Anti-Inflation Program Statement on Administration Measures To Implement the Program.

I have taken four actions which underscore my commitment to restraining inflation and to implementing an anti-inflation program which is fair but tough.

These actions are a clear indication that the Federal Government is prepared to do its part to reduce inflation. These actions also call upon important sectors of our economy to participate in the fight against inflation. If we are to succeed in that fight, no sector of our economy can be exempt.

First, I have vetoed S. 2416, the Nurse Training Amendments of 1978. These amendments would authorize expenditures far in excess of our budget request and the needs of our nurse training programs. In addition, the amendments would continue certain financial assistance programs for undergraduate nurses which are no longer necessary, in light of the number of nurses in our country and the expansion of educational assistance programs for all undergraduates.

Second, I have vetoed H.R. 9937, which would have terminated my authority to negotiate reductions in United States tariffs on textiles and textile products in the Multilateral Trade Negotiations. Acceptance of an exemption for the textile industry would inevitably have led to a request for similar treatment for other industries. In order both to increase our exports and reduce inflationary pressures, we are attempting to negotiate mutual reductions of tariffs and nontariff barriers to trade around the world. By completely exempting an entire industry from these negotiations, we risk a series of retaliatory actions by our trading partners on those agricultural and industrial products which have the greatest potential for increased U.S. exports. In addition, we would seriously threaten the successful conclusion of the Multilateral Trade Negotiations, which is vital to relieving inflation pressures here and abroad.

Third, I have vetoed H.R. 11545, the Meat Import Act of 1978, which would have deprived me and future Presidents of a major anti-inflation tool. While I favored the act's countercyclical formula for determining the level of meat imports, we clearly stated during congressional deliberations that I could not accept a bill which limits my existing discretionary authority to expand meat imports or which limits meat imports to less than 1.3 billion pounds a year. This bill does not meet either of those requirements: It severely restricts a President's authority to expand meat imports and permits only 1.2 billion pounds of meat to be imported a year.

Fourth, the Department of Agriculture, with my approval, will today announce a 1979 feed grain program that is essentially the same as the one for this year. The most recent crop reports show that our country, as well as the rest of the world, will have the greatest levels of feed grain production and the largest total supply in history. As a result, over the next 12 months, the average price of feed grain will be virtually the same as during the past year. The balance of supply and demand together with the program I have approved will likely result in feed grain prices late in 1979, and through most of 1980, that are well within the targets of the anti-inflation program I recently announced.

Under the 1979 program, producers who participate will be offered a target price of $2.20/bushel (up 10¢ from 1978) if they set aside 10 percent of their land. In addition these farmers will be eligible for a diversion payment of 10¢/bushel (down 10¢ from 1978) in return for diverting an additional 10 percent of their acreage. Without any set-aside program in 1979 these farmers would face a disastrous reduction in their income. This set-aside program is a carefully balanced one, which is fair to producers, to consumers, and to taxpayers.