8- pressed to expand our non-defense industries in a stagnant national economy. A factor that will help sustain the California economy is the increasing role of services, both public and private, and here indeed may be the major source of increased civilian employment in the decade ahead. While I hesitate to mention the name in this company, the Stanford Research Institute in a Report on California's Economy - 1947 to 1980, concluded that distribution and services would account for 47. 2% of the increased employment from 1957 to 1970 and that added government employees would raise this to 64. 8% or almost two-thirds of the projected increase in employment. This same study, because it was unable to find any large industry that would fill the growth-generating role played by the defense industries in the 1950's, concluded that the state's growth rate would decrease to 2. 3% in the 1960's. Such a reduction in our growth rate would result in a 1970 population on the order of 19 million Californians, a relatively pessimistic forecast. This is in spite of the fact that a basic assumption of the study was a 25% increase in constant dollar national defense spending from 1961 to 1970. At the other extreme a simple projection of the growth rate of the last decade would find us in 1970 with a population of 23. 3 million people and this would require some 8. 7 million jobs, or 2-1/2 million more than we now have. This would necessitate the creation of 300, 000 jobs a year against our present rate of job creation of 125, 000 jobs annually.