Press releases (File 1), 1970

              For Release After 6.30 &.M.
Monday May 18, 1970 for
Monday,P.M. papers.
Senator William Proxmire (D-Wis.) in a speech prepared for delivery
face up to the economic consequences of the Cambodian-Vietnam War,
Z>The
\
and budgetary impacts of the escalation in Cambodia will be negligible,
 w	
are impossible to accept." ;	
The
Assurrances of the Secretary of theTreasury that the economic
Wisconsin Senator pointed out that "The Same thing was said when
the Veitnam War was escalated in the I960's.As a result, we incurred
a $25.2 billion defiflicit in fiscal year 1968. Let us not make
the same mistake again."
"Because of some increase^in domestic costs and a sharp fall-ofJ
budget
in corporate profits, the smalle stimatod fiscal year ±9?fi 1971
surplus has dsappeared even before l$x£ fiscal year 1971
ftxx.
jhose causes alone
Lone
has begun. Unofficial estimates are that the deficit/will run ashigh
as $5 billion©" ^
If there will be a deficit,
Whifle the Administration has acknowledge that f4»i*yir:bhey have
stubbornly and foolishly refused to admit that there will ba aUdJ&***
increases in spending because of theCarabodian War, That is merely
putting their heads in the sand.'
Proxmire said "There is only one way to meet what is bound to be
a very large fiscal^ year 1971 deficit. That way is to cut spending
And the only area where spedning can be cut and cut decisevely is
the $75 billion ongoing, regular, military budget.