The MacNeil/Lehrer Report; President Ford in Ann Arbor

ROBERT MacNEIL: Good evening. President Ford and Jimmy Carter both scheduled appearances at an Italian-American dinner tonight to cap a day in which both campaigns wooed the so-called "ethnic voters." During the day Jimmy Carter attacked Mr. Ford`s campaign kick-off speech last night, saying the President was now endorsing policies he had previously vetoed. But Mr. Ford appeared buoyed by his appearance at the University of Michigan, his alma mater, last night, where the speech outlining Ford`s vision of America was greeted by boos as well as cheers. There were a few who didn`t agree, Mr. Ford said today, but overall it was very good. The whole event chosen for Mr. Ford`s first admitted campaign event was contrived as a homecoming because some of his advisors say voters don`t have as concrete an image of his origins as they do of Carter`s. So, last night Mr. Ford was seen returning to his roots, a college where he was the reigning football star 40 years ago. There was a dinner at the training table with the Michigan football team, and a meeting with members of his old honor society. (Sounds of "Star-Spangled Banner.") And then, after the welcoming to the rally, the Wolverine fight song. (Playing.)

JIM LEHRER: The President`s speech was an appeal to middle class Americans in their traditional concerns: jobs, homes, health and peace. He also took out after Jimmy Carter in Carter`s basic theme of trust. Now, many of you have probably already read, seen or heard brief news accounts of the speech itself and you also know that there were a lot of boos from the audience as well as cheers, and that a firecracker went off. Well, as part of our commitment to make available fuller coverage of this campaign`s major speeches we are now going to run a large portion of it. The President spoke for 32 minutes; our edited version constitutes just over half of that time, cheers, boos, firecracker and all. Afterward Robin and I will be back to talk with one of the key Ford campaign officials about it. First, the speech:

GERALD FORD: I`ve come home to Michigan to share with you my views of America in 1976, and my hopes for America in the next four years and beyond. In 200 years as a free people, much has changed in our nation but America`s basic goals remain the same: Americans want a job with a good future; Americans want homes and decent neighborhoods, and schools where our children can get a quality education; Americans want physical security -- safety against war and crime, safety against pollution in the water we drink and in the air we breathe. We want medical and hospital care when we are sick at costs that will not wipe out our savings.

We want the time and opportunity to enlarge our experience through recreation and travel. We Americans are proud people. (Cheers from audience.)

We cherish our inalienable rights -- the right to speak our minds, the right to choose the men and women who enact and enforce our laws, the right to stand equal before the law regardless of sex, age, race or religion... (Boos from audience.) ... the right as a farmer, businessman or worker and consumer to bargain freely in the economic marketplace, the right to worship as we choose. (Applause.)

It all adds up to the great American dream.

And so the question in this campaign of 1976 is not who has the better vision of America; the question is who will act to make that vision a reality. (Cheers and applause.)

The American people are ready for the truth, simply spoken, about what government can do for them and what it cannot and what it should not do. They will demand performance, not promises; specifics, not smiles. (Cheers and boos.) There are some in this political year who claim that more government, more spending, more taxes and more control on our lives will solve our problems. More government is not the solution -- better government is. (Cheers.)

It is time we thought of new ways to make government a capable servant and not a meddling master. Let`s get down to cases -- let`s talk about jobs. (Cheers.)

Today 88 million Americans are gainfully employed, more than ever before in American history.(Cheers and boos.) But that`s not good enough. My immediate goal is two and a half million new jobs every year, with emphasis on youth, especially the minority. (Cheers.) And I don`t mean demeaning, dead-end jobs paid for out of the federal treasury, but permanent jobs, with a future generated by the demands of a healthy economy.(Cheers.) Let`s put America -- all of America -- to work.

Once a good job is secured, it`s an American tradition to put some of those earnings toward a family home; but nowadays with interest rates too high, down payments too high, and even monthly payments too high, home ownership is not within the reach of many Americans, particularly young Americans beginning a career or marriage. My goal is home ownership for every American family that wants to own a home and is willing to work for and save for it. (Cheers and applause.)

Here`s hove I will meet that goal. First, I will continue to pursue economic policy, including tight control of unnecessary federal spending, which will hold inflation down, reduce interest rates, cut your taxes, increasing your purchasing power and making more funds available for home mortgages. Second, it is time we did something more about the down payment requirements which so-many people can`t afford. I will recommend changes in FHA law to reduce down payments on lower- and middle-priced homes by up to 50 percent. (Cheers.) Third, I will direct the Department of Housing and Urban Development to accelerate implementation of a new federal guarantee program to lower monthly payments in the early years of home ownership and gradually increase them as the family income goes up. (Applause.)

A good job, a good home; now let`s talk about the good health we must have to appreciate both. My goal in America, where health care is not only the best in the world but is both accessible and affordable. (Boos.) But raising federal taxes by $70 billion a year for a government-dominated health insurance program is not the way to do it. (Cheers and boos.) That path leads to more bureaucracy, more fraud, more taxes and second-class medical care.

That`s what I`m against; here`s what I`m for: As our first priority I have recommended protection against the costs of a catastrophic or prolonged illness for the aged and the disabled, ensuring that never again will they have to pay more than $750 a year for medical care. People should not have to go broke to get well. (Applause.) Next, I proposed to the Congress last spring a major reform in federal health programs; we should combine 16 overlapping and confused federal health programs, including the scandal- ridden Medicaid program,.-into one $10 billion program that distributes the federal funds more equitably among the states and ensures that those who need these services get first-class care. (Cheers.) It`s sad but true - America is still awaiting action by the Congress on this urgently needed legislation. Today, America enjoys the most precious gift of all: we are at peace.(Cheers.) No Americans are in combat anywhere on the Earth, and none are being drafted; and I will keep it that way. (Cheers, interspersed with "We want Carter:")

We will be as strong as we need to be to keep the peace, to deter aggression and to protect our national security.(Boos.) But if our foreign policy is to have public support it must represent the moral values of the American people. (Applause.) What is more moral than peace with freedom and security in the United States? (Cheers.) Now, in the face of a new challenge, we are on a mission for peace in southern Africa. This is the first administration in America`s history to develop a comprehensive, affirmative African policy. This policy has won respect and trust on that troubled continent. (Boos.) At my direction, Secretary Kissinger is note engaged... (Boos.)... in an intensive effort...(Boos getting louder.) ... in an intensive effort to help all the parties, black and white, involved in the mounting crisis in southern Africa to find a peaceful and just solution to their many and complex differences. Despite the rigors of a great national election, I have persisted in carrying out this new policy towards Africa, not because it is expedient, but because it is right. (Cheering.)

I pledge to you that under my administration American foreign policy will serve the interests of our country and our people; it will be true to our great heritage of the past, fulfill our purposes in the present and contribute to our best vision of the future. It`s not enough for anyone to say, "Trust me;" trust must be earned. (Cheering.) Trust is not having to guess what a candidate (Firecracker.) means; trust is leveling with the people before the election about what you,-Ire going to do after the election. Trust is not being all things to all people, but being the same thing to all people. (Applause.)Trust is not cleverly shading words so that each separate audience can hear what it wants to hear, but saying plainly and simply what you mean and meaning what you say. (Cheers and applause.)

In this year of 1976 I stand before you as the last President of America`s first 200 years; but with your help I also intend to be the first president of Ameri ca`s new generation of freedom. (Boos and cheers.) And when the history of this great era is written, future generations will look back at America in 1976 and say, "Yes, they were 200 years old, but they had really only just begun." Thank you very much. (Cheering and booing.)

LEHRER: Thus -- to the tune of the Wolverine fight song, Mr. and Mrs. Ford leave the arena there at the University of Michigan, where the President delivered his first major campaign speech of this campaign. With me now is Elly Peterson, who is a deputy chairman of the President Ford Committee. Her main job is to organize special voter groups for Mr. Ford, everyone from senior citizens and youth to minorities, labor, farmers and veterans. Like the President, her roots are also in Michigan, where she served four years as state chairman of the Republican party. First, Mrs. Peterson, about the boos: In retrospect, was it a tactical error to choose a college campus for his first major campaign speech? Even in the best of circumstances, even in Michigan, students can always be expected to do some booing.

ELLY PETERSON: That`s right. No, I don`t think it was a tactical error, because in the first place it was not a contrived appearance in that you could put the people together that you wan ted and have it just exactly, with everybody clapping on cue the way it has been done. I liked it this way. I thought it prepared him for the campaign; I think it gave him an idea. He was perfectly at ease -- at no time did they upset him -- and actually, it was interesting when you watched them to see their reaction to certain portions of the speech.

LEHRER: Of course, you were there last night; the boos didn`t concern you at all?

PETERSON: Well, they always concern you; I suppose when you are organizing for a campaign, you`d like to think you had the Eisenhower days, when everybody was for your candidate. But it was not surprising, and actually it was -- out of the 14,000 people there -- I thought a relatively small segment.

LEHRER: Alright. Before the speech there were some broad hints, even from the President himself that the speech would contain some surprises, some bombshells, so to speak; what were they?

PETERSON: I think he was speaking in terms of what he hopes to do with America. I don`t know that the "bombshell" would be the word I would use. But I thought that the speech was pure Jerry Ford in the way that he looks at America and what he wants for Americans.

LEHRER: You know, Jimmy Carter, throughout this campaign and all his talks, always talks about the Democratic party. But I noticed, interestingly enough, that the President never mentioned the word "Republican." Why not?

PETERSON: Well, I don`t think a President should. I think Jimmy Carter is running as a Democratic candidate, and I`m sure that he`s trying to point out the fact that he is the one he`d like the Democrats to vote for, because they`ve got three. After all, there are Democrats who are going to vote for McCarthy and there are many, I`m sure, in the South that will be for Mr. Maddox. He has a totally different problem; and I would like to think that Mr. Ford would appeal to more than the Republican party, or we wouldn`t win the election.

LEHRER: His pitch was so directed at the middle class last night of Americans that you don`t think that by not mentioning the Republican party that maybe he was trying to shift the image and say, "Look, I`m not part of the Republican party, with its image of being just the rich-man`s party, and all that sort of thing"?

PETERSON: I really don`t think he`s that devious. I think he felt this was the best blueprint for America; I think he felt that our source of strength was through middle America, and I didn`t really think about it in those terms but I don`t believe that that was his thought at all.

LEHRER: You don`t think he`s ashamed of being a Republican?

PETERSON: No, I don`t think so.

LEHRER: Thank you. Robin?

MacNEIL: Ms. Peterson, a lot of Ford advisors did a lot of talking about that speech before it happened. I`d just like to mention three things and see what you thought about them. John Dierdorf, who`s managing the advertising campaign, said that it was designed to give him a homecoming sense because voters had a better sense of who Carter is and where he comes from than they have of Ford -- that`s one thing that was said. Other Ford advisors were quoted by the New York Times yesterday morning as saying the speech was designed to fill what they thought was a lack of vision in the voters` minds; they didn`t see what Ford`s vision for the country was; and other advisors were quoted by the Associated Press yesterday as telling reporters it was intended to refute the notion that Mr. Ford lacks the intellect to lead the nation. Now, I`m quoting three different things that appeared in the press yesterday. Obviously they came from some mouth somewhere in the Ford camp. I`m just wondering -- isn`t that a pretty devastating catalogue of weaknesses for Ford aides to be talking about on the eve of his speech and relying on that one speech to correct them all?

PETERSON: I couldn`t agree with you more. I find it very strange that aides would talk in those terms. I myself feel that the President went back to Michigan because it was his home state and because the people of Michigan have given him great strength, both in his ordinary life that he`s lived to date and in the fact that they helped him in the primary. To- me it was a natural place for him to go. But I think sometimes the media really have to worry about what was meant by it, and I just don`t feel those things were read into it by the average person that was there or that listened to it.

MacNEIL: It makes the Ford campaign staff sound a bit worried about their candidate. Do you think they are, a bit?

PETERSON: I think anybody that`s in an election campaign that isn`t worried is a bit of a fool, I` think, myself. Naturally we`re worried -- we`re behind, and if you`re not worried you`re not going to generate some enthusiasm. But worried about the candidate as far as his ability and as far as his winning, no, I don`t think so.

MacNEIL: Thank you. Jim?

LEHRER: Were you surprised at the negative reaction when the name Kissinger was mentioned last night?

PETERSON: I was in that group; I do-hear that from -- I call them middle Europeans -- the captive nations group; they are most upset, and of course they still have their dream of returning to their countries. I was amazed at it on the college campus because he is so well received at the times that he meets with young people -- and that was really all I had to go by. But -- I don`t know -- they booed in such strange places. For example, just before he mentioned Africa, a group of them stood up and yelled, "What about Africa?" And then he spoke about it, and then they were sort of stunned because it came right into the speech. So I`m never quite sure when people are there to boo whether they`re really booing what he says or because it`s sort of the spirit of the occasion.

LEHRER: Your major responsibility, as I said in introducing you, is to get the various diverse organized groups to support the President; where are his major problems in these various organized groups as you would see them, and did this speech last night really speak to their concerns?

PETERSON: The major problem that we have at the moment, I feel, is the fact that as a party we have a very low base, percentage-wise, of people. So actually our problem is nation-wide and cuts across all classes and levels. I would say that the strongest support the President has is going to come from women and young people -- they are rallying to his cause. But when you go by the classifications of people, I would imagine we will have problems within the city because Republicans have traditionally had parties within the city.

LEHRER: Robin?

MacNEIL: Just briefly, Ms. Peterson, in conclusion, Jimmy Carter said today that Mr. Ford seemed now to be adopting policies that he has previously vetoed, and he mentioned the President having to be kind of pushed by Congress after vetoing the bill last year that would have subsidized interest on housing mortgages.

The President is now coming out fuller for more subsidies on housing mortgages. Is it true that-he`s now coming around to things that he previously was against?

PETERSON: The first thing I think we ought to find out is what Mr. Carter says tomorrow before we judge it, because it`s pretty hard to catch up with him. I do think the President does feel that it`s a problem today with middle America in their homes and in their education and paying their bills. And I think that`s what he addressed himself to.

MacNEIL: I`m sorry Ms. Peterson, we have to leave it there. Thank you. Thank you, Jim. Jim Lehrer and I will be back tomorrow evening. I`m Robert MacNeil, Good night.