Summary of the Administration's First-Year Domestic and National Security and Foreign Policy Accomplishments

SUMMARY AND OUTLINE OF FIRST-YEAR DOMESTIC ACCOMPLISHMENTS SUMMARY

The President's domestic policy achievements during the first year of his administration can be summarized as follows:

I. The President tackled directly and comprehensively major domestic problems that had been almost completely ignored in previous years. If actions had not been taken early in this administration, these problems would have worsened, making any future efforts at resolution far more difficult and costly. Among the major problems confronted were:

1. Energy. The country had no comprehensive energy plan. There was no coherent way to reduce foreign imports (costing the United States $45 billion annually), shift to more abundant energy sources, conserve energy use, or provide fair incentives to encourage domestic energy production. The President proposed a National Energy Plan designed to achieve these goals by:

• reducing the growth rate in energy consumption to 2 percent per year;

• reducing gasoline consumption by 10 percent;

• cutting imports of foreign oil to less than 6 million barrels a day, about half the amount that would otherwise be imported;

• establishing a strategic petroleum reserve supply of at least 1 billion barrels, which could meet all domestic needs for 10 months;

• increasing coal production by more than two-thirds, to over 1 billion tons a year;

• insulating 90 percent of American homes and all new buildings;

• using solar energy in more than 2 1/2 million homes.

The National Energy Plan was the President's most important domestic priority during the year. A House-Senate conference committee is now considering the plan, with final congressional passage expected early next year.

2. Welfare Reform. For years, the country has suffered from a welfare system that treats people with similar needs differently, provides incentives for family breakup, discourages work, fails to assist with employment efforts, and leads to waste, fraud, and redtape.

The President proposed a comprehensive overhaul of the Nation's welfare system, the Program for Better Jobs and Income, that will provide cash benefits to 32 million people out of 36 million eligible (current programs--30 million receive benefits out of 40 million eligible). The major elements of the program include:

• creation of 1.4 million public service jobs for low-income families, which provide a job opportunity for every poor family with children;

• tax reduction of $4.9 billion for the working poor, through an increase in the Earned Income Tax Credit;

• improved recipient benefits--establishing a basic benefit of $4,200 for single parent families (higher than the AFDC benefit in 14 States);

• fiscal relief to the States and local governments of $2.1 billion;

• work incentives to ensure that those who work will have higher incomes than those who do not;

• ensuring that every family with a working adult would have a total income above the poverty line.

The Congress is beginning its consideration of the President's welfare package. The Special Welfare Reform Subcommittee established in the House moved quickly on major elements of the proposal and has endorsed several key provisions of the administration plan.

3. Social Security. The social security system was in serious danger of having its major trust funds depleted in 1979 (disability fund) and in 1983 (old age and survivors fund). The system was projected to have an estimated deficit of 8.2 percent of taxable payroll over the next 75 years. Since 1975, expenditures by social security have exceeded income, and unless changes were made in the way the system is financed, that trend would continue and worsen.

The President proposed a refinancing of the social security system that would: • prevent the default of the trust funds;

• bring income and expenses into balance in 1978 and maintain that balance through the end of the century;

• create sufficient reserves to protect the system against sudden declines in revenue caused by unemployment or other economic uncertainties;

• protect the system's financial integrity through the end of the century;

• avoid tax rate increases to workers beyond those already scheduled in law and spread burdens more equitably through the wage base.

The Congress passed a social security bill which incorporates many of the major elements of the administration's proposals, which will ensure the financial stability of the system throughout the rest of the century.

II. Economic Recovery. When the President was elected, unemployment was at 8 percent, and the country was still struggling to recover from a severe recession. There were 7.5 million Americans out of work, and 1.4 million full-time workers had been forced to take parttime jobs. It was estimated that the economy operated at approximately $132 billion below its high employment potential. The country lost nearly $35 billion in Federal tax revenues and $10 billion in State and local revenues because of the economy's poor performance.

To alleviate those problems, the President proposed and signed into law a comprehensive package of economic stimulus legislation, totaling $21 billion in Federal expenditures. The main elements of the stimulus package, many of whose effects have already been felt throughout the economy, are:

• $4 billion in public works programs (creating about 200,000 jobs);

• $5 billion in tax reductions, primarily through an increase in the standard deduction, largely benefiting moderate- and low-income workers;

• $1 billion increase in countercyclical revenue sharing;

• expansion by 425,000 job slots (to 725,000 slots) in public service employment and training programs;

• $1.5 billion youth employment program which will create over 200,000 jobs for young people and will double the size of the Job Corps.

As a result, in part, of the stimulus package, the economy has improved--unemployment has declined to 6.9 percent; employment has increased to 92 million workers (the largest number in the country's history); per capita, after-tax income (adjusted for inflation) has increased 4 percent over the past 12 months; gross average weekly salary has increased since January from $179 to $195; housing starts have increased 27 percent over the past 12 months; corporate dividends have risen 18 percent over the past 12 months; and consumer savings have increased 14 percent over the past 12 months.

III. The President initiated a number of efforts to make the Federal Government more efficient and effective. Among the more significant of those steps are the following:

1. Reorganization Authority--proposed and signed into law legislation authorizing the President to reorganize executive agencies and departments, subject to congressional veto.

2. Reorganizations---completed three individual reorganizations requiring congressional assent:

• Department of Energy (legislation combining and streamlining 11 Government entities into one new major department);

• Executive Office of the President (reorganization plan reducing size of Executive Office of the President by seven entities and reducing the White House staff by 28 percent, compared to the size of the staff inherited from the previous administration);

• international Communication Agency (reorganization plan combining and streamlining United States Information Agency and cultural functions of the State Department);

• also completed numerous major intradepartmental and other reorganizations not requiring congressional assent, especially regarding HEW, USDA, DOT, and the intelligence functions of CIA and DOD.

3. Advisory Committees--eliminated or proposed to Congress the elimination of over 40 percent of the 1,200 advisory committees extant at the beginning of the administration.

4. Paperwork Reduction--initiated a Government-wide paperwork reduction program which, by September 30, reduced the gross paperwork burden imposed by the Federal Government on the private sector by 10 percent and resulted in numerous individual paperwork reforms.

IV. The President initiated several efforts toward making the Government more open and honest:

1. Accessibility by the President. The President made himself more accessible to the American people than any President in modern history and set a tone for the rest of his administration by the following:

• holding a regular news conference every 2 weeks;

• meeting regularly for interviews with non-Washington editors;

• holding town hall meetings in Clinton, Mass., and Yazoo City, Miss.

• visiting each Cabinet department and answering questions from its employees;

• holding a radio call-in show at the White House and a television call-in show in Los Angeles;

• providing complete financial disclosure of his income and assets;

• making three trips to different parts of the country, stayed in the homes of citizens and met with a broad range of citizens and officials;

• holding public policy conferences on energy, water policy, and the problems of the poor.

2. Financial Disclosure. The President required, for the first time, that all Cabinet, sub-Cabinet, and White House staff members agree to disclose publicly their income and assets. This has been fully implemented.

3. Ethics Legislation. The President proposed ethics legislation requiring public financial disclosure by all public officials, strengthening restrictions on post-Government service activities of Federal officials, and establishing an Office of Ethics in the Civil Service Commission. It has passed the Senate and is making good progress in the House.

4. Revolving-Door. The President required, for the first time, that all Cabinet, sub-Cabinet, regulatory agency, and White House staff members pledge, when they leave Government service, not to conduct business before their former employer for 2 years.

5. Security Classification--initiated a comprehensive review of the security classification system; provided for public comment a draft Executive order that would, if issued, greatly reduce unnecessary classifications.

V. The President has reversed years of neglect and treated the problems of poor and middle-class citizens with compassion and understanding. Among the major steps taken in that effort are the following:

1. Food Stamp Reform. The President proposed and signed into law reforms of the food stamp program which make food stamps available to 2.2 million additional Americans. Among the reforms was the elimination of the purchase requirement.

2. Minimum Wage. The President proposed and signed into law an increase in the minimum wage to enable the lowest paid workers to recover from and keep pace with inflation. The minimum wage would increase to $2.65-an-hour by January 1, 1978, increasing the earnings of 4.5 million workers by $2.2 billion. Successive increases would raise the hourly rate to $2.90 in 1979, $3.10 in 1980, and $3.35 in 1981.

3. Farm Bill. The President proposed and signed into law a comprehensive agriculture and food bill, giving security to farmers over the next 4 years in the form of price supports, loans, and other programs designed to assure them an adequate income from their products.

4. Welfare Reform. The President proposed a comprehensive reform of the welfare system, a Program for Better Jobs and Income. It includes creation of 1.4 million public service jobs by 1981 and the establishment of the uniform cash assistance program to low-income citizens.

5. Hospital Cost Containment. The President attempted to control the spiraling costs of hospitalization which often make needed health care too expensive by imposing limits on the annual increase in hospital revenues.

6. Energy Fuel Assistance. $200 million was provided to grant emergency fuel assistance to poor people adversely affected by last winter's high energy costs.

7. Handicapped. HEW issued regulations prohibiting discrimination against the handicapped in any program receiving Federal financial assistance from HEW, effectively extending civil rights protection to the handicapped.

OUTLINE BY TOPIC OF FIRST-YEAR DOMESTIC ACCOMPLISHMENTS

Agriculture

1. Food and Agriculture Act--proposed and signed into law a comprehensive food and agriculture bill which removes inequities in community programs; establishes the principle that price support loans should be kept at levels enabling American food and fiber to remain competitive in world markets; uses a cost-of-production concept to set income support levels; improves administration of the P.L. 480 (Food for Peace) program; improves the food stamp program by eliminating the purchase requirement, standardizing deductions, lowering net income eligibility limits, and (because of the elimination of the purchase requirement) making as many as 2 million persons eligible for food stamps for the first time.

2. Grain Reserve---initiated plan to place 30-35 million metric tons of food and feed grains in reserve during the next year.

3. International Grain Agreement-initiated negotiations with major grain exporting and importing nations to reach an international agreement stabilizing world grain prices.

4. Sugar--negotiated an international sugar agreement which will protect domestic sugar producers while stabilizing world sugar prices (congressional ratification pending).

5. Emergency Drought Assistance-proposed and signed into law legislation designed to help farmers hit by the severe droughts of the past spring and summer; provided over $800 million in emergency drought assistance.

Civil Rights and Equal Opportunity

1. Bakke--Filed an amicus brief in the Bakke case supporting affirmative action in college admissions programs, provided they use flexible targets or goals instead of inflexible quotas.

2. Sex Discrimination--reaffirmed the validity of and importance of compliance with Executive Order 11375, which prohibits discrimination on the basis of sex in Federal employment.

3. Title VII--placed the White House Office under Title VII of the Civil Rights Act, which prohibits discrimination in employment on the basis of sex, race, national origin, or religion.

4. Equal Employment--filed the first statewide Federal suit to force employment of women and blacks by police and fire departments (affecting 54 cities and parishes in Louisiana).

5. Handicapped---issued Section 504 regulations to guarantee equal access to programs receiving Federal financial assistance.

6. Minority Business--took several actions to aid businesses owned by members of minority groups:

--placed $100 million in Federal deposits into minority-owned banks;

--supported and signed a public works act requiring that 10 percent of the $4 billion in public works contracts let during 1977-78 be "set aside" for minority-owned programs;

--approved 15 percent "set-aside" for minority businesses in construction on the Northeast Corridor railroad;

--directed Federal agencies to double their purchases of services and goods from minority-owned firms during the next 2 years, reaching a total of $2 billion.

7. High-Level Appointments--appointed more blacks, women, and members of ethnic minorities to executive-level positions than any other administration in history.

Civil Service

1. Pay Raise--approved a 7.05 percent cost-of-living pay raise for Federal employees.

2. Hatch Act Reform--supported reform of the Hatch Act to permit most civil service employees to participate more fully in the political process, without politicizing the civil service. This has passed the House.

3. Civil Service Reorganization and Reform--initiated, under the Federal Personnel Management Project, a review of the Civil Service Commission and the civil service employment and promotion laws and regulations. Announcement of proposed reforms will come next year.

4. Part-time Employment--directed Cabinet members and agency heads to increase the number of part-time jobs, so that the elderly, the handicapped, and those with children can more easily obtain Federal employment.

5. Presidential Interns--created a Presidential Management Intern Program to bring 250 public administration students annually to Washington for one year of service in the Federal Government.

6. Protection--directed that Federal employees not lose their Federal employment solely because of reorganization.

Consumer Protection

1. Consumer Agency--proposed the creation of a consumer protection office to represent consumer interests throughout the Federal Government; passed House committee.

2. Fair Debt Collection Practices--supported and signed into law the Fair Debt Collection Practices Act, which will prohibit abusive and unfair techniques of debt collection.

3. Citizen Participation--supported legislation to reimburse citizens for participation in court and agency proceedings, to expand class action authority, and to expand citizens' standing to sue the Government.

4. Appointments--appointed consumer advocates to major regulatory positions.

5. Passive Restraints--required automobile occupant crash protection through passive restraints, which will save 9,000 lives and prevent tens of thousands of injuries each year.

Economy

1. Unemployment. Unemployment decreased from 8 percent last November to 6.9 percent this November.

2. Employment. Employment has increased during the past 12 months by almost 4 million--from 88 million to 92 million. This is the largest number of people with jobs in the Nation's history. In addition, the proportion of the population holding civilian jobs has increased to 57.8 percent, a record high.

3. Inflation. The rise in the Consumer Price Index declined from an annual rate of approximately 9 percent early this year to an annual rate of 4 percent in October.

4. Duration of Unemployment. The average duration of unemployment has decreased during the past 12 months from 15.5 weeks to 13.8 weeks. The number of persons out of work for 15 weeks or longer has decreased during this period by 25 percent.

5. After-Tax Income. After-tax income per person, adjusted for inflation, has increased 4 percent during the past 12 months.

6. Salaries. Gross average weekly salary has increased since January from $179 to $195.

7. Housing Starts. Housing starts have increased 27 percent during the past 12 months; residential building permits have increased 25 percent during the same period. Housing starts are at a yearly rate of over 2 million units.

8. Industrial Production. Industrial production has increased 7 percent during the past 12 months. Since late 1976, the use of industrial capacity has increased about 3 percent.

9. Economic Profits. Economic profits of corporations (before taxes) have increased 11 percent during the past year.

10. Corporate Dividends. Corporate dividend payments have risen 18 percent during the past 12 months.

11. Business Capital Outlays (adjusted for inflation). Business capital outlays are 7 percent more than they were this time last year.

12. Consumer Savings. Consumer savings in the form of time and savings deposits have increased 14 percent during the past 12 months.

Elderly

1. Mandatory Retirement--supported raising from 65 to 70 years of age the coverage of the Age Discrimination in Employment Act, thereby prohibiting employers from requiring retirement prior to age 70; supported removal of a mandatory retirement age from the civil service laws. Bills have passed both Houses of Congress and are now in conference.

2. Social Security--proposed a comprehensive refinancing of the social security system in order to ensure the financial stability of the system for the rest of this century. Social security legislation incorporating many of the administration's proposals was enacted on December 15.

3. Medicare--proposed and signed into law the Medicare and Medicaid Anti-Fraud and Abuse Act, which will substantially reduce fraud and help to lower patient costs; cancelled, as part of the revised FY '78 budget, the proposed increase in Medicare patient payments.

4. Trans-Bus--required public transportation authorities receiving Federal funds to purchase Trans-Bus, a vehicle accessible to the elderly and physically handicapped, after 1979.

5. Hospital Cost Containment--proposed legislation to control the rapidly increasing costs of hospitalization by limiting total hospital revenues.

6. Housing Assistance--provided $850 million in FY '78 for assistance to the elderly for 25,000 to 30,000 homes.

7. Emergency Fuel Assistance--provided $200 million to help the poor, many of whom were elderly, pay their fuel bills during the past winter; provided additional money for weatherization and winterization programs for the elderly poor.

Employment

1. Unemployment--unemployment rate was 8 percent at the time of the 1976 election; latest figures (November) show that it has dropped to 6.9 percent.

2. Public Service Jobs--proposed and signed into law an expansion of the public service jobs program (CETA) from 300,000 jobs to 725,000 jobs by March 1978. This is the largest public service jobs program since the 1930's.

3. Youth Jobs--proposed and signed into law three new youth jobs programs-the National Youth Conservation Corps, the Youth Community Conservation and Improvement Projects, and the 'Comprehensive Employment and Training Programs---creating 200,000 new jobs; also, doubled the size of the Job Corps.

4. Public Works Job--proposed and signed into law a $4-billion public works program, which will create nearly 200,000 jobs.

5. Minimum Wage--proposed increasing the minimum wage to enable the lowest paid workers to recover from and keep pace with inflation; signed a bill increasing the minimum wage to $2.65 an hour by January 1, 1978, directly increasing the earnings of 4.5 million workers by $2.2 billion. Successive increases will raise the hourly rate to $2.90 in 1979, $3.10 in 1980, and $3.35 in 1981.

6. Mine Safety and Health--supported and signed into law a bill to improve the safety and health of the Nation's 400,000 miners, by placing all mines under a single safety and health program administered in the Labor Department.

7. Labor Law Reform--proposed the first set of comprehensive labor law reforms in 30 years. The reforms would eliminate delays in NLRB procedures and strengthen NLRB sanctions against labor law violators; passed the House.

8. Undocumented Aliens--proposed a comprehensive program to control the presence of millions of undocumented aliens in the country. The program includes a prohibition against employers' hiring undocumented aliens.

9. Welfare Reform--proposed comprehensive reform of the Nation's welfare system, including the creation of 1.4 million public service jobs by 1981.

10. Supplemental Unemployment Benefits--supported and signed into law a bill to extend Federal supplemental unemployment benefits for 26 additional weeks.

11. Humphrey-Hawkins--endorsed the Humphrey-Hawkins full employment bill, establishing a 4-percent unemployment rate and reasonable price stability as national goals for 1983.

Energy

1. National Energy Plan--proposed the Nation's first comprehensive energy policy. Bills have passed both Houses of Congress and are now in conference.

2. Emergency Natural Gas--proposed and signed into law a bill that permitted the President to make emergency allocations of natural gas during last winter's shortage and permitted emergency purchase of unregulated gas.

3. Department of Energy--proposed and signed into law a bill to combine 11 Government entities into one Cabinet level Department of Energy.

4. Alaska Natural Gas--negotiated an agreement with Canada concerning a joint transportation route (the ALCAN Project) for Alaskan natural gas; secured congressional approval of the route decision.

5. Strategic Petroleum Reserve--undertook to expand the National Strategic Petroleum Reserve from 500 million barrels to 1 billion barrels of oil, giving the country a 10-month stockpile.

6. Nuclear Nonproliferation--proposed legislation to control the worldwide spread of nuclear fuels by applying uniform standards for licensing of nuclear exports, establishing criteria for the negotiation of new nuclear technology exchange agreements, and authorizing regulations for more expeditious review of nuclear export licenses; passed the House.

Environment

1. Clean Air--supported and signed into law amendments to the Clean Air Act, including strict auto emission and stationary air standards.

2. Strip Mining--supported and signed into law a strip mining bill (twice vetoed by Ford), which will set the first Federal environmental standards for strip mining.

3. Water Resource Projects--initiated a major review of Federal water resource development projects to ensure that those recommended for funding in FY '78 and future years are economically and environmentally sound as well as safe; signed legislation halting nine previously authorized projects.

4. Redwoods--proposed a moratorium on logging in Redwood National Park; submitted legislation to expand the park and protect it from further commercial use.

5. Water Pollution--proposed amendments to the Federal Water Pollution Control Act, involving reform of the sewage treatment construction grant program and strict protection for Federal wetlands; amendments have passed a House-Senate conference.

6. Environmental Message--submitted to Congress a comprehensive environmental message which included support for four new wilderness areas, eight new wild and scenic parks, and water resource policy reforms.

7. Whaling--ordered protection of whales within 200 miles of U.S. coast; cooperated with the International Whaling Commission on bowhead whales; and supported a 10-year, worldwide moratorium on commercial whaling.

8. Alaska Lands--proposed to Congress the protection of 93 million acres of Alaska Federal lands (d-2 lands), permitting the creation or expansion of 19 national parks and reserves, 14 national wildlife refuges, and 42 wild and scenic rivers.

9. Water Policy--began work on a comprehensive Federal water policy.

10. Oil Spills--proposed legislation establishing liability for oil tanker spills and leading to the development of regulations to prevent future spills.

Government Efficiency, Reorganization, and Regulatory Reform

1. Reorganization Authority--proposed and signed into law legislation authorizing the President to reorganize executive agencies and departments, subject to congressional veto.

2. Reorganizations--completed three individual reorganizations requiring congressional assent:

--Department of Energy (legislation combining and streamlining 11 Government entities into one new major department);

--Executive Office of the President (reorganization plan reducing size of Executive Office of the President by seven entities and reducing the White House staff by 28 percent, compared to the size of the staff inherited from the previous administration);

--International Communication Agency (reorganization plan combining and streamlining United States Information Agency and cultural functions of the State Department);

--also completed other reorganizations not requiring congressional assent, including HEW, USDA, DOT and the intelligence functions of CIA and DOD.

3. Advisory Committees---eliminated or proposed to Congress the elimination of over 40 percent of the 1,200 advisory committees extant at the beginning of the administration.

4. Paperwork Reduction--initiated a Government-wide paperwork reduction program which, by September 30, had reduced the gross paperwork burden imposed on the public by 12 percent and which had achieved such particular reforms as these:

--10 items were cut from the standard 1040A income tax form, which will reduce the time required to fill out 1977 returns by an estimated 19 million hours;

--OSHA is reducing its paperwork burdens (particularly on small businesses) by 50 percent;

--HEW has reduced its required paperwork by over 10 million hours, a 23-percent reduction, including a cut of 5 1/2 million hours in the Office of Education's reporting requirements on students.

5. Reduction in Regulatory Burden-initiated a program to reduce the burden of Federal regulation, including:

--promulgation of an Executive order requiring all agencies to disclose in advance their agendas for regulatory action; assuring that agency heads will subject regulation writers to managerial control; establishing procedures for public comment on proposed regulations before they take effect; and establishing procedures to review and discard outmoded regulations;

--establishment of reform programs in HEW, where "Operation Common Sense" will rewrite all regulations within 5 years, and in OSHA, which has eliminated 1,100 unnecessary regulations and other practices that annoy small businesses to no good purpose;

--development of programs to find and eliminate overlapping and duplicative regulations, especially those affecting equal employment opportunity enforcement and toxic substances;

--establishment of policies to replace regulation with competition, especially in the airline, motor carrier, and communications industries.

6. Zero-Based Budgeting--ordered the use of zero-based budgeting by OMB and the executive departments in assessing the merits of all Federal programs.

7. Written Regulations--took steps to make Federal regulations shorter and more nearly comprehensible.

Health

1. Hospital Cost Containment--proposed legislation limiting increases in hospital revenues; passed Senate Health Subcommittee.

2. Mental Health Commission--established a Mental Health Commission, with Rosalynn Carter as honorary Chairman, to review national efforts in mental health services; final report due in April 1978.

3. Medicare and Medicaid Fraud-supported and signed into law a bill designed to halt Medicare and Medicaid fraud.

4. Immunization Program--began an immunization program for more than 20 million children unprotected against communicable childhood diseases.

5. CHAP--proposed legislation increasing from 55 percent to 75 percent the average Federal payment to the States for health care for poor children. CHAP is the proposed new Child Health Assessment Program.

6. Physician Assistants--supported and signed into law a bill making Medicare and Medicaid reimbursement available to physician assistants in rural clinics.

7. Medical Uses of Illegal Drugs--directed the scientific reexamination of marijuana and heroin for possible medical uses, particularly in the treatment of cancer.

8. Public Health Service Hospitals--restored money in FY '78 budget to keep open eight public health service hospitals; signed into law.

9. Health Professionals--proposed $101-million increase for FY '78 budget for health professionals training; signed into law;

10. National Health Insurance--established National Health Insurance Advisory Group to help develop a comprehensive national health insurance plan; conducted hearings in all 50 States.

Housing and Community Development

1. Increased Funding--proposed and signed into law the Housing and Community Development Act, which ensures housing for an additional 344,000 low and moderate-income families; increases FHA mortgage insurance limits for a single family home from $45,000 to $60,000 and lowers downpayment requirements; increases community development levels by total of $12.5 billion over 3 years, giving a disproportionate share of the money to the most distressed urban areas; and creates the Urban Development Action Grant program to provide an additional $1.2 billion over 3 years to the most distressed urban areas.

2. Supplemental Housing Authorization-proposed and signed into law a bill increasing subsidies for housing construction, public housing operations, and houses for Indians.

3. Increased Assisted Housing Starts-doubled to 114,000 the total starts for assisted housing programs between FY '76 and FY '77. This represents the highest level in HUD's history.

4. Eviction Moratorium--imposed moratorium on evictions from HUD-owned properties pending the development of a policy to assist tenants in foreclosed FHA-insured properties.

5. Housing Counseling--inaugurated counseling programs for people contemplating the purchase of their first home and for homeowners in danger of defaulting on their mortgages.

6. Office of Neighborhoods--created special office at HUD to help communities and neighborhoods with programs of local revitalization.

7. Urban and Regional Policy Group/ National Urban Policy--reactivated the interagency Urban and Regional Policy Group and made it responsible for drafting a comprehensive national urban policy.

8. Anti-Redlining Regulations--promulgated regulations prohibiting discriminatory mortgage credit practices.

9. South Bronx--created an interagency task force to prepare plans for completely rehabilitating the South Bronx.

10. Urban Homesteading--extended the Urban Homesteading program to 15 more cities, helping to restore neighborhoods while increasing home ownership opportunities for families of modest means.

Integrity and Openness

1. Financial Disclosure--required all Cabinet, sub-Cabinet, and White House staff appointees to disclose publicly their income and assets.

2. Revolving Door--required all Cabinet, sub-Cabinet, regulatory agency, and White House staff appointees to pledge not to conduct business with their agency until at least 2 years after leaving it.

3. Ethics Legislation--proposed ethics legislation requiring public financial disclosure by all Federal officials; increasing the restrictions on their service after leaving Federal employment; establishing an Office of Ethics in the Civil Service Commission; and authorizing appointment of a temporary special prosecutor to handle cases involving certain executive branch officials; passed the Senate.

4. Lobbying Reform--supported strong registration and disclosure legislation.

5. Security Classification System--initiated a comprehensive study of the Government's security classification system; proposed reforming the system and reducing unnecessary classification in a draft Executive order which is now being circulated for public comment.

Justice

1. Pardon--issued pardon for all selective service law violators from the Vietnam war period.

2. Merit Selection--established merit selection panels for the U.S. Circuit Courts of Appeals.

3. Prisoner Exchange--supported and signed into law legislation to implement treaties permitting the exchange of prisoners with Mexico and Canada; these transfers are now taking place.

4. LEAA--initiated a thorough review of the operations of the LEAA, which will soon lead to an announcement of its comprehensive reform.

5. Juvenile Justice--supported and signed into law a bill extending the Juvenile Justice and Delinquency Prevention Act through 1980 and strengthening Federal efforts against juvenile delinquency.

6. Foreign Intelligence Wiretapping-developed legislation that would, for the first time, require court warrants for foreign intelligence wiretapping done by the U.S. Government; passed Senate Judiciary Committee.

7. Marijuana--supported the elimination of all Federal criminal penalties for the possession of up to one ounce of marijuana.

8. Court Reform--developed legislation to reduce court delays by expanding the jurisdiction of Federal magistrates; passed the Senate.

9. Criminal Code--helped revise a bill consolidating and simplifying the criminal code.

10. Fraud--began using advanced computer technology at HEW to uncover Medicaid fraud by physicians and pharmacists, as a result of which more than 2,000 cases of suspected fraud are now in the hands of Federal and State prosecutors; also began a nationwide effort to identify Federal employees who are illegally receiving welfare benefits.

Social Services

1. Food Stamps--proposed and signed into law as part of the farm bill, major reforms in the food stamps program simplifying it, increasing participation by the poor, and eliminating the purchase requirement. As a result, 2.2 million more people will become eligible for food stamps.

2. Summer Food Service Program-proposed and signed into law stricter requirements for Summer Food Service program sponsors, more assistance to poor children, and harsher penalties for fraud.

3. Title XX--proposed a permanent increase of $200 million for day care services.

4. Child Care--proposed improvements in the foster care program, procedural protection for children, subsidized adoptions for hard-to-place children, and more money for child welfare children services; passed by the Senate Finance Committee.

5. Indochina Refugees--proposed and signed into law an extension of the Indochina Refugee Assistance Act, which helps the States resettle Indochinese refugees.

6. Handicapped--issued regulations prohibiting discrimination against the handicapped in any program receiving money from HEW--similar requirements will be issued by other departments; sponsored the White House Conference on Handicapped Individuals.

7. Emergency Fuel Assistance--provided $200 million to help the poor pay their fuel bills last winter; program administered through CSA.

8. Welfare Reform--proposed a comprehensive reform of the welfare system, substituting in place of existing programs a Program for Better Jobs and Income, which includes a consolidating cash assistance proposal, 1.4 million public service jobs, and $3.3 billion in tax relief for the working poor.

9. Public Broadcasting--proposed legislation to increase Federal support for public radio and television, insulate them better from political influences, and increase the amount of public participation in decisions affecting them.

Trade

1. Color TV's--negotiated an orderly marketing agreement to reduce imports of color television sets from Japan from 2.7 million in 1976 to 1.75 million annually for the next 3 years, a 35-percent reduction.

2. Shoes--negotiated orderly marketing agreements to reduce imports of shoes from Taiwan and South Korea from 200 million pairs in 1976 to an average of 162 million pairs during the next 4 years.

3. Anti-Boycott--helped to develop and signed into law a bill prohibiting American participation in secondary economic boycotts by foreign countries such as the Arab boycott of Israel.

4. Steel---announced a comprehensive program to help the domestic steel industry by establishing a "reference price system," which will curb the dumping of under-priced, imported steel.

Transportation

1. U.S.-U.K. Air Agreement--negotiated a new air services agreement with the United Kingdom.

2. Passive Restraint--ordered airbags or automatic belts to be placed on all new cars by 1984. Such a program is expected to save 9,000 lives and prevent tens of thousands of injuries per year.

3. Auto Efficiency Standards--raised fuel efficiency standards for new cars to 22 mpg in 1981, 24 mpg in 1982, 26 mpg in 1983, and 27 mpg in 1984. These will save approximately 1 million barrels of oil per day by 1990.

4. Concorde Noise Rules--proposed the first noise rules to govern domestic flights of the Concorde SST and any future SST's. The proposed rules would permit Concordes to use domestic airports only if they meet reasonable, nondiscriminatory noise rules set by local airport operators. New SST's would be required to meet the 1969 subsonic noise standards.

5. Trans-Bus--required public transportation authorities receiving Federal funds to purchase Trans-Bus, a vehicle accessible to the handicapped, after 1979.

6. Airline Deregulation--supported congressional efforts to deregulate the airline industry; passed Senate Commerce Committee.

7. International Airfares--approved Laker Airways' application for low-cost, transatlantic service and subsequent applications from other airlines offering reduced transatlantic and advance-purchase fares.

8. Northeast Corridor Construction-began work on the $1.7 billion Northeast Corridor railbed improvement program which will facilitate high-speed rail travel between Boston and Washington, D.C.

9. Waterway Use Fees--urged congressional passage of waterway user fees; different versions have passed the Senate and House.

10. Vehicle Safety--improved the vehicle safety defect program, causing the recall of 8 million vehicles for safety related defects.

11. Cargo Airline Deregulation--supported and signed into law a bill to deregulate the cargo airline industry.

Veterans

1. Discharge Review--established a discharge review program to permit upgrading of less-than-honorable discharges for Vietnam era veterans; signed a bill expanding this principle to cover all veterans.

2. Disability Compensation--proposed and signed into law a bill giving a 6.6 percent cost-of-living increase to recipients of veterans disability compensation, benefiting 2.5 million people.

3. GI Bill Benefits--proposed and signed into law a bill raising by 6.6 percent the GI bill educational assistance benefits for 1.7 million Vietnam-era veterans.

4. Pensions--proposed and signed into law a 6.5-percent increase in pensions for 2.3 million veterans.

5. Project HIRE---established, in association with the National Alliance of Businessmen, Project HIRE to provide jobs in private enterprise for Vietnam veterans.

6. CETA Jobs--proposed that 35 percent of the jobs under the new CETA Title VI program be reserved for Vietnam veterans; signed legislation giving priority to Vietnam veterans in the CETA Jobs program.

Education

1. Comprehensive Education Policy. The Federal Interagency Committee on Education is drafting the Government's first comprehensive education policy. Their proposal examines the rationale for Federal aid and sets forth priorities for educational support.

2. Increased Funding. The administration proposed the first major increase in Federal aid to elementary and secondary education in 8 years, adding about $1 billion to the Ford FY '78 budget. The money bolstered basic grants student aid, programs for disadvantaged and handicapped children, school desegregation, and Project Head Start.

Miscellaneous

To date (12/15/77), the President has;

--sent 49 treaties and legislative messages to Congress

--signed 235 bills and allowed no bills to become law without his signature --vetoed two bills (the ERDA authorization bill and the rabbit meat inspection bill)

--held 27 bill signing ceremonies

--held 21 national press conferences

--given 16 interviews to groups of non-Washington reporters

--given 28 individual interviews --held 60 meetings with foreign heads of state or government

--hosted 17 state and working dinners-at the White House

--received 2.3 million letters and cards.

SUMMARY OF FIRST-YEAR ACCOMPLISHMENTS IN NATIONAL SECURITY AND FOREIGN POLICY

In his commencement address at the University of Notre Dame on May 22, the President outlined the objectives of his foreign policy and described "the strands that connect our actions overseas with our essential character as a nation."

He declared his belief that "we can have a foreign policy that is democratic, that is based on fundamental values, and that uses power and influence . . . for humane purposes. We can also have a foreign policy that the American people both support . . . and understand . . .

"Our policy must be open; it must be candid; it must be one of constructive global involvement, resting on five cardinal principles . . .

"First, we have reaffirmed America's commitment to human rights as a fundamental tenet of our foreign policy...

"Second, we have moved deliberately to reinforce the bonds among... democracies...

"Third, we have moved to engage the Soviet Union in a joint effort to halt the strategic arms race...

"Fourth, we are taking deliberate steps to improve the chances of lasting peace in the Middle East...

"And fifth, we are attempting . . . to reduce the danger of nuclear proliferation and the worldwide spread of conventional weapons..."

The administration, by its work in international affairs this year, has sought to carry out the objectives which the President set forth at Notre Dame. Among the principal accomplishments in the realm of foreign policy and national security are these:

HUMAN RIGHTS

The President has strengthened our human rights policy, and we are letting it be known clearly that the United States stands with the victims of repression. We are also working to advance the full range of human rights, economic and social as well as civil and political. He has signed the American Convention on Human Rights, the International Covenant on Economic, Social, and Cultural Rights. Our foreign assistance programs will reflect more clearly our human rights concerns. We have encouraged several countries to permit inspection visits from the International Committee of the Red Cross. We are strongly supporting international organizations concerned with human rights, particularly the Inter-American Commission on Human Rights, whose budget was tripled this year.

NUCLEAR PROLIFERATION

The administration has developed a comprehensive policy covering domestic and export activities and has initiated an international, technical evaluation of the entire nuclear fuel cycle. The President signed Protocol I of the Treaty of Tlatelolco, which creates a nuclear weapons free zone in Latin America.

ARMS TRANSFERS

For the first time, the United States has adopted a policy of restraining both the number and the kinds of American arms sold abroad. We have also begun to discuss restraint with other major arms suppliers.

STRATEGIC ARMS LIMITATION TALKS

At the end of the last administration, the SALT negotiations were at a stalemate. The efforts of this administration, beginning with the March proposal set forth by Secretary Vance in Moscow, have resulted in major progress in the SALT negotiations. We are now working on a comprehensive settlement consisting of a treaty to last through 1985, a 3-year protocol, and a Statement of Principles to guide the SALT III negotiations. Almost all the major issues are now resolved, and we anticipate completion of a SALT II treaty in the early part of next year.

PANAMA CANAL TREATIES

After 14 years of negotiations under four U.S. Presidents, the United States and Panama adjusted their relationship as it applies to the Panama Canal. President Carter and General Omar Torrijos signed two canal treaties on September 7, 1977, which would gradually transfer responsibility for the operation and defense of a neutral canal to Panama. The treaties give the United States the permanent right to defend the canal's neutrality.

COMPREHENSIVE TEST BAN

Negotiations are underway on a treaty banning all nuclear explosions.

NORTH-SOUTH RELATIONS

The United States image in the lessdeveloped world and the United Nations has changed dramatically from that of an adversary to that of a potential partner. In the Security Council debate on Africa, we played a mediating role. Our arms control policies have made a favorable impression on the United Nations' annual review of disarmament issues. We played a constructive role in the Maputo and Lagos conference. And we participated, for the first time, in an ASEAN (Association of Southeast Asian Nations) ministerial meeting. The appointment of Ambassador Andrew Young highlighted our concern for the Third World.

WESTERN EUROPE

The administration has: participated in a successful Belgrade CSCE conference (Conference on Security and Cooperation in Europe), including a review of human rights; prepared another MBFR (mutual and balanced force reductions) proposal to advance talks; inaugurated four NATO efforts (the long-term defense program; the short-term improvements; the "two-way street" in defense purchases; the East-West study); agreed to provide a $300-million loan and forged a multination consortium to help democracy in Portugal; and secured a major IMF loan for Italy.

SOVIET UNION-EASTERN EUROPE

The administration has put the U.S.Soviet relationship on a more reciprocal, realistic, and what we hope will be an ultimately more productive basis for both nations. The administration has improved relations with various Eastern European countries, including Yugoslavia, as a result of the Vice President's visit, and Poland, as a result of Secretary Kreps' visit and the President's scheduled state visit.

ARAB-ISRAELI CONFLICT

The administration stressed the need for a comprehensive settlement which has three core elements: definition of the nature of the peace, establishment of recognized borders and security, and resolution of the Palestinian question. We have urged, with considerable success, the Arabs and the Israelis to be forthcoming on peace commitments, direct negotiations, and peace treaties. We have supported the Sadat-Begin dialog.

PEOPLE'S REPUBLIC OF CHINA

The administration has followed the Shanghai Communiqué in efforts toward normalization of relations, while emphasizing the mutuality of efforts necessary to complete the process. Recognizing their strategic importance, we have also continued to develop a consultative relationship with the Chinese on global affairs.

KOREA

The details of the Korean ground troop withdrawal plan have been designed to alleviate major Asian apprehensions that the United States is in the process of disengaging from the region.

VIETNAM

The administration has started the process of normalizing relations through talks in Paris and has established a mechanism to continue to try to account for our servicemen still missing in action.

AFRICA

Vice President Mondale informed Prime Minister Vorster in Vienna that U.S.-South Africa relations depended upon South Africa moving away from apartheid. With the British, we offered a plan for Rhodesian independence. We initiated a Five Power Group to negotiate toward an independent Namibia. We have restored good relations, based on mutual respect, with black African states of all political leanings.

LATIN AMERICA

The administration has developed a new global approach to Latin America and the Caribbean, one which recognizes the diversity of the region rather than one which pretends a single policy identified by a simple slogan. (This approach has been well received in the region.) The President signed the Panama Canal treaties. Through direct negotiations with Cuba, we have concluded a fisheries agreement and established an interest section in each country. We have ratified an exchange of prisoners treaty with Mexico and negotiated one with Bolivia. We have adopted a comprehensive policy for the Caribbean and have been joined by 28 nations and 16 international institutions to establish a Caribbean Group for Cooperation in Economic Development. We have dramatically improved our relations with a number of countries, including Venezuela, Jamaica, Peru, and Mexico.

LONDON SUMMIT

With the leaders of major industrial democracies, the President reached agreement at the London Summit on a common program for international economic cooperation.

MULTILATERAL TRADE NEGOTIATIONS

The administration has reached agreement with the European Economic Community on a timetable for negotiations, breaking a long stalemate.

DEFENSE AND SECURITY

The administration has formulated a comprehensive, national defense strategy which includes an overall American posture toward the Soviet Union. The President reached a decision not to produce the B-1 bomber but to proceed with cruise missiles.

INTELLIGENCE

The administration has reorganized the intelligence agencies and has taken comprehensive steps to protect telecommunications.

INTERNATIONAL COMMUNICATIONS

The administration has established a new International Communication Agency to replace the United States Information Agency and the Bureau of Educational and Cultural Affairs in the Department of State.

DEFENSE BUDGET REDUCTION

The President met his campaign pledge to cut military spending by $5 to $7 billion. The Ford budget for fiscal year 1978 was $123 billion. The Carter budget is $117 billion, as approved by Congress.