Gertrude Stein said about New York City, "the problem when you go there is there's no there there." So what's really there in New York City? Is the crisis over? And would you please reconcile your support and endorsement of free enterprise with your request for federal assistance to New York City and Lockheed Corporation.

You started out this question by quoting Gertrude Stein, which is very impressive. I would like to counter with another Gertrude Stein quote. When she was dying and her companion, Alice B. Toklas, leaned over the bed and said, "What is the answer?" Gertrude Stein looked up at her and said, "What is the question?"

Do you want me to rephrase my question, Walt?

No. I understood it. I'll say two or three things. First, as far as the City of New York is concerned, we got into trouble because our hearts were too big, because we perceived the problems of people who flooded into our city and we were too generous. We believed that the people of the City of New York should have a free education. We've got 240,000 of them in the City College of New York. We believed that you should have housing, and we believed that you should have social programs. We got in trouble for none of the usual reasons that you get into financial trouble. We got into trouble because our hearts were bigger than our pocketbooks. Then the thing came apart, when the 1973-75 recession hit. It was like living at a 30,000-foot altitude--any weakness you've got will let go under that kind of pressure. The result was that we all went to work to try to put it back together again.

It was a horrendous job. When you neglect something for that long, it takes a long, long time to build it back. But I'm optimistic that we're going to solve our problems.

As far as the other question is concerned: (a) I did not testify for aid to Lockheed, and (b) I did not ask for federal aid for the City of New York--in fact, I got a few brickbats through my window from some people who thought I should have.

I'm glad you set the record straight. Let me give you one more Gertrude Stein quote. She said, "Money--

You teach somebody to read, and look what happens.

One more thing about New York, then: Is there any future there?

We have a different mood there now. People are holding their heads up a little bit higher. I think we've turned the corner. New York City was a lot of laughs when I was here a few years ago. I was in Cleveland recently-- they're not laughing as hard.