Primary and secondary school enrollment in South Vietnam has increased five times. By 1968, 13,000 new village classrooms will have been built to provide for over threequarters of a million young schoolchildren. We have helped to distribute 7 million textbooks in the past 3 years and we are providing 1,700 new teachers every year.

More than 10,000 Vietnamese are now receiving vocational training as a result of the program we have laid out in that country.

I believe this is a good record. It's a record I would like the American people to know more about. I hope that they will study it, observe it, give us their suggestions in the days to come.

We have not waited for the fighting to end before we have the beginnings of the works of peace. We are even now attacking with all of our strength the basic problems in Vietnam―illiteracy, poverty, disease. It is these problems that bring on the wars. We must continue to press this battle forward, and we will do so.

Mr. Komer, my Special Assistant in charge of this work, has just returned from South Vietnam with this report that I have summarized briefly for you.

DISCUSSIONS WITH SECRETARY MCNAMARA

AND CLARK CLIFFORD

[2.] I have asked Secretary McNamara to stop here tomorrow to discuss with me various matters prior to his meeting in Honolulu Friday with Admiral Sharp, Commander in Chief of the Pacific. During his 1-day meeting in Hawaii, Secretary McNamara will receive from Admiral Sharp a report on the program of military operations in Southeast Asia and will discuss logistical plans for future operations.

Mr. Clark Clifford, Chairman of the President's Advisory Board on Foreign In

telligence, will be coming to the ranch later today to review intelligence matters with me, and will stay overnight here at the ranch.

ANNOUNCEMENTS OF APPOINTMENTS

[3.] I am nominating Mr. Robert B. Bowie to be Counselor of the Department of State. Mr. Bowie is professor of international relations and director of the Center for International Affairs at Harvard University. He has a distinguished record in the military service and in foreign policy and as a scholar in the field of international affairs. He will be a very valuable new member of the foreign policy advisers who serve the President and who serve this Nation.

[4] Today I am nominating four new judges:

Donald P. Lay of Omaha, to the U.S. Court of Appeals, 8th Circuit.

Walter J. Cummings, Jr., of Chicago, to the U.S. Court of Appeals, 7th Circuit. Thomas E. Fairchild, of Milwaukee, to the U.S. Court of Appeals, 7th Circuit.

Theodore Cabot, of Fort Lauderdale, to be U.S. district judge for the southern district of Florida.

[5] I am pleased also to make the following announcements of my intention to send these nominations to the Senate:

-Mr. Wilfrid Johnson, of Richland, Washington, to be a member of the Atomic Energy Commission. Mr. Johnson has been general manager of General Electric's nuclear activities at Hanford, Washington. He has been strongly recommended by the members of the Commission and by members of the Joint Committee on Atomic Energy in the Congress.

-Mr. Paul Miller, president of the University of West Virginia, to be the new Assistant Secretary for Education of the Department of Health, Education, and Wel

fare.

-Mr. Frank DiLuzio, Director of the Office of Saline Water, to be Assistant Secretary of the Interior in charge of our very new and important water pollution program that is in that Department.

VICE PRESIDENT'S REPORT ON DOMINICAN REPUBLIC

[6.] I had the pleasure of visiting with the Vice President by telephone this morning and he reported to me on his trip to the Dominican Republic where he represented our country at the inauguration of the new President that the people of that country have selected, Dr. Balaguer.1

He had high praise for the people and the leaders of the Dominican Republic for their perseverance and faith during the past year of this great crisis. He said the recent elections represent not only a respect for constitutional government, but the desire of the Dominican people for peace and tranquility.

I asked the Vice President to discuss with Dr. Balaguer the economic assistance which the United States has been providing the Dominican Republic in the past, and to analyze the future needs of that economy. Dr. Balaguer and his government face staggering problems.

I think you would be interested in knowing that approximately 25 percent of the working force in the Dominican Republic is presently unemployed.

The Vice President reports that the Dominican Government is moving to face these problems forcefully, and he believes effectively.

I will discuss the Vice President's report with Secretary Rusk and other officials to make certain we are doing everything we

'Dr. Joaquin Balaguer took office as President of the Dominican Republic on July 1, 1966.

can to assist the courageous people of the Dominican Republic. Mr. Rostow is already analyzing and evaluating the Vice President's report and will have recommendations for me when he arrives tomorrow.

They seem determined to make constitutional government work in the Dominican Republic and to improve the well-being of every citizen. I know that all Americans wish them well.

SECRETARY MCNAMARA'S REPORT ON BUILDUP OF FORCES IN VIETNAM

[7] I have today received from Secretary McNamara an appraisal of the efficiency of the buildup of the United States forces in Vietnam. I am pleased, as his report indicates that he will attempt to reduce the planned rates of production substantially 90 to 180 days from now.

In the report to the President by Secretary McNamara he says:

"Approximately 1 year ago the buildup of our forces in Vietnam was initiated at your direction. I believe it is timely," he says, "to report to you the results of that action.

"First, I would point out that never before in our history has it been possible to accomplish such a rapid and such an effective. expansion of our Armed Forces without the need to mobilize the Reserve forces, and to call up the Reserves, to impose stringent economic controls and emergency controls on our economy, or to require involuntary extensions of active duty throughout the

services.

"As Commander in Chief, you have reason to be proud of the magnificent professional leadership which our men in Vietnam are receiving from General William C. Westmoreland, his officers, and his noncommissioned officers and men. This matchless

leadership is paralleled by the fact that no military force has been so well supplied.

"Despite the fact that we deployed a military force of more than 100,000 men within 120 days and sent them halfway around the world, we have been able to keep that force constantly supplied and equipped so that at all times they have been capable of bringing to bear their full power against the aggressor. "As General Earle G. Wheeler, Chairman of the Joint Chiefs of Staff, has reported:

"There have been no shortages in supplies for the troops in Vietnam which have adversely affected combat operations or the health or welfare of our troops. No required air sorties have been canceled. As a matter of fact, the air support given our forces is without parallel in our history.'

"With ample inventory stocks still on hand, our production of ammunition and air ordnance this month will exceed our consumption this month.

"Indeed," says Secretary McNamara, “I believe it may very well prove desirable to reduce planned rates of production substantially. Such action would be in keeping with your insistence that the Department of Defense make certain that all military requirements are fulfilled, while achieving this objective with maximum economy for our taxpayers. By continuing to carefully adjust expenditures and production and by resisting the temptation to ask for more money and to spend more money than we need, I believe," says the Secretary, "we can avoid the carryover that was represented by $12 billion of surplus and worthless materiel. with which we concluded the Korean war. "Our buildup has been responsive. It has been forceful, and it has been effective."

BUDGET DEFICIT

[8.] Just one brief note in conclusion:

While final figures on the receipts and expenditures for fiscal 1966 which ended June 30th are not yet available, it is very clear to me this morning, after a conference with. the Chairman of the President's Economic Advisers and the Director of the Bureau of the Budget, that the administrative budget deficit for this year will be very substantially below the $5.3 billion originally estimated in January 1965, and far below the $6.4 billion forecast this past January.

This marks the third straight year in which the actual deficit has been lower than what the President predicted. In fiscal 1964 the actual deficit was $3.7 billion below what the President promised the Congress in his estimate. In 1965 it was $12 billion below what the President had recommended in his estimate.

We will not know the final 1966 figures for several weeks, but it is already clear that the reduction in the deficit below our original estimate of 18 months ago will be greater than we achieved in 1965.

In the 10 years prior to fiscal 1964, the actual budget outcome averaged $2.9 billion worse than the original predicted figure.

I believe the fiscal outcome for the past year and for the previous years for which I am responsible demonstrates three things:

First, we have tried to make a realistic estimate of both our revenues and expenditures, and to be conservative and careful in those estimates.

Second, we have made an unremitting effort to hold our expenditures wherever possible at or below our initial estimates.

I am proud to tell you that I believe that will be done so far as domestic expenditures are concerned this year by several hundred millions of dollars.

Third, we have maintained the strength.

2 Gardner Ackley and Charles L. Schultze.

[9.] Q. Mr. President, going back to the subject of Vietnam, what have been the effects of our intensified airstrikes on military targets in North Vietnam? What has been the effect on their rate of infiltration? In other words, what have been the noticeable results since we started hitting the oil tanks?

THE PRESIDENT. The evaluations that we have, and they are still coming in-we have new pictures that are being analyzed at this moment-the evaluations that we have indicate that about 86 percent of the known petroleum storage capacity in North Vietnam was hit the other evening in a very accurate target operation over the POL targets in the vicinity of Hanoi and Haiphong.

The latest estimate of the storage capacity actually destroyed that has come in from the field is 57 percent.

In other words, 86 percent of the storage was hit; 57 percent they estimate is destroyed.

I cannot embrace those figures because the pictures are not complete. But the general officers who have reviewed this told me this morning that they think both estimates are within reason, and they think it was a very successful operation.

I think that every general officer carrying. responsibilities, either in Vietnam or in the

Pentagon, as well as most of our career, experienced, diplomatic observers, think that this action at this time was required by the events of the time.

SELECTIVE SERVICE REVIEW

3

[10.] Q. Mr. President, last Saturday you ordered an exhaustive review of the Selective Service. On the basis of your conversations with your advisers, Congressmen, and what you have heard from the general public, what is your appraisal of the defects and shortcomings of the military draft as it is now administered?

THE PRESIDENT. We have developed the best system that we have known how to, in the light of our experiences.

We have asked the Pentagon to review it from their standpoint, and they have done so. They are now presenting their views to the appropriate committees in the Congress.

I have asked some of our most distinguished citizens-Mr. Burke Marshall, former Assistant Attorney General; Mr. Thomas Gates, former Secretary of Defense under General Eisenhower; Mrs. Oveta Culp Hobby, former Director of the WACS and a Cabinet officer under General Eisenhower-and some of the best talent in this Nation to review all the alternatives available to a country which finds it necessary to draft its young men.

I don't want to prejudge that study. That study is in the process of being made. We will have a very competent staff. We expect to have some conclusions and some recommendations to present to the next session of Congress in ample time for them to carefully consider before the present draft law expires.

3 See Item 315.

STATUS OF BUILDUP IN VIETNAM

[11.] Q. Mr. President, in view of your statement at the beginning of the news conference, in which you talked about the successful military buildup, and also about the fact that we may be able to cut back some of our military production, would it be accurate for us, Mr. President, to analyze this as indicating that the major part of the buildup has now been accomplished in Vietnam?

THE PRESIDENT. No, I wouldn't make such an evaluation.

I would say so far as ammunition is concerned the Secretary hopes that within 90 to 180 days he can make some recommendations. I think it is his feeling that those recommendations that he will make, which will have the support of the Joint Chiefs of Staff, will result in the saving of several hundreds of millions of dollars over what the cost would be at the present rate.

That is not to indicate, though, that we will not call up additional men; that we will not train additional men; that we will not procure additional planes; that we will not procure additional helicopters; that we will not send additional people overseas—because we will do all of those things.

But we are watching it very carefully so we won't have a $12 billion holdover at the end of the difficulties in Vietnam.

LATIN AMERICA

[12.] Q. Mr. President, could you assess the prospects now for democracy and for continued economic and social growth in Latin America in view of the military takeover in Argentina and prior to that in Brazil?

THE PRESIDENT. Yes. We regret the action that took place in Argentina recently. We have had similar actions of that type in

the last year, two or three instances. They are less in the last few months than they have been heretofore.

We are very encouraged by what has hap pened generally in Latin America. We are very proud of our record of growth there.

We are spending about a billion dollars, or a little in excess of a billion dollars, in our Alliance for Progress program in Latin America.

We find the per capita growth rate has jumped from 1 percent to in excess of 21⁄2 percent. That already equals and exceeds the goals that we had set for the Alliance for Progress.

Notwithstanding the grave predictions made and the discouragement that the Dominican people received from many quarters, they have had a peaceful election. A majority of the people have exercised their democratic right to select a government of their own choosing.

They have selected that government.

They have just finished a similar exercise in Guatemala, and some four or five additional Latin American nations.

THE PRESIDENT'S VIEW OF THE WORLD SITUATION GENERALLY

[13.] We would say, as we look around the world, at this hemisphere, Latin America, the prosperity, the democratic evolution that is taking place, when we look over Africa, look over Southeast Asia generallywith the exception of our problem in Vietnam-when we take a look at the Middle East and Western Europe, we have much to be thankful for, generally speaking, much to be encouraged about.

Now I find that true and that to be the judgment of most of our experienced career diplomats.

We think that on practically every conti