Anti-Inflation Program Remarks Announcing a National Accord Between the Administration and the American Labor Leadership.

In my Sunday night speech to the Nation in July, I said that the people of our country want to see government and our great institutions pull together to face the complex challenges which confront us as a people. Inflation is the most persistent challenge to our economy, primarily fed by escalating energy costs, which are predominantly controlled by others in foreign countries. Inflation tends to pit our people and our institutions against each other and contributes to a sense of frustration and doubt and concern, which is so worrisome to our people. Ultimately, if not curbed, inflation will sap our confidence as a nation, will erode our faith in the future, and will threaten those basic human values which make our country great.

I've called for our institutions and our people to regain a sense of shared purpose and shared cooperation and to join in a successful fight against inflation. Today, I'm very pleased to announce that enormous progress toward that goal has been made. I'm pleased and proud to announce that this administration has achieved a new national accord with the broadest possible impact in order to fight against inflation.

This accord is represented by a statement of principles which we've been pursuing since July in discussions with representatives of organized labor. Parallel discussions have also been held with the leaders in the business community.

The communication from President George Meany—that the AFL-CIO executive council has today endorsed the statement of principles—means that for the first time in history, such an accord has been reached on a voluntary basis. I'd like to say that President Meany, who's announced that he will not seek reelection today, has contributed with his heart and his mind, his experience, his inspirational leadership to the reaching of this agreement, and I'm deeply grateful to him.

I also want to commend especially Secretary William Miller and the members of my economic policy group, the key leaders, in addition to Mr. Meany, of our major labor organizations, and representatives of the business community for working so constructively together in search of this understanding.

As part of our national accord, we will be establishing a Pay Advisory Committee and a Price Advisory Committee. Organized labor leadership has agreed to serve on the Pay Advisory Committee, and I'm counting on business leaders to join it also.

This Committee, which will play an important role in assuring restrained but equitable pay increases, is to be made up of 15 members—five each from labor, business, and the public. John Dunlop has accepted my invitation to serve as Chairman of this Pay Committee, and other members will be announced in the near future. The Price Advisory Committee will consist of five public members whom I will name in a few weeks.

I want to emphasize again that if substantial progress is to be made to reduce inflation in this country—and this will obviously take time and sustained effort-we will need the active and dedicated support for Government of both business and labor.

The developments of today provide us the initial framework for such an effort, and I pledge to do my utmost to follow through and to make this initiative a significant forward step in our continuing and determined fight against inflation in the United States.

I would like now to introduce the Secretary of Treasury, William Miller, who, along with others on the stage with me, will be glad to answer your questions.

Bill Miller.