUESTION: If that is the case, Mr. President,
why is it that the deficits you proposed for fiscal
1975 and fiscal 1976 amount to only a little more
than 2 percent of the Gross National Product in 1975,
and a little over 3 percent of the Gross National Product
in 1976?
How can you turn around a trillion and one
half dollar economy with net stimulants that are that
small?
THE PRESIDENT: I looked at a chart the other
day that shows the deficits in our Federal Government
for the last ten or 15 years and the deficit that we
will have in 1976 is higher as a percentage of GNP
than any deficit in the last ten or 15 years, as I
recollect.
The deficit in 1975, which is $35 billion,
is among the top ranking deficits as a percentage
of GNP, so two of those back to back, in my opinion,
are potentially dangerous from the point of view of
rekindling inflation, and they are sufficiently
stimulative to, I think, take us out of the current
recession.
MORE
Page 7
QUESTION: I am Sally Lofton, Southeast News-
papers. Forty million dollars, which have been
intended for highway construction in Georgia, was
included in the Highway Trust Funde impounded by
President Nixon, and I was wondering if you plan to
release any of these funds?
THE PRESIDENT: Last evening I met with a
number of the Governors from the Southern and South-
eastern States. They did raise that question, urging
that I release some of the deferrals or rescissions
in the Highway Trust Fund. I mean deferrals, not
rescissions.
I have promised them that I will take a look
at their recommendation. Some of them said their
States were ready to go. They could let bids within
30 days and get construction underway very quickly.
I will talk to the Federal Highway Commissioner,
former Governor Tiemannof Nebraska, and will let the
Governors know whether we think this is something that
ought to be done promptly.
QUESTION: Was Governor Busbee one of the ones
who said he was ready to go?
THE PRESIDENT: As I recall, he and several
others, including Governor Askew of Florida.
QUESTION: Mr. President, Bob Schieffer. I
would like to follew up on Helen's question. You
told us the two officials who did not give you that
information. Would you tell us who did, and beyond
that, can you tell us what sort of information it was
and beyond that, what did you do with it?
THE PRESIDENT: The information that was given
to me was to a substantial degree included in the
speech that I made on the floor of the House, which is
a printed document and has been widely distributed.
The information was given to me by Mr. Will Wilson,
who was then one of the Assistant Attorney Generals.
QUESTION: Mr. President, I am Bobby Branch,
and I publish a country newspaper in Perry, Georgia.
THE PRESIDENT: Do we have segregation here
between the Washington press corps and the local
press corps? (Laughter)
QUESTION: Yes, sir. In view of the recent
Arab oil interest investments in America, and even
here in Georgia -- the State government is actively
seeking Arab investments -- I was wondering what your
opinion was on the trends in this direction.
MORE
Page 8
THE PRESIDENT: There have been some recent
news stories to the effect that the Iranian government,
for example, wanted to invest in Pan Am. They were
thinking of buying six TWA jets that were not being
used, and there is a story about one of the Arab
countries buying a substantial interest in one of our
largest banks in the State of Michigan.
The Department of State, the National Security
Council, are looking into this question. It is a
matter, I think, that will require our best analysis
and probably a final decision by myself. But we are
not in the position where I can give you a categorical
answer at this point.
QUESTION: Mr. President, I would like to
return, if I could please, sir, to your answer to a
question which was asked a little earlier in which
you expressed optimism that the economy would improve
next year over its present situation and that
would help your chances for re-election.
By your own statistics, sir, unemployment
will be 7.9 percent next year, and that is
higher than it is now. The Gross National Product
will drop, I believe, 3.3 percent now, which would be a
bigger drop than last year, and we will continue to have
double-digit inflation.
With that grim economic outlook, sir, on
what do you base your hope for re-election inasmuch as
your own statistics make the outlook worse next
year than it presently is?
THE PRESIDENT: Let's trace the history of
inflation from December 1973 to December 1974. The cost
of living went up 12.2 percent. From December 1974
to December 1975 we expect the cost of living to go
up 9 percent. Between December of 1975 to December
of 1976 we expect the cost of living to go up 7
percent, so that is a very significant improvement, and
it is not double-digit inflation.
It is almost cutting in half the inflation
that we had from December 1973 to December of 1974.
From the point of view of unemployment, it is true
that we expect in 1975 unemployment to peak, I think, at
8.4 or 8.5 percent.
MORE
Page 9
We do expect, however, by the second and
third quarter of 1975 to have a switch that will be
on the plus side. It will be a switch that will
probably mean a 5 percent increase in the GNP. It
will undoubtedly mean an increase of about two million
in those employed.
So, the trend will be good, with higher
employment and improvement in the Gross National
Product and a slight downtrend in unemployment
figures. They will get better the further we go into
1976, so I am not as pessimistic as you appear to be
and I am not as pessimistic when you look at the
trends, not the averages, as some of the computer read-
outs tend to lead you to believe.
QUESTION: Mr. President, Peter Bannon
with WAGA Television, Atlanta. We are told the
confidence of the businessman and the consumer is
essential to economic recovery. Two questions, sir.
First, what is your estimation of this
confidence, and second, is there a possibility that
as a lot of people who have not been badly hurt by
your economic program become increasingly bored with
this talk of economic uncertainty, is there a possibility
of a spontaneous recovery of confidence, regardless
of what is done in Washington.
THE PRESIDENT: I happen to subscribe to the
idea that the actions of the American people are often
times infinitely more important than what the Congress
or the President do in Washington, D.C. If we get a
restoration of public confidence, which has been
falling rapidly and has been a major contributing
factor to our economic problems, if we get a restoration
of that -- and there is some evidence that that is
taking place -- then in my judgment we will get a
faster recovery than what some of the experts are
forecasting.
There has been in the last several weeks a
very interesting development, and the changes in our
economy in the last two or three months have shown
certain sudden actions that most people did not
forecast nor anticipate.
We have had a tremendous inventory sell-out,
much more rapid than anybody forecast. This means
that in a relatively short period of time -- much more
quickly than anyone expected a couple of months ago --
that as you bottom out and you get a reasonable balance
between inventory and production, that the recovery
will come more quickly than some of the experts have
Isrecasted or anticipated.
This development, plus what I think is a
restoration of public confidence, gives to me the
feeling that we are going to do better at the end of
this year than what some of the experts are saying.
MORE
Page 10
QUESTION: Could you suggest a guideline, or some-
thing we can look for in the next few months that might,
as a guidepost, help restore this confidence?
Any specific objective in the next couple of months that
would relate to the American people and their confidence
in whether or not to spend their dollars?
THE PRESIDENT: The unusual and, I think, success-
ful marketing techniques shown by the automotive industry
in the last month and the announcement that some of the
appliance manufacturers are going to use the same marketing
techniques -- good, old American free enterprise -- I think this
approach will have a very good stimulant, not only to
the facts of the economy, but to public confidence. So,
if they keep up this good, hard marketing practice, in
my judgment, that is the best guideline that I can think
of.
QUESTION: Mr. President, I am Dennis Farney, with
the Wall Street Journal.
The House Ways and Means Committee has rejected your
tax rebate formula in favor of one that would provide more
help to low and middle income people. At the same time,
the Committee seems inclined to perhaps continue some of its
tax cuts indefinitely, instead of ending them after one
year as you have proposed. Could you live with these
changes?
THE PRESIDENT: Well, of course, the House
Committee on Ways and Means has only taken tentative action.
Their procedure is to make tentative decisions and then
go back in the final analysis and either agree with or
change what they have made as they have gone along. This
is only the first of four major steps, maybe five. The
House has to approve it. The Senate Committee on Finance
has to act -- the Senate and then in conference. So, I
think it is premature for me to make any categorical
judgment as to whether I would accept what the tentative
agreements are in a House Committee on Ways and Means.
I think I had better wait and pass judgment on what looks
like might be the final version.
MORE
Page 11
QUESTION: Mr. President, John Pruitt,
WSB television. You have called for relaxing of pollution
controls because of the energy crisis and some have
accused you of abandoning the environmental movement.
I would like to know what you think is
going to happen to the environmental movement and
the strides that have been made in the past few years
as a result of your proposals?
THE PRESIDENT: I do not think that I have
recommended any major shift away from our environmental
goals. Let me take one that I am very familiar with.
Under existing law, within the next two
years the automobile manufacturers would have to go to
a substantially higher emission standard and the
automobile manufacturers are testifying right now that
if they are forced to go to that very, very high
standard, there will be an added cost to every automobile
that is produced and there will be no improvement and
probably a decrease in the efficiency of automobiles,
which means that cars sold in the next three or four
years will guzzle more gasoline, not less gasoline.
With the effort that I think is reasonable,
we can increase automobile efficiency by 40 percent
and still achieve an increase in environmental emission
standards, and here is what I have recommended: That
the Congress change the law to improve the environ-
mental emission standards from the present law to
the California standards, and in return for that change
of the law, the automotive manufacturers. have. agreed
with me in writing to increase automotive efficiency
40 percent in the next five years, which means we will
get 40 percent more miles per gallon and still have a
higher emission standard than we have today in our
automobiles that are sold throughout the country.
In the case of the Clean Air Act, that would
permit the utilities that are now using oil to go
to coal. We have asked for eome postponement. We
have not abandoned the goal, but in order to cut down
our importation of foreign oil, we have asked the
Congress and the head of EPA, Russell Train, has agreed
that this is a reasonable request.
I think under the crisis we face, a short
stretch out is understandable and desirable in
this area, so I have not abandoned any improvement
in our clean air efforts.
MORE
Page 12
I have simply, in the one case, moved up
to the California standards, and in the other
stretched out the situation to some extent. This,
in my opinion, is a realistic approach, a proper
balancing of environemntal needs and energy demands.
I can assure you that in our judgment it is
a reasonable position and it is wholly agreed to by
Mr. Train, the head of the Environmental Protection
Agency.
QUESTION: Mr. President, Philip
New York Times. Sir, your economic policy apparently
would allow a high rate of unemployment for years to
come in order to prevent a new round of inflation. Sir,
isn't there some approach you could take other than
this that would avoid this human suffering?
THE PRESIDENT: The proposal that I have
submitted to the Congress provides for a very
substantial stimulant to get us out of the current
recession. I hope the Congress will act quickly, and
the quicker the better. That will be the best demon-
stration of what the President and the Congress can
do to turn the direction of our economy from a recession
to an improvement.
It is my judgment that any additional stimulant
at this time could lead to the kind of inflation that
we fought so hard to overcome for the last 12 months.
If we were to substantially increase -- I emphasize
substantially increase -- the deficit of $52 billion,
it could provide a tremendous stimulant, but what would
that do?
It would probably dry up our financial
markets, with Uncle Sam going in to borrow $60 to
$70 billion dollars in 12 months, plus $30-some million
in this fiscal year.
It would probably force interest rates high
again instead of the trend we are on now with lower
interest rates. It undoubtedly, with high interest
rates, hard to get credit and higher and higher
inflation, would start us right down the road we have
just avoided, and I think multiply, not help
our present economic circumstances.
QUESTION: Sir, to follow up, some economists
and some Democrats have proposed --
THE PRESIDENT: I am glad you say Democrats
are not economists, or vice versa. (Laughter)
MORE
Page 13
QUESTION: Sir, there is a proposal that a
larger degree of stimulation combined with wage and price
controls would solve the problem of the recession, while
preventing another round of inflation. Do you, sir, re-
gard wage and price controls as worse than an 8 percent unemploy-
ment rate for the next two years?
THE PRESIDENT: I don't think, when you are faced
with the kind of adverse economic circumstances we have
today, a recession which we are trying to get out of, that
wage and price control medicine is the answer to the
economic problem, and I believe that the stimulant I have
proposed with the tax reduction, with the responsible
expenditure limitations, is a very fine line that will
permit us to get out of recession and avoid double-digit
inflation. And, to put on top of this kind of an economy
wage and price controls would be the worst kind of medicine
that I can foresee.
QUESTION: Mr. President, I am Selby McCash,
with Macon Telegraph and News.
The Georgia General Assembly is in session at
the moment, and many State legislatures are. What advice
could you give the State law makers to augment and supple-
ment your programs on economy and energy? Quite simply, is
there anything these gentlemen on the State level can do?
THE PRESIDENT: I believe that State legislatures
have an obligation, such as we have in the Federal Government,t
try and handle." their fiscal affairs in a responsible way.
I do not think the State legislatures or municipal govern-
ments should act irresponsibly and then come to the Federal
Government for more funds over and above what has been
recommended in the budget that I have submitted to the
Congress.
If they have financial problems, I think they
have to face up to them. I believe that they will have to
tighten their belts in some cases on the expenditure side
and they may have to increase taxes as Governor Carey of
New York has proposed. But, anyhow, they should not act
irresponsibly and then come to the Federal Government and
expect us, under our circumstances, to bail them out.
QUESTION: Mr. President, you have asked the country
to sacrifice to help us out in this time of trouble, but
your own budget shows that the Executive Office of the
President has outlays of 65 percent more in fiscal year
1975 over fiscal year 1974. Furthermore, we look at the
kind of habits in the Administration -- not many days ago,
Secretary Kissinger had a speech in Los Angeles, and to
make one speech, he takes two planes, two very, large
planes and spends tens of thousands of dollars of the
taxpayers' money. Don't you think it is time for the White
House to tighten its belt and other members of the
Administration to do the same thing?
MORE
Page 14
THE PRESIDENT: I can assure you, since I
took over, that we have thoroughly looked into the
personnel of the White House and if my memory is
correct, we have cut back about 10 percent in
personnel. The increases that have come -- again, if
my memory is correct -- is that the White House is now
being charged rent by GSA just as GSA charges every
other Federal department for Federally owned office
buildings that are occupied by a department.
There has been an increase in compensation
for Federal employees, which I happen to oppose, and
asked to be deferred. So, when you add up the items
that I have indicated, plus the 10 percent reduction
in personnel, at least as far as we are concerned, it
is my judgment that we have been cutting back rather
than adding to.
In the case of Secretary Kissinger, Secretary
Kissinger is a very important person in this government
at this time, and it would be tragic if anything
happened to him as a result of not taking necessary
precautions.
I, for one, do not want any lack of precaution
to result in anything that would hurt, in my opinion,
the carrying out of our foreign policy, which is a
success.
I happen to think the protection of his
life, which is important to the foreign policy of.
this country, is worth the expenditure that
you indicated.
QUESTION: As a follow-up, Mr. President,
you say you have to pay rent now on the White House.
What happens if you cannot pay your bills? Do they
throw you out?
THE PRESIDENT: You ask Mr. Sampson. I
think they will take it out of our appropriations
bill. (Laughter)
THE PRESS: Thank you, Mr. President.
END
(AT 3:10 P.M. EST)