THE WHITE HOUSE

WASHINGTON

July 22, 1974

Dear Henry:

My departure from the White House being imminent, I want you to know how much I have enjoyed working with you on the Nation's business. Hopefully I will find a somewhat more placid pastime for the future, but whatever it might be, it won't be as satisfying as the past five and one half years have been. Much of that satisfaction has come from the people like you with whom I have shared the effort.

In the current atmosphere and given our current problems, there is a tendency to overlook the successes we have had. But any fair weighing of the record to date, both at home and abroad, makes it clear that successes predominate. Needless to say, I cherish my part since 1969 in creating that record. And I know full well that it could only have been written as the joint enterprise of all of us.

With many thanks for your friendship, and hoping the future will bring us together again,

Peter M. Flanigan
Assistant to the President

The Honorable Henry A. Kissinger
Secretary of State
Department of State
Washington, D. C.

Washington, D. C.
NASA,
Administrator,
Mr. James C. Fletcher,

Peraonul Aasatant
Suzanne 2. McFarlane

Sincerely,

know he will have many occasions to study it.
one else! You were so kind to send it to him and I
have even seen. The more one looks at it, the more
truly one of the most interesting makes that any of us
I am sure he will want to have it framed, for it is
aspectacular NASA satellite map of the United States.
know how very much he appreciates receiving the
Secretary Klaasen has asked me to let you

Dear Mr. Fletcher:

September 24, 1976

National Aeronautics and
Space Administration

Washington, D.C.
20546

Office of the Administrator

AUG 31 1976

Honorable Henry A. Kissinger
Secretary of State
Washington, DC 20520

Dear Henry:

I thought you might like to have this picture of the 48
conterminous states as seen by our Landsat satellites.

This picture is, in fact, a mosaic of 569 individual NASA
satellite images prepared by the National Geographic Society
for its July 1976 Bicentennial issue. I have enclosed a
reprint from this issue which describes the history of the
mosaic and provides some detail about the satellite images
and their many uses. To illustrate the utility of these
Landsat images, I have also included a larger scale view of
the New Orleans area which clearly shows rural, urban and
coastal features of considerable interest to policy makers,
planners, and resource managers.

We in NASA are very pleased with this mosaic, not just
because it was done for the Bicentennial of this great
nation of ours, but because it illustrates an emerging
capability using satellites to monitor our environment and
better manage the resources of this ever shrinking planet.

3 Enclosures

ANDROR FOLDES

CH-8704 Herrliberg/ZH

September 8th, 1976

Dear Mr. Secretary of State,

I take the liberty to write to Your Excellency to invite you
to my forthcoming Washington appearances. On October 19th and
20th I shall appear as featured soloist with the National Symphony
at Kennedy Centre and nothing would give me greater pleasure if
Mr. Secretary could attend one of these two performances.

I am fully aware of Your Excellency's more than crowded schedule -
yet, if by any good stroke of luck it might be possible for
Mr. Secretary to be present at one of these nights at my Washington
appearance, I would be most happy.

Thanking you in advance for your kind answer,

I am,

respectfully yours,

P.S.

May I mention that in March of this year I was invited for dinner
and subsequent performance at H.M. the Queen of Denmark. In May
I was guest of President Scheel for a similar occasion.

Washington, D. C.
Kennedy Centre,
C/o The National Symphony,
Mr. Andor Foldes,

Perennial Vaeiatant
Suzanne S. McFarlane

Sincerely,

would like to attend if he can.
pringing the concerts to his attention', and I know that he
know. The Secretary appreciates your thoughtfulness in
he wishes to attend the concert, we shall certainly let you
where', but if the evening of the 20th should be free and
October 19th because of a previous commitment else-
He will not be able to be at Kennedy Center on

on October 19th or 20th.
National Symphony at which you will be featured soloist
for your very kind invitation to attend the concerts of the
Secretary Klaasinger has asked me to thank you

Dear Mr. Foldes:

October 6, 1976

MBER 25, 1974

KL7

# On Day Care Given
# to be Given
# by U.S. Court

GEWELL VAUGHAN and POLLY KLINE

A hearing order was issued yesterday in Manhattan Federal Court, from carrying out new eligibility restrictions that would children from day care programs on Friday.

more than 100 at 292 Court St., Brooklyn.

The 59th St. center, because it has such a large proportion of parents who are middle-income working people, will lose 60% of its youngsters, Mrs. Sansone said.

The new policy raises the maximum income a family may have to qualify for day care on a sliding scale. For example, a family of four with $8,500 net income is no longer eligible, the ceiling having been raised to $9,400.

### Affects 30 to 40%

The court action sought an injunction and a judgment declaring the state's higher eligibility and fee schedules illegal. Increases in fees will affect 30 to 40% of the parents still eligible, said the city Agency for Child Development which oversees the subsidized centers and additional

family day care programs for a total of 43,000 children.

Named in the suit are Bettl S. Whaley, the city agency commissioner; James R. Dumpson, city Human Resources administrator, and State Social Services Commissioner Abe Lavine.

### Charge Violations

The individual plaintiffs, two mothers from Manhattan and one each from Brooklyn and the Bronx, charged that day care services are being terminated for their children in violation of the Constitution, the Social Security Act and regulations of the federal Health, Education and Welfare Department.

The other plaintiffs are the Low Memorial and Nevins Day Care Centers and the Park Slope Child Care Collective, all Brooklyn, and the Church of All Nations Day Care Center, Manhattan.

Years State Ultimatum

"With all thy getting get understanding"

Fact and Comment

PARDON FORD'S QUAGMIRE

"I don't think the public would stand for it," said Gerald Ford, when asked about the possibilities of a pardon for Nixon during the Congressional hearings on Ford's nomination as Vice President.

He was so right.

He should have listened to himself.

Has he irreparably blown it? Is the enormous goodwill generated during his first 30 days in the White House totally beyond recall? Are we really back to the bitter Nixonian Watergate era?

At the moment, nearly.

But not for long.

Ford's incredibly bad timing is not the action of a bad man trying to cover an evil. The President is and remains a decent man who did a dumb thing, attempting to cauterize a cancer, but instead bringing on a massive hemorrhage.

That deed's done, though, and it can't be recalled.

We've no choice but to get on with tackling the threat of deep recession, unacceptably high unemployment and the curbing of inflation—all at the same time.

IF YOU DON'T HAVE TO SELL YOUR STOCKS

don't.

COMMISSION RATES ARE UPSIDE DOWN

A vital ingredient for liquidity in the stock market is the small investor. For a lot of unarguably logical reasons, he is on the sidelines. The market today is mostly big institutional block transactions. Not necessarily the least among the reasons for the odd-lot and 100-share individual staying out is the high cost of buying or selling.

Maybe the whole business of brokerage commissions is structured upside down. Maybe the cost of small transactions should be halved, and the cost of blocks upped.

The little guy is essential for liquidity, essential for a meaningful stock market. A lower commission rate would help his return.

And, after all, a firm's ability to handle big block transactions is of enormous value. Never mind that a lot of that knowhow cannot be given a tangible value—it's there and should be charged for even if the literal paperwork is small in relation to the potential profit.

For the institutions who must get in and out in large stock hunks, having the participation of tens of thousands of individual buyers and sellers makes for market viability. Their chintzing on rates is proving far more costly to the market mechanism than the relatively little "savings" they thus extract.

As for those who say their lawyers advise that they must take the cheapest rate or be suable for fiduciary negligence—they must have legal counsels with ambulance-chasing mentalities. Fiduciary irresponsibility lies with those who are wrecking the mechanism for stock market viability, stock market liquidity.

Unless they've got a Better Way—not so far unveiled—to handle the exchange of securities, the institutions had better start helping to support the one they've got. Or they'll pay far higher prices when the present system is dead and gone.

FORBES, OCTOBER 1, 1974

17

# There's a better way to raise wages than a minimum-wage law

*Impatience* is an American fault — we try to do things too fast, too easily. Increasing the minimum wage (by law) decreases the number of jobs (by economics).

Every wage is a trade — my production for your wage dollars. If I cannot produce enough goods in one hour for you to sell for more than $2.00 (January 1, to be $2.10) you simply *can not* hire me. No law can force you to, because you would soon be out of business, providing *no* jobs.

But there *is* a way to do it (and we all want it done). Train me to produce enough to be worth $2.00, and provide me with modern machines that make it possible for me to produce that much.

It may take time, but — let's be honest — it is *the only way it can be done*.

Warner & Swasey's Manchester Division offers metal-working plants lower cost per cut in cutoff, grooving and trepanning. A face grooving operation, using a Manchester carbide grooving tool, is shown here.

THE WARNER & SWASEY COMPANY
*Executive Offices*
11000 Cedar Avenue
Cleveland, Ohio 44106

PRODUCTIVITY EQUIPMENT AND SYSTEMS IN MACHINE TOOLS, TEXTILE AND CONSTRUCTION MACHINERY

Fact and Comment

COAL STRIKE NOT ALL BAD

Maybe, if you think about it, we shouldn't get in such an uproar over the coal strike.

*Something* has to awaken all of us to the fact that we are going broke using oil in unaffordable quantities.

The oil-producing countries are too smart to put a

freeze on again so soon. After all, in a matter of 12 or 24 months they'll have enough money to own most of the world's business, anyway.

If the Arabs are too smart to bring us up sharp again soon, the coal miners may have done the American people that favor.

ONE ANSWER TO THE OIL PROBLEM IS SO OBVIOUS

and so simple—

Appreciably reduce consumption.

France did it one way, cutting arbitrarily by 10% the amount that country will pay for oil imports.

Britain's done it another way, tripling its already high tax on gasoline.

We'd better promptly slap a sizable tax on gasoline— and not any weasely-measly 10 cents a gallon but at least 50 cents a gallon. To make it equitable, everyone could get an income tax deduction or a cash rebate on 250 gallons or so annually.

Such a price jump would appreciably cut gasoline waste; encourage the manufacture of lighter, less fuel-consumptive autos without Washington mandating it;

would do much to replace the present hemorrhaging in our trade balance. By thus keeping up the price of gas, no matter what the Arabs do to the price of oil, the development of our coal reserves and exploration into solar, geothermal and other energy sources would be accelerated.

It's about time President Ford woke up to the fact that the vast majority of the American people realize the need for this step and are willing to accept it. A recent Sindlinger poll shows that 65% of the people would be willing to pay as much as a dollar a gallon for gasoline if that's what is required to make the U.S. independent of Arab oil.

Sometimes Presidents are supposed to be ahead of, not behind, the people of the nation they head.

CURING THE SUGAR SHORTAGE

and bringing down the present ridiculous prices should be nowhere near as tough as accomplishing the same with oil.

We're all being rapidly price-forced into using less.

As a result we will all be far healthier and a bit wealthier.

KISSINGER DOES MORE FOR HIS COUNTRY

in one trip than most any or all of his carping critics contribute to the country's weal in a lifetime. In addition to his pizzazz and perception, it's his Svengaliability that most intrigues the Arabs and reassures the Israelis that they won't be done in by naïveté.

FORBES, DECEMBER 1, 1974

9

["Company Index", "<table><tbody><tr><td>AMP</td><td>98</td></tr><tr><td>ASA Ltd</td><td>112</td></tr><tr><td>Allied Stores</td><td>108</td></tr><tr><td>Aluminum Corp of America</td><td>110</td></tr><tr><td>American Airlines</td><td>21</td></tr><tr><td>ABC</td><td>48</td></tr><tr><td>American Export</td><td>127</td></tr><tr><td>American Home Products</td><td>116</td></tr><tr><td>American Int'l Group</td><td>36</td></tr><tr><td>AT&T</td><td>88</td></tr><tr><td>Anglo American Gold</td><td>112</td></tr><tr><td>Avon Products</td><td>108</td></tr><tr><td>Baker Inds</td><td>66</td></tr><tr><td>Bangor Punta</td><td>127</td></tr><tr><td>Boeing</td><td>24</td></tr><tr><td>Braniff Int'l</td><td>21</td></tr><tr><td>Brittania Sportswear</td><td>98</td></tr><tr><td>Budd Co</td><td>24</td></tr><tr><td>Burndy</td><td>98</td></tr><tr><td>CNA Financial</td><td>36</td></tr><tr><td>Caterpillar Tractor</td><td>112</td></tr><tr><td>Celanese</td><td>112</td></tr><tr><td>Central Telephone & Utilities</td><td>88</td></tr><tr><td>Certain-teed Products</td><td>112</td></tr><tr><td>Continental Oil</td><td>108, 110</td></tr><tr><td>Crown Zellerbach</td><td>112</td></tr><tr><td>Delta Air Lines</td><td>21</td></tr><tr><td>Thomas E. Dewey Jr. & Co</td><td>127</td></tr><tr><td>Dome Mines</td><td>112</td></tr><tr><td>Eastern Air Lines</td><td>21</td></tr><tr><td>Eckerd Corp</td><td>100</td></tr><tr><td>Exxon</td><td>66, 70, 108, 110</td></tr><tr><td>FMC</td><td>21</td></tr><tr><td>First Boston</td><td>127</td></tr><tr><td>First Mississippi Corp</td><td>96</td></tr><tr><td>Ford Motor</td><td>108</td></tr><tr><td>Franco-Beige</td><td>24</td></tr><tr><td>Freeport Minerals</td><td>108</td></tr><tr><td>Gardner-Denver</td><td>112</td></tr><tr><td>General Electric</td><td>24, 93</td></tr><tr><td>General Motors</td><td>108</td></tr><tr><td>General Steel</td><td>24</td></tr><tr><td>B.F. Goodrich</td><td>120</td></tr><tr><td>GEICO</td><td>27, 36</td></tr><tr><td>Great Southern Corp</td><td>108</td></tr><tr><td>Great Western Financial</td><td>112</td></tr><tr><td>Greyhound</td><td>66</td></tr><tr><td>Guardian Mutual Fund</td><td>116</td></tr><tr><td>Gulf Oil</td><td>108</td></tr><tr><td>Halliburton</td><td>108</td></tr><tr><td>Hambro's Bank</td><td>16</td></tr><tr><td>Harris Corp</td><td>86</td></tr><tr><td>Imperial Corp</td><td>106</td></tr><tr><td>IBM</td><td>66, 108, 127</td></tr><tr><td>International Couriers</td><td>66</td></tr><tr><td>International Minerals</td><td>108</td></tr><tr><td>International Paper</td><td>112</td></tr><tr><td>Investors Diversified Services</td><td>132</td></tr><tr><td>Johnson & Johnson</td><td>108</td></tr><tr><td>Kaiser Aluminum</td><td>110</td></tr><tr><td>Kerr-McGee</td><td>108</td></tr><tr><td>Ketchikan Pulp</td><td>21</td></tr><tr><td>Kuhn Loeb</td><td>127</td></tr><tr><td>Leaseway</td><td>54</td></tr><tr><td>Loews Corp</td><td>36</td></tr><tr><td>Loomis Corp</td><td>66</td></tr><tr><td>Louisiana-Pacific</td><td>21</td></tr><tr><td>Lykes-Youngstown</td><td>120</td></tr><tr><td>McDonald's</td><td>108</td></tr><tr><td>Marathon Oil</td><td>110</td></tr><tr><td>Masonite</td><td>110</td></tr><tr><td>Mid-Texas Communications Sys</td><td>88</td></tr><tr><td>Minnesota Mining</td><td>10, 66</td></tr><tr><td>Mobil Oil</td><td>108</td></tr><tr><td>Nabisco</td><td>108</td></tr><tr><td>National Gypsum</td><td>110</td></tr><tr><td>Natural Gas Pipeline</td><td>56</td></tr><tr><td>Neuberger & Berman</td><td>116</td></tr><tr><td>Northern Illinois Gas</td><td>56</td></tr><tr><td>Occidental Petroleum</td><td>70</td></tr><tr><td>Oklahoma Natural Gas</td><td>56</td></tr><tr><td>Owens-Illinois</td><td>112</td></tr><tr><td>Pan Am World Airways</td><td>21</td></tr><tr><td>Penn Square Mutual Fund</td><td>116</td></tr><tr><td>Pfizer</td><td>120</td></tr><tr><td>Philips Lamp (Holland)</td><td>8</td></tr><tr><td>Pitney-Bowes</td><td>66</td></tr><tr><td>Polaroid</td><td>112</td></tr><tr><td>President Steyn</td><td>112</td></tr><tr><td>Pullman</td><td>24</td></tr><tr><td>Purolator</td><td>66</td></tr><tr><td>Reserve Oil & Minerals</td><td>108</td></tr><tr><td>Reynolds Metals</td><td>110</td></tr><tr><td>Robertshaw Construction</td><td>108</td></tr><tr><td>Rockwood National</td><td>127</td></tr><tr><td>Rohr Corp</td><td>24</td></tr><tr><td>Royal Dutch</td><td>108</td></tr><tr><td>Ryder System</td><td>54</td></tr><tr><td>St. Paul Cos</td><td>35</td></tr><tr><td>Santa Fe Inds</td><td>108</td></tr><tr><td>Seaboard Coast Line</td><td>108</td></tr><tr><td>Singer Co</td><td>87</td></tr><tr><td>Standard Oil (Calif.) 70, 108, 110</td><td></td></tr><tr><td>Texaco</td><td>70, 108</td></tr><tr><td>United Financial</td><td>106</td></tr><tr><td>U.S. Fidelity & Guaranty</td><td>36</td></tr><tr><td>U.S. Gypsum</td><td>110</td></tr><tr><td>U.S. Steel</td><td>112</td></tr><tr><td>Vaal Reefs</td><td>112</td></tr><tr><td>Varian Associates</td><td>120</td></tr><tr><td>Walgreen</td><td>100</td></tr><tr><td>West Driefontein</td><td>112</td></tr><tr><td>Western Air Lines</td><td>21</td></tr><tr><td>Westinghouse</td><td>93</td></tr><tr><td>Xerox</td><td>66, 108, 112</td></tr></tbody></table>", "FORBES CONTENTS", "April 15, 1976, Volume 117, Number 8", "Features", "19 The Monongahela Decision", "The courts could cut off a quarter of the U.S.' timber output.", "21 Delta Air Lines", "It now seems to be going the way of the rest of the industry.", "22 Corporate Liquidity", "So where did American business suddenly find all that cash?", "24 Mass Transit", "It's a risky business, but General Electric is still staying with it.", "27 The GEICO Affair", "A collapse that threatened to ruin one of America's richest men.", "30 Fire-& Casualty Companies", "They bought at the top and sold at the bottom—even as you and I.", "40 Annual Meetings", "Stockholder circus, rite of spring, or proof of common humanity?", "47 The Montreal Olympics", "An unnerving preview of Mayor Jean Drapeau's billion-dollar happening.", "54 Ryder System", "How the U.S.' biggest truck leaser drove to the brink—and back.", "56 Northern Illinois Gas", "There's more than one way to make money in the gas business.", "59 Argentina", "Can it afford the political cost of making its economy viable?", "66 The Private Postmen", "As the federal system falters, the private couriers start to boom.", "69 How OPEC Came To Power", "Don't blame the oil companies. They aren't the only villains around.", "86 Harris Corp.", "It acquired 20th-century technology, but not quite quickly enough.", "88 Central Telephone", "You don't have to be AT&T to win out in the telephone business.", "93 Nuclear Exports", "A noisy minority is helping to cost the U.S. its valuable lead.", "Faces Behind The Figures", "96 Mike Mansfield\n(U.S. Senator)", "98 Walter Schoenfeld\n(Brittania Sportswear)", "96 J. Kelley Williams\n(First Mississippi Corp.)", "100 Dick Francis\n(Author)", "98 Richard C. Farley\n(Burndy Corp.)", "100 Jack Eckerd\n(General Services Admin.)", "Money And Investments", "105 The Economy\n—The Forbes Index", "The Columnists", "112 The Street Walker\nThree investment perspectives.", "106 Ben Weberman", "116 The Funds\nTwo ways to skin a cat.", "108 Lucien Hooper", "118 Statistical Spotlight\nThe Big Board's $5 stocks.", "110 Myron Simons", "127 The Money Men\nHow Tom Dewey Jr. holds hands.", "120 Sidney Lurie", "125 Stanley W. Angrist", "Regular Departments", "4 Side Lines", "8 Trends & Tangents", "17 Other Comments", "6 Readers Say", "15 Fact & Comment", "134 Thoughts", "PHOTO AND ART CREDITS: Ed Wegeles, p. 4; George Cardoza, p. 24 top; Gold Coast Pictorial, p. 27 background; Miami Herald, p. 27 foreground; Wide World, pp. 47 top, 74 top, 76 bottom, 81 right; Montreal Star/Canada Wide, pp. 47 middle, 48 middle and bottom; UPI, pp. 48 top, 59 bottom, 74 bottom left, 81 left; Marvin Koner, p. 54 right; Ray Fisher, p. 54 bottom; Culver, p. 66; Jim Mahan, pp. 70 top, 82; Liason, p. 70 bottom; Marc Riboud/Magnum, p. 72", "70 top; Magnum, p. 72 bottom; Pictorial Parade, p. 74 bottom top; right; Jim Pickerell, p. 85; NY Times/Teresa Zabula, p. 96 top; Judy Gurovitz, p. 98 top; Jerry Frank, pp. 98 bottom, 116; © Sport and General, p. 100 top; George Tames, p. 100 bottom; Hugh Patrick Brown, pp. 127, 130. Charts by Pete Di-George, pp. 30, 35, 105. Drawing by Huntley Brown/Macleans, pp. 47. Map by Paste-Ups Unlimited, p. 88.", "COVER: Drawing by Henry Martin.", "FORBES is published twice monthly by Forbes Inc., 60 Fifth Ave., New York, N.Y. 10011. Second-class postage paid at Post Office, New York, and at additional mailing offices. Subscription $15 one year U.S.A. Copyright © 1976 Forbes Inc.", "

Out where the telephones grow.

United Telecommunications, Inc., P.O. Box 11315, Plaza Station, Kansas City, Missouri 64112.
United Telecom companies: United Telephone System, United Computing Systems, North Electric Company.
New York Stock Exchange symbol: UT. Newspaper listing: UniTel.

It's the land of milk and honey. Rural and suburban America.

It's typical of United territory, embracing nearly 3,000 communities in 21 states served by the United Telephone system, 3rd largest in the nation.

It's where America is growing. And where telephones are multiplying.

In truth, it's a land of opportunity.

And it might be well, in this special year for our nation, to remember what opportunity is made of.

As simple a thing as initiative. And an enterprise system that encourages and rewards it instead of impeding and penalizing it.

It's a system some wise and courageous men and women fought and lived for, some two centuries ago.

And it's no less deserving today.

United Telecom
United Telecommunications, Inc.

We operate the United Telephone System, America's 3rd largest.

Fact and Comment

TALKING WITH BELEAGUERED HENRY K.

"They're like a bunch of piranhas," said Henry Kissinger of his now-countless press critics when I asked how it felt to fall from Deity to Devil in the comments of the Commentators. The change from being idolized to being savagely brutalized by the same Sages took a little getting used to. "Thin-skinned," Henry the K used to be called. His critics are down to the bone now, if not the marrow, and the Secretary of State discovers it hardly hurts or matters so much anymore, since he doesn't foresee indefinite tenure in his present post.

His wit, as well as his wisdom, remains unimpaired.
To former Defense Secretary and great Ford friend Mel
Laird, who was sitting with us, Henry Kissinger queried,
"Mel, why were you in my office the other day with that
interior decorator?"

Following this luncheon, he was off to Dallas for his finger-wagging speech declaiming that We Won't Permit Castro To Pull Any More Angolas (without going into How). But during our conversation, his mind was more on the newest of the endless ironies in the Middle East—that

only Syria had the strength to save the Christians and Lebanon, that Lebanon's preservation as a nation was most consequential to Israel, who so far indicated it would go to war if Syria entered Lebanon with the force necessary to preserve it.

Instead of asking when he was leaving his State job,
I asked Mr. Kissinger what his next might be. He properly
declared he couldn't entertain offers—if anybody wanted
to make any—while at his present employment. But he
did observe in passing that "I have already done the col-
lege scene."

And he was emphatic about one thing: "When I'm out, I
will not be peering over the shoulder of my successor in
any way, shape or form."

When this guy's gone, it will be too soon. He's been
the best in that job since . . . well, I can't immediately
think of anyone in the past who's been his equal. Even-
tually, perhaps even again in his lifetime, his extraordinary
accomplishments for his country will once more be wide-
ly recognized.

SADAT, IN TELLING RUSSIA TO SHOVE IT

and in publicly, accurately branding Libya's el-Qaddafi
as a "mental case" and slowing Syria's leftist extremists, is

displaying as much guts as Jordan's Hussein often has.

Let's hope he's as successful in not having his own spilled:

London: BRITAIN'S UP THE CREEK

but still has a paddle left. Whether the British are go-
ing to continue using it to whack each other or to pro-
pel their boat and in which direction is unknown.

Under $1.90, the pound's undervalued and should

hammering out another agreement with labor for wage re-
straint he's contributing most toward his country's survival.

It takes some doing to find 'em, but there are bits of
brightness in the bleakblack British picture. Nationalized

industries have
required such
heavy subsi-
dies to keep
unneeded
workers on the
payroll that
the Labor
government
has had to call
a halt to the
hemorrhaging.

Why reproduce this near-daily head-
line from the *New York Times*? Only
because it's *not* from yesterday's paper.

It's from a front-page story in the
*Times* of Aug. 19, 1919 summarizing
a three-hour speech delivered by
Prime Minister David Lloyd George.

Who was it said something about
the more things change the more they
remain the same. . . ?

now stabilize
for a while.
Callaghan
won the PM
Roses, but
leftist Foot ran
a race fore-
bodingly fleet-
er than antici-
pated. Hea-
ley's the one,
though. By

FORBES, APRIL 15, 1976

15

Now Her Majesty's Labor ministers are promoting measures to stimulate private industry and to curb soaring welfare costs—a total reversal of form and platform.

And there are some very bright younger men moving to the helm of British corporations who may be able to bridge that measureless gulf which so cripplingly divides Englishmen between those whose blood runs red and those who think theirs is blue. Talking to the likes of Rupert Hambro, brilliant executive director of Hambro's Bank, rekindles confidence that indeed there will

always be an England-and perhaps again a solvent one.

*Potpourri:* Many London art dealers now quote prices in dollars rather than pounds. . . . Despite fjordsfull of empty tankers available at distress prices, Arabs continue to contract for new ones. Secondhand, even in tankers, has no appeal to new oil wealth. . . . Wilton's remains a mouth-watering oasis in London's dining desert. . . . Perplexing: Those who seem least concerned about Great Britain's problems are the British themselves.

## That's Life: POOR HOWARD HUGHES HAD TO DIE

to prove he was alive.

## DON'T WASTE TIME WORRYING ABOUT CAPITAL SPENDING

I get a chuckle out of all the guff emanating from various economists and other Tealeaf Interpreters over the fact that surveys and forecasts report new plant and equipment expenditures are not way up.

Such surveys are frequently a few weeks old by the time they are compiled and released. And usually the figures supplied are based on corporate budgets adopted at the end of last year. Analysts accepting such figures as meaningful don't understand the meaning of the word management. To able corporate chieftains, budgets are

guidelines, not straitjackets. As swiftly as a CEO can curb planned capital spending in a downturn, he can put in motion additional capital spending.

Don't worry about the "lag" in capital investments.

The lag is in the statistic, not the fact.

Burgeoning consumer spending for nearly everything—even houses—means that right now well-run companies are putting in motion orders for the additional equipment and plant which will enable them to meet most efficiently those unforecast sales orders.

Art Note:

## SCULPTURAL MESSAGE

by Biraben

## THERE'S NOTHING "UNTHINKABLE" ABOUT IT

Postmaster General Benjamin Bailar prefaced his proposals for curbing the postal deficit by suggesting that some of them might at first seem "unthinkable." The only thing unthinkable about his proposals is to not swiftly implement them.

Everybody, and I do mean everybody, has been jumping on, dumping on the U.S. Postal Service for innumerable, understandable reasons—soaring postal rates, slower deliveries and a widening deficit.

There's probably no way to do away with a postal deficit and have the Service meet its prime functions. But lopping off expensive, less needed services and facilities is a first essential to restoring the Postal Service to health.

## TEMPUS FUGIT

So catch it if you can.

Some Bailar suggestions—

* Cut deliveries to five days a week from six, omitting Saturday.

* Where feasible, require "cluster boxes" as a substitute for front-door delivery.

* Promptly eliminate the less-used of the country's 40,000 post offices and substations.

* Cut business deliveries in major cities to once daily.

By such steps, which affect everyone's convenience a bit, our postal system becomes, in D.C. jargon, viable.

For every kick Brave Bailar gets, he deserves a thousand cheers.

Go forth, General, and lead the Charge for Changes.

## THE ULTIMATE IN OPTIMISM

Confidence that there is no next world.

—MALCOLM S. FORBES,
Editor-in-Chief

16

Other Comments

Often comments by others seed, stimulate, irritate, amuse or abuse my mind.—M.S.F.

## Counterattack

What do those who speak so glibly about one-way streets or preemptive concessions propose concretely that this country do? What risks would they run? What precise changes in our defense posture, what level of expenditure over what period of time do they advocate? How concretely do they suggest managing the U.S.-Soviet relationship in an era of strategic equality?

—Henry Kissinger.

## Competition for the P.O.

Senator James L. Buckley, Conservative-Republican of New York, introduced a bill to allow private carriers to compete with the United States Postal Service in the delivery of letters. . . . Repeal of the monopoly laws, known as the private express statutes, would "let the forces of competition provide this country with the kind of efficient mail service it needs and deserves," Senator Buckley said. . . . [He] attacked rising costs of mail delivery and said, "Public frustration

with the Postal Service is mounting."

The Senator turned aside arguments that if the monopoly were broken, private carriers would take only the low-cost routes within metropolitan areas, leaving the expensive service to the Postal Service. "In a competitive market, cream skimmers would be the 'good guys' who protect consumers' interest by keeping the suppliers honest," he said. If the Postal Service ultimately was left with just the costly service in remote areas, Mr. Buckley said, Congress could allocate a straightforward subsidy to hold down these costs to the consumers. —New York Times.

## Profit Motive Russian Style

"How can anyone tell what the poor Russians are thinking? They have no freedom to tell us!" Representative Millicent Fenwick (Rep., N.J.) said she came away [from a trip to Russia] convinced that "the profit motive is what's making industries and farms go in Russia. It's all they seem to think about! They're more passionate about profits than

any American businessman I know! Because that's the way to get roads built and provide services. It's all 'for the people,' they say, all very benevolent, but I noticed that the managers have the better cars and the second homes. In Russia, when an official car comes down the highway, ordinary citizens pull over onto the shoulder. I was pleased to see that in Denmark, by contrast, the official cars we rode in stopped at every red light."

—interviewed by William McCleery, University—A Princeton Quarterly.

## Prohibition and Sex

Prohibition didn't work for liquor in the Twenties, and it won't work for sex in the Seventies. Leave the consenting adults alone and worry about the nonconsenting ones (rape, robbery and murder).

—Marv Tidwell, in a letter in Time.

## Charm

It is deceptive in one thing—like a sense of humor, if you think you’ve got it, you probably haven’t.

—Laurie Lee, I Can't Stay Long.

# THE ROOT OF THE CURRENCY TROUBLES

by M.S. Forbes Jr.

The European currency exchange markets have undergone considerable turmoil. France was forced to leave the "snake" (a mechanism whereby several European countries keep their exchange rates among each other within a 4½% band), and Italy's lira and England's pound continue to go down and down. Now, with a meeting of Common Market leaders breaking up with no new agreement on anything, Europe's much-heralded progress of last fall toward economic and political union is dead.

That there has been so much trouble should really have surprised no one. The fact is that there can be little currency stability if the economies of Western Europe remain so divergent in price performance. How could France expect the franc to stay closely aligned with the German mark when the French balance-of-payments picture remains murky and Germany's trade surplus remains fat, when France's inflation is running at twice the rate of the Teutons'?

The same holds true for Britain and Italy where inflation is still very high. Both countries foolishly

borrowed and spent considerable sums of money to prop up their sagging currencies. Since they import so much, a devaluation means an uncomfortable rise in inflation, which is as politically unpopular abroad as it is here at home. But as it always does, economic reality eventually forced these countries' hands.

The snake is an attempt to bring order out of the chaos of floating exchange rates, and for the countries remaining in it—Holland, Belgium, Luxembourg, Denmark, Sweden and Norway as well as West Germany—the mechanism will do just that. These countries are immediately knit to Germany in trade and thus have a keen, vested interest in staying as closely tied to the D-mark as possible. This was not so true in the case of France.

What the political leaders of Western Europe, especially France, keep forgetting or ignoring is that the Bretton Woods system of fixed exchange rates worked as well as it did because of the relative economic price stability that once existed in the West. That's hardly true today, and as long as the Eu-

ropean economies remain so price divergent, future currency instability is unavoidable.

* * *

Many angry European political leaders muttered darkly that Britain suddenly became 'passive in the face of its falling currency because such a devaluation would boost British exports.

Actually, any fillip England gets from the plunging pound will be a long time in coming, and the reason was succinctly given to this writer three years ago in an interview with Edward Bernstein, noted monetary expert and one of the surviving architects of Bretton Woods. "It takes Britain longer to get a good response in its balance of payments from a devaluation, because the proportion of British imports consisting of foodstuffs and raw materials is very high," said Bernstein. Moreover, such exports depend as much on workmanship and delivery reliability as they do on price.

Britain wasn't trying to pull a fast one on its trading partners when it let the pound go. It was simply being realistic.

FORBES, APRIL 15, 1976

17

# The 5-cylinder Mercedes-Benz 300D. Another engineering milestone that has quietly inspired a change in traditional automotive design.

The Mercedes-Benz 300D has quietly changed the rules of the automobile game. This 5-cylinder Diesel automobile offers a unique combination of performance, luxury, economy and quality. It is the most powerful, the most complete and the swiftest Diesel passenger car ever sold. Since Mercedes-Benz introduced the first production Diesel passenger car 40 years ago, that is only fitting.

## No tune-ups—ever

Consider the benefits of this Mercedes-Benz. The 300D uses economical Diesel fuel. Countrywide, every gallon averages 4¢-7¢ less than regular gasoline.

Diesel fuel also has more energy per gallon than gasoline, so every gallon not only costs you less, it takes you farther. And, Diesel fuel is plentiful. Thousands and thousands of stations sell it all across America.

The 5-cylinder 300 Diesel achieved EPA mileage estimates of 28 mpg (highway) and 22 mpg (city). While your mileage depends on how and where you drive and your car's condition, compare these estimates to any full-sized sedan.

Another plus: With the 300D you can forget about that expensive automotive custom known as the conventional tune-up. Because it has no spark plugs, points, distributor, condenser or carburetor, the Mercedes-Benz 300D *never*, ever, needs one.

One more thing. While the 300D is not as big, not as heavy and not as thirsty as most full-sized sedans, this 5-passenger automobile

is every bit as practical and comfortable. After all, it is a Mercedes-Benz.

## The forerunner's reward

Over the past five years Mercedes-Benz automobiles have held their value better than any other make of luxury car sold in America. It stands to reason that the 300D will be no exception. After all, since this automotive forerunner is years ahead today, it is bound to be a sound asset while the others are trying to catch up tomorrow.

The incomparable Mercedes-Benz 300D sedan. An engineering milestone which has quietly advanced passenger car design a giant step.

Mercedes-Benz
Engineered like no other car
in the world.

©Mercedes-Benz 1976

What the passenger car should be coming to: The incomparable Mercedes-Benz 300D.

THE WHITE HOUSE
WASHINGTON

August 9, 1975

Dear Henry:

Although I much prefer looking forward
to looking back, I do want you to know
on this first anniversary of assuming the
Presidential office that whatever I have
been able to accomplish for our country
has been due in large measure to your
loyalty and untiring help.

Time races by without adequate opportunity
for me to say personal "thanks" to all who
work here. But I do want you to know that
I am mindful and deeply appreciative of your
cooperation and your commitment, and for the
tolerance shown by your family and friends
at the over-long hours you put in -- not
just for me, but for the big job we are all
trying to do together.

I can't promise any shorter hours in the
future but I am looking forward eagerly to
more challenges and more achievements --
with your assistance and your continued
support. Mrs. Ford joins me in warm good
wishes to you and yours.

THE WHITE HOUSE
WASHINGTON

January 7, 1977

Dear Henry:

I was delighted to learn of the luncheon
in your honor hosted by the Conference
of Presidents of Major American Jewish
Organizations.

I know that as a nation we will always be
staunch in our support for Israel and its
security. We all want a lasting peace
which will benefit all the peoples of the
Middle East.

No one knows better than I your devotion
to this cause. Our accomplishments in
that area of the world -- and I believe
they are significant -- are in very large
measure a tribute to your skills as a
diplomat and your tenacity as a negoti-
ator. Your tireless efforts have paved
the way for future progress.

Please convey my warmest good wishes to
all those who will be with you on this
happy occasion.

The Honorable Henry A. Kissinger
Secretary of State
Washington, D.C.

[lc]

Henry Ford II
Dearborn

November 13,
1975

The Honorable
Henry A. Kissinger
The Secretary of State,
Washington, D. C.

Dear Mr. Secretary:

It is my understanding that Guilford
Dudley is interested in becoming Ambassador to
the Court of St. James.

I write to tell you that I am a
friend of Mr. Dudley. I know he has been
Ambassador to Denmark in which position, I
understand, he served with excellence. I
would highly recommend him for the post as
Ambassador to the Court of St. James.

I do hope that you will give him
serious consideration.

HFII:jc

THE WHITE HOUSE
WASHINGTON

January 29, 1976

Dear Dr. Kissinger:

It was good to see you again this morning even if for just a brief moment. Your presence reminded me of a conversation that Gayle and I had with you and Nancy while at Camp David this past summer.

In relating to you our educational and spiritual pilgrimage we spoke of our experience with a Dr. Francis Shaeffer over in Chesieres, Switzerland. We mentioned the gifts this man had in developing and articulating a total world view which incorporated the realities of contemporary society (politics, economics, social needs, etc.) in the context of a relationship with a personal and holy God.

At that time you expressed an interest in possibly getting together with Dr. Shaeffer for some dialogue the next time he was in the United States. I did want to be faithful in informing you that Dr. Shaeffer is presently in the country lecturing (through February 12th) and certainly would be willing to meet with you at your convenience.

Being sensitive to the great demands of your position, I realize this may be an inappropriate time for such a meeting. Another alternative would be a possible meeting together over in Switzerland when you have the occasion to visit your parents at Flims.

Please be assured that I am not trying to manage the situation but only open the door to a meeting which I believe would be mutually beneficial.

I wait for further instruction.

The Honorable Henry A. Kissinger
The Secretary of State
Washington, D. C. 20520