11- would be geared more nearly to the natural population increase which has provided less than 1/2 the total in the past. The situation will be compounded if we are unrealistic in our long-range planning and overexpand in expectation of a population increase that does not materialize. Unsound planning and unwise expansion will not serve our best interests in the long run. So we find ourselves today in California with a growth rate recently generated by a rapidly expanded defense industry, and we are faced with the prospect of a slowing down in that growth rate unless we can find other industries that will provide new jobs in sufficient quantity to do in the years ahead what defense has done in the past decade. There are some who may say the picture painted here is that of a pessimist. If so, it's a pessimist whose firm has many millions of dollars invested in California real estate because it believes in the future of California. Others may argue that no good purpose is served in calling attention to the problems of California in public forums of this type. With this I take sharp exception, for problems are not solved by pretending they do not exist. The first step in the solution of a problem is to define it, and this I have attempted in some measure to do here. Let us state it this way - How can we create jobs in sufficient quantity in industries other than defense to maintain growth in California at a healthy rate ? I wish that I could at the same time offer you a pat solution, but this