Governor CLEMENT. Fine. I would like to present at this time, all of you know, our distinguished former Senator Herbert S. Walters. We also have a member of the general assembly that I have a little business with, Representative Jimmy Cook, of Davidson County here.

Senator RANDOLPH. At this time, I believe it is appropriate to place in the record a letter from our distinguished colleague, the senior Senator from Tennessee, Senator Albert Gore, who is unable to appear in person at this time.

STATEMENT OF HON. ALBERT Gore, a U.S. SENATOR FROM THE STATE OF TENNESSEE

Mr. Chairman, I appreciate very much the courtesy of the committee in allowing me to express my views on the Appalachian Regional Development Act of 1965.

Certainly this measure is of historic importance in that it recognizes, and would implement, the regional concept in dealing with problems of development. This is a key measure of the 89th Congress, not only because of the benefits which it would bring to a sizable portion of our country, but also because it could be, and I hope will be, the prelude to a succession of measures tailored to fit the needs of other regions.

Of course, not all regions require the same treatment. Not all would benefit equally from the same treatment. A dollar spent in this way in all regions would be inefficient and most undesirable. But I want the members of this committee whose constituents do not live in Appalachia to know that I will support properly tailored bills to benefit other lagging regions just as vigorously as I support this

one.

This bill is badly needed. It, or something like it, is of the utmost necessity if we are to bring Appalachia up to the educational, technological, and industrial level of the more prosperous portions of the country.

The bill is important to the people of the State I have the honor, in part, to represent in the Senate. But it is surely worthy of support on the basis of the strength its implementation will lend to the entire national fabric.

Approximately half the counties in Tennessee are included in Appalachia, and about one-third of the State's population is located there. Not all these counties are poor; indeed, some of the State's wealthier counties are in this region. But on the whole, the people of Appalachia have a per capita income about threefourths that in the remainder of the State, and unemployment is about one-third greater.

The main thrust of this bill, at least as measured in dollars, is in the field of transportation. This is certainly as it should be, for the first need of Appalachia is transportation, particularly highways. One of the characteristics of the region is its isolation, and transportation will certainly do much to overcome this obstacle. I hope the main highways and access roads authorized by this bill will be so located as to forge commercial links between our great cities and markets and the now isolated communities of Appalachia.

But, although transportation is important, I am glad to see that other avenues of development are explored.

Water rsource development can do much. Indeed, the Tennessee Valley Authority has already demonstrated this fact. Those portions of Appalachia not in the Tennessee Valley can, perhaps, be brought up to the high standards now pertaining in the TVA area in this regard.

Coal is without question the region's most important mineral resource, and it is right and proper that improvements in mining and marketing should be considered in any plan for regional improvement. Low-cost thermal power can be most important in attracting certain industries. And here again TVA has demonstrated something of what can be done.

Tourism and recreation are already important to Tennessee's portion of Appalachia and can be exploited further. Appalachia is within easy motoring reach of the eastern part of the country, where the bulk of the population is located. With the expansion of leisure time, a larger share of the domestic tourists' dollar should and can be funneled into Appalachia.

There is one portion of this bill I would like particularly to emphasize. I refer to part B, which provides for funds to supplement and modify existing Federal programs. Second to transportation, this may well be the most important part of this bill.

In my view, the accelerated public works program has been one of the most effective programs for the advancement of our smaller communities. The funds released under that program enabled many Tennessee communities to construct sewer and water systems. Without those Federal funds, local resources would have been greatly strained.

Indeed, without the triggering effect of Federal funds, many Tennessee communities would have continued to go without proper public facilities. Now that some water and sewer systems have been built, however, the people have begun to enjoy a better life and a safer life, and some start has been made toward bringing in industry where there was none before. Where industrialization had begun, it has been truly accelerated.

It appears now that the APW program will not be revived or reenacted. If such is to be the case, part B of this bill takes on added significance, and should, perhaps, be strengthened.

I would respectfully suggest to the committee that serious consideration be given to adding emphasis to part B, particularly with respect to community facilities. I am sure many communities in Appalachia outside of Tennessee have need for these projects, and, indeed, have plans drawn and engineering practically completed. I know such is the case in Tennessee's portion of Appalachia.

The problem of Appalachia are many. Although they are capable of solution, this bill alone, of course, will not solve them. But this bill does delineate some of them and provides a start toward their solution.

The people of Appalachia themselves must do most of the job. They are fine people, and are anxious and eager to move along with the rest of the country. They do need outside help in getting started on the right road.

I hope the committee will report this bill promptly, with such amendments as seem justified. I shall support the measure vigorously when it comes before the Senate.

Senator RANDOLPH. Governor Clement, we know of the vigorous efforts that have been made under your administration for the development of the potential of Tennessee.

As one who supported the Tennessee Valley Authority in the 1930's, and there was no direct benefit to West Virginia, I hope that those in Congress will look at the results of that legislation and acknowledge its benefits not only to the immediate area, but to the Nation as a whole. Similar benefits are, I believe, held forth in the pending legislation.

Governor Clement, you proceed in your own way and we are delighted to have you, sir.

STATEMENT OF HON. FRANK G. CLEMENT, GOVERNOR OF TENNESSEE, ACCOMPANIED BY FORMER SENATOR HERBERT S. WALTERS AND LINDSAY ALBERT, DIRECTOR OF STATE PLANNING, STATE OF TENNESSEE

I

Governor CLEMENT. Thank you very much, Mr. Chairman. want to first of all thank you and members of your committee and your staff members and associates for this privilege, and again in response to the invitation you so kindly issued a few moments ago to your former colleague Senator Walters.

I would say for the record I always feel better when Senator Walters is by my side, whatever the situation may be, and I am glad to have him here with me.

Senator RANDOLPH. Thank you.

Governor CLEMENT. We have also with us, Mr. Lindsay Albert, our director of State planning, to my right, because he works very closely with us and with officials of the Federal Government and also with local officials in the affected area to which we are directing our

attention today. And it might be that now or later this committee might want some detailed information and I am sure Mr. Albert could be very helpful to us.

Senator RANDOLPH. Thank you, sir.

Governor CLEMENT. I appreciate, as I said a moment ago, Mr. Chairman, very much this opportunity to testify in behalf of Senate bill 3 which embodies President Johnson's Appalachian regional development program.

This program, as you know, has evolved over several years and represents careful study and deliberation by the representatives of 11 States, together with many Federal agencies. It is a concerted effort to do something about a segment of our Nation which does not share in the affluent society, most often through no fault of its own.

Now I don't intend on this occasion to go into more detail than the committee would desire that we do so, but I conceive it my duty not to try to tell this committee those things which I know of all people you are most familiar with already, things that would be repetition.

But it is my desire, as we lawyers would say, to be as brief as possible that we more or less have a meeting of the minds between those of you who serve here in the Capital of our Nation and those of us who serve back in the State capitals. And if there are any areas of disagreement or misunderstanding, I know that you as well as we would want to be sure again that we clarified them and tried to seek those areas of understanding instead.

Tennessee gives unequivocal support to the Appalachian program now being considered. It is a joint local-State-Federal effort to enhance economic opportunities in the region. During the formative stages of the program, the President's Appalachian Commission held numerous meetings in the region to discuss the various problems and aspects of development. The two meetings held in Tennessee demonstrated beyond any doubt the acceptance of the program and the determination by local citizens groups that we must work together to solve common problems.

I would like to point out, also, that the cities and county governments in Tennessee, through their associations, testified last year before the appropriate committees in behalf of this program.

I would like to emphasize from the beginning that while we are here considering the Appalachian region as a whole, not all of the region should be considered in a "depressed" condition. Within the region lie some of our more prosperous industrial areas. In Tennessee's portion of Appalachia, for example, the Kingsport-Johnson City-Bristol area, the Morristown-Greeneville area, the Knoxville-Alcoa-Oak Ridge areas, and the Chattanooga area, to mention several, serve as large economic nuclei around which much of our fine industry develops. But nevertheless, in the outlying areas, in some of the smaller communities, in the mountainous areas, and in some rural areas, we find severe problems of economic decline. These have been brought about as pointed out in the Appalachian regional commission report, largely through changes in agriculture and in production of coal. Technology is changing our way of life.

We must realize, as a people, that our private enterprise system is the "backbone" of America. But we must realize, also, that this system is continually changing and we must be willing and able to

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reorient our programs and adjust to these changes. The Appalachian Development Act recognizes this and the joint local-State-Federal team approach is aimed at providing the economic base for private enterprise to prosper. Each job that is created in this manner means a more abundant life for a family without benefit of subsistence payments of one kind or another.

The bill under consideration is a comprehensive approach to problems of economic development, probably the first of its kind anywhere in America. While Tennessee endorses the program in its entirety, I would like to comment more specifically on several aspects and the benefits to be derived therefrom.

HIGHWAYS

For example, under the broad subject of highways, because of the rough mountainous terrain which characterizes the region, highway transportation is limited and parts of the region are impassable, hence, goods and services do not move readily and private enterprise is handicapped in not being able to utilize resources, which in turn provide jobs and incomes needed for its people.

Lack of highway access to areas with a potential for industrial development inhibits maximum development of our resources. While in Tennessee our interstate highway system will link major and some minor urban areas, a number of smaller and yet underdeveloped areas would be assisted by the system of developmental highways proposed under the program. For example, the route proposed through the Cumberland Mountains of Tennessee and Kentucky, when considered in combination with water resources projects proposed in the program, would open up water-related economic opportunities unheard of. The bill would provide for such a new system of developmental and access highways to be constructed on a Federal-State matching basis. This system is a must if the regional isolation of Appalachia is to be overcome. Tennessee is prepared to contribute its part of the cost.

WATER RESOURCES

We know that control of water is essential to the economic growth of the region. Properly regulated, water becomes a tool with which to work. Abundant electric power can propel our industries, river transportation makes available new outlets and markets for our natural resources, and abundant water can give us lattitude to develop our recreation and tourist industries, so vital to the small entrepreneur.

What we need, and what the Appalachian States are asking for, is not a handout as such, but a partnership with the Federal Government. Through Federal assistance such water related projects can be developed thereby creating an economic base, shall be say, or a favorable climate in which the local communities and private enterprise may grow and develop new job opportunities. We in Tennessee know from firsthand experience with the Tennessee Valley Authority, Senator Cooper, that such a partnership can be developed. I would like to endorse this concept of water resources development as proposed in the bill.

OTHER PROGRAMS

We are prepared to assist communities plan multicounty health facilities as proposed to demonstrate the value of such facilities to the economic development of the region. Only with a sound body and mind can our people contribute to the Great Society.

We are happy to endorse the proposal for assisting the small landowner in the improvement and development of land for pasture and erosion control in the region, such program to utilize the technical know-how of the Soil Conservation Service, the States, and local agricultural committees for this purpose.

We support the effort to further improve our timber resources especially that of providing technical assistance in the organization and operation of timber development organizations to carry out timber development programs, to improve productivity, quality and increase returns to landowners.

We welcome a joint effort with the States to reclaim and restore abandoned coal mines in the region and to expand and accelerate fish and wildlife restoration in areas privately damaged by deleterious practices.

Tennessee is ready to improve the educational opportunities of all its citizens, and in this connection, I might add, an acceleration of our area vocational technical schools will be possible under appropriate sections of the bill to serve additional areas in Appalachia, where training and education is needed for maximizing employment. Our State has already spent almost $5 million of its own funds in the past 2 years in developing a statewide system to form a skilled labor force as a further attraction to industry.

PLANNING AND ADMINISTRATION

I might say that Tennessee endorses the proposed Appalachian Regional Commission as a suitable instrument to provide continuing comprehensive planning for the region, for we feel that only in this manner can focus be made on those problems that cross State lines. I pledge my full support to working with other States in this coordinated effort, together with the financial participation in staffing and operating expenses necessary after the initial 2 years of operation.

The bill requires a coordinating framework at the State level to review and evaluate projects before submittal to the Commission. Such procedure should enable the States to concentrate on those aspects of the program that make for harmonious planning and development of the area. Such procedure should also stimulate comprehensive statewide and regional planning by the States themselves as we have done in Tennessee through our State planning office.

Tennessee, like many of its sister States, has many resources to be tapped and put into productive use. We have moved ahead on many programs on our own without asking for assistance. We will continue to move ahead as the needs of Tennessee are felt. But we are asking the Federal Government through the enactment of this program, to establish a joint partnership in expanding opportunities for all the citizens.

Mr. Chairman, the President's Appalachian program is a monument and a challenge to all of us who are involved with problems of economic