CONCLUSION

These, then, are the ways in which we must funnel our energies more

efficiently into the task of advancing security and peace.

These actions demand and expect two things of the American people:

sacrifice, and a high degree of understanding. For sacrifice to be

effective it must be intelligent. Sacrifice must be made for the right

purpose and in the right place--even if that place happens to come close to

home!

After all, it is no good demanding sacrifice in general terms one day, and

the next day, for local reasons, opposing the elimination of some unneeded

Federal facility.

It is pointless to condemn Federal spending in general, and the next moment

condemn just as strongly an effort to reduce the particular Federal grant

that touches one's own interest.

And it makes no sense whatever to spend additional billions on military

strength to deter a potential danger, and then, by cutting aid and trade

programs, let the world succumb to a present danger in economic guise.

My friends of the Congress: The world is waiting to see how wisely and

decisively a free representative government will now act.

I believe that this Congress possesses and will display the wisdom promptly

to do its part in translating into law the actions demanded by our nation's

interests. But, to make law effective, our kind of government needs the

full voluntary support of millions of Americans for these actions.

I am fully confident that the response of the Congress and of the American

people will make this time of test a time of honor. Mankind then will see

more clearly than ever that the future belongs, not to the concept of the

regimented atheistic state, but to the people--the God-fearing,

peace-loving people of all the world.

The Address as reported from the floor appears in the Congressional Record

(vol. 104, p. 171).

***

State of the Union Address

Dwight D. Eisenhower

January 9, 1959

Mr. President, Mr. Speaker, Members of the 86th Congress, my fellow

citizens:

This is the moment when Congress and the Executive annually begin their

cooperative work to build a better America.

One basic purpose unites us: To promote strength and security, side by side

with liberty and opportunity.

As we meet today, in the 170th year of the Republic, our Nation must

continue to provide--as all other free governments have had to do

throughout time--a satisfactory answer to a question as old as history. It

is: Can Government based upon liberty and the God-given rights of man,

permanently endure when ceaselessly challenged by a dictatorship, hostile

to our mode of life, and controlling an economic and military power of

great and growing strength?

For us the answer has always been found, and is still found in the

devotion, the vision, the courage and the fortitude of our people.

Moreover, this challenge we face, not as a single powerful nation, but as

one that has in recent decades reached a position of recognized leadership

in the Free World.

We have arrived at this position of leadership in an era of remarkable

productivity and growth. It is also a time when man's power of mass

destruction has reached fearful proportions.

Possession of such capabilities helps create world suspicion and tension.

We, on our part, know that we seek only a just peace for all, with

aggressive designs against no one. Yet we realize that there is uneasiness

in the world because of a belief on the part of peoples that through

arrogance, miscalculation or fear of attack, catastrophic war could be

launched. Keeping the peace in today's world more than ever calls for the

utmost in the nation's resolution, wisdom, steadiness and unremitting

effort.

We cannot build peace through desire alone. Moreover, we have learned the

bitter lesson that international agreements, historically considered by us

as sacred, are regarded in Communist doctrine and in practice to be mere

scraps of paper. The most recent proof of their disdain of international

obligations, solemnly undertaken, is their announced intention to abandon

their responsibilities respecting Berlin.

As a consequence, we can have no confidence in any treaty to which

Communists are a party except where such a treaty provides within itself

for self-enforcing mechanisms. Indeed, the demonstrated disregard of the

Communists of their own pledges is one of the greatest obstacles to success

in substituting the Rule of Law for rule by force.

Yet step by step we must strengthen the institutions of peace--a peace that

rests upon justice--a peace that depends upon a deep knowledge and dear

understanding by all peoples of the cause and consequences of possible

failure in this great purpose.

To achieve this peace we seek to prevent war at any place and in any

dimension. If, despite our best efforts, a local dispute should flare into

armed hostilities, the next problem would be to keep the conflict from

spreading, and so compromising freedom. In support of these objectives we

maintain forces of great power and flexibility.

Our formidable air striking forces are a powerful deterrent to general war.

Large and growing portions of these units can depart from their bases in a

matter of minutes.

Similar forces are included in our naval fleets.

Ground and other tactical formations can move with swiftness and precision,

when requested by friendly and responsible governments, to help curb

threatened aggression. The stabilizing influence of this capacity has been

dramatically demonstrated more than once over the past year.

Our military and related scientific progress has been highly gratifying.

Great strides have been made in the development of ballistic missiles.

Intermediate range missiles are now being deployed in operational units.

The Arias intercontinental ballistic missile program has been marked by

rapid development as evidenced by recent successful tests. Missile training

units have been established and launching sites are far along in

construction.

New aircraft that fly at twice the speed of sound are entering our

squadrons.

We have successfully placed five satellites in orbit, which have gathered

information of scientific importance never before available. Our latest

satellite illustrates our steady advance in rocketry and foreshadows new

developments in world-wide communications.

Warning systems constantly improve.

Our atomic submarines have shattered endurance records and made historic

voyages under the North Polar Sea.

A major segment of our national scientific and engineering community is

working intensively to achieve new and greater developments. Advance in

military technology requires adequate financing but, of course, even more,

it requires talent and time.

All this is given only as a matter of history; as a record of our progress

in space and ballistic missile fields in no more than four years of

intensive effort. At the same time we clearly recognize that some of the

recent Soviet accomplishments in this particular technology are indeed

brilliant.

Under the law enacted last year the Department of Defense is being

reorganized to give the Secretary of Defense full authority over the

military establishment. Greater efficiency, more cohesive effort and

speedier reaction to emergencies are among the many advantages we are

already noting from these changes.

These few highlights point up our steady military gains. We are rightfully

gratified by the achievements they represent. But we must remember that

these imposing armaments are purchased at great cost.

National Security programs account for nearly sixty percent of the entire

Federal budget for this coming fiscal year.

Modern weapons are exceedingly expensive.

The overall cost of introducing ATLAS into our armed forces will average

$35 million per missile on the firing line.

This year we are investing an aggregate of close to $7 billion in missile

programs alone.

Other billions go for research, development, test and evaluation of new

weapons systems.

Our latest atomic submarines will cost $50 millions each, while some

special types will cost three times as much.

We are now ordering fighter aircraft which are priced at fifty times as

much as the fighters of World War II.

We are buying certain bombers that cost their weight in gold.

These sums are tremendous, even when compared with the marvelous resiliency

and capacity of our economy.

Such expenditures demand both balance and perspective in our planning for

defense. At every turn, we must weigh, judge and select. Needless

duplication of weapons and forces must be avoided.

We must guard against feverish building of vast armaments to meet glibly

predicted moments of so-called "maximum peril." The threat we face is not

sporadic or dated: It is continuous. Hence we must not be swayed in our

calculations either by groundless fear or by complacency. We must avoid

extremes, for vacillation between extremes is inefficient, costly, and

destructive of morale. In these days of unceasing technological advance, we

must plan our defense expenditures systematically and with care, fully

recognizing that obsolescence compels the never-ending replacement of older

weapons with new ones.

The defense budget for the coming year has been planned on the basis of

these principles and considerations. Over these many months I have

personally participated in its development.

The aim is a sensible posture of defense. The secondary aim is increased

efficiency and avoidance of waste. Both are achieved by this budgetary

plan.

Working by these guide lines I believe with all my heart that America can

be as sure of the strength and efficiency of her armed forces as she is of

their loyalty. I am equally sure that the nation will thus avoid useless

expenditures which, in the name of security, might tend to undermine the

economy and, therefore, the nation's safety.

Our own vast strength is only a part of that required for dependable

security. Because of this we have joined with nearly 50 other nations in

collective security arrangements. In these common undertakings each nation

is expected to contribute what it can in sharing the heavy load. Each

supplies part of a strategic deployment to protect the forward boundaries

of freedom.

Constantly we seek new ways to make more effective our contribution to this

system of collective security. Recently I have asked a Committee of eminent

Americans of both parties to re-appraise our military assistance programs

and the relative emphasis which should be placed on military and economic

aid.

I am hopeful that preliminary recommendations of this Committee will be

available in time to assist in shaping the Mutual Security program for the

coming fiscal year.

Any survey of the free world's defense structure cannot fail to impart a

feeling of regret that so much of our effort and resources must be devoted

to armaments. At Geneva and elsewhere we continue to seek technical and

other agreements that may help to open up, with some promise, the issues of

international disarmament. America will never give up the hope that

eventually all nations can, with mutual confidence, drastically reduce

these non-productive expenditures. II.

The material foundation of our national safety is a strong and expanding

economy. This we have--and this we must maintain. Only with such an economy

can we be secure and simultaneously provide for the well-being of our

people.

A year ago the nation was experiencing a decline in employment and output.

Today that recession is fading into history, and this without gigantic,

hastily-improvised public works projects or untimely tax reductions. A

healthy and vigorous recovery has been under way since last May. New homes

are being built at the highest rate in several years. Retail sales are at

peak levels. Personal income is at an all-time high.

The marked forward thrust of our economy reaffirms our confidence in

competitive enterprise. But--clearly--wisdom and prudence in both the

public and private sectors of the economy are always necessary.

Our outlook is this: 1960 commitments for our armed forces, the Atomic

Energy Commission and Military Assistance exceed 47 billion dollars. In the

foreseeable future they are not likely to be significantly lower. With an

annual population increase of three million, other governmental costs are

bound to mount.

After we have provided wisely for our military strength, we must judge how

to allocate our remaining government resources most effectively to promote

our well-being and economic growth.

Federal programs that will benefit all citizens are moving forward.

Next year we will be spending increased amounts on health programs; on

Federal assistance to science and education; on the development of the

nation's water resources; on the renewal of urban areas; and on our vast

system of Federal-aid highways.

Each of these additional outlays is being made necessary by the surging

growth of America.

Let me illustrate. Responsive to this growth, Federal grants and long term

loans to assist 14 major types of capital improvements in our cities will

total over 2 billion dollars in 1960--double the expenditure of two years

ago. The major responsibility for development in these fields rests in the

localities, even though the Federal Government will continue to do its

proper part in meeting the genuine needs of a burgeoning population.

But the progress of our economy can more than match the growth of our

needs. We need only to act wisely and confidently.

Here, I hope you will permit me to digress long enough to express something

that is much on my mind.

The basic question facing us today is more than mere survival--the military

defense of national life and territory. It is the preservation of a way of

life.

We must meet the world challenge and at the same time permit no stagnation

in America.

Unless we progress, we regress.

We can successfully sustain security and remain true to our heritage of

freedom if we clearly visualize the tasks ahead and set out to perform them

with resolution and fervor. We must first define these tasks and then

understand what we must do to perform them.

If progress is to be steady we must have long term guides extending far

ahead, certainly five, possibly even ten years. They must reflect the

knowledge that before the end of five years we will have a population of

over 190 million. They must be goals that stand high, and so inspire every

citizen to climb always toward mounting levels of moral, intellectual and

material strength. Every advance toward them must stir pride in individual

and national achievements.

To define these goals, I intend to mobilize help from every available

source.

We need more than politically ordained national objectives to challenge the

best efforts of free men and women. A group of selfless and devoted

individuals, outside of government, could effectively participate in making

the necessary appraisal of the potentials of our future. The result would

be establishment of national goals that would not only spur us on to our

finest efforts, but would meet the stern test of practicality.

The Committee I plan will comprise educators and representatives of labor,

management, finance, the professions and every other kind of useful

activity.

Such a study would update and supplement, in the light of continuous

changes in our society and its economy, the monumental work of the

Committee on Recent Social Trends which was appointed in 1931 by President

Hoover. Its report has stood the test of time and has had a beneficial

influence on national development. The new Committee would be concerned,

among other things, with the acceleration of our economy's growth and the

living standards of our people, their health and education, their better

assurance of life and liberty and their greater opportunities. It would

also be concerned with methods to meet such goals and what levels of

government--Local, State, or Federal--might or should be particularly

concerned.

As one example, consider our schools, operated under the authority of local

communities and states. In their capacity and in their quality they conform

to no recognizable standards. In some places facilities are ample, in

others meager. Pay of teachers ranges between wide limits, from the

adequate to the shameful. As would be expected, quality of teaching varies

just as widely. But to our teachers we commit the most valuable possession

of the nation and of the family--our children.

We must have teachers of competence. To obtain and hold them we need

standards. We need a National Goal. Once established I am certain that

public opinion would compel steady progress toward its accomplishment.

Such studies would be helpful, I believe, to government at all levels and

to all individuals. The goals so established could help us see our current

needs in perspective. They will spur progress.

We do not forget, of course, that our nation's progress and fiscal

integrity are interdependent and inseparable. We can afford everything we

clearly need, but we cannot afford one cent of waste. We must examine every

item of governmental expense critically. To do otherwise would betray our

nation's future. Thrift is one of the characteristics that has made this

nation great. Why should we ignore it now?

We must avoid any contribution to inflationary processes, which could

disrupt sound growth in our economy.

Prices have displayed a welcome stability in recent months and, if we are

wise and resolute, we will not tolerate inflation in the years to come. But

history makes clear the risks inherent in any failure to deal firmly with

the .basic causes of inflation. Two of the most important of these causes

are the wage-price spiral and continued deficit financing.

Inflation would reduce job opportunities, price us out of world markets,

shrink the value of savings and penalize the thrift so essential to finance

a growing economy.

Inflation is not a Robin Hood, taking from the rich to give to the poor.

Rather, it deals most cruelly with those who can least protect themselves.

It strikes hardest those millions of our citizens whose incomes do not

quickly rise with the cost of living. When prices soar, the pensioner and

the widow see their security undermined, the man of thrift sees his savings

melt away; the white collar worker, the minister, and the teacher see their

standards of living dragged down.

Inflation can be prevented. But this demands statesmanship on the part of

business and labor leaders and of government at all levels.

We must encourage the self-discipline, the restraint necessary to curb the

wage-price spiral and we must meet current costs from current revenue.

To minimize the danger of future soaring prices and to keep our economy

sound and expanding, I shall present to the Congress certain proposals.

First, I shall submit a balanced budget for the next year, a year expected

to be the most prosperous in our history. It is a realistic budget with

wholly attainable objectives.

If we cannot live within our means during such a time of rising prosperity,

the hope for fiscal integrity will fade. If we persist in living beyond our

means, we make it difficult for every family in our land to balance its own

household budget. But to live within our means would be a tangible

demonstration of the self-discipline needed to assure a stable dollar.

The Constitution entrusts the Executive with many functions, but the

Congress--and the Congress alone--has the power of the purse. Ultimately

upon Congress rests responsibility for determining the scope and amount of

Federal spending.

By working together, the Congress and the Executive can keep a balance

between income and outgo. If this is done there is real hope that we can

look forward to a time in the foreseeable future when needed tax reforms

can be accomplished.

In this hope, I am requesting the Secretary of the Treasury to prepare

appropriate proposals for revising, at the proper time, our tax structure,

to remove inequities and to enhance incentives for all Americans to work,

to save, and to invest. Such recommendations will be made as soon as our

fiscal condition permits. These prospects will be brightened if 1960

expenditures do not exceed the levels recommended.

Second, I shall recommend to the Congress that the Chief Executive be given

the responsibility either to approve or to veto specific items in

appropriations and authorization bills. This would save tax dollars.

Third, to reduce Federal operations in an area where private enterprise can

do the job, I shall recommend legislation for greater flexibility in

extending Federal credit, and in improving the procedures under which

private credits are insured or guaranteed. Present practices have

needlessly added large sums to Federal expenditures.

Fourth, action is required to make more effective use of the large Federal

expenditures for agriculture and to achieve greater fiscal control in this

area.

Outlays of the Department of Agriculture for the current fiscal year for

the support of farm prices on a very few farm products will exceed five

billion dollars. That is a sum equal to approximately two-fifths of the net

income of all farm operators in the entire United States.

By the end of this fiscal year it is estimated that there will be in

Government hands surplus farm products worth about nine billion dollars.

And by July 1, 1959, Government expenditures for storage, interest, and

handling of its agricultural inventory will reach a rate of one billion

dollars a year.

This level of expenditure for farm products could be made willingly for a

temporary period if it were leading to a sound solution of the problem. But

unfortunately this is not true. We need new legislation.

In the past I have sent messages to the Congress requesting greater freedom

for our farmers to manage their own farms and greater freedom for markets

to reflect the wishes of producers and consumers. Legislative changes that

followed were appropriate in direction but did not go far enough.

The situation calls for prompt and forthright action. Recommendation for

action will be contained in a message to be transmitted to the Congress

shortly.

These fiscal and related actions will help create an environment of price

stability for economic growth. However, certain additional measures are

needed.

I shall ask Congress to amend the Employment Act of 1946 to make it clear

that Government intends to use all appropriate means to protect the buying

power of the dollar.

I am establishing a continuing Cabinet group on Price Stability for

Economic Growth to study governmental and private policies affecting costs,

prices, and economic growth. It will strive also to build a better public

understanding of the conditions necessary for maintaining growth and price

stability.

Studies are being undertaken to improve our information on prices, wages,

and productivity.

I believe all citizens in all walks of life will support this program of

action to accelerate economic growth and promote price stability. III.

I take up next certain aspects of our international situation and our

programs to strengthen it.

America's security can be assured only within a world community strong,

stable, independent nations, in which the concepts of freedom, justice and

human dignity can flourish.

There can be no such thing as Fortress America. If ever we were reduced to

the isolation implied by that term, we would occupy a prison, not a

fortress. The question whether we can afford to help other nations that

want to defend their freedom but cannot fully do so from their own means,

has only one answer: we can and we must, we have been doing so since 1947.

Our foreign policy has long been dedicated to building a permanent and just

peace.

During the past six years our free world security arrangements have been

bolstered and the bonds of freedom have been more closely knit. Our friends

in Western Europe are experiencing new internal vitality, and are

increasingly more able to resist external threats.

Over the years the world has come to understand clearly that it is our firm

policy not to countenance aggression. In Lebanon, Taiwan, and Berlin--our

stand has been dear, right, and expressive of the determined will of a

united people.

Acting with other free nations we have undertaken the solemn obligation to

defend the people of free Berlin against any effort to destroy their

freedom. In the meantime we shall constantly seek meaningful agreements to

settle this and other problems, knowing full well that not only the

integrity of a single city, but the hope of all free peoples is at stake.

We need, likewise, to continue helping to build the economic base so

essential to the Free World's stability and strength.

The International Monetary Fund and the World Bank have both fully proven

their worth as instruments of international financial cooperation. Their

Executive Directors have recommended an increase in each member country's

subscription. I am requesting the Congress for immediate approval of our

share of these increases.

We are now negotiating with representatives of the twenty Latin American

Republics for the creation of an inter-American financial institution. Its

purpose would be to join all the American Republics in a common institution

which would promote and finance development in Latin America, and make more

effective the use of capital from the World Bank, the Export-Import Bank,

and private sources.

Private enterprise continues to make major contributions to economic

development in all parts of the world. But we have not yet marshalled the

full potential of American business for this task, particularly in

countries which have recently attained their independence. I shall present

to this Congress a program designed to encourage greater participation by

private enterprise in economic development abroad.

Further, all of us know that to advance the cause of freedom we must do

much more than help build sound economies. The spiritual, intellectual, and

physical strength of people throughout the world will in the last analysis

determine their willingness and their ability to resist Communism.

To give a single illustration of our many efforts in these fields: We have

been a participant in the effort that has been made over the past few years

against one of the great scourges of mankind--disease. Through the Mutual

Security program public health officials are being trained by American

universities to serve in less developed countries. We are engaged in

intensive malaria eradication projects in many parts of the world.

America's major successes in our own country prove the feasibility of

success everywhere.

By these and other means we shall continue and expand our campaign against

the afflictions that now bring needless suffering and death to so many of

the world's people. We wish to be part of a great shared effort toward the

triumph of health. IV.

America is best described by one word, freedom.

If we hope to strengthen freedom in the world we must be ever mindful of

how our own conduct reacts elsewhere. No nation has ever been so

floodlighted by world opinion as the United States is today. Everything we

do is carefully scrutinized by other peoples throughout the world. The bad

is seen along with the good.

Because we are human we err. But as free men we are also responsible for

correcting the errors and imperfections of our ways.

Last January I made comprehensive recommendations to the Congress for

legislation in the labor-management field. To my disappointment, Congress

failed to act. The McClellan Committee disclosures of corruption,

racketeering, and abuse of trust and power in labor-management affairs have

aroused America and amazed other peoples. They emphasize the need for

improved local law enforcement and the enactment of effective Federal

legislation to protect the public interest and to insure the rights and

economic freedoms of millions of American workers. Halfhearted measures

will not do. I shall recommend prompt enactment of legislation designed:

To safeguard workers' funds in union treasuries against misuse of any kind

whatsoever.

To protect the rights and freedoms of individual union members, including

the basic right to free and secret elections of officers.

To advance true and responsible collective bargaining.

To protect the public and innocent third parties from unfair and coercive

practices such as boycotting and blackmail picketing.

The workers and the public must have these vital protections.

In other areas of human rights--freedom from discrimination in voting, in

public education, in access to jobs, and in other respects--the world is

likewise watching our conduct.

The image of America abroad is not improved when school children, through

closing of some of our schools and through no fault of their own, are

deprived of their opportunity for an education.

The government of a free people has no purpose more noble than to work for

the maximum realization of equality of opportunity under law. This is not

the sole responsibility of any one branch of our government. The judicial

arm, which has the ultimate authority for interpreting the Constitution,

has held that certain state laws and practices discriminate upon racial

grounds and are unconstitutional. Whenever the supremacy of the

Constitution of the United States is challenged I shall continue to take

every action necessary to uphold it.

One of the fundamental concepts of our constitutional system is that it

guarantees to every individual, regardless of race, religion, or national

origin, the equal protection of the laws. Those of us who are privileged to

hold public office have a solemn obligation to make meaningful this

inspiring objective. We can fulfill that obligation by our leadership in

teaching, persuading, demonstrating, and in enforcing the law.

We are making noticeable progress in the field of civil rights--we are

moving forward toward achievement of equality of opportunity for all people

everywhere in the United States. In the interest of the nation and of each

of its citizens, that progress must continue.

Legislative proposals of the Administration in this field will be submitted

to the Congress early in the session. All of us should help to make clear

that the government is united in the common purpose of giving support to

the law and the decisions of the Courts.

By moving steadily toward the goal of greater freedom under law, for our

own people, we shall be the better prepared to work for the cause of

freedom under law throughout the world.

All peoples are solely tired of the fear, destruction, and the waste of

war. As never before, the world knows the human and material costs of war

and seeks to replace force with a genuine role of law among nations.

It is my purpose to intensify efforts during the coming two years in

seeking ways to supplement the procedures of the United Nations and other

bodies with similar objectives, to the end that the rule of law may replace

the rule of force in the affairs of nations. Measures toward this end will

be proposed later, including a re-examination of our own relation to the

International Court of Justice.

Finally--let us remind ourselves that Marxist scripture is not new; it is

not the gospel of the future. Its basic objective is dictatorship, old as

history. What is new is the shining prospect that man can build a world

where all can live in dignity.

We seek victory--not over any nation or people--but over the ancient

enemies of us all; victory over ignorance, poverty, disease, and human

degradation wherever they may be found.

We march in the noblest of causes--human freedom.

If we make ourselves worthy of America's ideals, if we do not forget that

our nation was founded on the premise that all men are creatures of God's

making, the world will come to know that it is free men who carry forward

the true promise of human progress and dignity.

The Address as reported from the floor appears in the Congressional Record

of January 9, 1959 (vol. 105, p. 163).

***

State of the Union Address

Dwight D. Eisenhower

January 7, 1960

Mr. President, Mr. Speaker, Members of the 86th Congress:

Seven years ago I entered my present office with one long-held resolve

overriding all others. I was then, and remain now, determined that the

United States shall become an ever more potent resource for the cause of

peace--realizing that peace cannot be for ourselves alone, but for peoples

everywhere. This determination is shared by the entire Congress--indeed, by

all Americans.

My purpose today is to discuss some features of America's position, both at

home and in her relations to others.

First, I point out that for us, annual self-examination is made a definite

necessity by the fact that we now live in a divided world of uneasy

equilibrium, with our side committed to its own protection and against

aggression by the other.

With both sides of this divided world in possession of unbelievably

destructive weapons, mankind approaches a state where mutual annihilation

becomes a possibility. No other fact of today's world equals this in

importance--it colors everything we say, plan, and do.

There is demanded of us, vigilance, determination, and the dedication of

whatever portion of our resources that will provide adequate security,

especially a real deterrent to aggression. These things we are doing.

All these facts emphasize the importance of striving incessantly for a just

peace.

Only through the strengthening of the spiritual, intellectual, economic and

defensive resources of the Free World can we, in confidence, make progress

toward this goal.

Second, we note that recent Soviet deportment and pronouncements suggest

the possible opening of a somewhat less strained period in the

relationships between the Soviet Union and the Free World. If these

Pronouncements be genuine, there is brighter hope of diminishing the

intensity of past rivalry and eventually of substituting persuasion for

coercion. Whether this is to become an era of lasting promise remains to be

tested by actions.

Third, we now stand in the vestibule of a vast new technological age-one

that, despite its capacity for human destruction, has an equal capacity to

make poverty and human misery obsolete. If our efforts are wisely

directed--and if our unremitting efforts for dependable peace begin to

attain some success--we can surely become participants in creating an age

characterized by justice and rising levels of human well-being.

Over the past year the Soviet Union has expressed an interest in measures

to reduce the common peril of war.

While neither we nor any other Free World nation can permit ourselves to be

misled by pleasant promises until they are tested by performance, yet we

approach this apparently new opportunity with the utmost seriousness. We

must strive to break the calamitous cycle of frustrations and crises which,

if unchecked, could spiral into nuclear disaster; the ultimate insanity.

Though the need for dependable agreements to assure against resort to force

in settling disputes is apparent to both sides yet as in other issues

dividing men and nations, we cannot expect sudden and revolutionary

results. But we must find some place to begin.

One obvious road on which to make a useful start is in the widening of

communication between our two peoples. In this field there are, both sides

willing, countless opportunities--most of them well known to us all--for

developing mutual understanding, the true foundation of peace.

Another avenue may be through the reopening, on January twelfth, of

negotiations looking to a controlled ban on the testing of nuclear weapons.

Unfortunately, the closing statement from the Soviet scientists who met

with our scientists at Geneva in an unsuccessful effort to develop an

agreed basis for a test ban, gives the clear impression that their

conclusions have been politically guided. Those of the British and American

scientific representatives are their own freely-formed, individual and

collective opinion. I am hopeful that as new negotiations begin, truth--not

political opportunism--will be the guiding light of the deliberations.

Still another avenue may be found in the field of disarmament, in which the

Soviets have professed a readiness to negotiate seriously. They have not,

however, made clear the plans they may have, if any, for mutual inspection

and verification--the essential condition for any extensive measure of

disarmament.

There is one instance where our initiative for peace has recently been

successful. A multi-lateral treaty signed last month provides for the

exclusively peaceful use of Antarctica, assured by a system of inspection.

It provides for free and cooperative scientific research in that continent,

and prohibits nuclear explosions there pending general international

agreement on the subject. The Treaty is a significant contribution toward

peace, international cooperation, and the advancement of science. I shall

transmit its text to the Senate for consideration and approval in the near

future.

The United States is always ready to participate with the Soviet Union in

serious discussion of these or any other subjects that may lead to peace

with justice.

Certainly it is not necessary to repeat that the United States has no

intention of interfering in the internal affairs of any nation; likewise we

reject any attempt to impose its system on us or on other peoples by force

or subversion.

This concern for the freedom of other peoples is the intellectual and

spiritual cement which has allied us with more than forty other nations in

a common defense effort. Not for a moment do we forget that our own fate is

firmly fastened to that of these countries; we will not act in any way

which would jeopardize our solemn commitments to them.

We and our friends are, of course, concerned with self-defense. Growing out

of this concern is the realization that all people of the Free World have a

great stake in the progress, in freedom, of the uncommitted and newly

emerging nations. These peoples, desperately hoping to lift themselves to

decent levels of living must not, by our neglect, be forced to seek help

from, and finally become virtual satellites of, those who proclaim their

hostility to freedom.

Their natural desire for a better life must not be frustrated by

withholding from them necessary technical and investment assistance. This

is a problem to be solved not by America alone, but also by every nation

cherishing the same ideals and in position to provide help.

In recent years America's partners and friends in Western Europe and Japan

have made great economic progress. Their newly found economic strength is

eloquent testimony to the striking success of the policies of economic

cooperation which we and they have pursued.

The international economy of 1960 is markedly different from that of the

early postwar years. No longer is the United States the only major

industrial country capable of providing substantial amounts of the

resources so urgently needed in the newly-developing countries.

To remain secure and prosperous themselves, wealthy nations must extend the

kind of cooperation to the less fortunate members that will inspire hope,

confidence and progress. A rich nation can for a time, without noticeable

damage to itself, pursue a course of self-indulgence, making its single

goal the material ease and comfort of its own citizens-thus repudiating its

own spiritual and material stake in a peaceful and prosperous society of

nations. But the enmities it will incur, the isolation into which it will

descend, and the internal moral and physical softness that will be

engendered, will, in the long term, bring it to disaster.

America did not become great through softness and self-indulgence. Her

miraculous progress and achievements flow from other qualities far more

worthy and substantial--

--adherence to principles and methods consonant with our religious

philosophy

--a satisfaction in hard work

--the readiness to sacrifice for worthwhile causes

--the courage to meet every challenge to her progress

--the intellectual honesty and capacity to recognize the true path of her

own best interests.

To us and to every nation of the Free World, rich or poor, these qualities

are necessary today as never before if we are to march together to greater

security, prosperity and peace.

I believe the industrial countries are ready to participate actively in

supplementing the efforts of the developing countries to achieve progress.

The immediate need for this kind of cooperation is underscored by the

strain in our international balance of payments. Our surplus from foreign

business transactions has in recent years fallen substantially short of the

expenditures we make abroad to maintain our military establishments

overseas, to finance private investment, and to provide assistance to the

less developed nations. In 1959 our deficit in balance of payments

approached $4 billion.

Continuing deficits of anything like this magnitude would, over time,

impair our own economic growth and check the forward progress of the Free

World.

We must meet this situation by promoting a rising volume of exports and

world trade. Further, we must induce all industrialized nations of the Free

World to work together in a new cooperative endeavor to help lift the

scourge of poverty from less fortunate nations. This will provide for

better sharing of this burden and for still further profitable trade.

New nations, and others struggling with the problems of development, will

progress only if they demonstrate faith in their own destiny and possess

the will and use their own resources to fulfill it. Moreover, progress in a

national transformation can be only gradually earned; there is no easy and

quick way to follow from the oxcart to the jet plane. But, just as we drew

on Europe for assistance in our earlier years, so now do those new and

emerging nations that have this faith and determination deserve help.

Over the last fifteen years, twenty nations have gained political

independence. Others are doing so each year. Most of them are woefully

lacking in technical capacity and in investment capital; without Free World

support in these matters they cannot effectively progress in freedom.

Respecting their need, one of the major focal points of our concern is the

South Asian region. Here, in two nations alone, are almost five hundred

million people, all working, and working hard, to raise their standards,

and in doing so, to make of themselves a strong bulwark against the spread

of an ideology that would destroy liberty.

I cannot express to you the depth of my conviction that, in our own and

Free World interests, we must cooperate with others to help these people

achieve their legitimate ambitions, as expressed in their different

multi-year plans. Through the World Bank and other instrumentalities, as

well as through individual action by every nation in position to help, we

must squarely face this titanic challenge.

All of us must realize, of course, that development in freedom by the newly

emerging nations, is no mere matter of obtaining outside financial

assistance. An indispensable element in this process is a strong and

continuing determination on the part of these nations to exercise the

national discipline necessary for any sustained development period. These

qualities of determination are particularly essential because of the fact

that the process of improvement will necessarily be gradual and laborious

rather than revolutionary. Moreover, everyone should be aware that the

development process is no short term phenomenon. Many years are required

for even the most favorably situated countries.

I shall continue to urge the American people, in the interests of their own

security, prosperity and peace, to make sure that their own part of this

great project be amply and cheerfully supported. Free World decisions in

this matter may spell the difference between world disaster and world

progress in freedom.

Other countries, some of which I visited last month, have similar needs.

A common meeting ground is desirable for those nations which are prepared

to assist in the development effort. During the past year I have discussed

this matter with the leaders of several Western Nations.

Because of its wealth of experience, the Organization for European Economic

Cooperation could help with initial studies. The goal is to enlist all

available economic resources in the industrialized Free World-especially

private investment capital. But I repeat that .this help, no matter how

great, can be lastingly effective only if it is used as a supplement to the

strength of spirit and will of the people of the newly-developing nations.

By extending this help we hope to make possible the enthusiastic enrollment

of these nations under freedom's banner. No more startling contrast to a

system of sullen satellites could be imagined.

If we grasp this opportunity to build an age of productive partnership

between the less fortunate nations and those that have already achieved a

high state of economic advancement, we will make brighter the outlook for a

world order based upon security, freedom and peace. Otherwise, the outlook

could be dark indeed. We face what may be a turning point in history, and

we must act decisively.

As a nation we can successfully pursue these objectives only from a

position of broadly based strength.

No matter how earnest is our quest for guaranteed peace, we must maintain a

high degree of military effectiveness at the same time we are engaged in

negotiating the issue of arms reduction. Until tangible and mutually

enforceable arms reduction measures are worked out, we will not weaken the

means of defending our institutions.

America possesses an enormous defense power. It is my studied conviction

that no nation will ever risk general war against us unless we should be so

foolish as to neglect the defense forces we now so powerfully support. It

is world-wide knowledge that any nation which might be tempted today to

attack the United States, even though our country might sustain great

losses, would itself promptly suffer a terrible destruction. But I once

again assure all peoples and all nations that the United States, except in

defense, will never turn loose this destructive power.

During the past year, our long-range striking power, unmatched today in

manned bombers, has taken on new strength as the Atlas intercontinental

ballistic missile has entered the operational inventory. In fourteen recent

test launchings, at ranges of over 5,000 miles, Atlas has been striking on

an average within two miles of the target. This is less than the length of

a jet runway--well within the circle of total destruction. Such performance

is a great tribute to American scientists and engineers, who in the past

five years have had to telescope time and technology to develop these

long-range ballistic missiles, where America had none before.

This year, moreover, growing numbers of nuclear-powered submarines will

enter our active forces, some to be armed with Polaris missiles. These

remarkable ships and weapons, ranging the oceans, will be capable of

accurate fire on targets virtually anywhere on earth. Impossible to destroy

by surprise attack, they will become one of our most effective sentinels

for peace.

To meet situations of less than general nuclear war, we continue to

maintain our carrier forces, our many service units abroad, our always

ready Army strategic forces and Marine Corps divisions, and the civilian

components. The continuing modernization of these forces is a costly but

necessary process, and is scheduled to go forward at a rate which will

steadily add to our strength.

The deployment of a portion of these forces beyond our shores, on land and

sea, is persuasive demonstration of our determination to stand

shoulder-to-shoulder with our allies for collective security. Moreover, I

have directed that steps be taken to program our military assistance to

these allies on a longer range basis. This is necessary for a sounder

collective defense system.

Next I refer to our effort in space exploration, which is often mistakenly

supposed to be an integral part of defense research and development.

First, America has made great contributions in the past two years to the

world's fund of knowledge of astrophysics and space science. These

discoveries are of present interest chiefly to the scientific community;

but they are important foundation-stones for more extensive exploration of

outer space for the ultimate benefit of all mankind.

Second, our military missile program, going forward so successfully, does

not suffer from our present lack of very large rocket engines, which are so

necessary in distant space exploration. I am assured by experts that the

thrust of our present missiles is fully adequate for defense requirements.

Third, the United States is pressing forward in the development of large

rocket engines to place much heavier vehicles into space for exploration

purposes.

Fourth, in the meantime, it is necessary to remember that we have only

begun to probe the environment immediately surrounding the earth. Using

launch systems presently available, we are developing satellites to scout

the world's weather; satellite relay stations to facilitate and extend

communications over the globe; for navigation aids to give accurate

bearings to ships and aircraft; and for perfecting instruments to collect

and transmit the data we seek. This is the area holding the most promise

for early and useful applications of space technology.

Fifth, we have just completed a year's experience with our new space law. I

believe it deficient in certain particulars and suggested improvements will

be submitted shortly.

The accomplishment of the many tasks I have alluded to requires the

continuous strengthening of the spiritual, intellectual, and economic

sinews of American life. The steady purpose of our society is to assure

justice, before God, for every individual. We must be ever alert that

freedom does not wither through the careless amassing of restrictive

controls or the lack of courage to deal boldly with the giant issues of the

day.

A year ago, when I met with you, the nation was emerging from an economic

downturn, even though the signs of resurgent prosperity were not then

sufficiently convincing to the doubtful. Today our surging strength is

apparent to everyone. 1960 promises to be the most prosperous year in our

history.

Yet we continue to be afflicted by nagging disorders.

Among current problems that require solution are:

--the need to protect the public interest in situations of prolonged

labor-management stalemate;

--the persistent refusal to come to grips with a critical problem in one

sector of American agriculture;

--the continuing threat of inflation, together with the persisting tendency

toward fiscal irresponsibility;

--in certain instances the denial to some of our citizens of equal

protection of the law.

Every American was disturbed by the prolonged dispute in the steel industry

and the protracted delay in reaching a settlement.

We are all relieved that a settlement has at last been achieved in that

industry. Percentagewise, by this settlement the increase to the steel

companies in employment costs is lower than in any prior wage settlement

since World War II. It is also gratifying to note that despite the increase

in wages and benefits several of the major steel producers have announced

that there will be no increase in steel prices at this time. The national

interest demands that in the period of industrial peace which has been

assured by the new contract both management and labor make every possible

effort to increase efficiency and productivity in the manufacture of steel

so that price increases can be avoided.

One of the lessons of this story is that the potential danger to the entire

Nation of longer and greater strikes must be met. To insure against such

possibilities we must of course depend primarily upon the good commonsense

of the responsible individuals. It is my intention to encourage regular

discussions between management and labor outside the bargaining table, to

consider the interest of the public as well as their mutual interest in the

maintenance of industrial peace, price stability and economic growth.

To me, it seems almost absurd for the United States to recognize the need,

and so earnestly to seek, for cooperation among the nations unless we can

achieve voluntary, dependable, abiding cooperation among the important

segments of our own free society.

Failure to face up to basic issues in areas other than those of

labor-management can cause serious strains on the firm freedom supports of

our society.

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