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reductions in cost, reassess priorities for all programs and operations, identify and remove roadblocks to economy, and verify reported savings.

The savings achieved under the program so far are truly significant.

-The Defense Department saved $4.5 billion in fiscal 1966 as a result of actions taken over the past several years. -Nondefense agencies saved $1.2 billion from steps taken in fiscal 1966, and nearly a billion dollars in the first half of fiscal 1967 alone.

This is an impressive record. These savings helped us to meet our commitments abroad and to finance essential programs at home. But we are not content with our past progress.

I have been determined from the day I took office to do everything in my power to bring about more efficient and effective Government. I expect everyone in Government to search unceasingly for better ways to do his job.

In my message to Congress last March on "The Quality of American Government," I said:

"To broaden and strengthen the Federal

Government's drive for economy and efficiency in all its operations, I will issue an Executive Order establishing an Advisory Council on Cost Reduction."

My purpose in taking this step now is to bring together in a more organized manner the know-how developed in various areas of the Government and private life. By concentrating our insights, we can bring renewed impetus to this program and benefit every American taxpayer.

The Director of the Bureau of the Budget will be Chairman of the Council. Sitting with him will be the Secretary of Defense, the Chairman of the Civil Service Commission, and the Administrator of General Services.

I shall later appoint to the Council other members from the Government, as well as representatives of industry and the public. NOTE: The President's Advisory Council on Cost Reduction was established by Executive Order 11353 of May 23, 1967 (3 Weekly Comp. Pres. Docs., P. 775; 32 F.R. 7623; 3 CFR, 1967 Comp., p. 286).

The Government-wide cost reduction program was initiated in August 1965 (see 1965 volume, this series, Book II, Item 447).

For the President's message to Congress on the quality of American government, see Item 121.

233 Statement by the President on Rising Tensions in the Near East.

May 23, 1967

IN recent days, tension has again arisen. along the armistice lines between Israel and the Arab States. The situation there is a matter of grave concern to the whole international community. We earnestly support all efforts, in and outside the United Nations and through its appropriate organs, including the Secretary General, to reduce tensions and to restore stability. The Secretary General has gone to the Near East on his mission of peace with the hopes and prayers of men

of good will everywhere.

The Near East links three continents. The birthplace of civilization and of three of the world's great religions, it is the home of some 60 million people and the crossroads between East and West.

The world community has a vital interest. in peace and stability in the Near East, one that has been expressed primarily through continuing United Nations action and assistance over the past 20 years.

The United States, as a member of the United Nations, and as a nation dedicated to a world order based on law and mutual respect, has actively supported efforts to maintain peace in the Near East.

The danger, and it is a grave danger, lies in some miscalculation arising from a misunderstanding of the intentions and actions of others.

The Government of the United States is deeply concerned, in particular, with three potentially explosive aspects of the present confrontation.

First, we regret that the General Armistice Agreements have failed to prevent warlike acts from the territory of one against another government, or against civilians, or territory, under control of another government.

Second, we are dismayed at the hurried withdrawal of the United Nations Emergency Force from Gaza and Sinai after more than 10 years of steadfast and effective service in keeping the peace, without action by either the General Assembly or the Security Council. We continue to regard the presence of the United Nations in the area as a matter of fundamental importance and shall support its continuance with all possible vigor.

Third, we deplore the recent buildup of military forces and believe it a matter of urgent importance to reduce troop concentrations. The status of sensitive areas, as the Secretary General emphasized in his report to the Security Council, such as the Gaza strip and the Gulf of Aqaba, is a particularly important aspect of the situation.

In this connection, I want to add that the purported closing of the Gulf of Aqaba to Israeli shipping has brought a new and grave dimension to the crisis. The United States considers the gulf to be an international waterway and feels that a blockade of Israeli shipping is illegal and potentially disastrous to the cause of peace. The right of

free, innocent passage of the international waterway is a vital interest of the international community.

The Government of the United States is seeking clarification on this point. We have urged Secretary General Thant to recognize the sensitivity of the Aqaba question and to give it the highest priority in his discussions in Cairo.

To the leaders of all the nations of the Near East, I wish to say what three Presidents have said before-that the United States is firmly committed to the support of the political independence and territorial integrity of all the nations of the area. The United States strongly opposes aggression by anyone in the area, in any form, overt or clandestine. This has been the policy of the United States led by four Presidents-President Truman, President Eisenhower, President Kennedy, and myself-as well as the policy of both of our political parties. The record of the actions of the United States over the past 20 years, within and outside the United Nations, is very clear on this point.

The United States has consistently sought to have good relations with all the states of the Near East. Regrettably this has not always been possible, but we are convinced that our differences with individual states of the area and their differences with each other must be worked out peacefully and in accordance with accepted international practice.

We have always opposed-and we oppose in other parts of the world at this momentthe efforts of other nations to resolve their problems with their neighbors by aggression. We shall continue to do so. And we appeal to all other peace-loving nations to do likewise.

We call upon all concerned to observe in a spirit of restraint their solemn responsibilities under the Charter of the United Nations and the General Armistice Agreements. These

provide an honorable means of preventing hostilities until, through the efforts of the international community, a peace with justice and honor can be achieved.

I have been in close contact and will be in the days ahead with Ambassador Goldberg at

the United Nations, where we are pursuing
the matter with great vigor, and hope the
Security Council can act effectively.

NOTE: The President read the statement at 6:10 p.m.
in the Fish Room at the White House.
See also Items 254, 255.

234 Remarks to a Group of Visiting Japanese Governors. May 24, 1967

I AM HAPPY to extend to each one of you-on behalf of all the American peopleour welcome to the United States, and a warm welcome to the White House.

The mutual visits which the Governors of Japan and the Governors of the United States have been making for the past 3 years are, I think, a great benefit to our countries.

Much has been made of the great differences between our countries-differences of culture, religion, and geography. But I am struck by our similarities.

Our two countries are among the world's most active and vital and prosperous. And we are among the most deeply involved in world affairs.

Both of us face the problems of success: challenges of growth, of rising affluence, of social and political change.

In a turbulent world, the answers which our countries find to those problems will have influence far beyond our borders.

That is why I am grateful for the mutual understanding and the common progress which result from your contacts with our Governors-and theirs with you.

You are advancing the noblest cause of all-the cause of peace.

In meeting the problem of urban growth, for instance, I am struck by how our approaches coincide.

Both Japan and America have experienced explosive urban growth. Two-thirds of our

people now live in cities. Coping with this explosion tests not only our technology, but the very power of democracy to govern creatively and effectively.

Our responses are remarkably similar. Both of us cherish the principle of local initiative, local action.

And we have a great deal to learn from each other.

We are already learning from Japan about the development of high-speed railways. When we see the Tokyo-Osaka express train streaking along at 125 miles an hour we dream of the day when trains on our Eastern Seaboard will move as fast.

And, at a time when mass urban transit is a major national issue in the United States, we are studying your suburban rail systems.

In this and other fields, the exchange of ideas can be a way to better understanding between our people. We believe it leads to eventual peace and progress all over the world.

I hope that there are developments in our country which will be useful to you in Japan.

Our country is facing great new problems-and establishing great new programs. As a result, our Federal system is being challenged.

We believe that we will meet that challenge. Right now, we are establishing better communication, better cooperation, better

understanding between our States and the Federal Government.

On your visit, you can see that happening. I hope it gives you some ideas to take home. I am glad to observe that you are having lunch today with our friends in the Congress. Gentlemen, you do us honor by your

visit.

I salute you-and I salute the National Governors' Conference for its part in this venture of understanding.

NOTE: The President spoke at 12 noon in the Cabinet Room at the White House.

As printed above, this item follows the text released by the White House Press Office.

235 Statement by the President Upon Awarding the Distinguished Service Medal to Maj. Gen. James W. Humphreys, Jr., USAF. May 24, 1967

GENERAL HUMPHREYS, a career officer in the Air Force Medical Corps, has just returned from 2 years in Vietnam. He was there, as part of our AID program, to help develop a national medical program for the Vietnamese people.

In the midst of war, he was deeply committed to advancing the works of peace. And he succeeded outstandingly.

When he arrived, there were 80 Americans working on health programs for the benefit of that sorely beset people. Today there are some 900-eleven times as many. And they have been joined by some 500 medical per

sonnel from other free nations.

They are now at work in 40 provincial hospitals, district, village, and hamlet health stations throughout South Vietnam.

Their work has revolutionized the care of the sick. They have brought hope where once there was only despair. They have helped us, and the Government of Vietnam, demonstrate anew that we are determined to

bring them the better life for which they long, and which is their right.

NOTE: The ceremony was held at 1:50 p.m. in the Oval Room at the White House. The text of the citation follows:

Major General James W. Humphreys, Jr. distinguished himself by exceptionally meritorious service to the United States in a position of great responsibility as Assistant Director for Public Health, United States Agency for International Development to the Republic of Vietnam from 9 June 1965 to 31 May 1967. In this very important assignment as chief American medical officer in Vietnam, General Humphreys demonstrated exceptional leadership, organizational ability, foresight and unselfish devotion to duty in creating a national health program which revolutionized treatment and care of the sick in Vietnam and increased, many fold, the survivability of persons wounded or ill in villages and rural areas. General Humphreys' remarkable achievements fortified the Vietnamese will to resist aggression and have helped the Government of Vietnam in its efforts to serve the people and to win their confidence. The singularly distinctive accomplishments of General Humphreys are in keeping with the highest standards of performance and traditions of the military service and reflect great credit upon himself and the United States Air Force.

236 Special Message to the Congress on Election Reform: The May 25, 1967

Political Process in America.

To the Congress of the United States:

I. INTRODUCTION

Public participation in the processes of government is the essence of democracy. Public confidence in those processes strengthens democracy.

No Government can long survive which does not fuse the public will to the institutions which serve it. The American system has endured for almost two centuries because the people have involved themselves in the work of their Government, with full faith in the meaning of that involvement.

But Government itself has the continuing obligation-second to no other-to keep the machinery of public participation functioning smoothly and to improve it where necessary so that democracy remains a vital and vibrant institution.

It is in the spirit of that obligation that I send this message to the Congress today. I propose a five-point program to:

-Reform our campaign financing laws to assure full disclosure of contributions and expenses, to place realistic limits on contributions, and to remove the meaningless and ineffective ceilings on campaign expenditures.

-Provide a system of public financing for

Presidential election campaigns. -Broaden the base of public support for election campaigns, by exploring ways to encourage and stimulate small contributions.

-Close the loopholes in the Federal laws regulating lobbying.

-Assure the right to vote for millions of

Americans who change their residences.

II. THE ELECTION REFORM ACT OF 1967

In our democracy, politics is the instrument which sustains our institutions and keeps them strong and free.

The laws which govern political activity should be constantly reviewed-and reshaped when necessary to preserve the essential health and vitality of the political process which is so fundamental to our way of life.

In my 1966 State of the Union message I called attention to the need for a basic reform of the laws governing political campaigns in these words:

"...I will submit legislation to revise the present unrealistic restrictions on contributions to prohibit the endless proliferation of committees, bringing local and state committees under the act-and to attach strong teeth and severe penalties to the requirement of full disclosure of contributions. . . ."

A year ago this month, I submitted my proposals to the Congress in the Election Reform Act of 1966.

That measure reflected my concern, as one who has been involved in the process of elective Government for over three decades, that the laws dealing with election campaigns have not kept pace with the times.

The Federal Corrupt Practices Act was passed 42 years ago. The Hatch Act was passed 27 years ago. Inadequate in their scope when enacted, they are now obsolete. More loophole than law, they invite evasion and circumvention.

A sweeping overhaul of the laws governing election campaigns should no longer be delayed.

Basic reform-with an emphasis on clear and straightforward disclosure-is essential

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