Let me briefly review the record of our efforts to end the war in Vietnam through negotiations. We were told repeatedly in the past that our adversaries would negotiate seriously if only we stopped the bombing of North Vietnam; if only we began withdrawing our forces from South Vietnam; if only we dealt with the National Liberation Front as one of the parties to the negotiations; if only we would agree in principle to removal of all of our forces from Vietnam. We have taken all these steps. The United States, over a year and a half ago, stopped all bombing of North Vietnam. Long ago we agreed to negotiate with the National Liberation Front as one of the parties. We have already withdrawn 115,500 American troops. Tonight I have announced a decision to reduce American force levels by a quarter of a million men from what they were 15 months ago. We have offered repeatedly to withdraw all of our troops if the North Vietnamese would withdraw theirs. We have taken risks for peace that every fair and objective man can readily recognize. And still there is no progress at the negotiating table. It is Hanoi and Hanoi alone that stands today blocking the path to a just peace for all the peoples of Southeast Asia.

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Some critics call ours an "immoral" society because they disagree with its policies, or they refuse to obey its laws because they claim that those laws have no moral basis. Yet the structure of our laws has rested from the beginning on a foundation of moral purpose. That moral purpose embodies what is, above all, a deeply humane set of values--rooted in a profound respect for the individual, for the integrity of his person, for the dignity of his humanity. At first glance, there is something homely and unexciting about basic values as we have long believed in them. And we feel apologetic about espousing them; even the profoundest truths become cliches with repetition. But these truths can be like sleeping giants: slow to rouse, but magnificent in their strength. So today let us look at some of those values--so familiar now, and yet once so revolutionary in America and in the world: liberty, recognizing that liberties can only exist in balance, with the liberty of each stopping at that point at which it would infringe the liberty of another; freedom of conscience, meaning that each person has the freedom of his own conscience, and therefore none has the right to dictate the conscience of his neighbor; justice, recognizing that true justice is impartial and that no man can be judge in his own cause; human dignity, a dignity that inspires pride, is rooted in self-reliance, and provides the satisfaction of being a useful and respected member of the community; concern, concern for the disadvantaged and dispossessed, but a concern that neither panders nor patronizes; the right to participate in public decisions, which carries with it the duty to abide by those decisions when reached, recognizing that no one can have his own way all the time; human fulfillment, in the sense not of unlimited license, but of maximum opportunity; the right to grow, to reach upward, to be all that we can become, in a system that rewards enterprise, encourages innovation, and honors excellence.

In speaking of that work, I naturally think somewhat in personal terms of the fact that not only is the Chief Justice concluding almost 16 years in his present position, but that today he concludes 52 years of public service to local, State, and national government--as District Attorney in Alameda County, as Attorney General of the State of California, as Governor of the State of California, the only three-term Governor in the history of that State, as Chief Justice of the United States of America. The Nation is grateful for that service. I am also reminded of the fact that the Chief Justice has established a record here in this Court which will be characterized in many ways. In view of the historical allusion 'that was made in the opinions just read, may I be permitted an historical allusion? Will Rogers, in commenting upon one of the predecessors of the Chief Justice, Chief Justice William Howard Taft, said that "It is great to be great. It is greater to be human." I think that comment could well apply to the Chief Justice as we look at his 52 years of service. One who has held high office in this Nation, but one who, in holding that office, always had the humanity which was all-encompassing, the dedication to his family--his personal family, to the great American family, to the family of man. The Nation is grateful for that example of humanity which the Chief Justice has given to us and to the world. But as we consider this moment, we also think of the transition which will shortly take place. We think of what it means to America, what it means to our institutions.

That's what we have and that's what we owe. It isn't very much but Pat and I have the satisfaction that every dime that we've got is honestly ours. I should say this — that Pat doesn't have a mink coat. But she does have a respectable Republican cloth coat. And I always tell her that she'd look good in anything. One other thing I probably should tell you because if we don't they'll probably be saying this about me too, we did get something — a gift — after the election. A man down in Texas heard Pat on the radio mention the fact that our two youngsters would like to have a dog. And, believe it or not, the day before we left on this campaign trip we got a message from Union Station in Baltimore saying they had a package for us. We went down to get it. You know what it was. It was a little cocker spaniel dog in a crate that he'd sent all the way from Texas. Black and white spotted. And our little girl — Tricia, the 6-year old — named it Checkers. And you know, the kids, like all kids, love the dog and I just want to say this right now, that regardless of what they say about it, we're gonna keep it.

If I could paraphrase Winston Churchill, I cannot tell you tonight that in finding a solution to the problem of peace abroad and peace at home, and restoration of respect for law, and stopping inflation, that we had reached the point where we could say that it was the beginning of the end of those problems, but I can say that we have reached the point that it is the end of the beginning. We have had the opportunity--an opportunity that we think we have used well--to get control of this Government, of the vast administrative machinery; to develop the plans and the programs over these past 3½ months which will enable us to make progress on these issues.

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I speak somewhat with humility whenever I address a group of Governors. If you will permit a personal reference at the outset, as many of you are aware, I have run for many offices in my political career. Twenty-three years ago I ran for the House and 4 years later for the Senate, and then for Vice President and then for President, and then for Governor and then for President. The only office that I have sought and have never won is that of Governor, so, therefore, I respect the Governors who are here tonight. To show that respect, as a demonstration of it, we have in our administration not only the Vice President, who served as the Governor of Maryland, but three other members of the Cabinet, who hold their respective posts with great distinction. I suppose that one of the reasons this administration feels so strongly about the relationships between the Federal Government and the various States, the necessity to have a new relationship to which I will refer tonight, is that we have that strong representation, the strong voice of those who have served as Governors and who, therefore, know what the problems are.

Now, I think Ev Dirksen and Jerry Ford have well described the great issues that brought us here. There are really three that stand out above all the others, the ones that stood out during the election campaign, and the ones that are on the minds and in the hearts of every person in this audience. The first is peace, the desire to have the kind of a peace that will give us a chance not only to end the war in which we presently are engaged, but a chance to avoid other wars of that type, or any type, in the years ahead. So that goal, the goal of peace--the American people who have not known peace for 4 years--is one that they want the new administration to achieve. The second goal is the goal closely related to the problem of peace abroad, and that is the problem of peace at home. The American people want to stop the rise in crime, as Ev Dirksen and Jerry Ford indicated, and they want to restore respect for law in this country. That was the second great issue of the last campaign. Then the third goal that the American people want achieved by their new administration is to stop the rise in taxes and the rise in prices, and to have the orderly progress, prosperity without inflation, that the American people are entitled to. Now there are other issues, of course, local issues and some national. But these are the three great issues that seemed to be on the minds of most of the people during the campaign, and from my mail and from my discussions with Congressmen and Senators, these are the issues that the American people are going to judge the new administration by.

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As we stand here on this 25th anniversary meeting of the Inter American Press Association, I should like to be permitted some personal comments before I then deliver my prepared remarks to you. I have learned that this is the first occasion in which the remarks of the President of any one of the American nations has been carried and is being carried live by Telstar to all the nations in the hemisphere. And we are proud that it is before the Inter American Press Association. I am sure that those of you, and I know that most of you here are members and publishers of the newspaper profession, will not be jealous if this is on television tonight.

Tonight I offer no grandiose promises and no panaceas. I do offer action. The actions I propose represent a new approach. They are based on five principles: First, a firm commitment to the inter-American system, to the compacts which bind us in that system--as exemplified by the Organization of American States and by the principles so nobly set forth in its charter. Second, respect for national identity and national dignity, in a partnership in which rights and responsibilities are shared by a community of independent states. Third, a firm commitment to continued United States assistance for hemispheric development. Fourth, a belief that the principal future pattern of this assistance must be U.S. support for Latin American initiatives, and that this can best be achieved on a multilateral basis within the inter-American system. Finally a dedication to improving the quality of life in this new world of ours, to making people the center of our concerns, and to helping meet their economic, social, and human needs.

I have been trying to think of something that I could pick out as a mistake, you know, so that we could do better next time. But I found only one thing: I found on one of my schedules---I don't know who happened to prepare this, but nevertheless, the schedule said, with regard to the first dinner, the dinner that President de Gaulle was the host--the second one, as you know, was in Ambassador Shriver's residence, and I was the host there--but at the first dinner where he was the host, he was supposed to make a toast and I was supposed to prepare one to him. On my schedule it said: "President Nixon will speak for 10 minutes and then his speech will be translated into English." I knew I had troubles in communicating, but not that much. But whether it was my French or English or whatever the case might be, that was the only thing I could find--and we need to have a little humor in a trip. I think it was put in deliberately for that very purpose. But could I go one step further? Also, in this room are people who have dedicated their lives to the service of the Government of the United States, some in the Foreign Service and some in other branches of the service. You have been in this post; you have been in many others.

Listen to Professor Peter Drucker analyze the problem of government today: "There is mounting evidence that government is big rather than strong; that it is fat and flabby rather than powerful; that it costs a great deal but does not achieve much .... Indeed, government is sick--and just at the time when we need a strong, healthy, and vigorous government." The problem has not been a lack of good intentions, and not merely a lack of money. Methods inherited from the thirties proved to be out of date in the sixties. Structures put together in the thirties broke down under the load of the sixties. Overcentralized, over-bureaucratized, the Federal Government became unresponsive as well as inefficient. In their struggle to keep up, States and localities found the going increasingly difficult. In the space of only 10 years, State and local expenditures rose by two and a half times---from $44 billion in 1958 to $108 billion in 1968. States alone have had to seek more than 200 tax increases in the past 8 years. You know--you as Governors--and I know, that simply piling tax on tax is not the long range solution to the problems we face together. We have to devise a new way to make our revenue system meet the needs of the seventies. We have to put the money where the problems are, and we have to get a dollar's worth of return for a dollar spent. Our new strategy for the seventies begins with the reform of government: overhauling its structure; pruning out those programs that have failed or that have outlived their time; ensuring that its delivery systems actually deliver the intended services to the intended beneficiaries; gearing its programs to the concept of social investment; focusing its activities not only on tomorrow, but on the day after tomorrow. This must be a cooperative venture among governments at all levels, because it centers on what I have called the "New Federalism"--in which power, funds, and authority are channeled increasingly to those governments that are closest to the people. The essence of the New Federalism is to help regain control of our national destiny by returning a greater share of control to State and local governments and to the people. This in turn requires constant attention to raising the quality of government at all levels.