With the possible exception of my two predecessors, I know better than anyone how complicated and intransigent are some of the foreign policy questio… - Jimmy Carter

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.

Another thing that occurs is for a family that stays intact when the father shifts from a State where his family gets welfare assistance to one where he doesn't get many of the programs to aid him and his family, for instance, a father--and this happens to be Wisconsin--who is working full time at the minimum wage, after he pays his taxes and draws tax credits for earned income and receives food stamps, has an income of $5,691, working full time. If that father quit his full-time job and took a half-time job at the same wage scale, minimum wage, his income would jump almost $3,000, a little more than $3,000--$1,300 to $6,940. This is another defect in the hodgepodge welfare system that runs counter to the basic commitment of American people that work on a full-time basis--for those who are able to work--is beneficial, ought to be beneficial to a family. Another thing that happens in the welfare system is that those who are working and receiving benefits, if their income should increase, either to more hours per week, or to a higher wage scale, is quite often counterproductive, and it doesn't take a working person, adult, long to figure out that an increased effort pays no dividends.' For instance, for a family head who again is earning the minimum wage, if they got an increase in income of $100, they would lose--this is kind of an average for the whole Nation--they would lose $66.67 in AFDC payments! The earned income tax credit--they would lose $10; food stamps--they would lose $9.90; housing assistance, where that is paid, lose $8.25. So, they would lose, out of the $100 increase in check, salary, $94.82, which means that they would have a net reward of only $5 out of an increase in earnings of $100. So, you can see there's very little incentive to work your way off welfare. I might point out that the legislative leaders, particularly Congressman Ullman and Senator Long, have been through these proposals with us the last time this morning. And this is going to require a very close working relationship with the committees involved. It's one of those long-standing needs in the Federal Government that has not yet been addressed, and comprehensive welfare reform is long overdue. I think we have an excellent chance to meet all the principles and goals that we've described here. We will meet the time schedule to present to the Congress the complete legislative package by the first part of August.

Seven years ago, when Walter Reuther's life was so tragically cut short, there were predictions that this union would turn inward and would abandon its role as defender of social justice. Leonard Woodcock showed how wrong these predictions were. He's left his mark of support for the poor and the oppressed as clearly as for his own members at the bargaining table. Recently, as you know, I asked him to undertake an extremely sensitive assignment in Vietnam. Leonard Woodcock did a superb job. And although he is retiring as president of this international union, he will continue to serve his country in a new, international role. I will soon submit his name to the Senate to be Chief of the U.S. Liaison Office in China, with the rank of Ambassador. I don't believe anyone in the world who's familiar with international relations would doubt the importance of this assignment. Now some people may wonder why I'm sending a labor leader instead of a professional diplomat to handle such important negotiations. But I think there are some executives at Ford and General Motors and Chrysler and American Motors who might be able to answer that question very well. We want a tough negotiator. We want someone who understands human sensitivities. We want someone who has the personal integrity to build up trust where doubt now exists. And I know that Leonard Woodcock will fill this role as competently and with as much grace as he has the important job of being president of the UAW. I have complete confidence in him. And if he'll just help me with a few sensitive things in the Congress, I'm going to even send a translator to China with him to help him out with the language.