Statement by the President Upon Authorizing Construction of a Prototype Supersonic Transport Aircraft.

TODAY, I am pleased to announce that this Nation is taking a major step forward in the field of commercial aviation.

I am authorizing the Secretary of Transportation to sign the contracts for the prototype construction of a commercial supersonic transport.

I am also sending to the Congress on Monday a request for $198 million to finance the Government's share of the next phase of the development of this transport aircraft.

These funds and this action will help to bring the supersonic transport from the drawing boards into the air for prototype testing and evaluation.

This new prototype test phase is the culmination of many months of a resourceful and intensive design competition. Out of that competition two firms were selected to proceed with the development of the aircraft--the Boeing Company for the airframe, and the General Electric Company for the engines.

This project, in which I have been proud to participate, is an outstanding example of creative partnership between your Government and American industry.

That partnership is evidenced by the arrangements which will carry the project through to its next phase:

--The Government will continue to share in the cost of development with industry.

--The airlines and the manufacturers will invest substantial capital in this project.

Although the promise of the supersonic transport is great, the program still carries high technical and financial risks. Industry's willingness to share those risks is a clear sign of its confidence in the program. This participation will also help assure that sound business judgments are exercised throughout the development of the supersonic transport.

With a successful program, the Government will recover its investment with interest. The taxpayers of this Nation will benefit.

The impact of the supersonic transport program will be felt well beyond our own shores. Jet aircraft have already brought the world closer to us. Commercial supersonic transports--traveling at 1800 miles an hour or even faster--will make South America and Africa next-door neighbors. Asia will be as close to us as Europe is today.

Only by sustaining the highest levels of business-Government cooperation will we reach that stage of progress. Only through that cooperation can we achieve the goals which I affirmed at the beginning of this program: the development of a supersonic transport which is

--safe for the passenger;

--superior to any other commercial aircraft; and

--economically profitable to build and operate.