First of all, let me say that I'm very grateful for a chance to come back to Detroit. I was here the first time as Governor in 1973 and then came back again as Governor in 1974. Then in 1975 I came back several times during the campaign and not--well, more than once in 1976. This is a regional meeting, extending in many directions from Detroit--suburbs and urban areas--with representatives here who bring to this panel table a wide range of interests and also experience and also advice for me. The purpose of the meeting is to make sure that I, as President of our great country, am able to learn in a human way about the special needs of people who have quite often been most deprived, most alienated from the sometimes distant Government in Washington, and to see from a personal perspective how well-meaning programs that are poorly administered don't serve the needs of those who need. the services most and sometimes how Presidents and Members of Congress, Governors and even mayors overlook opportunities for providing a better life for our people. I'm very proud of Detroit. This city has come a long way. Two years ago the unemployment rate here when I came was about 25 percent--23.4 percent. This past month it was down about 8 or 9 percent, which is still too high. But to have that drastic a reduction in unemployment is a very great credit to those who serve you so well. I was living in Atlanta as Governor, and Detroit was known as the murder capital of the Nation. In the last 2 years alone, with the good work of your mayor and with close cooperation from officials in the suburban areas, the State government, and particularly the police, the murder rate has been reduced 64 percent. And the crime rate in Detroit in the last year has dropped 21 percent--the greatest reduction in crime of any major city in the whole country. So, these achievements are notable, but we're here today not to brag on one another but to point out how we can make our people have an even better life. The format for this meeting has already been described to you, I'm sure, but I will call on each member of the panel just to comment briefly on your own background and then bring up an issue that you'd like to .discuss with me. I don't claim to know all the answers. But I think in this general discussion that we'll have, I think all of us are quite relaxed at this point. This will probably take about an hour. I think many of the issues that have been on the minds of the audience who will later participate will have been answered. But then we'll turn to the audience members, who are not around the table, for additional questions. I want you to know that, again, I'm here as a student, first of all, to learn how I can be a better President and, secondly, to let you understand what the present and future services might be, coming from your Federal Government. I'd like to call now on Mr. Lawrence Hall to make a brief comment and perhaps ask a question, and then we'll go around the table. Lawrence, it's good to have you here.

The last annual convention I attended, I went as a guest. And I heard, as the main speaker of the final banquet evening, Eleanor Holmes Norton give a moving speech about the ties that bind families together and how the deprivations of poverty and the lack of an ability of primarily black males to be proud of themselves justifiably was a disruptive influence on the family structure. It was a moving speech. And now, Eleanor Holmes Norton is in Washington, here with me, trying to bring together the thrust of the Federal Government to ensure equal opportunity in employment. And she'll be part of your program this year.

All of us have heard about the large oil fields on Alaska's North Slope. In a few years, when the North Slope is producing fully, its total output will be just about equal to 2 years' increase in our own Nation's energy demand. Each new inventory of world oil reserves has been more disturbing than the last. World oil production can probably keep going up for another 6 or 8 years. But sometime in the 1980's, it can't go up any more. Demand will overtake production. We have no choice about that. But we do have a choice about how we will spend the next few years. Each American uses the energy equivalent of 60 barrels of oil per person each year. Ours is the most wasteful nation on Earth. We waste more energy than we import. With about the same standard of living, we use twice as much energy per person as do other countries like Germany, Japan, and Sweden. One choice, of course, is to continue doing what we've been doing before. We can drift along for a few more years. Our consumption of oil would keep going up every year. Our cars would continue to be too large and inefficient. Three-quarters of them would carry only one person--the driver--while our public transportation system continues to decline. We can delay insulating our homes, and they will continue to lose about 50 percent of their heat in waste. We can continue using scarce oil and natural gas to generate electricity and continue wasting two-thirds of their fuel value in the process.

I've obviously been concerned recently about the Bert Lance case, and I've not let it interfere with my own functions. I don't think Bert has let it interfere with his functions as the Director of the Office of Management and Budget. This is an agency with which I'm most intimately involved, personally, on a multiple basis every day. And because of my own engineering background and my habits acquired while I was Governor, I set very specific and rigid time schedules for the accomplishment of each component part of a major undertaking. And I can assure you that there has been absolutely zero slippage in the Office of Management and Budget because of this series of allegations that are now being answered by Bert Lance to the Senate--I hope, successfully. We've initiated this year--and this is the last point I'll make--a brand new budgeting system that I used in Georgia, called zero-based 'budgeting. It's a massive undertaking for a bureaucracy of our size to completely change its mechanism by which next year's budget will be prepared. But the fiscal year '79 budget will be prepared in its entirety using the zero-based budgeting technique, where you don't make any assumptions that present programs or expenditures are sacred. You don't just deal with the new additions next year for the budget considerations, but you start from zero and analyze the entire appropriation of funds. The reorganization effort is on schedule, and I think by the end of the 3-year period that's been given me by the Congress, we will complete it to the satisfaction of the people of our country. I'll be glad now to answer any questions that you might have.

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I wanted to mention tonight especially those two among many subjects that fall on my shoulders--agriculture and energy. The tests of political strength are severe; the responsibilities are great; the complexities are very difficult; the questions are hard to answer. But what gives me a sense of assurance and confidence is the degree with which I am close to you. When I base my opinion and my decision and my efforts on what I know you feel and what I know that you want, to that degree I feel that I represent you and our Nation well. I have a feeling that we are making good progress in correcting some of the deep concerns that we felt a year, 2 years, 3 years ago. The spirit of our country had been damaged severely by the Vietnam war. It had been damaged severely by the Watergate revelations, by the CIA investigations. There was a sense of concern about what our Nation stood for.

Today, I want to talk to you briefly about some domestic problems which prey on my mind and rest on my shoulders as your President. The domestic problems which we do face as Americans are difficult, indeed, but we have the courage and the ingenuity and the greatness of spirit to meet these challenges. I believe that we can build an America in which our day-to-day practices live up to our democratic ideals, in which the family life, mine and yours, is strong and stable, in which the neighborhoods of our cities are vital and safe, in which work is available and is justly rewarded, in which opportunity is not limited by color or sex or religion or economic or educational background, in which there is schooling and employment for the young and dignity and security for the old. We must work together to control inflation and to get our economy moving again. We must come to terms with the growing shortage of energy which, if ignored, will gravely damage the very fabric of our society. We must safeguard the integrity of our social security system. We must totally reform our tax and our welfare systems. We must ensure the health of the American people. And we must develop a government which is open enough to earn the trust and support of the people in addressing these and other crucial issues, and efficient enough and competent enough to ensure that our efforts will bear fruit.

Every day in the United States, seventeen children are killed by gunfire. That’s about 6,000 children each year who are killed by guns, as compared, for example, with about 3,000 a year who died at the height of the polio epidemic of the 1950s. We rose up as a society to fight against polio. Why do we not act more forcefully to halt today’s even greater scourge?

I never endorsed and I would be very cautious about endorsing the use of the coal slurry concept of transportation when water at the origin was scarce. That would not be my highest priority for use of water. Obviously, the use of water for drinking purposes, human use, and for agricultural purposes would come first. This is a matter that hasn't yet been proposed, so far as I know, in any tangible fashion for the more arid regions of our country. I did support the right of eminent domain in the future if the local courts should decide that it was necessary. In my opinion, that is important because some of the other competing forms of transportation--say, for instance, the railroad--could permanently block a necessary coal slurry line just to prohibit competition. But I don't favor the escalation of water for coal slurry use above those purposes that I've described to you.

I'd like to outline very briefly for you, in the time I have available, some of the achievements already. But I want to emphasize again, I'm not bragging about it because we recognize, as does Vernon Jordan, my friend, that we have a long way to go. We've set as a goal for this year the reduction of the unemployment rate from 8.1 percent, which it was last December, to 7 percent by the end of this year. We've already reached that goal, and we expect it to go on down, perhaps as low as 6.5 percent before the end of the year, with a trend downward that will be maintained. We have also created just a few of the jobs that I have described to you. Of the $4 billion public works bill--the benefits that have not mirrored in the reduction in unemployment that we've already seen; that's still to come because it takes a long time to get these programs going once the Congress approves the measure--of the $4 billion, we last week signed the first contracts for less than one percent of the money that's available. But beginning with this week, we will be approving 1,000 public works contracts per week, and we'll have all $4 billion allocated by September 30 and, for the first time, for the first time, 10 percent of every contract must go to a minority subcontractor or supplier. This can mean $400 million in additional, new income for minority business men and women.

I've been talking a lot about conservation, lately, and efficiency in automobiles. When I got off the plane, I was greeted and rode in one of your finest products--a very large, very black Cadillac limousine. [Laughter] So, I've enjoyed so far my visit, and I'm looking forward to the rest of it and to speak to you. Later, I'll be on a 90-minute call-in television show, and then I'm going to visit some of the farmlands around Fresno. It's no accident that I've chosen the UAW convention to make this speech and to make this appearance. Your union was born in struggle, and you've won many victories. But you've never retreated into complacency or narrow selfishness. The UAW is still fighting, because this union has always understood that it cannot stand alone. And above every other trade union I know in the world, you've always seen that your membership and your leadership were part of a larger society and a larger world. Very few institutions anywhere have been so fortunate as to have the kind of superb leadership that has always been a mark of the UAW. For 31 years, this union has been led by men whose vision and sense of responsibility extended far beyond the walls of Solidarity House--men who have demanded decency and a better life not just for the UAW membership but for all the people. The next president of the UAW has big shoes to fill. I won't predict who's going to win your election tomorrow, although I noticed that Doug Fraser doesn't look too worried.

My own ultimate goal is to eliminate the use or threat of nuclear weapons altogether. And I personally have been pleased in the last few months, at least since the summer, at the constructive attitude of the Soviet Union. We have to be very careful on technicalities and on major strategic elements of the negotiations to protect our own interests. We've got to be sure that we do have an equal or dominant position on all aspects of strategic deterrent. And I believe that we have that posture now, and I want to be sure to maintain it. We've tried to open up a new relationship with Africa. We've been successful, I think, so far. We've got a very good relationship with Latin America. I think that could possibly be wiped out overnight if the Senate fails to ratify the Panama Canal treaties, but I hope and believe that the Senate will ratify these treaties. We've got a good relationship, perhaps better than at any time in recent history, with Canada; strong, constant negotiations on a variety of items with Mexico. And we've, I think, restrengthened our position in Europe. We consult almost constantly with European Community nations and also with our NATO allies on military affairs. Harold Brown has just come back from there--well, I think he's on the way back now. The other aspect of our foreign policy, of course, extends to the Western Pacific. We are now in hard negotiations with the Japanese on trade matters, and I hope that we can resolve those differences. Japan has a very high positive trade balance. We have a very high negative trade balance. The obstacles to selling our goods in Japan are quite difficult to overcome. But Prime Minister Fukuda, I think, is negotiating in good faith. Perhaps we can have some success there. I'll be leaving Washington on the 21st, going down to Plains until the day after Christmas, and then I'll come back and leave almost immediately for a trip, beginning in Poland, that would encompass a visit to Brussels, to France, to Iran, Saudi Arabia, and India. And then I'11 come back home after about a 10-day trip. Perhaps you have some questions. I just briefly sketched a few points to arouse your interest.

This afternoon I have an explanation to make concerning a basic undertaking that we assumed shortly after I became President. I announced that a comprehensive reform of the Nation's welfare system would be one of our first priorities. Under the general leadership of Secretary of HEW Califano, we've worked with other private and Government agencies during the last 3 months to assess the present welfare system and to propose improvements to it. It's much worse than we hand anticipated. And although we've conducted hundreds of meetings around the country, and prepared documents and studies that are quite voluminous--and Joe has a briefcase full of them that he will exhibit in a few minutes--we've found that the complexity of the system demands a detailed analysis through computer models and working with Governors and with congressional leaders as well.