Memphis, Tennessee Remarks at the Democratic National Committee's National Finance Council Breakfast.

I was standing outside in the hall, listening to the introduction of the Cabinet. I had thought our administration had done a good job up until now. But when Cabinet officers still get applause after 2 years, something's wrong. [Laughter] The ones that got the most applause are in trouble with me. [Laughter]

As a matter of fact, I think that this conference, which I personally did not approve when it was decided in 1976, is turning out to be a very constructive and very productive meeting. It's good for Democratic delegates throughout the Nation to be interested enough to seek a chance to come here and meet with others; some of them at a substantial sacrifice, financially. And ! think the enthusiasm that has already been exhibited, the intense interest in issues has certainly been constructive and instructive to me.

The press and others had anticipated sharp divisions, schisms, debates that were not harmonious at all and not constructive. But that has not been the case. I think the more that our own administration has been assessed, the productivity and leadership of the Congress has been assessed, the more the potential opposition and intense criticism has gone away. It's good for us to be observed with a microscope and for every tiny facet of leadership in our Federal Government to be carefully judged and for us to have advice and counsel and criticism when it is deserved.

I know that the approach of this conference has made me much more aware of a need to inventory what we have done and to analyze our own accomplishments and mistakes and to make plans to present, in a factual but in a positive light, what the Democratic administration has brought to our country.

I'm proud of what we've done. I think the best accomplishment that we can observe is the harmony that exists between me and the Congress, between my entire administration and the State and local officials. It's kind of a new era in American politics, the reestablishment of the sense and the system of federalism which was really totally absent the 8 years before I became President.

I was Governor for 4 of those years, and a very active and enthusiastic and eager Governor. And there was no access from me, representing 5 million people in Georgia, to the core of leadership in Washington; even at the sub-Cabinet level, it was almost impossible for me to get an appointment or to discuss issues that were being contemplated for implementation by the Nixon and Ford administrations. But that's been changed. And I think we've seen a building of a foundation, not only for greater accomplishments in the future but also for greater political achievements in the future.

Although we lost some crucial and disappointing campaign efforts last month, the overall outcome of the election showed a massive approbation and confidence among the American people in Democrats. We have more than 60 percent of the Members of the House who are Democrats; more than 60 percent of the Governors and Senators—just about 60 percent, a very heavy majority. And I think that this has been a notable contribution made by John White, a tremendous chairman who has helped to bring us all together.

We've got a long way to go, both politically and in an administrative and leadership capacity. I'm now involved in the most unpleasant portion of my year-it was the same a year ago—the preparation of the Federal budget. But I'm determined to meet the goals that I've set for myself, and I am reassured in those long, tedious sessions by a firm knowledge that you support those goals and that the average American also supports those goals.

I'm perfectly willing, as I see the evolution of the budget toward a final conclusion, to be judged personally on whether it is fair to the American people, whether our obligations overseas are met, our defense commitments are adequate, the social programs are also designed in a proper priority and at a proper level to meet the legitimate needs of our people. And these are not incompatible with the commitment that I have made to control inflation.

We inherited a mess in bureaucratic terms, in budget terms, in the administration of existing social programs, and in the relationships that did exist between the White House and the people of our country, and the White House and the Congress. Any thoughts that go back to 2 or more years ago would prove that what I've just said is true. Two years is not a long time in the historical evolution of a nation. But we've not only achieved things already of which we can be legitimately proud, but we've laid a groundwork or basis for even more progress in the future.

In international affairs, I'm very pleased with what we have done. We have not been afraid to become involved in highly controversial, sometimes hopeless, apparently hopeless efforts to bring peace to others throughout the world. We didn't have to attempt to bring majority rule and democratic government to Namibia and Rhodesia. This has been an intransigent problem for years, even generations. But we've been willing to put my own reputation on the line to risk disappointments and defeats, castigations from all sides, to join in with our Western Allies and try to bring those goals into fruition.

Andy Young in the United Nations has raised a new image of our country to more than a hundred newly formed or small or weak or black or yellow or brown nations. Whereas formerly we were considered to be their prime opponent, we were the target of their attacks, now they look upon us as an ally, as a representative of the finer and decent aspects of life. This is an accomplishment in itself.

And peace generally pervades in southern Africa, even though the threat of violence still exists. We are making some progress in Cyprus. We've got remarkably good progress in Nicaragua. And instead of violence and thousands of people losing their lives in Nicaragua, we joined in, as you know, with the Dominican Republic and Guatemala in what seemed to be an absolutely hopeless case.

And now last night the FAO, representing the Sandinistas, and the Somoza government has decided to sit down and begin negotiating today, not on how to stop massive bloodshed, but on the terms of a plebiscite to determine the government of Nicaragua in the future. We can't say that we've reached complete success, but we were willing to get in and use the tremendous influence of the United States in a beneficial way.

I won't repeat what I said last night about the Middle East. Cy Vance is arriving in Egypt today. He'll be negotiating with President Sadat. He'll go from there to Israel. We hope and pray we'll be successful. We don't have control over that, obviously, because those are two independent and proud nations. But we've used our influence in a beneficial way, and sometimes, as you know, I've been severely criticized by Americans who felt that I was going too far, not going far enough, or taking a biased position. But I think it's accurate to say that both those governments trust us to do our best.

We're trying to reach agreement with the Soviet Union on a SALT II treaty, and we're making good progress. My anticipation is that we will have, soon, a success. This obviously can't be guaranteed, because we don't ever know what the Soviet Government will do. But the differences that still divide us are very tiny compared to the differences that we've already resolved. But we've not been afraid to stand firm. I have never let a time deadline put me in a vulnerable position. We've not been hasty. And I can assure you that when the SALT agreement is presented to the American people, that it will meet the standards that we set forth.

I think we've strengthened alliances that were damaged severely, and we've raised high the banner of human rights.

These are the kinds of things that we have done so far that bring me gratification. But the main thing is the future. And that's where I would like to thank you for what you've done to keep the Democratic Party viable, to keep the Democratic Party together, and to keep the Democratic Party in the forefront of the domestic and foreign commitments that exemplify the greatness of our Nation. In times of extreme need, under John White, under Bob Strauss, both of whom are here, Ken Curtis, you helped financially, and this has been one of the most gratifying aspects of my own relatively brief political life.

When we were in deep distress, you came through with no thought or expectation of benefiting personally. It's the kind of generosity that too often goes unrecognized, but I recognize it, and I thank you for it. You'll never be thanked adequately, but the financial stability of our party is extremely important.

As you know, there again, we inherited a $9 million debt, left over from ancient past campaigns. [Laughter] And we've not only tried to keep our party viable financially by tight management and the elimination of waste, but we've also had to pay off those back debts. And I feel deeply indebted to you.

The last thing I want to say is this: We are partners in every sense of the word. If and when we do have success in controlling inflation, or putting our American people back to work, or building homes, or providing better education, or bringing peace to the Mideast, or a good SALT agreement, or better relations with the developing nations of the world, it's not the President who's done it; it's not even the Congress who has done it; it's you, who represent the families and the communities and the towns and cities and counties and States throughout our Nation, that never yield, in spite of disappointing news—sometimes, even embarrassments-coming out of Washington, in your commitment to a finer and greater America.

And I feel a personal sense of gratification to each one of you. And I feel the assurance of future success, because that partnership is sound and because your hopes, your commitments, your unselfishness, your understanding is unvarying.

And as President of the United States, as the titular head of the Democratic Party, I thank you, one and all, from the bottom of my heart.

Thank you.