Lyndon B. Johnson

TRADE AND OTHER CONTACTS WITH CHINA

[12.] Robert Pierpoint, CBS News: Under what conditions, Mr. President, would the administration consider reducing its trade barriers against Communist China?

THE PRESIDENT. I think until we can have more understanding of what China's plans are and China's hopes are, and what China expects to do in her own way in the future, we would not want to determine our complete course of conduct.

I think we have tried to lead the way by asking them to accept as visitors some of our people, some of our businessmen, and to discuss these problems with them.

We fervently hope, as I have said again and again and again, that all nations in the world will give up their thoughts of aggression and force, and will be willing to abide by the principles of the United Nations

in cases of emergencies that vitally affect the public interest.

I must frankly say to you that up to this point we have been unsuccessful in getting legislation that the Secretary of Labor and the other members of my Cabinet felt acceptable, and that we felt would have any chance of passage in the Congress.

We are still searching for an answer. And we would like to find a solution that could be embraced by the administration, management, labor, and the Congress. But up to this point we have been quite unsuccessful.

EFFECT OF HIGH INTEREST RATES

[14] Mrs. Sarah McClendon, El Paso Times: Mr. President, every State and every city almost is feeling this terrible tight money squeeze and lack of credit, particularly in the housing industry. Mr. Larry Blackmon, the head of the Home Builders,' has called an emergency meeting for July 27. I wonder if you have any solution or any policy that will help us out?

THE PRESIDENT. No, we have made suggestions to the Congress before they recessed. The Secretary of the Treasury met with the appropriate committees and recommended. that they take certain action in connection. with deposits of $10,000 or under, or $100,000 or under, by placing a maximum ceiling rate on the interest paid on those deposits.

The administration thought that would be helpful. The Congress did not desire to act at that time.

They passed a resolution calling upon the Federal Reserve Board to take action in the matter. The Secretary of the Treasury went back to a committee of the Congress, and is working with them now.

I discussed that subject last night. He

'Larry Blackmon, president of the National Association of Home Builders.

See Item 6.

hopes that we can obtain action through the Banking and Currency Committee of the House on legislation that will be helpful.

We are seriously concerned with the plight of the homebuilder. We are distressed at the increased costs that are involved in the high interest rates.

We had deep concerns last December when the increase was made by the Federal Reserve before the budget was submitted and without coordinating with the other fiscal agencies of the Government. But in the light of the situation as we see it now, the best thing that can be done is for Congress to act upon the legislation we have recommended.

We expect them to do that. And we will do everything we can to expedite it.

THE PRESIDENT'S CAMPAIGN PLANS

[15] Robert G. Spivack, Publishers Newspaper Syndicate: Mr. President, I know you are concerned about Vietnam and with your many domestic problems. And I know there have been suggestions that you are not a very good politician, but this is a political year and I wonder what your plans are for participating in the campaign, particularly where Pat Brown is concerned, or some of the other races that might be of interest.

THE PRESIDENT. Well, Bob, I am inclined to agree with some of those people who think that I am not a very good politician some of the time. I am going to try to do my job as best I can.

I do recognize this is election year. I will be called upon to visit various parts of the country. I expect to do so. I don't think

The bill to stimulate mortgage credit for residential construction was approved by the President on September 10, 1966 (see Item 451).

* Governor Edmund G. (Pat) Brown of California.

that the people of California need any advice from me to know that Governor Brown has been a great Governor.

I expect to repeat that statement if given the opportunity between now and November, not only in California, but other places.

I think a part of the President's job is to go out into the country, to meet the people, to talk to them, to exchange viewpoints with them.

I plan to take Saturday off this weekend and to go into Kentucky, Tennessee, Illinois, and Indiana, and I will spend the weekend visiting with the people of those States.

I don't expect to do that every week, but as my duties here in the White House permit, I will take advantage of every opportunity to go out into the country and discuss our program, our convictions; tell them what we stand for, and ask for their support.

SUMMIT MEETING OF WESTERN HEMISPHERE

LEADERS

[16.] Catherine Mackin, Hearst Newspapers: Mr. President, at your last press conference you expressed some satisfaction in the economic and political growth of South America.10 In view of this, I wonder if you can tell us what progress is being made toward the summit of Western Hemisphere leaders, and when that meeting will be held?

THE PRESIDENT. We do not have a date or a place. The leaders of the countries in the hemisphere are now very carefully considering the subjects for that conference. The staff work is being done on the subjects and the problems that the conference would deal with.

I am unable to, and I think the leaders of the hemisphere at this time are unable, to designate a time or place.

I discussed with the President-elect of Bolivia" today this conference, and we look forward with a great deal of interest, other countries being willing, to carrying out the suggestions originally made by a Latin American leader. But the time has not been

set.

We think it would be very fruitful and we would be glad to attend it, and we will, assuming time is given for proper preparation by the staff people.

TREATMENT OF AMERICAN PRISONERS

[17.] John Scali, ABC News: Mr. President, there have been an assortment of rumors from Communist sources during the past week which indicate that the North Vietnamese leaders may be planning to place American prisoners in factories, or, indeed, even in oil installations in an effort to force you to call off the attacks. What would your reaction be to any such move?

THE PRESIDENT. John, I have tried to give my viewpoint and the viewpoint of this Government on the men who have been captured. I would hope that they would receive humane treatment in accordance with the principles of the Geneva Convention of 1949.

I believe that any other treatment accorded them would not be accepted by the civilized world. And I do not want to make any predictions or speculations about what will happen.

I have expressed my viewpoint on what should happen.

FREEDOM OF THE PRESS

[18.] Richard Wightman, Fairchild

"Gen. Rene Barrientos Ortuno, who took office as President of Bolivia on August 6, 1966.

Newspapers: Mr. President, you recently said that freedom of information should never be restricted unless it affected national security. One of my papers, Women's Wear Daily, obtained from one of its own sources a news story about your daughter's wedding 12 and printed it.

Because of this, the White House has withdrawn our press credentials to cover the wedding.

Don't you think in light of this that it rather goes against your own philosophy of press freedom?

THE PRESIDENT. I guess I would need a little more information before I got into a complete answer to your question.

The information I have indicated that in order to serve all the press, certain rules were laid down, and that the press, for their convenience, was asked to follow those rules so no one would have an advantage.

Because either some did not accept the rules or some did not follow them, some differences emerged. But if I could have your permission to just step aside on any of the detailed wedding arrangements, I would like very much to do so. Thank you very much.

THE SITUATION IN VIETNAM GENERALLY

[19.] Spencer Davis, Associated Press: Mr. President, would you give us your appraisal of how the Vietnam war is going, sir, particularly whether or not more manpower might be required there?

THE PRESIDENT. Yes, more manpower will be required. We are working day and night on all four fronts.

The economic front-and the report this

12 The President's daughter Luci was to be married to Patrick J. Nugent on August 6, 1966, at the Shrine of the Immaculate Conception in Washington, D.C.

evening from Ambassador Lodge 13—indicates that there has been some improvement in prices and the economic situation there. The diplomatic front-our representatives and the representatives of other nations are now exploring in other capitals, in many other places, the possibilities of trying to find a way to get to the peace table.

On the political front, plans are going forward for the election of the Constituent Assembly early in September, and numbers and numbers of candidates are filing for the places.

We are supplying such advice and counsel as we can in the hope that this will be an orderly democratic election where the majority of the people can freely express themselves, and select the leaders of their choice. On the military front, our troops under General Westmoreland 14 are giving an excellent account of themselves. They are attempting to anticipate the enemy and doing everything they can to deter him from further aggression, from additional infiltration, and from the terror that he practices.

The results have been that the enemy has lost about 10 men for every loss the Americans have suffered.

I believe the record for the last 10 weeks shows that the enemy has lost in excess of 1,000 men each week. Our average has been something like 100. This week I believe it is less than 100, and I believe theirs is more than 1,200.

The mail that I get, some 50 or 60 letters from the battlefront each week, shows the morale is high, that the men are well trained, that they are well and adequately supplied, and properly led.

"Henry Cabot Lodge, U.S. Ambassador to the Republic of Vietnam.

"Gen. William C. Westmoreland, Commander, United States Military Assistance Command, Viet

nam.

We ceased speculating a long time ago on how long this situation would endure. But I have said to you and to the American people time and again, and I repeat it today, that we shall persist.

We shall send General Westmoreland such men as he may require and request, and they will be amply supplied. I have no doubt but what they will give a good account of themselves.

Overall, I would say that the reports from the captured prisoners-and there have been about twice as many defectors so far this year as there were the same period last year, some 10,000 compared to 4,000-but the interviews from a sample of 150 this week indicate that about 15 to 20 percent of the men that have been captured show that they are boys from 12 to 16 years of age.

They show that a good many of their people take 3 months in the infiltration, walking down from North Vietnam, that a good many of them are suffering from malaria, and beriberi, and other diseases.

The men who conducted the bombings on the military targets, the oil supplies of Hanoi and Haiphong, did a very careful but very perfect job. They hit about 90 percent of the total capacity of that storage, and almost 70 percent of it was destroyed.

Our reports indicate that there were few civilian lives lost, if any. One estimate was that one civilian was killed, and he was the one that was at the alarm center.

We were very careful not to get out of the target area, in order not to affect civilian populations. But we are going, with our allies, to continue to do everything that we can to deter the aggressor and to go to the peace table at the earliest possible date.

Merriman Smith, United Press International: Thank you, Mr. President.

NOTE: President Johnson's sixty-eighth news conference was held in the East Room at the White