ECONOMIC

or permit incentives—including higher prices—for maximum imports,for maximum domestic exploration and production, and forefficient use of our scarce supplies. To prevent higher prices fromcausing excess profits, I have proposed an Emergency WindfallProfits Tax, which I urge the Congress to enact promptly.6. We will work with other oil-importing countries to prevent thehigher prices of oil and its limited supply from generating a downwardspiral of recession. The higher prices will cause dislocationsand impose burdens on all consuming countries; they do not haveto cause a spreading recession if we manage our affairs cooperativelyand wisely.7. We will continue our policy of maximum agricultural productionto help hold down food prices.8. We will continue our policy of progressive removal of price andwage controls in order to restore the flexibility needed for efficiencyand expansion in a time of economic strain.The effort to maintain the stability of our economy in the face of thepresent unusual conditions will absorb a great deal of attention this year.But we must not neglect the fundamental factors which determine theprosperity of the American people in the longer run. One of these hascome to general public attention with a rush—the need for adequatesupplies of energy at reasonable cost. We are seeing the possible consequencesof being deprived of these, and we must not allow it.The energy problem has had two main parts for some time:First, with rapidly rising world demand for energy, most of whichcomes from depletable resources, we could run into sharply increasingcosts of energy unless vast investments are made in research, development,experimentation, and production.Second, we are exposed to the danger of being thrown back uponinadequate or very expensive sources of energy earlier than necessaryby joint action of a few countries that control a large part of the existinglow-cost reserves of oil.To deal with this problem I began proposing, almost 3 years ago, anumber of governmental measures to permit or assist development ofenergy within the control of the United States. In 1973 the second partof the problem, which had formerly been a threat, became a reality atleast temporarily, and this has demonstrated unmistakably the urgencyof the steps I have recommended.I propose that the United States should commit itself to "ProjectIndependence" to develop the capacity for self-sufficiency in energy suppliesat reasonable cost. One key element of Project Independence is a