 right behind us. Well, I just I didn't want to say good morning down and seeing this and hearing about this construction. Of course, you all know that the reason you're coming here is that in this industry and the housing into the United States has to come back. And there's more going on here than higher percentage than any place else. And it's this is an industry that can cause a depression. Things are bad all by itself. But it's also an industry that can lead as this one has been leading in a recovery from the recession that we've had. And I just have to say here, I don't know exactly when I'll be in the market several years, could be next year. I've been marching with great care because I'll probably be in the house market having so what we own to do the change of locale. People that are covering this year, they're all speculating as to what I'm doing on trips like this, why I'm doing this. You know, the truth of the matter is it's just good to get out of Washington every once in a while. I have to tell you, I'm so pleased about the recovery that we have and what has happened with this industry in the last three months restored that probably is more prevalent here than any other country in the world. And that is everyone's dream of wanting to own their own piece of ground in their own house. I have a little confession to make to you also. I was sort of in this business from hammer and nail side and thick shovel side. The first jobs I ever got some jobs was I was 14 years old. And it would have been out with an outset wasn't building new ones, but they were time old for the three months. The floor to the summer was over. I laid hard with floor, I shamed painted. But I do remember also I started some of these houses that they wanted to have basements so forth and didn't have the tools and equipment that we have today as a pick and shovel. And I was on the pick and shovel and I remember one hot day just approaching new ones. And I've been swinging that ticker all day, you know, hard clay and rocks. I had to pick right up over my shoulder ready for another blow when I knew the whistle blows. And I just didn't even finish the blow when I just let go and step out of underneath it. And behind me, I heard some very pain, very firm and not polite conversation came to me and I turned around and there was the boss and the pick was embedded in the ground right between his feet. I didn't have any answer any of the things that he was saying to me. Well, I just again, I just want to come in for a moment. This is a picture of what's happening all over America. You'd be very proud of it. You're out in front. Thank you for letting me come in and start production. Come on, back it up. Man says back up. Let's back up. Come on, all the way back. Ron, you want to do a backshutter over here? Charlie just went the other way. Charlie's behind him, aren't you? No, I think we're all right. Yeah, I'm going to wait till I get one clear. Hey, what's up? AP! AP! We'd like to see a bigger African egg footprint. Yes. Ladies and gentlemen, the President of the United States. Before that, you might like to know what we've been talking about here. The map in front of this topographical map is a new town in this area, about 25 minutes from here, called Laos-Rau Table, because Dallas is the number one city in the country for how we start. And Laos-Galinas is one of the best examples in the country of new home-building development. Oh, that's remarkable. It helps to get a fresh perspective. You know, if you stay in Washington too long, the world begins to look like the Twilight Zone. And I have, as I say, just come from that site in Grand Prairie, and I've been there the most. That is so. It's opportunities for hard work and risk-taking by people as you can flourish. Irresponsible taxing and spending policies in the years prior to this administration gave us. Your industry had its legs knocked down from under it by ruinous inflation and killer interest rates. It takes time to put a program in place, and it takes time for stunt growth last year, which was a robust 6%. And the first quarter growth this year suggests the recovery is going to continue with a healthy rate. But I'm also encouraged by the fact, and this may sound strange, that figures that were released this morning to the Commerce Department suggest that there is building premise, which were only $730,000 in the fall of 81 have risen to nearly $2 million. That's a 166% increase. In February, $721,000. But the strength surging through your industry with the rest of the well-known. Since our economic recovery program took effect, the decline in mortgage rates from a peak of about 18, now 13 and a half, translates into a typical savings of $225 in the month that they remember families that are now buying homes. Inflation has been reduced by as many people suggest that we should be frightened because the economy is growing too fast. Too many people are planning jobs, and this will push up interest rates. Well, no one will ever convince me that economic growth is bad for us. Meanwhile, taxing the money out of the private system will not eliminate money from the private credit market every bit as much as the federal government borrows it. The same amount of money is going to be paid because it doesn't take some taxes program we've begun, which is so long overdue. The answer is economic growth and the responsible program that controls what we've done. We've made a proposal, as you know, for a down payment on the deficit, be a good first step. And yesterday, the Financial Committee on the Center of the Past Act. In 1982, an agreement was made with me that they're going to have to judge for themselves so serious about the problem. I'm willing to do my part, but I will not simply give in to those who would take us back into recession and or play fast and lose for the security of our country and evaluate it through the departments and agencies right now. The potential progress to me, we need commitment from the Congress, which until now has not been forthcoming. Our board of directors last May, home builders are leading the recovery by the sweat of their brow and the strength of their nerve. That is still true today. Last year, we built about 1.7 million thousand units, an increase of 60% from the previous year. This year, we expect to start 1.8 million units. During February, new homes were being started at an annual rate of 2.2 million, and new homes are selling at their fastest pace in four years. Looking back, this recovery represents a major triumph for your administration. You put America back on its feet, you put Americans back to work, you looked inflation and helped create an economic climate in which it was possible for small builders like myself to build affordable housing for young people just starting families in their careers. But the recovery, Mr. President, has reached a critical turning point. Looking ahead and beyond today's robust economic news, there's a great view of uncertainty in the marketplace. This uncertainty has been expressed by the typical member of our association to construct deficits, reduce our ability to compete in the world market and deficits spread to upset the current economic recovery. Mr. President, the time is running out. Do you want to respond or shall I ask the next man to whichever is suitable here. I would like to comment this with regard to the interest rates and what you just said here with regard to the connection to the deficit. I hope I've made clear deficits are something we shouldn't have had over the last 50 years. Saw a great upsurge we've gone from to 12 something percent over about 5 percent of business investment in new land equipment and so forth. And at the same time, so we will not have any gain at all by bringing down the deficit by taxing investment. That's why we're particularly concerned not with what happened in the house as you indicator the increase of the depreciation life or they sell their accelerated cost recovery period going for 15 to 20 years. That's a huge increase. Also end up with about a million fewer rental housing units than we would otherwise. The main sources of financing of all this activity the real estate sales and new home building that we're talking about this morning. We have been in that position of market dominance in the past and despite some of what has been written and said in recent years some of which was just said on my starboard side before you got here this morning. We remain the primary mortgage lending source today. In 1983 we had an all-time record lending year in our institution $137 billion in mortgage loans by savings institutions. What made this volume possible is the increasing acceptance of the adjustable rate mortgage 60 to 60 to 75 percent yet again with higher and higher interest rates and underlying that will Washington be able to get these huge deficits under control. I've managed a small financial institution in the cornfields of Indiana and I talk to men and women every day when I'm in my office and home prices were not spiraling upward as they had been in fact to the surprise of many people of home prices were actually lower our study showed in 1983 than in 1981 that is median prices but we should not be misled by the recent strong showing of housing. Federal borrowing to cover federal spending takes so much of the credit pool the businesses and families are short chained we simply can't bid competitively forward. Now there's not also an important new factor that we're confronting with the deregulation of the rate so we in the savings institutions want to be sure the deficit problem is dealt with now while there is still time to bring it under control. We are hopeful as you are Mr. President and as you have said many times that a non-partisan approach will in fact get something done we're not concerned. I question the deficit as you've heard is a major concern to all of us and especially to the building industry. Virtually aren't any steps that I want to be taken without pointing any particular statement of our society and some of the things that you were saying sir the in this year and I know this before we have to and are looking at the whole structure and I have to say I we're all and should be indebted to Peter Grace and the more than 2000 business and but they came back this idea come to me when I was the first elected governor of California and the state was almost in as bad a shape as the federal government is and only there we had a constitutional requirement that in the first six months that I was in office I had to restore the balance that had been lost in the previous administration out there and I called on business yet the government is going to be serious about keeping inflation down and if I could cite myself as an example again I remember once back in those motion picture days I knew that someday they'd come to an end and I bought a retirement policy and I wanted to think that I could retire and continue to live the same way I was living so I bought the policy on that basis well the policy finally came to the payment date and retirement age and the policy by that time the biggest single enemy at all there is no way that you can have a sound economy where a person is expected to invest or put money away and know that the payoff time the dollar is only going to be worth half what it was or less and when it comes time to pay out so that people with the money to one they're going to have to have more of a guarantee that isn't going to happen again well thank you very much thank you mr. president ladies and gentlemen our foreign ministers are here to sign the science and technology agreement between thailand and the united states and the agreement represents another new area of cooperation and furthers the close ties that historically marked our relationship and with me now is prime minister prem who's visiting here for the second time and we're very pleased to have him here mr. prime minister mr. president mr. secretary this is a good guess the agreement on cooperation in science and technology just concluded constitutes a new dimension in the longest average relationship and cooperation between our two nations as the united states is the world leader in science and technology thailand stands to benefit significantly significantly from the transfer of your ingenuity as a strong and unwavering friend and ally of united states in southeast asia thailand with enhanced prosperity generated by the scientific and technology cooperation with the united states will complement american long-term interest in the region we look forward to an active cooperation in the field of science and technology and this agreement is an important first step in that direction