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Increasingly antagonistic to the Secretary and apparently determined to run U.S. foreign policy. Congress cut off military aid to Turkey and to anti-Communist forces in Angola. Kissinger and CIA Director William Colby, who was later dismissed by Ford, were hounded by Democratic-led congressional committees trying to expose covert U.S. intelligence operations. Day after day, Frank Church's Senate committee forced Colby to divulge information about past operations, in a spectacle that was intensely damaging to the U.S. position in the world. But Kissinger scored a notable success in September when his much derided shuttle diplomacy, after months of patient effort, culminated in a historic agreement between Egypt and Israel. The President still seemed to give his policies solid support and, despite congressional hostility, Kissinger was admired and welcomed during his several forays into the American heartland.
The United Nations had never seen a U.S. ambassador like Daniel Patrick Moynihan, who had long urged the nation's leaders to start talking back to America's detractors. He made more enemies than friends at the U.N. as he branded Uganda President Idi Amin a "racist murderer" and blamed other African governments for supporting him. Moynihan was equally vehement when he denounced the resolution equating Zionism with racism as "infamous." Soon after he threatened to resign because he did not think he was getting proper support from the State Department. Ford, who could scarcely afford more turmoil in his Administration, had to support Moynihan. Moreover, Moynihan's outspokenness won him a large following in the U.S. and a possible base for whatever political ambitions he may entertain.
Treasury Secretary William Simon was a principal author of the Administration's economic policy of curtailing spending to combat inflation. It was a role that could give him some satisfaction as the year ended. The U.S. was recovering from its most severe postwar recession, and the rate of inflation had been cut to 7.3% from 12.2% in 1974. Consistent with his conservative views, Simon had been the strongest counsel in the Administration against federal aid to New York City. Under political pressure, he was forced to moderate his position, but not before the near bankrupt city adopted more prudent fiscal policies.
New York's Governor Hugh Carey was put to a stern test—and he passed with generally high marks. With New York City on the brink and unable to govern itself, he reluctantly took charge and assembled a group of businessmen, financiers and public officials to overhaul the city's spending practices and devise a rescue plan. For all the unpopular actions he was forced to take—cutting spending, raising taxes—he won respect by making hard choices with an even temper. But his record was somewhat blemished at year's end when he abruptly fired Maurice Nadjari, the special prosecutor appointed to ferret out corruption in the criminal justice system (see THE NATION).