By Mr. SYMINGTON (for himself and Mr. LONG of Missouri): S. 2460. A bill to amend the act of July 13, 1959, so as to extend the period of time within which certain construction may be undertaken by the State of Missouri on lands conveyed to such State by the United States; to the Committee on Public Works.

By Mr. TALMADGE:

S. 2461. A bill for the relief of Vassilios I. Mamais; to the Committee on the Judiciary.

By Mr. KEATING:

S. 2462. A bill for the relief of the estate of Donovan C. Moffett; to the Committee on Finance.

S. 2463. A bill for the relief of Miss Agnese Goffredo; to the Committee on the Judiciary.

By Mr. MUSKIE (for himself and
Mrs. SMITH):

S. 2464. A bill to establish the Roosevelt Campobello International Park, and for other purposes; to the Committee on Foreign Relations.

By Mrs. NEUBERGER:

S.J. Res. 151. Joint resolution to authorize and direct the Secretary of Agriculture to conduct research into the quality and health factors of Flue-cured tobacco; to the Committee on Agriculture and Forestry.

ADDED COAUTHORS OF CERTAIN BILLS Under authority heretofore granted, the following-named Senators have been added as coauthors of the following bills, previously introduced:

S. 2427. A bill to establish a Commission on Automation, Technology, and Employment: Mr. BARTLETT, Mr. BREWSTER, and Mr. WILLIAMS of New Jersey.

S. 2429. A bill to confer upon the Federal Trade Commission the power and duty to regulate the advertising and labeling of cigarettes: Mr. CHURCH, Mr. MCGOVERN, Mr. METCALF, and Mr. NELSON.

S. 2430. A bill to bring under control the health hazards produced by the smoking of cigarettes: Mr. CHURCH, Mr. MCGOVERN, Mr. METCALF, and and Mr. NELSON.

INVESTIGATION OF PROBLEMS OF AMERICAN SMALL AND INDEPENDENT BUSINESS Mr. SPARKMAN (for himself and Mr. SALTONSTALL) submitted the following resolution (S. Res. 284); which, under the rule, was referred to the Committee on Rules and Administration:

Resolved, That the Select Committee on Small Business, in carrying out the duties imposed upon it by S. Res. 58, Eighty-first Congress, agreed to February 20, 1950, and S. Res. 272, Eightyfirst Congress, agreed to May 26, 1950, is authorized to examine, investigate, and make a complete study of the problems of American small and independent business and to make recommendations concerning those problems to the appropriate legislative committees of the Senate.

SEC. 2. For the purposes of this resolution, the committee, from February 1, 1964, to January 31, 1965, inclusive, is authorized (1) to make such expendi

tures as it deems advisable; (2) to employ, upon a temporary basis, technical, clerical, and other assistants and consultants; and (3) with the prior consent of the heads of the departments or agencies concerned, and the Committee on Rules and Administration, to utilize the reimbursable services, information, facilities, and personnel of any of the departments or agencies of the Government.

SEC. 3. The committee shall report its findings, together with its recommendations for legislation as it deems advisable, to the Senate at the earliest practicable date, but not later than January 31, 1965.

SEC. 4. Expenses of the committee under this resolution, which shall not exceed $125,000, shall be paid from the contingent fund of the Senate upon vouchers approved by the chairman of the committee.

INCREASE OF EXPENDITURES FOR HEARINGS BEFORE COMMITTEE ON ARMED SERVICES Mr. RUSSELL, from the Committee on Armed Services, reported the following resolution (S. Res. 285); which was referred to the Committee on Rules and Administration:

Resolved, That the Committee on Armed Services hereby is authorized to expend from the contingent fund of the Senate, during the Eighty-eighth Congress, $10,000 in addition to the amount, and for the same purposes, specified in section 134(a) of the Legislative Reorganization Act, approved August 2, 1946. INVESTIGATION OF CERTAIN MATTERS RE

LATING TO NATIONAL DEFENSE

Mr. STENNIS, from the Committee on Armed Services, reported the following resolution (S. Res. 286); which was referred to the Committee on Rules and Administration:

Resolved, That the Committee on Armed Services, or any duly authorized subcommittee thereof, is authorized under sections 134 (a) and 136 of the Legislative Reorganization Act of 1946, as amended, and in accordance with its jurisdiction specified by rule XXV of the Standing Rules of the Senate, to examine, investigate, and make a complete study of any and all matters pertaining to

(1) Common defense generally; (2) The Department of Defense, the Department of the Army, the Department of the Navy, and the Department of the Air Force generally; (3) Soldiers' and sailors' homes; (4) Pay, promotion, retirement, and other benefits and privileges of members of the Armed Forces;

(5) Selective service;

(6) Size and composition of the Army, Navy, and Air Force;

(7) Forts, arsenals, military reservations, and navy yards;

(8) Ammunition depots;

(9) Maintenance and operation of the Panama Canal, including the administration, sanitation, and government of the Canal Zone;

(10) Conservation, development, and use of naval petroleum and oil shale reserves;

(11) Strategic and critical materials necessary for the common defense;

(12) Aeronautical and space activities peculiar to or primarily associated with the development of weapons systems or military operations.

SEC. 2. For the purpose of this resolution the committee, from February 1, 1964, to January 31, 1965, inclusive, is authorized to (1) make such expenditures as it deems advisable; (2) to employ upon a temporary basis, technical, clerical, and other assistants and consultants: Provided, That the minority is authorized to select one person for appointment, and the person so selected shall be appointed and his compensation shall be so fixed that his gross rate shall not be less by more than $1,600 than the highest gross rate paid to any other employee; and (3) with the prior consent of the heads of the departments or agencies concerned, and the Committee on Rules and Administration, to utilize the reimbursable services, information, facilities, and personnel of any of the departments or agencies of the Government.

SEC. 3. The expenses of the committee under this resolution, which shall not exceed $190,000 shall be paid from the contingent fund of the Senate upon vouchers approved by the chairman of the committee.

OPPOSITION TO FRENCH RECOGNITION OF RED CHINA

Mr. DODD (for himself, Mr. DOUGLAS, Mr. MUNDT, Mr. DOMINICK, Mr. ALLOTT, Mr. RIBICOFF, Mr. SMATHERS, and Mr. THURMOND) submitted the following resolution (S. Res. 287) which was referred to the Committee on Foreign Relations:

Whereas the relations between France and the United States have been characterized by mutual friendship and respect since the founding of our Nation; and

Whereas the French people and the American people have fought shoulder to shoulder in two World Wars and are again allied today against the threat of Communist aggression; and

Whereas the Western Alliance cannot survive without an alliance of the spirit and of understanding between France and America; and

Whereas the recognition of Communist China by France would make more difficult the task of arresting the erosion of recent years in the relationship between our countries, and would thereby endanger the cause of freedom; and

Whereas the administration has let it be known that it has communicated with President de Gaulle its own firm view that the recognition of Red China at this time would be most unwise and unfortunate; and

Whereas it may not yet be too late to persuade our French allies to reconsider their position: Therefore be it

Resolved, That the Senate of the United States go on record as supporting the stand taken by the administration on this issue: and be it further

Resolved, That the Senate adopt the following statement of position so that our French allies can be left in no doubt as to the broad bipartisan support which

the administration enjoys in opposing the recognition of Red China, and so that they will have a better understanding of the reasons that motivate American opposition to the fateful step France is now preparing to take.

All men who cherish freedom have been gravely disturbed by the growing cleavage between France and America in recent years.

We recognize that the responsibility for the series of differences that have alienated our two countries probably does not lie wholly on one side.

We have all been hopeful that the differences of the past might be overcome and a new and better understanding achieved between France and America, through the processes of diplomacy.

But we fear that French recognition of Red China would gravely damage the prospect of reconciliation between our two nations. While the American people regard other differences as negotiable, the recognition of Red China in their eyes is not negotiable.

We implore our French friends not to underestimate or minimize the strength of American conviction on this issue. There is no single issue on which there has been greater unity between Democrats and Republicans and between Congress and successive administrations. A measure of our conviction is the fact that both Houses of Congress have repeatedly voted against the recognition of Red China, and that the conventions of both parties in 1956 and again in 1960 adopted platforms which specifically rejected the recognition of Red China and its admission to the United Nations.

The experience with Nazi Germany demonstrated that there are regimes which are organically aggressive, and that one cannot placate such regimes by offers of concessions or by catering to their desire for enhanced acceptability and prestige. The only result of concessions to such regimes is to increase their contempt for the democracies and to spur them to further acts of aggression.

The American people believe that no regime in history has shown itself to be so inextricably wedded to aggression as the Chinese Communist regime. In less than 15 years in power, it has been guilty of direct military aggression in Korea and in India, it has been guilty of sponsoring and supporting the Vietminh forces against the French, the Malayan guerrillas against the Brtish, the Laotian Communists against the Laotian Government and the Vietcong forces against the Government of South Vietnam. Anything which enhances the prestige of this Government will, we are certain, automatically enhance its power of aggression and subversion, and lead, ineluctably, to the enslavement of more millions of peoples.

Some of our French friends have made the comment that the United States, for some reason which they cannot understand, appears to be reacting much more violently to the proposed French recognition of Red China than they reacted to British recognition of Red China in 1950. There is a world of difference. however, between the recognition of such

a regime at the point of inception when there was perhaps some excuse for misappraisal and wishful thinking, and the recognition of this regime in the year 1964, after its appalling and unbroken record of aggression. We are certain that, had the British postponed recognition of Red China and had they proposed to offer recognition today, the American people would react just as strongly as they are now to the proposed recognition of Red China by the Government of France.

We believe that in the light of the British experience, there is less reason, not more reason, for recognizing Red China today than there was when Britain took the fateful step in 1950.

British recognition has brought Britain no advantages.

It has in no way served to moderate Red China's behavior vis-a-vis her neighbors.

It has diminished rather than augmented the security of the area.

And it has demonstrated how terribly difficult it is to undo such an action. once it has been taken, even when the course of history has established its futility.

France under President de Gaulle has always stood against appeasement and against compromise with tyranny. President de Gaulle has played a historic role both in the defeat of nazism and in the promotion of a united Europe.

We pray that the lessons of recent decades in Europe will not be forgotten in Asia.

We pray that even at this late hour our French allies will take the time to consider our plea that France and America stand united today, as they have in the past, in their opposition to the menacing tide of Communist imperialism both in Europe and in Asia.

And we pray that the confirmation of our unity of interest and purpose on this issue will pave the way to a broader unity between our two great nations.

GERMANENESS OF DEBATE UNDER CERTAIN CONDITIONS

Under the order of yesterday, the Senate resumed the consideration of its unfinished business, viz, the resolution (S. Res. 89) providing for germaneness of debate under certain conditions.

The question being on agreeing to the resolution, as amended.

EXECUTIVE SESSION

On motion by Mr. PASTORE, and by unanimous consent,

The Senate proceeded to the consideration of executive business; and after the consideration of executive business,

LEGISLATIVE SESSION

The Senate resumed its legislative session.

GERMANENESS OF DEBATE UNDER CERTAIN CONDITIONS

The Senate resumed the consideration of its unfinished business, viz, the resolution (S. Res. 89) providing for germaneness of debate under certain conditions. Pending debate,

RECESS UNTIL 2 O'CLOCK P.M. TODAY On motion by Mr. KUCHEL, at 1 o'clock and 19 minutes p.m.,

The Senate took a recess until 2 o'clock p.m. today.

AT 2 O'CLOCK PM.

The PRESIDING OFFICER (Mr. KUCHEL in the chair) called the Senate to order.

MESSAGE FROM THE HOUSE

A message from the House of Representatives, by Mr. Bartlett, one of its clerks:

Mr. President: The Speaker of the House of Representatives has appointed on the part of the House Mr. Curtis of Missouri, as a member of the Joint Committee on Internal Revenue Taxation, to fill an existing vacancy.

GERMANENESS OF DEBATE UNDER CERTAIN CONDITIONS

The Senate resumed the consideration of its unfinished business, viz, the resolution (S. Res. 89) providing for germaneness of debate under certain conditions.

The question being on agreeing to the resolution, as amended,

After debate,

The question being taken on agreeing to the resolution, as amended, as follows:

Resolved, That rule VIII of the Standing Rules of the Senate be amended by adding at the end thereof the following paragraph:

"At the conclusion of the morning hour or after the unfinished business or pending business has first been laid before the Senate on any calendar day, and until after the duration of three hours, except as determined to the contrary by unanimous consent or on motion without debate, all debate shall be germane and confined to the specific question then pending before the Senate."

It was determined in (Yeas.... 57 the affirmative........\Nays..

25

So the resolution, as amended, was agreed to.

On motion by Mr. PASTORE to reconsider the vote agreeing to the resolution, as amended,

On motion by Mr. KUCHEL, The motion to reconsider was laid on the table.

ORDER FOR ADJOURNMENT UNTIL MONDAY NEXT

On motion by Mr. MANSFIELD, and by unanimous consent,

Ordered, That when the Senate concludes its business today it adjourn until Monday next.

AMENDMENT OF SMALL BUSINESS INVEST

MENT ACT OF 1958

The PRESIDING OFFICER (Mr. WALTERS in the chair) laid before the Senate the amendments heretofore received from the House of Representatives for concurrence to the bill (S. 298) to amend the Small Business Investment Act of 1958.

On motion by Mr. PROXMIRE, Resolved, That Senate disagree to the amendments of the House of Representatives to the said bill and ask a conference with the House on the disagreeing votes of the two Houses thereon.

Ordered, That the conferees on the part of the Senate be appointed by the Presiding Officer; and

The PRESIDING OFFICER appointed Mr. PROXMIRE, Mr. ROBERTSON, Mr. SPARKMAN, Mr. DOUGLAS, Mrs. NEUBERGER, Mr. MCINTYRE, Mr. SIMPSON, Mr. TOWER, and Mr. DOMINICK.

Ordered, That the Secretary notify the House of Representatives thereof.

PLANNING IN METROPOLITAN AREAS

On motion by Mr. HUMPHREY, The Senate proceeded to consider the bill (S. 855) to provide for more effective utilization of certain Federal grants by encouraging better coordinated local review of State and local applications for such grants; and the reported amendments to the text having been agreed to, Ordered, That the bill be engrossed and read a third time.

The said bill was read the third time. Resolved, That it pass and that the title thereof be amended, as reported by the committee, to read: "A bill to provide for more effective utilization of certain Federal loans or grants by encouraging better coordinated local review of State and local applications for such loans or grants."

Ordered, That the Secretary request the concurrence of the House of Representatives therein.

SALE OF PART OF CHELI AIR FORCE STATION On motion by Mr. HUMPHREY, The Senate proceeded to consider the bill (S. 1928) to authorize the Administrator of General Services to sell a part of the former Cheli Air Force Station to Chanslor-Western Oil & Development Co., by negotiation, and for other purposes; and no amendment being made. Ordered, That it be engrossed and read a third time.

The said bill was read the third time.

Resolved, That it pass and that the title thereof be as aforesaid.

Ordered, That the Secretary request the concurrence of the House of Representatives therein.

On motion by Mr. KUCHEL to reconsider the vote on the passage of the bill, On motion by Mr. HUMPHREY, The motion to reconsider was laid on the table. CONVEYANCE OF PARCEL OF LAND TO LEXINGTON PARK VOLUNTEER FIRE DEPARTMENT, INC.

On motion by Mr. HUMPHREY, The Senate proceeded to consider the bill (H.R. 3368) to authorize the Administrator of General Services to convey by quitclaim deed a parcel of land to the Lexington Park Volunteer Fire Department, Inc.; and no amendment being made,

Ordered, That it pass to a third read

ing.

The said bill was read the third time. Resolved, That it pass.

Ordered, That the Secretary notify the House of Representatives thereof. TRANSPORTATION OF GOVERNMENT EMPLOYEES' PRIVATELY OWNED MOTOR VEHICLES TO ALASKA

On motion by Mr. HUMPHREY, The Senate proceeded to consider the bill (H.R. 1959) to authorize the trans

portation of privately owned motor vehicles of Government employees assigned to duty in Alaska, and for other purposes; and no amendment being made,

Ordered, That it pass to a third read

ing.

The said bill was read the third time. Resolved, That it pass.

Ordered, That the Secretary notify the House of Representatives thereof. AMENDMENT OF FEDERAL PROPERTY AND ADMINISTRATIVE SERVICES ACT OF 1949

On motion by Mr. HUMPHREY, The Senate proceeded to consider the bill (H.R. 4801) to amend subsection 506(d) of the Federal Property and Administrative Services Act of 1949, regarding certification of facts based upon transferred records; and no amendment being made,

Ordered, That it pass to a third read

ing.

The said bill was read the third time. Resolved, That it pass.

Ordered, That the Secretary notify the House of Representatives thereof.

AUTHORIZATION FOR GOVERNMENT AGENCIES TO PROVIDE CERTAIN SERVICES TO OFFICERS AND EMPLOYEES OF THE UNITED STATES

On motion by Mr. HUMPHREY, The Senate proceeded to consider the bill (S. 1833) to authorize Government agencies to provide quarters, household furniture and equipment, utilities, subsistence, and laundry service to civilian officers and employees of the United States, and for other purposes; and no amendment being made,

Ordered, That it be engrossed and read a third time.

The said bill was read the third time. Resolved, That it pass and that the title thereof be as aforesaid.

Ordered, That the Secretary request the concurrence of the House of Representatives therein.

ADJOURNMENT

On motion by Mr. DOUGLAS, at 5 o'clock and 46 minutes p.m.,

The Senate, under its order of today, adjourned until Monday next.

MONDAY, JANUARY 27, 1964

The PRESIDENT pro tempore called the Senate to order, and the Chaplain offered prayer.

THE JOURNAL

On motion by Mr. MANSFIELD, and by unanimous consent,

The reading of the Journal of the proceedings of Thursday, January 23, 1964, was dispensed with.

PRESIDENTIAL APPROVAL

A message from the President of the United States, by Mr. Miller, his secretary:

Mr. President: The President of the United States on January 23, 1964, approved and signed the joint resolution (S.J. Res. 136) providing for renaming the National Cultural Center as the John F. Kennedy Center for the Performing Arts, authorizing an appropriation therefor, and for other purposes. Ordered, That the Secretary notify the House of Representatives thereof. CALL OF CALENDAR DISPENSED WITH On motion by Mr. MANSFIELD, and by unanimous consent, Ordered, That the call of the calendar today be dispensed with.

EXECUTIVE SESSION

On motion by Mr. MANSFIELD, The Senate proceed to the consideration of executive business; and after the consideration of executive business,

LEGISLATIVE SESSION

The Senate resumed its legislative session.

REPORT ON U.S. AERONAUTICS AND SPACE ACTIVITIES

The PRESIDENT pro tempore laid before the Senate the following message from the President of the United States, which, with the accompanying report, was referred to the Committee on Aeronautical and Space Sciences:

To the Congress of the United States:

In accordance with section 206(b) of the National Aeronautics and Space Act of 1958, as amended, I transmit herewith a report for the calendar year 1963, on this Nation's aeronautics and space activities.

The year 1963 was a period of constructive development of our increasing space competence. It was also a period of searching evaluation of the national space program-an evaluation which resulted in broad acceptance of the policy of our attaining and maintaining space leadership, with due regard for our national security.

Our space program, in both its civilian and military aspects, is peaceful in

purpose and practice. Moreover, it combines such objective with a policy of international cooperation based upon a mutuality of participation and benefits as well as the wide dissemination of knowledge.

Space progress is essential if this Nation is to lead in technology and in the furthering of world peace. Such progress requires the use of substantial resources, which must be employed efficiently and effectively in order that we obtain the maximum benefits with a minimum of waste.

In summary form, the accompanying report depicts the contributions of the various departments and agencies of the Government to the national space program during 1963.

LYNDON B. JOHNSON. THE WHITE HOUSE, January 27, 1964.

HOUSING

The PRESIDENT pro tempore laid before the Senate the following message from the President of the United States which, with the accompanying papers, was referred to the Committee on Banking and Currency.

To the Congress of the United States:

Our Nation stands today at the threshold of the greatest period of growth in its history.

By 1970, we shall have to build at least 2 million new homes a year to keep up with the growth of our population. We will need many new classrooms, uncounted miles of new streets and utility lines, and an unprecedented volume of water and sewerage facilities. We will need stores and churches and libraries, distribution systems for goods, transportational systems for people, and communication systems for ideas.

Above all, we will need more land, new housing, and orderly community development. For most of this population growth will be concentrated in the fringe areas around existing metropolitan communities.

1. HOUSING

Fortunately, the old pressures on our housing supply arising from depression and war-caused shortages have largely been overcome. But new pressures will develop as the number of new families rises rapidly in the late sixties. And great numbers of our families have yet to secure the true goal of every parent: not merely housing but adequate housing.

Now is the time to direct the productive capacity of our homebuilding industry to the great needs of the neglected segments of our population. This is necessary in its own right and vital to the continued strength of the industry.

Satisfaction with the 1,600,000 new housing starts in 1963 cannot obscure the fact that too many minorities, too many families of low income, too many elderly, too many rural families, and too many military families have not shared in the housing improvement which those units represent.

Unless we act and act now, the promises of the national housing policy will remain empty slogans to large numbers in these groups.

A. Housing for minorities

Over a year ago, President Kennedy issued an Executive order designed to assure opportunities for equal access to federally assisted housing. Already a half million dwelling units are or soon will be subject to that order. This administration will continue and strengthen its efforts to translate the pledge of that order into meaningful practice. The program proposed in this message will broaden the range of housing choices open and realistically available to those whom discrimination has too long restricted.

B. Housing for low-income families For over a quarter of a century, the low-rent public housing program has been the primary source of additional decent housing for families of low income. Over 1,500 communities-350 of them since 1961-have recognized the need for supplementing private efforts by creating housing authorities to build and operate public housing with Federal assistance.

The 100,000 units of federally aided public housing authorized by the Housing Act of 1961 are now all committed. But still more communities and more families need such housing.

To continue this program for those who have no other effective opportunity for better housing. I recommend the authorization of 50,000 additional public housing units for each of the next 4 years.

Most of these units should continue to be new construction to provide a net expansion in the volume of housing available to low-income families. However. we have at this time a real opportunity to make low-rent housing available more quickly and at lower cost in many cities by acquiring units from the existing stock of private housing and rehabilitating them, where necessary, for the use of low-income families. I recommend amendments to the Public Housing Act to facilitate acquisition of existing housing units within the proposed 50,000 units per year.

In other cases, leasing of standard units by local public housing authorities for use in the low-rent program is a feasible and economic approach. I recommend, in addition, that the authority for expanding low-rent housing include authorization for local housing authorities to lease 40,000 housing units over the next 4 years.

We have much more to learn before the housing needs of our low-income population can be adequately met. The small demonstration program provided for this purpose in the Housing Act of 1961 has permitted a number of promising experiments to get underway. I recommend an additional $5 million be authorized to continue this program for at least 1 more year. During this period, attention can be given to special housing

needs, such as those of our physically handicapped, as well as to means of helping low-income persons obtain adequate housing.

C. Housing for the elderly

I believe it especially unfortunate that many of those who do not have or cannot secure decent housing are elderly. Special attention to the needs of this group at all income levels should continue.

The expansion and improvement of public housing programs that I am recommending will be used extensively for lower income elderly. Federal insurance of loans will continue to encourage the construction of specially designed housing for elderly with adequate incomes. However, the existing authority for funds to finance the program of low-interest direct Federal loans which serves the moderate income elderly will soon be exhausted. I recommend that the lowinterest direct Federal loan program for the elderly be extended and additional funds appropriated to permit loans of $100 million during the coming fiscal year.

At present, the successful program of moderate-income housing provided through loan insurance at below-market interest rates enacted in 1961 is limited to family tenants. In many cases, admission of single elderly persons to such housing would be highly desirable. I recommend that single elderly persons be made eligible for housing financed by federally insured below-market interest loans.

D Rural housing

The living conditions of our rural families-including the nearly one-third of our elderly who live on farms or in small towns-likewise deserve and need special consideration.

More than a million rural families still live in homes of such poor condition that they actually endanger the health and safety of the occupants.

Three million rural families live in homes that need major repairs.

A third of our rural homes do not have complete sanitary facilities.

Nearly two-thirds of rural homes are without adequate heating.

The rural housing programs of the Department of Agriculture, initiated in 1949 and strengthened in 1961 and 1962. have made a good start on meeting the problems represented by these statistics, but the 20,000 rural families helped last year represent only a small fraction of the job to be done. Primary reliance on direct Federal loans for this purpose is. however, neither necessary nor-in the volume required-realistic.

I recommend extension of the expiring authorization in title V of the Housing Act of 1949 to insure loans on rental housing for the rural elderly. Further, in order to accelerate the basic rural housing loan program. I urge that the Congress enact an insured rural housing loan program along the lines of that proposed by the administration in the first session of this Congress.

I further recommend early action on legislation along the lines of S. 981 to assist with the housing problems of domestic farm laborers-problems which are particularly acute for our 350,000 migrant farmworkers.

E. Military family housing .The military man, in keeping with his profession, expects to endure-and frequently does endure-personal hardships during his career. We do not have the right to expect the same from his family. While the Defense Department properly relies primarily upon the private community to supply the major portion of its needs for decent and economical housing, an annual construction program to house the families of military personnel is required in those communities where the severest chronic shortages exist. Accordingly, I have recommended in the military construction program authorizations and appropriations for 12,500 additional units for fiscal 1965 to meet the most critical needs.

F. Improvements in other housing programs

Apart from the housing needs of the special groups already discussed, the partnership between private industry and Government-exemplified by Federal guarantees and insurance of private housing credit-has made possible good housing and widespread homeownership for millions of our citizens.

I intend to encourage-through legislative proposals, where necessaryeven more effective cooperation between Government and industry for the joint benefit of homeowners, tenants, and the industry itself. To this end, I am proposing a number of modifications in the statutes governing our self-supporting mortgage insurance and marketing programs which will improve their efficiency and usefulness. Among these will be the following proposals:

(1) To provide relief in those isolated cases in which, despite the care exercised by builders and the Federal Housing Administration and the Veterans' Administration, substantial defects develop in new construction they have approved, I recommend that authority be provided for the FHA and VA to finance the correction of substantial deficiencies.

(2) To make certain that no legislative barriers exist to discourage or prevent mortgage lenders and the Federal Housing Administration from cooperating to help delinquent mortgagors in deserving cases, I recommend that FHA's claim and forbearance authorities be amended to encourage the temporary withholding of foreclosures against homeowners who default on their mortgages due to circumstances beyond their control.

(3) To expand our concerted effort to substitute private credit for Federal loans, I recommend provision of legislative authority for the pooling of mortgages held by the Federal National Mortgage Association and the Administrator of Veterans Affairs, and the sale of participations in such pools.

II. URBAN RENEWAL

The Federal program of urban renewal is today our principal instrument for restoring the hope and renewing the vitality of older cities and wornout neighborhoods.

The Federal assistance which provides local leaders and governments with incentives and the tools for revitalizing their communities has proven its worth in eliminating housing blight; in contributing to restoration of the economic base of our communities; and in helping reshape our central areas into effective nerve centers for our cities.

The Housing Act of 1961 doubled the previous urban renewal authorization to a total of $4 billion. By the middle of this year, all of that increase will have been committed. I recommend that an additional $1.4 billion of urban renewal funds be approved for a 2-year period.

Despite existing programs assisting families and persons displaced by urban renewal projects, the human cost of relocation remains a serious and difficult problem.

The vast majority of those displaced by urban renewal and public housing have relocated in better and standard housing, but some have not. For most, the cost of improved housing has been an unsought burden. For some, the inconvenience of displacement has meant only another slum dwelling and the likelihood of repeating this experience.

To assist further those families and persons least able to bear the burden of displacement, I recommend:

A. That an additional annual subsidy of up to $120 per unit be available for local public housing authorities, where needed to provide access to such housing for displacees with extremely low incomes.

B. That low- and moderate-income families displaced by urban renewal receive 2-year supplemental relocation payments equal to the difference between rentals on standard housing in their communities and 20 percent of their gross incomes.

C. That low-income single persons displaced by urban renewal or other public action be made eligible for public housing.

Similarly, small businessmen-especially those in leased premises often incur economic loss and hardship as a result of displacement by urban renewal or public housing which is not offset by current compensation practices and moving expense reimbursements. To provide more adequately for these firms, I recommend authority for a separation payment of up to $2,500 for small establishments.

At the time of the 1960 census, 7 million nonfarm dwellings were found to be deteriorating, including 22 million occupied by their owners. Rehabilitation and preservation of existing housing wherever possible is a key element in the urban renewal process today. Elderly homeowners in urban renewal areas with low, fixed incomes are at a particular disadvantage in trying to meet the increased housing payments required by

rehabilitation. To assist them, I recommend a program of Federal insurance and purchase of low-interest loans, with a deferral of amortization of principal, for home rehabilitation by elderly homeowners in urban renewal programs.

III. COMMUNITY DEVELOPMENT

The great expansion of our urban areas over the last two decades has too frequently been carried out in a sprawling space-consuming, unplanned and uneconomic way. All levels of government are spending vast sums to accommodate this tremendous urban growth with highways, sewer and water facilities, schools, hospitals and other community facilities. Rural communities and small towns face similar pressures. If the taxpayer's dollar is to be wisely used and our communities are to be desirable places in which to live, we must assure ourselves that future growth takes place in a more orderly fashion.

I recommend that the urban planning assistance program and the open space program administered by the Housing and Home Finance Agency be extended.

Although the planning requirements of these and various other Federal programs such as the Federal-aid highway program-also emphasize orderly growth and development, much more can and should be done.

The pioneering efforts of progressive and imaginative private developers in planning totally new and complete communities indicate some of the exciting possibilities for orderly growth. In the tradition of the long-established partnership between private industry and Government in housing and community development, the Federal Government should encourage and facilitate these new and desirable approaches.

Such a partnership can help achieve the orderly accommodation of a significant part of our forthcoming urban growth by means of entirely new communities, complete with all public services, all the industry and commerce needed to provide jobs, and sufficient housing and cultural and recreational facilities for moderate- and low-income families as well as for the well-to-do. To realize such new community development, and to encourage the participation of private initiative on the greatest possible scale, I propose a program of grants and loans to States and local governments for the planning and provision of necessary public facilities and of loan insurance for private developers constructing such facilities.

Many existing communities face problems of expansion as well. Even though they may foresee enormous development ahead, they often lack the resources to build sewer and water systems and other facilities with adequate growth capacity. Building in such capacity in advance could result in tremendous savings and prevent costly duplication or premature replacement of inadequate facilities. I, therefore, recommend a program of public facility loans with deferred amortization to enable communities to plan and build ahead of growth.