President Smith got the Congress to pass the first National Highway Bill and a Public Health Service Administration Act. The President met former Hawaiian Prime Minister George W Kamehameha and his family in California. The former Prime Minister was in California on foundation business. The two got along quite well talking about the economy and Hawaiian investments in the US.
President Smith decided to tackle the important job of improving the transportation system of the United States. It was to be a massive project which would upgrade and improve the Roads and rail system in the country. The economy which had slid into recession received a massive shot in the arm as Highway and tunnels were now started. Unemployment dropped and the country began to recover. For the President his highest priority was domestic affairs. He wanted to firmly push the country out of an attitude that the Fall had done too much damage and one could not do this or that. Presidents Theodore Roosevelt and Pershing had proved that the country could be put on a path to improve standards of living. The President wanted to work with his neighbors Canada and Mexico. He also realized that Hawaii had invested a lot in the US. Hawaiians now owed 75 Percent of Curtis Aircraft and were involved with other companies.
President Alfred E Smith continued to push transportation and he also invited Hawaii's new Prime Minister to the United States for talks regarding Hawaiian companies investing in a lot of military projects made by American companies. The Hawaiian had now bought up 25 % of the Stock of Grumman .
The Royal Hawaiian Aviation Corporation had come into being in 1911, it had been formed by a number of Hawaiian businessmen and some Politicians who could see that the future would eventually see the end of the airship as a means of rapid transportation became more of a possibility. While some favored investment in British Companies the late Prime Minister William Kamehameha saw more possibility in the United States. America was still recovering from the Fall and it had space to develop industries. Eventually as time passed the RHAC invested in American companies buying 75 % of the stock of Curtis Aircraft company. It also acquired 25 % of Grumman Aircraft Company and 15% of the Douglas Company.
Hawaiian investments resulted in more capital being available for Higher quality. Curtis sold the P-36 to the Royal Hawaiian Air Force and eventually the P-40. The Royal Hawaiian Navy liked the designs of the Grumman Corp for its Naval Aircraft and the Hawaiian Investments allowed the company to build modern production facilities and eventually the US Navy also expressed interest in buy planes.
It was this that President Smith wanted to talk with the Hawaiian Prime Minister.
Talks between the American President and the Hawaiian leader ironed out a lot of the differences and misunderstandings between the two countries. The Hawaiians agreed not to continue buying up American companies Curtis-Hawaiian Aviation was owed by stockholders of whom the Hawaiians held 75% of the stock. The Hawaiians were providing funding for research and development of new aircraft.
President Smith got the Congress to agree to fund the Commonwealth of Nations Project with a contribution of $12,500,000 but with the election of a Nationalist Party dominated Congress it was unlikely to come anywhere near that amount in the next year. Canada gave $500,000 and Mexico $125,000
President Alfred E Smith had announced in November 1939 that he would not seek another term as President. There were a number of people seeking the nomination to replace him including Franklin D Roosevelt,who had served as his Secretary of the Navy. On the Nationalist side there was Governor Theodore Roosevelt II, Governor Al Landon of Kansas and several others. By May 1940 Governor Roosevelt of NY looked to be the clear favorite and he reached out to pick the Senator from Ohio Robert F Taft as his running mate.. Taft had been endorsed by both the Republican and Nationalist parties when he ran for the Senate.
President Theodore Roosevelt II was at the opening of the Commonwealth of Nations Complex he delivered a brief speech thanking the late Austrian Emperor and the former Hawaiian Prime Minister for there support in getting the complex built
The Karl Hapsburg building was dedicated by the late Austrian Emperor's second son.
The American President signed an agreement with the Canadian Prime Minister to work on a project which would open the St Lawrence River and eventually the Great lakes to sea traffic. It was part of what was called Hands across the border designed to improve both countries trade and infrastructure. He also reached out to Prime Minister Juan Valdez of Mexico to fund some projects which would improve conditions in the Southwest and Northern Mexico. The President was to meet with the rulers of Neuva Granada and the Central American Republic.
President Theodore Roosevelt II pushed through the Border protection act of 1943. It improved the border defenses with Mexico some of which dated from the late 1880s. The Rio Grande River had been widen and made so that ships could travel up to 90 miles from the Gulf coast . Some lakes were created.
President Theodore Roosevelt II and his running mate Robert F Taft were re-elected to a second term. They had been endorsed by both the Nationalist and Republican Parties. The President's Party controlled both the Senate and the House.
The President sought an agreement with Mexico that would end problems regarding border crossings He also wanted to spur economic growth in both countries and continue co-operation between the two Nations. He had also turned his attention to the northern border region. He wanted to help redevelope the Great Lakes Economic Zone in co-operation with Canada. He had first tackled the problem when he was governor of New York.