The Press SATURDAY, JANUARY 31, 1970. Mr Nixon’s Problem

Press, Volume CX, Issue 32210, 31 January 1970, Page 10

The Press SATURDAY, JANUARY 31, 1970. Mr Nixon’s Problem

President Nixon’s veto on the appropriations bill for the Departments of Labour, Health, Education and Welfare caused no surprise. Mr Nixon told Congress formally in December that he would veto the bill, requiring appropriations amounting to nearly $20,000 million, after Congress had added more than $lOOO million to his Budget figure. He gave warning again, in his recent State of the Union message, that he would insist on string'nt economies to check inflation. His aim, he said, would be to present a balanced Budget for the 1971 fiscal year, beginning on July 1, and to cut spending drastically for the remainder of the current fiscal year. It was a considerable achievement for Mr Nixon to win endorsement for his veto by the required two-thirds majority from a largely hostile Congress. To do so he had to secure the support of 35 Democrats, the majority party in both the House of Representatives and the Senate. What the reaction throughout the electorate will be remains to be seen. In the political field Mr Nixon will now hope that the election next November will give him a better balanced Congress. If he is to win a majority and get Congress working behind him he will need a gain of at least 29 seats in the House of Representatives—by no means an easy tas'k, especially as new and competent Republican candidates would have to be found. So far, his party organisers have had little success in their search for new talent. In the Senate the outlook is thought to be better; on| Republican calculations there are at least 10 Demo-, 1 <rats who could be unseated.

If the Republicans do not win enough seats in the House in November Mr Nixon will have to complete his first presidential term depending on substantial Democratic support for the reforms he hopes to put forward. It is clear in any case that he will have to ask Congress for higher and new taxes, including excise duties on liquor, tobacco and possibly petrol. If he can cut defence spending his task could be made easier. But there are other directions in which expenditure must rise, especially in the fields of welfare and education, and in the fight against environmental pollution, to which the Administration is pledged.

The welfare proposals may prove to be the most controversial area of debate, especially the guarantee of a minimum annual income of $l6OO for poor families, including the so-called “working poor". Many Democrats think that the limit should be set higher than 81600. Restriction of the economy, also, will tend to increase unemployment The Boeing Corporation has already said that some 18,000 workers in the Seattle area will be laid off this year. All in all there are tough problems ahead. Mr Nixon well knows the fight Mr Wilson has had in Britain to enforce austerity in the past two years. His own experience may be not dissimilar.