Statement by the President Upon Signing Bill Extending the Renegotiation Act.

I HAVE signed H.R. 13431 which extends the Renegotiation Act for an additional 2-year period.

The Renegotiation Act has served this Nation well for the past 15 years.

We need this vital measure. It is another important tool in our constant quest to get a dollar's worth of value for every defense dollar spent.

Our struggle for freedom's cause in Vietnam makes the extension of this act appropriate.

The Act is just. It does not penalize a defense contractor's efficiency or deny him a fair profit. But it does determine, under carefully defined criteria, whether the profit is excessive. If so, that profit is returned to the Government.

The renegotiation process has saved large amounts for the American taxpayer.

In fiscal year 1965 alone, renegotiation resulted in refunds or price reductions of over $32 million. Since the inception of the Renegotiation Board in 1951, savings of more than $2 billion have been achieved. These totals, I might add, include actions taken directly by the Board as well as voluntary refunds made by contractors because of the existence of renegotiation.

With the very outstanding results of Secretary McNamara's cost reduction program, with the skill and dedication of our Government contracting officers, and through the renegotiation process, we are fulfilling the pledge I made to give this country the strongest defense force at the lowest possible cost.