We have for a long time sold military equipment to Saudi Arabia, one of our closest allies, staunchest friends, and economic partners. This is the fi… - Jimmy Carter

I haven't given up on that hope yet. Of course, a lot of those agencies, as we all know well, are minor commissions and boards and so forth that have been established by statute and you know can be eliminated when the need for them is no longer there. But I have not been unpleasantly surprised, Billy. I had a good bit of experience, as you know, as Governor of Georgia and was familiar with at least a State bureaucracy. And I had heard such horrible stories about the Federal Government that I didn't expect to find a smooth-running, well organized mechanism here in place. So, I wasn't very greatly surprised. I have been pleasantly surprised at the quality of my Cabinet; that there is not a weak person on it, and not a single one that I would want to change if I had the whole choice to do over again. They've worked well together. We have, for the first time in years--I don't know how long--we've got a weekly Cabinet meeting. And any defects that are carrying over in the governmental structure are partially overcome by the close-knit working relationship between the White House staff and the members of the Cabinet. We have established now--almost completed the Department of Energy, which is to some degree a replacement for about 40 other Federal agencies. And our plan for reorganizing the entire structure of the Government is well in place. I've been through this before, for 4 years in Georgia, and I think there's a good parallel there to serve as a guide for me. So to answer your question, I'm not disappointed nor unpleasantly surprised. And what defects are here, we are overcoming them by close relationship among the officials involved.

Spirit is like the wind, in that we can't see it but can see its effects, which are profound.

Of course, all of you know how much I depend on Andy Young. Andy is valuable in more ways than one. Of course, he's a great diplomat. But there was a time, whenever things were going bad with me and my administration and I didn't want my name to be in the headlines--Andy would always take over, and he saved me from a lot of embarrassing attention. Unfortunately, he taught Bert Lance the same thing the last few weeks. I guess Andy and I are back on our own, beginning this week. As a diplomat, however, Andrew Young is always in there fighting and pitching for our country, giving the world and me new ideas. He's just told me tonight about a brilliant political and diplomatic achievement that we now have in progress; I haven't announced it before. As you know, we have a problem in the Mideast. We have a difficult fight on our hands with the Panama Canal Treaty. I'd say we're lucky that 50 percent of the people favor the treaty. And his proposal is that we give the East Bank to Panama--that we keep the West Bank and make it a Palestinian homeland. Andy and I have not yet decided who would be the ruler of this new entity, but Andy tells me that before long, Ian Smith's going to be looking for a new job.