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Box Number Folder Number Document Date Document Type Document Description
20 1 01/18/1969 Letter Letter from Arthur F. Burns to RN RE:
Enclosed report on recommendations for
early action. 1 pg.

20 1 01/18/1969 Report "Recommendations for Early Action or

Consideration: A Report to the President-
Elect" submitted by Arthur F. Burns. Table
of Contents and report pages 1-65. 72 pgs.

Tuesday, September 15, 2009 Page 1 of 1

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 - i ­

RECOIvl}rENDATIONS FOR EARLY ACTION OR CONSIDERATION

Pa.ge
I - ELECTOR~L REFORM
1.
2.


Electoral College
Voting Age • • •
··.... ·..
• ••
•••
•••
·• .• .• 1

3.
4.


Clean Elections ·.. ·..
Congressional Redistricting
••• • ••
• ••
··.... 2

5. District of Columbia Representation • •• · .1. 5

II - GOVERNNENT ORGANIZATION
1.
2.
Reorganization Authority

Hoover-type Col1'.1'ai s s i on

·.. •• •• ••
·..
7

3.
4.
Office of Executive Management • •

Arms Control and Disarmament Agency

·• .••. 10

11

5.
6.
Economic Policy Board

Post Office Department

·..
· ..
•••
· . . · • ••
.. · . . 12

14

7. Educational Activities

8. Health Activities • • •
··....
•••
• ••
·• .• .• ·..
· .
14
. 16

·.. ·.. •• •• •• ·• .• .• 17

9· Internal Revenue Service •• ••• 17

10. A Labor Court •••

III - FEDERAL EXPENDITURES

1.
2.


Revision of Budget for Fiscal 1969 • ••
Contingency Reserve for Fiscal 1969
·.
• ••
.
·.. ·.. 19
19

~
3. Revision of Budget for Fiscal 1970 • • • 20

4.
5.


Revenue Sharing
Grant-in-Aid Programs
· ..
·..
••• •••
·.. • • • 20

21

IV - FEDERAL TAXATION
1. Conunission on Federal Tax Policy 23

-" -'.
2. Income Tax Surcharge
.~ ~ 3.
•••
Business Income Taxation • •
•••
• ••
•••
•••
··.... 23

24

4. Personal Income Taxation • •

5. Excise Taxes .. ••• • ••
•••
•••
··.... ·.. 25 27

V - FEDERAL DEBT

1. Debt Ceiling .. ·.. •••

2, Interest Rate Ceiling on Treasury ISQues
·.. ·.. ··.... 28

28

 - ii ­
Page
VI - FEDERAL CREDIT PROGRAHS
1. Reappraisal of Existing Credit Programs 30

2. Priorities in Credit Programs .• 30

3. Relation of Credit Programs to Over-all

Economic Policy .. 31

4. Coordination of Debt Issues .•. • •• 32

VII - RESOURCES AND ENVIRONMENT

1. Population and Family Planning. • •. 33

2. Oceanography. ••. •. . ••• • ••

• .'. 34
3 . Agricultural Reforms . •• • •. 35

4. Economic Development Assistance Act .• 36

5. Appalachian Development Program ..• ·.. 37

VIII - SCIENCE AND TECHNOLOGY

1. Organizational Changes ••• 40

2.
3.
National Science Foundation •.•
Military Research and Development
··.... · .. 41

43

4.
5.
Supersonic Transport •.. • ••
National Accelerator Laboratory
·· .... ·..43

45

··.... ·.. 47

6. Post-Apollo Space Programs .•. 46

7. Space Boosters ••. ••• • ••

IX - TRANSPORTATION
1. Airport Development
2. Budget for Air-traffic Control •.
·..
··.... •.. 48

48

3. FAA Regulations ••• ... · .. 49

4. Highway Program
5. New Canal in Central America
·.. 49

51

6. Transportation Commission ·.. 52

X - MANPOWER POLICY
1. Modernized Employment Service ••
2. Job Vacancy Data •.. ••• • .•
·.. 54

54

3. Encouragement of Worker Ivligration 55

4. Mexican-American Conference .•. 55

5. Remedial Manpower Programs 56

6. Transition from School to Jobs . 56

7. Minimum 'Vlage Amendments •• • •• 57

8. Farm Workers under Taft-Hartley • .• 58

9· 1'-1orale of Federal Employees 59

10. Disputes Involving Public Employees tt .1 • t 60

11. All-Volunteer Armed Force ••• 60

 - iii - I

Page II

EDUCATION - I
1.
2.
The Federal Role ••.
Uroan Schools ·.. ·.. ·. . 63
66

3. Student-Teacher Corps 68

4. Institute for Educational Future · .. · .. 68

XII - URBAN AFFAIRS

1. Council for Urban Affairs · .. 70

·· .... ··.. ..
2. Office of Economic Opportunity. 71
Voluntary ProGrams . . 72

~: Tax Incentives to Private Efforts ·... 75

5. Human Investment Act •.. 78

6. Community Self-Determination Act · .. 79

7.
8.
Supply of Skilled Construction Horkers
Review of Davis-Bacon Act ••• • .•
·.. 81

82

9· Equal Employment Opportunity Commission ••• 82

XIII - SOCIAL SECURITY AND VETERANS PROGRAMS

1. Cost-of-Living and Other Adjustments • 84

2. Problems of the Aged ••• • •• ••• 85

3. Veterans Programs •• ••• ••• • •• • •• 86

XIV -";'--HEALTH CARE

1.
2.
Med~caid
Medicare
•••
•••
••• ··.... •••
•••
• ••
•••
••• 87

87

3. Hill-Burton Act ·• .• .• • • • ••• •••

•••
••• 88

xv - WELFARE PROGRAMS
1. Need for Critical Review •• • •• ••• ·• ..• • 90

·.. ·• ..• •
2. Food for.the Poor ••• ••• 91

3. Declaratory Applications • ••• 92

XVI - BUSINESS REGULATION

1.
2.
One-bank Holding Companies
Interest Rate Ceilings on Deposits
·.. ·..
3. Occupational Safety. • •• • •• •••
4. Pension and Welfare Disclosure Act ·. . ·• .• .•
XVII - CRIME AND LA 1-1 ENFORCEIvlENT
1. National Law Enforcement Council 98

2.
3.
Crime in the District of Columbia
Bail Reform.. ••• ..~
·.. 101
99

•••
4.
5.
Narcotics Problem..
Obscenity... •••
• ••
• •• •••
·.. ·• •..• ·•• .••• .• 103
102

6.
7.
Unified Correction Service
Organized Crime ••• • •• •••
·.. ··.... ·• .••. 104

105

 - iv ­
Page
XVIII - INTERNATIONAL ECONOHIC RELATIONS
1; U.S. Investin~ and Lending Abroad 107

2. Foreign Aid ... . .. 109

3. Textile Imports ... . .. 111

4. Tariffs and Other Trade Barriers 112

5. Tax on Forei~n Deposits •.. . •. 115

6.
7.
Telecommunications.. • •.
International Space Cooperation.
... 115

116

 - v ­

CROSS REFERENCES

The recommendations discussed in this report are

identified by section and number. For example, the recom~

mendation concerning Excise Taxes is the Sth item in Section

IV (FEDERAL TAXATION) and will be referred to as IV-S.
The recommendations presented in one section are' some­
times also pertinent to other sections. For example, when
you study Section II, which deals with GOVERm·lliNT ORGANIZA­
TION, you may wish to examine also the related items in
other sections, as shown below.

Section See Also Items

II - GOVERNMENT ORGANIZATION VII-2, VII-S, VIII-I,
XX-4, XII-I, XII-2, XII-3,
XVII;";.l,. XVII-6

III - FEDERAL EXPENDITURES V-I, VII-2, VII-S, VIII-2,

VIII-3, VIII-4, VIII-S,

IX-I, IX-2, IX-S, X-I, X-2,

X-II, XI-2, XI-3, XI-4,

XIII-I, XIV-I, XIV-2, XIV-3,

XVI-3, XVII-I, XVII-2, XVII-4

IV - FEDERAL TAXATION 11-9, 111-4, IX-I, XII-4,

~I-S, XII-6, XVII-7, XVIII-5

V - FEDERAL DEBT VI-4

 - vi ­
Section See Also Items

VI - FEDERAL CREDIT PROGRAMS V-2, XVIII-2

VII - RESOURCES AND ENVIRONMENT VIII-4

VIII - SCIENCE AND TECHNOLOGY VII-2, IX-5, X-l, XVI-3,

XVIII-6, XVIII-7

IX - TRANSPORTATION
VIII-4

X - MANPOiVER POLICY
11-10, VII-l, VII-4, VII-5,

XI-2, XII-3, XII-4, XII-5,

XII-7~ XII-8, XII-9, XIII-3,

XVI-3, XVI-4, XVIII-4

XI·- EDUCATION
1I-7, x-6, XII-3, XII-4, XII-5

XII - URBAN AFFAIRS

1II-5, VI-2, VII-l, VII-3,

IX-6, X-l, X-2, X-5, x-6,

XI-2, XI-3, XIII-l, XIV-l,

xrv-2, XV-l, XVII-2, XVII-4

XIII - SOCIAL SECURITY AND

VETERANS PROGRAMS
XIV-l, XIV-2

XIV - HEALTH CARE

11-8

xv - 'VlELFARE PROGRAMS X-3, X-5, X-7, XII-9, XIII-2,

XIV-l

XVI - BUSINESS REGULATION IX-3, x-6, X-7, x-B, XII-8,

XVII-7, XVIII-l, XVIII-3,

XVIII-6

1. Electoral Colle

Experie~ce over the yea~s, and ~ore particularly the

recent election, demonstrates that the present electoral
college system is dangerously inadequate. The country
is definitely-in the mood for electoral reform, and it
'seems hiGhly important that you assume early leadership
in this area.
The provisions of a constitutional amendr.1ent, so de­
sig,..'1ed as to enco;:npass your public expressions on the
subject of electoral college reform, miGht run as follows:
(a) Abolish the office of independent elector.
(b) Retain the present nilluber of electoral votes
for each state.
(c) AI'lard the electoral votes in each state on a
proportional basiS.
(d) ':'he candidat.e vino receives the largest number
of electoral votes, provided that the numoer is
(say) at least 40 per cent of the total elec­
toral vote, will be declared the winner.
(e) In the event that a candidate does not receive
the required percentaGe of the total electoral
vote, a r'I.lDoff election batv/een the t"lO top
candidates would be hel~as quickly as possible
(say, within two weekS).
 - 2 ­

(f) car:.cidc.'.:;c in the re.zulo..r ele:::: tion,

or in cvc:yt of a runoff the l'linner of th&t
vlotA.:Ld ir:':;';";.edia tely be dcsignD..t8d
a:-.ld the present 1m-is of
succession l'JOtA.ld apply from that point on.
In considcrinB the controversial subject of elec­
toral collec;e refo:",;,., it v!ould be hiGhly desirable to
consult 1'li th ConGress::r.e:1 ;'[illiam. McCulloch and Richard
Poff, also wi th Senators Dirksen, Hruska, and l.fundt.

2. Votin~ 11..,:-;e

A consti·tu-ciol1al an:endment, "'hich would requiL"e the

states to extend suf~~age to all those cif age 18 and
above, deserves serious consideration. Your leadership
in behalf 0: such a refo:~ ~ay help to dispel the sense
of frustration that no:·] characterizes so many of our
young people.
H01·;ever, before moving in this direction, you or
tho Attorney General will 'VJant to discuss this question
thoroughly I'll th ConGressional leaders of the Republican
Party. There appears to be limited support for a voting
age amendYaent; among Republican Congressmen.

3. Clean E18Ctio~s

Republican-sp0T-sored Clean Election Legislation was

 - 3 ­

the 90th Con;3:::"es;;;;. EO/lever> it 'i'!o,s never brought to

the House 001'.

The House Republican Leadership> the House Repub­

lican Policy COr.1iii-'(,tee" and un ovcrl:Jhelming maj ori ty of
the Republican mCwbers are corr~itted to this legislation •
. \

It can be anticipated that it will be introduced early

in the session.
It seeDlS important that the Republican bill receive
the support of your Adninistration. Congressman Glenard
Lipscomb (ranking Republican on the House Administration
Corrcr.i ttee) and Senator Chal"'les Goodell (Ttlho was a prin­
cipal sponsor of this legish:.tion when he 1,.las in the
House) should be contacted at the earliest convenient
date.
One possible :point of err:oarrassr::ent is the fact that
a number of Republican Fi~&~ce Co~~ittees were late in
filing their reports unde~ the require~ents of the present
law. This fact has been publicly noted bj the Clerk of
the House and he has forvlZ:.Tded "this inforrr.a tion to the
(Johnson) Attorney General.

4. ,Con~ressional Redistrictin1

Bill was sed by the Ho~~e but was not agreed to by the

f
 - 4 ­

Senate. This bill seek2 to introduce the G:so~~ial 010­

ment of certainty into the p~esently trou81e6 situation.

It would establish temporary criteria ~o DC effective
during the 91st and 92nd Congresses aY1d perr:lanent stan­
dards for the 93rd and su·:,)scquent Congresses.
The per:nanent standards established by this bill are
as fol101'lS:
(a) Each state stall establish by law' a number of
districts equal to the number of authorized
representatives.
(0) Representatives shall be elected only from
districts so established. Existing provisions
for representatives-at-large in multimember
states are elir.linated.
(c) Each district shall be composed of contiguous
territory in as reasonably compact fon~ as the
state finds practicable.
(d) The district vIi th the largest population in a
state shall not exceed by more than 10 per cent
.
the district 1'1'ith the smallest population, as
determined under the most recent decennial census.
~. __ Something in the nature of guidelines for the Courts
should ·oe enacted. A redistricting bill will undoubtedly
.
be introduced a3ain.
Although the redistl~ictinr; problem itlill hardly oe1'i t
 - 5 ­

a hieh priority in your le~islative plans, it would be

"lell to call i i:, to the a.i.-:.tcntion of the Attorney General.

5. District of Colur;.oia Representation

During the past several years, there has been an

increasing demand for some type of Congressional repre­
sentation for the District of Col~~bia. Three general
plans have been advanced:
(a) Grant the District a nonvoting delegate in the
House of Representatives.
(b) Consider the District of Colurnbia the same as
a Congressional District for purposes of re­
presentation. This l'lOUld give the District one
and possibly two Representatives.
(c) Consider the District of Col~bia the same as
a state for purposes of representation. This
"/ould give the District tl'lO Senators and one
and possibly two Representatives.
The IInonvoting delegate ll plan can be handled through
a simple statutory chanse" 1'¥'hile the other two plans
would call for a constitutional amendment. Congressional
hearings on these plans 'dill probably be held in 1969.
In Vie1-1 of the political exei terr.ent surroundinz; t:'"le
Di rict of Colur.~bia problGill, 1 t 't'19Uld be woll to
instruct the Attorney Gene::cal to confer l'lith the le::;1s­
 - 6 ­

16..ti ve 1eo.c8:::"s fro:iI. :'oth t:-:c Judiciary ar.d District Co=:.­

t1i ttees and also i-Ii tt 2.ppro):"'io.te District of Colu:r.oi&.

officials.
 - 7 ­

1. Reorganization A~thority

The Reor~anization A~t of 19~9 has just expired

'
(D e~elliocr ?1
~_, lCC:::P)
~vo. This 'cac,:!.c la~d gave P:cesident
authority to propose reoreanization plans for Federa~

agen~ies, such plans to go into t autor;:S:.tically

unless vetoed within 60 days by either body of Congress.
The purpose of the ori.ginal act was to pro4'1~ote

efficiency and economy in government, a'nd it has had bi­

partisan support throuGh the years. In the last Congress,
the House voted a two-year extension of the law but the
Senate failed to act.
A special message should be sent promptly to the
Congress requesting renewal of the President's general
reorganization authority; that is, re-enactillent of the
statute that expired in December, 1968.
In a~di tion, the special message should request ne"v
discretionary authority to reorganize the Executive
Office without further referen~e to Congress. At present,
the President does not have forI::lal reorganization powers
for his m'in Exe~utive Office which are comparable to
those of cabinet officers in their separate departments.
 - 3 ­

2. Hoover-type Comr:liss~.on

Your Administration f~cGS n~;.erous and difficult

problems in the ar-::;a of govcrnr;:ent organization. Several
different approaches to rest;r".lcturing of the governrr.ent
may be taken.
(a) There is much to be said for a nevi IIHoover,
C07..rr1ission. 11 v~rious task forces have
repeatedly raised serious questions about the
organizational individual departments and
agencies. The~e is extensive demand in the
Congress for a ne1.'l "Hoover COIT'ill:.ission. II You
also promised to do this.
(b) On the other hand, the Task Force on Organi­
zation of the Executive Branch. argues cogently
that an Advisory Co~~ittee on Government Orga­
nization, made up of distinguished private
citizens and staffed by the Budget Bureau's
Office of Executive Management, would be a
more flexible device, especially since it wot::.ld
be able to attend to ure;ent problems 1'lithout
the long delays inherent in a Single, massive
reorc;anization study. For problcrlls of unusual
complexi ty ~ the Tasl~ Force recoIT'..rnends special
cO;;ir.1issions.
(c) Still another ap9roach has been sugGested by
 - 9 ­

you. Under his pro90s~1, as described i~

tt[tt Y:1crnorar:c.1)JYl, l"eor:~aniz[ltior:. r>roblc:-r:s as

well as ~cny other ~unctions

undefined su~~rvision of the Bureau of the

Hhite Hou.se by
an Assistant to ~~e ?resident. Although this
proposal cannot be liGhtly dismissed, its
potential difficulties need to be recognized.
First, it l"lould involve the Hhi te House in some
operating responsibilities and may therefore
result in an e;;:barrassingly large Hhite House
staff. Second, it carries the danger of
alienating some of YO'-1r r:1ost trusted colleagues
and advisers. Third, it may be publicly chal­
lenged on the ground of over-centralizing
authori ty in an official l'inO h.::.s neither been
elected by the people ~or confirmed by the
Senate. Frank Lindsay, Chairman of the Task
Force on GoverrJ;.e:'1t Grganization, has carefully
revie'i\led the ..:I.sh proposal and he completely
agrees with the opin:.on here expressed.
Cd) AlthOUGh the ?3.sk Force has argued against a
new IIHoover Co:-:.:.:ission II, and l"~r. Ash also ques­
tions its u.so:ulness, it is important to see
 - ::"0 ­

th~t ttc appro~ctcs which

Corr,:;,1 s s i on \I a:;?pro:.:ch. Clearly, a c or;1~ rehE::::1s i ve

study of goverr::I::E::r:tal or;an1zation does not
rule o~t early action based on limited, special
studies. As for t~e Ash proposal, a .
ar..d
candid diDc~sEion with Mr. Ash has indic
that it too can be modified so that it wi be
free from the objections raised in this report.
It is critically icportant that y~u reach an early
decision on the general approach you wish to take to the
many and pressing proble~s of government reorganization.
In making a decision, you should keep in mind that many
Congressmen, both Republicans and Democrats, are in ravor
of a Hoover-type Co~~ission; so that, if you delay a
pronouncement on this subject, the Democrats will probably
introduce such legislation and many Republicans would
feel that they must go along.

3. Office of Executive ~ana8ement

The Bureau of the Budget has long had reSponsibility

for organization and r::anaser::.cnt problems. In l~ec ent
years, hOltJeVer.) its capability for dealin; t'li th ecial
problems has at~o)hied. An Off:ce'of Execu~ive Manage­
ment was established during the past year within the
 - 11 ­

Bureau for t~2 purpose of ~estoring, broade~ins) and

strensthenin[; the I-::.anager:.er:t a::1d prograrn coordination
role, but no head~r this office has yet been appointed.
There i3 ~uch to be said for buildir.; up the capa­
bility o~ the Bureau of the Budget to handle orGa::1izatio~

and ffianaGe~ent problems. This may be acconplished Oif

establishing a secohd deputy directorship in the Bure~u;

by narning this Deputy Director as the head of the Office

of Executive I-iar:agement; and by assic;ning to this Office

the responsibility of revie1'ling, evaluating, and coor­

dinating Federal programs and of making sure that the

executive departnents make effective use of regional

agencies,
, especially in their relation to state and local

governments.
It would appear desirable to carry out this proposal
whether or not you accept Mr. Ash's scheme. In any
event, you ,'rill want to discuss rather promptly the
present proposal with Mr. Ash and with the Budget Director.

~.~
~'\r{~~'
4. Arms Control and Disar~ament Agency

One way in vlhich you could emphasize yo~r gTeao and~~

enduring concern for the establishment and maintenance ~'

AGency, "lhich no:'! h.2..S a very 101':ly stat-.;.s in t::e Fcde:"al

establishr:lcnt, 1','ith :::'1eal pl"'estige.

 - 12 ­

This could be 2CCO~9lished by announcinG that tte

Director of the ~cency is to be civen Cabinet status,
that he 'will beco:::18 <:'-. y;:er:iber at: the National Security
Council, and tha~ he will be expected to report to the
Preside:i:1t and t::e Cabinet on disar:-narc.ent efforts in the
context of the Bovernment 1 s over-all efforts to ac~reve

a durable peace.
A still more dra~atic step might be to ask the
Congress to abso:{'b the Disar::nar::ent Agency in a ne'i! Depart­
ment of Peace. Such a De~artment might absorb other 1
governmental activit;es -- for example, the U.S. Infor­
mation Agency, the Peace Corps, and the Food for Peace
Program. There may be grave difficulties, however, in
persuading the Department of state and the ConGress of
the 'HisGom of the proposal.
Either of the t''10 suggested actions ';'lould be hearten­
ing, particularly to your..g people, both here and abroad.

5. Econo~ic Policy Board

Governmental plarillin6 in the realm of national

security is nOvl coordinated through the National Security
Council. There is a serious need for a corresponding
mecnanisn for coordinatinG the many separate, and not
,

infreQuently conflictins, policies of t~e ~ovGr~~~~tal

de:partr.-.cnts a:::d a;:;e:::cies cO:i:1ce=ned 1'<1 tl'l -econor:.ic natters.

 - 13 ­

It is recon:..r;:enc.::d that you (3ive prompt cor..::: idera­

tioD to t!:e es-c,s,'::llisnment of an 3conor::ic :'?olicy Boa::'Ac.
The leading ccono~ic agencies -- say, the Treasury De­
partr:lent, Commerce DepartYn.ent, Labor Departnent, the
Bureau of the Budget, the Council of Economic Advisers,
perhaps also the Department of Health, Education and
Helfare -- ''lould have a per'T.:".anent place on this Boa:::''''d.
Other departments or azencies (notably the Federal Re­
serve Board) '-lould send representatives when their range
of activi ty was pertinent. The meetings "lould be
scheduled on a regular baGis, say, every other Monday.
The Chairman of .the Council of Economic Advisers could
best serve as the Secretary of the Economic Policy Board.
The President, of course, would preside over this Board.
A Board functioning along these lines "lould not
only facilitate the coordination of economic policies and
the early correction of mistaken policies ; it pl"'obably
would also econo:nize on the President I s time. Hat-lever,
the Economic Policy Board vlould not eliminate the need
for the "troika ll -- that is, for occasional meetings at
vlhich the Secretary of, the Treasury, the Chairm,an of the
Federal Reserve Board, anc:. the Chairrnan of the Council
of Economic Advisers would discuss sensitive financial
.
questions with the Pre~idcnt.

In view of the special role that "CDC Council of

. . -'-,,""­
 - 14 ­

it is recorra"f.ena.cd that you discuss it "li

in the near future.

6. Post Office DeJart~ent

in z"'avor of 11 extEn:;: ion c:? the i;1e:cit principle to post­

masters and rural carriers. II Also, full considGTG.tion
of improvements ir. the nation's postal,service" as re-
conlj':lended by the Corr..'1lission on Postal Organization, 't'Jas
pledged. Then too" in the last Congress, the House
Republican Policy Corrllnittce went on record as favoring
the removal of politics from the Post Office, ",ith rural
carriers and post~asters specifically mentioned.
With the advent of a new Administration, an excellent
opportunity is presented to reorganize the Post Office
Department. A first step- has been taken in the appoint­

ment of a businessman as Postmaster General.

As quickly as possible, discussions should be held

with legislative and party leaders, so that the ramifica­
tions of a businesslike approach to the operation of
the Post Office are clearly understood and appreciated.

7. Educational Acti es

The Task F01~CC on Education -:nakes a; strong plea for

-
 - 15 ­

the reorGanization of the Fedc:c::-l.l :OVG::"~'1~-:;c;r.t! S Gdu­

cational activities, which it asserts are su:fc_

because of lIa multiplicity of
times co~flictine, initiatives fro~ Kany Cifferent
de9art~ents and agencies of the ExecutiVe branch and
from the Congress. II It notes that less tnan a t;-!ir¢i of
total ann~a1 Federal expenditures on education of
approxir;;.ately $12 billion is administered by the Co:-:~-

missioner of Education.
The Task.Force calls attention to various reorgani­
zation possibilities, including creation of an inde­
pendent Departrr.ent of Sducation; but notes that it
"did not feel qualified to pass jud[!;:lsnt on themll or to
decide precisely hoy? much consolidation of Federal ac­
tivities in this area is called for. It definitely
favors, however, an up~radinc of the post of Comr~issioner

of Education, noting tlla t lithe rad", a:ld salary of the

COIrnissionership are z:.OH totally inco:r.r:~enzura te '~'Ii th

the level of responsibility involved. II

The Task Force t s cO::-:;!;1ents on the unccordina ted

pature of Federal educatio:'.al programs have obvious
merit, and early consideration of this matter by a
special cor:l:nission see.ns indicated.
 _ r
- .LO ­

8. Eealth Activities

The Task Force on E2~lth

menda tions for reor:::;ani2:ir.,:::;

to health prosra;:.:s. It a.:.~:::;-:..es f.:Ol~ v.::; c:.:c&~.;ion 0:' a.

have :9ro­
mised to consider)~. and also ';..1::';':;25 c icn 01' ;: Council

can be best considered eiJ.:;i:er by a nCd :IEocver COl':'l';'.1ission II

a
or by/special Corr.mission on the OrGanization of Federal
Health Activities.
The Task Force r;lal\:.es other narr01·:er proposals tr.;.C1 t
could be acted on earlier if the Secretary of az;rees
that they have merit. One of t~ese is a :'ecor:lnendation
that the administrat:'on of I,:edicaid a::J.a Y.caicaTe "oe put
under the Assistant Secretary of Health and Scientific
Affairs, "lho already has line autnori ty over the Pu"olic
Health Service and over-all respcnsibili ~Oi.'" COO!'­

dination of the health functions of Social a::1d

Rehabili ta..tion Service and the Office of Zducation.
You should ask t:J.c Secreta:::-y of ~-G~'T to consideT pro:r~ptly

the merits of this proposal, parti rl~l 'because of

and :-·~edicaid.
 ., "'7
-.J. ­

(
9. Internal ~evenue Service

The Tas:\: Forc e on C: Tax Policy reco~~ends that

you appoint an. lI a d.viso:::."y
,\.,rithin the :es~lts of a study of the
status and ad.ffiinist~ation the Internal Revenue Service.
As to status, the inquiry would. consider whether 'the
Internal Rever.ue Service Silould report directly to the
President" as 1':ell as "lhetner increased autonomy v1i thin
the Treasury Departr;;ent 'Would serve the public interest.
As to adr.1inistration, the inquiry would consider per­
SOT'..nel needs" salary stando. , and procedures respecting
taxpayer cO~91iance.

If you should decide on a hoover-type Commission" it

,.,rould CO!1cern itself cs a ter of course vIi th the
Internal Revenue Service. On the other hand, if there
is to be no nel'! :rEoover Co:-.;!"r;iss ion Il , you ,\,li11 want to
consul t ,'Ii th the Secreta:::y- of the Treasury and perhaps
also with ConGressional leaders on the pro}?osal for a
special stud.y of the Inter::'1al 3.evenue Service. In this
connection" note that the I: advisory cor..ornission" suggested
by the Task Fo::.."ce 1'lOUld not necessarily call for legis­

lation.

10. A~abor Court

There is a grov:ir.g ai'Ji1renecs that a corr;plete reor­

 -
,..... 0:, ­

ganization of the labor a~d ~hc reethod by which

they are enforced may be n2ccs3ary. All teo often,
CO:1!5ressior:.al action hilS be:::en m.:.llified t:;lrough aGency
or depart~cntal inter~

Certainly, labor-:':lana:c::-.er:t lC::';:3 s:~ould be inter­

preted and applied by persons of judicial tempera~ent

acting in an atmosphere::: that is we:::ll insulated froe poli­

tical and special interest pressures. The concept is
thus being advanced that a labor court should have juris­
diction over all facets of the labor-uanagement field.
Senator Griffin and seven other Senators, including
Senator Percy, have introdt:.ced a bill that vJOuld abolish
the National Labor Relations Boal~d l1nd establish in its
place a l5-jud~e U.S. Labor Court similar in many res­
pects to the U.S. Tax Court. Sh1ilarly, Senator SY:la.tl1ers
has introd:uced a '::Iill that 1'1O:.:ld establish aU. S. Court
of Labor-l·:anaGeme::;t Relations l:ii th jurisdiction over
labor disputes which result i:::J.~','ork stoppaGes that ad­
versely affect the public int8rest of t~e Nation.
The general cO:1.cept 0:: a La:::or Court is intrig'..lir..g,
but this concept also 'rai~es Questions concern~nG the
machinery needed for inv2stizato::'7 1'lork, prose~ution,

and so on. Prelir:1inary discussio:'ls of this General con­

copt should '00 hold o.t ':;;'~1 ourly d:1tc botHC011 the Secl'ota.ry
of Labor and the legislative leaders, including Senator
Griffin.
 - 19 ­

,
......

'\'l:.th:'n the fi:~st I':cek or two of your Administ~ation,

s~e an orde~ to all department

and agency heads requestinc them:
(a) to determine, afte:r consultation with the
Budget Di:rector, which programs "V1i thin their
ju:risdic tion merit a 101'1 priori ty status;
(0) to reduce o:r restrain at once'the expenditures
on low priority p:rograms in this fiscal year
(that is, betvleen January and June 30, 1969).
The BudGet Director should be requested to prepare
a strong directive along these lines for your signature.
This action is needed in order to bring government
expenditu:res unde:r st:ricter cont:rol. It is also desi:rable
to lay a ~oundation for a late:r reduction or elimination
of the income. tax surcha:rge -- if that should be decided upon.

2. Contin'~ency 2i.es erve fOl" Fiscal 1969

The Revenue and Expenditure Control Ac~ of 1968

established a ceiling on expenditures fo:r fiscal 1969,
subject to exe~ption for certain cateGories of expenditures.
You sto~ld request the Budget Directo:r to detenline
at once VlnC":;;-.e:r existinG plo.~1s p:-ovide reasonable assurance
 - 20 ­

of coming to the end of f~scal 1969 without having to

request relief fro~ the leGislative expenditure ceiling.
,~-

If such assurance does not exist, the Bureau should sub­

mit to you, by a very early date, a plan of further
restraints in orde: to provide a margin for possible
slippage of actual expenditures beyond stipulated t~rgets.

Needless to say, it Nould be embarrassing to ask

the Congress to lift the ceiling.

3. Revision of 3udget for Fiscal 1970

There is a strong case, both political and finan­

cial, for revising thoroughly the'budget that President
Johnson will submit before leaving office.
You should hold a meeting rather pror:1ptly i'li th the
Budget Director (and perhaps others) to decide whether
to reformulate' the entire Johnson budget for fiscal 1970.
If a more or less comprehensive revision of the budGet
is decided upon, it would probably have to be presented
to Congress no later than April 1, 1969.

4. Revenue Sharin~

A good deal of CC~3rcssional support has developed

for the proposal that the Federal,gover~~ent share a
portion of the revenues raised by the inco~e tax with the

I .
 - 21 ­

states and localities. This proposal, of course, is

popular with governors and mayors.
Vlhatever the merits of any general r~venue-sharing

program may be, a decision should be deferred at this

time because of budgetals constraints.
You should also keep in mind the fact that a
revenue-sharing plan is bound to defer or limit future
reductions of the Federal income tax.

5. Grant-in-Aid Programs

The existing ca tegol~ical grant-in-aid system should

be overhauled to give the states and localities more
latitude in deciding on the specific uses of funds to
achieve the general objectives the Federal government
seeks to promote. The Task Force on Intergovern~ental

Fiscal Relations has made three main proposals to this end:

(a) ConGress should be requested to give the
President ai.l.Jchol~i ty to consolidate existing
grant programs for related functions, subject
to disapproval by either House within a limited
period under the type of procedure used for
reorganizatio~ proposals.

make si~gle applications\for joint fundins of

projects derivinG funds trom s2veral Federal
 - 22 ­

sources.
(c) states and localities should be authorized to
transfer up to a specified pro]ortion of :u~~s

program. of the same Federal age~cy, provided

the 'total amount of any Federal program does
not exceed its authorized size.
You should ask the Budget Director and the Director
of the Council 'for Urban Affairs to give you, by an early
date, their reaction to these proposals.
 - 23 ­

IV - FEDER~L TAX~TION

1. Corrx:issio::1 cn Federal Tax Policy

A thorou:;h reexa::nination of the Federal tax sys.l.;em

is lon:; overdue.
The TaskForce on Federal Tax Policy recommends that
the new Administration request the Congress to establish
a COlll.'"rlission on Federal Tax Policy, which would address
itself to the task of forrrllilating recommendations for a
Federal tax system that "would be simpler, fairer, and
more conducive to the econo:nic advancement of all A::nericans. II

The proposal is to request the Congress to establish

a broadly based Corr~ission, including members qf the
legislative and executive branches of the government.
Since at least a year 'vould be required for the Com­
mission's study, prompt action on this proposal is essen­
tial if basic tax legislation is to be attempted in 1970.
You should discuss the proposed Commission 'Hi th the
Secretary of the Treasury and with Congressman v.Jilbur
Mills at the earliest opporturiity~

2. Income, Tax Surcharge

Under present :nw, the 10 per cent surcharge on

income tax expil~es 0::1 Jur..e 30, 1969. A decision 'whether
i
\
to extend the surcharge in its present to reduce
I
I
1 --.
 "'"' ~ ~"....-,-, r ...'~
\".. ......,_~ .. '" v v be delayed beyonG cid-
April or ther8~bcuts. Sucject to this cc~str~~n~.) the
decisio~ should ~e delaY2c as lO~6 as possible, so

on (a) the outlool\. for the econor;w.) Co) the state 0-::
the budget, (c) the 'I'rar in Vietnam, and (d) interna­
tional political and financial prospects at large.
Of course) if a decision is ~ade to extend the
surcharge, rather than to reduce or to eli~inate it, the
extension co-,;,ld be merely for a six-r.:ionth period.

3. BUSiness Inco:::.e ':'3.x9.:;;ion

( The Tas:-\. 'S'0:CC6 on ?ec.eral Tax Policy 1.1aS subrai t'ted

various technical 9roposals for changes in business in­
come taxatio11, in -:::e :':'ope that they may be legislated
(or revis ed by ':'reas;;.:::.'y resula tion) during 1969.
One pro::.;ossl calls for t:'le e1i:nination of the I: re­

se:::::-ve- ratio tes't II guide­

si~)lify the de?reciation g~idelines> and reduce the

costs of co:;~pliar:ce and. adL1il"li.stra tiO:l. This change can
be rc.ade cy the Tr,easury d.irectly.
Ano~her pro?osal see~s to liberalize le,sislation J
enacted
~eetins S?eCi~ied tests to elect to be taxed, in effec~J
(
 - 25 ­

¥io:--.:.al

ai:-n to elir:li~1.8. te

abuses by ti~~tenir.3 de~initio~ of c~pital gai~GJ by

revisinJ"; ....:.hc:; t::.:x t:r,cn~..:. of inco;;",c:; froy;;. real est.2..te

investr;;cnt J a:::1d by :revisinz t:le tax rules regarcing the
timing of receipts and deductions.
Some· of the recor:lmended changes, such as the elimi­
nation of the J:reserve-:::,c:tio test':, are clearly desirable
and raise fe~ difficulties. Othe~s are desirable in
principle 01.1';;; :ceq,uire r;;v.ch adc.i tional study, and it is
doubtful ,';hether the Treasury can rLake firm recoY.1...v::.e::-.c.a tions
in time to sec~re legislation in 1969. Em-lever, the soo:'1er
the Treasury turns to tt:e thoughtful pr'oposals of the
Task Force "Che better. YO'.l should ur.::;e the Treasury to
get on at once "li-~t: the job of appraisal &.r:.d draftir:.g.

4. Personal Inco2e ~axation

The Task ?orce on Federal ?iscal Policy recorru~ends

the fol18:':ir:.g chan'::;8s in the personal inco:::e t.::lx:

(a) incl'ease tl:e ri~ini::-.ur;,: ;:;tandard deduction
(b). s1:::.)li::y and 1:':;]e1"a1iz8 yax t::.~eat:-::2:'1t of

c
 - 26 ­

mavin:; exp2j,"'lSC;3 of er;~ployees /

plus
allm'Ja-ole to the The pr090s~1 is to i~creaze

+l.l;e
v. r:ed~'c+iu-""!'
.... '" v_ ._ 7',0
~ S~!")O
T-'~ p:','. u" ~.lrvO
_;;;, c) ne-'"
~ J. e'"""Y''''-'-''
. .l\.1;;."lJ I..!';' 0""
U.

ma ted revenue loss 'resulting fro;;l this pro:Qosal is $350

million for fiscal 1970. This proposal l'lould be advan­
tageous to poor people, many of l<Ihor.:. have been hurt by
inflation. It has considerable merit •.
The I::1ternal .Revenue Service nO':l insists in many
cases on taxing, as inco~e to the e~ployee, the major
portion of the reimburseme:lt of his movins; expenses that
he receives f:ro:'.''... his e::lployel"'. In the interests of an
efficiently ope "ins economy, public policy should
·fa~ilitate ~obility of the work force.
You should promptly info~l the Secreta:ry of the
Treast:.ry of your reactiol'; to p:roposals of the Task
Force concerning the mini2~~ standard deduction and the
liberaliza 0::1 of the Tr.OVi:1g expense allol<Jance. You
should inform hi:n also of your 01'1:1 p:coposa.l for full de­
duction of Cl"'Ug ar:.c. medic8.l expe!1ses on the inco:ne tax
returns of the elderly. These proposals need to be
considered in connection with the rcvisi:,j:'l of
\

L
•

- 27 -"

difficult tec~~ical pro­

ble:-.:;.s, ar~c. yo-..:.. s(;.o~lc. :-::e::::'sly request t:r.e Treasur-j' to
study it.

5. Excise 'l'a:.;:es

AccordinG to present law, the 10 per cent excise

on telephone se1 vice will be automatically reduced to
1

5 per cent on Decenber "31, 1969. Similarly, the 7 per

cent excise on ne'!:l passenger automobiles '\'rill fall to
5 per cent •.
It seems reasona,;)ly clear that the goverrrrl:ent can­
not afford the loss of revenue in fiscal 1970 that 110uld
result from present legislation.
Your reco~~e~c.ations on ~~ese excises should be cade
to the Congress at the sa~e time as your decision on the
inco::-.:"e tax surcharge is t:;."arls:-d tted to the Congress.

(,

 - 28

/"
/

1. Debt Ceilin~

The ceilinr; 0::" J~he S'ec.;;;ral puolic de';)"'.:; at present

is $365 billion. t~ under existinG legislation>
ceilinG "1-:111 auto:;;lG..ti(!ally drop to $358 billion on Jur:.e
30 J 1969> then return on July 1 to $365 billion.
If any revision of the debt ceiling is to be re­
quested of the Congress J it it'lould be advisable to move
very quicklYJ so that the blame can be-placed 'where it
,belongs. The Secretary of the Treasury should be asked
to advise you pro:r,,:9-cly 0:'1 this question.
There is another and fuore fundamental questio~ raised
by the debt ceiling. This year the Federal goverr.:.t-::1.ent
is operatin3 under an expenditure ceiling. The mood of
the Congress appea:."s to be to contL'1ue this practi(!e. If
.. that is done~ the:"e 1'1i11 no longer be a-::;.y reason to have

in goverr~~ental practi~e; and it is probably just as

vlel1 not to raise ti:e Ques on openly this yea:::.

2. Interact Ra Ceilin3 on Treasury Issues

than
:r.aturity ......
-in sed fro~ five years
 - 29 ­

by leCizlatiol"! should ';)e

raised or, '0 r stil~; a~olished.

The ceilinG d02s not hold down the interest cost of

the public debt. ..
0 ·., the cont~ary, it forces the Treasury
to borro~1 oy issuj.ng short-tel~:il securities, and under
recent conditions this has served to raise the cost of
borrm.. . ing. At sent, the market interest rate on long-
term Treasury securities,t'lhile above the 4·~ per cent
ceiling, is beloH the inte:~est rate the Treasury is forced
to pay for its short-ter~ borro~ings.

More i~portar.t still, since the ~reasury has been

unable to isst:..e lon;-ter::il secu:cities in ree e:'1t years> it
has frec;,uently oeen foz-eed to eOr.':e to marl<:.et \'Ji th large
offerinGs to e the debt, and durinG the periods
I'Then the Treasury is in the rr~arket the Fede~al Reserve
authorities cannot very ~'Iell' be expec to tighten credit
conditions as the state of the econo:~ny ::r..ight require.
The frequency of large Treasury debt operations has been
an obstacle to the conduct of a stabilizing moneta~y policy.
The proper timinc of a request to the Conzress for
a revision of the interest ceilins is uncertain. You
should discuss this question at an early date l'lith the
Secretary of the Treasury.

c.
 - 30 ­

1. of C::cdi t _
----------~------------~----

Task Force on Federal C~edit Prograns recoITwends teat a

Cabinet Corr.rai ttee do tl1is.
The COr:'.Ini ttee should consist of the jJirecto!" of the
Bureau of the BudGet (as Chair::.1an), the Secretary of the
Treasury, the Chairr:::.an of the Council of Ec:onomic Advisers,
and the Chair::-rlan of the Federal Res erve 30a!'d.
All of the Federal-c!'edit yrograms should be scru­
tinized by the COr:'~ittee in the light of the princiyles
set forth in the report of the Task Force on Federal
Credit Programs. In yarticular, each agency involved
in administerins a Feceral direct loan or loan guaranty
pr08ra1':1 should be Tequil"ed to docu:rlen-'c the need for its
program in the light of said principles •

2. .;;:P...:r;,...~=.·o
____r_i;.. t;,. .l.;. . ·_e_s_.;.i_n_...::.C_l"_2_Q_' 1._·_t_?_:_··o~.s:rar;ls

The highest priority need fo!" new and existing

Federal loan and loan insurance programs is to meet the

decent housing for the poor, the financi. or'" private

 - 31 ­

water 9011utio~J

To the ex~e~t that loa~ ins~rance pro~ra~s are used)

'£0 t[;'6

extent)

lean pregraras) it ".'ill be all the more necessary to cut

back en Federal lencing proG-rams "There there is no longer
a high prio1 i ty need.
1
You should stress this basic rule
of fiscal prudence ~hen and if you proceed to appoint a
Cabinet Cor:'.l;~i ttee to reappraise the govel"T.r::e!lt I sloan

3. ~elation of Credit Prosr~ms to Ove~-all EccnoEic Policy

In the past t~ere ~as ~requently been poor coordi-

If the Eco~omic Policy Soard

 - 32 ­
/
COi..J.n~il of

~y, the Chai~~an of the F6de~~1

de::::i

the Co~n~il of E~ono~ic Advisers should

be requested to assu:-:le t~"e responsibility of' seeing to
it that the activities of ~he Federal direct loan and
loan GUaranty lH·ogl~a:.ns :".:ee~'} generally in step tli th over­
all econo~ic policy.

4. Coordir.atio:l
--------------------
In t:-J.e past" ne";,! debt issues 0:: :F?ederal cl~edi t

tjout any apparent

coordination ~ith direct G.S. ~reasury financing. '~,Q
O ............

office wi~hin the ~~eazu~: who~e res90nsibility ~ould be

to coordinate all a3en~y borro~in3 and to plan such
borrm'iing in the li:;r:t of

the ~Gcre~ary of the

 -. 33 ­

..­
'\ ;~
v..l.L -

1.

terri~ly seriOU3 but also a terribly nezlected problem.

You may 1':an'~ to t:.ee so::-::ethinc; like the fol101'li:'lg
para~raph in an earls~ a.C:dl--ess:
1I0ne of the ::;reat Question ::narks overhanGing
the last t::'ird of this century is "'IDether rr.ar..l<:.:'nd: s
effol"'"tS t::> enc. priva"t::'on and hunger v;ilJ.. "be defeated

~his Ganser is ~ost

acute in the less dzveloged parts o~ the globaj a~d

I pledge tha'~ ';;~'"lis AC:;:l'inistra tio~ i'rill contim,:e to

expand effo:....ts to give assistance to those goverrr.'!:.ents
that seek our help in developing faffiily-planning
progl~ams. Bt:.t tr:.e p:....obler.1 is :10t confined to foreig...'1
countries. Ar;;.o::.; t:-ris nation I s Q1;'n1 dil;ladvantaged.
groups there are ee:....io\.:.s gaps in the avc,ila"oi1i ty of
family-planning ~cnO'~'r:"edge and assistance. I assure
you that hi prio~ity will be 3iven to the ~atter

A member of t:1e ;'111ite House staff sho1..:.1d be c..":::'Gned

the task of devel:]inSJ with the aie of ap?ropriate
 /
2. /

Late in
effort i~ oc field offers an opportunity
to devel O~) a"c
that could excite .C

much as the Sye.cz has do::;,e.

Besides greater scie::;,':cific knovIledge" t~ere are other
potential benefits: ne1'; sO"J.rces of food, 'U..'1tapped re­
sources of oils and m.inerals" ne'\1 kinds of recl"'eation,
and the possibility of o~er:.ing u~ new fields of technolo­
gical prog:re2s.
Beyond t~is, the:re the question of national
security_ ,Tte Sovi tJr:ic:;., for exa.~.::91e J C02'1ti::U6S to

cations for under~ater warfare. It is vitally important

that we not fall b
T_n -,;;'-'
,ot.:: o'" :. c s

tions on the na The C s-

s just been p~blished, concludes
will contribute to
strengtteni~3 ~oth

Security" calls for

!'Z~ tional
(

 - 35

would a~ou~t to a of the p~esc~t o~tlay on

oceano,s:ra:;hy.
The Co:~::-:!issio~ t,s TC:.?C:""'c '{Till be controversial.
Various departmG~ts a~d ies exp(;ct to express
ffiuch concern over their loss of authority the Co:::.r!lis­
sion's reco~~endations are carried out.
You should Seel<:: advice on tte Cor['~nissicns re~or:::..er:da-

tions f:-:o:::-, t:::e Sec::'etary

-.
'("
Should
you have to c OY:Z:~2n t c./c c.:r.l Co:r4'!lissio:'1 t S

re!)ort, ~ro1",l r.:igr~t cOl'J.fi::.e ~rOU:''''3elf to rcsta"cinz ~Tour

needed~ ar.d that a ~o~e coo~d~~~te~ effort

mis field ~'lill be

T~e Repuolican s in Dcs

Ivfoines J va::cio"..:.s

(a) Develo~=ent of policies that enla

 //

f2::-::.er r S O~:'~JO~~-~~·,.~:::'t,~r ·~O ~-I.a~&se r~::..s o':'~"n (1~:d'1;1""8

I

(b) Revi~e~~zatio~ c: rural Affierica throllch greater

emphasis on v8cational trainin~ a~d on eco~o~ic

incentives for i~dustrial develo]~ent.

(c) ?t1.rsui t of an econor::ic policy 'whicn protects

~t\rf),ericar:. agriculture frof:l unfair foreiGn corr.­
petitior.., 'i'lhile inc:reasing our overseas con:r::o­
dity dollar sales.
(d) Develop~ent of a sound crop ins~rance progran.
(e) Reorganization of the ffianage~ent of the Cos~o-

dity Credit Corporation!s inventory ope:rations.

You shoulo. ask the of Agriculture to
evaluate and assu:-::e leaae ::"8::ip in developi~g thes e 8.nd
other proposals, with a view to possible prese~tation in
a P:residential special ffiessage on agriculture. A pro­
visional da~e for this should be set.

The extension of t~is Act is certain to arouse

considerable cont:roversy.
duplication and waste that
•~.~~
~ -
~ec-.,
v - '- ... g~sO~"_:~~pd
"""'" - _ - _ _ -\~j+'.n.
~ _ v
~·.~4s
_ ... - r~~-~--
_J - 't"...
V ~- ! •

The
c.

 .... -.
and ~

.i.·.. OCiC.l

Cities Le:isJ.C'~

areas and proble=s. ver:. to

nON t:r.e overla:;;s of
nated. ~: cor:.­

fusion are those dealinG ~i~h wa~Gr pollution control

and sewage treat~ent.

As soon as pOSSible, the Sec~etaries of the several

depart::lents involved in ttis program shoule. consult the
leeislative leaders to deter~ine a course of action.

, require ear-
not only as to future funding levels but also as to

for other ne~ reGional unc.ertakings.

for this 9ro;ra~ dirsctly to the PreSident, sO~2~hi~S

that is un:.q:u.a in Fede::'2.1 c..ss::'sta:1.ce effor':Gs., M'

":"C'le ust~a...!...

,rocedure involves a
then ad::,i,
/

the

they do no~ feel is achieved when Federal aid is disbursed

by depart~ents in the for~ of cateGorical grants. The
fact that the Comrnission can exercise broad discretion
in using Federal moneys.. . . means, according to its guberna­

torial supporters, that proGra~ priorities can be set in

greater efficiency in th~ use of funds can be achieved

vii th the .D..ppalachian tecc-.niQue than illhen attemyts at
solving; re3io:o.al proble;.~3 involve diffel~ent Cabinet
departY:le:r..: cs illhose effo:1ts o:tte~: are not pl10perly coo::.:-dina ted.
One signif~car.t featu~e of the Appalachian ?rCsraD

tmms, and cities on a coordinated 02.si8. In pU1Aticular,

available in lar~e numbers, has bean discou::.:-ased. This

has been done by ~eans of an educational thrust ai2ad at

=iddle-size~ s~alle::.:- ce~te::.:-s ~hat traditionally ~3re by­

passed in the move fro~ fan~ to City.
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 - l~O ­

1. za tioYlal Cr:cir: 3

The Tc.s:\. Force on Science aYld 'I\:;chnolcsy ::::ecor.l.rr.e:.".c.s

Federal '~::::lli~entfs scie~ce activities. The objective

is to giVe 3cience and +e~""Y'·olo7-y
v \..,. ........ _.::;,.) " "S"""'_;-us
c.ir; v
H
-!n
_
\"Ico.. 0"ov~'(""\-
<::> c
...........

ment CC::.,,::nsurate \'li th their vi tal role iYl national life;

to pror::~:-~e greater inter-agenc:. coope::::atioD and cross­
·ferti1i:.: ..tion in science acti'... ·..:,ies; and to attract a
la.rger ~:.~mber of senior scie~' _sts and technologists into
governr:.~:lt service.
O::~ of the specific p:' ...;osals nade 'oy the Task Force
is that posts of Assistant ~cretary for Science and
Technology be estab1is!1ed ::..~-:. the Departmel1ts of Interior,
State, Justice, 'f:l.J'D, Agricu::"::;'J.re, and the Post Office ,
and that apPointees be given policy-making and line
authority.
You emphasized the deficiencies of Federal science
policy during the cacipai3:D, arguing tl--:.a t lithe governr;:ent ...
is not really in control of i"vself in this field. II In
vie't'T of your interest and cor;..~itment, you should sc;ek at
a rather early date Dr. DuBrid.::;efs advice cn the various
organiza tional proposals n:ade by the Tas:,: Force.
,
You should also seek Dr. DU3ridsets advice concern­
ing the organizational changes proposed by the Task ForCe

 /
/
on Spcvce. T11e Tasl~ FOT~e :--eco:x~E:::dG t,11B.·t the ac.r:.inis­

be changed to co:::orespond.
to program objectiv~3 :::oather than to :x.ea:-:s of acco::--.­
plishing them, and zt there be a strengthening in tte
coordination of NAS_ and. Departnent of Defe::1se space
prograrflS.

2. NatioYlal Science Fo1.:,2. on

Dr. Lee A. DuBr:_ makes a conpelling plea for

immediate relief to t~- National Science Foundation. Uo
.l.:;. .....

writes as follows:
liThe expendi -::'e ceiling imposed on the
National Science 7< .:ndation for fiscal 1969 ~tlas

extraordinarily da:~--·sing -- prim.arily because it

forced NSF essentii.=_ly to abrogate grants and ,
agreements alread.y .._ade to nany colleges and uni­
versities. It is G~2 thing to cut the allocations
to neyl grants or to ;.'enevlals of grants ; it is quite
a different thing to say to an investigator and his
university that he cannot spend rr..oney already
granted. Since, vJhen a g:rant is made, cor:-.::ni trnents
to staff and eqUipment are frequently Ir..ade ~:rell in
advance, the expenditure ceilinc forced universities
else to dip
into their m'm funds to r;~eet what they reGarded as
 - Li-2 ­

the

to increase t~e authorized ex?enditure ceilinG of

NSF. This ',.!ould i::-::.::-::e6.:ately

scie~tific projec out of serio~s fi~a~cial dif~i-

culties, ~'lOuld avoi':: se:riou.s da.:-rlase to r_,,-any ir,:por­

tant research Jrogra~s, and, ~ost of all, it would
be an enor::ously important gesture for tee ne~'!

adr::inistre. 0·"" to l::&:~e to i-,in t confidence of

scientists and educators throughout the country.
will tell the world of higher education that the
nel'; administra~cionHill not countenance abrOGating
agreer:1ents already r.1ade, even though budGetary
tightness may sor:'..etimes force reductions in nel'1"·
ae:i.~eements invoJ..vin£:; future plans. An ir:crease
.I
this expenditure ceiling is a t:civial pa:ct of tl":e
total national eXJenditures, but is a very 12.1'"

factor in university research and graduate education

"'!;I"' r 00 'Y'a;,-;
(7 - ..... s • tI

You shm.:.ld pTornptly ask t:le Budget Director to cl:ec}\.

the facts reported by Dr. Du3ridse. If they are fou:ld to
be accurate, there is so::::e urzency \ in gr3.ntins irc.rr.ediate
relief to NSF.

I
 - l~3 ­

3. I-I:Lli ?escerc~ and ~evel

The Tas~\. ?o!'ce on Science ar:d Tech:"lolo.;y asse:~t:.s

that a mistaken policy with respect to tte building of

prototYges has contributed heavily in recent yea!'s in
the nation's failu:ce to r.c.a~:.e adequate prog:!.'ess ir. develop­
ing new weapons syste~s.

the panel states -' 1r1'le b greatly to overe~phasize paper-

cost effectiveness studies, i.e., studies based on un­
proven assur:rptions regarding ~ardVlare perf::)!¥.mance and
costs ••• II , while Simultaneously regle?ting exploratory
prototype construction. As a consequence of this penn~r-

wise posture, 11e have often traveled long distanCes do';'m

unpro~ising roads at considerable expense before realiz­
ing mistakes. The 'I'ask Force al'e;ues for "a sig...'1ificant
increase in the number of exploratory prototypes built
in connection 1-1ith nel1 military syster.:1s, and a clear ex­
pectation that only a fraction vIill l)l"'ove t successful'!!.
Since the Task Force considers the prototype proble~

to be of lIoverriding ir.-:portance t:, you s:wuld call it

promptly to the attention of the Secretary of Defense.

4. SupersoniC 'I'ransport (SST)

To date the Federal govern~ent has spent close to

half a billion dollars on the develop~e~t of the SS~.
 The origi~~l d2si

several optio::1s
Boeing has defaulted on t~e cc~tract to proceeding with
the current 9rogram.

tary questio::1s i::1volved in reaching a decision. For

example:
(a) Does the net'; desis:,'1 meet perfoI'"[:'la::1ce speci­
f.ica tions ?
(b) Is the ne~': des1t2:D ec o:lOr:tically Viable?
(c) Does the SST nov, 'r.1eri t tee hiC;h na tio:lal
priority that it had two years ago?
Because of the many serio~s, u~resolved questio~s

still surroundinG the SS'i:, ar.d in ViCN o-}: the fact that
almost half a billion has already oeen spent on
project, it is reco::-;rr;lsr:.ded that you irr::C:lediately esta.o­
lish a cor(2ni ttee the SST program and ask
it to report its ::indings a::1d reco;::-.;:'~endatio::1s 1'1ithin 60
days after t:::e suor::issio::1 of the neN :3oeing desisn.
The menoership of t:.e co:.u::i ttce r;;.iGht include sCientists,
aeronautical ensineers, medical Een, ousiness executives,
and r.ilitary men with no vested interests. Among other

c.
 - L;5 ­
/

rece~t study ~y a s2iE~~ifi2 panel establis~cd by t~e

Secretary 0: t~8 I~

5. Natio~al Accelerator

One of the itc~s which Task ?or~c or. Scie~ce ~~Q

TechnoloGY singles .out -:Ol~ early action is the 9l~ovision

of construction funds for proton accelerator p~oject

at Heston., Illinois. 3ece.use 0-: 'oud£;etary constl"'aints"

support for this project -- a funda~ental research under-

been li~ited to relatively ~oderate planning apPl"'opriations.

No ""'una-';n"'"
.!. Drov'.L s~J. o'n
.J..;';:'. • h~S
..c. .,;;. r:~~a.'e
'oeen ,.Cl e'; +"'.,er
v., _
.l.. _ co"_r:s+_'''''~;('+_i
J.-"'O:' _ v ~_ v 0'".'•

or for annual operating expenses.

The Tasl\:. Force reports as follm'is: an ir:.Jilediate ,
deciSion to fund $100 ::-d.1lion for fiscal 1970 is Hnecessary
if the outstandins perGoY'. nel already asser:~bled •.. are to
be held together. stake here is the vitalivY of U.S.
phYSical science ... rf we do not soon fund CO:::1struction
of the ••. accelerator" we risk not only our world leader-
shin
... in tl1is field L
J:Co thev
Soviet
" Un i- on7 bu'" our e7'--'e"-
-.. ...!".t _ J.. """
tiveness in generatins both basic };:.n01'lledge and a corps
of exceptio:1ally valua:ole scientists. II

You should see:", an early assessr;:eYlt of this :::atter

from Dr. DuBridse.

(
6. Pes

have to be resolved vc s~ortly is the s~0ge and dire~-

tion of U.S. space effo~ts ~ow that the u&nned lunar­

landinc; ;>roj e~t, \'lhic:1 has 'been the chief focus of nO!1­
military space activities thro~Ghout tee 1960 7 s, is
approa~hin~ its end.
While there is general a~reement in s~ie!1tific circles
that vigorous space efforts should continue, rrajor dif­
ferences exist with respect to both ecific projects and
the appropriate annual level of funding. The Tasl)". FOTce
on Space believes that presen.t a:;~'.1a1 outlays are If::1e~es-

sary and adeCluate II j and it rec o:;.:r.:ends that :N_~.SA plac e

pri::::::ary enphas is in corr.i!12; years on re.ar..ned lunar explora­
tion, on the so-called Apollo Applications ?rogran, and
on unDanned planetary prooe8. It does not believe that"

costly undertal<:inss, such as construction of a· IG.anned

space station or a mar.ned l,~ars missio:'1. There is, h01'!eVer,
sor,\;.e feeling 1'/i t:-:'in the ,?ask Force in favor of ~:'.ore ag­
gressive space activities.
It is reco:r.::"enc.ed that you esta::Jlish a high-level,

back to you ~/:i t:.i.:1 t:'1is c8.ler.dar yea:..",. YOi.1r Science Adviser,
the head of NASA, the Diretto:" of the 3ureai.1 of tr.e Budget,
 Lt? _
• I

and a se~io:~ De:'ZDse /

7- Sp~ce Booste~s

The Task Force 0- Space believes that a brea~-

through rrtay be n;;;:ar in achievins; dra::::,:atic cost reductions

in launchi::.g and boosting operations, 'Hith pote:'1tial
savings thaJv IIcould total many billions of dollars over
,a lO-year period. If It feels that IIcontinued prio:':'''i.tyl!
should be given to studies of alternative approaches to
cost savings and that lIthese studies shou:"c. be aUg!1lented
to provide a nore complete understanding of the tec~~i-

cal a1 ternati ves, and to r::a:{2 Dore cor::plete econo:::1.ic

comparisons for several different future levels of

...
You should discuss 'in.. i:;{l :Dr. Du3ridse the .9an-::::" r s
specific recorrJl!le~:da tion t:lat the DepartY::.ent of De:'ense
and NASA coordinate their studies in this are~ so as to
provide, about Nover.:-ioer 1, 1969, inforr."atio:::. upon vlhich
a joint DOD-:i:!AS_; proc;ra::: decision could be :;,;ade.
 I, .')
- -i-O ­

1. Ai ort Devel

In t~e r:!8.o.2

tion Airport DeVelO?E2D~ oill.

penditures is goinG
to at least several hundr2Q rLillion dollars a::-1::-.'\;.ally),
but the "'::lud::';et impac:t C:2.n and shm.1.ld be c:or:,:;>letely off­

char38S.
you-go princ:iple apply

DevelopEent Trust Fund shc~:d ~e c:oDsidered.

of departure for the Secretary (espec:ially S. 3641

approved on

 seal

gressio~al actio~ O~ D~si~ ai~?o~t Qevelop~ent le~islatio~.

You should be a.",:are ttat the ?:c..A

gated regulatio:'ls that;~'!~ll oeco:::.2 effec:ti ve next Ap:l."'il
27, settins ho~rly quotas for use of the overburdened
airports in l~e:'i "fork, \'Tash ingt on.; and ChicaGo.
opposi tio:~ to these reGula t~iorlS ~an be e:;,:pe::!ted ~~or[!. cer­

tain groups wi~hin t~e aviation industry, and it is not

killed or substantial::"~' J:~o0.ified.

GiVen t~e acute prosle~ of airport congesticn, there

stand, but you sho~ld ask the Sec:reta:::.'y

to ~ake an early appraisal of ~his ~atter.

· 4.

You shot:..ld direct

(
 - 50 ­

officials.
These relatio~s a?pea~ to tave deter~o~ated

seriously and rapidly ~n ~ecent years ~it~ the feeline

to
be a partnership arransement has ~eco~e ~ore ~nd Qore
Federal dictation. Tne grievances range over many par­
ticulal~s, emDracing not only roadbuildinG Y;'.2 tters but

lations.

bleG exists, invitinG suggestions, and

knot';::1 t:couole- spots \'Till be :cev:'a;·!ec..
pro~ising that *
Fund disburse~en~s for stao:'lizatiO::1 purposes
in recent yaal's efficient and orderly
~anaGe~en~ of co~structio::1 projects on t~e Interstate
System. In view of the interest of t~e Council of
Economic Advisers in stabilization objectives, this
agency should join the Jepart~ent of Transportation in
a revie~ of actual ex~erie~ce and the c.elineation o~ a
~olicy for t~e fut~~e.
 I

f
5. NG~ C2~~1 ~n C2n~r~l
_._-------_ _----- ---.­
I
...•
/

consiGe~at~o~ ~o a se~

Ameri~a:

(a)
::los of the prese~t ca~al,

(0 ) its sa ted ty, a::;.d

(:: ) i "cs to acco:-:::xlodate cur:c'ent

ration of oil tan~ers.

The Task Force on Scie:1ce a~1d J:'echnolo.z-.Y ~as called.

attention to the feasibility of a canal that. would avoid
conventional locks by selecting a route (already surveyed)
involving a ::ontint::.ous o:1.e- :Jay £'10':'; of ·Hater f1"0:11 the
1

Pacific to the Atlantic. Selection of such a route>

uncertain ecological cO~1sequences •
Because of the pe~uliar ra~ge of tary, diplo;~a tic,

and envi rOnl:-:en probler..s t:'1&tare involvea, an inte::c­

departmental group (1':i th represer~ or~ from the Depa::ct­
:nents of Defense, SJ-:.ate, h0'D, and Co:-,.:::.erce, and the Office
of Science a~d TechnolOGY) should be asked to give you
before the end of 1969 le~st a prelimi~a~y aDsess~c~t

of the problems and costs that would be entailed in build­

ing a seco::1d Si.:::;nificaY1tl~/, const:... 'C.ction of a

draTIatic ~or.D~litary usc 0: o:~. ic p01':er.

f
I
I;
 - 52 ­
r
O. rr'

to Ce-:-::O::'"lS "'t ,':''; ..:~~--.

• .­ __ v~_

portatio~ p~c~~e~ see~s

it looks as i: it ~ay

full Ta.

suggestions for actions i~ various areas, and these will

be passed alonG for revic1'! -;)y the Depart:-;!sr;.t of 'I'x2.ns­
portatio:'1. On vital iSSU2S, ...,De
-'-­

report is ~ore s~~gestive than definitive, and it there­

fore 'r':.ay be \'lise to create a tional CO~Jis3ion on
Transportation Needs and Policies.

desirability of allowing railroads freedo:'"!l in

setting rates, and of SivinS railroads as well as other

mentary lines of business activity.

"'J'i th t:"l.e cO:':'I.:i t;:;len-::;s you :-:lace in tl::e cou.rse of the ca:::.­

paign. Thus, you s~ated role of the

den t C o::-..r n: S s i 0:1.

 - 53 ­
/

~~..., t H
vidins incenwivcs - r 9 \..0,./ •

You sho~lC ~isc~ss the proposed C ssioY1 at an

ea:.."ly date I'.'i t:-: He neeci.

tl-~e cur
various transportation co~?onents, h sv.1cielir.es as

l
 - 54 ­

.... -:
1. ~~-",~,
l..:,.'_,,_'.1-!...

Ze the 12.';)cr
market uncr~-:91o~r-

ment a:r:d at preS3U::.... es.

During the ca:-:qai':;l1 :;'"01..1 called a tter:tion the r..eed for

just such a job
The Secretary of b cr:.~ s [:ou1d '0 e rec"ved to unCe::­
take a thoroush study could best
be i:nple:-,:e:1ted i:1 the near fl.:;..ture. A date should ';)e set
for a draft of the ·cion.

"

He nO':'[ have reasor..a on on

uner:lplO~r:-:'. e~. . t for th.e

market. ive
records on JOG vacancies side

Because

is a sur~lus or de:ici for

(
 so . ~

of j 0'0

educe:'ci 0::: , cou~d

syster:l of job statistics

'a t once.

3.

In ordeX' to stirtlt:.la te uner:::;?lo:,red ~)eople to Y:";.ove

sidies have been granted to enccurase T+

_'"'

'make an aSSeSS::~en~ t!iis activity

~g its poter:t;ial pl"'or:';.ise..

liol::.se
 /

of sucn a conference.

The Tasl-::. 'Force on Lab:)::.:'" Incomes" and }:an?O~'ler

Policies fir:ds tha ~ the priority !:eed for re:"?":2c.ial r:..B.n­

would consolidate the lessons of expe~ience ir:to a

adayted to c :C:~::"J;.ni t;:r 2.:.1d ~r..d:' vid.ual T.. eeds.

The Secretal"j' of L2.~or sr:ould. be recuest8d to pre­

.
pare at once a suggested draft of such le3islatio!1,

'benefi"i::;s.

6. Transi tiO:1 fro:G. Sc::ool to JOGS

. .­
lYl cen-c:::--al.

city areas.
 - 5'( ­

way in li~c, t~c )~CS2~~

....,,. r-- :'"" .:,­

.. ~.,v'::'" OJ

"';;0 se

the t
of the ~~oble~ of fl01'! of

e :2.---0::: ~'r,p
\,1 . . . ­
,
•.. 2C. ci vili&·:J.
. ....
..:...1.:... 8

~o~~-s~~ool progra~s.

Obviously these are a~2as ~or ccope~ative involvi::1,2;

the va
In addition, a di:fere~tial in rr~iniYllt:r:~ sr.ould :;e
-. to tl'1e

tuni ties on a I'lider scale -;:or ~rot...ng 1'70_ :CS.

The Secreta:c:l of Le.."bor s:':'ou:"d be r8(1''':83"'""

to prepare a rc?ort, tozetter with a draft

legislation, on ways of facilitat on of
youth fro~ school to ~se-;:ul jobs.
t
-vs

Congress=an ~ohn

Label" Co~~:~::~i tt2G,

(~
 - 52 ­

to i ~
"'('"\ ~ ";'"1.
__ "-.,i... ::-; ~
............. ..J_
C r.:.
')E:..y
_':\> ...... ".....,"."/'.
_,:"v..i..",

"l"jO,
( -'~ r t::.an -C:~e

prese:-~'c

cos-c of
be a great deal of Dressure to ge~

0::::' t::-_ese

questio::1e.ble in
on Infle~tioi riGhtly tel' s you lIto Tesi

ins of its
..
You should e the Se~~etaTY of 02~ to di s c.~s s

at the first o?portunity this legisla

sional leaders, ~~clu~inc Con:ress~an Ay~es Ser:ator
Javits.
an oppor-tuni -:,y to take up -;:'[:.2 special P:·OO_l-€:::TI: of the

is adv:'saole.

8.

t
At the p:."esent ject
,
"
...~, t

.
•
 - 59

to

0:::1.
T, .. r~' i :""~
t. _ ...... __ \.....;. pl~ce "" _
'-' :::.~,.,~: '"i .("\
_ V.",..-_J.

unde2:' ~tley Act ~as re90rted by the

~,~ Y~I'""-~~<
......... v .....

the c t/cee.

was a great deal of o]position to

from b 0:::'

arg,l.lnent i

to The i'al"mer is pa:~ticularly

vulnerable to striKes, fa:.: a ...,,11101e cro? could oe lost

vlork 11as stopped a"C a crucial "ClTr:e.

As soon as possible, 3ec~e~ary of Labor the

secretary of Agricul tu~e s:;.ould review t!1is t
..
que 0:1.

9. es

It is highly i!:190rt;2.Ilt t;-:a. t :'lOU r~:2..kB a spec

effort to win the full cOoge~ation of Federal career

enployees W!10, in and r-

mine
s
, .
your it is reCC:T'::.enc you
set a ~c::.spicuous exa::~:91e by a2:'::.::::-:sing fa:" ar:
 /""'\
- OU ­

s
Group
tive Office.

10. oY2es

A national policy uith resard to unions of public

employees a:::1d disputes involving public e:nployees is
urgently needed.

It I'Jould be ciesil"c::ble to establish" under the 2:,"1..:idance

of the Sec!.'Gi:;ary of La-ool', a special task force to make
a searchinG exanination of this proble~. availa'b ty

as 1':ell as the ra::ni cations of a Federal int on. Al­

though Federal cwployee strikes '8 not a problen tod~y~

they could beco::,.e a proolem in

bearing of :recent ctanges ?ede:cal e:-r.ploycr-e:::,ployee

.. .i'" • .. ..
relations on it, s~oulc a:"so oe SCUClec. In deptl1.

You ..:;::ould disc1.:sS t~e vexing projle~ public

elliployee disputes \d til. tL~e Secretary of Laco:r an ea:rly
opportuni t-;/ •

11. AII-V:lunte2r Ar-

( One of your 2tron:est plc

 -
I J.

Thc;l"2

a m.ove, pEe ..,lJ'

al se~urity a~d ~artly for

t:; YOll do so a
ma~~~er that protec~s oot~ t~8 ~atio~al

budJ:et.
steps~ evaluatins the results
of each before Dovi~~ to the ~ext, as follows:
(a) Reaffir::1 yOUl~ !?lcdCe vO end the d raft as s 00::1

as possiole.

.
(b) Increase the planned Jul:/ 1" 1969 ::1ili tal~y pay
~

raJ." s e 0_""", s ........e

"","' '" 2 "h
9 ui l l J.u
___ .• vo yC. 3
• "'>"I..!.. .;)_...
~ 1 .J.._Orl,
-; i ' ",.~
.... 0 ... -"

.

centratins the adei o{;.al 'oi11ion in tr.e 10;-les-c

. . est. ~n~s should induce

a rise in enllst:-:lents and all 01'1 d::ta::t calls to
be reduced.
(c) Appoin.',:; a Cor:~is sion
task of devclopinz a detailed plan of action
for endins t~e draft.
(d)
<.
 62 ­

cnlis zcale
0:':

of :..

for fiscal 1971.

cates
t~at enl to
inC!reascd

cost. On the other hand, ..,. tl:.e evaluation

indiC! es v very larGe costs are needed to
assure a s'C..os
a slm~er pace ot iS91e~entation would be
logical. ..
You should" of course" tal-:e
real possibility t~ . . a. t

the narrowi~z of pay differentials officers and

betwez~

., .
:9rivates. In any event, you will need advice -Cill.S

Secretary of Defe:.se J a::G. you

Y01.l? to
 - 63 -

1. The Federal Role

The Task Force on 3~ucat~on expressEs strong ccncern

blocl..: grants., sllcl:.. funds as 2..l"'e ur6 errtl;l ::2cded to upsra.de

their
This ernphasis on G€!1era.l aid - - as cont:"'as t,ed ·~j]i th

ca tesorica1 grar.: f:>r ~

~I"'\"; "'~-1
...... ...:.- .....
"'"\
...." narrowly defined pur9:>ses
is wor~isome to the Tas~ Force for
especially

The Task F:>rce n:>tes that tQe constitutions of thirty

states have
provisions ~hich tig~t1y restrict aid by sta~e bodies to
p~ro~hial sc~oo~s. ?~us, it is co~sidered p~oba~le t~at

any attempt
_
to turn _~ederal educational do_~_lars r.~~~~
""~~..:..'-." v

present do benefit sectarian-s8hool c~ildren to

into generalized state educ ~~onal dollars would provo~e

bitter opposition fro~ Catholic officials. ':'l:is, the

fears, might possibly u~settle the whole Federal educa­

tional effort.
Force, is that aid r:.oneys to
sectarian schools in those stateb w:::ere constitutional
(
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 'Ie s.
would ~ot ~e so b~oad)

calls for as ~uic

educatio:: dete:.~;.::i~ing l:o~·;

rccodifi
greater e~fic aCI:1i::.i s tra. ..!ci or.:..

pOirJots o~t pieces 0:'

educati0~al le3islation &~d that i~ fiscal 1970 tte OffiCe

of Educatio~ will be a~=ini3te;ing at least 113 prog~a~s.

According to the
belief) bot~ at the s te and local level, that the 5e

ing 0:.. fur.c.: un::'.:;r this r:mltipl~ci ty of le:;islation is

..
an untlec'essaril~r OU:,d2r:sor:~G and ti:;r.e-c~:r::sur:!.ir:g busi::1ess. H

Federal aid to institutions = lear~.:i:::.g be revised.

It clearly Nould 1i1:.2 to see a c.ee:nphasis on specific

.i
project gran

manner.!! de'Jarture gra~ts c2cired by