On Christmas Eve, during my terrible personal ordeal of the renewed bombing of North Vietnam, which after 12 years of war finally helped to bring America peace with honor, I sat down just before midnight. I wrote out some of my goals for my second term as President. Let me read them to you:

I can only say as I look at this group, as I realize the intelligence that is here, the dedication that you must have to your education and to your Nation, I have a good feeling about the future of this country. I believe in young America because I know young America. I would say that as you go back to your communities, I trust that each of you, whatever you go into, whatever private occupation you happen to decide on, you will reserve a part of your time for some contribution to public service. We need you. The Nation needs you. With the help of a young, vigorous American generation we can meet the great challenges that America has to meet in this last third of a century.

Most Latin American exports now are raw materials and foodstuffs. We are attempting to help the other countries of the hemisphere to stabilize their earnings from these exports, to increase them as time goes on. Increasingly, however, those countries will have to turn more toward manufactured and semimanufactured products for balanced development and major export growth. Thus they need to be assured of access to the expanding markets of the industrialized world. In order to help achieve this, I have determined to take the following major steps: First, to lead a vigorous effort to reduce the nontariff barriers to trade maintained by nearly all industrialized countries against products of particular interest to Latin America and other developing countries. Second, to support increased technical and financial assistance to promote Latin American trade expansion. Third, to support the establishment, within the inter-American system, of regular procedures for advance consultation on trade matters. United States trade policies often have a very heavy impact on our neighbors. It seems only fair that in the more balanced relationship we seek, there should be full consultation within the hemisphere family before decisions affecting its members are taken, and not after. And finally, most important, in world trade forums, I believe it is time to press for a liberal system of generalized trade preferences for all developing countries, including Latin America. We will seek adoption by all of the industrialized nations of a scheme with broad product coverage and with no ceilings on preferential imports. We will seek equal access to industrial markets for all developing countries, so as to eliminate the discrimination against Latin America that now exists in many countries. We will also urge that such a system eliminates the inequitable "reverse preferences" that now discriminate against Western Hemisphere countries.

Real peace will not come from some magic formula that will suddenly and once and for all be "discovered," like the promised land or the holy grail. Real peace is a process — a continuing process for managing and containing conflict between competing nations, competing systems, and competing international ambitions. Peace is not an end to conflict but rather a means of living with conflict, and once established it requires constant attention or it will not survive.

Let me say something before we get off the gay thing. I don't want my views misunderstood. I am the most tolerant person on that of anybody in this shop. They have a problem. They're born that way. You know that. That's all. I think they are. Anyway, my point is, though, when I say they're born that way, the tendency is there.

The central race in the world today is neither an arms race nor a space race. It is the race between man and change. The central question is whether we are to be the master of events, or the pawn of events. If we are to win this race, our first need is to make government governable. When the new administration took office last January, we confronted a set of hard and unpleasant facts. I cite these facts not in a partisan way; they are not the fault of any one administration or of any one party. Rather, they are part of our common experience as a people, the result of an accumulating failure of government over the years to come to grips with a future that soon overtook it. We confronted a legacy of Federal deficits that has added $58 billion to the burden of public debt in the past 10 years. We confronted the fact that State and local governments were being crushed in a fiscal vise, squeezed by rising costs, rising demands for services, exhaustion of revenue sources. We confronted the fact that in the past 5 years the Federal Government alone has spent more than a quarter of a trillion dollars on social programs--over $250 billion. Yet far from solving our problems, these expenditures had reaped a harvest of dissatisfaction, frustration, and bitter division. Never in human history has so much been spent by so many for such a negative result. The cost of the lesson has been high, but we have learned that it is not only what we spend that matters, but how we spend it.

That is why I congratulate the Commander of this organization for what he has been saying for America, not just for the VFW but for America, in speaking for national security and for a just peace, all of those things that we, as Americans, believe in. That is why I congratulate all of these award winners in the Voice of Democracy program in speaking as you have for America for those deepest things that we believe in, at a time when sometimes America seems to be divided, divided about our problems at home and our problems abroad. It is well to be reminded of some very great fundamental principles that we believe in. You have been doing that. We thank you for it. We thank you also for reminding us that American youth has a lot of character, and we depend on you for the future. And now a word about the man who is receiving an award that for only the past half a dozen years has been given on alternate years to a Congressman or to a Senator by the VFW at this dinner.

And then finally, one point that I think is a bit sensitive but perhaps needs to be discussed at a meeting like this: At the present time, this administration, like its predecessor, and as will be the case with its successor, is struggling with the problem of welfare. What do we do about it? What should the level be? Should we have a national standard? Should we raise the standard? And, as I have been looking at the various proposals with regard to welfare that have come across my desk, a thought has come to my mind that I am sure must come to yours: The word "welfare," I think, is, in a sense, an inaccurate term if we are thinking of the welfare of the individual in the broadest sense. Welfare is necessary--necessary when an individual is unable to get a job, necessary when an individual needs help. But when we think about the welfare of this country and the welfare of an individual, in the best sense, that means a job. That is truly in the best interest of the welfare of the Nation and the welfare of every individual, because with that job comes dignity, dignity that cannot come, of course, from being on public welfare, no matter how high we are able to raise it, no matter how much we are able to do. I am not indicating here any intention on the part of this administration not to do what is required and as much as we can do to take care of those who are unable to care for themselves, who cannot find jobs. But I am emphasizing here that when we are speaking of the welfare of an individual, we should not stop in terms of what government can do for him, but we should think in terms of that dignity that can only come from what he does for himself.

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.

Let me put it in historical perspective. When this Nation was founded in 1776-13 colonies, 3 million people, very weak militarily, poor economically--the men who founded this Nation said: "We act not just for ourselves, but for the whole human race." That was a presumptuous thing for them to say then. But some way that Spirit of '76 appealed to all the world. Today the United States of America, because of its power, because of its wealth, because of what we stand for, .does act for the whole human race. And that is the challenge that we face, and that is the challenge that I know that we can meet. I am proud to work with the Governors of the 50 States, Republican and Democrat alike, to see that America deals effectively with its problems at home, so that we can provide the example of leadership which will enable us to meet the challenges of keeping peace and freedom abroad.

We must protect the dollar from the attacks of international money speculators. ... I have directed Secretary Connally to suspend temporarily the convertibility of the American dollar [for gold] ... Let me lay to rest the bugaboo of what is called devaluation. ... Your dollar will be worth just as much tomorrow as it is today.

I leave you gentleman now. You will now write it; you will interpret it; that's your right. But as I leave you I want you to know.... just think how much you're going to be missing. You don't have Nixon to kick around any more, because, gentlemen, this is my last press conference, and I hope that what I have said today will at least make television, radio, the press recognize that they have a right and a responsibility, if they're against a candidate give him the shaft, but also recognize if they give him the shaft, put one lonely reporter on the campaign who'll report what the candidate says now and then. Thank you, gentlemen, and good day.

Nixon: I'm not saying that blacks cannot govern. I'm saying that they had a helluva time. Now that must demonstrate something. Now, having said that, let's look at Latin America. Latin America has had 150 years of trying at it and they don't have much going down there, either. Mexico is a one-party government; Colombia, they trade it off every two years, Venezuela is tipty toe, and the rest are dictatorships, except for [President Salvador] Allende [of Chile], which is a communist dictatorship. Elected but communist.

In summary, the 24 legislative proposals-the major ones--that I have sent to Congress, have also included proposals ranging from an overhaul of foreign aid to the most wide-ranging reform of the postal service in history; from a new program of mass transit aid to new measures for the combatting of narcotics, pornography, and organized crime. Taken together, these measures are sweeping in their implications. I admit, too, they are controversial, as any new programs are. They also represent fundamental new directions in national policy. But to those who say they are controversial, to those who criticize them for what they are, I make this one suggestion: We have been on a road for a long time that is leading us to disaster, and when you are on the wrong road, the thing to do is get off and get onto a new road and a new progress. These programs represent a comprehensive, concerted effort to make Government work, to make it work fairly, to make it responsive, and to gear it to the early anticipation of emerging needs, rather than belated response to crises that could have been avoided.