innovation must become as vital a part of the civilian economy as it has been in defense and space. This is the way to create jobs, cope with our social problems, and strengthen our international economic position.

My economic conversion proposals meet four basic goals, which are set forth in the bills before this subcommittee: First, we must establish a framework of national science policy which assures the Nation the maximum benefit from its technical resources. Second, we must create 200,000 technical jobs which tackle the real problems of our society. Third, we must aid communities, companies, and individuals in making the difficult transition into those jobs. And fourth, we must provide interim financial aid to unemployed technical personnel until the new programs are operational.

One way to create many of the necessary jobs is through the New Cities Research and Experimentation Act, which authorizes $1 billion for the design and development of much needed new cities.

Lately, it has become fashionable to say that our cities are ungovernable, that their problems are insoluble. I cannot accept this pessimistic view. Surely, the scientific skills and organizational abilities which carried us to the surface of the moon can teach us to move expeditiously over the face of the earth. Surely the Nation that produced the most powerful industrial system in history can learn to adapt its technology to present problems and future needs. Surely, the people who tamed a wilderness and created our modern civilization can unsnarl our cities and make them livable, once again, for man.

The Conversion Research, Education, and Assistance Act, S. 32, meets two of the other basic goals. It establishes for the first time in our history, civilian science policy for the Nation: Full-employment for scientists and engineers, in positions commensurate with their skills; annual growth in the Federal investment in science and technology, in proportion to the growth in the GNP; parity between civilian and military research and development.

This act also authorizes $500 million for aid to communities, companies, and individuals in making the difficult transition to civilian, social programs. Such aid would encompass financial, technical, and educational assistance. Key programs include: $63 million to establish community conversion corporations; $45 million to enable State and local governments to employ scientists and engineers; $45 million to help small technical firms convert to civilian activities; and $225 million to provide unemployed technical personnel with placement and relocation assistance, and reorientation and on-the-job retraining.

The remaining goal of my proposed conversion program is met by S. 1261, the Economic Conversion Loan Authorization Act. This bill authorizes $200 million to provide Government guarantees and interest assistance payments for long-term, low-interest loans to unemployed scientists and engineers. They would be able to borrow up to $12,000 and have 10 years to repay the loans after they were reemployed in jobs with comparable salaries to what they previously earned.

They would, in effect, be mortgaging their future earnings to meet their present commitments. This measure is financially sound because we know the Nation will not let this reservoir of talent remain unem

ployed. As a whole, this group must return to work, and its members will once again earn high salaries.

Through programs like these, the Nation can assure that its real priorities are translated into practical results. Thus, the new cities program can serve as the dramatic focus for science in the decade of the seventies, in much the same way as the space program did in the decade of the sixties. But the results will be of direct benefit to all our citizens here and now; not at some distant future date.

It is my strong conviction that the present crisis can be turned to good advantage. For the first time in history, the Nation has a vast surplus of unused technical talent which can and must be put to work. If we see our economic adversity and the problems of our cities as a social opportunity and technical challenge, if we seize that opportunity and meet that challenge, we can redirect our extraordinary scientific imagination and talents to the real problems confronting us. In doing so, we can resolve the crisis of the cities, restore the integrity of the environment, and significantly enhance the quality of our lives.

The hearings this morning are intended to show the magnitude of the problem. In particular, we want to explore its human dimensions, and we have asked several unemployed engineers from different parts of the country-my own State of Massachusetts, California, Seattle, New Jersey-to come here today and help us understand the human impact. Here are individuals who have demonstrated accomplishments over the years, and have lost their jobs through no fault of their own. What difficulties have they encountered? What potential do they have to contribute to the country's present problems?

(The text of S. 32, the amendment thereto, and S. 1261 referred to follow:)

92D CONGRESS 1ST SESSION

S. 32

IN THE SENATE OF THE UNITED STATES

JANUARY 25, 1971

Mr. KENNEDY (for himself, Mr. ANDERSON, Mr. CRANSTON, Mr. GRAVEL, Mr. HOLLINGS, Mr. HUMPHREY, Mr. INOUYE, Mr. MCGOVERN, Mr. MONDALE, Mr. MONTOYA, Mr. Moss, Mr. PASTORE, Mr. RANDOLPH, Mr. STEVENS, and Mr. TUNNEY) introduced the following bill; which was read twice and referred to the Committee on Labor and Public Welfare

A BILL

To authorize the National Science Foundation to conduct research, education, and assistance programs to prepare the country for conversion from defense to civilian, socially oriented research and development activities, and for other purposes.

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Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 3 That this Act may be cited as the "Conversion Research,

4 Education, and Assistance Act of 1971".

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DECLARATION OF POLICY

SEC. 2. (a) The Congress hereby finds that

(1) further declines in defense spending are likely

because of diminished involvement in Indochina and

reductions in other defense programs, resulting from pressing domestic needs and shifting national policies;

(2) to forestall and reduce unemployment and the related waste of national talent and resources, it is essential that the Federal Government take effective steps now to assist in the conversion of defense-related activ

ities to civilian-related activities;

(3) since a substantial segment of the defense effort nology, especially in the education of scientists, engineering, it is imperative that Federal conversion programs not only encompass industrial production, but also place sufficient emphasis on the conversion of scientific

and technical resources;

(4) the Federal investment in science and technology, especially in the education of scientists, engineers, and technicians, constitutes one of the Nation's

most valuable resources, which is a prerequisite for America's continued progress in the future; and

(5) in these times of deepening concern over our domestic crises, it is essential that this vast potential of

United States science and technology be converted not

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simply to serve civilian, consumer ends, but that it be specifically aimed at aiding in the resolution of our besetting social ills; science must serve society in coping with problems such as unemployment, poverty, crime,

racism, pollution, nutrition, housing, health care, transportation, education, and the alienation of youth.

(b) Accordingly, the Congress declares that it is the 8 continuing policy and responsibility of the Federal Govern 9 ment to take appropriate measures directed toward achieving 10 the following goals:

(1) scientists, engineers, and technicians must have continuing opportunities for socially useful employment in positions commensurate with their professional, tech

nical capabilities;

(2) the total Federal investment in science and technology must be raised to an adequate annual ex

penditure level, and then continue to grow annually at

least proportionally to the growth in the gross national product;

(3) Federal obligations for civilian-oriented research and development activities must be increased so as to reach a level of parity with Federal obligations for defense research and development activities, whereupon the level of parity must be maintained or