Remarks at the Swearing In of John T. Dunlop as Director of the Cost of Living Council.

I WANT to say to Dr. Dunlop, who has done so many very fine jobs for the Government in many capacities, that we appreciate his taking this very heavy assignment and very important assignment.

I noted that since he is now the official head Of Phase III at the Cost of Living Council that there has been some concern expressed as to how much he is going to be backed and whether or not Phase III has teeth in it.

I want to say to you, Dr. Dunlop, that there is a stick in that closet and it is a very big stick, and I will never hesitate to use it in the fight against higher prices or higher taxes, so you let me know when you need a stick. I hope that you can do it with persuasion, but we are ready to use the stick, too.

DR. DUNLOP. Thank you, Mr. President, for that kind of 'backing. My view is that with sound fiscal restraint, hard work on food prices, and the kind of cooperation from labor and management that we are getting, that we can have a really effective constraint on inflation in the year ahead, and I think we all are going to cooperate whether we like it or not.

THE PRESIDENT. I think one of the most encouraging things about your appointment is that it has such unanimous support from the business community and the labor community; and the responsibility of the major business concerns in this country during Phase II and of the major labor organizations during Phase II made it work. That same responsibility under your leadership, I think, will make this work. And when I speak of that stick, I am only referring to those few who may get out of line, and when they do, you let me know.

DR. DUNLOP. I certainly will.

THE PRESIDENT. Congratulations and condolences. He has a tough job.