Evening star., 1961-03-01


make. We have extended an
invitation to the Chancellor.
German Chancellor Adenauer,
to come to the United States,
and he has accepted our in
vitation, and we are delighted
he Is going to be here in
Washington on April IL and
April Is. / am looking forward
very much to meeting him. and
to having an exchange of views.
Secondly. ] am writing to
the Congress, to Congressman
Vinson and Senator Russell. a
letter recommending that they
consider legislation to restore
former President Eisenhower to
his military rank of General
Of the Army. President Eisen-
hower's outstanding military
record and his long public serv-
ice to our country in war and
peace, I think. with that long
experience it would be an ap-
propriate act by the Congress
if they should restore him to
his former military rank.
Third, 1t Is with some salts
faction that I am able to an
nounce that the week ending
today is the first week since
last July that there has been
no net outflow of gold from
this country to foreign coun-
tries. While we realize that
this complete halt is only tenn
porary, I believe it does signify
that confidence in the dollar
throughout the world is being
restored.
Urges Interest Cut
Fourth. our objective now is
to help make effective at. the
retail level the influence of the
Federal Reserve on the whole
sale supply Of money. We in
tend first to facilitate the flow
OF mortgage funds into the
hands of prospective home buy
ers. 1 have requested Mr..
Joseph McMurray. the chair
man-designate of the Home
Loan Bank Board, to meet with
leaderS in the savings and loan
field. and urge them to reduce
mortgage rates so as to expand
the flow Of money into mort
cages. His first such mission
win be to California, where
mortgage rates have been
among the highest. We trust
that his efforts here and
around the country will mean
real gains for homeowners, the
housing industry, and the econ
ony.
And lastly, I have today
signed an executive order pro-
viding for establishment of a
Peace Corps on a temporary
pilot basis. I am also sending
to Congress a message pro-
posing authorization of q per-
manent Peace Corps. This
corps will be a pool Of trained
men and women sent overseas
by the United States Govern
ment or through private insti-
tutions and organizations, to
help foreign countries meet
their urgent needs of skilled
manpower. 1t is our hope to
have between 500 and 1000
people in the field by the end
OF this year. We will send
Americans abroad who are
qualified to do a job. We will
send those abroad who are
committed to the concept
which motivates the Peace
Corps. 1t will not be easy.
None Of the men and women
will be paid a salary. They will
live at the same level as the
citizens Of the country which
they are sent to, doing the
same work, and eating the same
food and speaking the same
language. We are going to
put particular emphasis on
those men and women who
have SkillS in teaching, agri-
culture and in health.
Comments on Defense
I am hopeful it will be a
source Of satisfaction to Amer
leans and a contribution to
world peace.
@. Mr.. President2
A. Mr.. Spivak?
Q. Mr.. President, you said
In your state-of-the- Union
message that you had ordered
a reappraisal of our entire de-
Tense strategy and that you
would ask the Secretary Of De-
fense to give you his con-
clusions by the end Of Febru-
ary.
Can you tell us what any
OF these conclusions are and
whether they involve any IN
creased reliance on conven-
tional as opposed to nuclear
force?
A. The Secretary of De-
fense has passed to me his
conclusions, and at the end
Of. I would say, about two
weeks I will have finished our
study Of it, my study of it,
with him. and will then senc
our recommendations to the
Congress.
Secondly. in answer to your
question, part Of his recon-
mendation is to strengthen
conventional forces.
@. Mr.. President, some econ
omists have voiced the opin-
ion that perhaps the recession
has reached a rock bottom and
that the economy Is on an
upturn. Would you give US
your views about that, and
also answer some suggestions
In your political opposition
that perhaps some Of your
anti-recession legislation may
not be needed because of this
expected upturn?
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