STATE OF THE UNION

For more than four months, Dwight Eisenhower and his team labored over the State of the Union message. The job began last September, when the President sent out a call to heads of 20 major departments and agencies of the Federal Government. From the mountain of data that poured in, the White House staff distilled a 15,000-word rough draft. Then, line by line, President Eisenhower knifed through it with his sharp yellow pencil, suggesting, rewriting, calling for more new facts. The process went on at the White House, then in the little office in Georgia above the pro shop at the Augusta National Golf Club. In all, the message went through more than 20 formal drafts. Last week, only four hours after the last careful change had been sent through, President Eisenhower, message in hand, strode briskly into the House of Representatives.

It was a message of tremendous scope, ranging the whole field of the Federal Government's problems and responsibilities from the atom to the family's medical bill, asking Congress for legislation on more than 30 points and promising at least eight more detailed messages. It was a message that proudly enumerated substantial accomplishments and confidently outlined aims for the future.

The past year, said the President, brought "much for which we may be thankful. First of all, we are deeply grateful that our sons no longer die on the distant mountains of Korea . . . The nation has just completed the most prosperous year in its history. The damaging effect of inflation ... has been brought under control. The cost of our Government has been reduced, and its work proceeds with some 183,000 fewer employees; thus the discouraging trend of modern governments toward their own limitless expansion has been in our case reversed. The cost of armaments becomes less oppressive as we near our defense goals; yet we are militarily stronger every day."

The President discussed strategy with a frankness and cogency never before equaled in a State of the Union message. "Communist aggression, halted in Korea, continues to meet in Indo-China the vigorous resistance of France and the Associated States, assisted by timely aid from our country. In West Germany, in Iran and in other areas of the world, heartening political victories have been won by the forces of stability and freedom. Slowly but surely, the free world gathers strength.

"Meanwhile, from behind the Iron Curtain, there are signs that tyranny is in trouble and reminders that its structure is as brittle as its surface is hard. There has been, in fact, a great strategic change in the world during the past year. That precious intangible, the initiative, is becoming ours. Our policy, not limited to mere reaction against crises provoked by others, is free to develop along lines of our choice . . ."

Carefully departmentalizing his subjects, the President discussed the status of the U.S. and his recommendations field by field, point by point:

Broad Foreign Policy. The keystone of U.S. foreign policy is unity and strength in the free world's struggle against the Communist conspiracy. "More closely than ever before." said the President, "American freedom is interlocked with the freedom of other people." He could soon submit to Congress the mutual-security pact with the Republic of Korea, where "we are prepared to meet any renewal of armed aggression." The U.S. will continue to maintain bases on Okinawa, will continue to aid the non-Communist forces in Indo-China. Applause welled up from the Congress when he announced a clear, firm policy for an area often surrounded by doubt under the previous Administration: "We shall continue military and economic aid to the Nationalist government of China."

In Western Europe, U.S. policy rests firmly on the North Atlantic Treaty and on the formation of the European Defense Community. In the world as a whole, "the United Nations, admittedly still in a state of evolution, is the only real world forum . . . for international presentation and rebuttal," and "deserves our continued and firm support." (Minimum applause.; The U.S. will continue military and technical assistance abroad, but will reduce economic aid, except in a few critical areas, e.g., Korea. Said the President: "The fact that we can now reduce our foreign economic assistance in many areas is gratifying evidence that its objectives are being achieved."

Trade, Not Aid. A step that can benefit "our taxpayers and our allies alike is the creation of a healthier and free system of trade and payments within the free world--a system in which our allies can earn their own way and our own economy can continue to flourish. The free world can no longer afford . . . arbitrary restraints on trade."

The Atom. Firmness and a tone of optimism characterized the President's pronouncement: "As we maintain our military strength during the coming year and draw closer the bonds with our allies, we shall be in an improved position to discuss outstanding issues with the Soviet Union. Indeed, we shall be glad to do so wherever there is a reasonable prospect of constructive results. In this spirit, the atomic-energy proposals of the U.S. were recently presented to the United Nations General Assembly. A truly constructive Soviet reaction will make possible a new start toward an era of peace, and away from the fatal road toward atomic war."

National Defense. President Eisenhower put in a sharper focus than ever before the nature of the new defense program, built around increased atomic power and reduced manpower. For a policy which "will enable us to negotiate from a position of strength as we hold our course toward a peaceful world," he proposed: 1) increase strength in the air, 2) share with our allies certain knowledge of the tactical use of nuclear weapons, 3) improve manpower and reserve policies to regain "maximum mobility of action," 4) increase benefits to keep well-trained, long-term career men in the service, 5) improve our continental defenses. Later special messages will spell out the details of the President's recommendations. As part of the continental defense system, the President urged that the U.S. join with Canada in the construction of the much-debated St. Lawrence Seaway.

Internal Security. Since the Eisenhower Administration took office, it has separated more than 2,200 employees from the payroll as security risks. This was far larger (by 744) than the last figure reported. With the comment that Communist activities in the U.S. are "akin to treason," the President made a recommendation that brought the loudest roar of approval from Congress: "I recommend that Congress enact legislation to provide that a citizen of the United States who is convicted in the courts of hereafter conspiring to advocate the overthrow of this Government by force or violence be treated as having, by such act, renounced his allegiance to the United States and forfeited his United States citizenship."

While this proposal seemed to win wide public approval, second-thought criticisms in Washington took two main courses. One view was that it raised serious questions of principle (Should the U.S. set this kind of precedent for establishing classes of political outcasts?). Another view was that the proposal does not go much beyond present U.S. statutes. A provision of the Nationality Act of 1940, later incorporated in the McCarran Act (but never tested in the courts), provides that any citizen, "by birth or naturalization, shall lose his nationality by ... attempting by force to overthrow . . . the United States." Thus the difference between what is on the books and what is proposed appears to be only the difference between "attempting" and "conspiring to advocate."

The Economy. The President left no doubt that his Administration is determined to prevent a depression. He said that his recommendations for congressional action will include: flexible credit and debt-management policies; tax measures to stimulate consumer and business spending; suitable lending, guaranteeing, insuring and grant-in-aid activities; strengthened old-age and unemployment-insurance measures; improved agricultural programs; public-works plans laid well in advance; enlarged opportunities for international trade and investment.

The Budget. In a budget designed to "foster individual initiative and economic growth," proposed expenditures will be $5 billion less than during the current year, making a total cut of $12 billion in the annual spending level of the Federal Government since the Eisenhower Administration took office.

National Debt. Because of the great backlog of Government commitments, the President renewed his request that the national-debt limit be raised from $275 billion to $290 billion. No applause came from the Congress. Many members glanced toward Virginia's Senator Harry Byrd, who opposes a debt-limit increase, and a nervous titter rippled across the chamber.

Taxes. Reductions in personal income taxes and expiration of the excess-profits tax were made possible "only because of the substantial reductions ... in governmental expenditures." Further tax cuts previously scheduled for this year, e.g., in the regular corporation-tax rate and the excise taxes on liquor and gasoline, should be postponed. When further cuts are made in government expenditures, there should be further cuts in taxes, said Eisenhower with a smile, "so that taxpayers may spend their own money in their own way."

Agriculture. When he came to the agriculture section, Dwight Eisenhower showed--by facial expression and tone of voice--that he regarded this as one of the most difficult problems his Administration faces. But he forthrightly proposed a flexible support plan (see next page).

Post Office. To enable the mail to pay its own way, the President recommended approval of the bill, now pending in the House, to raise postal rates, including an increase in the regular intercity letter rate from 3 to 4-c-.

Labor & Welfare. While taking the position that the Taft-Hartley Act is "basically sound," the President saw need for amendments. This week he sent Congress specific recommendations (see next page). In the welfare field, he urged extension of unemployment insurance to 6.5 million U.S. citizens not now covered (including civilian federal workers), and broadening of old-age and survivors' insurance to cover 10 million now excluded. In the health-insurance field, the President proposed "a limited Government reinsurance program" which "would permit the private and nonprofit insurance companies to offer broader protection to "more of the many families which want and should have it." Vigorous applause greeted his statement that "I am flatly opposed to the socialization of medicine."

Housing. A new housing program which will include lower down payments and longer terms, so that more low-income families can own their own houses, will be detailed in a later special message. Said Eisenhower, who was born in a house near the railroad tracks in Denison, Texas: "If the individual, the community, the state and Federal Governments will alike apply themselves to the purpose, every American family can have a decent home." Then Ike added: "And no good American family should honestly have to be ashamed of its home."

Suffrage. Under this heading, the President offered three key proposals: 1) residents of the District of Columbia should get national suffrage and local self-government, 2) Hawaii should be made the 49th state, 3) the voting age should be lowered by constitutional action from 21 to 18.

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