I obviously hoped that everything that I found would make a difference, … It ended up being way behind my wildest dreams. - Jimmy Carter

It is now 8 weeks since I became President. I have brought to office a firm commitment to a more open foreign policy. And I believe that the American people expect me to speak frankly about the policies that we intend to pursue, and it is in that spirit that I speak to you tonight about our own hopes for the future. I see a hopeful world, a world dominated by increasing demands for basic freedoms, for fundamental rights, for higher standards of human existence. We are eager to take part in the shaping of that world. But in seeking such a better world, we are not blind to the reality of disagreement, nor to the persisting dangers that confront us all. Every headline reminds us of bitter divisions, of national hostilities, of territorial conflicts, of ideological competition. In the Middle East, peace is a quarter of a century overdue. A gathering racial conflict threatens southern Africa; new tensions are rising in the Horn of Africa. Disputes in the eastern Mediterranean remain to be resolved. Perhaps even more ominous is the staggering arms race. The Soviet Union and the United States have accumulated thousands of nuclear weapons. Our two nations now have five times more missile warheads today than we had just 8 years ago. But we are not five times more secure. On the contrary, the arms race has only increased the risk of conflict.

The difficulty in addressing this many major proposals from me and my administration is very difficult for them to assimilate. It's almost as bad in the Senate, in the Finance Committee, where they handle most of the same questions. But we're determined to proceed expeditiously, and Joe Califano, Ray Marshall, Mike Blumenthal, Charlie Schultze, Bert Lance, and others are doing an extraordinarily good job so far in putting together an analysis of what we have and recommending what we ought to have in the future. We've also had good response from the Governors and local administrators in trying to give us advice on how administration of the program could be improved. I would like to ask Joe Califano now to describe to you in more detail what we will do specifically between now and the first week in August and to answer your questions about the principles that I have outlined this afternoon. Secretary Califano. I'd like for Joe also to show you what books and all they've presented to me. I can't claim that I've read them all.

Well, we've tried to make this a joint, voluntary effort on the part of government, business, and labor, so that there could be a self-imposed restraint on escalating wages and prices. Here again, I'm not in favor .of wage and price controls, either voluntary or mandatory, and the degree to which labor and business will cooperate is really up to them. I think the first step has already been taken, and that is to draft the proposal in writing and present it to the leaders in business and labor. The second step has been taken, that is, my public espousal of it in the State of the Union message. The third step is now under way, whereby, as decisions are made to increase prices and to demand wage increases, they measure the average increases of the last 2 years and try to make sure that the 1978 increases are at least less than they have had average in the last 2 years. In most cases, a patriotic motivation and one to assuage or to please the public will have at least as much or more effect than any jawboning or pressure from us. We'll offer the good service of the Council on Wage and Price Stability to assess the inflationary impact of proposals. We're not requiring, for instance-don't have any inclination nor authority to require—that labor unions propose in advance to us the demands that they'll make for fringe benefits, health programs, or for wages, but we just hope that it'll create a tone in the country of generally dampening the inflationary impact. We have now an underlying inflation rate of about 6 or 6 1/2 percent. So, that's as far as we are inclined to go. And I've met around this table with a fairly large number of the top business men and women in this country, and their response was favorable. I've had a luncheon last week with President Meany. He expressed some concern about the point that I just raised to you, that they can't submit ahead of time all of the labor union negotiating demands. We don't ask for that. But we hope that in Government, we can also set an example. But it's a strictly voluntary program that I think can work with the right sort of spirit and tone. If—the last thing I'll say about it is this—if we tried to be too intrusive in the private sector from the Government, I think there would be an adverse reaction, and the whole thing would fail. So, the degree of voluntary compliance in self-initiated compliance is the measure of whether it'll be successful. There's no way to answer your question specifically, because it's kind of an ephemeral thing, but I think it can be the source of tangible benefits.