Remarks Announcing Appointments in the Executive Branch

Ladies and gentlemen:

I have an announcement today with regard to major appointments within the executive branch. As you know, for many years all commissions studying the organization of the Federal Government have unanimously recommended a reorganization of the Office of the President. Those recommendations, unfortunately, in previous years, have not been able to be implemented. This year the reorganization of the Office of the President. Congress has not disapproved it. It was presented to the Congress and, as a matter of fact, the Congress, the majority of the House that' did take it up voted in effect for it.

The plan will go into effect on July 1. Under that plan, as you know, a new office is set up, the Office of Management and Budget. This Office is one that will have major responsibilities in a number of fields and particularly in what I would describe as how the Government operates. The domestic policy council, for example, will make decisions with regard to what the Government does, but the question of how the Government operates, how much we can spend for this program and that, the evaluation of programs, the management of programs-in these vitally important areas we are making a new and, we think much needed approach.

To find the man who could assume this new responsibility has been a very difficult problem, difficult because finding one who exactly would fit all of the qualifications is not always possible. We think, however, that we have in the Secretary of Labor, George Shultz, the man who best fits the needs of this time for setting up this new Office and administering it.

He is, as you know, a former dean of the School of Business Administration of the University of Chicago. He is a distinguished economist and he has demonstrated very clearly in his months as Secretary of Labor that he is one of the best administrators of a department within the executive branch at this time.

He has agreed to accept the post as Director of this Office.

One of those with whom I consulted and who strongly recommended him, as a matter of fact who said that if he was making the choice it would be his first recommendation, is our present Budget Director, Bob Mayo. Mr. Mayo said that, based on the needs of the Office and the qualifications of George Shultz, that he felt that he was the best qualified man to take over this new Office.

Robert Mayo, as you know, has been our Budget Director. He has, in my opinion, made a record that will for many years be looked upon as one of the most distinguished records, one of the best records, as Budget Director that this Government has ever had.

When he came on as Budget Director he indicated that he would stay through two new budget cycles. However, with the new Office coming on July 1, he felt that it was important that the new team begin on July 1. But, Director Mayo has agreed to come into the White House as a Counsellor to the President and in this capacity he will advise the new Office and help in its implementation and also give advice to the President in other fields, economic fields, where his advice previously has been invaluable.

In this Office, also, there is the Office of Deputy Director with specific responsibility for the budget. Here we have gone to the State of California, to Caspar Weinberger. He has a distinguished record there, first as an attorney, then, as you know, as Director of Finance for the State of California, and since that time has been in Washington as Chairman of the Federal Trade Commission, and in that office has just completed a major reorganization there.

We are moving him from the Commission earlier than I would have hoped, but the need here, we thought, was such and his qualifications so unique, that he was the man to serve as Deputy Director of the Office of Executive Management and Budget with specific responsibilities for the budget.

Then we turn to the successor for Secretary Shultz. Here, following the practice that I like to follow whenever it seems consistent with the needs of proper service for the people, I have looked within the department at a man who was recommended by Secretary Shultz for his successor, his Under Secretary, Mr. James Hodgson, also from California.

Mr. Hodgson is one who has a rather unique reputation in labor circles and business circles. He has the respect of business and management people; he also has the respect of labor people, all of whom I consulted prior to making this announcement today.

I believe that this new team that I have announced today in each of the offices that they will be filling will do a very distinguished job. I will just say one final thing before Secretary Shultz and Director Mayo and Caspar Weinberger will answer questions. Mr. Hodgson will answer no questions, because he has Senate confirmation coming up for his position and will save the questions for them.

The real test now comes in how this Office of Executive Management and Budget operates. The question that many will ask: Is this just another layer of government on top of too much government already? That is the question that this new team will find an answer to. If it is that, it will have been a great mistake. However, we believe that as a result of the new procedures that will be put into effect by this new Office we will be able rather than adding another layer, to remove some layers of government, to streamline, if I may use that overworked term--to streamline our Government offices so that we may more effectively serve the Nation in the many areas where the Federal Government has responsibility.

I only hope that perhaps a year from now, or 2 years from now, we can look back at this moment and say it was not just another layer, but it resulted, because of this new Office and the new men that take over these responsibilities, in accomplishing what commission after commission have recommended through the years, finally bringing real business management at the very highest level into the executive branch of the Government.

And with that I will turn the questioning over to Mr. Shultz, Mr. Mayo, Mr. Weinberger.

Thank you.