President Lyndon B. Johnson, correspondence

Item

Media

Title
President Lyndon B. Johnson, correspondence
Description
box: 369
folder: 5
Date
1966 to 1968
extracted text
May

The

President

The

White

Washington,

1967

House

My dear Mr.
Rural

9,

D.C,
President:

In your 1967
Poverty you said;

message to the Congress
|

on Urban

and

"T intend to call together an outstanding group

of private citizens from across the country--

from business and labor, government and the
building industry--to examine every possible

means of establishing the institutions to

encourage

the development

of a large scaie

efficient rehabilitation industry.

|

"] will ask this group of outstanding Americans
to find the best ways to tap the enormous

market that exists in rebuilding our cities and
to bring the most modern systems and the most
advanced technology to this urgent task,"
Il urge you to convene this group of national leaders
at the White House at the earliest possibie date, and invite them
to consider the organization of a national, non-profit service
Such a corporation could provide the technical and
corporation.

managerial skilis to achieve the objectives set forth in your
message.

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The pressure on housing in America
Three factors contribute to this:

is explosive.

i

older housing is decaying faster than it

¥

the growth in population accompanied by
tapid urbanization and decline in household
size is expanding the need;

*

increasing costs and a low rate of housing
starts are insufficient to keep pace with
the need or the price that perhaps half of
our families can pay.

can be replaced;

As this pressure builds up the country has two options:
me

it can divert a greater share of our
national resources to build housing,

*

or it can do more with the same amount
of resources,
This option can only be
effective with a major technological
breakthrough.

|

We are not going to achieve this technological advance
without Presidential leadership in bringing about institutional
innovation.
|
Your leadership in the War on Poverty and the
development of the Model Cities program has had grass-roots
repercussions around the country.

ee

a we ee See

Oe Oe

ee

Ee

eT ee

a as

s
es
in
ad
re
g
in
ow
gr
a
of
ce
en
id
ev
t
an
ic
if
There is sign
n
ba
ur
l
ca
Lo
.
on
ti
va
no
in
l
na
io
ut
it
st
in
to support such large scale

at
is
l
ta
pi
ca
g
in
rk
Wo
.
ng
gi
er
em
e
ar
ns
io
at
or
development corp
e
at
iv
pr
e
iv
ss
ma
t
ac
tr
at
to
e
bl
la
ai
av
e
ar
es
iv
nt
ce
in
hand. Existing
investment.

d
ul
wo
n
io
at
or
rp
co
e
ic
rv
se
n
ba
ur
al
on
A nati
me

accelerate the organization of these

*

secure access

*

pool markets for higher level, less

*

|

local corporations

to capital investment

expensive materials,
work technologies.

systems

and

train management

This conference,

acting under your leadership and

direction, with understanding of the value of economy of scale
and efficient management could be the catalyst to bring this
innovation about.

and
s
on
ti
nc
fu
the
of
e
lin
out
an
g
in
os
cl
en
m
la
,
At your convenience the
capabilities of such a corporation.
appropriate back up materials can be provided.
I commend

it to your attention.

Respectfuliy yours,

Walter

P.

Reuther

Three

The pressure on housing
factors contribute to this:

in America

is explosive.

faster than it

®

older housing is decaying
can be replaced;

*

the growth in population accompanied by
tapid urbanization and decline in household
size is expanding the need;

%

increasing costs and a low rate of housing
starts are insufficient to keep pace wita
the need or the price that perhaps half of
our families can pay.

As this pressure builds up the country has two options:
. ¥

#

it can divert a greater share of our
national resources to build housing,
or it can do more with the same amount
This option can only be
of resources,
effective with a major technological
breakthrough,

We are not going to achieve this technological advance

without Presidential
innovation,

leadership

in bringing

about institutional

Your leadership in the War on Poverty and the
development oi the Model Cities program has had grass-roots
repercussions around the country.

_

There is significant evidence of a growing readiness
to support such large scale institutional innovation.
Local urban
development corporations are emerging.
Working capital is at
hand.
Existing incentives are available to attract massive private
investment.

A national urban service corporation would
*

accelerate the organization of these
local corporations
_

*

secure

*

pool markets for higher level,
expensive materials, systems

access

to capital investment

work technologies,
a5

under

your

leadership

and

with understanding of the value of economy of scale

and efficient management
innovation about.

could

be the catalyst to bring

this

a

P
so
3
COuUVeULCHCS
v YeUYr
appropriate back up materials can be provided.
2

I commend

it to your

Bo

.

~—

ame

me

ee

:

or

attention,

Respectfully yours,

Walter

FP.

Reuther

tis

4.4.

m

|

aéting

Mey?

conference,

aS,

train management
patty

direction,

This

|

ei

*

|

less
and

;

|

WPR;s

private

stationery---UAW

A PROPOSAL FOR A NATIONALLY BASED, PRIVATE
NON-PROFIT URBAN SERVICES CORPORATION TO
REHABILITATE AND REBUILD SUBSTANDARD URBAN
SLUM NEIGHBORHOODS

| The

pressure

on

factors

Three

housing

in

America is

to

contribute

this:

than
the

*

can

it

replaced;

in

growth

by

size

housing

and

a

the

low

of
to

are

insufficient

with

the

need. or

pace

that

perhaps

the

price...
can

families

our

half

need;

rate

starts

keep

in

decline

and

expanding

is

costs

increasing

accompanied

population

urbanization

rapid

household

*

be

faster

decaying

is

housing

older

*

explosive.

pay.
As

this

pressure

up,

the

it

can

divert

*

*

it

of

resources.
the

is

this

option

can

a major

Our
space

vehicles,

scientific
decent

and

and

society

can

automobiles,

technological

adequate

housing

continue

not

build

with

the

For

realistic

be

only

to

apply

amount

same

future

This

option.

effective

technological

our

housing,

immediate

the

through

breakthrough.

advanced

etc.,

and

to

satisfy

the

basic

healthy

and

skills
a

to

sets,

television

in

more

do

can

or

of

share

a greater

resources

national

options:

two

has

country

builds

attractive

technology
fail

human
living

to

to

apply

need

for

environment.

We have
communities

ing

organizations

at hand

to build

to

markets

enough

houses
build-

scale

small

significant

management,

effective

large

and

capital

and

present

our

But

attract

cannot

investment

to rehabilitate

better.

and

faster,

programs

and

private

of

technology

cheaper,

and

amounts

the

innova-

induce

tion,

the

the

intend

"T

citizens

an

together

to call

from

Poverty:

Rural

and

Urban

on

Congress

to

Message

1967

his

in

said

he

when

this

recognized

Johnson

President

challenge.

this

to

respond

to

initiative

and

leadership

the

provide

to

position

a

in

is

alone

President

The

the

across

of

group

outstanding

and

business

country--from

private
labor,

government and the building industry--to examine every possible means of establishing the institutions to encourage
the development of a large scale efficient rehabilitation
industry.

"IT will

ways

best

our

ing

the

at

tion
bear

maximum

and

managerial

Favorable

cities
combined

is

skills,

Climate

public

communities.

of

growing

creating
and

he

to

to

the

this

convene

the

and

the

rebuild~

systems

of

group

this

leaders

national

date.

this

invite

urban

service
resources,

rehabilitate

in

exists

find

task."

urgent

possible

and

modern

most

should

initiative

private

The

earliest

non-profit,

a national,

of

bring

that

market

President

the

time,

same

the

enormous

technology

the

at

House

White

to

and

that

urged

is

At

A

cities

the

tap

advanced

most
It

to

to

Americans

outstanding

of

group

this

ask

which

corporation
with

the

and

rebuild

our

power

groups

with

the

consider

to

group

most

organiza-

bring

will

advanced

technology

neighborhoods.

slum

Opinion

concern

a climate
private

of
of

many
opinion

institution

which
to

will

the

support

rehabilitate

and

a

problems

of

large

scale,

rebuild

to

urban

the

This

is

illustrated

E.

The

regional

dozen
groups
which

and

such

by

emergence
state

of

urban

more

have
than

have

working
90

financed

development

corporations

will

solidly

been

capital

corporations.

organized
of

percent

has

For

example,

non-profit

upwards

been

local,

At

least

or

projected.

of

$20

subscribed

These

million,

by

a

of

private

enterprise.
*

industry,

the

in

the

leading

leadership

are

million

seed

ing

$500,000

to

Workers,

and

racial

a metropolitan

it

than

more

with

corporation

urban

under

the

in

working

and

the

toward

development

Waterbury,

Company

and

community

to

is

of

a

state-wide

dollar

corporation.
the

industrial,

$500,000

to

fund

an

for

that

small

and

raise

to

pledged

have

Brass

Scovil

labor

groups

corporation

appropriat-

organization

Connecticut,

other

of

leadership

the

legislature

multimillion

similar

ment

Automobile

organizing

Jersey,

Hughes,

close

automobile

religious

availabié

Gov.

In

the

capital.

New

In

United

banks,

development
$5

Detroit

urban

develop-

city.

eres

and

form

the

New

institutional

financial
major

The

and

Corporation
The

contributed

highest

finance,

foundations,

community,

by

level
The

government

managerial
corporation

*

investment.

The

long

is

overdue.

Purposes

the

and

private

funds,

have

on

managerial

and

and
marks

it

permit

scientific

and

capital,

working

Its

would

interrelated

aggregate,

bring

academic

of

to

recruit

It

would

staff,

technical

would

the

groups.

interest

public

and

and

industry,

building

leaders

national

of

consist

would

board

corporation's

labor,

business,

Its

other

proposal

this

in

forth

set

change

institutional

national

capital

massive

attract

to

of

a national
technical

housing

reduction

missions.

in

American

the
cost

the

scale,

capability

increase
that

industry.

are

be

and

tax

supports,

local

to

appears

capital

Working

and

state

guarantees,
to

Association

Dwellings

the Chicago

emerging.

are

available

are

admixed

the

of

reorganization

as

corporation.

development

Association.

Housing

forms

Federal

incentives

such

groups

Philadelphia

and

Existing

and

reactivation

private

and

urban

groups

industrial

major

10

among

national

profit-based,

a

The

public

hand.

Science

of

Office

President's

the

and

agreement

tentative

A

4.

at

HUD

Hole

Woods

Technology.

3.
to

by

sponsored

Conference

the

from

emerged

which

proposal

corporation

ment

develop-

urban

a national

interest in

widespread

The

he

in

to

quality

the

hall-

the

identify

which
mass

those

elements

through
markets

improve

can

reduce

The

establish

national

fications

and

mass

analyze,

of

performance

organize

produced

areas.

This

of

which

The
skill
the

to

include

between

can

best

be

and

regional

development

the

planning

and

residents,

yield

and

the
and
and

technical
"parlay"

by

corporations

labor

ratios.

risk

management

performed

participation

industries,

returns.

low

have

entrepreneurial

which

capital

analyze

continuously

benefits

other

and

will

rural

incentives,

tax

comparatively

trade-offs

and

combinations

long-term

group

national

identify

tasks

will

forms

communities

metropolitan

and

at

investment

new

total

and

attract

can

of

housing,

in

residuals

franchises,

common

into

attract

guaranties,

Federal

local

distribution

and

special facilities

cities

speci-

affiliated

investment

within

would

components.

develop

private

and

corporation

low-cost

for

and

costs

corporations

development

systems

standardization

quality.

markets

and

of
and

local
with

local
municipalities.

oe.
assist
ment

in

the

organization

corporations,

technical

skills

access

capital

and

to

training

provide

and
and

and

Urban

Development

and

enhance

Department

to

the

to

raise

This

economy

of

In

elimination

of

a major

special

groups

of

achieved

and

coordinated

and

and

productivity

best

obsolete

opera-

income
through

construction

modernization
for

revising

housing

codes

bidding

information

and

realization

continuously
scope,

acts.

unions

and

will

and

inspec-

procedures.

develop

tion

for

job

this

pro-

program.

continuity

be

expand

particular

greater

turn

building

the

have

constituencies

new

Housing

Federal

industry

and

restrictive

tion

of

Cities

for

can

scale

scheduling.
develop

service

of

incentives

providing

security.

competence,

supplement,

will

Model

programming

and

to

usefulness

long-term

through

specialized

supportive

activity

contractors

tions

the

the

This

develop

develop-

programs.

with

relevance

local

managerial

cooperate

grams.

of

and
and

This

of

the

local

will

public

adjust
the

of
groups

permit

to

assist

in

goals.

and

objectives
the

general

these

evaluate

center

the

the

national

with

structure,
corpora-

which

it

inter-

emergence

of

the

mode

our

Two

questions

i
is

may

properly

Why
necessary

*

be

cities..

asked:

a national
for

corporation?

A

First-rate

scarce

managerial

and

simply

are

manage

local

as

high

not

quickly

The

as

corporations.

to

access

sources

to

bear

Most

big

to

enough

The

development
service

most

group

resources

these

bring

potential.

local

of

to

markets
for

groups

corporation

effectively.

group

the

communication
is

obvious.

can

develop

not

will

production

national

with

re-

investment

mass
A

areas

investment

for

and

for

personnel

incentives

these

necessity

and

recruit

provide

components.

aggregate

prime

programs

all,

not

if

local,

a

greatest

of

areas

on

to

able

be

development,
ized

based

nationally

will

organizing.

A national

matched.

not

be

have

local

and

resources

to

corporations

management

and

there

people

to

identify,

to

local

often

trained

would

talent

Currently

appear

group

technical

Capital

technical

development

they

train

are

*

corporation

priced.

urban

national

and

enough

responsibility

*

national

reasons:

these

is

*

of

rebuilding

the

for

tools

effective

“most

research,
standard-

can

benefit

of

among

local

A

be

all.

national

this

function

Zs

Why

for

these

a non-profit

group?

A

non-profit

group

is

necessary

reasons:
*

The

key

element

in

communities.

Its

greatest
for

the

easiest

profitable
Fee

A

would

have

position

and

grants

contract

to

process

to

be

more

responthe

of

readily

work

It
in

credentials

the

questions

where

areas

in

be

would

group

non-profit

A

*

to

critical.

are

motivations

not

organization.

delicate

and

difficult

poten-

services.

more

better

far

and

desires

community

local

to

immediately

would
and

is

greatest

these

could

It

with

of

of

needs

residents.

the

most

entity

the

to

sive

the

sale

non-profit

and

development,

or

local

to

and

is

local

to

responsibility

need

urban

entity

cities,

corporations,

development

tial

national

the

to

service--service

the

the

a better

government

with

Federal

bulk

for

mortgage

credit.

exempt
This

which

Rather,
their

change

would

assume

a new
own

and

is

set

not

a recommendation

initiative

of

and

generating

momentum

is

envisioned.

become

more

effective

group

a non-profit

Only

*

for

the

institutions

with

receive

of

a monolithic

entity

rightfully

local.

contributions.
creation

responsibilities

The

tax

could

and

institution

changing

which

are

relationships
will

have

circumstances.

which
the

|

create

capacity

to

7

The

Role

of

Private

It

development
Support

of

is

obvious

for

private

there

The

minimization

the

more

and

key

of

direct

is

rent

supplements
corporation

other
areas,

capital
These

markets

urban

for

of

nor

local

urban

involvement

in

and

elimination

include

and

materials,

and

management,

and

new

of

areas
a

industry.

effective

support:

municipal

and

state

the

These

components

scale,

Investment
continue

instrument will

investment.
aids

renewal

FHA-FNMA
will

its

local

counterparts

resources

which

have

might

active

inherent

construction

Federal,

mortgage

long-term

and
and

the

opportunities.

economy

through

risks

for

corporation

without

benefits

profitable

always

The

resource

national

effective

profit

new

Long-Term

major

be

the

generalized

more

Ll.

the

can

investment,

modernized

neither

enterprise.

from

are

financial

more

that

corporations

Aside
slums,

Enterprise

a major

play

assistance

attract

to

deprived

to

available

been

funds,

However,

role.

magnets

as

serve

can

hitherto

not

special

a

as

serve

to

include:

*

loans

by

industrial

rates

in

exchange

of

sale

outlets,
kitchen

systems,
*

and

with
by

groups

of

developments

or

depreciation
the

the

for

retail

wall

board

etc.).

lease-backs

profit

units,

interest

(prefabricated

materials

bathroom

low

stations,

(gas
and

at

franchises

for

services
etc.)

groups

housing

public
and

to

residual

investor-lessor.

local

non-

agencies
values

retained

*

lease-backs

of

institutions
the

land

land

and

is

in

by

municipalities,

other

the

organizations

path

of

where

long-term

development.
*

Turnkey

development

structures

These

"downtown"
in

which

of

slum

and

areas,

The

national

technical

local

and

higher

can

also

to

national

power

create

aero

develop

been employed

seek

to

develop

in

settings

diet iaae

and

Suppliers

ve

et

the

corporation

will

have

performance

criteria,

based

upon

The

groups.

together

in

trigger

research

and

can

and

related

markets.

This

It

suppliers.

building

developed

systems

and

expensive

less

of

development

materials

of

transfer

for

common

can

corperation

national

traditional

by

components

a

national

corporations

opportunities

space

local

the

by

building

quality

So Le

noted,

development

defense,

industries.

n Construction industry
of the
n nsio
Expa
atio
Modernizand

3.

The
little

long

rehabilitation

and Components

previously

developed

purchasing

massive

by

capacity

standards

bring

have

will

the

in

useful

Materials
As

eee

communities.

devices

corporation

multi-purpose

neighborhoods.
as

the

investment

equally

be

can

they

other

and

of

since

discontinuous

the

advent

contracting

general
of

the

is

it

operations,

20th

system

and

has

a high

small

by

rate

methods

its

changed

Characterized

Century.

unstable

has

of

and

business

Fate.
Economy

and

training

modernization
produce

for

an

locally

in

of

the

bidding,

expanded

based

use

of

of

scale,

modern

work

scheduling,

construction

contractors.

continuous flow

a

technology

and

industry

will

of

capital

create

incentives

construction

practices.

and

profitable

with

new

investment,

This

for

should

opportunities

oe
A

flow

can

modernized

in

incentive

for

turn

industry

provide

increased

with

employment

continuous,

and

productivity

income

and

systematized

security

opening

of

production

which

union

is

the

ranks

to

basic

minority

workers.

Relationship
The
Federal

with

HUD

national

agencies,

can

and

Other

Federal

corporatien,
enhance

*

HUD

SO

working

and

in

which

for bulk
for

and

will,

annual

review,

Precedents

of

for

Chicago,

Support

and

additional

and

less

processing

Cities

an

strationsin
'

of

local

this

and

detailed

other

HUD

mortgage

subject
to HUD

and

inspection.

already

exist

in

New

Philadelphia.
‘Ae

Model

Cities

program.

will

be

the

rapid

rebuilding

of

the

physical

undergird

the

sociai

goals

of

program.

higher

national

bulk

and

steps

and

and

of

institutional

development,

the

FHA

be

increment

which

Model

of

audit,

many

minute

by

course,

expensive

components

provide

require

parallel

The

and

other

insurance
of

Reservations

credit

York,

mortgage

inspection

personnel.

*

and

mortgage

certification

currently

review

the

HUD

would

streamlining

negotiate

|

It

with

procedures,

provide

*

closely

operations.

assist

*

Agencies

level

vehicle

for

systems

analysis

Illustratively,

corporation

constraints--legal,

migh

one

demon-

project

include

studies

institutional,

and

technological--which
tion

of

entire

a coordinated

In

other

the

systems

OEO,

Department,
programs

for

Relationships
The

HEW,

DOT,

labor

with

and

and

and

sub-systems.

Federal

other

work

closely

agencies

in

to

able

be

also

management

Cities

national

will

or

planning

metropolitan

overall

of

might

the

on

bear

basis.

metropolitan

corporation

to

skills

its

turnkey

as

such

construc-

communities

perhaps

national

development

and

corporation

and

situations,

Detroit,

The

multi-purpose

on

bring

prevent .the

the

with

Labor

training

developing

activities.

Groups

Local

corporations

development

locai

train

will

corporation

to

*

with

work

to

plan

development

of

housing

the

ordinate

locally
bution

*

where

ment

of

involve

home

the

or

assist

appropriate,
ownership

of

planning

the

development

reconstruction

the
of

newly

projects
in

the

the

and

develop-

neighborhood

rehabilitation
job

re-

plans.

of

residents

the

to

multi-family

new

of

distri-

limited

acquire

to

organizations

and,

total

formation

and

non-profit

based

habilitated

the

in

assist

and

encourage

and

revitalization.

neighborhood
*

for

necessary

facilities

other

co-

and

municipalities

program,

opportunities

the

in

organization

related

of

ee

indigenous

profit

manage

housing and

the

groups

to

service

related

and

commercial

facilities.

This
was
in

the
the

proposal

innovation
50's,

join

public

this

decade,

I

we

and

urge

of

must

the
now

private

this

is

in

the

1930's
create

and
the

efforts

proposal

great

in

be

American

NASA
new

the

given

opened

tradition.
up

institutions

rebuilding

the

most

of

8,

1967

our

P.

as

TVA

age

to

us

space

which

earnest

Walter

May

the

Just

can

successfully

communities

in

consideration,

Reuther

THE

WHITE

HOUSE

WASHINGTON

June

Dear

Friend:

Iam

grateful that you

me

shared

your

during the difficult and anxious

Middle

East.

10,

1967

thoughts

days

and feelings

with

of the crisis in the

We worked hard to bring about a cease-fire.
We

shall work with all our capacity to try to bring lasting

peace

to the area.

I enclose copies of my statement of May 23 and my letter to
Senator Mansfield of June 8 so that you will know the policy
of your President and your government during the crisis and
in the days ahead.

Your

understanding

and support will be appreciated.
Sincerely,

Same

wire

members

sent to Dean

of the

Senate

Rusk

and Arthur

and House

Goldberg

Foreign

as well

Relations

June

fv

President Lyndon B.

The

White House

Washingon,

D.

as to all

Committees.

1,

1967

Johnson

C.

The Honorable Dean Rusk

eecretary of State
U. S. Department of State
Washington, D, C.,

The Honorable Arthur Goldberg

United Nations
Vixshingtomekkxtx New

York,

New

York

The crisis in the Middle East not only threatens
region but endangers
and

supports

world peace

YOUR

Rresident-Johnsea's

and firm American

commitment,

of the political independence

well.
as with,
prompt

The

UAW

the peace of that

therefore welcomes

reaffirmation of the long-standing

y. OLF .

in the-President!s words,

"to the support

and territorial integrity of all the nations of the

area,"
We

also

support American

Council of the United Nations

efforts to obtain agreement

4 on a breathing

in the oecurity

spell in which tensions may

subside and time may be gained to work out solutions of the conflict,
commend

the American

offer

to work

directly

with

the Soviet

Union,

We
Britain

June 1, 1967 ~- 2
and France,

in or out of the United Nations,

to keep the peace

in the

ee)
Prompt

Arab

and peaceful

resolution of the centiics between Israel and the

states involves recognition of the fact that the Egyptian blockade of

the Gulf of Aqaba is more

than a threat to the economic

lifeline of Israel;

it is an aggression committed against the interests of all maritime nat
ions.
it is therefore a matter of urgent concern that all nations
s
t
o
B
t
n
e
d
i
s
e
r
P
f
o
e
d
e
n
u
h
e
e
o
p
expressed in

endorse the position

|

",..The United States considers the gulf to be an international
' Waterway and feels that a blockade of Israeli shipping is illegal
and potentially disastrous to the cause of peace.
The right
of free, innocent passage of the international waterway is a vital
interest of the international community.

The peoples of the Middle East have been contending and still must
contend with grave problems
Their prospects

of Israel will,

their economic

and social boderduyelon: dee

for a better life will not be

and military adventures.
people

of economic

A “holy war"

in fact,

et

development by many

0 by political instability

by the Arab

disrupt

years.

3

their

states against the
socicties

and

set back

June

1,

1967

- 3

All of the peoples
common

of the region,

interest in the prompt

Israelis

and peaceful

and need a sustained period of calm,

and Arabs

alike,

have a

resolution of the current

in which their governments

crisis

can give

their undivided attention to the promotion of econornic growth and higher

standards of living.

Walter

P.

Reuther,

Emil Mazey,

President.

Secretary-Treasurer

Leonard Woodcock, Vice President
Pat Greathouse,
Vice President
INTERNATIONAL UNION, UAW

WPR:ob
opeliu 42

90th

CONGRESS,

Beginning
U.S.

HOUSE

FOREIGN

10

lst

January
AFFAIRS

SESSION

1967
COMMITTEE

DEMOCRATS

Thomas E. Morgan (Pennsylvania)
Clement J. Zablocki (Wisconsin)
Omar Burleson (Texas)
Edna F. Kelly (New York)
Wayne L. Hays (Ohio)
Armistead I. Selden, Jr. (Alabama)
Barratt O'Hara (Illinois)
L. H. Fountain (North Carolina)
Dante B. Fascell (Florida)
Leonard Farbstein (New York)
Charles C. Diggs, Jr. (Michigan)
William T. Murphy (Illinois)
Cornelius E. Gallagher (New Jersey)
Robert N. C. Nix (Pennsylvania)
John S. Monagan (Connecticut)
Donald M. Fraser (Minnesota)
B enjamin S. Rosenthal (New York)
Edward R. Roybal (California)
John C. Culver (Iowa)
Lee H. Hamilton (Indiana)
John V. Tunney (California)

Frances
E. Ross

P. Bolton (Ohio)
Adair (Indiana)

William S. Mailliard (California)
Peter H. B. Frelinghuysen (New Jersey)
William S. Broomfield (Michigan)
J. Irving Whalley (Pennsylvania)
H. R.
Gross (Iowa)
E. Y. Berry (South Dakota)
Edward J. Derwinski (Illinois)
F, Bradford Morse (Massachusetts)
Vernon W. Thomson (Wisconsin)
James G. Fulton (Pennsylvania)
Paul Findley (Illinois) ©
John Buchanan (Alabama)
Robert Taft, Jr. (Ohio)

90th CONGRESS,
1st SESSION
Beginning 10 January 1967

U.S.

SENATE

DEMOCRATS

Eugene

J.

Clark (Pennsylvania)
Pell (Rhode Island)

McCarthy

RELATIONS

COMMITTEE

REPUBLICANS

J. W. Fulbright (Arkansas)
John J. Sparkman (Alabama)
Mike Mansfield (Montana)
Wayne Morse (Oregon)
Albert Gore (Tennessee)
Frank J. Lausche (Ohio)
Frank Church (Idaho)
Stuart Symington (Missouri)
Thomas J. Dodd (Connecticut)

Joseph S.
Claiborne

FOREIGN

(Minnesota)

:

Bourke B. Hickenlooper (Iowa)
George D. Aiken (Vermont)
Frank Carlson (Kansas)
John J. Williams (Delaware)
Karl E. Mundt (South Dakota)
Clifford P.
Case (New Jersey)
John Sherman Cooper (Kentucky)

THE

WHITE

HOUSE

WASHINGTON

June

Dear

8,

Mike:

I am delighted to respond to your note
on the current situation as we see it.
view that it is good for the President
close

1967

touch

on

this

with a brief statement
I entirely share your
and the Senate to be in

matter.

e
th
g
in
br
to
y
wa
a
nd
fi
to
is
n
er
nc
co
Our most urgent present
d
ne
er
nc
co
ly
ep
de
e
ar
We
d.
en
an
to
st
Ea
le
fighting in the Midd
o
tw
e
th
to
se
on
sp
re
e
iv
ct
fe
ef
an
en
be
t
that there has not ye
ed
ll
ca
s
ha
l
ci
un
Co
ty
ri
cu
Se
N
U
unanimous votes by which the
ed
re
ag
el
ra
Is
of
ve
ti
ta
en
es
pr
re
e
th
While
for a cease-fire.
g
on
am
,
an
rd
Jo
ly
on
,
ed
re
ag
so
al
s
to comply if other partie
.
re
fi
eas
ce
e
th
to
ed
re
ag
s
ha
,
es
at
the Arab St

d
te
es
qu
re
s
ha
,
ns
io
ct
ru
st
in
my
on
,
Ambassador Goldberg
n,
io
ss
se
l
ci
un
Co
ty
ri
cu
Se
r
he
ot
an
the immediate convening of
a
d
te
en
es
pr
ve
ha
we
d
an
n,
io
at
tu
si
to deal with the current
.
ch
ta
at
I
xt
te
e
os
wh
on
ti
lu
Reso

at
th
in
pa
d
an
g
in
er
ff
su
e
th
t
gh
ou
br
The fighting has already
ed
ud
cl
in
ve
ha
es
ss
lo
e
es
Th
.
ct
li
comes with all such conf
m—
co
ul
ef
ac
pe
of
rk
wo
e
th
in
the lives of Americans engaged
d
un
fo
ve
ha
we
er
tt
ma
is
th
On
munication on the high seas.
el
ra
Is
e
th
to
t
es
ot
pr
rm
fi
d
an
pt
om
it necessary to make a pr
ed
dg
le
ow
kn
ac
y
ad
re
al
d
ha
,
it
ed
to its cr
Government which,
e
od
is
ep
ic
ag
tr
is
Th
.
ed
iz
og
ol
ap
its responsibility and had
n
ow
r
ou
of
s
s
e
n
t
c
e
r
r
o
c
e
th
will underline for all Americans
.
ce
on
at
op
st
ld
ou
sh
ng
ti
gh
fi
urgent concern that the
t
rs
fi
nt
ge
ur
e
th
is
re
fi
eas
ce
So we continue to believe that a
e
th
of
rt
pa
ed
bl
ou
tr
at
th
in
e
ac
pe
step required to bring about
e—
as
ce
a
at
th
,
se
ur
co
of
,
ow
kn
we
At the same time
world.
l
ta
en
am
nd
fu
re
mo
ny
ma
at
th
d
an
g
in
nn
fire will be only a begi
y
jo
en
to
is
ea
ar
e
th
if
ly
pt
om
pr
questions must be tackled
th
wi
al
de
to
ns
gi
be
on
ti
lu
so
Re
w
ne
r
Ou
genuine stability.
some of these questions.

Let

the

me

emphasize

same

basic

that

policies

the

U.S.

which

continues

have

been

to

be

followed

guided

by

by

t his

T hese
Administration and three previous Administrations.
policies have always included a consistent effort on our part
to maintain good relations with all the peoples of th e area in
spite of the difficulties caused by some of their lea ders.
This remains our policy despite the unhappy rupture o f rela-—
tions

which

has

been

declared

by

several

Arab

states.

We hope that the individual states in the Middle East
find new ways to work out their differences with each
by the means of peace, and in accordance with the Cha
We look beyond the current co
of the United Nations.
to a new era of greater stability which will permit a
peoples of the area to enjoy the fruits of lasting pe
full efforts will be directed to this end.

will now
other
rter
nfEret
ll the
Our
ace.

Sincerely,
Lyndon B. Johnson
The Honorable
United States

Washington,

Mike Mansfield
Senate

D.C.

While this letter was in the typewriter I.learn ed. of
P.S.
in the proceedings of the Security
the announcement,
that the United Arab Republic accepts the ce ase—
Council,
Thus
fire resolutions subject only to acceptance by Israel.
we seem at the edge of progress in the directions this letter
indicates.

You

can

be

sure

that

this

Government

especially in
tinue its work for peace,
where Ambassador Goldberg has done such
productive work in the last days.

will

con—

the Security Council |
brilliant and

STATEMENT

BY

THE:

PRESIDENT

In recent days, tension has again arisen along the armistice lines between Israel and the
Arab States. The situation there is a matter of grave concern to the whole international community. We earnestly support all efforts, in and outside the United Nations and through its
appropriate organs, including the Secretary General, to reduce tensions and to restore stability. The Secretary General has gone to the Near East on his mission of peace with the hopes
and prayers of men of good will everywhere.
The Near East links three continents. The birthplace of civilization and of three of the
world’s great religions, it is the home of some sixty million people; and the crossroads between
East and West.
The world community has a vital interest in peace and stability in the Near East, one
that has been expressed primarily through continuing United Nations action and assistance
over the past twenty years.
The United States, as a member of the United Nations, and as a nation dedicated to a
world order based on law and mutual respect, has actively supported efforts to maintain peace
in the Near East.
|
The danger, and it is a grave danger, lies in some miscalculation arising from a misunderstanding of the intentions and actions of others.
_ The government of the United States is deeply concerned, in particular, with three potentially explosive aspects of the present confrontation.
First, we regret that the General Armistice Agreements have failed to prevent warlike
acts from the territory of one against another government, or against civilians, or territory,
under control of another government.
|
Second, we are dismayed at the hurried withdrawal of the United Nations Emergency
Force from Gaza and Sinai after more than ten years of steadfast and effective service in
keeping the peace, without action by either the General Assembly or the Security Council.
We continue to regard the presence of the United Nations in the area as a matter of fundamental importance and shall support its continuance with all possible vigor.
Third, we deplore the recent build-up of military forces and believe it a matter of urgent
importance to reduce troop concentrations. The status of sensitive areas, as the Secretar
General emphasized in his report to the Security Council, such as the Gaza strip and the Gulf
of Aqaba, is a particularly important aspect of the situation.
In this connection, I want to add that the purported closing of the Gulf of Aqaba to
Israeli shipping has brought a new and grave dimension to the crisis. The United States considers the gulf to be an international waterway and feels that a blockade of Israeli shipping is
illegal and potentially disastrous to the cause of peace. The right of free, innocent passage of
the international waterway is a vital interest of the international community.
The government of the United States is seeking clarification on this point. We have urged
Secretary General Thant to recognize the sensitivity of the Aqaba question and to give it the
highest priority in his discussions in Cairo.
To the leaders of all the nations of the Near East, I wish to say what three Presidents
have said before—that the United States is firmly committed to the support of the political
independence and territorial integrity of all the nations of the area. The United States strongly
opposes aggression by anyone in the area, in any form, overt or clandestine. This has been
the policy of the United States led by four Presidents—President Truman, President Kisenhower, President Kennedy, and myself—as well as the policy of both of our political parties.
The record of the actions of the United States over the past twenty years, within and outside
the United Nations, is very clear on this point.
The United States has consistently sought to have good relations with all the states of
the Near East. Regrettably this has not always been possible, but we are convinced that our
differences with individual states of the area and their differences with each other must be
worked out peacefully and in accordance with accepted international practice.
(1)

2


nt
me
mo
this
at
ld
wor
the
of
ts
par
er
oth
in
ose
opp
we
We have always opposed—and
We
n.
sio
res
agg
by
ors
ghb
nei
ir
the
h
wit
ms
ble
pro
ir
the
e
olv
res
to
the efforts of other nations
se.
ewi
lik
do
to
s
ion
nat
ing
lov
cepea
er
oth
all
to
eal
app
we
And
shall continue to do so.
s
tie
ili
sib
pon
res
emn
sol
ir
the
int
tra
res
of
rit
spi
a
in
e
erv
obs
We call upon all concerned to
e
vid
pro
se
The
s.
ent
eem
agr
ice
ist
Arm
l
era
Gen
the
and
s
ion
Nat
ted
under the Charter of the Uni
l
ona
ati
ern
int
the
of
s
ort
eff
the
h
oug
thr
il,
unt
es
iti
til
hos
g
tin
ven
pre
of
an honorable means
community, a peace with justice and honor can be achieved.
at
rg
dbe
Gol
or
ad
ss
ba
Am
h
wit
ad
ahe
s
day
the
in
will
and
t
tac
con
se
clo
I have been in
ty
uri
Sec
the
e
hop
and
r,
vigo
at
gre
h
wit
ter
mat
the
ng
sui
pur
are
we
re
whe
s,
the United Nation
Council can act effectively.
The White House

May 28, 1967

For

Release:

REGION

AID

TO

DRIVE

ECONOMIC

UN

ASKS

NATIONS;

MID-EAST

BY

NEGOTIATION

DIRECT

URGES

BOARD

EXECUTIVE

UAW

be

be

must

"For

have

leaders
to

For

Jews.'

the

the

independent
accepting

State

nation
Israel

continued

of

and

in
their

Israel. The

blind
in

a

as

of

propaganda

present

of

the

community

cooperation
of

crisis

a holy

in

right

its

and

Israel

a member

spirit

the

the

and

war

Arab

to

of

leaders

and

Israel

and

a

as

live

nations.

sovereign

Instead

these

coexistence,

refused

have

leaders

at

the

destruction

East

is

the

product

-

Bore

-

and

of
leaders

Arab

directed

Middle

Arab

certain

of

passion

These

East.

Middle

peace.

annihilate

irrational

and

hatred

to

war

region,

the

lasting

certain

by

‘holy

a

a

toward

progress

a drumbeat

for

a call

relations

e
existencof

been

has

by
the

years

inflamed

recognize

have

passions
20

no

in

cooperation

and

trust

an

have

nations

other

with

rests

issues

these

with
and

powers

substantial

there

years

many

inflaming

nations

be

can

there

which

without

of

problems.

dealing

for

effort

determined

and

a concerted

these

world

the

a climate

create

help

to

obligation

to

Israel,

with

and

states

Arab

the

solution

responsibility

major

the

"While

and

the

a peaceful

find

to

made

in

exist

now

which

realities

region,

hard

the

of

and

unresolved problems

and

underlying

the

to

up

facing

frank

a

effect.

in

is

fire

cease

precarious

must

there

recur,

to

not

are

hostilities

If

a

and

silenced

now

are

guns

the

East,

Middle

the

of

area

tragic

the

UAW International
June 16, 1967. and

was adopted unanimously by the
meeting in Toronto, Ontario on
in Detroit and Washington.)

(The following statement
Executive Board at its quarterly
is being released simultaneously

"In

1967

16,

June

Immediate--Friday,

of

of

this

the

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and

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directly

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CARE THEODORE C REU THER > REPORT DLY=
REUTHER
|
FLORAL AVE WHEELING WI Re ees

THE NEWS OF YOUR FATHE | RYS GRAVE TLLNESS 1s VERY SADe MY
PRAYERS ARE WITH YOU BOTH AND YOU CAN CALL ON ME FOR ANY
ASSISTANCE® | KNOW HOW MUCH YOUR FATHER WILL BE COMFORTED —
BY YOUR PRESENCEe HIS PRIDE IN YOU IS CONFIRMED
ASAIN BY |
RECENT COURAGEOUS AND EFFECTIVE EFFORTS ON YOUR COUN TRY¥S
BE HALF e SECRETARY WIRTZ SHARES MY GREAT HOPE THAT YOU WILL. :
BE ABLE TO SEE IT THROUGH DESPITE THIS FAMILY TR AGED Ye 4
YOUR
DOES
AS
NTs
ASEME
ENCOUR
YOU HAVE ALL OUR SYMPATHY AND

JDEAR MOTHER WHOM 1 KNOW WILL FIND YOU A TOWER OF STRENGTH
nna
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B
r
TIM
E=
LAT THIS
SH

LYNDON

WU 1201 (R2-65)

THE

COMPANY

B

WILL

mee,

J OHNSON=

APPRECIATE

SUGGESTIONS

FROQM

ITS

PATRONS

CONCERNING

ITS

SERVICE

*

Dear

Mr.

President:

"
ed
sh
li
mp
co
ac
on
si
is
"m
rt
po
re
I am pleased to

an
by
y
da
er
st
ye
ed
fi
ti
ra
s
wa
ct
ra
nt
co
w
ne
The
in Aveo.
co
Av
th
bo
in
so
ie
W
UA
e
th
of
te
GuerUnENEENS vo
of
continued un: ater rupted —
,
a
re
cu
se
to
s
rt
fo
ef
my
in
l
fu
lp
he
st
mo
re
Jim Reynolds we
e.
ut
sp
di
in
es
su
is
e
th
of
nt
me
le
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se
e
bl
ta
ui
eq
just and

ch
mu
d
di
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ag
ss
me
c
ti
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at
mp
sy
d
an
rm
Your wa
y
av
he
s
wa
t
ar
he
my
for
,
it
ir
sp
my
en
th
ng
to lift and stre
dy
bo
my
d
an
s
es
ln
il
al
ic
it
cr
's
er
with sadness over my Fath
was weary from the long all-night bargaining session,

s
er
mb
me
r
he
ot
e
th
d
an
me
th
wi
My Mother joins
on
ti
ia
ec
pr
ap
e
er
nc
si
st
mo
r
ou
ng
si
es
pr
of my family in ex
for your concern and sympathy and for your kindness in
re
er
th
Fa
My
.
er
th
Fa
my
to
s
er
ow
fl
ly
ve
lo
e
th
g
sendin
is
he
at
th
s
se
vi
ad
or
ct
do
e
th
d
n
an
io
it
nd
co
al
ic
mains in crit
being sustained essentially by his indomitable will.

It is good to
to be able personally to
tions because I knew of
need of our country and

was pleased
Id
be on your team, an
follow through in the Avco negotia~
your deep personal concern and the
our fighting men in Vietnam depended

t:
an
pl
co
Av
the
at
on
ti
uc
od
pr
d
te
up
rr
te
in
un
on
up

Warmest personal regards,
With grateful appreciation for your

Sincerely,

W PR:ob
opeiu 32

President Lyndon B. Johnson

The White House

Washington,

D.

C.,

kindne

STRAIGHT

July 28,

WIRE

1967

President Lyndon B. Johnson
The White House

Washington,

D.

C.

My warmest congratulations.
will answer your call to join th

I am confident American people
sic
bae
oev
ive action to remth

causes of unrest.

Men and women of good will of all races,

all creeds and political

to
er
eth
tog
g
kin
wor
by
ies
cit
our
in
ses
cri
the
to
d
pon
res
t
mus
persuasion

ee Oe

President Lyndon B. Johnson

~2<

July 28,

1967

visible scars in our city so that the invisible scars in men's hearts may
heal more easily.

ee

Se

OTE

a

eT

Ee Te De Na

e to:

International Union, UAW
8000 East Jefferson Avenue

Detroit, Michigan 48214
926-5201

THE

WHITE

HOUSE

WASHINGTON

July 29,

Dear

1967

Walter:

-~-.

We must work and pray for harmony between the races,
and prevent the destructive acts of a criminal few from |
prejudicing the great law-abiding majority of Negro

citizens, who deplore the havoc and suffer its torment

the most.
--

My

All levels and branches of Government must now press,
with new resolve, the Nation's peaceful attack on the
conditions which breed despair and violence,

convictions

on this urgent problem

are

set forth in my

address to the Nation on July 27, 1967. Iam enclosing a
copy
of that address, with the firm belief that working tog
ether in

partnership

and understanding

we

can see America

through this troubled day -- to the better days
Sincerely,

Honorable

Walter

P.

President

International

Reuther

me

Union,

UAW,

800 East Jefferson Avenue

Detroit,

Michigan

48214

AFL-CIO

safely

that wait ahead,

¢

Above all, lawless disorder must be halted quickly and
effectively, whenever and wherever it occurs. Local
initiative and local action must form the first thrust of
this effort. But when local resources are inadequate to
the challenge, Federal power will back up local forces
to the limit the law permits,

NN :eS Re

-

ee

respon-

Ee

For all our citizens, but particularly for those in public
sibility, this National tragedy poses grave obligations,

Aion

Riots and disorder have brought violence and agony to the streets
of America and to the hearts of its people.

WPR

NOTE

On Friday,

July 21,

1967,

Jim Reynolds phoned WPR

and advised that the President had asked him to contact several key

people and to get their reactions with respect to a tax increase.

WPR advised Jim Reynolds we had very serious reser~vations concerning the advisability of a tax increase at this time; we felt
that while the general economic situation had improved,

we were still not

out of the woods and that a premature tax increase might possibly tend to

compound negative economic factors and retard further recovery.

Reynolds

said he would relay this to the President

On Saturday,
Ackley,

July 22,

Chairman of the President's

1967,

at 2:00 p.m.,

Gardner

Council of Economic Advisers,

phoned

_WPR at home and advised him that the President had asked him to call
about the tax question based upon the report that Jim Reynolds had given

the President.

WPR

reviewed his position with Gardner Ackley and

stated that his position had not changed from the one that he had given to
the President at the time he met with the President in Austin,
December of last year.
concerns that WPR

Texas in

Ackley indicated that they had some of the same

had but said that the President felt that he had to get

tax authorization out of this Congress because it would be impossible in

1968,

Gardner Ackley said that the President was going to
aim at an October date but would settle for a January

told him that a January

Ist date.

WPR

list date for a tax increase would obviously be

less risky and Ackley said that he would therefore advise the President
accordingly.

WPR:ob
opeiu 42

July 31,

1967

WPR

NOTE

On Monday,
WPR

July 24,

1967,

Mayor Cavanagh phoned

in the late afternoon and asked if WPR would call the President and

urge that federal troops be sent into Detroit since Mr.
President's personal representative,

Cyrus Vance,

the

did not feel the situation at that

time justified the commitment of federal troops.

WPR advised Mayor

Cavanagh that he was not in a

position to make a judgment of the Detroit situation since his only
knowledge was from the press and television,

while Mr.

Vance had

direct knowledge since he was working directly with law enforcement agencies.
At 10:00 p.m.

that evening,

Mayor

Cavanagh spoke to

WPR again and it appeared that at that time Governor Romney was

vacillanting with respect to the commitment of federal troops.

WPR

requested Mayor Cavanagh to give him specific facts concerning the
situation in Detroit at that hour and based upon this information,

did agree to phone the President.
WPR
p.m.

}

spoke to the President at approximately

on the evening of July 24,

WPR

10:30

1967 and the President indicated that the

Governor was vacillating and that he could not in good conscience send in
federal troops under these circumstances.

WPR advised the President

that in his judgment federal troops would need to be committed and that

the real question was when they would be com mitted.

WPR

indicated that

in his judgment the longer he delayed commitment of federal troops the

more serious the situation would become and therefore the more difficult
it would be to reestablish law and order.
The President agreed to commit the troops and shortly
thereafter Mayor Cavanagh called WPR again to tell him things were

moving.

On Tuesday morning,

July 25,

phoned WPR to thank him for having called him.
which he had just received from t

1967, the President
He gave WPR a report

djing officers in Detroit and

indicated that there was the finest coope
Police Department,

National Guard and federal troops.

The President

then told WPR off-the-record that Abe Fortas was with him

the night

before and that he had urged great cautior in moving in federal troops.
The President then said that some of the very people who had criticized
him for killing innocent women and children in Vietnam were just waiting
to make the same charge in Detroit.

He indicated that he had instructed

the federal troops to advise the people on the streets in Detroit that they
were the same troops sent to Little Rock to defend the rights of Negroes
to attend school and who had defended James Meredith at the University of

Mississippi.

The President then discussed with WPR at some

length the legislative program,

poverty,

WPR:ob

opeiu 42

rent supplement,

including safety in the streets,

ant

anti-rat bills and many other items which he

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aR

August 22,

Dear

1966,

Mr.

1967

President:

As you may recall, I wrote to you on February 11,
regarding the UAW's interest in the establishment of a

Redwood National Park of some 90, 000 acres in the Redwood
Creek area. In that letter I indicated that our position was
established after considerable study of the various proposals
advanced for a Redwood National Park.

We have continued to study and evaluate the various

proposals advanced since we established our original position.
All of the ingredients necessary for a true and fitting Redwooc

National Park <-- a large and significant stand of superior
virgin redwoods, ecological conditions most advantageous to

redwood preservation, outstanding panoramic views, a long
ocean-front beach, wildlife concentrations of major size, as
well as a number of wilderness watersheds -- are still the
main attributes of the 90,000 acre site. The overwhelming
majority of individuals and organizations who have expressed
interest in a Redwood National Park have supported the Redwood Creek site.

I arm well aware that you and your administration
have been the staunchest advocates of the need for the
establishment of a Redwood National Park. Aside from the
lumber industry, there appears to be practically unanimous
support for the Park.
The matter of site selection, size and

cost have been the major points of difference between the
aaneees National Park proponents,
It is a source of personal
ypointment that the Department of the Interior recommen-

ded the Mill Creek site for the Redwood National Park in spite
of all the attributes of the Redwood Creek area. I am still
hopeful that a careful review of the entire situation will persuade the Department of the Interior to support the Redwood
Creek site.

When all the arguments are given for the various Redwood National Park proposals, one question still remains.
Can
the richest nation on the face of the earth afford to create a
Redwood National Park deserving of the hopes and aspirations
of a society which has at its core a set of values truly worthy
of the name -~- a Great Society? The UAW feels that the answer
is yes and that the Redwood Creek site is the only proposal
which meets this criteria.

The Redwood Creek site is truly deserving of your
support and leadership, and I do hope that you will use your

personal influence to ensure the creation of a Redwood National

Park worthy of the highest ideals of all Americans for generations to come.
Warmest

personal regards.
Sincerely,

WPR:ob

opeiu 42

President Lyndon B. Johnson

The White House

5
aaah

HOUSE

souisueiesta
clese ccs
dea
antid

erties +

WHITE

comese tania

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tacnteimumiistaniiic

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sn sen enenyephiniiasieamenesesietsen

THE

2 ORE
RBED BAL

1967

SE

SA ON

MS SEN EHO OSES

ll,

*

October

SALE OO Soy tN

ai

ON aE

HR

ra

.

WASHINGTON

nate

Walter:

the

Dear

I have been advised that it is the view of the Secretary of
Defense and the Administrator of the National Aeronautics
and Space Administration that the state of construction
activities at the Nation's missile and space sites no longer
requires the continued operation of the Missile Sites Labor
Commission.
I have accordingly transferred the responsibilities of the Missile Sites Labor Commission to the Federal
Mediation and Conciliation Service.

I would like to use this occasion to express my gratitude for
your service in connection with the activities of the Missile
Sites Labor Commission.
The success of the Commission -and the role which it has played in the advancement of our
missile and space programs -- can be attributed in no small
measure to the selfless contribution made by you and your
colleagues.
|
I thank you on behalf of your fellow countrymen.

Sincerely,

Mr.

Walter

P,

Reuther:

President

United

Auto

Workers

AFL-CIO
815

16th Street,

Washington,

D. C.

NW.

November

Dear Mr.

2,

1967

President:

The agenda of the current session of the UN
General Assembly is heavy with items dealing with
long-standing disputes, troubled spots and peacekeeping activities, colonialism, etc. One item of a constructive and affirmative character which has the
potentiality of raising the UN Assembly to a sense of

historic purpose

and renewed

commitment

to the

broader aspirations of the human communit
item which relates to the future uses of the resources
of the sea.

As you know, Mr. President, the delegate
from Malta has placed this item of the sea and its
resources on the agenda for consideration by the UN
General Assembly at this session,

On July 13, svat, Mr. President, you spoke
prophetically about the opportunity and the challenge
that the sanonanes resources of the sea offers mankind
:
;
:
jponsible approach is taken by the

world

saanenaniee.

In your memorable speech you correctly

pointed out that under no circumstances must we
paewné a new form of colonial competition among the
maritime nations; we must be careful to avoid a race
to grab the lands under the sea; and we must insure
that the deep sea and the ocean bottom remain the
legacy of all human beings. Speaking about the living
things of the sea, you said that whereas throughout
history we have been hunters of the sea, now we must
learn to farm the sea.

As the United Nations consider this critical
item, I urge you to again make your voice known with the
clarity and compassion that has characterized your
leadership on the great issues that effect the welfare and

well-being of the human

family.

I understand that this item on the agenda may
be reached the last of this week or the first of next week.
Presumably the United States Representative will speak

shortly after Ambassador Pardo of Malta delivers the

opening address.

:
suppo
astemesiene’ be » maend. “There ) i l be
liberal position; there will be some opposition; some

delegates will not speak because their governments have
not thought through the problem. If the General Assembly
should adopt a mild resolution calling for unhurried study,
By the
it will have missed the urgency of your address.
time the committee finished its report, the bed of the
sea could be so marked up by colonial and power struggle
claims that a decent world order as you contemplate

would be impossible.

On the other hand, the Assembly could adopt
some bold principles such as you proclaimed on July

13th,

including the fact that the bed of the sea was not

subject to appropriation by any state and that its
resources must be so administered as a common
heritage of mankind. A committee could then work out

a regime under the authority of the United Nations to
incorporate these principles.

t
ge
ly
mb
se
As
e
th
at
th
is
g
in
th
t
an
rt
po
im
The
by
ed
in
rm
te
de
be
ll
wi
is
Th
t.
ar
st
us
off to a courageo
e
Th
.
es
at
St
ed
it
Un
the
of
ip
sh
er
ad
le
d
an
the vigor
t
an
rt
po
im
an
d
me
or
rf
pe
s
ha
a
lt
Ma
of
ve
ti
ta
en
es
pr
re
nno
l
al
sm
a
of
ve
ti
ta
en
es
pr
re
the
is
he
t
bu
service
maritime

power,

The point could very well be made that the
capacity which nations such as the United States h
ave to
explore and develop the sea's resources can be pr
otected by a rational order for the sea, whereas a po
wer
struggle or colonial race would be inimical te the
interests of the maritime powers as well as the u ander.
privileged peoples,
On October

10th you signed the outer space

treaty. The sea, which is of much more practical use
to the world, must likewise be brought under world law

and order.

I know that you look forward to an early

signing of a treaty to this effect which would incorporate
the principles and purposes which you have expresse
d

with such clarity and conviction,

Mr.

President,

Il urge your vigorous leadership

in this critical matter so that this historic opportunit
y
can be translated into practical fulfillment and insure
that the vast resources of the sea, which are the heri+
tage of all mankind, may be used to strengthen the efforte
to build a rational and responsible world comm unity in

which peace, freedom,

social justice and human fulfill-

ment can be the blessings of all mankind

I send my warmest best wishes.
Respectfully,

WPR:ob
opelu 42

President Lyndon B.

The White House

Johnson

S
ee Ragaa
Ra

WHITE

SoA IY ne AE

STIE

HOUSE

WASHINGTON

November

Dear

6,

1967

Walter:

Thank you for your helpful letter regarding the General
Assembly debate on a regime for the bed of the sea.

I share

your view of the historic

opportunity we have

to

way become the heritage of all mankind,
I think that
the statements to be made shortly by Arthur Goldberg,

when

debate

on the

Malta

resolution

is resumed,

will

_

prove this Government supports the principles first
declared last July at the dedication of the Oceanographer
and to which you so kindly refer.
We may not yet know enough about the sea and its
mysteries to plan in detail a complete system of international law and administration; but by rallying the
United Nations to certain essential basic principles, we
can lay the basis on which international law and adminis.
tration can be developed in the future.
_
Sincerely,

Mr.
Walter Reuther
President
United Auto Workers
8000 Fast Jefferson Avenue

Detroit,

Michigan

48214

CABLE: “UAW
es

!

a

DETROIT”

a

|

:

,

Lf

otidarity

86000

ais

EAST

DETROIT,
Puone

INTERNATIONAL

UNION,
WALTER

UNITED
P.

AUTOMOBILE,

REUTHER.........

LEONARD

AEROSPACE

& AGRICULTURAL
EMIL

PRESIDENTS

WOODCOCK..VICE-PRESIDENT

PAT

The
The

GREATHOUSE.......

15,

AVE.

JEFFERSON

48214

MICHIGAN
- 926+

59000

SECRETARY-TREASURER

AMERICA-UAW
|

VICE-PRESIDENT

1967

President,
White House,

Washington
Dear

oudse

IMPLEMENT WORKERS OF

MAZEY.....

December

0

25,

President

D.C.

Johnson:

In behalf of the members of the UAW I am writing to urge you
to veto HR 12080, the Social Security Amendments of 1967, and to request
the Congress to pass a new bill which would provide more adequate
benefits and eliminate the punitive and regressive welfare amendments
which are part of the measure now on your desk.
I make this recommendation only after careful consideration of
its implications.
I recognize as I know you do, the critical need to improve
the cash benefits for the elderly, the disabled and the others who are
almost wholly dependent upon Social Security payments for their existence.
The adoption of this bill, however, will not meet their needs in a significant
way.
It will prove to be a cruel disappointment, for our senior citizens

will not receive the increases

they need and deserve.

Raising the minimum benefit from $44 to $55 and providing for a

13% across-the-board increase in benefits falls substantially short of your
own recommendations to the Congress and objective estimates of what
is really required to bring the elderly poor to a minimum decent level of
existence, as I have outlined in testimony to both the House and the Senate.

In terms of purchasing power -- what our aged citizens can buy
with their 1968 dollars -- the cash benefits provided by the bill on your desk

represent a 4% increase

compared with 1954 benefits.

When one considers the fact that nearly two-thirds of single
people past 65 and a third of those living in family units are classed as
"poor or near poor", a 4% increase will obviously be nothing more than
tokenism.
The decision of the House-Senate conferees to reject the Senate
_passed proposal and instead to raise the Social Security contributions base
to only $7800 continues the regressive nature of Social Security taxes.

-

PRINTED

IN USA

ee

Those who can least afford to, workers with low incomes, will be
paying proportionately more of their wages in Social Security taxes

than the middle and upper
pay the increases.

income

groups

who

are

far more

able

to

Mr. President, this bill is an important test of the firmness
of this nation's determination to stamp out poverty in America.
You
have forcefully and properly expressed the country's concern over the

growing

alienation
Those

America.

cities,

experts
to add

help.

are

of millions

who

are

representatives

have

to the

of the poor in the ghettos

close

to the problems,

of the poor,

social

testified that the welfare

alienation

and

resentment

mayors

scientists

provisions
of those

and slums

and

in

of our major

social

welfare

of this bill are likely

whom

this

bill aims

to

To cite only two of a number of the welfare provisions which
repugnant to those who wish to help and not punish the poor:
.

Imposing a freeze on Federal matching funds for aid to
families with dependent children so that the proportion
of children in each state cannot exceed that of January 1,
Certainly no serious
1968 defies rational analysis.
claim can be made that such a proposal will reduce
illegitimacy or poverty.
Rather it appears to be aimed
at saving Federal funds by punishing the unfortunate
children or passing on new welfare payment burdens to
the states and counties, which in many instances they
cannot or will not assume.
Requiring that mothers of children in AFDC programs,
as a condition of continuing to receive relief, be required
to go to work or take training for work is a negative and
self-defeating device.
Denying these mothers the right
to free choice as to whether or not they shall be separated
from their children can only further underline the growing

belief held by many
class
older

citizens.
and more

those

without

of the poor that they are in fact second

The proposal turns its back on a much
fundamental law -- that children particularly

fathers,

need

the

care

of a mother

and

home-

maker if they are to grow into decent and constructive
citizens.
The discretionary provisions in this measure
will not be meaningful, for those states where welfare
standards

are

lowest,

least likely to grant

and

administration

the exceptions

harshest,

the measure

are

permits.

Mr. President, Iam keenly aware of the serious implications
of a veto. This however is a bad bill.
It cannot be defended on either
economic or moral grounds.
Certainly none of us wishes to see the
elderly deprived of added cash income.
A veto need not deprive them >
of new benefits.
On the contrary, it would be an act of courage and of
faith that the Congress would and could promptly enact a new measure
with more adequate benefits and without the provisions which will
punish and further alienate the poor of our country.

With all good wishes,

Sincerely,

WPRier

opeiu42

,

Walter

P.

INTERNATIONAL

ee

UNION

UAW.

7

THE WHITE HOUSE
WASHINGTON

May 27,

Dear

Mr.

1967

Reuther:

Because of your interest in the political
process, the President wanted you to have
a copy of his recent message to Congress
on this subject.

We would like to get the benefit of your reaction, thoughts and experience on these

proposals.

Sincerely,

OSs

. VCalifan
sistant to the

Mr. Walter P. Reuther
United Auto Workers
8000 East Jefferson Avenue

Detroit,

Michigan

Enclosure

48214

Js
resident

MAY 29 1967

MAY 29 1967
90th Congress,

-

Ist Session

PUBLIC

-

-

PARTICIPATION
OF

~

-

IN THE

House

Document

No. 129

PROCESSES

GOVERNMENT

MESSAGE
FROM

THE PRESIDENT OF THE UNITED STATES
TRANSMITTING

RELATIVE TO PUBLIC PARTICIPATION IN THE
PROCESSES OF GOVERNMENT IS THE ESSENCE
OF DEMOCRACY

May 25, 1967.—Referred to the Committee of the Whole House on
the State of the Union and ordered to be printed
U.S.
65-011

O

GOVERNMENT

PRINTING

WASHINGTON

: 1967.

OFFICE

To the Congress of the United States:
I. INTRODUCTION

Public participation in the processes of government is the essence of
democracy. Public confidence in those processes strengthens democracy.
No Government can long survive which does not fuse the public
will to the institutions which serve it. The American system has endured for almost two centuries because the people have involved
themselves in the work of their Government, with full faith in the
meaning of that involvement.
But Government itself has the continuing obligation—second to no
other—to keep the machinery of public participation functioning
smoothly and to improve it where necessary so that democracy remains a vital and vibrant institution.
It is in the spirit of that obligation that I send this message to the
Congress today. I propose a five-point program to:
—Reform our campaign financing laws to assure full disclosure of
contributions and expenses, to place realistic limits on contributions, and to remove the meaningless and ineffective ceilings on
campaign expenditures.
—Provide a system of public financing for Presidential election
campaigns..
—Broaden the base of public support for election campaigns, by
exploring ways to encourage and stimulate small contributions.
—Close the loopholes in the Federal laws regulating lobbying.
—Assure the right to vote for millions of Americans who change
their residences.
Il.

Tae

Exvection

Rerorm

Act

or

1967

In our democracy, politics is the instrument which sustains our
institutions and keeps them strong and free.
The laws which govern political activity should be constantly
reviewed—and reshaped when necessary—to preserve the essential
health and vitality of the political process which is so fundamental to
our way of life.
In my 1966 State of the Union message I called attention to the
need for a basic reform of the laws governing political campaigns in
these words:
. . . I will submit legislation to revise the present unrealistic restrictions on
contributions—to prohibit the endless proliferation of committees, bringing
local and state committees under the act—and to attach strong teeth and severe
penalties to the requirement of full disclosure of contributions . . .

_ A year ago this month, I submitted my proposals to the Congress
in the Election Reform Act of 1966.
That measure reflected my concern, as one who has been involved
in the process of elective Government for over three decades, that the
A

MAY 28 1967
THE

WHITE

HOUSE

WASHINGTON

May
Dear

Mr.

22,

1967

Reuther:

Two more handsome photographs
for your picture album -- that
the President wanted you to
have.
With his best wi

oT

always,

ee

»

Roberts

rsonal Secretary

to the

President

¢



LORETO

P.
oe
=.

+

ba

TTT PLE

EOP

Nr OLASL

ag

Fa

ete san

t
aibaniiaiin

THE

WHITE

HOUSE

WASHINGTON

June

Mr.

Walter

P.

1,

1967

Reuther

President
International

Union,

United

Automobile

Aircraft and Agricultural
Implement Workers of America
8000 East Jefferson Avenue
Detroit, Michigan 48214
Dear

Walter:

The President thought you might like to have
the enclosed pictures which were taken at
the May 2 meeting of the Labor Management
Advisory Council.

Sincerely,

geph A.
Assistant

Enclosures

Califano,
to the

Jr.
President

June 7,

Dear

1967

Joe:

Thank you for your kindness in sending me the

copies of the photographs

Labor-Management

taken during the recent visit of the

Policy Committee to the White House.

All good wishes.

Sincerely,

WPR:ob
opeiu 42
}

Mr. Joseph Califano

Special Assistant to the President
The White House

Washington,

D.

C.

STRAIGHT

WIRE

W.

Watson,

Marvin

June 9,

1967

Special Assistant to the President
The White House
Washington, D. C.

Sincerely regret other commitments will deny me privilege of joing

with you at swearing of Mr.

Vincente Ximes this afternoon.
Walter

P.

Reuther

*;

ja

es

chet esata

Ieee

WN

Ht

kal

He

C. =

WPRioeb
opeiu 42

AN Ry

arie: s
mary
apgee
fh.

HOUSE

WHITE

e aohoieg
fy obSe

THE

ie

1967

PE he

16,

y

fetes

s

;

sents
ve
ttt Bc
Pgs Site
PR ATS
setaSierasap be e PR

June

SALds I saa

MEO:

‘ SI eg
<

WASHINGTON

RES



Walter:

et ner By wiegens 2

dt) 3 Slibe

pm Ki

jes
sh

owe

SRO

{a

Dear

gegen
TOR
OE
il
;

y
m
in
n
o
i
t
s
e
u
q
t
es
ht
ig
There was never the sl
e
th
e
v
r
e
s
to
y
it
il
ab
s
'
l
mind of Judge Marshal
s
hi
,
e
c
n
e
i
r
e
p
x
e
s
Hi
Court with distinction.
t
n
e
m
g
d
u
j
od
go
d
e
t
a
r
t
s
n
o
m
e
wisdom, and his d
dispelled all doubt.

I
EEE

Ie a

States.

y
m
to
ds
ad
t
n
e
m
e
s
r
o
d
n
e
c
i
t
s
Your enthusia
of
er
st
ro
e
th
in
jo
ll
wi
he
at
confidence th
e
th
d
e
n
e
h
t
g
n
e
r
t
s
ve
ha
o
wh
eminent justices
d
de
un
fo
s
wa
on
ti
na
r
ou
h
institutions upon whic
in
ow
gr
to
ue
in
nt
co
ll
wi
it
-- and upon which

8000

East

Detroit,

Union,
Jefferson

Michigan

SRE

tas Pe

Reuther

UAW, AFL-CIO
Avenue

48214

en atts

President
International

P.

AC

Walter

onan

Honorable

BORE PRR

e
Drain nom,
proton ceetealin

pute

3
see

eR
on AeA

Sincerely,

pM

tn

ae

greatness.

June

My dear Mr.

20,

1967

President:

I attach herewith the full text of a statement on
the crisis in the Middle East which has been adopted
the
of
d
ar
Bo
e
iv
ut
ec
Ex
l
ona
ati
ern
Int
the
by
y
sl
ou
im
an
un
UAW, on behalf of the Union's 1,600,000 members in
the United States and Canada.

Because of the critical nature of developments in
it
ed
er
id
ns
co
has
on
ti
za
ni
ga
or
our
t,
Eas
dle
the Mid
important to set forth its views on what steps might be
ce
pea
e
abl
dur
a
for
s
tie
ili
sib
pos
the
n
the
eng
str
to
en
tak
in this region.
Sincerely,

WPR:eg
opeiu 42
Enc.
The Honorable Lyndon B.
The President
The White House
Washington, D. C.

Johnson

June

My dear Mr.

20,

1967

Ambassador:

I attach herewith the full text of a statement

on

the crisis in the Middle East which has been adopted
unanimously by the International Executive Board of the
UAW, on behalf of the Union's 1,600,000 members in
the United States and Canada.
Because of the critical nature of developments in
the Middle East, our organization has considered it
important to set forth its views on what steps might be
taken to strengthen the possibilities for a durable peace
in this region.
Sincerely,

WPR:eg
epeiu 42

-

'
'
’¢
'

His Excellency
Mr. Avraham Harman
The Ambassador of Israel
22nd Street NW
1621
Washington, D. C.

June

My dear Mr.

20,

1967

Ambassador:

I attach herewith the full text of a statement on
the crisis in the Middle East which has been adopted

unanimously by the International Executive

UAW, on behalf of the Union's
the United States and Canada.

1,600,000

Board of the

members

in

Because of the critical nature of developments in
the Middle East, our organization has considered it
important to set forth its views on what steps might be
taken to strengthen the possibilities for a durable peace
in this region.

Sincerely,

WPR:eg
opeiu 42
Enc.

His Excellency

Mr. Gideon Rafael
The Ambassador of Israel
The United Nations
New York

June 20,

Dear

Prime

1967

Minister:

I attach herewith the full text of a statement on
d
te
op
ad
en
be
s
ha
h
ic
wh
st
Ea
le
dd
Mi
the
in
is
is
cr
the
the
of
d
ar
Bo
e
iv
ut
ec
Ex
l
na
io
at
rn
te
In
the
by
y
sl
ou
im
an
un
UAW, on behalf of the Union's 1,600,000 members in
the United States and Canada.

Because of the critical nature of developments in
the Middle East, our organization has considered it
be
ht
mig
ps
ste
t
wha
on
ws
vie
its
th
for
set
to
t
an
rt
impo

ce
pea
e
abl
dur
a
for
s
tie
ili
sib
pos
the
n
the
eng
taken to str
in this region.

Sincerely,

WPR:eg

opeiu 42
Ene.
The

:

Right Honorable Lester B.

Prime Minister

/Parliament Building

j Ottawa,

Canada

Pearson

June

Dear

20,

1967

Secretary Rusk:
I attach herewith the full text of a statement on

the crisis in the Middle East which has been adopted
unanimously by the International Executive Board of the
UAW, on behalf of the Union's
the United States and Canada.

1,600,000 members

in

Because of the critical nature of developments in
the Middle East, our organization has considered it
important to set forth its views on what steps might be
taken to strengthen the possibilities for a durable peace
in this region.
Sincerely,

WPR:eg
opeiu 42
Enc.

The Honorable Dean Rusk
The Secretary of State
Washington, D. C.

June

Dear

Congressman

20,

1967

Morgan:

I attach herewith the full text of a statement on

the crisis in the Middle East which has been adopted
unanimously by the International Executive Board of the
UAW, on behalf of the Union's
the United States and Canada.

1,600,000 members

in

Because of the critical nature of developments in
the Middle East, our organization has considered it
important to set forth its views on what steps might be
taken to strengthen the possibilities for a durable peace
in this region.

Sincerely,

WPR:ob
opeiu 42
Enc.

The Honorable Thomas E. Morgan
Chairman of the House Committee
on Foreign Relations
House of Representatives
Washington, D. C.

THE

HOUSE

WHITE

WASHINGTON

June
Mr. Walter P. Reuther
President, International Union,
United Automobile, Aerospace and

Agricultural Implement Workers
8000 East Jefferson Avenue
Detroit, Michigan
48214
Dear

Mr.

of

23,

1967

America

Reuther:

President Johnson has been gratified to learn of the
continued assistance and support that AFL-CIO unions are
giving to his program to benefit all consumers.
The
response to his message to the Congress on consumer problems
and to the upgrading of his Committee on Consumer Interests
has been most heartwarming.
unions

The
have

President's

AFL-CIO and virtually all of its
been generous in their publicity

consumer

program.

fied by the recent articles
American Federationist, the
union publications.

We want

you

We

forward

to know

We were

particularly

that

the

President's

assistance.

to your

your

Fi

other

Committee
union

continued cooperation

Mh

the

grati-

in the AFL-CIO News, the
Memo from COPE, as well as

on Consumer Interests stands ready to assist
every way to promote the consumer program.

look

affiliated
concerning

Betty wate
Special Assistant
n “ihe
President
for Consumer Affairs

in

and

JUN 28 1967

THE WHITE HOUSE
WASHINGTON

JUL

.

12 locz

7/5/67
I believe you will find the
ra
ma
Na
Mc
y
ar
et
cr
Se
om
fr
rt
po
re
attached
e
th
s
be
ri
sc
de
It
e.
iv
at
rm
fo
in
highly

progress

of the

Defense

Department's

s
ng
vi
sa
e
th
d
an
m
ra
og
Pr
n
io
Cost Reduct
st
ju
ar
ye
al
sc
fi
e
th
ng
ri
du
ed
achiev
th
wi
d
se
ea
pl
ly
ar
ul
ic
rt
pa
I am
ended.
s
ie
it
un
rt
po
op
e
th
to
n
ow
sh
the alertness
re
su
es
pr
e
th
e
it
sp
de
n
io
ct
du
for cost re
ed
in
rm
te
de
e
ar
We
.
ns
io
at
er
op
of combat
ey
th
ng
hi
yt
er
ev
th
wi
n
me
to provide our
t
bu
n
io
ss
mi
r
ei
th
sh
li
mp
co
ac
need to
,
es
ov
pr
rt
po
re
e
th
d
an
e,
ev
we beli
nco
in
t
no
is
e
iv
ct
je
ob
an
ch
that su
on
is
as
ph
em
d
ue
in
nt
co
th
wi
t
sisten
.
cy
en
ci
fi
ef
in
d
an
e
st
wa
of
the elimination

The initial five-year Cost Reduction Program, formally launched in
July 1962, was a truly pioneering effort in Defense management.
Over and
above the large monetary savings achieved -- more than $14 billion during
the five-year period -- the Program significantly raised the level of
effectiveness of the entire worldwide logistics system.
Tangible incentives for economy and efficiency were provided to the thousands of
managers throughout the Department.
Goals were established in cooperation
with the participants in the program and performance was uniformly and
regularly measured against those goals.
The results were audited separately by an agency independent of the management structure.
Public recognition
was afforded to those individuals who performed in an outstanding manner.
The skill and competence level of the entire management structure was
raised through systematic training programs.
During this period, new procurement techniques were developed and
brought into everyday use to broaden the area of competition for Defense
work and to minimize the use of cost-plus-fixed-fee contracts.
Requirements computation methods were thoroughly reviewed and more realistic
standards established.
New procedures were devised to ensure maximum

utilization

of

excess

inventories

on

a Department-wide

basis.

Special

"value engineering" staffs were organized in all of the Department's
procurement agencies to eliminate "goldplating” (i.e., unneeded frills)|
from

specifications.

savings

Programs

of

the

resulting

designed

Department

from

to

were

Defense

"value

increase

contractors

engineering"

the

established

efficiency

at

were systematically reviewed and those
elesed and the property turned over to

the

offered

were

changes
of

base

the

a

which

level.

share

in

the-

they originated.

day-to-day

Defense

operations

installations

excess to our requirements were
more productive public or private

USE.

Many of the cost reduction actions taken during that period will
But perhaps
continue to generate important savings for years to come.
the most lasting benefit over the long run will be the higher level of
efficiency and the persuasive incentives for economy which have now been
In a.program as
built into the entire logistics management structure.
dynamic and extensive as Defense, the possibilities for further improveAs old problems are solved, new problems
ment can never be exhausted.
The great burden imposed on our logistics system by the military
appear.
operations in Southeast Asia, for example, not only provided a stern test
A
of its capabilities but also opened up new opportunities for savings.
number

some of which are
logistics effort,

we

can have

both

of

the

cost

reduction

described later in
proving once again

combat

readiness

and

actions

reported

in

FY

this memorandum, grew out of
the point you made last year

economy

NO

considerable

in Defense”.

1967,

that
Shas

Now that the policies and procedures for the Cost Reduction Program
have been firmly established throughout the Department, the Program has
In terms of overall coverage, the
been shifted to a permanent basis.
The principal change concerns the manner in
Program remains the same.

which the

are

savings

reported.

Beginning

with

FY 1967,

savings

will be

reported in the year in which the specific action or decision giving rise
Even though the savings from a particular
to the savings was initiated.
action may continue for five or ten years, the reported savings will be
limited to those which will be realized in the year of decision and in
Moreover, no credit has been taken in
the next two succeeding years.
FY 1967, or will be taken in any subsequent year, for any savings accruing

from actions

reported

prior

to July 1,

1966,

thus

understating

the true

savings generated by the initial five-year Cost Reduction Program.
Although the new reporting procedure will inevitably understate the full
dimensions of the savings achieved, I believe it will provide a more
easily understood accounting for the general public.
As you know, I have insisted from the very inception of the Cost
re
ensu
to
r
orde
in
ngs
savi
rted
repo
the
of
t
audi
an
on
ram
Prog
Reduction
that they are bona fide (the audit is now performed by the Defense
ld
shou
ger
mana
no
:
tice
prac
ness
busi
good
ly
simp
is
This
.
er)
oll
ptr
Com
caifi
ver
nt
nde
epe
ind
of
form
some
out
with
ce
man
for
per
own
his
on
report
ake
ert
und
to
ce
Offi
g
tin
oun
Acc
ral
Gene
the
ted
invi
I
why
is
That
tion.
a full audit when the Program was first instituted, but for understandable
nBegi
e.
iat
opr
ppr
ina
be
d
woul
it
ght
thou
ral
Gene
er
reasons the Comptroll
of
part
as
,
will
ce
Offi
g
tin
oun
Acc
ral
Gene
the
ver,
howe
ning in FY 1968,

our
ew
revi
es,
viti
acti
t
audi
rnal
inte
of
ew
revi
ide
t-w
its governmen
r
thei
re
ensu
to
ngs
savi
ing
sur
mea
for
eria
crit
our
and
m
gra
audit pro
ce
Offi
g
tin
oun
Acc
ral
Gene
full
a
er
pref
l
stil
d
woul
Although I
adequacy.
k
chec
rnal
exte
ul
usef
a
as
e
serv
will
nt
eme
ang
arr
audit, the more limited
ty
idi
val
the
on
e,
henc
and,
s
ure
ced
pro
ting
audi
on the soundness of our
of the savings reported.

y
Onl
ng
yi
Bu
:
ts
en
em
el
r
jo
ma
ee
thr
has
m
ra
og
Pr
n
The Cost Reductio
g
in
at
er
Op
ng
ci
du
Re
and
ce,
Pri
nd
Sou
st
we
Lo
the
at
What We Need, Buying
se
the
in
en
tak
s
on
ti
ac
on
ort
rep
ss
re
og
pr
a
is
g
in
ow
The foll
Costs.

three
oe

areas

BUYING

during
ONLY

FY 1967.

WHAT

WE

NEED

ces
for
ge
lar
n
whe
es
com
s
es
en
iv
ct
fe
ef
s
ic
st
gi
lo
of
t
tes
The acid
sus
in
d
te
or
pp
su
and
ts
po
es
bl
ou
tr
t
an
st
di
to
must be deployed quickly
t
as
he
ut
So
in
ct
li
nf
co
the
by
ed
id
ov
pr
was
t
tes
a
Such
tained combat.
l
ne
on
rs
pe
ry
ta
li
mi
0
00
0,
53
n
tha
e
mor
of
l
Asia where we now have a tota
.
ne
li
pe
pi
ly
pp
su
e
il
-m
00
,0
10
a
of
end
the
at
)
oat
afl
(including those
r
ie
rl
ea
ed
at
st
ff,
Sta
of
efs
Chi
nt
Joi
General Wheeler, Chairman of the
this year:

"Our

achievements

logistic

have verged

on the

incredible.

Anyone

es
bas
the
s
see
now
and
ago,
ths
mon
18
of
m
tna
Vie
the
s
ail
rec
who
ld
wou
I
.
sed
res
imp
sly
dou
men
tre
be
t
mus
,
ots
dep
and
lds
fie
and
repeat what I said recently in Saigon -- no fighting force in
military history has been supported more effectively than our

men

in Vietnam."

iod
per
a
ing
dur
ed
iev
ach
was
ch
whi
,
ess
din
rea
bat
com
of
ree
deg
The high
y,
usl
oro
vig
d
sue
pur
ng
bei
e
wer
y
enc
ici
eff
ing
rat
ope
and
ion
uct
when cost red
we
7,
196
FY
in
,
ore
ref
The
.
ble
ati
omp
inc
not
are
ls
goa
proves that these

t
wha
y
onl
to
ses
cha
pur
our
it
lim
to
s
ort
eff
t
men
age
have continued our man
we need by:

Applying the most
consumption SQ as

.

our

.

Screening

.

Accelerating

can be used

excess

in place
all

so

stocks

logistics

stocks.

operations

so

of

that

as

possible

a faster

resupply

them

investments

in "pipeline"

:

Refining

Requirements

Calculations

Thousands of "requirement"
parts and "consumables" have

spare

lower

into

much

t
pas
the
ng
ri
du
s
on
ti
ac
n
io
ct
du
re
t
cos
m
fro
7
196
FY
realized in
ar
ye
ere
th
the
for
n;
io
ll
mi
3
$61
at
d
te
ma
ti
es
this area are
l
ta
to
to
ed
ct
pe
ex
are
s
on
si
ci
de
7
196
FY
m
fro
s
ng
vi
sa
FY 1967-69,

$843 million.
A.

that as

of new purchases.

capability can be translated

Savings
year in
period,

of
prediction
avoiding shortages.

advanced techniques to the
to minimize overages while

reviews of major items
been conducted to help

of equipment,
determine our

ve
pro
er
lat
t
gh
mi
h
ic
wh
el
ri
te
ma
of
t
en
em
ur
oc
pr
real needs and avoid
e
mad
g
in
be
are
es
rat
t
ou
ar
we
of
s
on
ti
ic
More accurate pred
surplus.
eir
qu
re
ne
li
pe
Pi
t.
en
pm
ui
eq
ng
si
es
oc
pr
a
dat
through the use of automatic
ms.
ite
t
cos
h
hig
r
ve
li
de
to
t
if
rl
ai
of
use
ments are being reduced by the
of
use
ad
re
sp
de
wi
the
h
ug
ro
th
ed
ev
hi
ac
g
in
be
Better demand forecasts are
rt
fo
ef
nt
me
ge
na
ma
g
in
at
tr
en
nc
co
by
and
s
em
st
sy
high-speed commnications
to
d
he
is
bl
ta
es
n
bee
e
hav
ds
ar
bo
ew
vi
re
l
ia
ec
Sp
on high-value items.
g
in
er
ne
gi
en
s,
al
nu
ma
s,
rt
po
re
of
s
ton
of
sereen the need for the thousands
e
at
er
op
p,
lo
ve
de
to
r
yea
h
eac
ed
ir
qu
re
a
dat
l
drawings and other technica
and maintain our equipment.
For

example:

.

The Air Force, by moving its C-141 landing
to the same base where the aircraft itself

gear repair activity
is maintained, was

FY

period

three-year

1967-69.

"automatic"

replenishments,

"as

instead

basis

for the
in
on

its investment
their delivery

to make

of continuing

large

in FY 1967.

$1,041,469

saving

transportation

and

and $2,373,800

was able to reduce
by contracting for

The Defense
31 selected

required"

parts

spare

in FY 1967

$247,500

Supply Agency
medical items

an

g
in
er
ne
gi
en
an
for
t
en
em
ir
qu
re
the
el
nc
ca
to
le
The Air Force was ab
r
te
af
t,
or
sp
an
tr
5A
Cthe
of
ir
pa
re
report, related to the field
om
fr
ed
in
ta
ob
be
d
ul
co
n
io
at
rm
fo
in
ed
ed
study showed that the ne
e.
on
al
67
19
FY
in
d
ve
sa
was
n
io
ll
mi
.5
$1
Over
existing sources.

.

Actions
are

saving

costs,

packing
.

pipeline

cut

to

able

for

requirements

like

expected

FY 1967-69.

Use

B.

saved

these

save

to

of

Excess

$301

a total

million
$421

of

in FY 1967,

The
for
Air

saved

The Air
sets to

$2,296,
$673,524

.

three-year

decisions

period

in FY 1967.

from spent
for use as

submarine
submarine

batteries,
ballast.

d
se
ha
rc
pu
ic
br
fa
ck
du
ss
ce
ex
d
se
es
oc
pr
re
cy
en
Ag
ly
pp
Su
e
ns
Defe
e
th
r
fo
gs
ba
ht
ig
fl
ke
ma
to
it
lining Quonset huts and used
e
th
r
fo
s
ng
vi
sa
d
an
67
19
FY
in
d
ve
sa
s
wa
$118,526
Force.

three-year period

.

FY 1967

em
it
an
e
us
to
d
un
fo
is
y
wa
me
so
me
every ti
t
en
rr
cu
a
y
sf
ti
sa
to
es
li
pp
su
d
an
t
equipmen
ch
su
of
n
io
ll
bi
.8
$1
y
el
at
im
ox
pr
Ap
t.
en
em
procur
w
Ne
.
67
19
FY
in
e
ns
fe
De
of
nt
me
rt
pa
De
e
by th
g:
in
ow
ll
fo
e
th
ed
ud
cl
in
,
67
19
FY
in
developed

The Navy reclaimed lead elements
converting them into lead ingots

$91,088 was

the

the

Inventories

The taxpayer gains
from our stocks of surplus
requirement in lieu of new
excess stocks were so used
ways of using such stocks,

.

in

million

and

FY 1967-69 will total

Force modified
meet a Vietnam

four excess
operational

$373,916.

Marine Corps ground radar
requirement at a cost of

d
an
67
19
FY
in
62
,7
36
$3
of
s
ng
vi
sa
t
ne
a
realizing
9.
-6
67
19
FY
od
ri
pe
ar
ye
ere
th
e
th
for

opl
ex
gh
hi
mm
90
r
fo
t
en
em
ir
qu
re
nt
ge
ur
The Marine Corps met
n
ow
s
it
g
in
fy
di
mo
by

ia
As
t
as
he
ut
So
in
sive tracer cartridges
s
wa
on
ti
ni
mu
am
ed
ed
ne
e
Th
.
ds
un
ro
my
Ar
ss
fuses to fit exce
w
ne
by
le
ib
ss
po
en
be
ve
ha
d
ul
wo
an
th
y
kl
ic
qu
obtained more
an

procurement
The

savings

and $1,448,000 was

saved.

achieved by these

actions

initiated

in FY 1967 will

9.
-6
67
19
FY
s
ar
ye
e
re
th
e
th
r
fo
n
io
ll
mi
$2
d
an
67
19
FY
in
n
io
ll
mi
total $33

C.

Goldplating

Eliminating

per
or
ign
des
for
ing
pay
of
ury
lux
the
ord
aff
not
can
ion
Nat
The
h
Suc
s.
nes
ive
ect
eff
ry
ita
mil
to
g
hin
not
e
but
tri
con
t
tha
formance features
her
eit
ns
tio
ica
cif
spe
ign
des
o
int
d
uce
rod
int
en
oft
unneeded features are
cal
cti
pra
e
uat
deq
ina
is
re
the
e
aus
bec
or
ous
eal
r-z
ove
is
because the designer

"
ing
lat
ldp
"so
h
suc
t
ven
pre
To
nt.
gme
jud
nd
sou
a
e
bas
to
experience on which
lue
"va
our
ted
men
aug
y
atl
gre
rs
yea
ent
rec
in
e
hav
we
of specifications,
se
rea
inc
to
m
gra
pro
ion
cat
edu
us
oro
vig
a
ted
duc
con
engineering" staffs and

d
uce
rod
int
n
bee
e
hav
s
ive
ent
inc
ial
anc
fin
ong
str
on,
In additi
their skills.
exto
s
or
ct
ra
nt
co
e
ns
fe
de
e
ag
ur
co
en
to
ts
en
em
ng
ra
into our contractual ar

ploit

every

Departmental

engineering"

"value

regulations
the

Expanding

share

50

have

of his

percent.

Extending the

accruing
changes

from

--

up

for

engineering"

subsequent

to

three

Shortening the time a
share of the savings.

contractor

a

--

savings
a

which

during

period

contractual

these

improved

opportunities

"value

which presents

opportunity

applications

to

of his

by:

incentives
earn

in some

contractor

Recent

itself.

can

"value

a greater

cases to over
savings

in

share

engineering”

years.

contractor

must

wait

for

payment

of

his

ar
ye
e
th
ng
ri
du
de
ma
s
ge
an
ch
g’
in
er
ne
gi
We estimate that "value en
e
re
th
e
th
r
fo
n
io
ll
mi
77
$3
d
an
67
19
FY
r
fo
n
io
ll
mi
76
$2
of
s
ng
vi
sa
d
yielde
es
pl
am
ex
e
th
of
me
so
e
ar
ar
ye
is
th
st
re
te
in
l
ia
ec
sp
Of
9.
-6
67
19
FY
s
ar
ye
drawn

from

our

in

operations

Instead

for use
burning

area.

of buying

Asia:

Southeast

(i.e.,

dual-fuel

coal

or oil)

hot water

heaters

al
co
e
th
ed
at
in
im
el
cy
en
Ag
ly
pp
Su
in Vietnam, the Defense
e
th
in
e
bl
la
ai
av
y
il
ad
re
t
no
is
el
fu
components since that

Savings

in FY 1967 will be $214,338.

s
ar
ng
ha
ft
ra
rc
ai
d
te
ca
ri
ab
ef
pr
By changing specifications for
e
th
,
on
ti
uc
tr
ns
co
of
ro
le
ab
-g
le
ub
do
to
Vietnam from shed-type

a standard building which not only
98
,2
11
$3
of
s
ng
vi
sa
ed
uc
od
pr
so
al

was able to buy competitively
could be delivered faster but
in FY 1967.

Fach MK-81

and MK-82

bomb

for
Navy

sent

to Vietnam was

supplied

being

with

a

at
th
d
un
fo
vy
Na
e
Th
.
ft
ra
rc
ai
e
hoisting lug to help lift it to th
ed
ad
lo
g
in
be
re
we
s
mb
bo
e
th
e
us
ca
be
these lugs were being discarded
d
ce
du
re
g
lu
e
th
of
n
io
at
in
im
El
.
either by hand or hydraulic lift

costs by 88 cents per bomb.
and $1,923,048 for the three

Studies
ways at

Savings will be $620,048
years FY 1967-69.

g
n
i
k
r
a
p
r
fo
d
e
i
f
i
c
e
p
s
s
s
e
showed that thickn
,
d
e
c
u
d
e
r
y
l
e
f
a
s
be
d
l
u
o
c
Phan Rang airfield

in FY 1967

aprons
saving

and taxi$928,000.

It.

BUYING

AT

THE

LOWEST

SOUND

PRICE

Military prime contract awards for the first ten months of FY 1967
increased 20.4 percent over the same period last year.
Despite the greater
volume of procurement and the special pressures resulting from our combat
operations in Southeast Asia, we were able to hold the gains made in recent

years

in

increasing

cost-plus-fixed-fee

the

volume

contracts.

of

competitive

The

new

actions

awards

taken

and

in

reducing

FY

1967

the

will

$54 million in FY 1967 and $95 million for the three years FY 1967-69.
A.

Shifting Away

from Cost-Plus-Fixed-Fee

(CPFF)

use

save

of

Contracts

One of the major accomplishments of the first phase of the Cost
Reduction Program was the reversal of the long existing trend towards
This type of contract, which
greater use of cost-plus-fixed-fee contracts.
is usually justified only when there are great uncertainties involved,
Between
offers neither reward for good performance nor penalty for bad.
FY 1961 and FY 1965, the proportion of CPFF contracts was driven down from
38 percent to less than 10 percent, and despite the extraordinary demands
of the Vietnam conflict, we have been able. to hold close to-that level

through

the

first

ten months

of fiscal

year

1967.

COST PLUS FIXED FEE CONTRACTS
AS A PERCENT OF TOTAL CONTRACT AWARDS
40%

30%

20%;

10%

PY

2956

1957

1958

1959

1960

1961

1962

1963

1964

1965

1966

1967

Gs:

SRITC:

to

Competition

As I noted earlier in this report, we have also developed and
introduced into our purchasing operations a number of new techniques
For
designed to broaden and intensify competition for Defense work.
example, when specifications are too broad to permit formal advertising,
Proproducers are being asked to submit unpriced technical proposals.
ducers whose proposals qualify then submit sealed bids with the award
Or in cases where a complex end-item fails to
going to the low bidder.
its high value parts and components are being
attract competition,

"broken

out"

for

separate

procurement.

These

new techniques

have

helped

to sustain the high level of competitive procurement achieved in recent
years, notwithstanding the urgent demands of the Vietnam conflict.

50%

CONTRACTS AWARDED ON BASIS OF COMPETITION ASA
PERCENT OF TOTAL DOLLAR VALUE OF CONTRACT AWARDS

48%

4/30/67
44.6
\

46%
44%

42%
40%

38%
36%

34%

32%

FY

E96}

1962

1963

1964

1965

1966

1967

Specific actions taken during FY 1967 to
non-competitive to competitive types of contracts

FY 1967.

Some

examples

are

shown

below:

Non-Competitive
Unit Price
Test

and

Panels

Calibration

Traveling

Engine

Wave

Speed

Duct Assembly,
Helicopter

Direct

Savings

$4,565.25

$2,887.00

37

$57,044

160.29
1,135.00

139.25
683.00

3.3
38

36,404
107,576

363.90

196.25

16

84,899

Aircraft

SH/UH-3

of

from
in

Percent
Reduction

1 259510

Purchase

procurement
$16 million

Competitive
Unit Price

Warning

Device
Fuel Indicator,

C.

Tube

shift
saved

Parts

and

702.00

6

BO

Components

Parts and components used in major weapon systems can often
purchased directly from the vendor instead of indirectly through the
contractor.
Although this practice cannot always, in itself, induce

petition,
than that

10

be
prime
com-

it can produce savings when the price paid the vendor is lower
formerly paid the prime contractor.
During the past year,

"direct purchase" actions
for the three-year period

cut costs $10 million
FY 1967-69.
Here are

in FY 1967 and $19 million
some examples:

Prime

Contractor's
Unit Price
Drive

Oil

Assembly,

Aircraft
Filter,

Tactical

Vehicles
Recording Paper

Computers

Diode,

P-3A

for

5KW Generator

D.

savings

Multi-Year

Large

through

Vendor's
Unit Price

Percent
Reduction

pavings

$3,360.00

$1,843 .8h

nS

$92,982

20.50

8.10

20

17,793

13,50

8.39

38

82,782

6.25

3.75

LO

11,933

Procurement

production

"learning

runs

curve"

over

longer

economies,

start-up costs and the amortization
larger number of items.

of

periods

the

tooling

of

time

elimination

and

facility

tend

to

yield

of repetitive
costs

over

a

by

ciple

for an item whenever

was saved by taking
ment.
For example:

this

is

advantage

Protective Mask M-17A1
Signal Generator AN/UR

Tank

Landing

(LST-1180

found practicable.
of

Receiving

Multicoupler,

(DE 1078 Class)
Bombs, GP, MK84-1

Unit

Age
eT tf LaO0

OPERATING

REDUCING

for

$28 million

FY 1967,

procure-

multi-year

FY 1967

Net

Multi-Year

8785000
205, 356

17.79 >> 66°
2,450.00

aS

7

Savings

15, 346,500.00

14,653,588.00

11,779 50k

11,066,000.00
405.91

10,887 ,000.00
330.60

3,580,000
644,000

722.00

694.00

170,508

AN/SRA-43

TII.

During

Price

$

Vessels

Escort

prices

lower

Year

Class)

Destroyer

the

Single

Vessels

Ship

to take advantage of this printwo or more years' requirements

attempts
contract

The Defense Department
consolidating into one

COSTS

The improvements made during the past year in managing the base
stran
ems,
syst
ns
tio
ica
mun
com
ing
rat
ope
t,
pmen
equi
ng
ini
nta
mai
e,
ctur
stru
porting men and materiel, and carrying out the other day-to-day operations

of the military establishment resulted
FY 1967 and $549 million for the three
A.

Terminating

In

39 Defense
surplus to

Unnecessary

in savings of $237 million
years FY 1967-69.

for

Operations

FY 1967, actions were initiated to consolidate, reduce
installations or activities involving property that had
These new
all foreseeable peacetime and wartime needs.

or close
become
actions

e
duc
pro
l
wil
ted
ple
com
n
whe
and
7
196
FY
in
n
lio
mil
$8
of
s
ing
produced sav
se
"ba
the
s
ize
mar
sum
ow
bel
le
tab
The
n.
lio
mil
$49
of
annual savings
closure" program since 1961 and the new actions of FY 1967:
Total

Through

320 June

»

.

Number

Acres

of Actions

Released

‘.

Industrial Plants
with Commercial
Potential Made
Available for Sale
Job Positions Elim-

.

Recurring



inated

Savings

Annual

1966

878

Total

Through

30 June

1967

Gi

1,810,000

1,818,000

66

66

202,213

206 ,631

$1,450 Mil.
LO

$1,499 Mil.

Tnerease
39

8,000

-

4358

$49 Mil.

From the beginning,
we have recognized that this re-channeling of
resources, though beneficial to the Nation as a whole, could have serious
adverse effects on local communities and our own employees.
Two programs,

each of several
effects.

years

standing,

have

been

developed

to

help

soften

these

One program is designed to help local communities find productive
uses for the land and facilities made available as a result of base
closures.
Property released in recent years is now being used for airports, schools and universities, community recreation and development, and
commercial operations.
The table below summarizes the disposition of

military property

released

since

1961.

Number

June

30,

Civil Airports
Schools

and

Universities

Total Acres

1966

May

Through:

31,

Agencies

Involved

1967

Increase

34

6

LSF

2e9

‘Te

90
56
306
6

104
66
Lok
9

14
10
188
3

862,788

92h ,636

61,848

Individuals and Small Companies
Federally Owned Reserve Lands
Federal

Locations

28

Parks, Recreation, Community
Development
Private Industry for Production
Other

of

20

99

19

During the past year, the Defense Department's Office of Economic
Adjustment, whose services become available to a community just as soon

as a "base

closure"

decision

is announced,

worked

closely with

31 com-

munities in 25 states to plan new uses for properties which we are reOne example of what can be achieved by this type of planning
linquishing.
concerns the Springfield Armory in Massachusetts, which is scheduled to

close

in April

1968.

The

community's

plan

calls

for:

(a)

selling

the

Armory's manufacturing area to the city for subsequent lease to industry;
(b) conveying another area to the State to expand the Springfield Technical
Institute; and (c) conveying still another area to the city for a museum
One major firm estimates that it will
site and high school athletic field.
add 1,000 new jobs at facilities in the Armory's manufacturing area.

Our Employment Opportunity Program continues to achieve excellent
results in finding new jobs for the Department's employees displaced by
No career civilian employee has been separated without an
base closings.
The following table summarizes the
offer of another job opportunity.
Program's experience with those employees affected by the base closure

program between

January 1964 and April 1967.

Number

Accepted offer of another
Placed in another Federal
Placed

Declined

in

a non-Federal

job

offer,

Defense
job

job

transfer

Separated

employees

without

opportunity"

DB

Reducing

Operating

affected

offer

of

78,188
4422

68.8
3.9

9,574
16,431
2, 532

8.4
14.4
252

2,603

or

placement assistance
Retired or resigned
Other (death, military service,
Total

job

Percent

etc.)

"job

2.3

L590

100.0

None

None

Hixpenses

The day-to-day operations of the Defense Department offer a
broad range of opportunities for cutting costs through such actions as
consolidating management functions, finding more efficient organizational
arrangements, Simplifying work methods, and increasing productivity.
A

large

number

of

such

actions

in FY 1967,

amounts of money, will save $84 million
three years FY 1967-69.
For example:
-

The Air Force established eight
of 20 separate base pay offices

Savings

three
°

GO:

were

years

$148, 319 in FY 1967

each

in FY 1967

relatively

and $197 million

regional pay offices
in the Strategic Air

and will be $714,942

FY 1967-69.

The Navy was able to speed
equipment, staggering work

involving

for the

the loading of bombs by modifying
shifts and conducting time-motion

and will be

Increasing

Operations

Communications

Efficiency

systems

in the

in place
Command.

studies.
Savings were $339,000 in FY 1967
$1,415,000 in the three years FY 1967-69.
the

small

of

costs,

Other

by

Support

actions

in

FY

1967,

were

reduced

by $8 million in that year and by $27 million for the three-year period
FY 1967-69 in the face of record communications traffic loads.
Savings

in this area are obtained through such actions as negotiating tariff rate
reductions, eliminating unneeded circuits and equipment and consolidating
leased long-line communications.

Transportation and traffic management improvements in FY 1967
netted savings of $44 million in FY 1967 and $138 million for the threeyear period 1967-69.

ba

,

The

Army's

Anniston

Depot

in Alabama,

by matching

ammunition

requisitions against incoming shipments at the freightyard and
rescheduling entire carloads to the using organizations, was
able to eliminate, in some cases, the normal process of un-

loading,

$61,186



storing,

in FY 1967.

and

then

reloading

boxcars,

thereby

saving

The Air Force prepared 94 MACE missiles for ocean shipment by
applying a protective coating instead of disassembling the
missiles and sealing them in re-usable cans as had been the

5

practice.

Savings

The Navy
carriers

negotiated
instead of

practice.

in

$169,900

were

$3.9 million

maintenance

in FY 1967.

management

in that year and will save
Typical actions included:

:

Developing
discarded.

>

Eliminating
guidelines.

unnecessarily

.

Buying bulk
maintenance

instead of drum
operations.

.

Designing

protective

Additional

savings

repair

in FY 1967.

ocean cargo rates directly with the individual
with the carrier associations as had been the

Savings

Improvements

$27 million
FY 1967-69.

were

initiated

$59 million

procedures

to

reclaim

stringent

devices

for

from FY 1967

components

of

fluids

damage-prone

actions

FY

1967

in the three

requirements

quantities

in

years

saved

previously
from

maintenance

used

in

parts.

totaled

nearly

$35 million

for FY 1967 and will total $73 million for the three years FY 1967-69.

They

were

realized

by:

°

Improving the management of non-combat vehicles, military family
housing, other real property and the Military Assistance Program.

°

Developing

-

Replacing

lower
contract

cost

packing,

technicians

preserving

and

with

Service

Civil

packaging

techniques.

personnel.

CONCLUS ION
through

Although the very large

the

initial

five-year

savings

Defense

of more than $14 billion

Department

13

Cost

Reduction

achieved

Program

are not likely to be dupBicated during the succeeding five
there are still significant opportunities for improvement,

years, I believe
particularly

in those activities which have been expanded so rapidly for the support
of our military operations in Southeast Asia. Whenever the element of
time becomes the overriding factor in our actions, economy and efficiency
Consequently, I would not be at
tend to be sacrificed in favor of speed.
all surprised if some unnecessary spending and inefficiency have crept
into the Defense program during these last two years of rapid build-up.
Our task in the year ahead is, therefore, clear: it is to ferret out all
these new sources of waste and inefficiency and tighten up our operations
Further savings of millions of dollars can be
all along the line.
achieved by actions which are completely consistent with a high degree
I can assure you that this effort will receive my
of combat readiness.
personal attention during the coming months.

|

14

7

a

ee

TO END DISORDER

President Lyndon B. Johnson’s
Television Address to the Nation
on Civil Disorders

The White House, July 27, 1967 _

TO END

DISORDER

President Lyndon B. Johnson’s
Television Address to the Nation
on Civil Disorders

The White House, July 27, 1967

TO

HEAL

THE

WOUNDS

know there are millions of men and women
tonight who are eager to heal the wounds that we have
suffered;

who

want

to get on

with

the job

of teaching

and working and building America. . .
The only genuine, long-range solution for what
has happened lies in an attack mounted at every level
upon the conditions that breed despair

and

violence.

are:

disease,

All of us know

ignorance,

joblessness.

not because

what

discrimination,

We

should

those conditions
slums,

attack

we are frightened

these

poverty,

conditions—

by conflict,

but because we are fired by conscience.
We should attack them because there is simply no

other way to achieve a decent and orderly
society

in America.

My Fellow Americans:
We

have endured

through:

a week such as no Nation

should live

a time of violence and tragedy.

For a few minutes tonight, I want to talk about that
tragedy—and I want to talk about the deeper questions
it raises for us all.

A SPECIAL
I am

tonight

ADVISORY COMMISSION
CIVIL DISORDERS

appointing

a special

Advisory

ON
Commis-

sion on Civil Disorders.

Governor Otto Kerner, of Illinois, has agreed to serve
as Chairman. Mayor John Lindsay, of New York, will
serve as Vice Chairman.
will include Fred W.

Its other members

Harris,

Senator

from Oklahoma; Edward W. Brooke, United States Senator

from Massachusetts; James C. Corman,
tive from California, 22nd District, Los
M. McCulloch, the U.S. Representative
Ohio, the 4th District; I. W. Abel, the

U.S. RepresentaAngeles; William
from the State of
President of the

United Steel Workers; Charles B. Thornton, the President,
of the Board

Director and Chairman

of Litton Industries,

Inc.; Roy Wilkins, the Executive Director of the NAACP;
Katherine Graham Peden, the Commissioner of Commerce
of the State of Kentucky; Herbert Jenkins, the Chief of

Police, Atlanta, Georgia.

The. Commission
cent

disorders

in

will investigate the origins of the reour

cities.

It will

make

recommenda-

tions—to me, to the Congress, to the State Governors,

and

to the Mayors—for measures
disasters in the future.
In their work,

to prevent or contain

the Commission

members

such

will have

ac-

cess of the facts that are gathered by Director J. Edgar
Hoover and the Federal Bureau of Investigation. The FBI
will continue to exercise its full authority to investigate
these riots, in accordance with my standing instructions,
and it will continue to search for evidence of conspiracy.
But even before the Commission begins its work; and
even before all the evidence is in, there are some things that
we can tell about the outbreaks of this summer.
CRIMINALS

MUST

BE

PUNISHED

First, let there be no mistake about it: the looting, arson,
plunder and pillage which have occurred are not part of
a civil rights protest. There is no American right to loot
stores, or to burn buildings, or to fire rifles from the rooftops. That is crime—and crime must be dealt with forcefully, swiftly, and certainly under law.

Innocent people, Negro and white, have been killed.
Damage to property—owned by Negroes and whites—is
calamitous.

Worst

of

all,

fear

and

bitterness

have

been

loosed which will take long months to erase.

The criminals who committed these acts of violence
against the people deserve to be punished—and they must
be punished. Explanations may be offered, but nothing
can excuse what they have done.
There will be attempts to interpret the events of the
past

few

days.

But

when

violence

strikes,

then

those

in

That

they must

command:

through

very differ-

Not even the sternest police action, nor the most effective Federal Troops, can create lasting peace in our cities.

at their

The only genuine, long-range solution for what has happened lies in an attack mounted at every level upon the
conditions that breed despair and violence. All of us know

seek to do with every means
local

police,

state

officials,

and—in

extraordinary circumstances where local authorities have
stated that they cannot maintain order with their own resources—through Federal power.
VIOLENCE

MUST

BE STOPPED

I have directed the Secretary of Defense to issue new
training standards for riot control procedures immediately
to National Guard units across the country. Through the
Continental Army Command, this expanded training will
begin immediately. The National Guard must have the
ability to respond effectively, quickly, and appropriately,
in conditions of disorder and violence.

Those charged with the responsibility of law enforcement must be respected by all of our people. The violence
must be stopped: quickly, finally, and permanently.
LAW

MUST BE RESPECTED AND
LEGISLATION PRESSED

It would compound the tragedy, however, if we should
settle for order imposed by the muzzle of a gun.
In America, we seek more than the uneasy calm of
martial law. We seek peace based on one man’s respect
for another man—and upon mutual respect for law. We
seek a public order that is built on steady progress in
meeting the needs of all of our people. .

=>

public responsibility have an immediate and
ent job: not to analyze, but to end disorder.

those

what

conditions

are:

ignorance,

discrimination,

We should attack
slums, poverty, disease, joblessness.
these conditions—not because we are frightened by conflict,
but because we are fired by conscience. We should attack
them because there is simply no other way to achieve a
decent and orderly society in America.

A

TIME

TO

ADVANCE,

NOT

RETREAT

In the past three and a half years, we have directed
the gieatest Governmental effort in all of our American
history at these ancient enemies. The roll call of those
laws reveals the depth of our concern: The Model Cities
Act. The Voters Rights Act. The Civil Rights Act. The
Rent Supplement Act. Medicare and Medicaid. Twentyfour education bills. Head Start. The Job Corps. The
Neighborhood Youth Corps. The Teacher Corps. Manpower Development and Training, and many, many more.

We will continue to press for laws which would protect our citizens from violence: the Safe Streets and Crime
Cotrol Act now under consideration in the Congress, and
the Gun Control Act.
Our work has just begun. Yet there are those who
feel that even this beginning is too much. There are those

who would have us turn back even now, at the beginning
of this journey.
Last week in Congress, a small but important plan for
action in the cities was voted down in the House of Representatives. The members of that body rejected my request for $20 million to fight a pestilence of rats—rats
which prowl in dark alleys and tenements, and attack
thousands of city children. The passage of this legislation
would have meant much to the children of the slums. A
strong government that has spent millions to protect baby
calves from worms could surely afford to show as much
concern for baby boys and girls.
There are some tonight who feel that we cannot afford
a Model Cities program. They reduced my request for
funds this year by two-thirds.
There are some who feel that we cannot afford additional teachers for the children of poverty in urban areas.
Or new efforts to house those who are most in need of
housing. Or aid education.
Theirs is a strange system of bookkeeping.
A

TIME

FOR

ACTION,

NOT

BITTERNESS

I believe we should be counting the assets that these
measures can bring to America: cities richer in opportunity; cities more full of promise; cities of order, progress,
and happiness. Instead, some are counting the seeds of
bitterness.
This is not a time for angry reaction. It is a time for
action: starting with legislative action to improve the life
in our cities. The strength and promise of the law are
the surest remedies for tragedy in the streets.

But laws are only one answer. Another answer lies in
the way our people will respond to those disturbances.
There is a danger that the worst toll of this tragedy

will be counted in the hearts of Americans:
insecurity, in fear, in heated words which

the conflict, but prolong it.
So let us acknowledge the tragedy;
aggerate it.

A TIME FOR DEDICATION

AND

Let us look about tonight.
and we will see these things:

Let

Most Americans,

Negro

in hatred, in
will not end

but let us not ex-

UNDERSTANDING
us look

and White,

at ourselves,

are leading decent,

responsible, productive lives.
Most Americans, Negro and white, seek safety in their
neighborhoods and harmony with their neighbors.
Nothing can destroy good will more swiftly than a period of needless strife and suspicion between the races.
Let us condemn the violent few. But let us remember
that it is law-abiding Negro families who have suffered
most at the hands of the rioters. It is responsible Negro
citizens who hope most fervently—and need most urgently
—to share in America’s growth and prosperity.
This is not the time to turn away from that goal.
To reach it will require more than laws; more than dollars. It will take renewed dedication and understanding
in the heart of every citizen.
I know there are millions of men and women tonight
who are eager to heal the wounds that we have suffered;
who want to get on with the job of teaching and working
and building America.

ALL

TO JOIN IN A DAY

OF PRAYER

In that spirit, at the conclusion of this address, I will
sign a proclamation calling for a day of prayer in our Nation throughout all of our States. On this Sunday, July 30,
I urge the citizens of every town, every city, and every
home in this Land to go into their churches to pray for
order and reconciliation among men.
I appeal to every Governor, every Mayor, every preacher, every teacher and parent to join and give leadership in
this national observance.
This spirit of dedication cannot be limited to our public
leaders. It must extend to every citizen in this land. And
the man who speaks to break the peace must feel the
powerful disapproval of all of his neighbors.
ALL

TO

SEARCH

THE

ALL

HEART

Tonight, I call upon every American to search his own
heart.
To those who are tempted by violence, I would say this:
Think again. Who is really the loser when violence comes?
Whose neighborhood is made a shambles? Whose life is
threatened most?
If you choose to tear down what other hands have built,
—You will not succeed;
—yYou will suffer most from your own crimes;
—yYou will learn that there are no victors in the aftermath of violence.
The apostles of violence, with their ugly drumbeat of
hatred, must know that they are heading for disaster. And
every man who really wants progress or justice or equality
must stand against them and their miserable virus of hate.

For

TO SHARE

other

Americans,

A DUTY

especially

AND

those

A FAITH

in positions

of

public trust, I have this message:

Yours is the duty to bring about a peaceful change in
America. If your response to these tragic events is only
“business as usual”—you invite not only disaster, but dishonor.
My fellow citizens, let us go about our work. Let us
clear the streets of rubble, and quench the fires that hatred
set. Let us feed and care for those who have suffered at
the rioter’s hands.

But let there be no bonus,

no reward,

no salutes for those who have inflicted that suffering.
Let us resolve that this violence is going to stop. We can
stop it. We must stop it. We will stop it.

And

let us build

between man

something

much

more

lasting:

and man, faith between race and race.

faith
Faith

in each other—and faith in the promise of America.
Let us pray for the day when “mercy and truth are met
together; righteousness and peace have kissed each other.”
Let us pray—and let us work for the better jobs and better
housing and better education that so many millions of our
fellow Americans need tonight.
Let us then act: in the Congress, in the city halls, and in
every community, so that this great land of ours may truly
be “one Nation under God—-with liberty and justice for all.”
Goodnight.

NATIONAL DAY OF PRAYER
RECONCILIATION
BY

FOR

THE PRESIDENT OF THE UNITED STATES
OF AMERICA—A PROCLAMATION

From its earliest day, our nation
equality—and to order.

has

been

dedicated

to justice,

to

We are a people committed to the rule of law, believing that it
holds the greatest hope for human progress and well-being.
We
must never abandon that commitment.

Today our people reaffirm their faith in law; their faith in progress;
their faith in human brotherhood.
It is right to pray that strife will not bring down what we have built,

nor threaten all the things we hope to build.

NOW THEREFORE I, LYNDON B. JOHNSON, President of the
United States of America, do hereby set aside Sunday, July 30, 1967
as a National Day of Prayer for Peace and Reconciliation.
I call on every Governor, every Mayor, every family in the land to
join in this observance. I call on all our citizens to go into their
churches on this Sunday, and to pray for peace in the land we love.

We deplore

the few who

rely upon

words

and works

of terror.

We mourn the many who have suffered from violence in the cities.
We dedicate ourselves once more to the rule of law, in whose absence
anarchy is loosed and tragedy is born.
We pray to almighty God, the Author of our liberty, for hearts free
from hate, so that our Nation can be free from bitterness.
We pray for strength to build together so that disorder may cease,
progress steadily continue, and justice prosper.

IN WITNESS WHEREOF, 7 have hereunto set my hand this twentyseventh day of July, in the year of our Lord nineteen hundred and
sixty-seven, and of the Independence of the United States of America
the one hundred and ninety-second.

/s/

THE WHITE HOUSE
July 27, 1967

LYNDON

B. JOHNSON

Ea

The
Wi

White
In

December 20,

WIRE

STRAIGHT

House

grow

Dd.

1 B.

1967

Johnson

C.

We in the UAW are deeply concerned that budget restrictions

will reduce fund

thereby reduce its

to the Federal

kh

availa

asion of the vital

n
e
e
w
t
e
b
s
e
t
u
p
s
i
d
e
v
l
o
s
e
r
o
t
g
n
i
p
l
e
h
n
i
S
C
M
F
e
h
t
y
b
d
e
r
e
services off

respectfully urged for restoration of budget funds which insure the
tion

ce: Mr.
Mr.

Charlies L. Schul
William Simkin

Service.

| Ns te Se

ee ee

tae

FSS

NE Ty GMED | IN

THE

WHITE

HOUSE

WASHINGTON

December

Mr.

P.

Walter

22,

1967

Reuther

President
Automobile

United

Solidarity

House
Jefferson

8000

East

Dear

Walter:

Detroit,

Workers

Michigan

of America

Avenue

48214

,
on
gt
in
sh
Wa
om
fr
t
en
id
es
Pr
the
of
e
nc
se
In the ab
15,
er
mb
ce
De
of
er
tt
le
ur
yo
e
dg
le
ow
kn
ac
me
let
l
al
sh
I
l.
Bil
ty
ri
cu
Se
al
ci
So
the
ng
ni
concer
bring it to the President's attention promptly
after his return from his foreign trip.
With warm personal
the Holiday Season.

regards

and best wishes

for

Sincerely,

geph A.

Califano,

Assistant

to

the

Jr.
President

DEC 28 196/