Science and Technology Message to the Congress.

To the Congress of the United States:

This year the world marks centennials associated with two great men of science and technology. Albert Einstein, who was born March 14, 1879, enlarged our knowledge and understanding of the universe and changed the way we look at space and time. He was an early pathfinder in the remarkable era of scientific exploration in which we live. In that same year, Thomas Alva Edison invented the electric light. He was a great technologist who devoted his life to the creation of new products to meet human needs.

The world was changed by the work of these two men. The vast changes that have grown out of their work are part of the reason that the forces these two men represent, science and technology, have become increasingly important in our lives over the last century. We look to the fruits of science and technology to improve our health by curing illness and preventing disease and disability. We expect science and technology to find new sources of energy, to feed the world's growing population, to provide new tools for our national security, and to prevent unwise applications of science and technology. The health of our economy has been especially tied to science and technology; they have been key factors in generating growth, jobs, and productivity through innovation. Indeed, most of the great undertakings we face today as a Nation have a scientific or technological component.

Yet, despite the centrality of science and technology in our lives, the Federal government has rarely articulated a science and technology policy for the future. This Message sets forth that policy. The thesis is that new technologies can aid in the solution of many of our Nation's problems. These technologies in turn depend upon a fund of knowledge derived from basic research. The Federal government should therefore increase its support both for basic research and, where appropriate, for the application of new technologies. My Administration has done just that.

Within the coming months, the Congress and I must work together on strategic arms limitation, national health care, energy supply, industrial innovation, and economic growth—all of which have significant scientific and technological dimensions.

This message to the Congress:

—describes the Administration's policy perspective on science and technology and the roles of government, industry, universities, and the public in support of science and technology; —highlights some of the most important science and technology initiatives undertaken in my Administration in domestic, national security, and international arenas;

—outlines the potential effects of science and technology on our Nation for the decade of the 1980s and beyond; and

—assists the Congress in its task of considering the research and development programs of our Departments and agencies as recommended in my 1980 budget.

In transmitting this message, I call on the Congress to join my Administration in its commitment to nonpartisan investment in science and technology for our future.

OVERVIEW OF RESEARCH AND DEVELOPMENT

The Federal government's support of research and development is critical to the overall advance of science and technology. Federal responsibility lies in three major categories:

1. The largest fraction of the Federal investment serves the government's direct needs and responsibilities, such as defense, space, and air traffic control. Because of the technical challenges involved in meeting these national needs, there is a relatively large and broad Federal investment in research and development.

2. The Federal government undertakes research and development where there is a national need to accelerate the rate of development of new technologies in the private sector. This is especially true when the risk is great or the costs inordinately high, such as with many aspects of energy and transportation. However, we look to private industry to finance research and development activities having near-term commercial payoff. Industry is most sensitive to the marketplace, to the benefits of competition, and to the commercialization of new technologies. This view is consistent with that of industrial leaders who ask the Federal government more for a climate that fosters innovation, rather than for direct support of research and development with commercial potential. My proposals for applied research and development in Fiscal Year 1980 reflect my overall view of the Federal responsibility.

3. The Federal government supports basic research to meet broad economic and social needs. Basic research is a quest for new knowledge. Research to advance scientific understanding—in astronomy, geology, chemistry, the behavioral and social sciences, and other areas—expresses our innate curiosity about ourselves and the universe. But basic research also is the forerunner of new inventions, advances in health care, nutrition and agricultural production, many new products of commerce, and new technologies for defense, space, energy, and environmental protection.

Although the Federal government has long accepted its dominant role in 'basic research, support declined seriously in the late 1960s and early 1970's, especially in mission agencies whose objectives are ultimately dependent on research. I have sought to reverse these trends, by urging the Congress to increase funds for basic research and by redirecting attention toward longer-range needs of the Nation. I have proposed a 26 percent increase in basic research in the two years of my Administration. This policy is both feasible and necessary, even as we seek to reduce our Federal deficit and move towards a balanced budget. The $4.6 billion requested for basic research in Fiscal Year 1980 in various Departments' and agencies' budgets is essential, and deserves the full support of the Congress. Prudent planning for the future demands a deliberate and continued commitment to basic research.

The majority of Federal support for basic research is in the mission agencies, with the Departments of Health, Education, and Welfare (National Institutes of Health), Defense, Energy, and the National Aeronautics and Space Administration leading the way. Strengthening the commitment of these agencies to the support of ,basic research is a central element of our science and technology policy. The National Science Foundation is critical to balanced support for all scientific and engineering disciplines. My budget request this year for the Foundation exceeds $1 billion. In presenting this request, I urge that Congress consider the critical role played by the Foundation. I have instructed the Foundation to improve the instrumentation of our university research laboratories and to investigate the need for special programs to support young scientists.

With the budget for Fiscal Year 1979, and full approval of my Fiscal Year 1980 requests, we will have made major steps in restoring the necessary balance and commitment to our scientific future. I would ask the Congress, in acting on agency budgets, to be aware of the interrelationships and the importance of each agency's contribution to a comprehensive, national program in support of science and technology.

MEETING DOMESTIC NEED

The United States is acutely aware of its energy problems, its need for natural resources, the deleterious effects of inflation on all Americans, and suffering from disease. Our future as a democratic society depends on our ability to confront these challenges successfully.

While science and technology alone will not solve all our domestic problems, they hold the key to many aspects of the solutions. During this century, the United States has built a system of industrial, university, and government research laboratories that is unparalleled in the world. We have the national capacity to generate new basic knowledge, and to apply this knowledge to a broad range of problems. In this context I want to explain how my Administration is marshalling science and technology in terms of six domestic objectives:

—stimulating innovation in industry to sustain economic growth and improve productivity;

—meeting our energy, natural resource,

and food needs;

—promoting better health for all; —improving the regulatory process; —expanding the beneficial use of space; and

—understanding the forces of nature, natural disasters, and changes induced by man.

STIMULATING INNOVATION IN INDUSTRY

As a Nation, we face problems of inflation, unemployment, foreign competition, and a decline in the growth of national productivity. Yet, traditionally we have been an innovative society. Our economic growth depends on an ability to produce and market new goods. Between 30 and 40 percent of the Nation's economic growth in the last three decades resulted from technological innovation. Innovative industries are our most productive, create more new jobs, and are the most competitive in world markets. When too few new industries are established, or older ones do not develop enough new products and more efficient operations, the stagnation is reflected in our economy. A lag in productivity worsens inflation. Innovation is essential to our battle against inflation.

More and more countries are industrializing, building industries in which this country once was preeminent. These are countries whose competition is healthy. We welcome their prosperity. We do not seek to limit their growth through tariffs and other trade barriers. Rather, we must seek to improve our own performance through renewed innovation in fields where we excel—such as agriculture, drugs, microelectronics, computers, aircraft, space satellite systems and many other technologies. We also need to make our lower-technology industries more competitive through innovation.

Americans have not lost their ability to innovate. But there are restrictive elements at work. I began a domestic policy review of the factors affecting industrial innovation. This study, which will 'be completed in the near future, is headed by the Secretary of Commerce. It involves thirty Federal agencies and many advisory groups from private industry, labor, universities, and public interest. I expect many practical recommendations to help make our industries more innovative.

I also have established a Productivity Council consisting of many of the senior members of my Administration. The Council is examining how science and technology can improve Federal, State and local government productivity, as well as the productivity of the private sector.

MEETING OUR ENERGY, NATURAL RESOURCE, AND FOOD NEEDS

The United States is richly endowed with natural resources, both renewable ones such as fresh water, clean air, timber, and agricultural land; and nonrenewable resources such as fossil fuels and minerals. These resources have been a key factor in our prosperity as a Nation.

We are currently using the energy and mineral resources that are the richest, the easiest to find, and the cheapest to produce-with substantial depletion of some. Growth in population, industrial activity, and a new awareness of the need to protect our environment are straining even our renewable resources in many regions. We are being forced to make difficult decisions about allocating water and land to one or another competing uses.

Energy

In energy, we have closely related objectives:

• reducing dependence on foreign oil and minimizing the effects of supply disruptions, with conservation a key element;

• implementing programs and policies that encourage domestic energy production and efficient use, without serious inflationary impact;

• developing inexhaustible energy sources for sustained economic growth through the next century;

• making the transition from primary reliance on depletable oil and gas to predominant use of more abundant energy sources;

• developing safe nuclear power systems which, while limiting the potential for international proliferation of nuclear weapons, will increase our energy supply; and

• using all energy sources in ways that do not endanger the environment and the health or safety of our citizens.

Today's scientific and technological investments can have only limited impact on these objectives in the near term. It takes time to bring new technologies to the stage of economic competitiveness, to develop industrial capacity, and to allow energy users to adapt to change. My near-term program thus emphasizes conservation, the reduced consumption of oil where alternatives are available, and removal of obstacles to the use of currently available energy sources, such as nuclear power, coal, or solar water heating, and providing adequate incentives for crude oil and natural gas exploration.

In the mid- to longer-term, however, science and technology will help resolve our current dilemma. They will assist in locating and developing new sources of supply and in using those supplies more efficiently with reduced damage to health and environment. Recognizing this, the government is engaged in an aggressive research and development effort. In this year of limited budget resources, difficult judgments had to be made. Nevertheless, my budget for Fiscal Year 1980 recommends an investment of nearly $3.5 billion in civilian energy research and development.

This country is blessed with a uniquely abundant supply of energy in the form of coal and oil shale. Over one-third of the known world reserves for coal belong to the United States. A major challenge is to demonstrate technologies that will enable us to substitute these energy sources for our ever increasing oil imports. My program provides for the government to work closely with American industry to accelerate the demonstration of commercial-scale technologies that show promise of entering the commercial market. Such demonstrations will test technical feasibility and the economics of conversion processes. They will give us needed information on the environmental and institutional impact of the technologies involved.

For the longer-term, there are many options. Technologies such as solar energy and fusion, promise virtually inexhaustible supplies of electricity in the future. But if these technologies are to be a significant factor, we must invest now in developing them. And we are doing so, as illustrated in solar research and technology development. Our national investment in this field has grown from almost nothing five years ago to $850 million in FY 1980.

In working with the private sector, it is particularly important that the government does not displace the resources of industry devoted to new energy technology. We must be mindful that appreciable energy producing capacity will be developed only if the private sector is actively involved and committed to our research and development efforts. We must carefully structure the Federal programs in a way that will lead industry. to invest in, and ultimately commercialize, new energy technologies.

Nonfuel Minerals

In the area of nonfuel minerals, we must recognize the importance of new technology and understanding of earth sciences and chemical processing to permit us to find, produce, and utilize scarce and lower grade ores without degrading the environment. A major study of nonfuel minerals is being conducted by the Secretary of the Interior under the Domestic Policy Review process managed by the Domestic Policy Staff. The adequacy and orientation of private sector .and government investment in minerals research and development are being examined. I will report on the Secretary's recommendations later this year.

Agriculture

Our agricultural science and technology have made us preeminent in the world. Our ability to maximize yield from agricultural land, to develop pest-resistant, productive crop strains, and to improve animal husbandry is unsurpassed. We are able to produce sufficient quantities of agricultural products to meet the basic needs of Americans and simultaneously supply much of the rest of the world. Agricultural products form the largest category of our civil exports. A key element in our success is our traditional system of cooperation among all levels of government, universities, producers, and rural communities.

My Administration has strengthened agricultural research and development by focusing attention on basic plant and animal sciences; integrated pest management; human nutrition and food safety; land and water use and conservation; energy research, especially production of biomass for energy, and production of alcohols from agricultural residues. We also are working to strengthen Federal research, development, transfer, and assistance programs in freshwater and marine aquaculture. We have supplemented these activities with a competitive research grant program. This program will attract researchers from many branches of science to advance knowledge on which future gains in plant productivity, genetic breeding, and nutrition ultimately will depend. The competitive grant program—which will help us meet our future agricultural needs—merits strong Congressional support.

Water

Our understanding of the Nation's water supply and how to use it wisely has increased over the years, but many opportunities for improvement still remain. River basin assessments, ground water flow and recharge patterns, efficient irrigation methods, and pollution control techniques are receiving careful attention by the Departments of Agriculture and Interior, the Environmental Protection Agency, the Corps of Engineers, and others. As greater demands are placed on our water supply, particularly in the West, we must understand how best to use and conserve it. And we must assess the longterm implications of our actions. Protecting water quality is also important for agriculture and in our urban and rural communities. I am directing the Secretary of Interior and Director of the Office of Science and Technology Policy to set research priorities aimed at meeting our future water needs.

Ocean science and engineering have opened a new region of the globe for exploration and resource development. As we explore new areas of our continental shelf and deeper water for oil and gas, we must have the world's best technical capability to protect our ocean and coastal environment, to find new resources. and to tap them efficiently. Science and technology will continue to play a major role in these activities.

Department of Natural Resources

Developing and utilizing science and technology requires effective Federal organization. My proposal for creation of a Department of Natural Resources will permit better integration of research and development activities in the area of natural resources and the environment.

PROMOTING BETTER HEALTH FOR ALL AMERICANS

As I stated in my State of the Union Message, the opportunity to lead a healthier life is denied to many in our country because health care services are inaccessible or unaffordable or inefficient. My Administration is dedicated to correcting this situation through initiatives that will influence the structure, function, and economics of our health services systems.

The biomedical capability developed in this country since World War II is a magnificent demonstration of our scientific and technological prowess; it is the envy of the world. The biomedical, social, and behavioral sciences have made countless contributions to the health of our people in recent years. Over the past generation, we have seen polio vaccine and new drugs developed, the introduction of heart-lung machines, organ transplantation, and a new understanding of the chemistry of the brain. And we have made major gains against high blood pressure, heart attack, stroke, specific kinds of cancer, birth defects, infant and childhood disease, and mental retardation and mental illness.

Much remains to be done. The Department of Health, Education, and Welfare is developing a health research strategy with increased emphasis on promotion of good health and prevention of disease. There are many elements to this strategy. We are emphasizing research on reproductive biology and the underlying mechanisms of normal development and of disease. This work exploits the modern techniques of molecular biology, the neurosciences, behavioral sciences, and genetics. We are increasing laboratory, clinical, and epidemiological research on the role of nutrition in normal development, good health, and disease. We are expanding research and services to reduce unwanted pregnancy, smoking, and alcohol and drug abuse among adolescents. We are placing more emphasis on the causes of common disabling conditions such as diabetes, arthritis, and neurological and digestive diseases. And we are stressing research on the biological and behavioral aspects of mental illness, drug abuse, and alcoholism to reflect the recommendations of the Commission on Mental Health.

In spite of our desire for better health, government spending alone will not ensure success. As we have learned from the emphasis on cancer over the last decade, advances depend on new discoveries whose rate cannot be predicted. Therefore, we must nurture a broadly-focused program of research, with a clear, longterm commitment. Accordingly, in view of the substantial increases provided by Congress last year above my requested increase, I believe an effective biomedical research effort can be maintained without any further increase in 1980. This pace for biomedical research is appropriate; over the period of fiscal years 1979 and 1980, funding will increase at an average of twelve percent per year, thus maintaining our vigorous national effort in biomedical research. We have every reason to be optimistic that health research in the years ahead will save lives and improve the quality of life for millions of people.

IMPROVING THE REGULATORY PROCESS

Over the past 15 years our Nation has established or improved programs dealing with air and water pollution, toxic substances, noise, radiation, automotive safety and fuel economy, worker health and safety, and numerous other hazards. My Administration will continue to enforce these important laws faithfully. But additional improvements are possible and desirable. I am convinced that continued investment in science and technology is required to improve our regulatory programs. Environmental, health and safety regulatory decisions must have a sound scientific basis. Consequently I am strengthening the research and development base in both regulatory and research agencies. I have proposed an increase in the Environmental Protection Agency's health effects research program for Fiscal Year 1980, with greater emphasis on longterm research.

In addition, we have begun three interagency activities that will improve regulatory decisions. The Regulatory Council, which I established last fall to ensure that regulations achieve their statutory goals in the most economic and balanced way, has prepared the Nation's first Regulatory Calendar—an outlook of proposed regulatory activity. During the coming year, I expect the Council to identify government-wide scientific needs—programs, resources, and policies—that will improve the regulatory process. Second, the Interagency Regulatory Liaison Group—comprised of the Environmental Protection Agency, the Food and Drug Administration, the Occupational Safety and Health Administration, and the Consumer Product Safety Commission and Agriculture's Food Safety and Quality Service—will coordinate the participants' regulatory activities and research programs. Third, the regulatory agencies and the environmental health research agencies have joined in the new National Toxicology, Program to set priorities for the testing and evaluation of toxic chemicals.

To ensure that we make effective use of science and technology in the regulatory process, I am asking the Director of the Office of Science and Technology Policy to give this issue personal attention in the coming year. He is to work with the heads of agencies, the Chairman of the Regulatory Council, and others to identify gaps in research programs, seek ways for research and development agencies to work with regulatory agencies, and develop procedures for proper use of scientific and technological data.

EXPANDING THE BENEFICIAL USE OF SPACE

Two decades ago mankind entered the space age. In that short time we have witnessed remarkable accomplishments—evidence of this country's progress in science and technology. Americans have explored the moon. Space probes are examining the planets of our solar system, as recently highlighted by the historic encounter of the Voyager I spacecraft with Jupiter. Satellites are indispensable components of our communications networks, weather forecasts and international security systems.

With the advent of the Space Shuttle, we are entering a new era. The Space Shuttle—our national space transportation system for the coming decades—will increase the flexibility of space operations, reduce costs, improve national security, and make possible new cooperative activities with other nations. To meet the challenges ahead, I have established a National Space Policy that sets the direction of our space activities over the coming years. We will emphasize applications not only by the National Aeronautics and Space Administration, but also by other Federal agencies, foreign governments, and the private sector. The policy stresses the use of space technologies to meet human needs here on earth. The new technologies of the space age can further revolutionize our communication and possibly can provide new energy supply. They can improve our ability to manage wisely our renewable and nonrenewable resources, and monitor our environment. Assessment and forecasting of crop conditions and yields, and extension of communications to remote areas are examples. I am committed to the continuity of remote sensing data over the coming decade and I expect to propose additional initiatives in remote sensing of the earth's ocean, land resources, and environment in future years.

My space policy also encourages continued scientific investigation of the universe. We will conduct a vigorous program of exploration to understand the origin and evolution of the solar system. The space telescope—to be launched and serviced by the Space Shuttle—and freeflying satellites will usher in a new era of astronomy. From the clear environment of space, these new eyes will allow us to explore the distant galaxies and other astronomical phenomena—quasars, pulsars, and black holes. They will vastly expand our knowledge and understanding of the universe.

It is important that we maintain our world leadership in space. My policy is designed to encourage further advances in our use and exploration of space. We will provide adequate resources to maintain that leadership.

UNDERSTANDING THE FORCES OF NATURE, AND MAN-INDUCED ENVIRONMENTAL CHANGES

Man exists on this planet only with the consent of Nature. Natural forces like earthquakes, floods, storms, tsunamis, and landslides, as well as changes in weather that bring drought or excess rainfall, cause untold tragedy in loss of life, destruction of property, and disruption of economic and social structure.

Scientific advances of the past twenty years in geophysics, meteorology, and climatology have improved our understanding of natural phenomena. However, our predictive capability is limited and needs to be improved. And our capability for influencing natural forces for human benefit is nonexistent. On the other hand, our engineering skills, our ability to plan, our early warning and communications systems, and our ability to react quickly to prevent a breakdown of social order help to reduce the toll when natural disaster does strike. We possess sophisticated technology for construction, communications, transportation, monitoring and interpretation of data on natural processes. My commitment to increase our progress is strong. The Congress recognizes that fundamental advances in understanding natural forces are important, and I welcome the partnership we have forged.

The National Earthquake Hazards Reduction Program established by the Earthquake Hazards Reduction Act of 1977 resulted in a national hazard mitigation plan that I transmitted to Congress in June, 1978. This effort will involve Federal agencies, experts in the universities and private sector, and the States and localities to improve our understanding of earthquakes and our reactions to earthquake Warnings.

To improve our ability to react to natural disasters and assist those affected, the Congress approved my reorganization recommendation to create the Federal Emergency Management Agency. This new Agency will have oversight of Federal programs to assist the areas and individuals affected by such civil emergencies. It will give us the ability to focus science-and the insight of the social sciences—on the mitigation of natural hazards as well as on post-disaster relief. The Agency will work closely with State and local jurisdictions to apply the benefits of available technology.

We also have focused increased research on climate. Within the framework of the National Climate Program Act of 1978, a national program has been organized. This program emphasizes impact assessment, diagnosis and projection, climate dynamics, and data management. My budgets in this area have more than doubled in the last two years. Advances that can be made in understanding climate change, in predicting it—and perhaps in influencing it beneficially—will be of enormous help to us and the rest of the world.

Another problem we face is the risk that man's own activities—now significant on a global scale—might adversely affect the earth's environment and ecosystem. Destruction of the ozone layer, increase in atmospheric carbon dioxide, and alteration of oceanic flow patterns are examples of the problems we must understand before changes are irreversible or the consequences inevitable. Many Federally sponsored research activities, including basic research in the atmospheric, oceanic and earth sciences, and space observations, contribute to better understanding of the natural processes affecting the earth. They should receive serious attention in the coming decades. The increases that I have requested for basic research support this objective.

SCIENCE, TECHNOLOGY AND INTERNATIONAL RELATIONS

Science and technology is increasingly international in its scope and significance. This international dimension affects the planning and conduct of our research and development activities. Such activities, whether carried out by us or by others, serve to increase the fundamental stock of human knowledge. They can also foster commercial relationships, impact on the quality of life in all countries, and affect the global environment. Both our domestic planning and our foreign policy must reflect an understanding of this wide-ranging impact of science and technology.

Much of the existing international cooperation in science and technology takes place in academic or commercial channels. There is, however, a growing role for governmental cooperation as other nations make new commitments to scientific and technological growth. If used wisely these future opportunities for scientific and technological cooperation can support our foreign policy objectives.

Several themes have shaped my Administration's policy in this area. We are:

—pursuing new international initiatives that advance our own research and development objectives;

—developing and strengthening scientific exchanges that bridge political, ideological, and cultural divisions between countries;

—formulating programs and institutions that help developing countries use science and technology; and

—cooperating with other nations to manage technologies with global impact.

PURSUING NEW INTERNATIONAL INITIATIVES

United States scientific and technological objectives are advanced by cooperating with other nations. For example, we work together with many nations on large scale scientific programs; joint funding of expensive research, development, and demonstration projects; and efforts to alleviate common problems.

Two decades ago, the International Geophysical Year set a pattern for international cooperation on large-scale scientific problems. This model has been extended to most fields of science. Today the world's weather is studied jointly by nations through the Global Atmospheric Research Project. With the European Space Organization we are planning a space mission to examine polar regions of the sun. These programs are yielding new knowledge about our solar system and our earth's natural processes. They are providing important practical dividends.

As the cost of large-scale research programs and research facilities rises, all countries find the financial support increasingly burdensome. We must join together to support the most expensive and significant projects. We are discussing with other nations a program to drill deeply into the offshore continental margins between the continental shelves and ocean basins. This program would provide new knowledge of the sea floor and help us assess the margins' potential for resources. Other large-scale scientific programs that could be pursued jointly include the next generation of high energy physics accelerators, telescopes, and fusion energy research facilities.

Through the International Energy Agency we are cooperating on energy related research and development. At the economic summit in Bonn in 1978, and more recently in Washington, I discussed the importance of intensifying joint energy research and development with the President of the European Economic Community. Similarly, in my discussions with the Prime Minister of Japan we agreed to increase cooperation in large-scale projects, particularly nuclear fusion and synthetic fuel production from coal. These agreements will help both nations achieve new energy sources—faster and at lower cost than if the research were pursued independently.

Environmental problems caused by industrialization are another area appropriate for cooperation. During my Administration we have started efforts with other nations to deal with problems of transboundary air pollution. Canadian and American scientists, for example, are working jointly to alleviate damage from acid rain caused by the long-range pollutants across our common border.

During my visit this February with Mexico's President Jose Lopez Portillo, we agreed to intensify scientific and technological cooperation to alleviate problems of mutual concern. We will explore ways to cooperate on research for developing the vast arid lands on both sides of our border. This will include research on new crops suitable for these lands and research on effective use of scarce water resources. We also will exchange information and begin joint work on housing and urban planning for cities close to our common border.

DEVELOPING SCIENTIFIC EXCHANGES THAT BRIDGE DIFFERENCES BETWEEN COUNTRIES

Most nations value scientific and technological cooperation with the United States. We can use this fact to build bridges with countries where official relationships have been absent or strained. Our scientific and health exchanges with the Soviet Union and Eastern European countries, beginning after World War II, can be viewed in this light. These exchanges are now mature and extensive.

Our scientific exchanges with the Soviet Union are of special significance. At the sixth meeting of the U.S.-Soviet Joint Commission on Science and Technology in Moscow in February 1979, we agreed to add new cooperative areas of interest to both sides. I expect to see continuing improvement in the quality of our exchanges with the Soviet Union. I also expect these programs to support and remain compatible with our overall political relationship.

The normalization of our relations with the Peoples Republic of China is a major event in American foreign policy. Since the signing of the Shanghai Communiqué of 1972, scientific and technological relationships have played a critical role in building the relationship. In order to accelerate this process, my Science and Technology Adviser led a delegation of senior government scientists to China in July of 1978. This delegation was followed by visits of the Secretaries of Energy and Agriculture. Chinese delegations subsequently visited the United States to discuss educational exchanges and space technology programs.

These missions led to the science and technology agreement that I signed with Vice Premier Deng Xiaoping during his recent visit to the United States. The agreement covers programs of interest to both countries, including development of a satellite communications system that will provide China with the means for nationwide television and telephone service. The agreement provides for exchange of scholars and students, exchange of plant materials for genetic research on crops, and cooperation in high-energy physics and other areas. The agreement enhances opportunities for U.S. industry participation in China's modernization efforts. Our new relationship provides a sound beginning for increased technical social ties between our countries.

HELPING DEVELOPING COUNTRIES USE SCIENCE AND TECHNOLOGY

The United States has an opportunity and responsibility to share scientific knowledge and appropriate technological skills with the developing world. Our purpose is to assist other countries in developing technology for their own needs. We must accomplish this purpose both for humanitarian reasons and because overcoming the problems of poverty, overpopulation, and scarcity of food and natural resources, will promote a stable world, enhancing our own security and wellbeing.

Recognizing these facts, I have submitted legislation to create an Institute for Scientific and Technological Cooperation, which will be charged with helping developing countries improve their scientific and technological capacity. Working with the Agency for International Development, the Institute will expand the use of science and technology to overcome obstacles to development.

The Institute will help individual developing countries choose and develop technologies that suit their own needs. At the same time, it will enable them to contribute to the solution of problems that affect developed as well as developing nations. For example, the Institute will work with developing countries on multiple crop farming systems for areas not suited to continuous cropping of food grain, technologies for clean water and sewage in rural areas where most of the poor live, modern information systems, prevention and cure of tropical diseases, and appropriate energy systems. The Institute also will establish means for developing countries to draw on United States government agencies, universities and institutes, as well as private industry. In this way the Institute will enhance coordination of the international activities of our government agencies.

An important dimension of the Institute is its mandate to work with the more advanced countries of the developing world, the "middle tier" nations. These countries have the infrastructure and science and technology capacity to become true partners with us in addressing regional and international problems and needs of the poor majority.

The Institute will call on industry, labor, and private voluntary organizations for development and management skills and improvement of the health and safety levels of modernizing societies. Already twenty-five percent of our current exports go to non-OPEC third world nations. Our trade in manufactured goods will expand as developing countries become better able to purchase and use our products.

Finally, we plan to take an active role in the United Nations Conference on Science and Technology for Development next summer. Father Theodore Hesburgh, President of the University of Notre Dame, will lead our delegation to the Conference. I view this Conference as an opportunity for discussing technology-related issues of concern to developing countries and reaching agreement on common objectives.

COOPERATING WITH OTHER NATIONS TO MANAGE TECHNOLOGIES WITH GLOBAL IMPACT

Much of modern technology requires global cooperation and management. The telecommunications network and activities of international organizations like the World Meteorological Organization, the International Civilian Aviation Organization, and the World Health Organization are noteworthy examples. The monitoring activities organized through the United Nations Environmental Program is a more recent example. Among other activities, we are working with other nations to update electromagnetic spectrum allocation, strengthen international controls on nuclear materials, and develop a regime for rapidly expanding transnational data flows. International cooperation in the management of technology for the mutual benefit of all nations will become even more important in the coming decades.

I call the attention of Congress to two international discussions of great importance, one dealing with nuclear fuel cycle evaluation and the other with allocation of radio frequencies. The Congress knows of my concern over a spreading nuclear weapons capability as more countries meet their energy needs with nuclear power. Our own research and development programs have been reoriented toward developing technologies more resistant to misuse. At our suggestion, over forty countries have convened in the International Nuclear Fuel Cycle Evaluation to consider how we can minimize risks. I am hopeful that new institutional controls and technological approaches will emerge from these deliberations.

The electromagnetic spectrum—including the radio frequencies—is one of the reusable natural resources available to mankind. We are at a point in history where increasing worldwide demands for these frequencies are being made; demands that exceed the availability of the resource. All nations, large or small, have rights of equitable access as signatories to the International Telecommunications Convention. It is only through international cooperation and planning that these rights can be guaranteed. The 1979 Worldwide Administrative Radio Conference will review the allocation of radio frequencies for communications and other purposes. Results of this conference will guide the use of communications and electronic equipment and the pattern of domestic and international communications systems for the next several decades.

NATIONAL SECURITY

Our national security depends in large measure on our technological capability. Our future security will depend in part on our ability to deploy new weapons systems that embody more advanced technology. Our potential adversaries are investing heavily in military personnel, equipment, and technology. Accordingly, we must look to our research and development programs to enable us to maintain a modern and responsive defense capability.

In the context of this message on science and technology, I wish to emphasize several facets of their relationship to national security. We must ensure that we are:

—maintaining technological leadership in weapons systems;

—utilizing technology to reduce costs in an era of expensive defense systems;

—building our defense research base to provide for our national security in the future;

—preventing export of technological products and processes with military applications that would erode our security; and

—utilizing advanced technological capability in the pursuit of arms limitation agreements.

MAINTAINING TECHNOLOGICAL LEADERSHIP IN WEAPONS SYSTEMS

Our military investments in new technology over the years have contributed immeasurably to our security. Now, as other nations are becoming more proficient in science and technology, we must make certain that our own capabilities remain at the frontier of knowledge. We must be spared the shock of major technological surprises. It is absolutely essential for us to remain second to none in the development and production of new weapons.

We are moving ahead with major development programs to increase our military capabilities. In the strategic area, programs are underway to strengthen each element of the triad—air, land, and sea—in order to preserve our deterrent capabilities. Examples are the M-X intercontinental ballistic missile, cruise missiles, and the Trident submarine and missile system. We are also pursuing the development of more survivable and reliable strategic warning and command control systems.

In order to improve our capability to fight a conventional war, we are developing and procuring new generations of aircraft, ground vehicles and munitions. The F-15, F-16, F-18 and A-10 aircraft, the XM-1 tank and the Patriot air defense missile are examples.

UTILIZING TECHNOLOGY TO REDUCE COSTS

Science and technology—properly applied—can increase efficiency, thereby reducing acquisition costs and improving the effectiveness of weapons. Science and technology enable us to develop new materials and components at lower costs. They can give our weapons greater reliability and efficiency, thereby reducing personnel needs. And they improve our manufacturing productivity. Cooperation with our allies also will help reduce costs without sacrificing our modernization programs. Standardization and common operational capability among NATO allies are important objectives.

In the procurement of weapons, we are emphasizing competition between potential suppliers to help keep costs down. And we have adopted new management techniques to ensure that economies are not overlooked. We also are analyzing carefully the best mix of systems needed to meet anticipated contingencies. We have concluded that future shipbuilding efforts should concentrate on larger numbers of small ships, with enhanced mobility and firepower. Similarly, we are building a new, comparatively low-cost tactical airplane, the A-10, that emphasizes mobility and munitions designed for engagement of enemy tank forces. With imagination and effort, these various approaches will enable us to maintain technological superiority at acceptable cost.

BUILDING OUR DEFENSE RESEARCH BASE

The development cycle from proposal of a new concept to a deployed weapons system can take a decade or more. The length of time for dividends from investments in basic research is even longer. Moreover, research and development are inexpensive compared to the acquisition cost of weapons systems. The proper strategy, therefore, is to expand our options in the early stages of the acquisition process through research, and then be very selective at the costly engineering, development, and production stage.

For these reasons, our science and technology base related to national security must be the best in the world. Thus, I am deeply concerned over the declining support for research and technology in the defense budgets that occurred in the early part of this decade. My budgets for Fiscal Year 1979 and 1980 reverse that trend and strengthen our technology base. The two year average growth in the technology base will be about 14 percent, including an increase in basic research of about 20 percent.

The Department of Defense also is taking steps to strengthen its relationship with universities in order to use the research and development resources of the academic community more effectively. Defense support of university research will have increased more than 20 percent between Fiscal Years 1978 and 1980.

PREVENTING EXPORT THAT ERODES OUR TECHNOLOGICAL SUPERIORITY

Within the framework of national security, export controls on technology. are important to ensure that our technological advantage is not compromised. A comprehensive study of the implications of international technology transfer was undertaken early in my Administration. I am persuaded that the export control process must seek to balance the conflicting goals of trade promotion, selected trade restriction based on national security considerations, and furthering our foreign policy objectives. Decisions in specific export licensing cases must be made on their merits by considering these three goals. In particular we are taking steps to refine and expedite the government's decisionmaking processes. I must emphasize, however, that while sound export controls are important, only a strong research and development program, as I have proposed, ensures our technological leadership in defense.

UTILIZING ADVANCED TECHNOLOGICAL CAPABILITY FOR ARMS CONTROL

National security is enhanced by prudent arms control, as well as new weapons systems. To this end I have pursued a new Strategic Arms Limitation Treaty with the Soviet Union, a comprehensive nuclear test ban treaty, and other arms control measures. As these agreements enter into force, our choices in weapons development must meet our own needs, while giving our adversaries the incentive to participate seriously in negotiations. Successful arms control depends on science and technology to provide adequate technical means of verification. Our current national capability to verify arms agreements is excellent. It includes observation satellites and extensive capabilities for seismographic detection and interpretation. We must continue to pursue scientific and technological advances to maintain these capabilities.

HARNESSING THE NATIONAL CAPABILITY

Equally as important as the substance of our science and technology policies is our strategy for managing it and ensuring its vitality. This task is a challenging one because of the diversity of the participants—business and industry, universities, the Federal agencies, government at all levels, and the public. Each sector has distinct goals and objectives and special institutional qualities. Yet each can work with the others in a lively process of cooperation, so long as some independence is assured and our policies are adaptable to each.

The partnership between the Federal government and universities needs renewed attention. Many leaders of university research centers believe the government has intervened too deeply in university affairs to the point of affecting institutional independence and diversity. The problem stems from the need to ensure accountability of research funds. On the one hand accountability is important to me, to Congress, and to the taxpayers; we must improve the government's ability to manage and account for public funds. On the other hand it is equally important that the pendulum not swing so far that we stifle progress. We must allow flexibility both for the government agencies and for the research institutions. We should not confuse excess paperwork with proper accountability. Both the National Science Foundation and the National Institutes of Health have taken significant steps to reduce unnecessary demands on their grantees. These initiatives follow from my interest in reducing needless paperwork throughout the government. Moreover, in the recent development of the cost principles that govern the financial relations between the government and universities in research, we sought to the maximum extent possible to solicit and incorporate the views of the academic community. It is clear, however, that our partnership with universities needs further strengthening. We must continue to experiment with new approaches.

Another partnership in science and technology is with State and local governments. Throughout the Nation there is public resistance to the increasing costs of public services. If we are to avoid the reduction or elimination of such services, then we must develop better ways to reduce costs. The Federal government has a large stake in the effectiveness of State and local government: $80 billion are transferred annually to meet a range of national, State, and local needs.

Few State and local governments alone can support the research and development needed to mount a broad-scale effort at problem-solving. Within the budgets I have proposed for Federal research and development, I expect the needs of State and local governments to be addressed. Federal research and development programs should be formulated with participation by State and local governments. The Intergovernmental Science, Engineering, and Technology Advisory Panel, co-chaired by Dr. Frank Press and Governor James Hunt of North Carolina, is helping Federal agencies identify research and development to meet State and local needs. This intergovernmental group already has focused attention on satellite remote sensing data, US Fire Administration research, the National Technical Information Service, the problems of the elderly, and disposal of chemical wastes. I am directing the Panel to increase its efforts in planning technical assistance and research and development for problem-solving.

A better awareness of partnership also is needed among the Federal agencies. We must have coordinated policy and program planning, implementation, and evaluation. Through a variety of formal and ad hoc mechanisms, I have stimulated interagency cooperation in space application, earthquake hazard mitigation, dam safety, ocean pollutions research and monitoring, aquaculture, nutrition, management of radioactive wastes, and many others. Consistent with the wishes of Congress, I have asked the Office of Science and Technology Policy to coordinate programs involving many agencies using interagency coordination through the Federal Coordinating Council for Science, Engineering, and Technology.

A fourth partnership is between universities and industry. Universities are the chief performers of the fundamental research that underlies technological advance; industry puts this research to work and also identifies problems requiring new knowledge. The flow of people and information between the campus and industry is an important element in both scientific and technological advance. The National Science Foundation is beginning to experiment with projects that involve cooperative activities by people in industry and universities. Other efforts to strengthen the partnership are needed in the years ahead. I will give this issue attention as I review the recommendations coming from the study of industry innovation.

We must also strive to increase public understanding and participation in our scientific and technology activities. The changes induced by science and technology are infused in the fabric of society, profoundly altering the way we live. The understanding of those changes and their causes, as well as successful adaptation to them, requires an informed citizenry. I have supported measures, such as intervenor funding, that contribute to informed public participation in decisions where technology is important. Science education—preparing our children for tomorrow's technical society—will receive emphasis in the proposed Department of Education and programs of the National Science Foundation. In addition, the Federal Departments and Agencies conducting research and development will continue to support programs that train future generations of scientists and engineers. My Administration is committed to overcoming barriers that discourage career opportunities for minorities and women in science and technology.

Finally, if we are to make the best use of our scientific and technological progress, we must maintain continuity and consistency in our support and policies. This Nation's scientific capability is the greatest in the world, but it will not remain so in an environment of uncertainty and changing priorities and policies. We must recognize that it takes many years to train new scientists and to complete some research projects. Technology development projects and many research missions, such as our space probes, require sustained work over a decade. If research and development activities are started and stopped abruptly, the chance of their success is diminished and the probability of benefits to the Nation decreased. The Congress and the Administration must join in recognizing the long-term nature of many research and development activities. Together we must provide the necessary assurances and commitments. The policies of my Administration, as articulated in this message, are intended to serve that purpose.

CONCLUSION

In our lifetime the world has been reshaped by two prevailing forces of change: the desire of peoples everywhere for freedom from tyranny and the advance of science and technology.

Given the stunning achievements of science, it is natural to wonder whether we can expect similar accomplishments in the future. Or, are we in danger of running out of new ideas? The forecast today—and as far ahead as we can imagine-is the same as stated thirty years ago by Vannever Bush: science is "the endless frontier." The opportunities inherent in today's scientific research are limitless in all fields—from new understanding of the evolution of the universe to the insights revealed by the genetic code. Indeed, we are in the midst of a remarkable era of explosive growth in knowledge and its use by society, unparalleled in any period of history.

It is not possible to predict the political or technological directions in the century ahead. I am certain, however, that strong support for science and technology by the Nation is one of the most important ways to prepare for the future.

Building on the strengths of our American system, I have developed policies that should serve as guidelines for Federal programs for science and technology for the years ahead. In this task, I have given attention to the balance of our Federal effort, directing it toward many issues that will in my judgment be the critical issues for the remainder of this century.

I seek to ensure that technology is used wisely for the benefit of all. With the support of our government and our people, and the skills from the scientific and technological community, science and technology can help us chart the way to a more meaningful and productive future for all mankind.

JIMMY CARTER

The White House,

March 27, 1979.