Pre-press Conference The economy will probably again be the biggest single item, and the President referred to Ward Canaday's proposition that excise tax on automobiles be eliminated until Jan. 1, 1959. He said it wasn't that simple, other excise taxes such as refrigerators would have to be eliminated. Furthermore he doubts that the elimination of such a tax -- a saving of $200 to $300 per individual who buys a car -~ will spur the market as much as some people believe. Defense Department supplemental. No announcement will be made, The President pleased that he got them to reduce it by 2 million. Defense Department Reorganizaton, The President said there is no such thing any more as a separate Navy, Army or Air Force because strategic planning must consider all factors of defense -- that means unified operation and planning, under the responsibility of the Defense Secretary. On top of this the Defense Department has to have proper weapons, which goes back to research and development, which must always be related to unified military measures. Governor Adams suggested that the President explain all this in "ordinary terminology." Space Organization. Message being sent to the Congress today. Basic . research is to be under civilian authority outside of the Department of Defense. REPRODUCED AT THE DWIGATD. EISENHOWER LIBRARY Testing of Weapons. Referred to the Secretary& statement at his press conference yesterday. The United States position is that we could not consider suspension of testing as a purely propaganda measure at the risk of the security of the nation. We have already announced tests to be conducted this summer -- months in advance. Proposals made to the Soviets -- list of 17 prepared -- is there any way to get them into the newspapers? On all of these we have taken the initiative, but somehow when the Soviets make any proposals this is big news. Testing is tied in with production and inspection; our position is that we will stop testing when production is stopped and inspection initiated.

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