First of all, on the energy special funds for those that have their power cut off or their heat cut off, as you know, last year, quite late in the freezing winter, we came forward with $200 million under Graciela Olivarez, who runs the Community Services Agency [Administration]. This money was distributed to the local and State governments very efficiently, very effectively, in a hurry, too late. I've already had Senator Muskie and Senator Kennedy come to see me this week saying, "What about this coming winter?" And I can promise you that we're not going to be too late this coming winter. On the bilingual approach to many problems, not just in education--of course, this is something we are pursuing. I promised this during the campaign and will continue with it. And you mentioned that HUD hasn't cared where people lived or what kind of houses they lived in. This may have been the case in the past, that there have been housing funds frozen and impounded in the past. That won't ever happen as long as I'm in the White House because I know you'll be watching me too closely. I don't think we could have a better Secretary of Housing and Urban Development than Pat Harris, that we've got now. She's there with you, she cares about you, and you can depend on her and me not to let this happen again.

Today, our dominant international challenge is to restore the greatness of America, based on telling the truth, a commitment to peace, and respect for civil liberties at home and basic human rights around the world. Truth is the foundation of our global leadership, but our credibility has been shattered and we are left increasingly isolated and vulnerable in a hostile world. Without truth, without trust, America cannot flourish. Trust is at the very heart of our democracy, the sacred covenant between a president and the people. When that trust is violated, the bonds that hold our republic together begin to weaken.

Since I was a young boy the thrust of my prayers — at least when I was trying to make a good impression on God — has always been that I not fail to use fully and effectively the one life I have on earth. I have always enjoyed difficult challenges. At the same time I have faced the realization that it is not easy to take a chance or confront the prospect of failure and embarrassment. But my feeling is that if we refuse to try something that might fail, we lack faith either in ourselves or in our causes and goals.

The complexity of the system is almost incomprehensible, and the consolidation of the cash. payment into one basic aid to the poor--those who cannot work, those who cannot earn enough income to support their families--will be a major step forward. Another problem arrives from the lack of incentive to work. For instance, a father who heads up a family with four people in it, either a mother and two children or three children, in Michigan, working full time at the minimum wage, has a total income of $5,678. A same-sized family without the father in the home with still four people there, not working at all, has an income of $7,161. A family with the head of the household--a mother and three children--if she goes to work at the minimum wage, has a total income of $9,530 [$8,970.] This shows that the best thing that a working father can do to increase the income of the people that he loves is simply to leave home.

Our national energy plan is based on 10 fundamental principles. The first principle is that we can have an effective and comprehensive energy policy only if the Government takes responsibility for it and if the people understand the seriousness of the challenge and are willing to make sacrifices. The second principle is that healthy economic growth must continue. Only by saving energy can we maintain our standard of living and keep our people at work. An effective conservation program will create hundreds of thousands of new jobs. The third principle is that we must protect the environment. Our energy problems have the same cause as our environmental problems-wasteful use of resources. Conservation helps us solve both problems at once. The fourth principle is that we must reduce our vulnerability to potentially devastating embargoes. We can protect ourselves from uncertain supplies by reducing our demand for oil, by making the most of our abundant resources such as coal, and by developing a strategic petroleum reserve. The fifth principle is that we must be fair. Our solutions must ask equal sacrifices from every region, every class of people, and every interest group. Industry will have to do its part to conserve just as consumers will. The energy. producers deserve fair treatment, but we will not let the oil companies profiteer. The sixth principle, and the cornerstone of our policy, is to reduce demand through conservation. Our emphasis on conservation is a clear difference between this plan and others which merely encouraged crash production efforts. Conservation is the quickest, cheapest, most practical source of energy. Conservation is the only way that we can buy a barrel of oil for about $2. It costs about $13 to waste it. The seventh principle is that prices should generally reflect the true replacement cost of energy. We are only cheating ourselves if we make energy artificially cheap and use more than we can really afford. The eighth principle is that Government policies must be predictable and certain. Both consumers and producers need policies they can count on so they can plan ahead. This is one reason that I'm working with the Congress to create a new Department of Energy to replace more than 50 different agencies that now have some control over energy. The ninth principle is that we must conserve the fuels that are scarcest and make the most of those that are plentiful. We can't continue to use oil and gas for 75 percent of our consumption, as we do now, when they only make up 7 percent of our domestic reserves. We need to shift to plentiful coal, while taking care to protect the environment, and to apply stricter safety standards to nuclear energy. The tenth and last principle is that we must start now to develop the new, unconventional sources of energy that we will rely on in the next century. Now, these 10 principles have guided the development of the policy that I will describe to you and the Congress on Wednesday night.

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We live in a time of transition, an uneasy era which is likely to endure for the rest of this century. During the period we may be tempted to abandon some of the time-honored principles and commitments which have been proven during the difficult times of past generations. We must never yield to this temptation. Our American values are not luxuries, but necessities— not the salt in our bread, but the bread itself.

In many ways, our economy last year was good. The inflation rate went down, and wages, profits, production, housing starts, real income, investment all went up. Four million new jobs were created, an all time record, and many of these jobs, I'm glad to say, were in New England. Employment here in New England last year went up 5 1/2 percent. The unemployment rate dropped 3 full percentage points, from 8 1/2 percent down to 5 1/2 percent. But unemployment and inflation is still higher than I'm willing to accept, and so my top priority this year on the domestic scene is still the economy. I've asked the Congress to help me put into effect a coherent program to make more jobs and to bring inflation closer under control. We need a cooperative anti-inflation effort, with voluntary action being taken by industry and by labor to keep wages and prices from pushing each other up. We need an expanded jobs program to help those who are hit hardest by unemployment. Next week I will send to the Congress legislation that would reauthorize the $12 billion Comprehensive Employment and Training Act, provide for 725,000 public service jobs and for a billion dollar youth employment and training program.

Well, as you know, there are now no legal prohibitions at the Federal Government level from proceeding with the Seabrook plant. The Nuclear Regulatory Commission has not yet given a license. But the Environmental Protection Agency has ruled that the cooling system, as proposed, was adequate. I do think that a State, or the people within a State, should have the right to determine the degree of shifting to nuclear power as a source for energy. As you know, some States have had referenda on this subject. This is a prerogative that the State legislature and the Governor and, in some instances, through referenda, can be accomplished. But the Federal Government does not have and would not want to have the right to prohibit the construction of a nuclear powerplant in a State if the Federal laws were met. But I do think that in New Hampshire or Vermont or other States, that the legislature certainly should have a right to set the standards by which those plants should be built.

Nuclear weapons are an expression of one side of our human character. But there is another side. The same rocket technology that delivers nuclear warheads has also taken us peacefully into space. From that perspective, we see our Earth as it really is — a small and fragile and beautiful blue globe, the only home we have. We see no barriers of race or religion or country. We see the essential unity of our species and our planet; and with faith and common sense, that bright vision will ultimately prevail. Another major challenge, therefore, is to protect the quality of this world within which we live. The shadows that fail across the future are cast not only by the kinds of weapons we have built, but by the kind of world we will either nourish or neglect.

The public is not paying attention. That's correct. And this has resulted in an enormous increase in the waste of fuel and also an increase in imports, which seriously unbalances our trade relationships with foreign countries. I just spent some time right before lunch going over the reasons for it. There may be some indication that stockpiling is taking place in anticipation of the wellhead tax being imposed and because of the uncertainty of future price increases by the OPEC nations. But that's a relatively minor factor, although it is a factor. I hope that the Congress will act expeditiously and not weaken the energy legislation, one of its primary purposes being to impose strict conservation measures. But I would say that at this point, the public has not responded well; that the absence of visibility to the impending oil shortage removes the incentive for the public to be concerned. And I'm afraid that a series of crises are going to be a prerequisite to a sincere desire on the part of the American people to quit wasting so much fuel. We've seen this now on two or three occasions already, as a precursor. One, obvious]y, was the natural gas shortage this past winter; another one was the embargo in 1973, the rapid escalation in prices, and now the very severe trade imbalance. I think these are just predictions of what is to come. I'm concerned that the public has not responded well. And I think voluntary compliance is probably not adequate at all. We will take what the Congress does this year and continue to build on it in subsequent years. I'm determined to have a complete and comprehensive energy package on the books before I go out of office. And what we don't get this year, we'll get in subsequent years.

And the last two points I want to make are these. My background since I got out of the Navy has been as a farmer. I'm very proud that you have given me some good, well-trained Florida leaders to come and help me. Reubin Askew is one of the best public servants I've ever known, and he's our Special Trade Representative. Since he's been there, we've made remarkable progress. This year we'll have $40 billion worth of American agricultural products sold overseas. That's an $8 billion increase over last year, and 1979 set world records. 1978 set world records. 1977 set world records. Another man you've given me is Jim Williams. We will have these first 3 years, with the help of him and others, the highest gross income and the highest net income for farmers in our Nation's history. We've made good progress in getting Government's nose out of the private affairs of American citizens. We've deregulated the airlines, the railroads, the financial institutions, trucking, working on communications. And those of you who live in the Orlando area know that airline deregulation has been good for you. Before it took place, there were 4 flights coming in here; now 15. That increase has been very good for the entire country. It's put the competition back in the free enterprise system, let our Government work like it ought to.

Tonight, I went to the hotel room for a couple of hours before coming over here, and I wanted to write some notes for my speech. I thought back to a little more than 3 years ago when I first came to Iowa. I traveled across your State. I think I stopped in seven towns and cities. And I began to talk about issues that were important to you and important to me and important to our country. Quite often very few people came. Harry Baxter and his wife arranged for two or three hundred to come to a reception here in Des Moines. I think three people came, including Harry Baxter's wife and Jody Powell and one other. And I was invited over to the courthouse and went through and shook hands. But way back in those days we were already talking about human rights. We were talking about stopping the construction of the B-1 bomber. We were talking about bringing lasting peace to the Middle East. We were talking about holding down weapons sales, not only from our country, which is the worst violator of all, but among arms producers throughout the world. We were talking about a better relationship with the Soviet Union, a comprehensive SALT agreement that would put a limit on atomic weapons of all kinds. And we are making great progress on this effort. And I can tell you that in a few weeks, my prediction is that we will have a SALT agreement that will be a pride of our country, and following that, we will proceed toward my ultimate goal of reducing nuclear weapons in this world to zero. Back in those early days, even a year ago, there was a general feeling that nothing could be done to stop the proliferation of nuclear explosives among countries that presently don't have them. But in the last 9 months we have formed a commitment among the nations of the world to permit some use of atomic power to produce electricity, but to prevent the production of weapons. And I believe that we'll never see another nation again added to that horrible club that we started of countries that have nuclear destructive weapons in our repertoire.

As many of you may know, my first chosen career was in the United States Navy, where I served as a submarine officer. At that time, my shipmates and I were ready for combat and prepared to give our lives to defend our nation and its principles. At the same time, we always prayed that our readiness would preserve the peace. I served under two presidents, Harry Truman and Dwight Eisenhower, men who represented different political parties, both of whom had faced their active military responsibilities with honor. They knew the horrors of war. And later as commanders in chief, they exercised restraint and judgment, and they had a clear sense of mission. We had a confidence that our leaders, both military and civilian, would not put our soldiers and sailors in harm's way by initiating wars of choice unless America's vital interests were in danger. We also were sure that these presidents would not mislead us when issues involved our national security.

Well, we are not offering them any payment of money or anything, but we primarily capitalize on their clear determination, their clear desire to have peace. There is no doubt in my mind at all that President Asad, who has been one of the most highly critical leaders of what Sadat did--there's no doubt in my mind that President Asad wants peace with Israel, and there's no doubt in my mind that King Hussein wants peace with Israel. And sometimes it's very difficult for them to communicate directly with Israel. We act as an intermediary there. We meet with those leaders on both sides. Obviously, if there should be a breakthrough in the future, similar to what occurred between Egypt and Israel--let's say, for instance, that if King Hussein said he would like to negotiate directly with Prime Minister Begin, we would support that enthusiastically and offer our good offices to encourage such an interchange. But we don't have any inclination nor ability to dominate anyone nor to require them to take action contrary to what they think is in the best interests of their nation.