-2might strike a note in the broadest terms for development in the area. The President said he had to be careful, only this morning in a cable from Dulles, the Secretary had reported that South America felt that He said you had to say it had a priority on funds for development. that our real program is to develop confidence of nations to stand on their own feet economically and to bring about a rise in living standards. We welcome achievement We have no objection to nationalism per se. of constructive forms of nationalism. If questions of what plans we have for Mid East, Herter suggests we say we have proposals and they are being worked on right now. President's health -- British papers have been saying he could not\3 engage in ''rough and tumble " with Khrushchev. Nuclear blasts -- President was reminded. Also reminded of announcement by State Department of cancellation of clean bomb tests (scientists would be able to get information from laboratory). Economy . The President plans to take a minute off to show how inflation robbs the small income fellow -- it robs the laborer whose whole reward is his pension. REPRODUCED AT THE DWIGHTD. EISENHOWER LIBRARY Steel prices ~~ letter to Kefauver. The Senator has been calling for a conference to discuss this matter; the President is constitutionally opposed to a conference, He reminded audience that Truman called such a conference on that subject which was a free for all, and ended in Truman seizing the steel mills. We are working constantly on the prolbem; hopeful of getting objective study (such as Arden House would make). The President conceded a conference might dramatize the whole thing, but that was all he could see as a benefit. We welcome any specific constructive suggestions. Integration «= the President was reminded that Congressman Broyhill hasbeen pushing for meeting between Governor of Virginia and the President on Virginia's fall problem, The President said that he gets very angry about the refusal of the North to see how deeply the people of the South feel on the subject. James Roosevelt wrote the President (apparently some time ago) asking if he had any program for averting or acting if clashes occurred this fall. The President reminded the group that it was his responsibility not to keep order anywhere, but only to see that the orders of a Federal judge are carried out. In Arlington County there is a Federal court order to integrate; the State law says that if integrated

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