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President[ Dwight D. Eisenhower

         Date[ January 12, 1961


To the Congress of the United States:


Once again it is my Constitutional duty to assess the state of the Union.


On each such previous occasion during these past eight years I have

outlined a forward course designed to achieve our mutual objective--a

better America in a world of peace. This time my function is different.


The American people, in free election, have selected new leadership which

soon will be entrusted with the management of our government. A new

President shortly will lay before you his proposals to shape the future of

our great land. To him, every citizen, whatever his political beliefs,

prayerfully extends best wishes for good health and for wisdom and success

in coping with the problems that confront our Nation.


For my part, I should like, first, to express to you of the Congress, my

appreciation of your devotion to the common good and your friendship over

these difficult years. I will carry with me pleasant memories of this

association in endeavors profoundly significant to all our people.


We have been through a lengthy period in which the control over the

executive and legislative branches of government has been divided between

our two great political parties. Differences, of course, we have had,

particularly in domestic affairs. But in a united determination to keep

this Nation strong and free and to utilize our vast resources for the

advancement of all mankind, we have carried America to unprecedented

heights.


For this cooperative achievement I thank the American people and those in

the Congress of both parties who have supported programs in the interest of

our country.


I should also like to give special thanks for the devoted service of my

associates in the Executive Branch and the hundreds of thousands of career

employees who have implemented our diverse government programs.


My second purpose is to review briefly the record of these past eight years

in the hope that, out of the sum of these experiences, lessons will emerge

that are useful to our Nation. Supporting this review are detailed reports

from the several agencies and departments, all of which are now or will

shortly be available to the Congress.


Throughout the world the years since 1953 have been a period of profound

change. The human problems in the world grow more acute hour by hour; yet

new gains in science and technology continually extend the promise of a

better life. People yearn to be free, to govern themselves; yet a third of

the people of the world have no freedom, do not govern themselves. The

world recognizes the catastrophic nature of nuclear war; yet it sees the

wondrous potential of nuclear peace.


During the period, the United States has forged ahead under a constructive

foreign policy. The continuing goal is peace, liberty, and well-being--for

others as well as ourselves. The aspirations of all peoples are one--peace

with justice in freedom. Peace can only be attained collectively as peoples

everywhere unite in their determination that liberty and well-being come to

all mankind.


Yet while we have worked to advance national aspirations for freedom, a

divisive force has been at work to divert that aspiration into dangerous

channels. The Communist movement throughout the world exploits the natural

striving of all to be free and attempts to subjugate men rather than free

them. These activities have caused and are continuing to cause grave

troubles in the world.


Here at home these have been times for careful adjustment of our economy

from the artificial impetus of a hot war to constructive growth in a

precarious peace. While building a new economic vitality without inflation,

we have also increased public expenditures to keep abreast of the needs of

a growing population and its attendant new problems, as well as our added

international responsibilities. We have worked toward these ends in a

context of shared responsibility--conscious of the need for maximum scope

to private effort and for State and local, as well as Federal, governmental

action.


Success in designing and executing national purposes, domestically and

abroad, can only come from a steadfast resolution that integrity in the

operation of government and in our relations with each other be fully

maintained. Only in this way could our spiritual goals be fully advanced.


FOREIGN POLICY


On January 20, 1953, when I took office, the United States was at war.

Since the signing of the Korean Armistice in 1953, Americans have lived in

peace in highly troubled times.


During the 1956 Suez crisis, the United States government strongly

supported United Nations' action--resulting in the ending of the

hostilities in Egypt.


Again in 1958, peace was preserved in the Middle East despite new discord.

Our government responded to the request of the friendly Lebanese Government

for military help, and promptly withdrew American forces as soon as the

situation was stabilized.


In 1958 our support of the Republic of China during the all-out bombardment

of Quemoy restrained the Communist Chinese from attempting to invade the

off-shore islands.


Although, unhappily, Communist penetration of Cuba is real and poses a

serious threat, Communist dominated regimes have been deposed in Guatemala

and Iran. The occupation of Austria has ended and the Trieste question has

been settled.


Despite constant threats to its integrity, West Berlin has remained free.


Important advances have been made in building mutual security

arrangements--which lie at the heart of our hopes for future peace and

security in the world. The Southeast Asia Treaty Organization has been

established; the NATO alliance has been militarily strengthened; the

Organization of American States has been further developed as an instrument

of inter-American cooperation; the Anzus treaty has strengthened ties with

Australia and New Zealand, and a mutual security treaty with Japan has been

signed. In addition, the CENTO pact has been concluded, and while we are

not officially a member of this alliance we have participated closely in

its deliberations.


The "Atoms for Peace" proposal to the United Nations led to the creation of

the International Atomic Energy Agency. Our policy has been to push for

enforceable programs of inspection against surprise attack, suspension of

nuclear testing, arms reduction, and peaceful use of outer space.


The United Nations has been vigorously supported in all of its actions,

including the condemnations of the wholesale murder of the people of Tibet

by the Chinese Communists and the brutal Soviet repression of the people of

Hungary, as well as the more recent UN actions in the Congo.


The United States took the initiative in negotiating the significant treaty

to guarantee the peaceful use of vast Antarctica.


The United States Information Agency has been transformed into a greatly

improved medium for explaining our policies and actions to audiences

overseas, answering the lies of communist propaganda, and projecting a

clearer image of American life and culture.


Cultural, technological and educational exchanges with the Soviet Union

have been encouraged, and a comprehensive agreement was made which

authorized, among other things, the distribution of our Russian language

magazine Amerika and the highly successful American Exhibition in Moscow.


This country has continued to withhold recognition of Communist China and

to oppose vigorously the admission of this belligerent and unrepentant

nation into the United Nations. Red China has yet to demonstrate that it

deserves to be considered a "peace-loving" nation.


With communist imperialism held in check, constructive actions were

undertaken to strengthen the economies of free world nations. The United

States government has given sturdy support to the economic and technical

assistance activities of the UN. This country stimulated a doubling of the

capital of the World Bank and a 50 percent capital increase in the

International Monetary Fund. The Development Loan Fund and the

International Development Association were established. The United States

also took the lead in creating the Inter-American Development Bank.


Vice President Nixon, Secretaries of State Dulles and Herter and I

travelled extensively through the world for the purpose of strengthening

the cause of peace, freedom, and international understanding. So rewarding

were these visits that their very success became a significant factor in

causing the Soviet Union to wreck the planned Summit Conference of 1960.


These vital programs must go on. New tactics will have to be developed, of

course, to meet new situations, but the underlying principles should be

constant. Our great moral and material commitments to collective security,

deterrence of force, international law, negotiations that lead to

self-enforcing agreements, and the economic interdependence of free nations

should remain the cornerstone of a foreign policy that will ultimately

bring permanent peace with justice in freedom to all mankind. The

continuing need of all free nations today is for each to recognize clearly

the essentiality of an unbreakable bond among themselves based upon a

complete dedication to the principles of collective security, effective

cooperation and peace with justice.


NATIONAL DEFENSE


For the first time in our nation's history we have consistently maintained

in peacetime, military forces of a magnitude sufficient to deter and if

need be to destroy predatory forces in the world.


Tremendous advances in strategic weapons systems have been made in the past

eight years. Not until 1953 were expenditures on long-range ballistic

missile programs even as much as a million dollars a year; today we spend

ten times as much each day on these programs as was spent in all of 1952.


No guided ballistic missiles were operational at the beginning of 1953.

Today many types give our armed forces unprecedented effectiveness. The

explosive power of our weapons systems for all purposes is almost

inconceivable.


Today the United States has operational ATLAS missiles which can strike a

target 5000 miles away in a half-hour. The POLARIS weapons system became

operational last fall and the TITAN is scheduled to become so this year.

Next year, more than a year ahead of schedule, a vastly improved ICBM, the

solid propellant MINUTEMAN, is expected to be ready.


Squadrons of accurate Intermediate Range Ballistic Missiles are now

operational. The THOR and JUPITER IRBMs based in forward areas can hit

targets 1500 miles away in 18 minutes.


Aircraft which fly at speeds faster than sound were still in a

developmental stage eight years ago. Today American fighting planes go

twice the speed of sound. And either our B-58 Medium Range Jet Bomber or

our B-52 Long Range Jet Bomber can carry more explosive power than was used

by all combatants in World War II--Allies and Axis combined.


Eight years ago we had no nuclear-powered ships. Today 49 nuclear warships

have been authorized. Of these, 14 have been commissioned, including three

of the revolutionary POLARIS submarines. Our nuclear submarines have

cruised under the North Pole and circumnavigated the earth while submerged.

Sea warfare has been revolutionized, and the United States is far and away

the leader.


Our tactical air units overseas and our aircraft carriers are alert; Army

units, guarding the frontiers of freedom in Europe and the Far East, are in

the highest state of readiness in peacetime history; our Marines, a third

of whom are deployed in the Far East, are constantly prepared for action;

our Reserve establishment has maintained high standards of proficiency, and

the Ready Reserve now numbers over 2 1/2 million citizen-soldiers.


The Department of Defense, a young and still evolving organization, has

twice been improved and the line of command has been shortened in order to

meet the demands of modern warfare. These major reorganizations have

provided a more effective structure for unified planning and direction of

the vast defense establishment. Gradual improvements in its structure and

procedures are to be expected.


United States civil defense and nonmilitary defense capacity has been

greatly strengthened and these activities have been consolidated in one

Federal agency.


The defense forces of our Allies now number five million men, several

thousand combatant ships, and over 25,000 aircraft. Programs to strengthen

these allies have been consistently supported by the Administration. U.S.

military assistance goes almost exclusively to friendly nations on the rim

of the communist world. This American contribution to nations who have the

will to defend their freedom, but insufficient means, should be vigorously

continued. Combined with our Allies, the free world now has a far stronger

shield than we could provide alone.


Since 1953, our defense policy has been based on the assumption that the

international situation would require heavy defense expenditures for an

indefinite period to come, probably for years. In this protracted struggle,

good management dictates that we resist overspending as resolutely as we

oppose under-spending. Every dollar uselessly spent on military mechanisms

decreases our total strength and, therefore, our security. We must not

return to the "crash-program" psychology of the past when each new feint by

the Communists was responded to in panic. The "bomber gap" of several years

ago was always a fiction, and the "missile gap" shows every sign of being

the same.


The nation can ill afford to abandon a national policy which provides for a

fully adequate and steady level of effort, designed for the long pull; a

fast adjustment to new scientific and technological advances; a balanced

force of such strength as to deter general war, to effectively meet local

situations and to retaliate to attack and destroy the attacker; and a

strengthened system of free world collective security.


THE ECONOMY


The expanding American economy passed the half-trillion dollar mark in

gross national product early in 1960. The Nation's output of goods and

services is now nearly 25 percent higher than in 1952.


In 1959, the average American family had an income of $6,520, 15 percent

higher in dollars of constant buying power than in 1952, and the real wages

of American factory workers have risen 20 percent during the past eight

years. These facts reflect the rising standard of individual and family

well-being enjoyed by Americans.


Our Nation benefits also from a remarkable improvement in general

industrial peace through strengthened processes of free collective

bargaining. Time lost since 1952 because of strikes has been half that lost

in the eight years prior to that date. Legislation now requires that union

members have the opportunity for full participation in the affairs of their

unions. The Administration supported the Landrum-Griffin Act, which I

believe is greatly helpful to the vast bulk of American Labor and its

leaders, and also is a major step in getting racketeers and gangsters out

of labor-management affairs.


The economic security of working men and women has been strengthened by an

extension of unemployment insurance coverage to 2.5 million ex-servicemen,

2.4 million Federal employees, and 1.2 million employees of small

businesses, and by a strengthening of the Railroad Unemployment Insurance

Act. States have been encouraged to improve their unemployment compensation

benefits, so that today average weekly benefits are 40 percent higher than

in 1953.


Determined efforts have improved workers' safety standards. Enforceable

safety standards have been established for longshoremen and ship repair

workers; Federal Safety Councils have been increased from 14 to over 100;

safety awards have been initiated, and a national construction safety

program has been developed.


A major factor in strengthening our competitive enterprise system, and

promoting economic growth, has been the vigorous enforcement of antitrust

laws over the last eight years and a continuing effort to reduce artificial

restraints on competition and trade and enhance our economic liberties.

This purpose was also significantly advanced in 1953 when, as one of the

first acts of this Administration, restrictive wage and price controls were

ended.


An additional measure to strengthen the American system of competitive

enterprise was the creation of the Small Business Administration in 1953 to

assist existing small businesses and encourage new ones. This agency has

approved over $1 billion in loans, initiated a new program to provide

long-term capital for small businesses, aided in setting aside $31/2 billion

in government contracts for award to small business concerns, and brought

to the attention of individual businessmen, through programs of information

and education, new developments in management and production techniques.

Since 1952, important tax revisions have been made to encourage small

businesses.


Many major improvements in the Nation's transportation system have been

made:


--After long years of debate, the dream of a great St. Lawrence Seaway,

opening the heartland of America to ocean commerce, has been fulfilled.


--The new Federal Aviation Agency is fostering greater safety in air

travel.


--The largest public construction program in history--the 41,000 mile

national system of Interstate and Defense highways--has been pushed rapidly

forward. Twenty-five percent of this system is now open to traffic.


Efforts to help every American build a better life have included also a

vigorous program for expanding our trade with other nations. A 4-year

renewal of the Reciprocal Trade Agreements Act was passed in 1958, and a

continuing and rewarding effort has been made to persuade other countries

to remove restrictions against our exports. A new export expansion program

was launched in 1960, inaugurating improvement of export credit insurance

and broadening research and information programs to awaken Americans to

business opportunities overseas. These actions and generally prosperous

conditions abroad have helped push America's export trade to a level of $20

billion in 1960.


Although intermittent declines in economic activity persist as a problem in

our enterprise system, recent downturns have been moderate and of short

duration. There is, however, little room for complacency. Currently our

economy is operating at high levels, but unemployment rates are higher than

any of us would like, and chronic pockets of high unemployment persist.

Clearly, continued sound and broadly shared economic growth remains a major

national objective toward which we must strive through joint private and

public efforts.


If government continues to work to assure every American the fullest

opportunity to develop and utilize his ability and talent, it will be

performing one of its most vital functions, that of advancing the welfare

and protecting the dignity, rights, and freedom of all Americans.


GOVERNMENT FINANCE AND ADMINISTRATION


In January 1953, the consumer's dollar was worth only 52 cents in terms of

the food, clothing, shelter and other items it would buy compared to 1939.

Today, the inflationary spiral which had raised the cost of living by 36

percent between 1946 and 1952 has all but ceased and the value of the

dollar virtually stabilized.


In 1954 we had the largest tax cut in history, amounting to $7.4 billion

annually, of which over 62 percent went to individuals mostly in the small

income brackets.


This Administration has directed constant efforts toward fiscal

responsibility. Balanced budgets have been sought when the economy was

advancing, and a rigorous evaluation of spending programs has been

maintained at all times. Resort to deficit financing in prosperous times

could easily erode international confidence in the dollar and contribute to

inflation at home. In this belief, I shall submit a balanced budget for

fiscal 1962 to the Congress next week.


There has been a firm policy of reducing government competition with

private enterprise. This has resulted in the discontinuance of some 2,000

commercial industrial installations and in addition the curtailment of

approximately 550 industrial installations operated directly by government

agencies.


Also an aggressive surplus disposal program has been carried on to Identify

and dispose of unneeded government-owned real property. This has resulted

in the addition of a substantial number of valuable properties to local tax

rolls, and a significant monetary return to the government.


Earnest and persistent attempts have been made to strengthen the position

of State and local governments and thereby to stop the dangerous drift

toward centralization of governmental power in Washington.


Significant strides have been made in increasing the effectiveness of

government. Important new agencies have been established, such as the

Department of Health, Education, and Welfare, the Federal Aviation Agency,

and the National Aeronautics and Space Administration. The Council of

Economic Advisers was reconstituted.


The operation of our postal system has been modernized to get better and

more efficient service. Modernized handling of local mail now brings

next-day delivery to 168 million people in our population centers, expanded

carrier service now accommodates 9.3 million families in the growing

suburbs, and 1.4 million families have been added to the rural delivery

service. Common sense dictates that the Postal Service should be on a

self-financing basis.


The concept of a trained and dedicated government career service has been

strengthened by the provision of life and health insurance benefits, a

vastly improved retirement system, a new merit promotion program, and the

first effective incentive awards program. With no sacrifice in efficiency,

Federal civilian employment since 1953 has been reduced by over a quarter

of a million persons.


I am deeply gratified that it was under the urging of this Administration

that Alaska and Hawaii became our 49th and 50th States.


AGRICULTURE


Despite the difficulties of administering Congressional programs which

apply outmoded prescriptions and which aggravate rather than solve

problems, the past eight years brought notable advances in agriculture.


Total agricultural assets are approximately $200 billion--up $36 billion in

eight years.


Farm owner equities are at the near record high of $174 billion.


Farm ownership is at a record high with fewer farmers in a tenant and

sharecropper status than at any time in our nation's history.


The "Food-for-Peace" program has demonstrated how surplus of American food

and fiber can be effectively used to feed and clothe the needy abroad.

Aided by this humanitarian program, total agricultural exports have grown

from $2.8 billion in 1953 to an average of about $4 billion annually for

the past three years. For 1960, exports are estimated at $4.5 billion, the

highest volume on record. Under the Food-for-Peace program, the largest

wheat transaction in history was consummated with India in 1960.


The problems of low-income farm families received systematic attention for

the first time in the Rural Development Program. This program has gone

forward in 39 States, yielding higher incomes and a better living for rural

people most in need.


The Rural Electrification Administration has helped meet the growing demand

for power and telephones in agricultural areas. Ninety-seven percent of all

farms now have central station electric power. Dependence upon Federal

financing should no longer be necessary.


The Farm Credit Administration has been made an independent agency more

responsive to the farmer's needs.


The search for new uses for our farm abundance and to develop new crops for

current needs has made major progress. Agricultural research appropriations

have increased by 171 percent since 1953.


Farmers are being saved approximately $80 million a year by the repeal in

1956 of Federal taxes on gasoline used in tractors and other machinery.


Since 1953, appropriations have been doubled for county agents, home agents

and the Extension Service.


Eligibility for Social Security benefits has been extended to farmers and

their families.


Yet in certain aspects our agricultural surplus situation is increasingly

grave. For example, our wheat stocks now total 1.3 billion bushels. If we

did not harvest one bushel of wheat in this coming year, we would still

have all we could eat, all we could sell abroad, all we could give away,

and still have a substantial carryover. Extraordinary costs are involved

just in management and disposal of this burdensome surplus. Obviously

important adjustments must still come. Congress must enact additional

legislation to permit wheat and other farm commodities to move into regular

marketing channels in an orderly manner and at the same time afford the

needed price protection to the farmer. Only then will agriculture again be

free, sound, and profitable.


NATURAL RESOURCES


New emphasis has been placed on the care of our national parks. A ten year

development program of our National Park System--Mission 66--was initiated

and 633,000 acres of park land have been added since 1953.


Appropriations for fish and wildlife operations have more than doubled.

Thirty-five new refuges, containing 11,342,000 acres, have been added to

the national wildlife management system.


Our Nation's forests have been improved at the most rapid rate in history.


The largest sustained effort in water resources development in our history

has taken place. In the field of reclamation alone, over 50 new projects,

or project units, have been authorized since 1953--including the billion

dollar Colorado River Storage Project. When all these projects have been

completed they will have a storage capacity of nearly 43 million

acre-feet--an increase of 50 percent over the Bureau of Reclamation's

storage capacity in mid-1953. In addition, since 1953 over 450 new

navigation flood control and multiple purpose projects of the Corps of

Engineers have been started, costing nearly 6 billion dollars.


Soil and water conservation has been advanced as never before. One hundred

forty-one projects are now being constructed under the Watershed Protection

Program.


Hydroelectric power has been impressively developed through a policy which

recognizes that the job to be done requires comprehensive development by

Federal, State, and local governments and private enterprise. Teamwork is

essential to achieve this objective.


The Federal Columbia River power system has grown from two multipurpose

dams with a 2.6 million kilowatt capacity to 17 multipurpose projects

completed or under construction with an ultimate installed capacity of 8.1

million kilowatts. After years of negotiation, a Columbia River Storage

Development agreement with Canada now opens the way for early realization

of unparalleled power, flood control and resource conservation benefits for

the Pacific Northwest. A treaty implementing this agreement will shortly be

submitted to the Senate.


A farsighted and highly successful program for meeting urgent water needs

is being carded out by converting salt water to fresh water. A 75 percent

reduction in the cost of this process has already been realized.


Continuous resource development is essential for our expanding economy. We

must continue vigorous, combined Federal, State and private programs, at

the same time preserving to the maximum extent possible our natural and

scenic heritage for future generations.


EDUCATION, SCIENCE, AND TECHNOLOGY


The National Defense Education Act of 1958 is already a milestone in the

history of American education. It provides broad opportunities for the

intellectual development of all children by strengthening courses of study

in science, mathematics, and foreign languages, by developing new graduate

programs to train additional teachers, and by providing loans for young

people who need financial help to go to college.


The Administration proposed on numerous occasions a broad new five-year

program of Federal aid to help overcome the classroom shortage in public

elementary and secondary schools. Recommendations were also made to give

assistance to colleges and universities for the construction of academic

and residential buildings to meet future enrollment increases.


This Administration greatly expanded Federal loans for building dormitories

for students, teachers, and nurses training, a program assisting in the

construction of approximately 200,000 living accommodations during the past

8 years.


There has been a vigorous acceleration of health, resource and education

programs designed to advance the role of the American Indian in our

society. Last fall, for example, 91 percent of the Indian children between

the ages of 6 and 18 on reservations were enrolled in school. This is a

rise of 12 percent since 1953.


In the field of science and technology, startling strides have been made by

the new National Aeronautics and Space Administration. In little more than

two years, NASA has successfully launched meteorological satellites, such

as Tiros I and Tiros II, that promise to revolutionize methods of weather

forecasting; demonstrated the feasibility of satellites for global

communications by the successful launching of Echo I; produced an enormous

amount of valuable scientific data, such as the discovery of the Van Allen

Radiation Belt; successfully launched deep-space probes that maintained

communication over the greatest range man has ever tracked; and made real

progress toward the goal of manned space flights.


These achievements unquestionably make us preeminent today in space

exploration for the betterment of mankind. I believe the present

organizational arrangements in this area, with the revisions proposed last

year, are completely adequate for the tasks ahead.


Americans can look forward to new achievements in space exploration. The

near future will hold such wonders as the orbital flight of an astronaut,

the landing of instruments on the moon, the launching of the powerful giant

Saturn rocket vehicles, and the reconnaissance of Mars and Venus by

unmanned vehicles.


The application of atomic energy to industry, agriculture, and medicine has

progressed from hope and experiment to reality. American industry and

agriculture are making increasing use of radioisotopes to improve

manufacturing, testing, and crop-raising. Atomic energy has improved the

ability of the healing professions to combat disease, and holds promise for

an eventual increase in man's life span.


Education, science, technology and balanced programs of every kind-these

are the roadways to progress. With appropriate Federal support, the States

and localities can assure opportunities for achieving excellence at all

levels of the educational system; and with the Federal government

continuing to give wholehearted support to basic scientific research and

technology, we can expect to maintain our position of leadership in the

world.


CIVIL RIGHTS


The first consequential Federal Civil Rights legislation in 85 years was

enacted by Congress on recommendation of the Administration in 1957 and

1960.


A new Civil Rights Division in the Department of Justice has already moved

to enforce constitutional rights in such areas as voting and the

elimination of Jim Crow laws.


Greater equality of job opportunity in Federal employment and employment

with Federal contractors has been effectively provided through the

President's Committees on Government Contracts and Government Employment

Practices.


The Civil Rights Commission has undertaken important surveys in the fields

of housing, voting, and education.


Segregation has been abolished in the Armed Forces, in Veterans' Hospitals,

in all Federal employment, and throughout the District of

Columbia--administratively accomplished progress in this field that is

unmatched in America's recent history.


This pioneering work in civil rights must go on. Not only because

discrimination is morally wrong, but also because its impact is more than

national--it is world-wide.


HEALTH AND WELFARE


Federal medical research expenditures have increased more than fourfold

since 1954.


A vast variety of the approaches known to medical science has been explored

to find better methods of treatment and prevention of major diseases,

particularly heart diseases, cancer, and mental illness.


The control of air and water pollution has been greatly strengthened.


Americans now have greater protection against harmful, unclean, or

misrepresented foods, drugs, or cosmetics through a strengthened Food and

Drug Administration and by new legislation which requires that food

additives be proved safe for human consumption before use.


A newly established Federal Radiation Council, along with the Department of

Health, Education, and Welfare, analyzes and coordinates information

regarding radiological activities which affect the public health.


Medical manpower has been increased by Federal grants for teaching and

research.


Construction of new medical facilities has been stepped up and extended to

include nursing homes, diagnostic and treatment centers, and rehabilitation

facilities.


The vocational rehabilitation program has been significantly expanded.

About 90,000 handicapped people are now being rehabilitated annually so

they are again able to earn their own living with self-respect and

dignity.


New legislation provides for better medical care for the needy aged,

including those older persons, who, while otherwise self-sufficient, need

help in meeting their health care costs. The Administration recommended a

major expansion of this effort.


The coverage of the Social Security Act has been broadened since 1953 to

make 11 million additional people eligible for retirement, disability or

survivor benefits for themselves or their dependents, and the Social

Security benefits have been substantially improved.


Grants to the States for maternal and child welfare services have been

increased.


The States, aided by Federal grants, now assist some 6 million needy people

through the programs of Old Age Assistance, Aid to Dependent Children, Aid

to the Blind, and Aid to the Totally and Permanently Disabled.


HOUSING AND URBAN DEVELOPMENT


More houses have been built during the past eight years--over nine

million--than during any previous eight years in history.


An historic new approach--Urban Renewal--now replaces piecemeal thrusts at

slum pockets and urban blight. Communities engaged in urban renewal have

doubled and renewal projects have more than tripled since 1953. An

estimated 68 projects in 50 cities will be completed by the end of the

current fiscal year; another 577 projects will be underway, and planning

for 310 more will be in process. A total of $2 billion in Federal grants

will ultimately be required to finance these 955 projects.


New programs have been initiated to provide more and better housing for

elderly people. Approximately 25,000 units especially designed for the

elderly have been built, started, or approved in the past three years.


For the first time, because of Federal help and .encouragement, 90

metropolitan areas and urban regions and 1140 smaller towns throughout the

country are making comprehensive development plans for their future growth

and development.


American communities have been helped to plan water and sanitation systems

and schools through planning advances for 1600 public works projects with a

construction cost of nearly $2 billion.


Mortgage insurance on individual homes has been greatly expanded. During

the past eight years, the Federal Housing Administration alone insured over

21/2 million home mortgages valued at $27 billion, and in addition, insured

more than ten million property improvement loans.


The Federal government must continue to provide leadership in order to make

our cities and communities better places in which to live, work, and raise

families, but without usurping rightful local authority, replacing

individual responsibility, or stifling private initiative.


IMMIGRATION


Over 32,000 victims of Communist tyranny in Hungary were brought to our

shores, and at this time our country is working to assist refugees from

tyranny in Cuba.


Since 1953, the waiting period for naturalization applicants has been

reduced from 18 months to 45 days.


The Administration also has made legislative recommendations to liberalize

existing restrictions upon immigration while still safeguarding the

national interest. It is imperative that our immigration policy be in the

finest American tradition of providing a haven for oppressed peoples and

fully in accord with our obligation as a leader of the free world.


VETERANS


In discharging the nation's obligation to our veterans, during the past

eight years there have been:


The readjustment of World War II veterans was completed, and the five

million Korean conflict veterans were assisted in achieving successful

readjustment to civilian life;


Increases in compensation benefits for all eligible veterans with service

connected disabilities;


Higher non-service connected pension benefits for needy veterans;


Greatly improved benefits to survivors of veterans dying in or as a result

of service;


Authorization, by Presidential directive, of an increase in the number of

beds available for sick and disabled veterans;


Development of a 12-year, $900 million construction program to modernize

and improve our veterans hospitals;


New modern techniques brought into the administration of Veterans Affairs

to provide the highest quality service possible to those who have defended

us.


CONCLUSION


In concluding my final message to the Congress, it is fitting to look back

to my first--to the aims and ideals I set forth on February 2, 1953: To use

America's influence in world affairs to advance the cause of peace and

justice, to conduct the affairs of the Executive Branch with integrity and

efficiency, to encourage creative initiative in our economy, and to work

toward the attainment of the well-being and equality of opportunity of all

citizens.


Equally, we have honored our commitment to pursue and attain specific

objectives. Among them, as stated eight years ago: strengthening of the

mutual security program; development of world trade and commerce; ending of

hostilities in Korea; creation of a powerful deterrent force; practicing

fiscal responsibility; checking the menace of inflation; reducing the tax

burden; providing an effective internal security program; developing and

conserving our natural resources; reducing governmental interference in the

affairs of the farmer; strengthening and improving services by the

Department of Labor, and the vigilant guarding of civil and social fights.


I do not close this message implying that all is well--that all problems

are solved. For progress implies both new and continuing problems and,

unlike Presidential administrations, problems rarely have terminal dates.


Abroad, there is the continuing Communist threat to the freedom of Berlin,

an explosive situation in Laos, the problems caused by Communist

penetration of Cuba, as well as the many problems connected with the

development of the new nations in Africa. These areas, in particular, call

for delicate handling and constant review.


At home, several conspicuous problems remain: promoting higher levels of

employment, with special emphasis on areas in which heavy unemployment has

persisted; continuing to provide for steady economic growth and preserving

a sound currency; bringing our balance of payments into more reasonable

equilibrium and continuing a high level of confidence in our national and

international systems; eliminating heavily excessive surpluses of a few

farm commodities; and overcoming deficiencies in our health and educational

programs.


Our goal always has been to add to the spiritual, moral, and material

strength of our nation. I believe we have done this. But it is a process

that must never end. Let us pray that leaders of both the near and distant

future will be able to keep the nation strong and at peace, that they will

advance the well-being of all our people, that they will lead us on to

still higher moral standards, and that, in achieving these goals, they will

maintain a reasonable balance between private and governmental

responsibility.


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