much outside our control, as a people no stranger is outside our hope.

Change has brought new meaning to that old mission. We can never again stand aside, prideful in isolation. Terrific dangers and troubles that we once called "foreign" now constantly live among us. If American lives must end and American treasure be spilled, in countries that we barely know, then that is the price that change has demanded of conviction and of our enduring covenant.

Think of our world as it looks from that rocket that is heading toward Mars. It is like a child's globe, hanging in space, the continents stuck to its side like colored maps. We are all fellow passengers on a dot of earth. And each of us, in the span of time, has really only a moment among our companions.

How incredible it is that in this fragile existence we should hate and destroy one another. There are possibilities enough for all who will abandon mastery over others to pursue mastery over nature. There is world enough for all to seek their happiness in their own way.

Our nation's course is abundantly clear. We aspire to nothing that belongs to others. We seek no dominion over our fellow man, but man's dominion over tyranny and misery.

But more is required. Men want to be part of a common enterprisea cause greater than themselves. And each of us must find a way to advance the purpose of the Nation, thus finding new purpose for ourselves. Without this, we will simply become a nation of strangers.

The third article is union. To those who were small and few against the wilderness, the success of liberty demanded the strength of the Union. Two centuries of change have made this true again.

No longer need capitalist and worker, farmer and clerk, city and countryside, struggle to divide our bounty. By working shoulder to shoulder together we can increase the bounty of all.

We have discovered that every child who learns, and every man who finds work, and every sick body

that is made whole-like a candle added to an altar-brightens the hope of all the faithful.

So let us reject any among us who seek to reopen old wounds and rekindle old hatreds. They stand in the way of a seeking nation.

Let us now join reason to faith and action to experience, to transform our unity of interest into a unity of purpose. For the hour and the day and the time are here to achieve progress without strife, to achieve change without hatred; not without difference of opinion but without the deep and abiding divisions which scar the union for generations.

Under this covenant of justice, liberty, and union, we have become a nation-prosperous, great, and mighty. And we have kept our freedom.

But we have no promise from God that our greatness will endure.

We have been allowed by Him to seek greatness with the sweat of our hands and the strength of our spirit.

I do not believe that the Great Society is the ordered, changeless, and sterile battalion of the ants.

It is the excitement of becomingalways becoming, trying, probing, falling, resting, and trying again— but always trying and always gaining.

In each generation-with toil and tears we have had to earn our heritage again.

If we fail now, then we will have forgotten in abundance what we learned in hardship; that democracy rests on faith, that freedom asks more than it gives, and the judgment of God is harshest on those who are most favored.

If we succeed, it will not be because of what we have, but it will be because of what we are; not because of what we own, but rather because of what we believe.

For we are a nation of believers. Underneath the clamor of building and the rush of our day's pursuits, we are believers in justice and liberty and union. And in our own Union we

world peace with armaments alone. Nor can greater worldwide prosperity be bought with money alone. These goals will be achieved only through the hard work, patience, understanding, and strength of men of good will everywhere.

Yet it is essential that we continue to put our best energies and some of our vast economic resources to work in solving the problems the world faces today. Prudent and careful expenditures for our international programs can help to keep men free, to promote understanding, and to substitute cooperation and negotiation for force in world affairs.

The 1966 budget calls for only a very modest increase in foreign economic assistance expenditures. With these funds, we will continue to concentrate our aid efforts in those less developed countries that are demonstrating the will and determination required to achieve political stability and economic growth.

We shall maintain our firm commitment to the Alliance for Progress the focus of our efforts to achieve unity and understanding in this hemisphere. As an important part of this commitment, I recommend prompt action to permit our participation in the expansion of the Inter-American Development Bank.

This budget also enables us to:

Continue our participation in and support for the United Nations.

• Maintain an adequate and alert network of diplomatic posts around the world.

Improve our overseas information activities, so that others may know us not just as a rich nation, but as a free and responsible nation as well.

• Expand the Peace Corps, by now a proven experiment in international cooperation.

In an important step to strengthen the free world's financial system, the members of the International Monetary Fund are consid

with international affairs and finance. For estimates of defense expenditures in fiscal year 1966, see ante, doc. I-2 and infra.

ering an increase in quotas. Upon completion of these discussions, expected shortly, I shall recommend that the Congress authorize promptly the funds needed to provide the U.S. share of this increase.

PART 4. THE FEDERAL PROGRAM BY FUNCTION

INTERNATIONAL AFFAIRS AND FINANCE

Through its international activities, the Federal Government remains alert and responsive to developments in a rapidly changing world. In pursuit of the objectives of world peace, stability, and prosperity, the United States participates in international organizations such as the United Nations and the Organization of American States. It increases mutual understanding through worldwide information and exchange activities. It pursues negotiations affecting a wide spectrum of problems-from the reduction of armaments to the liberalization of world trade and commerce. It builds for the future by encouraging economic and social progress in the developing nations, and it helps to avert immediate dangers to peace by providing economic as well as military assistance to threatened countries.

New obligational authority of $5.1 billion is requested for international affairs and finance activities for 1966, a decrease of about $1.6 billion from 1965. Administrative budget expenditures for these activities are estimated to be $4.0 billion in 1966, $59 million less than in 1965.

Conduct of foreign affairs.-The Department of State has primary responsibility for a wide array of activities required to conduct the Nation's foreign affairs. To fulfill its responsibilities, it must maintain diplomatic and consular posts in 113 countries-31 more than were required 5 years ago. A small number of additional diplomatic and consular posts will be opened in 1966, reflecting the forthcoming independence of new nations and the implementation of a new consular convention with the U.S.S.R."

19 Not in force during fiscal year 1966; see American Foreign Policy: Current Documents, 1964, pp. 641-643.

Principles and Objectives

Workloads will continue to increase in other areas as well. For example, more Americans will be traveling abroad in 1966, resulting in an estimated 1,320,000 applications for passports-a 10% increase over 1965. Travel of foreigners to the United States will also continue to grow. The budget anticipates that 1,365,000 nonimmigrant visas will be issued-14% over 1965. Additional commercial staff will be required to deal with increased workloads, including the promotion of U.S. exports. Improved communications to support the Foreign Service and enhanced security measures at posts abroad are also provided for.

In addition, the budget includes funds for the expenses of U.S. membership in the United Nations and other international organizations. Our participation in and support of these bodies are important to our quest for international peace, security, and cooperation.

All these activities of the Department of State will require expenditures of $306 million in 1966, $10 million more than in 1965.

The United States Arms Control and Disarmament Agency will expand its staff and contract research efforts in 1966 to formulate new U.S. approaches toward controlling and reducing arms and lessening the risk of war, and to support U.S. participation in international disarmament meetings.

Agency for International Development. The Agency for International Development administers and coordinates economic assistance programs in less developed countries where political stability, resistance to aggression, or economic and social progress are important to the foreign policy objectives of the United States. In those countries which are working to achieve economic growth and stability through concentrated self-help and selfdiscipline, the United States is supplementing local resources with long-term loans and technical and supporting assistance. In 1966, expenditures for all AID activities are estimated to total $2.1 billion, an increase of $50 million over 1965.

In these and other major countries, U.S. financial help is part of a systematic program of modernization carried out in accordance with a development plan. This help usually represents an agreed-upon U.S. share of the total amount of assistance provided by most of the major industrial countries of the free world. Where comprehensive development plans have not yet been formulated and approved, lending is normally undertaken only for specific projects, each of which is carefully reviewed in terms of its technical soundness and its relative contribution to overall growth.

In most countries, dollar loansto be effective-must be complemented by technical cooperation. The United States meets this need through grants for part of the costs of furnishing U.S. advisers who can bring American experience and technical skills to bear on the various complex problems of economic development. Expenditures for such grants are expected to amount to

$205 million in 1966, $15 million more than in 1965.

Alliance for Progress.-Through the Alliance for Progress, the United States is working with the Latin American nations in a special effort to achieve the economic and social reforms required to accelerate economic growth. U.S. participation in these efforts involves primarily development loans and technical assistance.

This budget includes new obligational authority of $580 million for 1966 for the Alliance for Progress activities of the Agency for International Development; expenditures in 1966 are estimated at $398 million, an increase of $33 million over 1965. Other important Alliance activities will be carried out through the Inter-American Development Bank, the Export-Import Bank, the Food for Peace Program, and the Peace Corps.

Other AID programs.-In some cases, the United States provides supporting assistance grants and loans to counter immediate threats to political and economic stability which, in turn, pose danger to free world security. The number of countries in which such financing is necessary has declined sharply in recent years, but there continue to be urgent requirements in the Far East-primarily in Vietnam. Expenditures for supporting assistance are estimated to rise to $390 million in 1966 from $370 million in 1965.

The United States makes substantial contributions to programs of international organizations which complement our bilateral aid efforts. These programs range from general development assistance operations, such as those of the United Nations Special Fund, to specific activities, such as the Indus Basin Development program administered by the World Bank.

AID programs for guaranteeing private investment abroad are encouraging increased participation by the American business community in the developing countries. To accelerate this trend, legislation is recommended to increase substantially the authority to extend these guarantees. The value of guarantees outstanding is expected to rise in 1966 to a total of $4 billion, about $1 billion more than in 1965.

Other economic and financial programs.-New obligational authority of $456 million is requested for 1966 to strengthen the Alliance for Progress through expansion of the resources and activities of the InterAmerican Development Bank. This total includes a request for $206 mil

lion in new obligational authority to provide the second and final installment of a $412 million increase in the U.S. subscription of callable capital held in reserve in the U.S. Treasury against Bank borrowing in private capital markets. No expenditure of these funds is contemplated.