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diff --git a/5045.txt b/5045.txt new file mode 100644 index 0000000..5f1a7be --- /dev/null +++ b/5045.txt @@ -0,0 +1,5715 @@ +The Project Gutenberg EBook of State of the Union Addresses of Jimmy Carter, by +Jimmy Carter + +This eBook is for the use of anyone anywhere in the United States and most +other parts of the world at no cost and with almost no restrictions +whatsoever. You may copy it, give it away or re-use it under the terms of +the Project Gutenberg License included with this eBook or online at +www.gutenberg.org. If you are not located in the United States, you'll have +to check the laws of the country where you are located before using this ebook. + +Title: State of the Union Addresses of Jimmy Carter + +Author: Jimmy Carter + +Posting Date: November 23, 2014 [EBook #5045] +Release Date: February, 2004 +First Posted: April 11, 2002 +Last Updated: December 16, 2004 + +Language: English + +Character set encoding: ASCII + +*** START OF THIS PROJECT GUTENBERG EBOOK STATE OF THE UNION ADDRESSES *** + + + + +Produced by James Linden. HTML version by Al Haines. + + + + + + + + +State of the Union Addresses of Jimmy Carter + + + +The addresses are separated by three asterisks: *** + +Dates of addresses by Jimmy Carter in this eBook: + + January 19, 1978 + January 25, 1979 + January 21, 1980 + January 16, 1981 + + + +*** + +State of the Union Address +Jimmy Carter +January 19, 1978 + +Two years ago today we had the first caucus in Iowa, and one year ago +tomorrow, I walked from here to the White House to take up the duties of +President of the United States. I didn't know it then when I walked, but +I've been trying to save energy ever since. + +I return tonight to fulfill one of those duties of the Constitution: to +give to the Congress, and to the Nation, information on the state of the +Union. + +Militarily, politically, economically, and in spirit, the state of our +Union is sound. + +We are a great country, a strong country, a vital and dynamic country, and +so we will remain. + +We are a confident people and a hardworking people, a decent and a +compassionate people, and so we will remain. + +I want to speak to you tonight about where we are and where we must go, +about what we have done and what we must do. And I want to pledge to you my +best efforts and ask you to pledge yours. + +Each generation of Americans has to face circumstances not of its own +choosing, but by which its character is measured and its spirit is tested. + +There are times of emergency, when a nation and its leaders must bring +their energies to bear on a single urgent task. That was the duty Abraham +Lincoln faced when our land was torn apart by conflict in the War Between +the States. That was the duty faced by Franklin Roosevelt when he led +America out of an economic depression and again when he led America to +victory in war. + +There are other times when there is no single overwhelming crisis, yet +profound national interests are at stake. + +At such times the risk of inaction can be equally great. It becomes the +task of leaders to call forth the vast and restless energies of our people +to build for the future. + +That is what Harry Truman did in the years after the Second World War, when +we helped Europe and Japan rebuild themselves and secured an international +order that has protected freedom from aggression. + +We live in such times now, and we face such duties. + +We've come through a long period of turmoil and doubt, but we've once again +found our moral course, and with a new spirit, we are striving to express +our best instincts to the rest of the world. + +There is all across our land a growing sense of peace and a sense of common +purpose. This sense of unity cannot be expressed in programs or in +legislation or in dollars. It's an achievement that belongs to every +individual American. This unity ties together, and it towers over all our +efforts here in Washington, and it serves as an inspiring beacon for all of +us who are elected to serve. + +This new atmosphere demands a new spirit, a partnership between those of us +who lead and those who elect. The foundations of this partnership are +truth, the courage to face hard decisions, concern for one another and the +common good over special interests, and a basic faith and trust in the +wisdom and strength and judgment of the American people. + +For the first time in a generation, we are not haunted by a major +international crisis or by domestic turmoil, and we now have a rare and a +priceless opportunity to address persistent problems and burdens which come +to us as a nation, quietly and steadily getting worse over the years. + +As President, I've had to ask you, the Members of Congress, and you, the +American people, to come to grips with some of the most difficult and hard +questions facing our society. + +We must make a maximum effort, because if we do not aim for the best, we +are very likely to achieve little. I see no benefit to the country if we +delay, because the problems will only get worse. + +We need patience and good will, but we really need to realize that there is +a limit to the role and the function of government. Government cannot solve +our problems, it can't set our goals, it cannot define our vision. +Government cannot eliminate poverty or provide a bountiful economy or +reduce inflation or save our cities or cure illiteracy or provide energy. +And government cannot mandate goodness. Only a true partnership between +government and the people can ever hope to reach these goals. + +Those of us who govern can sometimes inspire, and we can identify needs and +marshal resources, but we simply cannot be the managers of everything and +everybody. + +We here in Washington must move away from crisis management, and we must +establish clear goals for the future, immediate and the distant future, +which will let us work together and not in conflict. Never again should we +neglect a growing crisis like the shortage of energy, where further delay +will only lead to more harsh and painful solutions. + +Every day we spend more than $120 million for foreign oil. This slows our +economic growth, it lowers the value of the dollar overseas, and it +aggravates unemployment and inflation here at home. + +Now we know what we must do, increase production. We must cut down on +waste. And we must use more of those fuels which are plentiful and more +permanent. We must be fair to people, and we must not disrupt our Nation's +economy and our budget. + +Now, that sounds simple. But I recognize the difficulties involved. I know +that it is not easy for the Congress to act. But the fact remains that on +the energy legislation, we have failed the American people. Almost 5 years +after the oil embargo dramatized the problem for us all, we still do not +have a national energy program. Not much longer can we tolerate this +stalemate. It undermines our national interest both at home and abroad. We +must succeed, and I believe we will. + +Our main task at home this year, with energy a central element, is the +Nation's economy. We must continue the recovery and further cut +unemployment and inflation. + +Last year was a good one for the United States. We reached all of our major +economic goals for 1977. Four million new jobs were created, an alltime +record, and the number of unemployed dropped by more than a million. +Unemployment right now is the lowest it has been since 1974, and not since +World War II has such a high percentage of American people been employed. + +The rate of inflation went down. There was a good growth in business +profits and investments, the source of more jobs for our workers, and a +higher standard of living for all our people. After taxes and inflation, +there was a healthy increase in workers' wages. + +And this year, our country will have the first $2 trillion economy in the +history of the world. + +Now, we are proud of this progress the first year, but we must do even +better in the future. + +We still have serious problems on which all of us must work together. Our +trade deficit is too large. Inflation is still too high, and too many +Americans still do not have a job. + +Now, I didn't have any simple answers for all these problems. But we have +developed an economic policy that is working, because it's simple, +balanced, and fair. It's based on four principles: First, the economy must +keep on expanding to produce new jobs and better income, which our people +need. The fruits of growth must be widely shared. More jobs must be made +available to those who have been bypassed until now. And the tax system +must be made fairer and simpler. + +Secondly, private business and not the Government must lead the expansion +in the future. + +Third, we must lower the rate of inflation and keep it down. Inflation +slows down economic growth, and it's the most cruel to the poor and also to +the elderly and others who live on fixed incomes. + +And fourth, we must contribute to the strength of the world economy. + +I will announce detailed proposals for improving our tax system later this +week. We can make our tax laws fairer, we can make them simpler and easier +to understand, and at the same time, we can, and we will, reduce the tax +burden on American citizens by $25 billion. + +The tax reforms and the tax reductions go together. Only with the long +overdue reforms will the full tax cut be advisable. + +Almost $17 billion in income tax cuts will go to individuals. Ninety-six +percent of all American taxpayers will see their taxes go down. For a +typical family of four, this means an annual saving of more than $250 a +year, or a tax reduction of about 20 percent. A further $2 billion cut in +excise taxes will give more relief and also contribute directly to lowering +the rate of inflation. + +And we will also provide strong additional incentives for business +investment and growth through substantial cuts in the corporate tax rates +and improvement in the investment tax credit. + +Now, these tax proposals will increase opportunity everywhere in the +Nation. But additional jobs for the disadvantaged deserve special +attention. + +We've already passed laws to assure equal access to the voting booth and to +restaurants and to schools, to housing, and laws to permit access to jobs. +But job opportunity, the chance to earn a decent living, is also a basic +human right, which we cannot and will not ignore. + +A major priority for our Nation is the final elimination of the barriers +that restrict the opportunities available to women and also to black people +and Hispanics and other minorities. We've come a long way toward that goal. +But there is still much to do. What we inherited from the past must not be +permitted to shackle us in the future. + +I'll be asking you for a substantial increase in funds for public jobs for +our young people, and I also am recommending that the Congress continue the +public service employment programs at more than twice the level of a year +ago. When welfare reform is completed, we will have more than a million +additional jobs so that those on welfare who are able to work can work. + +However, again, we know that in our free society, private business is still +the best source of new jobs. Therefore, I will propose a new program to +encourage businesses to hire young and disadvantaged Americans. These young +people only need skills and a chance in order to take their place in our +economic system. Let's give them the chance they need. A major step in the +right direction would be the early passage of a greatly improved +Humphrey-Hawkins bill. + +My budget for 1979 addresses these national needs, but it is lean and +tight. I have cut waste wherever possible. + +I am proposing an increase of less than 2 percent after adjusting for +inflation, the smallest increase in the Federal budget in 4 years. + +Lately, Federal spending has taken a steadily increasing portion of what +Americans produce. Our new budget reverses that trend, and later I hope to +bring the Government's toll down even further. And with your help, we'll do +that. + +In time of high employment and a strong economy, deficit spending should +not be a feature of our budget. As the economy continues to gain strength +and as our unemployment rates continue to fall, revenues will grow. With +careful planning, efficient management, and proper restraint on spending, +we can move rapidly toward a balanced budget, and we will. + +Next year the budget deficit will be only slightly less than this year. But +one-third of the deficit is due to the necessary tax cuts that I've +proposed. This year the right choice is to reduce the burden on taxpayers +and provide more jobs for our people. + +The third element in our program is a renewed attack on inflation. We've +learned the hard way that high unemployment will not prevent or cure +inflation. Government can help us by stimulating private investment and by +maintaining a responsible economic policy. Through a new top-level review +process, we will do a better job of reducing Government regulation that +drives up costs and drives up prices. + +But again, Government alone cannot bring down the rate of inflation. When a +level of high inflation is expected to continue, then companies raise +prices to protect their profit margins against prospective increases in +wages and other costs, while workers demand higher wages as protection +against expected price increases. It's like an escalation in the arms race, +and understandably, no one wants to disarm alone. + +Now, no one firm or a group of workers can halt this process. It's an +effort that we must all make together. I'm therefore asking government, +business, labor, and other groups to join in a voluntary program to +moderate inflation by holding wage and price increases in each sector of +the economy during 1978 below the average increases of the last 2 years. + +I do not believe in wage and price controls. A sincere commitment to +voluntary constraint provides a way, perhaps the only way, to fight +inflation without Government interference. + +As I came into the Capitol tonight, I saw the farmers, my fellow farmers, +standing out in the snow. I'm familiar with their problem, and I know from +Congress' action that you are too. When I was running Carters Warehouse, we +had spread on our own farms 5-10-15 fertilizer for about $40 a ton. The +last time I was home, the price was about $100 a ton. The cost of nitrogen +has gone up 150 percent, and the price of products that farmers sell has +either stayed the same or gone down a little. + +Now, this past year in 1977, you, the Congress, and I together passed a new +agricultural act. It went into effect October 1. It'll have its first +impact on the 1978 crops. It will help a great deal. It'll add $6 1/2 +billion or more to help the farmers with their price supports and target +prices. + +Last year we had the highest level of exports of farm products in the +history of our country, $24 billion. We expect to have more this year. +We'll be working together. But I think it's incumbent on us to monitor very +carefully the farm situation and continue to work harmoniously with the +farmers of our country. What's best for the farmers, the farm families, in +the long run is also best for the consumers of our country. + +Economic success at home is also the key to success in our international +economic policy. An effective energy program, strong investment and +productivity, and controlled inflation will provide [improve] our trade +balance and balance it, and it will help to protect the integrity of the +dollar overseas. + +By working closely with our friends abroad, we can promote the economic +health of the whole world, with fair and balanced agreements lowering the +barriers to trade. + +Despite the inevitable pressures that build up when the world economy +suffers from high unemployment, we must firmly resist the demands for +self-defeating protectionism. But free trade must also be fair trade. And I +am determined to protect American industry and American workers against +foreign trade practices which are unfair or illegal. + +In a separate written message to Congress, I've outlined other domestic +initiatives, such as welfare reform, consumer protection, basic education +skills, urban policy, reform of our labor laws, and national health care +later on this year. I will not repeat these tonight. But there are several +other points that I would like to make directly to you. + +During these past years, Americans have seen our Government grow far from +us. + +For some citizens, the Government has almost become like a foreign country, +so strange and distant that we've often had to deal with it through trained +ambassadors who have sometimes become too powerful and too influential, +lawyers, accountants, and lobbyists. This cannot go on. + +We must have what Abraham Lincoln wanted, a government for the people. + +We've made progress toward that kind of government. You've given me the +authority I requested to reorganize the Federal bureaucracy. And I am using +that authority. + +We've already begun a series of reorganization plans which will be +completed over a period of 3 years. We have also proposed abolishing almost +500 Federal advisory and other commissions and boards. But I know that the +American people are still sick and tired of Federal paperwork and redtape. +Bit by bit we are chopping down the thicket of unnecessary Federal +regulations by which Government too often interferes in our personal lives +and our personal business. We've cut the public's Federal paperwork load by +more than 12 percent in less than a year. And we are not through cutting. + +We've made a good start on turning the gobbledygook of Federal regulations +into plain English that people can understand. But we know that we still +have a long way to go. + +We've brought together parts of 11 Government agencies to create a new +Department of Energy. And now it's time to take another major step by +creating a separate Department of Education. + +But even the best organized Government will only be as effective as the +people who carry out its policies. For this reason, I consider civil +service reform to be absolutely vital. Worked out with the civil servants +themselves, this reorganization plan will restore the merit principle to a +system which has grown into a bureaucratic maze. It will provide greater +management flexibility and better rewards for better performance without +compromising job security. + +Then and only then can we have a government that is efficient, open, and +truly worthy of our people's understanding and respect. I have promised +that we will have such a government, and I intend to keep that promise. + +In our foreign policy, the separation of people from government has been in +the past a source of weakness and error. In a democratic system like ours, +foreign policy decisions must be able to stand the test of public +examination and public debate. If we make a mistake in this administration, +it will be on the side of frankness and openness with the American people. + +In our modern world, when the deaths of literally millions of people can +result from a few terrifying seconds of destruction, the path of national +strength and security is identical to the path of peace. + +Tonight, I am happy to report that because we are strong, our Nation is at +peace with the world. + +We are a confident nation. We've restored a moral basis for our foreign +policy. The very heart of our identity as a nation is our firm commitment +to human rights. + +We stand for human rights because we believe that government has as a +purpose to promote the well-being of its citizens. This is true in our +domestic policy; it's also true in our foreign policy. The world must know +that in support of human rights, the United States will stand firm. + +We expect no quick or easy results, but there has been significant movement +toward greater freedom and humanity in several parts of the world. + +Thousands of political prisoners have been freed. The leaders of the world, +even our ideological adversaries, now see that their attitude toward +fundamental human rights affects their standing in the international +community, and it affects their relations with the United States. + +To serve the interests of every American, our foreign policy has three +major goals. + +The first and prime concern is and will remain the security of our +country. + +Security is based on our national will, and security is based on the +strength of our Armed Forces. We have the will, and militarily we are very +strong. + +Security also comes through the strength of our alliances. We have +reconfirmed our commitment to the defense of Europe, and this year we will +demonstrate that commitment by further modernizing and strengthening our +military capabilities there. + +Security can also be enhanced by agreements with potential adversaries +which reduce the threat of nuclear disaster while maintaining our own +relative strategic capability. + +In areas of peaceful competition with the Soviet Union, we will continue to +more than hold our own. + +At the same time, we are negotiating with quiet confidence, without haste, +with careful determination, to ease the tensions between us and to ensure +greater stability and security. + +The strategic arms limitation talks have been long and difficult. We want a +mutual limit on both the quality and the quantity of the giant nuclear +arsenals of both nations, and then we want actual reductions in strategic +arms as a major step toward the ultimate elimination of nuclear weapons +from the face of the Earth. + +If these talks result in an agreement this year, and I trust they will, I +pledge to you that the agreement will maintain and enhance the stability of +the world's strategic balance and the security of the United States. + +For 30 years, concerted but unsuccessful efforts have been made to ban the +testing of atomic explosives, both military weapons and peaceful nuclear +devices. + +We are hard at work with Great Britain and the Soviet Union on an agreement +which will stop testing and will protect our national security and provide +for adequate verification of compliance. We are now making, I believe, good +progress toward this comprehensive ban on nuclear explosions. + +We are also working vigorously to halt the proliferation of nuclear weapons +among the nations of the world which do not now have them and to reduce the +deadly global traffic in conventional arms sales. Our stand for peace is +suspect if we are also the principal arms merchant of the world. So, we've +decided to cut down our arms transfers abroad on a year-by-year basis and +to work with other major arms exporters to encourage their similar +constraint. + +Every American has a stake in our second major goal, a world at peace. In a +nuclear age, each of us is threatened when peace is not secured everywhere. +We are trying to promote harmony in those parts of the world where major +differences exist among other nations and threaten international peace. + +In the Middle East, we are contributing our good offices to maintain the +momentum of the current negotiations and to keep open the lines of +communication among the Middle Eastern leaders. The whole world has a great +stake in the success of these efforts. This is a precious opportunity for a +historic settlement of a longstanding conflict, an opportunity which may +never come again in our lifetime. + +Our role has been difficult and sometimes thankless and controversial. But +it has been constructive and it has been necessary, and it will continue. + +Our third major foreign policy goal is one that touches the life of every +American citizen every day, world economic growth and stability. + +This requires strong economic performance by the industrialized democracies +like ourselves and progress in resolving the global energy crisis. Last +fall, with the help of others, we succeeded in our vigorous efforts to +maintain the stability of the price of oil. But as many foreign leaders +have emphasized to me personally and, I am sure, to you, the greatest +future contribution that America can make to the world economy would be an +effective energy conservation program here at home. We will not hesitate to +take the actions needed to protect the integrity of the American dollar. + +We are trying to develop a more just international system. And in this +spirit, we are supporting the struggle for human development in Africa, in +Asia, and in Latin America. + +Finally, the world is watching to see how we act on one of our most +important and controversial items of business, approval of the Panama Canal +treaties. The treaties now before the Senate are the result of the work of +four administrations, two Democratic, two Republican. + +They guarantee that the canal will be open always for unrestricted use by +the ships of the world. Our ships have the right to go to the head of the +line for priority of passage in times of emergency or need. We retain the +permanent right to defend the canal with our own military forces, if +necessary, to guarantee its openness and its neutrality. + +The treaties are to the clear advantage of ourselves, the Panamanians, and +the other users of the canal. Ratifying the Panama Canal treaties will +demonstrate our good faith to the world, discourage the spread of hostile +ideologies in this hemisphere, and directly contribute to the economic +well-being and the security of the United States. + +I have to say that that's very welcome applause. + +There were two moments on my recent journey which, for me, confirmed the +final aims of our foreign policy and what it always must be. + +One was in a little village in India, where I met a people as passionately +attached to their rights and liberties as we are, but whose children have a +far smaller chance for good health or food or education or human +fulfillment than a child born in this country. + +The other moment was in Warsaw, capital of a nation twice devastated by war +in this century. There, people have rebuilt the city which war's +destruction took from them. But what was new only emphasized clearly what +was lost. + +What I saw in those two places crystalized for me the purposes of our own +Nation's policy: to ensure economic justice, to advance human rights, to +resolve conflicts without violence, and to proclaim in our great democracy +our constant faith in the liberty and dignity of human beings everywhere. + +We Americans have a great deal of work to do together. In the end, how well +we do that work will depend on the spirit in which we approach it. We must +seek fresh answers, unhindered by the stale prescriptions of the past. + +It has been said that our best years are behind us. But I say again that +America's best is still ahead. We have emerged from bitter experiences +chastened but proud, confident once again, ready to face challenges once +again, and united once again. + +We come together tonight at a solemn time. Last week the Senate lost a good +and honest man, Lee Metcalf of Montana. + +And today, the flag of the United States flew at half-mast from this +Capitol and from American installations and ships all over the world, in +mourning for Senator Hubert Humphrey. + +Because he exemplified so well the joy and the zest of living, his death +reminds us not so much of our own mortality, but of the possibilities +offered to us by life. He always looked to the future with a special +American kind of confidence, of hope and enthusiasm. And the best way that +we can honor him is by following his example. + +Our task, to use the words of Senator Humphrey, is "reconciliation, +rebuilding, and rebirth." + +Reconciliation of private needs and interests into a higher purpose. + +Rebuilding the old dreams of justice and liberty, and country and +community. + +Rebirth of our faith in the common good. + +Each of us here tonight, and all who are listening in your homes, must +rededicate ourselves to serving the common good. We are a community, a +beloved community, all of us. Our individual fates are linked, our futures +intertwined. And if we act in that knowledge and in that spirit, together, +as the Bible says, we can move mountains. + +Thank you very much. + +*** + +State of the Union Address +Jimmy Carter +January 25, 1979 + +Tonight I want to examine in a broad sense the state of our American +Union--how we are building a new foundation for a peaceful and a prosperous +world. + +Our children who will be born this year will come of age in the 21st +century. What kind of society, what kind of world are we building for them? +Will we ourselves be at peace? Will our children enjoy a better quality of +life? Will a strong and united America still be a force for freedom and +prosperity around the world? + +Tonight, there is every sign that the state of our Union is sound. + +Our economy offers greater prosperity for more of our people than ever +before. Real per capita income and real business profits have risen +substantially in the last 2 years. Farm exports are setting an all-time +record each year, and farm income last year, net farm income, was up more +than 25 percent. + +Our liberties are secure. Our military defenses are strong and growing +stronger. And more importantly, tonight, America--our beloved country--is +at peace. + +Our earliest national commitments, modified and reshaped by succeeding +generations, have served us well. But the problems that we face today are +different from those that confronted earlier generations of Americans. They +are more subtle, more complex, and more interrelated. At home, we are +recognizing ever more clearly that government alone cannot solve these +problems. And abroad, few of them can be solved by the United States alone. +But Americans as a united people, working with our allies and friends, have +never been afraid to face problems and to solve problems, either here or +abroad. + +The challenge to us is to build a new and firmer foundation for the +future--for a sound economy, for a more effective government, for more +political trust, and for a stable peace--so that the America our children +inherit will be even stronger and even better than it is today. + +We cannot resort to simplistic or extreme solutions which substitute myths +for common sense. + +In our economy, it is a myth that we must choose endlessly between +inflation and recession. Together, we build the foundation for a strong +economy, with lower inflation, without contriving either a recession with +its high unemployment or unworkable, mandatory government controls. + +In our government, it is a myth that we must choose between compassion and +competence. Together, we build the foundation for a government that works, +and works for people. + +In our relations with our potential adversaries, it is a myth that we must +choose between confrontation and capitulation. Together, we build the +foundation for a stable world of both diversity and peace. + +Together, we've already begun to build the foundation for confidence in our +economic system. During the last 2 years, in bringing our economy out of +the deepest recession since the 1930's, we've created 7,100,000 new jobs. +The unemployment rate has gone down 25 percent. And now we must redouble +our fight against the persistent inflation that has wracked our country for +more than a decade. That's our important domestic issue, and we must do it +together. + +We know that inflation is a burden for all Americans, but it's a disaster +for the poor, the sick, and the old. No American family should be forced to +choose among food, warmth, health care, or decent housing because the cost +of any of these basic necessities has climbed out of reach. + +Three months ago, I outlined to the Nation a balanced anti-inflation +program that couples responsible government restraint with responsible wage +and price restraint. It's based upon my knowledge that there is a more +powerful force than government compulsion--the force created by the +cooperative efforts of millions of Americans working toward a common goal. + +Business and labor have been increasingly supportive. It's imperative that +we in government do our part. We must stop excessive government growth, and +we must control government spending habits. + +I've sent to this Congress a stringent but a fair budget, one that, since I +ran for President in 1976, will have cut the Federal deficit in half. And +as a percentage of our gross national product, the deficit will have +dropped by almost 75 percent. + +This Congress had a good record last year, and I now ask the 96th Congress +to continue this partnership in holding the line on excess Federal +spending. It will not be easy. But we must be strong, and we must be +persistent. + +This budget is a clear message that, with the help of you and the American +people, I am determined, as President, to bring inflation under control. + +The 1980 budget provides enough spending restraint to begin unwinding +inflation, but enough support for our country to keep American workers +productive and to encourage the investments that provide new jobs. We will +continue to mobilize our Nation's resources to reduce our trade deficit +substantially this year and to maintain the strength of the American +dollar. + +We've demonstrated in this restrained budget that we can build on the gains +of the past 2 years to provide additional support to educate disadvantaged +children, to care for the elderly, to provide nutrition and legal services +for the poor, and to strengthen the economic base of our urban communities +and, also, our rural areas. + +This year, we will take our first steps to develop a national health plan. + +We must never accept a permanent group of unemployed Americans, with no +hope and no stake in building our society. For those left out of the +economy because of discrimination, a lack of skills, or poverty, we must +maintain high levels of training, and we must continue to provide jobs. + +A responsible budget is not our only weapon to control inflation. We must +act now to protect all Americans from health care costs that are rising $1 +million per hour, 24 hours a day, doubling every 5 years. We must take +control of the largest contributor to that inflation: skyrocketing hospital +costs. + +There will be no clearer test of the commitment of this Congress to the +anti-inflation fight than the legislation that I will submit again this +year to hold down inflation in hospital care. + +Over the next 5 years, my proposals will save Americans a total of $60 +billion, of which $25 billion will be savings to the American taxpayer in +the Federal budget itself. The American people have waited long enough. +This year we must act on hospital cost containment. + +We must also fight inflation by improvements and better enforcement of our +antitrust laws and by reducing government obstacles to competition in the +private sector. + +We must begin to scrutinize the overall effect of regulation in our +economy. Through deregulation of the airline industry we've increased +profits, cut prices for all Americans, and begun--for one of the few times +in the history of our Nation--to actually dismantle a major Federal +bureaucracy. This year, we must begin the effort to reform our regulatory +processes for the railroad, bus, and the trucking industries. + +America has the greatest economic system in the world. Let's reduce +government interference and give it a chance to work. + +I call on Congress to take other anti-inflation action--to expand our +exports to protect American jobs threatened by unfair trade, to conserve +energy, to increase production and to speed development of solar power, and +to reassess our Nation's technological superiority. American workers who +enlist in the fight against inflation deserve not just our gratitude, but +they deserve the protection of the real wage insurance proposal that I have +already made to the Congress. + +To be successful, we must change our attitudes as well as our policies. We +cannot afford to live beyond our means. We cannot afford to create programs +that we can neither manage nor finance, or to waste our natural resources, +and we cannot tolerate mismanagement and fraud. Above all, we must meet the +challenges of inflation as a united people. + +With the support of the American people, government in recent decades has +helped to dismantle racial barriers, has provided assistance for the +jobless and the retired, has fed the hungry, has protected the safety, +health, and bargaining rights of American workers, and has helped to +preserve our natural heritage. + +But it's not enough to have created a lot of government programs. Now we +must make the good programs more effective and improve or weed out those +which are wasteful or unnecessary. + +With the support of the Congress, we've begun to reorganize and to get +control of the bureaucracy. We are reforming the civil service system, so +that we can recognize and reward those who do a good job and correct or +remove those who do not. + +This year, we must extend major reorganization efforts to education, to +economic development, and to the management of our natural resources. We +need to enact a sunshine [sunset] law that when government programs have +outlived their value, they will automatically be terminated. + +There's no such thing as an effective and a noncontroversial reorganization +and reform. But we know that honest, effective government is essential to +restore public faith in our public action. + +None of us can be satisfied when two-thirds of the American citizens chose +not to vote last year in a national election. Too many Americans feel +powerless against the influence of private lobbying groups and the +unbelievable flood of private campaign money which threatens our electoral +process. + +This year, we must regain the public's faith by requiring limited financial +funds from public funds for congressional election campaigns. House bill 1 +provides for this public financing of campaigns. And I look forward with a +great deal of anticipation to signing it at an early date. + +A strong economy and an effective government will restore confidence in +America. But the path of the future must be charted in peace. We must +continue to build a new and a firm foundation for a stable world +community. + +We are building that new foundation from a position of national +strength--the strength of our own defenses, the strength of our friendships +with other nations, and of our oldest American ideals. + +America's military power is a major force for security and stability in the +world. We must maintain our strategic capability and continue the progress +of the last 2 years with our NATO Allies, with whom we have increased our +readiness, modernized our equipment, and strengthened our defense forces in +Europe. I urge you to support the strong defense budget which I have +proposed to the Congress. + +But our national security in this complicated age requires more than just +military might. In less than a lifetime, world population has more than +doubled, colonial empires have disappeared, and a hundred new nations have +been born, and migration to the world's cities have all awakened new +yearnings for economic justice and human rights among people everywhere. + +This demand for justice and human rights is a wave of the future. In such a +world, the choice is not which super power will dominate the world. None +can and none will. The choice instead is between a world of anarchy and +destruction, or a world of cooperation and peace. + +In such a world, we seek not to stifle inevitable change, but to influence +its course in helpful and constructive ways that enhance our values, our +national interests, and the cause of peace. + +Towering over this volatile, changing world, like a thundercloud on a +summer day, looms the awesome power of nuclear weapons. + +We will continue to help shape the forces of change, to anticipate emerging +problems of nuclear proliferation and conventional arms sales, and to use +our great strength parts of the world before they erupt and spread. + +We have no desire to be the world's policeman. But America does want to be +the world's peacemaker. + +We are building the foundation for truly global cooperation, not only with +Western and industrialized nations but with the developing countries as +well. Our ties with Japan and our European allies are stronger than ever, +and so are our friendly relations with the people of Latin America, Africa, +and the Western Pacific and Asia. + +We've won new respect in this hemisphere with the Panama Canal treaties. +We've gained new trust with the developing world through our opposition to +racism, our commitment to human rights, and our support for majority rule +in Africa. + +The multilateral trade negotiations are now reaching a successful +conclusion, and congressional approval is essential to the economic +well-being of our own country and of the world. This will be one of our top +priorities in 1979. + +We are entering a hopeful era in our relations with one-fourth of the +world's people who live in China. The presence of Vice Premier Deng +Xiaoping next week will help to inaugurate that new era. And with prompt +congressional action on authorizing legislation, we will continue our +commitment to a prosperous, peaceful, and secure life for the people of +Taiwan. + +I'm grateful that in the past year, as in the year before, no American has +died in combat anywhere in the world. And in Iran, Nicaragua, Cyprus, +Namibia, and Rhodesia, our country is working for peaceful solutions to +dangerous conflicts. + +In the Middle East, under the most difficult circumstances, we have sought +to help ancient enemies lay aside deep-seated differences that have +produced four bitter wars in our lifetime. + +Our firm commitment to Israel's survival and security is rooted in our +deepest convictions and in our knowledge of the strategic importance to our +own Nation of a stable Middle East. To promote peace and reconciliation in +the region, we must retain the trust and the confidence both of Israel and +also of the Arab nations that are sincerely searching for peace. + +I am determined, as President, to use the full, beneficial influence of our +country so that the precious opportunity for lasting peace between Israel +and Egypt will not be lost. + +The new foundation of international cooperation that we seek excludes no +nation. Cooperation with the Soviet Union serves the cause of peace, for in +this nuclear age, world peace must include peace between the super +powers--and it must mean the control of nuclear arms. + +Ten years ago, the United States and the Soviet Union made the historic +decision to open the strategic arms limitations talks, or SALT. The purpose +of SALT, then as now, is not to gain a unilateral advantage for either +nation, but to protect the security of both nations, to reverse the costly +and dangerous momentum of the nuclear arms race, to preserve a stable +balance of nuclear forces, and to demonstrate to a concerned world that we +are determined to help preserve the peace. + +The first SALT agreement was concluded in 1972. And since then, during 6 +years of negotiation by both Republican and Democratic leaders, nearly all +issues of SALT II have been resolved. If the Soviet Union continues to +negotiate in good faith, a responsible SALT agreement will be reached. + +It's important that the American people understand the nature of the SALT +process. + +SALT II is not based on sentiment; it's based on self-interest--of the +United States and of the Soviet Union. Both nations share a powerful common +interest in reducing the threat of a nuclear war. I will sign no agreement +which does not enhance our national security. + +SALT II does not rely on trust; it will be verifiable. We have very +sophisticated, proven means, including our satellites, to determine for +ourselves whether or not the Soviet Union is meeting its treaty +obligations. I will sign no agreement which cannot be verified. + +The American nuclear deterrent will remain strong after SALT II. For +example, just one of our relatively invulnerable Poseidon +submarines--comprising less than 2 percent of our total nuclear force of +submarines, aircraft, and land-based missiles--carries enough warheads to +destroy every large- and medium-sized city in the Soviet Union. Our +deterrent is overwhelming, and I will sign no agreement unless our deterrent +force will remain overwhelming. + +A SALT agreement, of course, cannot substitute for wise diplomacy or a +strong defense, nor will it end the danger of nuclear war. But it will +certainly reduce that danger. It will strengthen our efforts to ban nuclear +tests and to stop the spread of atomic weapons to other nations. And it can +begin the process of negotiating new agreements which will further limit +nuclear arms. + +The path of arms control, backed by a strong defense, the path our Nation +and every President has walked for 30 years, can lead to a world of law and +of international negotiation and consultation in which all peoples might +live in peace. In this year 1979, nothing is more important than that the +Congress and the people of the United States resolve to continue with me on +that path of nuclear arms control and world peace. This is paramount. + +I've outlined some of the changes that have transformed the world and which +are continuing as we meet here tonight. But we in America need not fear +change. The values on which our Nation was founded: individual liberty, +self-determination, the potential for human fulfillment in freedom, all of +these endure. We find these democratic principles praised, even in books +smuggled out of totalitarian nations and on wallposters in lands which we +thought were closed to our influence. Our country has regained its special +place of leadership in the worldwide struggle for human rights. And that is +a commitment that we must keep at home, as well as abroad. + +The civil rights revolution freed all Americans, black and white, but its +full promise still remains unrealized. I will continue to work with all my +strength for equal opportunity for all Americans--and for affirmative +action for those who carry the extra burden of past denial of equal +opportunity. + +We remain committed to improving our labor laws to better protect the +rights of American workers. And our Nation must make it clear that the +legal rights of women as citizens are guaranteed under the laws of our land +by ratifying the equal rights amendment. + +As long as I'm President, at home and around the world America's examples +and America's influence will be marshaled to advance the cause of human +rights. + +To establish those values, two centuries ago a bold generation of Americans +risked their property, their position, and life itself. We are their heirs, +and they are sending us a message across the centuries. The words they made +so vivid are now growing faintly indistinct, because they are not heard +often enough. They are words like "justice," "equality," "unity," "truth," +"sacrifice," "liberty," "faith," and "love." + +These words remind us that the duty of our generation of Americans is to +renew our Nation's faith, not focused just against foreign threats but +against the threats of selfishness, cynicism, and apathy. + +The new foundation I've discussed tonight can help us build a nation and a +world where every child is nurtured and can look to the future with hope, +where the resources now wasted on war can be turned towards meeting human +needs, where all people have enough to eat, a decent home, and protection +against disease. + +It can help us build a nation and a world where all people are free to seek +the truth and to add to human understanding, so that all of us may live our +lives in peace. + +Tonight, I ask you, the Members of the Congress, to join me in building +that new foundation, a better foundation, for our beloved country and our +world. + +Thank you very much. + +*** + +State of the Union Address +Jimmy Carter +January 21, 1980 + +This last few months has not been an easy time for any of us. As we meet +tonight, it has never been more clear that the state of our Union depends +on the state of the world. And tonight, as throughout our own generation, +freedom and peace in the world depend on the state of our Union. + +The 1980's have been born in turmoil, strife, and change. This is a time of +challenge to our interests and our values and it's a time that tests our +wisdom and our skills. + +At this time in Iran, 50 Americans are still held captive, innocent victims +of terrorism and anarchy. Also at this moment, massive Soviet troops are +attempting to subjugate the fiercely independent and deeply religious +people of Afghanistan. These two acts--one of international terrorism and +one of military aggression--present a serious challenge to the United +States of America and indeed to all the nations of the world. Together, we +will meet these threats to peace. + +I'm determined that the United States will remain the strongest of all +nations, but our power will never be used to initiate a threat to the +security of any nation or to the rights of any human being. We seek to be +and to remain secure--a nation at peace in a stable world. But to be secure +we must face the world as it is. + +Three basic developments have helped to shape our challenges: the steady +growth and increased projection of Soviet military power beyond its own +borders; the overwhelming dependence of the Western democracies on oil +supplies from the Middle East; and the press of social and religious and +economic and political change in the many nations of the developing world, +exemplified by the revolution in Iran. + +Each of these factors is important in its own right. Each interacts with +the others. All must be faced together, squarely and courageously. We will +face these challenges, and we will meet them with the best that is in us. +And we will not fail. + +In response to the abhorrent act in Iran, our Nation has never been aroused +and unified so greatly in peacetime. Our position is clear. The United +States will not yield to blackmail. + +We continue to pursue these specific goals: first, to protect the present +and long-range interests of the United States; secondly, to preserve the +lives of the American hostages and to secure, as quickly as possible, their +safe release, if possible, to avoid bloodshed which might further endanger +the lives of our fellow citizens; to enlist the help of other nations in +condemning this act of violence, which is shocking and violates the moral +and the legal standards of a civilized world; and also to convince and to +persuade the Iranian leaders that the real danger to their nation lies in +the north, in the Soviet Union and from the Soviet troops now in +Afghanistan, and that the unwarranted Iranian quarrel with the United +States hampers their response to this far greater danger to them. + +If the American hostages are harmed, a severe price will be paid. We will +never rest until every one of the American hostages are released. + +But now we face a broader and more fundamental challenge in this region +because of the recent military action of the Soviet Union. + +Now, as during the last 3 1/2 decades, the relationship between our +country, the United States of America, and the Soviet Union is the most +critical factor in determining whether the world will live at peace or be +engulfed in global conflict. + +Since the end of the Second World War, America has led other nations in +meeting the challenge of mounting Soviet power. This has not been a simple +or a static relationship. Between us there has been cooperation, there has +been competition, and at times there has been confrontation. + +In the 1940's we took the lead in creating the Atlantic Alliance in +response to the Soviet Union's suppression and then consolidation of its +East European empire and the resulting threat of the Warsaw Pact to Western +Europe. + +In the 1950's we helped to contain further Soviet challenges in Korea and +in the Middle East, and we rearmed to assure the continuation of that +containment. + +In the 1960's we met the Soviet challenges in Berlin, and we faced the +Cuban missile crisis. And we sought to engage the Soviet Union in the +important task of moving beyond the cold war and away from confrontation. + +And in the 1970's three American Presidents negotiated with the Soviet +leaders in attempts to halt the growth of the nuclear arms race. We sought +to establish rules of behavior that would reduce the risks of conflict, and +we searched for areas of cooperation that could make our relations +reciprocal and productive, not only for the sake of our two nations but for +the security and peace of the entire world. + +In all these actions, we have maintained two commitments: to be ready to +meet any challenge by Soviet military power, and to develop ways to resolve +disputes and to keep the peace. + +Preventing nuclear war is the foremost responsibility of the two +superpowers. That's why we've negotiated the strategic arms limitation +treaties--SALT I and SALT II. Especially now, in a time of great tension, +observing the mutual constraints imposed by the terms of these treaties +will be in the best interest of both countries and will help to preserve +world peace. I will consult very closely with the Congress on this matter +as we strive to control nuclear weapons. That effort to control nuclear +weapons will not be abandoned. + +We superpowers also have the responsibility to exercise restraint in the +use of our great military force. The integrity and the independence of +weaker nations must not be threatened. They must know that in our presence +they are secure. + +But now the Soviet Union has taken a radical and an aggressive new step. +It's using its great military power against a relatively defenseless +nation. The implications of the Soviet invasion of Afghanistan could pose +the most serious threat to the peace since the Second World War. + +The vast majority of nations on Earth have condemned this latest Soviet +attempt to extend its colonial domination of others and have demanded the +immediate withdrawal of Soviet troops. The Moslem world is especially and +justifiably outraged by this aggression against an Islamic people. No +action of a world power has ever been so quickly and so overwhelmingly +condemned. But verbal condemnation is not enough. The Soviet Union must pay +a concrete price for their aggression. + +While this invasion continues, we and the other nations of the world cannot +conduct business as usual with the Soviet Union. That's why the United +States has imposed stiff economic penalties on the Soviet Union. I will not +issue any permits for Soviet ships to fish in the coastal waters of the +United States. I've cut Soviet access to high-technology equipment and to +agricultural products. I've limited other commerce with the Soviet Union, +and I've asked our allies and friends to join with us in restraining their +own trade with the Soviets and not to replace our own embargoed items. And +I have notified the Olympic Committee that with Soviet invading forces in +Afghanistan, neither the American people nor I will support sending an +Olympic team to Moscow. + +The Soviet Union is going to have to answer some basic questions: Will it +help promote a more stable international environment in which its own +legitimate, peaceful concerns can be pursued? Or will it continue to expand +its military power far beyond its genuine security needs, and use that +power for colonial conquest? The Soviet Union must realize that its +decision to use military force in Afghanistan will be costly to every +political and economic relationship it values. + +The region which is now threatened by Soviet troops in Afghanistan is of +great strategic importance: It contains more than two-thirds of the world's +exportable oil. The Soviet effort to dominate Afghanistan has brought +Soviet military forces to within 300 miles of the Indian Ocean and close to +the Straits of Hormuz, a waterway through which most of the world's oil +must flow. The Soviet Union is now attempting to consolidate a strategic +position, therefore, that poses a grave threat to the free movement of +Middle East oil. + +This situation demands careful thought, steady nerves, and resolute action, +not only for this year but for many years to come. It demands collective +efforts to meet this new threat to security in the Persian Gulf and in +Southwest Asia. It demands the participation of all those who rely on oil +from the Middle East and who are concerned with global peace and stability. +And it demands consultation and close cooperation with countries in the +area which might be threatened. + +Meeting this challenge will take national will, diplomatic and political +wisdom, economic sacrifice, and, of course, military capability. We must +call on the best that is in us to preserve the security of this crucial +region. + +Let our position be absolutely clear: An attempt by any outside force to +gain control of the Persian Gulf region will be regarded as an assault on +the vital interests of the United States of America, and such an assault +will be repelled by any means necessary, including military force. + +During the past 3 years, you have joined with me to improve our own +security and the prospects for peace, not only in the vital oil-producing +area of the Persian Gulf region but around the world. We've increased +annually our real commitment for defense, and we will sustain this increase +of effort throughout the Five Year Defense Program. It's imperative that +Congress approve this strong defense budget for 1981, encompassing a +5-percent real growth in authorizations, without any reduction. + +We are also improving our capability to deploy U.S. military forces rapidly +to distant areas. We've helped to strengthen NATO and our other alliances, +and recently we and other NATO members have decided to develop and to +deploy modernized, intermediate-range nuclear forces to meet an unwarranted +and increased threat from the nuclear weapons of the Soviet Union. + +We are working with our allies to prevent conflict in the Middle East. The +peace treaty between Egypt and Israel is a notable achievement which +represents a strategic asset for America and which also enhances prospects +for regional and world peace. We are now engaged in further negotiations to +provide full autonomy for the people of the West Bank and Gaza, to resolve +the Palestinian issue in all its aspects, and to preserve the peace and +security of Israel. Let no one doubt our commitment to the security of +Israel. In a few days we will observe an historic event when Israel makes +another major withdrawal from the Sinai and when Ambassadors will be +exchanged between Israel and Egypt. + +We've also expanded our own sphere of friendship. Our deep commitment to +human rights and to meeting human needs has improved our relationship with +much of the Third World. Our decision to normalize relations with the +People's Republic of China will help to preserve peace and stability in +Asia and in the Western Pacific. + +We've increased and strengthened our naval presence in the Indian Ocean, +and we are now making arrangements for key naval and air facilities to be +used by our forces in the region of northeast Africa and the Persian Gulf. + +We've reconfirmed our 1959 agreement to help Pakistan preserve its +independence and its integrity. The United States will take action +consistent with our own laws to assist Pakistan in resisting any outside +aggression. And I'm asking the Congress specifically to reaffirm this +agreement. I'm also working, along with the leaders of other nations, to +provide additional military and economic aid for Pakistan. That request +will come to you in just a few days. + +Finally, we are prepared to work with other countries in the region to +share a cooperative security framework that respects differing values and +political beliefs, yet which enhances the independence, security, and +prosperity of all. + +All these efforts combined emphasize our dedication to defend and preserve +the vital interests of the region and of the nation which we represent and +those of our allies--in Europe and the Pacific, and also in the parts of +the world which have such great strategic importance to us, stretching +especially through the Middle East and Southwest Asia. With your help, I +will pursue these efforts with vigor and with determination. You and I will +act as necessary to protect and to preserve our Nation's security. + +The men and women of America's Armed Forces are on duty tonight in many +parts of the world. I'm proud of the job they are doing, and I know you +share that pride. I believe that our volunteer forces are adequate for +current defense needs, and I hope that it will not become necessary to +impose a draft. However, we must be prepared for that possibility. For this +reason, I have determined that the Selective Service System must now be +revitalized. I will send legislation and budget proposals to the Congress +next month so that we can begin registration and then meet future +mobilization needs rapidly if they arise. + +We also need clear and quick passage of a new charter to define the legal +authority and accountability of our intelligence agencies. We will +guarantee that abuses do not recur, but we must tighten our controls on +sensitive intelligence information, and we need to remove unwarranted +restraints on America's ability to collect intelligence. + +The decade ahead will be a time of rapid change, as nations everywhere seek +to deal with new problems and age-old tensions. But America need have no +fear. We can thrive in a world of change if we remain true to our values +and actively engaged in promoting world peace. We will continue to work as +we have for peace in the Middle East and southern Africa. We will continue +to build our ties with developing nations, respecting and helping to +strengthen their national independence which they have struggled so hard to +achieve. And we will continue to support the growth of democracy and the +protection of human rights. + +In repressive regimes, popular frustrations often have no outlet except +through violence. But when peoples and their governments can approach their +problems together through open, democratic methods, the basis for stability +and peace is far more solid and far more enduring. That is why our support +for human rights in other countries is in our own national interest as well +as part of our own national character. + +Peace--a peace that preserves freedom--remains America's first goal. In the +coming years, as a mighty nation we will continue to pursue peace. But to +be strong abroad we must be strong at home. And in order to be strong, we +must continue to face up to the difficult issues that confront us as a +nation today. + +The crises in Iran and Afghanistan have dramatized a very important lesson: +Our excessive dependence on foreign oil is a clear and present danger to +our Nation's security. The need has never been more urgent. At long last, +we must have a clear, comprehensive energy policy for the United States. + +As you well know, I have been working with the Congress in a concentrated +and persistent way over the past 3 years to meet this need. We have made +progress together. But Congress must act promptly now to complete final +action on this vital energy legislation. Our Nation will then have a major +conservation effort, important initiatives to develop solar power, +realistic pricing based on the true value of oil, strong incentives for the +production of coal and other fossil fuels in the United States, and our +Nation's most massive peacetime investment in the development of synthetic +fuels. + +The American people are making progress in energy conservation. Last year +we reduced overall petroleum consumption by 8 percent and gasoline +consumption by 5 percent below what it was the year before. Now we must do +more. + +After consultation with the Governors, we will set gasoline conservation +goals for each of the 50 States, and I will make them mandatory if these +goals are not met. + +I've established an import ceiling for 1980 of 8.2 million barrels a +day--well below the level of foreign oil purchases in 1977. I expect our +imports to be much lower than this, but the ceiling will be enforced by an +oil import fee if necessary. I'm prepared to lower these imports still +further if the other oil-consuming countries will join us in a fair and +mutual reduction. If we have a serious shortage, I will not hesitate to +impose mandatory gasoline rationing immediately. + +The single biggest factor in the inflation rate last year, the increase in +the inflation rate last year, was from one cause: the skyrocketing prices +of OPEC oil. We must take whatever actions are necessary to reduce our +dependence on foreign oil--and at the same time reduce inflation. + +As individuals and as families, few of us can produce energy by ourselves. +But all of us can conserve energy--every one of us, every day of our lives. +Tonight I call on you--in fact, all the people of America--to help our +Nation. Conserve energy. Eliminate waste. Make 1980 indeed a year of energy +conservation. + +Of course, we must take other actions to strengthen our Nation's economy. + +First, we will continue to reduce the deficit and then to balance the +Federal budget. + +Second, as we continue to work with business to hold down prices, we'll +build also on the historic national accord with organized labor to restrain +pay increases in a fair fight against inflation. + +Third, we will continue our successful efforts to cut paperwork and to +dismantle unnecessary Government regulation. + +Fourth, we will continue our progress in providing jobs for America, +concentrating on a major new program to provide training and work for our +young people, especially minority youth. It has been said that "a mind is a +terrible thing to waste." We will give our young people new hope for jobs +and a better life in the 1980's. + +And fifth, we must use the decade of the 1980's to attack the basic +structural weaknesses and problems in our economy through measures to +increase productivity, savings, and investment. + +With these energy and economic policies, we will make America even stronger +at home in this decade--just as our foreign and defense policies will make +us stronger and safer throughout the world. We will never abandon our +struggle for a just and a decent society here at home. That's the heart of +America--and it's the source of our ability to inspire other people to +defend their own rights abroad. + +Our material resources, great as they are, are limited. Our problems are +too complex for simple slogans or for quick solutions. We cannot solve them +without effort and sacrifice. Walter Lippmann once reminded us, "You took +the good things for granted. Now you must earn them again. For every right +that you cherish, you have a duty which you must fulfill. For every good +which you wish to preserve, you will have to sacrifice your comfort and +your ease. There is nothing for nothing any longer." + +Our challenges are formidable. But there's a new spirit of unity and +resolve in our country. We move into the 1980's with confidence and hope +and a bright vision of the America we want: an America strong and free, an +America at peace, an America with equal rights for all citizens--and for +women, guaranteed in the United States Constitution--an America with jobs +and good health and good education for every citizen, an America with a +clean and bountiful life in our cities and on our farms, an America that +helps to feed the world, an America secure in filling its own energy needs, +an America of justice, tolerance, and compassion. For this vision to come +true, we must sacrifice, but this national commitment will be an exciting +enterprise that will unify our people. + +Together as one people, let us work to build our strength at home, and +together as one indivisible union, let us seek peace and security +throughout the world. + +Together let us make of this time of challenge and danger a decade of +national resolve and of brave achievement. + +Thank you very much. + +*** + +State of the Union Address +Jimmy Carter +January 16, 1981 + +To the Congress of the United States: + +The State of the Union is sound. Our economy is recovering from a +recession. A national energy plan is in place and our dependence on foreign +oil is decreasing. We have been at peace for four uninterrupted years. + +But, our Nation has serious problems. Inflation and unemployment are +unacceptably high. The world oil market is increasingly tight. There are +trouble spots throughout the world, and 52 American hostages are being held +in Iran against international law and against every precept of human +affairs. + +However, I firmly believe that, as a result of the progress made in so many +domestic and international areas over the past four years, our Nation is +stronger, wealthier, more compassionate and freer than it was four years +ago. I am proud of that fact. And I believe the Congress should be proud as +well, for so much of what has been accomplished over the past four years +has been due to the hard work, insights and cooperation of Congress. I +applaud the Congress for its efforts and its achievements. + +In this State of the Union Message I want to recount the achievements and +progress of the last four years and to offer recommendations to the +Congress for this year. While my term as President will end before the 97th +Congress begins its work in earnest, I hope that my recommendations will +serve as a guide for the direction this country should take so we build on +the record of the past four years. + +RECORD OF PROGRESS + +When I took office, our Nation faced a number of serious domestic and +international problems: + +--no national energy policy existed, and our dependence on foreign oil was +rapidly increasing; + +--public trust in the integrity and openness of the government was low; + +--the Federal government was operating inefficiently in administering +essential programs and policies; + +--major social problems were being ignored or poorly addressed by the +Federal government; + +--our defense posture was declining as a result of a defense budget which +was continuously shrinking in real terms; + +--the strength of the NATO Alliance needed to be bolstered; + +--tensions between Israel and Egypt threatened another Middle East war; +and + +--America's resolve to oppose human rights violations was under serious +question. + +Over the past 48 months, clear progress has been made in solving the +challenges we found in January of 1977: + +--almost all of our comprehensive energy program have been enacted, and the +Department of Energy has been established to administer the program; +confidence in the government's integrity has been restored, and respect for +the government's openness and fairness has been renewed; + +--the government has been made more effective and efficient: the Civil +Service system was completely reformed for the first time this century; + +--14 reorganization initiatives have been proposed to the Congress, +approved, and implemented; + +--two new Cabinet departments have been created to consolidate and +streamline the government's handling of energy and education problems; + +--inspectors general have been placed in each Cabinet department to combat +fraud, waste and other abuses; + +--the regulatory process has been reformed through creation of the +Regulatory Council, implementation of Executive Order 12044 and its +requirement for cost-impact analyses, elimination of unnecessary +regulation, and passage of the Regulatory Flexibility Act; + +--procedures have been established to assure citizen participation in +government; + +--and the airline, trucking, rail and communications industries are being +deregulated; + +--critical social problems, many long ignored by the Federal government, +have been addressed directly; + +--an urban policy was developed and implemented to reverse the decline +in our urban areas; + +--the Social Security System was refinanced to put it on a sound financial +basis; + +--the Humphrey-Hawkins Full Employment Act was enacted; + +--Federal assistance for education was expanded by more than 75 percent; + +--the minimum wage was increased to levels needed to ease the effects of +inflation; + +--affirmative action has been pursued aggressively; more blacks, Hispanics +and women have been appointed to senior government positions and to +judgeships than at any other time in our history; + +--the ERA ratification deadline was extended to aid the ratification effort; + +--and minority business procurement by the Federal government has more than +doubled; + +--the Nation's first sectoral policies were put in place, for the auto and +steel industries, with my Administration demonstrating the value of +cooperation between the government, business and labor; + +--reversing previous trends, real defense spending has increased every year +since 1977; + +--the real increase in FY 1980 defense spending is well above 3 percent +and I expect FY 1981 defense spending to be even higher; + +--looking ahead, the defense program I am proposing is premised on a real +increase in defense spending over the next five years of 20 percent or +more; + +--the NATO Alliance has proven its unity in responding to the situations in +Eastern Europe and Southwest Asia and in agreeing on the issues to be +addressed in the review of the Helsinki Final Act currently underway in +Madrid; + +--the peace process in the Middle East established at Camp David and by the +Peace Treaty between Egypt and Israel is being buttressed on two fronts: +steady progress in the normalization of Egyptian-Israeli relations in many +fields, and the commitment of both Egypt and Israel, with United States' +assistance, to see through to successful conclusion the autonomy +negotiations for the West Bank and Gaza; + +--the Panama Canal Treaties have been put into effect, which has helped to +improve relations with Latin America; + +--we have continued this Nation's strong commitment to the pursuit of human +rights throughout the world, evenhandedly and objectively; + +--our commitment to a worldwide human rights policy has remained firm; + +--and many other countries have given high priority to it; + +--our resolve to oppose aggression, such as the illegal invasion of the +Soviet Union into Afghanistan, has been supported by tough action. + +I. ENSURING ECONOMIC STRENGTH ECONOMY + +During the last decade our Nation has withstood a series of economic shocks +unprecedented in peacetime. The most dramatic of these has been the +explosive increases of OPEC oil prices. But we have also faced world +commodity shortages, natural disasters, agricultural shortages and major +challenges to world peace and security. Our ability to deal with these +shocks has been impaired because of a decrease in the growth of +productivity and the persistence of underlying inflationary forces built up +over the past 15 years. + +Nevertheless, the economy has proved to be remarkably resilient. Real +output has grown at an average rate of 3 percent per year since I took +office, and employment has grown by 10 percent. We have added about 8 +million productive private sector jobs to the economy. However, +unacceptably high inflation--the most difficult economic problem I have +faced--persists. + +This inflation--which threatens the growth, productivity, and stability of +our economy--requires that we restrain the growth of the budget to the +maximum extent consistent with national security and human compassion. I +have done so in my earlier budgets, and in my FY '82 budget. However, while +restraint is essential to any appropriate economic policy, high inflation +cannot be attributed solely to government spending. The growth in budget +outlays has been more the result of economic factors than the cause of +them. + +We are now in the early stages of economic recovery following a short +recession. Typically, a post-recessionary period has been marked by +vigorous economic growth aided by anti-recessionary policy measures such as +large tax cuts or big, stimulation spending programs. I have declined to +recommend such actions to stimulate economic activity, because the +persistent inflationary pressures that beset our economy today dictate a +restrained fiscal policy. + +Accordingly, I am asking the Congress to postpone until January 1, 1982, +the personal tax reductions I had earlier proposed to take effect on +January 1 of this year. + +However, my 1982 budget proposes significant tax changes to increase the +sources of financing for business investment. While emphasizing the need +for continued fiscal restraint, this budget takes the first major step in a +long-term tax reduction program designed to increase capital formation. The +failure of our Nation's capital stock to grow at a rate that keeps pace +with its labor force has clearly been one cause of our productivity +slowdown. Higher investment rates are also critically needed to meet our +Nation's energy needs, and to replace energy-inefficient plants and +equipment with new energy-saving physical plants. The level of investment +that is called for will not occur in the absence of policies to encourage +it. + +Therefore, my budget proposes a major liberalization of tax allowances for +depreciation, as well as simplified depreciation accounting, increasing the +allowable rates by about 40 percent. I am also proposing improvements in +the investment tax credit, making it refundable, to meet the investment +needs of firms with no current earnings. + +These two proposals, along with carefully-phased tax reductions for +individuals, will improve both economic efficiency and tax equity. I urge +the Congress to enact legislation along the lines and timetable I have +proposed. + +THE 1982 BUDGET + +The FY 1982 budget I have sent to the Congress continues our four-year +policy of prudence and restraint. While the budget deficits during my term +are higher than I would have liked, their size is determined for the most +part by economic conditions. And in spite of these conditions, the relative +size of the deficit continues to decline. In 1976, before I took office, +the budget deficit equalled 4 percent of gross national product. It had +been cut to 2.3 percent in the 1980 fiscal year just ended. My 1982 budget +contains a deficit estimated to be less than 1 percent of our gross +national product. + +The rate of growth in Federal spending has been held to a minimum. +Nevertheless, outlays are still rising more rapidly than many had +anticipated, the result of many powerful forces in our society: + +We face a threat to our security, as events in Afghanistan, the Middle +East, and Eastern Europe make clear. We have a steadily aging population +and, as a result, the biggest single increase in the Federal budget is the +rising cost of retirement programs, particularly social security. We face +other important domestic needs: to continue responsibility for the +disadvantaged; to provide the capital needed by our cities and our +transportation systems; to protect our environment; to revitalize American +industry; and to increase the export of American goods and services so +essential to the creation of jobs and a trade surplus. + +Yet the Federal Government itself may not always be the proper source of +such assistance. For example, it must not usurp functions if they can be +more appropriately decided upon, managed, and financed by the private +sector or by State and local governments. My Administration has always +sought to consider the proper focus of responsibility for the most +efficient resolution of problems. + +We have also recognized the need to simplify the system of grants to State +and local governments. I have again proposed several grant consolidations +in the 1982 budget, including a new proposal that would consolidate several +highway programs. + +The pressures for growth in Federal use of national resources are great. My +Administration has initiated many new approaches to cope with these +pressures. We started a multi-year budget system, and we began a system for +controlling Federal credit programs. Yet in spite of increasing needs to +limit spending growth, we have consistently adhered to these strong budget +principles: + +Our Nation's armed forces must always stand sufficiently strong to deter +aggression and to assure our security. An effective national energy plan is +essential to increase domestic production of oil and gas, to encourage +conservation of our scarce energy resources, to stimulate conversion to +more abundant fuels, and to reduce our trade deficit. The essential human +needs for our citizens must be given the highest priority. The Federal +Government must lead the way in investment in the Nation's technological +future. The Federal Government has an obligation to nurture and protect our +environment--the common resource, birthright, and sustenance of the +American people. + +My 1982 budget continues to support these principles. It also proposes +responsible tax reductions to encourage a more productive economy, and +adequate funding of our highest priority programs within an overall policy +of constraint. + +Fiscal restraint must be continued in the years ahead. Budgets must be +tight enough to convince those who set wages and prices that the Federal +Government is serious about fighting inflation but not so tight as to choke +off all growth. + +Careful budget policy should be supplemented by other measures designed to +reduce inflation at lower cost in lost output and employment. These other +steps include measures to increase investment--such as the tax proposals +included in my 1982 budget--and measures to increase competition and +productivity in our economy. Voluntary incomes policies can also directly +influence wages and prices in the direction of moderation and thereby bring +inflation down faster and at lower cost to the economy. Through a tax-based +incomes policy (TIP) we could provide tax incentives for firms and workers +to moderate their wage and price increases. In the coming years, control of +Federal expenditures can make possible periodic tax reductions. The +Congress should therefore begin now to evaluate the potentialities of a TIP +program so that when the next round of tax reductions is appropriate a TIP +program will be seriously considered. + +EMPLOYMENT + +During the last four years we have given top priority to meeting the needs +of workers and providing additional job opportunities to those who seek +work. Since the end of 1976: + +Almost 9 million new jobs have been added to the nation's economy total +employment has reached 97 million. More jobs than ever before are held by +women, minorities and young people. Employment over the past four years has +increased by: 17% for adult women 11% for blacks, and 30% for Hispanics +employment of black teenagers increased by more than 5%, reversing the +decline that occurred in the previous eight years. + +Major initiatives launched by this Administration helped bring about these +accomplishments and have provided a solid foundation for employment and +training policy in the 1980's. In 1977, as part of the comprehensive +economic stimulus program: + +425,000 public service jobs were created A $1 billion youth employment +initiative funded 200,000 jobs the doubling of the Job Corps to 44,000 +slots began and 1 million summer youth jobs were approved--a 25 percent +increase. + +In 1978: + +The Humphrey-Hawkins Full Employment Act became law the $400 million +Private Sector Initiatives Program was begun a targeted jobs tax credit for +disadvantaged youth and others with special employment barriers was enacted +the Comprehensive Employment and Training Act was reauthorized for four +years. + +In 1979: + +A $6 billion welfare reform proposal was introduced with funding for +400,000 public service jobs welfare reform demonstration projects were +launched in communities around the country the Vice President initiated a +nationwide review of youth unemployment in this country. + +In 1980: + +The findings of the Vice President's Task Force revealed the major +education and employment deficits that exist for poor and minority +youngsters. As a result a $2 billion youth education and jobs initiative +was introduced to provide unemployed youth with the basic education and +work experience they need to compete in the labor market of the 1980's. As +part of the economic revitalization program several steps were proposed to +aid workers in high unemployment communities: + +An additional 13 weeks of unemployment benefits for the long term +unemployed. $600 million to train the disadvantaged and unemployed for new +private sector jobs. Positive adjustment demonstrations to aid workers in +declining industries. The important Title VII Private Sector Initiatives +Program was reauthorized for an additional two years. + +In addition to making significant progress in helping the disadvantaged and +unemployed, important gains were realized for all workers: + +An historic national accord with organized labor made it possible for the +views of working men and women to be heard as the nation's economic and +domestic policies were formulated; the Mine Safety and Health Act brought +about improved working conditions for the nation's 500,000 miners. +substantial reforms of Occupational Safety and Health Administration were +accomplished to help reduce unnecessary burdens on business and to focus on +major health and safety problems; the minimum wage was increased over a +four year period from $2.30 to $3.35 an hour; the Black Lung Benefit Reform +Act was signed into law; attempts to weaken Davis-Bacon Act were defeated. + +While substantial gains have been made in the last four years, continued +efforts are required to ensure that this progress is continued: + +Government must continue to make labor a full partner in the policy +decisions that affect the interests of working men and women; a broad, +bipartisan effort to combat youth unemployment must be sustained +compassionate reform of the nation's welfare system should be continued +with employment opportunities provided for those able to work; workers in +declining industries should be provided new skills and help in finding +employment. + +TRADE + +Over the past year, the U.S. trade picture improved as a result of solid +export gains in both manufactured and agricultural products. Agricultural +exports reached a new record of over $40 billion, while manufactured +exports have grown by 24 percent to a record $144 billion. In these areas +the United States recorded significant surpluses of $24 billion and $19 +billion respectively. While our oil imports remained a major drain on our +foreign exchange earnings, that drain was somewhat moderated by a 19 +percent decline in the volume of oil imports. + +U.S. trade negotiators made significant progress over the past year in +assuring effective implementation of the agreements negotiated during the +Tokyo Round of Multilateral Trade Negotiations. Agreements reached with the +Japanese government, for example, will assure that the United States will +be able to expand its exports to the Japanese market in such key areas as +telecommunications equipment, tobacco, and lumber. Efforts by U.S. trade +negotiators also helped to persuade a number of key developing countries to +accept many of the non-tariff codes negotiated during the Multilateral +Trade Negotiations. This will assure that these countries will increasingly +assume obligations under the international trading system. + +A difficult world economic environment posed a challenge for the management +of trade relations. U.S. trade negotiators were called upon to manage +serious sectoral problems in such areas as steel, and helped to assure that +U.S. chemical exports will have continued access to the European market. + +Close consultations with the private sector in the United States have +enabled U.S. trade negotiators to pinpoint obstacles to U.S. trade in +services, and to build a basis for future negotiations. Services have been +an increasingly important source of export earnings for the United States, +and the United States must assure continued and increased access to foreign +markets. + +The trade position of the United States has improved. But vigorous efforts +are needed in a number of areas to assure continued market access for U.S. +exports, particularly agricultural and high technology products, in which +the United States continues to have a strong competitive edge. Continued +efforts are also needed to remove many domestic disincentives, which now +hamper U.S. export growth. And we must ensure that countries do not +manipulate investment, or impose investment performance requirements which +distort trade and cost us jobs in this country. + +In short, we must continue to seek free--but fair--trade. That is the +policy my Administration has pursued from the beginning, even in areas +where foreign competition has clearly affected our domestic industry. In +the steel industry, for instance, we have put Trigger Price Mechanism into +place to help prevent the dumping of steel. That action has strengthened +the domestic steel industry. In the automobile industry, we have worked-- +without resort to import quotas--to strengthen the industry's ability to +modernize and compete effectively. + +SMALL BUSINESS + +I have often said that there is nothing small about small business in +America. These firms account for nearly one-half our gross national +product; over half of new technology; and much more than half of the jobs +created by industry. + +Because this sector of the economy is the very lifeblood of our National +economy, we have done much together to improve the competitive climate for +smaller firms. These concerted efforts have been an integral part of my +program to revitalize the economy. + +They include my campaign to shrink substantially the cash and time +consuming red tape burden imposed on business. They include my +personally-directed policy of ambitiously increasing the Federal +contracting dollars going to small firms, especially those owned by women +and minorities. And they include my proposals to reinvigorate existing +small businesses and assist the creation of new ones through tax reform; +financing assistance; market expansion; and support of product innovation. + +Many of my initiatives to facilitate the creation and growth of small +businesses were made in response to the White House Conference on Small +Business, which I convened. My Administration began the implementation of +most of the ideas produced last year by that citizen's advisory body; +others need to be addressed. I have proposed the reconvening of the +Conference next year to review progress; reassess priorities; and set new +goals. In the interim I hope that the incoming Administration and the new +Congress will work with the committee I have established to keep these +business development ideas alive and help implement Conference +recommendations. + +MINORITY BUSINESS + +One of the most successful developments of my Administration has been the +growth and strengthening of minority business. This is the first +Administration to put the issue on the policy agenda as a matter of major +importance. To implement the results of our early efforts in this field I +submitted legislation to Congress designed to further the development of +minority business. + +We have reorganized the Office of Minority Business into the Minority +Business Development Administration in the Department of Commerce. MBDA has +already proven to be a major factor in assisting minority businesses to +achieve equitable competitive positions in the marketplace. + +The Federal government's procurement from minority-owned firms has nearly +tripled since I took office. Federal deposits in minority-owned banks have +more than doubled and minority ownership of radio and television stations +has nearly doubled. The SBA administered 8(a) Pilot Program for procurement +with the Army proved to be successful and I recently expanded the number of +agencies involved to include NASA and the Departments of Energy and +Transportation. + +I firmly believe the critical path to full freedom and equality for +America's minorities rests with the ability of minority communities to +participate competitively in the free enterprise system. I believe the +government has a fundamental responsibility to assist in the development of +minority business and I hope the progress made in the last four years will +continue. + +II. CREATING ENERGY SECURITY + +Since I took office, my highest legislative priorities have involved the +reorientation and redirection of U.S. energy activities and for the first +time, to establish a coordinated national energy policy. The struggle to +achieve that policy has been long and difficult, but the accomplishments of +the past four years make clear that our country is finally serious about +the problems caused by our overdependence on foreign oil. Our progress +should not be lost. We must rely on and encourage multiple forms of energy +production--coal, crude oil, natural gas, solar, nuclear, synthetics--and +energy conservation. The framework put in place over the last four years +will enable us to do this. + +NATIONAL ENERGY POLICY + +As a result of actions my Administration and the Congress have taken over +the past four years, our country finally has a national energy policy: + +Under my program of phased decontrol, domestic crude oil price controls +will end September 30, 1981. As a result exploratory drilling activities +have reached an all-time high; Prices for new natural gas are being +decontrolled under the Natural Gas Policy Act--and natural gas production +is now at an all time high; the supply shortages of several years ago have +been eliminated; The windfall profits tax on crude oil has been enacted +providing $227 billion over ten years for assistance to low-income +households, increased mass transit funding, and a massive investment in the +production and development of alternative energy sources; The Synthetic +Fuels Corporation has been established to help private companies build the +facilities to produce energy from synthetic fuels; Solar energy funding has +been quadrupled, solar energy tax credits enacted, and a Solar Energy and +Energy Conservation Bank has been established; A route has been chosen to +bring natural gas from the North Slope of Alaska to the lower 48 states; +Coal production and consumption incentives have been increased, and coal +production is now at its highest level in history; A gasoline rationing +plan has been approved by Congress for possible use in the event of a +severe energy supply shortage or interruption; Gasohol production has been +dramatically increased, with a program being put in place to produce 500 +million gallons of alcohol fuel by the end of this year--an amount that +could enable gasohol to meet the demand for 10 percent of all unleaded +gasoline; New energy conservation incentives have been provided for +individuals, businesses and communities and conservation has increased +dramatically. The U.S. has reduced oil imports by 25 percent--or 2 million +barrels per day--over the past four years. + +INCREASED DEVELOPMENT OF DOMESTIC ENERGY SOURCES + +Although it is essential that the Nation reduce its dependence on imported +fossil fuels and complete the transition to reliance on domestic renewable +sources of energy, it is also important that this transition be +accomplished in an orderly, economic, and environmentally sound manner. To +this end, the Administration has launched several initiatives. + +Leasing of oil and natural gas on federal lands, particularly the outer +continental shelf, has been accelerated at the same time as the +Administration has reformed leasing procedures through the 1978 amendments +to the Outer Continental Shelf Lands Act. In 1979 the Interior Department +held six OCS lease sales, the greatest number ever, which resulted in +federal receipts of $6.5 billion, another record. The five-year OCS Leasing +schedule was completed, requiring 36 sales over the next five years. + +Since 1971 no general federal coal lease sales were suspended. Over the +past four years the Administration has completely revised the federal coal +leasing program to bring it into compliance with the requirements of 1976 +Federal Land Planning and Management Act and other statutory provisions. +The program is designed to balance the competing interests that affect +resource development on public lands and to ensure that adequate supplies +of coal will be available to meet national needs. As a result, the first +general competitive federal coal lease sale in ten years will be held this +month. + +In July 1980, I signed into law the Energy Security Act of 1980 which +established the Synthetic Fuels Corporation. The Corporation is designed to +spur the development of commercial technologies for production of synthetic +fuels, such as liquid and gaseous fuels from coal and the production of oil +from oil shale. The Act provides the Corporation with an initial $22 +billion to accomplish these objectives. The principal purpose of the +legislation is to ensure that the nation will have available in the late +1980's the option to undertake commercial development of synthetic fuels if +that becomes necessary. The Energy Security Act also provides significant +incentives for the development of gasohol and biomass fuels, thereby +enhancing the nation's supply of alternative energy sources. + +COMMITMENT TO A SUSTAINABLE ENERGY FUTURE + +The Administration's 1977 National Energy Plan marked an historic departure +from the policies of previous Administrations. The plan stressed the +importance of both energy production and conservation to achieving our +ultimate national goal of relying primarily on secure sources of energy. +The National Energy Plan made energy conservation a cornerstone of our +national energy policy. + +In 1978, I initiated the Administration's Solar Domestic Policy Review. +This represented the first step towards widespread introduction of +renewable energy sources into the Nation's economy. As a result of the +Review, I issued the 1979 Solar Message to Congress, the first such message +in the Nation's history. The Message outlined the Administration's solar +program and established an ambitious national goal for the year 2000 of +obtaining 20 percent of this Nation's energy from solar and renewable +sources. The thrust of the federal solar program is to help industry +develop solar energy sources by emphasizing basic research and development +of solar technologies which are not currently economic, such as +photovoltaics, which generate energy directly from the sun. At the same +time, through tax incentives, education, and the Solar Energy and Energy +Conservation Bank, the solar program seeks to encourage state and local +governments, industry, and our citizens to expand their use of solar and +renewable resource technologies currently available. + +As a result of these policies and programs, the energy efficiency of the +American economy has improved markedly and investments in renewable energy +sources have grown significantly. It now takes 3 1/2 percent less energy to +produce a constant dollar of GNP than it did in January 1977. This increase +in efficiency represents a savings of over 1.3 million barrels per day of +oil equivalent, about the level of total oil production now occurring in +Alaska. Over the same period, Federal support for conservation and solar +energy has increased by more than 3000 percent, to $3.3 billion in FY 1981, +including the tax credits for solar energy and energy conservation +investments--these credits are expected to amount to $1.2 billion in FY +1981 and $1.5 billion in FY 1982. + +COMMITMENT TO NUCLEAR SAFETY AND SECURITY + +Since January 1977, significant progress has been achieved in resolving +three critical problems resulting from the use of nuclear energy: +radioactive waste management, nuclear safety and weapons proliferation. + +In 1977, the Administration announced its nuclear nonproliferation policy +and initiated the International Fuel Cycle Evaluation. In 1978, Congress +passed the Nuclear Nonproliferation Act, an historic piece of legislation. + +In February 1980, the Administration transmitted its nuclear waste +management policy to the Congress. This policy was a major advance over all +previous efforts. The principal aspects of that policy are: acknowledging +the seriousness of the problem and the numerous technical and institutional +issues; adopting a technically and environmentally conservative approach to +the first permanent repository; and providing the states with significant +involvement in nuclear waste disposal decisions by creating the State +Planning Council. While much of the plan can be and is being implemented +administratively, some new authorities are needed. The Congress should give +early priority to enacting provisions for away-from-reactor storage and the +State Planning Council. + +The accident at Three Mile Island made the nation acutely aware of the +safety risks posed by nuclear power plants. In response, the President +established the Kemeny Commission to review the accident and make +recommendations. Virtually all of the Commission's substantive +recommendations were adopted by the Administration and are now being +implemented by the Nuclear Regulatory Commission. The Congress adopted the +President's proposed plan for the Nuclear Regulatory Commission and the +Nuclear Safety Oversight Committee was established to ensure that the +Administration's decisions were implemented. + +Nuclear safety will remain a vital concern in the years ahead. We must +continue to press ahead for the safe, secure disposal of radioactive +wastes, and prevention of nuclear proliferation. + +While significant growth in foreign demand for U.S. steam coal is foreseen, +congestion must be removed at major U.S. coal exporting ports such as +Hampton Roads, Virginia, and Baltimore, Maryland. My Administration has +worked through the Interagency Coal Task Force Study to promote cooperation +and coordination of resources between shippers, railroads, vessel broker/ +operators and port operators, and to determine the most appropriate Federal +role in expanding and modernizing coal export facilities, including +dredging deeper channels at selected ports. As a result of the Task Force's +efforts, administrative steps have been taken by the Corps of Engineers to +reduce significantly the amount of time required for planning and economic +review of port dredging proposals. The Administration has also recommended +that the Congress enact legislation to give the President generic authority +to recommend appropriations for channel dredging activities. Private +industry will, of course, play the major role in developing the United +States' coal export facilities, but the government must continue to work to +facilitate transportation to foreign markets. + +III. ENHANCING BASIC HUMAN AND SOCIAL NEEDS + +For too long prior to my Administration, many of our Nation's basic human +and social needs were being ignored or handled insensitively by the Federal +government. Over the last four years, we have significantly increased +funding for many of the vital programs in these areas; developed new +programs where needs were unaddressed; targeted Federal support to those +individuals and areas most in need of our assistance; and removed barriers +that have unnecessarily kept many disadvantaged citizens from obtaining aid +for their most basic needs. + +Our record has produced clear progress in the effort to solve some of the +country's fundamental human and social problems. My Administration and the +Congress, working together, have demonstrated that government must and can +meet our citizens' basic human and social needs in a responsible and +compassionate way. + +But there is an unfinished agenda still before the Congress. If we are to +meet our obligations to help all Americans realize the dreams of sound +health care, decent housing, effective social services, a good education, +and a meaningful job, important legislation still must be enacted. National +Health Insurance, Welfare Reform, Child Health Assessment Program, are +before the Congress and I urge their passage. + +HEALTH NATIONAL HEALTH PLAN + +During my Administration, I proposed to Congress a National Health Plan +which will enable the country to reach the goal of comprehensive, universal +health care coverage. The legislation I submitted lays the foundation for +this comprehensive plan and addresses the most serious problems of health +financing and delivery. It is realistic and enactable. It does not +overpromise or overspend, and, as a result, can be the solution to the +thirty years of Congressional battles on national health insurance. My Plan +includes the following key features: + +Nearly 15 million additional poor would receive fully-subsidized +comprehensive coverage; pre-natal and delivery services are provided for +all pregnant women and coverage is provided for all acute care for infants +in their first year of life; the elderly and disabled would have a limit of +$1,250 placed on annual out-of-pocket medical expenses and would no longer +face limits on hospital coverage; all full-time employees and their +families would receive insurance against at least major medical expenses +under mandated employer coverage; Medicare and Medicaid would be combined +and expanded into an umbrella Federal program, Healthcare, for increased +program efficiency, accountability and uniformity; and strong cost +controls and health system reforms would be implemented, including +greater incentives for Health Maintenance Organizations. + +I urge the new Congress to compare my Plan with the alternatives--programs +which either do too little to improve the health care needs of Americans +most in need or programs which would impose substantial financial burdens +on the American taxpayers. I hope the Congress will see the need for and +the benefits of my Plan and work toward prompt enactment. We cannot afford +further delay in this vital area. + +HEALTH CARE COST CONTROL + +Inflation in health care costs remains unacceptably high. Throughout my +Administration, legislation to reduce health care cost inflation was one of +my highest priorities, but was not passed by the Congress. Therefore, my FY +1982 budget proposes sharing the responsibility for health care cost +control with the private sector, through voluntary hospital cost guidelines +and intensified monitoring. In the longer term, the health care +reimbursement system must be reformed. We must move away from inflationary +cost-based reimbursement and fee-for-service, and toward a system of +prospective reimbursement, under which health care providers would operate +within predetermined budgets. This reimbursement reform is essential to +ultimately control inflation in health care costs, and will be a +significant challenge to the new Congress. + +HEALTH PROMOTION AND DISEASE PREVENTION + +During my Administration, the Surgeon General released "Healthy People," a +landmark report on health promotion and disease prevention. The report +signals the growing consensus that the Nation's health strategy must be +refocused in the 1980's to emphasize the prevention of disease. +Specifically, the report lays out measurable and achieveable goals in the +reduction of mortality which can be reached by 1990. + +I urge the new Congress to endorse the principles of "Healthy People," and +to adopt the recommendations to achieve its goals. This will necessitate +adoption of a broader concept of health care, to include such areas as +environmental health, workplace health and safety, commercial product +safety, traffic safety, and health education, promotion and information. + +MATERNAL AND CHILD HEALTH + +Ensuring a healthy start in life for children remains not only a high +priority of my Administration, but also one of the most cost effective +forms of health care. + +When I took office, immunization levels for preventable childhood diseases +had fallen to 70%. As a result of a concerted nationwide effort during my +Administration, I am pleased to report that now at least 90% of children +under 15, and virtually all school-age children are immunized. In addition, +reported cases of measles and mumps are at their lowest levels ever. + +Under the National Health Plan I have proposed, there would be no +cost-sharing for prenatal and delivery services for all pregnant women and +for acute care provided to infants in their first year of life. These +preventive services have extremely high returns in terms of improved +newborn and long-term child health. + +Under the Child Health Assurance Program (CHAP) legislation which I +submitted to the Congress, and which passed the House, an additional two +million low-income children under 18 would become eligible for Medicaid +benefits, which would include special health assessments. CHAP would also +improve the continuity of care for the nearly 14 million children now +eligible for Medicaid. An additional 100,000 low-income pregnant women +would become eligible for prenatal care under the proposal. I strongly urge +the new Congress to enact CHAP and thereby provide millions of needy +children with essential health services. The legislation has had strong +bipartisan support, which should continue as the details of the bill are +completed. + +I also urge the new Congress to provide strong support for two highly +successful ongoing programs: the special supplemental food program for +women, infants and children (WIC) and Family Planning. The food supplements +under WIC have been shown to effectively prevent ill health and thereby +reduce later medical costs. The Family Planning program has been effective +at reducing unwanted pregnancies among low-income women and adolescents. + +EXPANSION OF SERVICES TO THE POOR AND UNDERSERVED + +During my Administration, health services to the poor and underserved have +been dramatically increased. The number of National Health Service Corps +(NHSC) assignees providing services in medically underserved communities +has grown from 500 in 1977 to nearly 3,000 in 1981. The population served +by the NHSC has more than tripled since 1977. The number of Community +Health Centers providing services in high priority underserved areas has +doubled during my Administration, and will serve an estimated six million +people in 1981. I strongly urge the new Congress to support these highly +successful programs. + +MENTAL HEALTH + +One of the most significant health achievements during my Administration +was the recent passage of the Mental Health Systems Act, which grew out of +recommendations of my Commission on Mental Health. I join many others in my +gratitude to the First Lady for her tireless and effective contribution to +the passage of this important legislation. + +The Act is designed to inaugurate a new era of Federal and State +partnership in the planning and provision of mental health services. In +addition, the Act specifically provides for prevention and support services +to the chronically mentally ill to prevent unnecessary institutionalization +and for the development of community-based mental health services. I urge +the new Congress to provide adequate support for the full and timely +implementation of this Act. + +HEALTH PROTECTION + +With my active support, the Congress recently passed "Medigap" legislation, +which provides for voluntary certification of health insurance policies +supplemental to Medicare, to curb widespread abuses in this area. + +In the area of toxic agent control, legislation which I submitted to the +Congress recently passed. This will provide for a "super-fund" to cover +hazardous waste cleanup costs. + +In the area of accidental injury control, we have established automobile +safety standards and increased enforcement activities with respect to the +55 MPH speed limit. By the end of the decade these actions are expected to +save over 13,000 lives and 100,000 serious injuries each year. + +I urge the new Congress to continue strong support for all these +activities. + +FOOD AND NUTRITION + +Building on the comprehensive reform of the Food Stamp Program that I +proposed and Congress passed in 1977, my Administration and the Congress +worked together in 1979 and 1980 to enact several other important changes +in the Program. These changes will further simplify administration and +reduce fraud and error, will make the program more responsive to the needs +of the elderly and disabled, and will increase the cap on allowable program +expenditures. The Food Stamp Act will expire at the end of fiscal 1981. It +is essential that the new Administration and the Congress continue this +program to ensure complete eradication of the debilitating malnutrition +witnessed and documented among thousands of children in the 1960's. + +DRUG ABUSE PREVENTION + +At the beginning of my Administration there were over a half million heroin +addicts in the United States. Our continued emphasis on reducing the supply +of heroin, as well as providing treatment and rehabilitation to its +victims, has reduced the heroin addict population, reduced the number of +heroin overdose deaths by 80%, and reduced the number of heroin related +injuries by 50%. We have also seen and encouraged a national movement of +parents and citizens committed to reversing the very serious and disturbing +trends of adolescent drug abuse. + +Drug abuse in many forms will continue to detract, however, from the +quality of life of many Americans. To prevent that, I see four great +challenges in the years ahead. First, we must deal aggressively with the +supplies of illegal drugs at their source, through joint crop destruction +programs with foreign nations and increased law enforcement and border +interdiction. Second, we must look to citizens and parents across the +country to help educate the increasing numbers of American youth who are +experimenting with drugs to the dangers of drug abuse. Education is a key +factor in reducing drug abuse. Third, we must focus our efforts on drug and +alcohol abuse in the workplace for not only does this abuse contribute to +low productivity but it also destroys the satisfaction and sense of purpose +all Americans can gain from the work experience. Fourth, we need a change +in attitude, from an attitude which condones the casual use of drugs to one +that recognizes the appropriate use of drugs for medical purposes and +condemns the inappropriate and harmful abuse of drugs. I hope the Congress +and the new Administration will take action to meet each of these +challenges. + +EDUCATION + +The American people have always recognized that education is one of the +soundest investments they can make. The dividends are reflected in every +dimension of our national life--from the strength of our economy and +national security to the vitality of our music, art, and literature. Among +the accomplishments that have given me the most satisfaction over the last +four years are the contributions that my Administration has been able to +make to the well-being of students and educators throughout the country. + +This Administration has collaborated successfully with the Congress on +landmark education legislation. Working with the Congressional leadership, +my Administration spotlighted the importance of education by creating a new +Department of Education. The Department has given education a stronger +voice at the Federal level, while at the same time reserving the actual +control and operation of education to states, localities, and private +institutions. The Department has successfully combined nearly 150 Federal +education programs into a cohesive, streamlined organization that is more +responsive to the needs of educators and students. The Department has made +strides to cut red tape and paperwork and thereby to make the flow of +Federal dollars to school districts and institutions of higher education +more efficient. It is crucial that the Department be kept intact and +strengthened. + +Our collaboration with the Congress has resulted in numerous other +important legislative accomplishments for education. A little over two +years ago, I signed into law on the same day two major bills--one +benefiting elementary and secondary education and the other, postsecondary +education. The Education Amendments of 1978 embodied nearly all of my +Administration's proposals for improvements in the Elementary and Secondary +Education Act, including important new programs to improve students' +achievement in the basic skills and to aid school districts with +exceptionally high concentrations of children from low-income families. The +Middle Income Student Assistance Act, legislation jointly sponsored by this +Administration and the Congressional leadership, expanded eligibility for +need-based Basic Educational Opportunity Grants to approximately one-third +of the students enrolled in post-secondary education and made many more +students eligible for the first time for other types of grants, work-study, +and loans. + +Just three and a half months ago, my Administration and the Congress +successfully concluded over two years of work on a major reauthorization +bill that further expands benefits to postsecondary education. Reflected in +the Education Amendments of 1980 are major Administration recommendations +for improvements in the Higher Education Act--including proposals for +better loan access for students; a new parent loan program; simplified +application procedures for student financial aid; a strengthened Federal +commitment to developing colleges, particularly the historically Black +institutions; a new authorization for equipment and facilities +modernization funding for the nation's major research universities; and +revitalized international education programs. + +Supplementing these legislative accomplishments have been important +administrative actions aimed at reducing paperwork and simplifying +regulations associated with Federal education programs. We also launched +major initiatives to reduce the backlog of defaulted student loans and +otherwise to curb fraud, abuse, and waste in education programs. + +To insure that the education enterprise is ready to meet the scientific and +technological changes of the future, we undertook a major study of the +status of science and engineering education throughout the nation. I hope +that the findings from this report will serve as a springboard for needed +reforms at all levels of education. + +I am proud that this Administration has been able to provide the financial +means to realize many of our legislative and administrative goals. Compared +to the previous administration's last budget, I have requested the largest +overall increase in Federal funding for education in our nation's history. +My budget requests have been particularly sensitive to the needs of special +populations like minorities, women, the educationally and economically +disadvantaged, the handicapped, and students with limited English-speaking +ability. At the same time, I have requested significant increases for many +programs designed to enhance the quality of American education, including +programs relating to important areas as diverse as international education, +research libraries, museums, and teacher centers. + +Last year, I proposed to the Congress a major legislative initiative that +would direct $2 billion into education and job training programs designed +to alleviate youth unemployment through improved linkages between the +schools and the work place. This legislation generated bipartisan support; +but unfortunately, action on it was not completed in the final, rushed days +of the 96th Congress. I urge the new Congress--as it undertakes broad +efforts to strengthen the economy as well as more specific tasks like +reauthorizing the Vocational Education Act--to make the needs of our +nation's unemployed youth a top priority for action. Only by combining a +basic skills education program together with work training and employment +incentives can we make substantial progress in eliminating one of the most +severe social problems in our nation--youth unemployment, particularly +among minorities. I am proud of the progress already made through passage +of the Youth Employment and Demonstration Project Act of 1977 and the +substantial increase in our investment in youth employment programs. The +new legislation would cap these efforts. + +INCOME SECURITY SOCIAL SECURITY + +One of the highest priorities of my Administration has been to continue the +tradition of effectiveness and efficiency widely associated with the social +security program, and to assure present and future beneficiaries that they +will receive their benefits as expected. The earned benefits that are paid +monthly to retired and disabled American workers and their families provide +a significant measure of economic protection to millions of people who +might otherwise face retirement or possible disability with fear. I have +enacted changes to improve the benefits of many social security +beneficiaries during my years as President. + +The last four years have presented a special set of concerns over the +financial stability of the social security system. Shortly after taking +office I proposed and Congress enacted legislation to protect the stability +of the old age and survivors trust fund and prevent the imminent exhaustion +of the disability insurance trust fund, and to correct a flaw in the +benefit formula that was threatening the long run health of the entire +social security system. The actions taken by the Congress at my request +helped stabilize the system. That legislation was later complemented by the +Disability Insurance Amendments of 1980 which further bolstered the +disability insurance program, and reduced certain inequities among +beneficiaries. + +My commitment to the essential retirement and disability protection +provided to 35 million people each month has been demonstrated by the fact +that without interruption those beneficiaries have continued to receive +their social security benefits, including annual cost of living increases. +Changing and unpredictable economic circumstances require that we continue +to monitor the financial stability of the social security system. To +correct anticipated short-term strains on the system, I proposed last year +that the three funds be allowed to borrow from one another, and I urge the +Congress again this year to adopt such interfund borrowing. To further +strengthen the social security system and provide a greater degree of +assurance to beneficiaries, given projected future economic uncertainties, +additional action should be taken. Among the additional financing options +available are borrowing from the general fund, financing half of the +hospital insurance fund with general revenues, and increasing the payroll +tax rate. The latter option is particularly unpalatable given the +significant increase in the tax rate already mandated in law. + +This Administration continues to oppose cuts in basic social security +benefits and taxing social security benefits. The Administration continues +to support annual indexing of social security benefits. + +WELFARE REFORM + +In 1979 I proposed a welfare reform package which offers solutions to some +of the most urgent problems in our welfare system. This proposal is +embodied in two bills, The Work and Training Opportunities Act and The +Social Welfare Reform Amendments Act. The House passed the second of these +two proposals. Within the framework of our present welfare system, my +reform proposals offer achievable means to increase self-sufficiency +through work rather than welfare, more adequate assistance to people unable +to work, the removal of inequities in coverage under current programs, and +fiscal relief needed by States and localities. + +Our current welfare system is long overdue for serious reform; the system +is wasteful and not fully effective. The legislation I have proposed will +help eliminate inequities by establishing a national minimum benefit, and +by directly relating benefit levels to the poverty threshold. It will +reduce program complexity, which leads to inefficiency and waste, by +simplifying and coordinating administration among different programs. + +I urge the Congress to take action in this area along the lines I have +recommended. + +CHILD WELFARE + +My Administration has worked closely with the Congress on legislation which +is designed to improve greatly the child welfare services and foster care +programs and to create a Federal system of adoption assistance. These +improvements will be achieved with the recent enactment of H.R. 3434, the +Adoption Assistance and Child Welfare Act of 1980. The well-being of +children in need of homes and their permanent placement have been a primary +concern of my Administration. This legislation will ensure that children +are not lost in the foster care system, but instead will be returned to +their families where possible or placed in permanent adoptive homes. + +LOW-INCOME ENERGY ASSISTANCE + +In 1979 I proposed a program to provide an annual total of $1.6 billion to +low-income households which are hardest hit by rising energy bills. With +the cooperation of Congress, we were able to move quickly to provide +assistance to eligible households in time to meet their winter heating +bills. + +In response to the extreme heat conditions affecting many parts of the +country during 1980, I directed the Community Services Administration to +make available over $27 million to assist low-income individuals, +especially the elderly, facing life threatening circumstances due to +extreme heat. + +Congress amended and reauthorized the low-income energy assistance program +for fiscal year 1981, and provided $1.85 billion to meet anticipated +increasing need. The need for a program to help low-income households with +rising energy expenses will not abate in the near future. The low-income +energy assistance program should be reauthorized to meet those needs. + +HOUSING + +For the past 14 months, high interest rates have had a severe impact on the +nation's housing market. Yet the current pressures and uncertainties should +not obscure the achievements of the past four years. + +Working with the Congress, the regulatory agencies, and the financial +community, my Administration has brought about an expanded and steadier +flow of funds into home mortgages. Deregulation of the interest rates +payable by depository institutions, the evolution of variable and +renegotiated rate mortgages, development of high yielding savings +certificates, and expansion of the secondary mortgage market have all +increased housing's ability to attract capital and have assured that +mortgage money would not be cut off when interest rates rose. These actions +will diminish the cyclicality of the housing industry. Further, we have +secured legislation updating the Federal Government's emergency authority +to provide support for the housing industry through the Brooke-Cranston +program, and creating a new Section 235 housing stimulus program. These +tools will enable the Federal Government to deal quickly and effectively +with serious distress in this critical industry. + +We have also worked to expand homeownership opportunities for Americans. By +using innovative financing mechanisms, such as the graduated payment +mortgage, we have increased the access of middle income families to housing +credit. By revitalizing the Section 235 program, we have enabled nearly +100,000 moderate income households to purchase new homes. By reducing +paperwork and regulation in Federal programs, and by working with State and +local governments to ease the regulatory burden, we have helped to hold +down housing costs and produce affordable housing. + +As a result of these governmentwide efforts, 5 1/2 million more American +families bought homes in the past four years than in any equivalent period +in history. And more than 7 million homes have begun construction during my +Administration, 1 million more than in the previous four years. + +We have devoted particular effort to meeting the housing needs of low and +moderate income families. In the past four years, more than 1 million +subsidized units have been made available for occupancy by lower income +Americans and more than 600,000 assisted units have gone into construction. +In addition, we have undertaken a series of measures to revitalize and +preserve the nation's 2 million units of public and assisted housing. + +For Fiscal Year 1982, I am proposing to continue our commitment to lower +income housing. I am requesting funds to support 260,000 units of Section 8 +and public housing, maintaining these programs at the level provided by +Congress in Fiscal 1981. + +While we have made progress in the past four years, in the future there are +reasons for concern. Home price inflation and high interest rates threaten +to put homeownership out of reach for first-time homebuyers. Lower income +households, the elderly and those dependent upon rental housing face rising +rents, low levels of rental housing construction by historic standards, and +the threat of displacement due to conversion to condominiums and other +factors. Housing will face strong competition for investment capital from +the industrial sector generally and the energy industries, in particular. + +To address these issues, I appointed a Presidential Task Force and Advisory +Group last October. While this effort will not proceed due to the election +result, I hope the incoming Administration will proceed with a similar +venture. + +The most important action government can take to meet America's housing +needs is to restore stability to the economy and bring down the rate of +inflation. Inflation has driven up home prices, operating costs and +interest rates. Market uncertainty about inflation has contributed to the +instability in interest rates, which has been an added burden to +homebuilders and homebuyers alike. By making a long-term commitment to +provide a framework for greater investment, sustained economic growth, and +price stability, my Administration has begun the work of creating a healthy +environment for housing. + +TRANSPORTATION + +With the passage of the Airline Deregulation Act of 1978, the Motor Carrier +Act of 1980, and the Harley O. Staggers Rail Act of 1980, my +Administration, working with the Congress, has initiated a new era of +reduced regulation of transportation industries. Deregulation will lead to +increased productivity and operating efficiencies in the industries +involved, and stimulate price and service competition, to the benefit of +consumers generally. I urge the new Administration to continue our efforts +on behalf of deregulation legislation for the intercity passenger bus +industry as well. + +In the coming decade, the most significant challenge facing the nation in +transportation services will be to improve a deteriorating physical +infrastructure of roadways, railroads, waterways and mass transit systems, +in order to conserve costly energy supplies while promoting effective +transportation services. + +HIGHWAYS + +Our vast network of highways, which account for 90 percent of travel and 80 +percent by value of freight traffic goods movement, is deteriorating. If +current trends continue, a major proportion of the Interstate pavement will +have deteriorated by the end of the 1980's. + +Arresting the deterioration of the nation's system of highways is a high +priority objective for the 1980's. We must reorient the Federal mission +from major new construction projects to the stewardship of the existing +Interstate Highway System. Interstate gaps should be judged on the +connections they make and on their compatibility with community needs. + +During this decade, highway investments will be needed to increase +productivity, particularly in the elimination of bottlenecks, provide more +efficient connections to ports and seek low-cost solutions to traffic +demand. + +My Administration has therefore recommended redefining completion of the +Interstate system, consolidating over 27 categorical assistance programs +into nine, and initiating a major repair and rehabilitation program for +segments of the Interstate system. This effort should help maintain the +condition and performance of the Nation's highways, particularly the +Interstate and primary system; provide a realistic means to complete the +Interstate system by 1990; ensure better program delivery through +consolidation, and assist urban revitalization. In addition, the Congress +must address the urgent funding problems of the highway trust fund, and the +need to generate greater revenues. + +MASS TRANSIT + +In the past decade the nation's public transit systems' ridership increased +at an annual average of 1.1% each year in the 1970's (6.9% in 1979). +Continued increases in the cost of fuel are expected to make transit a +growing part of the nation's transportation system. + +As a result, my Administration projected a ten year, $43 billion program to +increase mass transit capacity by 50 percent, and promote more energy +efficient vehicle uses in the next decade. The first part of this proposal +was the five year, $24.7 billion Urban Mass Transportation Administration +reauthorization legislation I sent to the Congress in March, 1980. I urge +the 97th Congress to quickly enact this or similar legislation in 1981. + +My Administration was also the first to have proposed and signed into law a +non-urban formula grant program to assist rural areas and small communities +with public transportation programs to end their dependence on the +automobile, promote energy conservation and efficiency, and provide +transportation services to impoverished rural communities. + +A principal need of the 1980's will be maintaining mobility for all +segments of the population in the face of severely increasing +transportation costs and uncertainty of fuel supplies. We must improve the +flexibility of our transportation system and offer greater choice and +diversity in transportation services. While the private automobile will +continue to be the principal means of transportation for many Americans, +public transportation can become an increasingly attractive alternative. +We, therefore, want to explore a variety of paratransit modes, various +types of buses, modern rapid transit, regional rail systems and light rail +systems. + +Highway planning and transit planning must be integrated and related to +State, regional, district and neighborhood planning efforts now in place or +emerging. Low density development and land use threaten the fiscal capacity +of many communities to support needed services and infrastructure. + +ELDERLY AND HANDICAPPED TRANSPORTATION + +Transportation policies in the 1980's must pay increasing attention to the +needs of the elderly and handicapped. By 1990, the number of people over 65 +will have grown from today's 19 million to 27 million. During the same +period, the number of handicapped--people who have difficulty using +transit as well as autos, including the elderly--is expected to increase +from 9 to 11 million, making up 4.5 percent of the population. + +We must not retreat from a policy that affords a significant and growing +portion of our population accessible public transportation while +recognizing that the handicapped are a diverse group and will need +flexible, door-to-door service where regular public transportation will not +do the job. + +RAILROADS + +In addition, the Federal government must reassess the appropriate Federal +role of support for passenger and freight rail services such as Amtrak and +Conrail. Our goal through federal assistance should be to maintain and +enhance adequate rail service, where it is not otherwise available to needy +communities. But Federal subsidies must be closely scrutinized to be sure +they are a stimulus to, and not a replacement for, private investment and +initiative. Federal assistance cannot mean permanent subsidies for +unprofitable operations. + +WATERWAYS AND RURAL TRANSPORTATION + +There is a growing need in rural and small communities for improved +transportation services. Rail freight service to many communities has +declined as railroads abandon unproductive branch lines. At the same time, +rural roads are often inadequate to handle large, heavily-loaded trucks. +The increased demand for "harvest to harbor" service has also placed an +increased burden on rural transportation systems, while bottlenecks along +the Mississippi River delay grain shipments to the Gulf of Mexico. + +We have made some progress: + +--To further develop the nation's waterways, my Administration began +construction of a new 1,200 foot lock at the site of Lock and Dam 26 on the +Mississippi River. When opened in 1987, the new lock will have a capacity +of 86 million tons per year, an 18 percent increase over the present +system. The U.S. Army Corps of Engineers has also undertaken studies to +assess the feasibility of expanding the Bonneville Locks. Rehabilitation of +John Day Lock was begun in 1980 and should be completed in 1982. My +Administration also supports the completion of the Upper Mississippi River +Master Plan to determine the feasibility of constructing a second lock at +Alton, Illinois. These efforts will help alleviate delays in transporting +corn, soybeans and other goods along the Mississippi River to the Gulf of +Mexico. + +--The Department of Transportation's new Small Community and Rural +Transportation Policy will target federal assistance for passenger +transportation, roads and highways, truck service, and railroad freight +service to rural areas. This policy implements and expands upon the earlier +White House Initiative, "Improving Transportation in Rural America," +announced in June, 1979, and the President's "Small Community and Rural +Development Policy" announced in December, 1979. The Congress should seek +ways to balance rail branch line abandonment with the service needs of +rural and farm communities, provide financial assistance to rail branch +line rehabilitation where appropriate, assist shippers to adjust to rail +branch line abandonment where it takes place, and help make it possible for +trucking firms to serve light density markets with dependable and efficient +trucking services. + +MARITIME POLICY + +During my Administration I have sought to ensure that the U.S. maritime +industry will not have to function at an unfair competitive disadvantage in +the international market. As I indicated in my maritime policy statement to +the Congress in July, 1979, the American merchant marine is vital to our +Nation's welfare, and Federal actions should promote rather than harm it. +In pursuit of this objective, I signed into law the Controlled Carrier Act +of 1978, authorizing the Federal Maritime Commission to regulate certain +rate cutting practices of some state-controlled carriers, and recently +signed a bilateral maritime agreement with the People's Republic of China +that will expand the access of American ships to 20 specified Chinese +ports, and set aside for American-flag ships a substantial share (at least +one-third) of the cargo between our countries. This agreement should +officially foster expanded U.S. and Chinese shipping services linking the +two countries, and will provide further momentum to the growth of +Sino-American trade. + +There is also a need to modernize and expand the dry bulk segment of our +fleet. Our heavy dependence on foreign carriage of U.S.-bulk cargoes +deprives the U.S. economy of seafaring and shipbuilding jobs, adds to the +balance-of-payments deficit, deprives the Government of substantial tax +revenues, and leaves the United States dependent on foreign-flag shipping +for a continued supply of raw materials to support the civil economy and +war production in time of war. + +I therefore sent to the Congress proposed legislation to strengthen this +woefully weak segment of the U.S.-flag fleet by removing certain +disincentives to U.S. construction of dry bulkers and their operation under +U.S. registry. Enactment of this proposed legislation would establish the +basis for accelerating the rebuilding of the U.S.-flag dry bulk fleet +toward a level commensurate with the position of the United States as the +world's leading bulk trading country. + +During the past year the Administration has stated its support for +legislation that would provide specific Federal assistance for the +installation of fuel-efficient engines in existing American ships, and +would strengthen this country's shipbuilding mobilization base. +Strengthening the fleet is important, but we must also maintain our +shipbuilding base for future ship construction. + +Provisions in existing laws calling for substantial or exclusive use of +American-flag vessels to carry cargoes generated by the Government must be +vigorously pursued. + +I have therefore supported requirements that 50 percent of oil purchased +for the strategic petroleum reserve be transported in U.S.-flag vessels, +that the Cargo Preference Act be applied to materials furnished for the +U.S. assisted construction of air bases in Israel, and to cargoes +transported pursuant to the Chrysler Corporation Loan Guarantee Act. In +addition, the deep Seabed Hard Mineral Resources Act requires that at least +one ore carrier per mine site be a U.S.-flag vessel. + +Much has been done, and much remains to be done. The FY 1982 budget +includes a $107 million authorization for Construction Differential Subsidy +("CDS") funds which, added to the unobligated CDS balance of $100 million +from 1980, and the recently enacted $135 million 1981 authorization, will +provide an average of $171 million in CDS funds in 1981 and 1982. + +COAL EXPORT POLICY + +While significant growth in foreign demand for U.S. steam coal is foreseen, +congestion at major U.S. coal exporting ports such as Hampton Roads, +Virginia, and Baltimore, Maryland, could delay and impede exports. + +My Administration has worked through the Interagency Coal Task Force Study, +which I created, to promote cooperation and coordination of resources +between shippers, railroads, vessel broker/ operators and port operators, +and to determine the most appropriate Federal role in expanding and +modernizing coal export facilities, including dredging deeper channels at +selected ports. + +Some progress has already been made. In addition to action taken by +transshippers to reduce the number of coal classifications used whenever +possible, by the Norfolk and Western Railroad to upgrade its computer +capability to quickly inventory its coal cars in its yards, and by the +Chessie Railroad which is reactivating Pier 15 in Newport News and has +established a berth near its Curtis Bay Pier in Baltimore to decrease +delays in vessel berthing, public activities will include: + +--A $26.5 million plan developed by the State of Pennsylvania and Conrail +to increase Conrail's coal handling capacity at Philadelphia; + +--A proposal by the State of Virginia to construct a steam coal port on +the Craney Island Disposal area in Portsmouth harbor; + +--Plans by Mobile, Alabama, which operates the only publicly owned coal +terminal in the U.S. to enlarge its capacity at McDuffie Island to 10 +million tons ground storage and 100 car unit train unloading capability; + +--Development at New Orleans of steam coal facilities that are expected to +add over 20 million tons of annual capacity by 1983; and + +--The Corps of Engineers, working with other interested Federal agencies, +will determine which ports should be dredged, to what depth and on what +schedule, in order to accommodate larger coal carrying vessels. + +Private industry will, of course, play a major role in developing the +United States' coal export facilities. The new Administration should +continue to work to eliminate transportation bottlenecks that impede our +access to foreign markets. + +Special Needs + +WOMEN + +The past four years have been years of rapid advancement for women. Our +focus has been two-fold: to provide American women with a full range of +opportunities and to make them a part of the mainstream of every aspect of +our national life and leadership. + +I have appointed a record number of women to judgeships and to top +government posts. Fully 22 percent of all my appointees are women, and I +nominated 41 of the 46 women who sit on the Federal bench today. For the +first time in our history, women occupy policymaking positions at the +highest level of every Federal agency and department and have demonstrated +their ability to serve our citizens well. + +We have strengthened the rights of employed women by consolidating and +strengthening enforcement of sex discrimination laws under the EEOC, by +expanding employment rights of pregnant women through the Pregnancy +Disability Bill, and by increasing federal employment opportunities for +women through civil service reform, and flexi-time and part-time +employment. + +By executive order, I created the first national program to provide women +businessowners with technical assistance, grants, loans, and improved +access to federal contracts. + +We have been sensitive to the needs of women who are homemakers. I +established an Office of Families within HHS and sponsored the White House +Conference on Families. We initiated a program targeting CETA funds to help +displaced homemakers. The Social Security system was amended to eliminate +the widow's penalty and a comprehensive study of discriminatory provisions +and possible changes was presented to Congress. Legislation was passed to +give divorced spouses of foreign service officers rights to share in +pension benefits. + +We created an office on domestic violence within HHS to coordinate the 12 +agencies that now have domestic violence relief programs, and to distribute +information on the problem and the services available to victims. + +Despite a stringent budget for FY 1981, the Administration consistently +supported the Women's Educational Equity Act and family planning +activities, as well as other programs that affect women, such as food +stamps, WIC, and social security. + +We have been concerned not only about the American woman's opportunities, +but ensuring equality for women around the world. In November, 1980, I sent +to the Senate the Convention on the Elimination of All Forms of +Discrimination Against Women. This United Nations document is the most +comprehensive and detailed international agreement which seeks the +advancement of women. + +On women's issues, I have sought the counsel of men and women in and out of +government and from all regions of our country. I established two panels-- +the President's Advisory Committee for Women and the Interdepartmental Task +Force on Women--to advise me on these issues. The mandate for both groups +expired on December 31, but they have left behind a comprehensive review of +the status of women in our society today. That review provides excellent +guidance for the work remaining in our battle against sex discrimination. + +Even though we have made progress, much remains on the agenda for women. I +remain committed to the Equal Rights Amendment and will continue to work +for its passage. It is essential to the goal of bringing America's women +fully into the mainstream of American life that the ERA be ratified. + +The efforts begun for women in employment, business and education should be +continued and strengthened. Money should be available to states to +establish programs to help the victims of domestic violence. Congress +should pass a national health care plan and a welfare reform program, and +these measures should reflect the needs of women. + +The talents of women should continue to be used to the fullest inside and +outside of government, and efforts should continue to see that they have +the widest range of opportunities and options. + +HANDICAPPED + +I hope that my Administration will be remembered in this area for leading +the way toward full civil rights for handicapped Americans. When I took +office, no federal agency had yet issued 504 regulations. As I leave +office, this first step by every major agency and department in the federal +government is almost complete. But it is only a first step. The years ahead +will require steadfast dedication by the President to protect and promote +these precious rights in the classroom, in the workplace, and in all public +facilities so that handicapped individuals may join the American mainstream +and contribute to the fullest their resources and talents to our economic +and social life. + +Just as we supported, in an unprecedented way, the civil rights of disabled +persons in schools and in the workplace, other initiatives in health +prevention, such as our immunization and nutrition programs for young +children and new intense efforts to reverse spinal cord injury, must +continue so that the incidence of disability continues to decline. + +This year is the U.N.-declared International Year of Disabled Persons. We +are organizing activities to celebrate and promote this important +commemorative year within the government as well as in cooperation with +private sector efforts in this country and around the world. The +International Year will give our country the opportunity to recognize the +talents and capabilities of our fellow citizens with disabilities. We can +also share our rehabilitation and treatment skills with other countries and +learn from them as well. I am proud that the United States leads the world +in mainstreaming and treating disabled people. However, we have a long way +to go before all psychological and physical barriers to disabled people are +torn down and they can be full participants in our American way of life. We +must pledge our full commitment to this goal during the International Year. + +FAMILIES + +Because of my concern for American families, my Administration convened +last year the first White House Conference on Families which involved seven +national hearings, over 506 state and local events, three White House +Conferences, and the direct participation of more than 125,000 citizens. +The Conference reaffirmed the centrality of families in our lives and +nation but documented problems American families face as well. We also +established the Office of Families within the Department of Health and +Human Services to review government policies and programs that affect +families. + +I expect the departments and agencies within the executive branch of the +Federal government as well as Members of Congress, corporate and business +leaders, and State and local officials across the country, to study closely +the recommendations of the White House Conference and implement them +appropriately. As public policy is developed and implemented by the Federal +government, cognizance of the work of the Conference should be taken as a +pragmatic and essential step. + +The Conference has done a good job of establishing an agenda for action to +assure that the policies of the Federal government are more sensitive in +their impact on families. I hope the Congress will review and seriously +consider the Conference's recommendations. + +OLDER AMERICANS + +My Administration has taken great strides toward solving the difficult +problems faced by older Americans. Early in my term we worked successfully +with the Congress to assure adequate revenues for the Social Security Trust +Funds. And last year the strength of the Social Security System was +strengthened by legislation I proposed to permit borrowing among the +separate trust funds. I have also signed into law legislation prohibiting +employers from requiring retirement prior to age 70, and removing mandatory +retirement for most Federal employees. In addition, my Administration +worked very closely with Congress to amend the Older Americans Act in a way +that has already improved administration of its housing, social services, +food delivery, and employment programs. + +This year, I will be submitting to Congress a budget which again +demonstrates my commitment to programs for the elderly. It will include, as +my previous budgets have, increased funding for nutrition, senior centers +and home health care, and will focus added resources on the needs of older +Americans. + +With the 1981 White House Conference on Aging approaching, I hope the new +Administration will make every effort to assure an effective and useful +conference. This Conference should enable older Americans to voice their +concerns and give us guidance in our continued efforts to ensure the +quality of life so richly deserved by our senior citizens. + +REFUGEES + +We cannot hope to build a just and humane society at home if we ignore the +humanitarian claims of refugees, their lives at stake, who have nowhere +else to turn. Our country can be proud that hundreds of thousands of people +around the world would risk everything they have--including their own +lives--to come to our country. + +This Administration initiated and implemented the first comprehensive +reform of our refugee and immigration policies in over 25 years. We also +established the first refugee coordination office in the Department of +State under the leadership of a special ambassador and coordinator for +refugee affairs and programs. The new legislation and the coordinator's +office will bring common sense and consolidation to our Nation's previously +fragmented, inconsistent, and in many ways, outdated, refugee and +immigration policies. + +With the unexpected arrival of thousands of Cubans and Haitians who sought +refuge in our country last year, outside of our regular immigration and +refugee admissions process, our country and its government were tested in +being compassionate and responsive to a major human emergency. Because we +had taken steps to reorganize our refugee programs, we met that test +successfully. I am proud that the American people responded to this crisis +with their traditional good will and hospitality. Also, we would never have +been able to handle this unprecedented emergency without the efforts of the +private resettlement agencies who have always been there to help refugees +in crises. + +Immigrants to this country always contribute more toward making our country +stronger than they ever take from the system. I am confident that the +newest arrivals to our country will carry on this tradition. + +While we must remain committed to aiding and assisting those who come to +our shores, at the same time we must uphold our immigration and refugee +policies and provide adequate enforcement resources. As a result of our +enforcement policy, the illegal flow from Cuba has been halted and an +orderly process has been initiated to make certain that our refugee and +immigration laws are honored. + +This year the Select Commission on Immigration and Refugee Policy will +complete its work and forward its advice and recommendations. I hope that +the recommendations will be carefully considered by the new Administration +and the Congress, for it is clear that we must take additional action to +keep our immigration policy responsive to emergencies and ever changing +times. + +VETERANS + +This country and its leadership has a continuing and unique obligation to +the men and women who served their nation in the armed forces and help +maintain or restore peace in the world. + +My commitment to veterans, as evidenced by my record, is characterized by a +conscientious and consistent emphasis in these general areas: + +First, we have worked to honor the Vietnam veteran. During my +Administration, and under the leadership of VA Administrator Max Cleland, I +was proud to lead our country in an overdue acknowledgement of our Nation's +gratitude to the men and women who served their country during the bitter +war in Southeast Asia. Their homecoming was deferred and seemed doomed to +be ignored. Our country has matured in the last four years and at long last +we were able to separate the war from the warrior and honor these veterans. +But with our acknowledgement of their service goes an understanding that +some Vietnam veterans have unique needs and problems. + +My Administration was able to launch a long sought after psychological +readjustment and outreach program, unprecedented in its popularity, +sensitivity and success. This program must be continued. The Administration +has also grappled with the difficult questions posed by some veterans who +served in Southeast Asia and were exposed to potentially harmful +substances, including the herbicide known as Agent Orange. We have launched +scientific inquiries that should answer many veterans' questions about +their health and should provide the basis for establishing sound +compensation policy. We cannot rest until their concerns are dealt with in +a sensitive, expeditious and compassionate fashion. + +Second, we have focused the VA health care system in the needs of the +service-connected disabled veteran. We initiated and are implementing the +first reform of the VA vocational rehabilitation system since its inception +in 1943. Also, my Administration was the first to seek a cost-of-living +increase for the recipients of VA compensation every year. My last budget +also makes such a request. The Administration also launched the Disabled +Veterans Outreach Program in the Department of Labor which has successfully +placed disabled veterans in jobs. Services provided by the VA health care +system will be further targeted to the special needs of disabled veterans +during the coming year. + +Third, the VA health care system, the largest in the free world, has +maintained its independence and high quality during my Administration. We +have made the system more efficient and have therefore treated more +veterans than ever before by concentrating on out-patient care and through +modern management improvements. As the median age of the American veteran +population increases, we must concentrate on further changes within the VA +system to keep it independent and to serve as a model to the nation and to +the world as a center for research, treatment and rehabilitation. + +Government Assistance + +GENERAL AID TO STATE AND LOCAL GOVERNMENTS + +Since taking office, I have been strongly committed to strengthening the +fiscal and economic condition of our Nation's State and local governments. +I have accomplished this goal by encouraging economic development of local +communities, and by supporting the General Revenue Sharing and other +essential grant-in-aid programs. + +GRANTS-IN-AID TO STATES AND LOCALITIES + +During my Administration, total grants-in-aid to State and local +governments have increased by more than 40 percent, from $68 billion in +Fiscal Year 1977 to $96 billion in Fiscal Year 1981. This significant +increase in aid has allowed States and localities to maintain services that +are essential to their citizens without imposing onerous tax burdens. It +also has allowed us to establish an unprecedented partnership between the +leaders of the Federal government and State and local government elected +officials. + +GENERAL REVENUE SHARING + +Last year Congress enacted legislation that extends the General Revenue +Sharing program for three more years. This program is the cornerstone of +our efforts to maintain the fiscal health of our Nation's local government. +It will provide $4.6 billion in each of the next three years to cities, +counties and towns. This program is essential to the continued ability of +our local governments to provide essential police, fire and sanitation +services. + +This legislation renewing GRS will be the cornerstone of +Federal-State-local government relations in the 1980's. This policy will +emphasize the need for all levels of government to cooperate in order to +meet the needs of the most fiscally strained cities and counties, and also +will emphasize the important role that GRS can play in forging this +partnership. I am grateful that Congress moved quickly to assure that our +Nation's localities can begin the 1980's in sound fiscal condition. + +COUNTER-CYCLICAL ASSISTANCE + +Last year, I proposed that Congress enact a $1 billion counter-cyclical +fiscal assistance program to protect States and localities from unexpected +changes in the national economy. This program unfortunately was not enacted +by the [full] Congress. I, therefore, have not included funding for +counter-cyclical aid in my Fiscal Year 1982 budget. Nevertheless, I urge +Congress to enact a permanent stand-by counter-cyclical program, so that +States and cities can be protected during the next economic downturn. + +URBAN POLICY + +Three years ago, I proposed the Nation's first comprehensive urban policy. +That policy involved more than one hundred improvements in existing Federal +programs, four new Executive Orders and nineteen pieces of urban-oriented +legislation. With Congress' cooperation, sixteen of these bills have now +been signed into law. + +ECONOMIC DEVELOPMENT + +One of the principal goals of my domestic policy has been to strengthen the +private sector economic base of our Nation's economically troubled urban +and rural areas. With Congress' cooperation, we have substantially expanded +the Federal government's economic development programs and provided new tax +incentives for private investment in urban and rural communities. These +programs have helped many communities to attract new private sector jobs +and investments and to retain the jobs and investments that already are in +place. + +When I took office, the Federal government was spending less than $300 +million annually on economic development programs, and only $60 million of +those funds in our Nation's urban areas. Since that time, we have created +the Urban Development Action Grant (UDAG) program and substantially +expanded the economic development programs in the Commerce Department. My +FY 1982 budget requests more than $1.5 billion for economic development +grants, loans and interest subsidies and almost $1.5 billion for loan +guarantees. Approximately 60 percent of these funds will be spent in our +Nation's urban areas. In addition, we have extended the 10 percent +investment credit to include rehabilitation of existing industrial +facilities as well as new construction. + +I continue to believe that the development of private sector investment and +jobs is the key to revitalizing our Nation's economically depressed urban +and rural areas. To ensure that the necessary economic development goes +forward, the Congress must continue to provide strong support for the UDAG +program and the programs for the Economic Development Administration. Those +programs provide a foundation for the economic development of our Nation in +the 1980's. + +COMMUNITY DEVELOPMENT + +The partnership among Federal, State and local governments to revitalize +our Nation's communities has been a high priority of my Administration. +When I took office, I proposed a substantial expansion of the Community +Development Block Grant (CDBG) program and the enactment of a new $400 +million Urban Development Action Grant (UDAG) program. Both of these +programs have provided essential community and economic development +assistance to our Nation's cities and counties. + +Last year, Congress reauthorized both the CDBG and UDAG programs. The CDBG +program was reauthorized for three more years with annual funding increases +of $150 million, and the UDAG program was extended for three years at the +current funding level of $675 million annually. My 1982 budget requests +full funding for both of these programs. These actions should help our +Nation's cities and counties to continue the progress they have made in the +last three years. + +NEIGHBORHOODS + +During my Administration we have taken numerous positive steps to achieve a +full partnership of neighborhood organizations and government at all +levels. We have successfully fought against red lining and housing +discrimination. We created innovative Self Help funding and technical +resource transfer mechanisms. We have created unique methods of access for +neighborhood organizations to have a participating role in Federal and +State government decision-making. Neighborhood based organizations are the +threshold of the American community. + +The Federal government will need to develop more innovative and practical +ways for neighborhood based organizations to successfully participate in +the identification and solution of local and neighborhood concerns. Full +partnership will only be achieved with the knowing participation of leaders +of government, business, education and unions. Neither state nor Federal +solutions imposed from on high will suffice. Neighborhoods are the fabric +and soul of this great land. Neighborhoods define the weave that has been +used to create a permanent fabric. The Federal government must take every +opportunity to provide access and influence to the individuals and +organizations affected at the neighborhood level. + +Rural Policy + +Since the beginning of my Administration, I have been committed to +improving the effectiveness with which the Federal government deals with +the problems and needs of a rapidly changing rural America. The rapid +growth of some rural areas has placed a heavy strain on communities and +their resources. There are also persistent problems of poverty and economic +stagnation in other parts of rural America. Some rural areas continue to +lose population, as they have for the past several decades. + +In December, 1979, I announced the Small Community and Rural Development +Policy. It was the culmination of several years' work and was designed to +address the varying needs of our rural population. In 1980, my +Administration worked with the Congress to pass the Rural Development +Policy Act of 1980, which when fully implemented will allow us to meet the +needs of rural people and their communities more effectively and more +efficiently. + +As a result of the policy and the accompanying legislation, we have: + +--Created the position of Under Secretary of Agriculture for Small +Community and Rural Development to provide overall leadership. + +--Established a White House Working Group to assist in the implementation +of the policy. + +--Worked with more than 40 governors to form State rural development +councils to work in partnership with the White House Working Group, and the +Federal agencies, to better deliver State and Federal programs to rural +areas. + +--Directed the White House Working Group to annually review existing and +proposed policies, programs, and budget levels to determine their adequacy +in meeting rural needs and the fulfilling of the policy's objectives and +principles. + +This effort on the part of my Administration and the Congress has resulted +in a landmark policy. For the first time, rural affairs has received the +prominence it has always deserved. It is a policy that can truly help +alleviate the diverse and differing problems rural America will face in the +1980's. + +With the help and dedication of a great many people around the country who +are concerned with rural affairs, we have constructed a mechanism for +dealing effectively with rural problems. There is now a great opportunity +to successfully combine Federal efforts with the efforts of rural community +leaders and residents. It is my hope this spirit of cooperation and record +of accomplishment will be continued in the coming years. + +CONSUMERS + +In September, 1979, I signed an Executive Order designed to strengthen and +coordinate Federal consumer programs and to establish procedures to improve +and facilitate consumer participation in government decision-making. Forty +Federal agencies have adopted programs to comply with the requirements of +the Order. These programs will improve complaint handling, provide better +information to consumers, enhance opportunities for public participation in +government proceedings, and assure that the consumer point of view is +considered in all programs, policies, and regulations. + +While substantial progress has been made in assuring a consumer presence in +Federal agencies, work must continue to meet fully the goals of the +Executive Order. Close monitoring of agency compliance with the +requirements of the Order is necessary. Continued evaluation to assure that +the programs are effective and making maximum use of available resources is +also essential. As a complement to these initiatives, efforts to provide +financial assistance in regulatory proceedings to citizen groups, small +businesses, and others whose participation is limited by their economic +circumstances must continue to be pursued. + +It is essential that consumer representatives in government pay particular +attention to the needs and interests of low-income consumers and +minorities. The Office of Consumer Affairs' publication, "People Power: +What Communities Are Doing to Counter Inflation," catalogues some of the +ways that government and the private sector can assist the less powerful in +our society to help themselves. New ways should be found to help foster +this new people's movement which is founded on the principle of +self-reliance. + +Science and Technology + +Science and technology contribute immeasurably to the lives of all +Americans. Our high standard of living is largely the product of the +technology that surrounds us in the home or factory. Our good health is due +in large part to our ever increasing scientific understanding. Our national +security is assured by the application pate science and technology will +bring. + +The Federal government has a special role to play in science and +technology. Although the fruits of scientific achievements surround us, it +is often difficult to predict the benefits that will arise from a given +scientific venture. And these benefits, even if predictable, do not usually +lead to ownership rights. Accordingly, the Government has a special +obligation to support science as an investment in our future. + +My Administration has sought to reverse a decade-long decline in funding. +Despite the need for fiscal restraint, real support of basic research has +grown nearly 11% during my term in office. And, my Administration has +sought to increase the support of long-term research in the variety of +mission agencies. In this way, we can harness the American genius for +innovation to meet the economic, energy, health, and security challenges +that confront our nation. + +--International Relations and National Security. Science and technology +are becoming increasingly important elements of our national security and +foreign policies. This is especially so in the current age of sophisticated +defense systems and of growing dependence among all countries on modern +technology for all aspects of their economic strength. For these reasons, +scientific and technological considerations have been integral elements of +the Administration's decision-making on such national security and foreign +policy issues as the modernization of our strategic weaponry, arms control, +technology transfer, the growing bilateral relationship with China, and our +relations with the developing world. + +Four themes have shaped U.S. policy in international scientific and +technological cooperation: pursuit of new international initiatives to +advance our own research and development objectives; development and +strengthening of scientific exchange to bridge politically ideological, and +cultural divisions between this country and other countries; formulation of +programs and institutional relations to help developing countries use +science and technology beneficially; and cooperation with other nations to +manage technologies with local impact. At my direction, my Science and +Technology Adviser has actively pursued international programs in support +of these four themes. We have given special attention to scientific and +technical relations with China, to new forms of scientific and technical +cooperation with Japan, to cooperation with Mexico, other Latin American +and Caribbean countries and several states in Black America, and to the +proposed Institute for Scientific and Technological Cooperation. + +In particular our cooperation with developing countries reflects the +importance that each of them has placed on the relationship between +economic growth and scientific and technological capability. It also +reflects their view that the great strength of the U.S. in science and +technology makes close relations with the U.S. technical community an +especially productive means of enhancing this capability. Scientific and +technological assistance is a key linkage between the U.S. and the +developing world, a linkage that has been under-utilized in the past and +one which we must continue to work to strengthen. + +--Space Policy. The Administration has established a framework for a +strong and evolving space program for the 1980's. + +The Administration's space policy reaffirmed the separation of military +space systems and the open civil space program, and at the same time, +provided new guidance on technology transfer between the civil and military +programs. The civil space program centers on three basic tenets: First, our +space policy will reflect a balanced strategy of applications, science, and +technology development. Second, activities will be pursued when they can be +uniquely or more efficiently accomplished in space. Third, a premature +commitment to a high challenge, space-engineering initiative of the +complexity of Apollo is inappropriate. As the Shuttle development phases +down, however, there will be added flexibility to consider new space +applications, space science and new space exploration activities. + +--Technology Development. The Shuttle dominates our technology development +effort and correctly so. It represents one of the most sophisticated +technological challenges ever undertaken, and as a result, has encountered +technical problems. Nonetheless, the first manned orbital flight is now +scheduled for March, 1981. I have been pleased to support strongly the +necessary funds for the Shuttle throughout my Administration. + +--Space Applications. Since 1972, the U.S. has conducted experimental +civil remote sensing through Landsat satellites, thereby realizing many +successful applications. Recognizing this fact, I directed the +implementation of an operational civil land satellite remote sensing +system, with the operational management responsibility in Commerce's +National Oceanic and Atmospheric Administration. In addition, because ocean +observations from space can meet common civil and military data +requirements, a National Oceanic Satellite System has been proposed as a +major FY 1981 new start. + +--Space Science Exploration. The goals of this Administration's policy in +space science have been to: (1) continue a vigorous program of planetary +exploration to understand the origin and evolution of the solar system; (2) +utilize the space telescope and free-flying satellites to usher in a new +era of astronomy; (3) develop a better understanding of the sun and its +interaction with the terrestrial environment; and (4) utilize the Shuttle +and Spacelab to conduct basic research that complements earth-based life +science investigations. + +DISTRICT OF COLUMBIA + +Washington, D.C., is home to both the Federal Government and to more than +half a million American citizens. I have worked to improve the relationship +between the Federal establishment and the Government of the District of +Columbia in order to further the goals and spirit of home rule. The City +controls more of its own destiny than was the case four years ago. Yet, +despite the close cooperation between my Administration and that of Mayor +Barry, we have not yet seen the necessary number of states ratify the +Constitutional Amendment granting full voting representation in the +Congress to the citizens of this city. It is my hope that this inequity +will be rectified. The country and the people who inhabit Washington +deserve no less. + +THE ARTS + +The arts are a precious national resource. + +Federal support for the arts has been enhanced during my Administration by +expanding government funding and services to arts institutions, individual +artists, scholars, and teachers through the National Endowment for the +Arts. We have broadened its scope and reach to a more diverse population. +We have also reactivated the Federal Council on the Arts and Humanities. + +It is my hope that during the coming years the new Administration and the +Congress will: + +--Continue support of institutions promoting development and understanding +of the arts; + +--Encourage business participants in a comprehensive effort to achieve a +truly mixed economy of support for the arts; + +--Explore a variety of mechanisms to nurture the creative talent of our +citizens and build audiences for their work; + +--Support strong, active National Endowments for the Arts; + +--Seek greater recognition for the rich cultural tradition of the nation's +minorities; + +--Provide grants for the arts in low-income neighborhoods. + +THE HUMANITIES + +In recently reauthorizing Federal appropriations for the National Endowment +for the Humanities, the Congress has once again reaffirmed that "the +encouragement and support of national progress and scholarship in the +humanities . . . while primarily a matter for private and local initiative, +is also an appropriate matter of concern to the Federal Government" and +that "a high civilization must not limit its efforts to science and +technology alone but must give full value and support to the other great +branches of man's scholarly and cultural activity in order to achieve a +better understanding of the past, a better analysis of the present, and a +better view of the future." + +I believe we are in agreement that the humanities illuminate the values +underlying important personal, social, and national questions raised in our +society by its multiple links to and increasing dependence on technology, +and by the diverse heritage of our many regions and ethnic groups. The +humanities cast light on the broad issue of the role in a society of men +and women of imagination and energy--those individuals who through their +own example define "the spirit of the age," and in so doing move nations. +Our Government's support for the humanities, within the framework laid down +by the Congress, is a recognition of their essential nourishment of the +life of the mind and vital enrichment of our national life. + +I will be proposing an increase in funding this year sufficient to enable +the Endowment to maintain the same level of support offered our citizens in +Fiscal Year 1981. + +In the allocation of this funding, special emphasis will be given to: + +--Humanities education in the nation's schools, in response to the great +needs that have arisen in this area; + +--Scholarly research designed to increase our understanding of the +cultures, traditions, and historical forces at work in other nations and in +our own; + +--Drawing attention to the physical disintegration of the raw material of +our cultural heritage--books, manuscripts, periodicals, and other +documents--and to the development of techniques to prevent the destruction +and to preserve those materials; and + +--The dissemination of quality programming in the humanities to +increasingly large American audiences through the use of radio and +television. + +The dominant effort in the Endowment's expenditures will be a commitment to +strengthen and promulgate scholarly excellence and achievement in work in +the humanities in our schools, colleges, universities, libraries, museums +and other cultural institutions, as well as in the work of individual +scholars or collaborative groups engaged in advanced research in the +humanities. + +In making its grants the Endowment will increase its emphasis on techniques +which stimulate support for the humanities from non-Federal sources, in +order to reinforce our tradition of private philanthropy in this field, and +to insure and expand the financial viability of our cultural institutions +and life. + +INSULAR AREAS + +I have been firmly committed to self-determination for Puerto Rico, the +Virgin Islands, Guam, American Samoa and the Northern Mariana Islands, and +have vigorously supported the realization of whatever political status +aspirations are democratically chosen by their peoples. This principle was +the keystone of the comprehensive territorial policy I sent the Congress +last year. I am pleased that most of the legislative elements of that +policy were endorsed by the 96th Congress. + +The unique cultures, fragile economies, and locations of our Caribbean and +Pacific Islands are distinct assets to the United States which require the +sensitive application of policy. The United States Government should pursue +initiatives begun by my Administration and the Congress to stimulate +insular economic development; enhance treatment under Federal programs +eliminating current inequities; provide vitally needed special assistance +and coordinate and rationalize policies. These measures will result in +greater self-sufficiency and balanced growth. In particular, I hope that +the new Congress will support funding for fiscal management, comprehensive +planning and other technical assistance for the territories, as well as +create the commission I have proposed to review the applicability of all +Federal laws to the insular areas and make recommendations for appropriate +modification. + +IV. REMOVING GOVERNMENTAL WASTE AND INEFFICIENCY + +One of my major commitments has been to restore public faith in our Federal +government by cutting out waste and inefficiency. In the past four years, +we have made dramatic advances toward this goal, many of them previously +considered impossible to achieve. Where government rules and operations +were unnecessary, they have been eliminated, as with airline, rail, +trucking and financial deregulation. Where government functions are needed, +they have been streamlined, through such landmark measures as the Civil +Service Reform Act of 1978. I hope that the new administration and the +Congress will keep up the momentum we have established for effective and +responsible change in this area of crucial public concern. + +CIVIL SERVICE REFORM + +In March 1978, I submitted the Civil Service Reform Act to Congress. I +called it the centerpiece of my efforts to reform and reorganize the +government. With bipartisan support from Congress, the bill passed, and I +am pleased to say that implementation is running well ahead of the +statutory schedule. Throughout the service, we are putting into place the +means to assure that reward and retention are based on performance and not +simply on length of time on the job. In the first real test of the Reform +Act, 98 percent of the eligible top-level managers joined the Senior +Executive Service, choosing to relinquish job protections for the challenge +and potential reward of this new corps of top executives. Though the Act +does not require several of its key elements to be in operation for another +year, some Federal agencies already have established merit pay systems for +GS-13-15 managers, and most agencies are well on their way to establishing +new performance standards for all their employees. All have paid out, or +are now in the process of paying out, performance bonuses earned by +outstanding members of the Senior Executive Service. Dismissals have +increased by 10 percent, and dismissals specifically for inadequate job +performance have risen 1500 percent, since the Act was adopted. Finally, we +have established a fully independent Merit Systems Protection Board and +Special Counsel to protect the rights of whistle-blowers and other Federal +employees faced with threats to their rights. + +In 1981, civil service reform faces critical challenges, all agencies must +have fully functioning performance appraisal systems for all employees, and +merit pay systems for compensating the government's 130,000 GS-13-15 +managers. Performance bonuses for members of the Senior Executive Service +will surely receive scrutiny. If this attention is balanced and +constructive, it can only enhance the chances for ultimate success of our +bipartisan commitment to the revolutionary and crucial "pay for +performance" concept. + +REGULATORY REFORM + +During the past four years we have made tremendous progress in regulatory +reform. We have discarded old economic regulations that prevented +competition and raised consumer costs, and we have imposed strong +management principles on the regulatory programs the country needs, cutting +paperwork and other wasteful burdens. The challenge for the future is to +continue the progress in both areas without crippling vital health and +safety programs. + +Our economic deregulation program has achieved major successes in five +areas: + +Airlines: The Airline Deregulation Act is generating healthy competition, +saving billions in fares, and making the airlines more efficient. The Act +provides that in 1985 the CAB itself will go out of existence. + +Trucking: The trucking deregulation bill opens the industry to competition +and allows truckers wide latitude on the routes they drive and the goods +they haul. The bill also phases out most of the old law's immunity for +setting rates. The Congressional Budget Office estimates these reforms will +save as much as $8 billion per year and cut as much as half a percentage +point from the inflation rate. + +Railroads: Overregulation has stifled railroad management initiative, +service, and competitive pricing. The new legislation gives the railroads +the freedom they need to rebuild a strong, efficient railroad industry. + +Financial Institutions: With the help of the Congress, over the past four +years we have achieved two major pieces of financial reform legislation, +legislation which has provided the basis for the most far-reaching changes +in the financial services industry since the 1930's. The International +Banking Act of 1978 was designed to reduce the advantages that foreign +banks operating in the United States possessed in comparison to domestic +banks. The Depository Institutions Deregulation and Monetary Control Act, +adopted last March, provides for the phased elimination of a variety of +anti-competitive barriers to financial institutions and freedom to offer +services to and attract the savings of consumers, especially small savers. + +Recently, I submitted to the Congress my Administration's recommendations +for the phased liberalization of restrictions on geographic expansion by +commercial banks. Last year the Administration and financial regulatory +agencies proposed legislation to permit the interstate acquisition of +failing depository institutions. In view of the difficult outlook for some +depository institutions I strongly urge the Congress to take prompt +favorable action on the failing bank legislation. + +Telecommunications: While Congress did not pass legislation in this area, +the Federal Communications Commission has taken dramatic action to open all +aspects of communications to competition and to eliminate regulations in +the areas where competition made them obsolete. The public is benefitting +from an explosion of competition and new services. + +While these initiatives represent dramatic progress in economic +deregulation, continued work is needed. I urge Congress to act on +communications legislation and to consider other proposed deregulation +measures, such as legislation on the bus industry. In addition, the +regulatory commissions must maintain their commitment to competition as the +best regulator of all. + +The other part of my reform program covers the regulations that are needed +to protect the health, safety, and welfare of our citizens. For these +regulations, my Administration has created a management program to cut +costs without sacrificing goals. Under my Executive Order 12044, we +required agencies to analyze the costs of their major new rules and +consider alternative approaches, such as performance standards and +voluntary codes, that may make rules less costly and more flexible. We +created the Regulatory Analysis Review Group in the White House to analyze +the most costly proposed new rules and find ways to improve them. The +Regulatory Council was established to provide the first Government-wide +listing of upcoming rules and eliminate overlapping and conflicting +regulations. Agencies have launched "sunset" programs to weed out outmoded +old regulations. We have acted to encourage public participation in +regulatory decision-making. + +These steps have already saved billions of dollars in regulatory costs and +slashed thousands of outmoded regulations. We are moving steadily toward a +regulatory system that provides needed protections fairly, predictably, and +at minimum cost. + +I urge Congress to continue on this steady path and resist the simplistic +solutions that have been proposed as alternatives. Proposals like +legislative veto and increased judicial review will add another layer to +the regulatory process, making it more cumbersome and inefficient. The +right approach to reform is to improve the individual statutes, where they +need change, and to ensure that the regulatory agencies implement those +statutes sensibly. + +PAPERWORK REDUCTION + +The Federal Government imposes a huge paperwork burden on business, local +government, and the private sector. Many of these forms are needed for +vital government functions, but others are duplicative, overly complex or +obsolete. + +During my Administration we cut the paperwork burden by 15 percent, and we +created procedures to continue this progress. The new Paperwork Reduction +Act centralizes, in OMB, oversight of all agencies' information +requirements and strengthens OMB's authority to eliminate needless forms. +The "paperwork budget" process, which I established by executive order, +applies the discipline of the budget process to the hours of reporting time +imposed on the public, forcing agencies to scrutinize all their forms each +year. With effective implementation, these steps should allow further, +substantial paperwork cuts in the years ahead. + +TIGHTENING STANDARDS FOR GOVERNMENTAL EFFICIENCY AND INTEGRITY + +To develop a foundation to carry out energy policy, we consolidated +scattered energy programs and launched the Synthetic Fuels Corporation; to +give education the priority it deserves and at the same time reduce HHS to +more manageable size, I gave education a seat at the Cabinet table, to +create a stronger system for attacking waste and fraud, I reorganized audit +and investigative functions by putting an Inspector General in major +agencies. Since I took office, we have submitted 14 reorganization +initiatives and had them all approved by Congress. We have saved hundreds +of millions of dollars through the adoption of businesslike cash management +principles and set strict standards for personal financial disclosure and +conflict of interest avoidance by high Federal officials. + +To streamline the structure of the government, we have secured approval of +14 reorganization initiatives, improving the efficiency of the most +important sectors of the government, including energy, education, and civil +rights enforcement. We have eliminated more than 300 advisory committees as +well as other agencies, boards and commissions which were obsolete or +ineffective. Independent Inspectors General have been appointed in major +agencies to attack fraud and waste. More than a billion dollars of +questionable transactions have been identified through their audit +activities. + +The adoption of business-like cash management and debt collection +initiatives will save over $1 billion, by streamlining the processing of +receipts, by controlling disbursements more carefully, and by reducing idle +cash balances. Finally this Administration has set strict standards for +personal financial disclosure and conflict of interest avoidance by high +Federal officials, to elevate the level of public trust in the government. + +V. PROTECTING BASIC RIGHTS AND LIBERTIES + +I am extremely proud of the advances we have made in ensuring equality and +protecting the basic freedoms of all Americans. + +--The Equal Employment Opportunity Commission (EEOC) and the Office of +Federal Contract Compliance (OFCCP) have been reorganized and strengthened +and a permanent civil rights unit has been established in OMB. + +--To avoid fragmented, inconsistent and duplicative enforcement of civil +rights laws, three agencies have been given coordinative and +standard-setting responsibilities in discrete areas: EEOC for all +employment-related activities, HUD for all those relating to housing, and +the Department of Justice for all other areas. + +--With the enactment of the Right to Financial Privacy Act and a bill +limiting police search of newsrooms, we have begun to establish a sound, +comprehensive, privacy program. + +Ratification of the Equal Rights Amendment must be aggressively pursued. +Only one year remains in which to obtain ratification by three additional +states. + +The Congress must give early attention to a number of important bills which +remain. These bills would: + +--strengthen the laws against discrimination in housing. Until it is +enacted, the 1968 Civil Rights Act's promise of equal access to housing +will remain unfulfilled; + +--establish a charter for the FBI and the intelligence agencies. The +failure to define in law the duties and responsibilities of these agencies +has made possible some of the abuses which have occurred in recent years; + +--establish privacy safeguards for medical research, bank, insurance, and +credit records; and provide special protection for election fund transfer +systems. + +EQUAL RIGHTS AMENDMENT + +I remain committed as strongly as possible to the ratification of the Equal +Rights Amendment. + +As a result of our efforts in 1978, the Equal Rights Amendment's deadline +for ratification was extended for three years. We have now one year and +three States left. We cannot afford any delay in marshalling our resources +and efforts to obtain the ratification of those three additional States. + +Although the Congress has no official role in the ratification process at +this point, you do have the ability to affect public opinion and the +support of State Legislators for the Amendment. I urge Members from States +which have not yet ratified the Equal Rights Amendment to use their +influence to secure ratification. I will continue my own efforts to help +ensure ratification of the Equal Rights Amendment. + +MARTIN LUTHER KING, JR. + +Dr. Martin Luther King, Jr. led this Nation's effort to provide all its +citizens with civil rights and equal opportunities. His commitment to human +rights, peace and non-violence stands as a monument to his humanity and +courage. As one of our Nation's most outstanding leaders, it is appropriate +that his birthday be commemorated as a national holiday. I hope the +Congress will enact legislation this year that will achieve this goal. + +FAIR HOUSING + +The Fair Housing Act Amendments of 1980 passed the House of Representatives +by an overwhelming bipartisan majority only to die in the Senate at the +close of the 96th Congress. The leaders of both parties have pledged to +make the enactment of fair housing legislation a top priority of the +incoming Congress. The need is pressing and a strengthened federal +enforcement effort must be the primary method of resolution. + +CRIMINAL CODE + +The Federal criminal laws are often archaic, frequently contradictory and +imprecise, and clearly in need of revision and codification. The new +Administration should continue the work which has been begun to develop a +Federal criminal code which simplifies and clarifies our criminal laws, +while maintaining our basic civil liberties and protections. + +PRIVACY + +As our public and private institutions collect more and more information +and as communications and computer technologies advance, we must act to +protect the personal privacy of our citizens. + +In the past four years we acted on the report of the Privacy Commission and +established a national privacy policy. We worked with Congress to pass +legislation restricting wiretaps and law enforcement access to bank records +and to reporters' files. We reduced the number of personal files held by +the government and restricted the transfer of personal information among +Federal agencies. We also worked with the Organization for Economic +Cooperation and Development to establish international guidelines to +protect the privacy of personal information that is transferred across +borders. + +VI. PROTECTING AND DEVELOPING OUR NATURAL RESOURCES + +Two of our Nation's most precious natural resources are our environment and +our vast agricultural capacity. From the beginning of my Administration, I +have worked with the Congress to enhance and protect, as well as develop +our natural resources. In the environmental areas, I have been especially +concerned about the importance of balancing the need for resource +development with preserving a clean environment, and have taken numerous +actions to foster this goal. In the agricultural area, I have taken the +steps needed to improve farm incomes and to increase our agricultural +production to record levels. That progress must be continued in the 1980's. + +ENVIRONMENT + +Preserving the quality of our environment has been among the most important +objectives of my Administration and of the Congress. As a result of these +shared commitments and the dedicated efforts of many members of the +Congress and my Administration, we have achieved several historic +accomplishments. + +PROTECTION OF ALASKA LANDS + +Passage of the Alaska National Interest Lands Conservation Act was one of +the most important conservation actions of this century. At stake was the +fate of millions of acres of beautiful land, outstanding and unique +wildlife populations, native cultures, and the opportunity to ensure that +future generations of Americans would be able to enjoy the benefits of +these nationally significant resources. As a result of the leadership, +commitment, and persistence of my Administration and the Congressional +leadership, the Alaska Lands Bill was signed into law last December. + +The Act adds 97 million acres of new parks and refuges, more than doubling +the size of our National Park and National Wildlife Refuge Systems. The +bill triples the size of our national wilderness system, increasing its +size by 56 million acres. And by adding 25 free-flowing river segments to +the Wild and Scenic River System, the bill almost doubles the river mileage +in that system. The Alaska Lands Act reaffirms our commitment to the +environment and strikes a balance between protecting areas of great beauty +and allowing development of Alaska's oil, gas, mineral, and timber +resources. + +PROTECTION OF NATURAL RESOURCES + +In addition to the Alaska Lands Act, over the past four years we have been +able to expand significantly the national wilderness and parks systems. In +1978, the Congress passed the historical Omnibus Parks Act, which made 12 +additions to the National Park System. The Act also established the first +two national trails since the National Trails System Act was passed in +1968. Then, in 1980, as a result of my 1979 Environmental Message, the +Federal land management agencies have established almost 300 new National +Recreational Trails. With the completion of the RARE II process, which +eliminated the uncertainty surrounding the status of millions of acres of +land, we called for over 15 million acres of new wilderness in the nation's +National Forest, in 1980 the Congress established about 4.5 million acres +of wilderness in the lower 48 states. In addition, the Administration +recommended legislation to protect Lake Tahoe, and through an Executive +Order has already established a mechanism to help ensure the Lake's +protection. Finally, in 1980 the Administration established the Channel +Islands Marine Sanctuary. + +Administration actions over the past four years stressed the importance of +providing Federal support only for water resource projects that are +economically and environmentally sound. This policy should have a major and +lasting influence on the federal government's role in water resource +development and management. The Administration's actions to recommend to +the Congress only economically and environmentally sound water resource +projects for funding resulted not only in our opposing uneconomic projects +but also, in 1979, in the first Administration proposal of new project +starts in 4 years. + +One of the most significant water policy actions of the past four years was +the Administration's June 6, 1978 Water Policy Reform Message to the +Congress. This Message established a new national water resources policy +with the following objectives: + +--to give priority emphasis to water conservation; + +--to consider environmental requirements and values more fully and along +with economic factors in the planning and management of water projects and +programs; + +--to enhance cooperation between state and federal agencies in water +resources planning and management. + +In addition, the Executive Office of the President established 11 policy +decision criteria to evaluate the proposed federal water projects, the +Water Resources Council developed and adopted a new set of Principles and +Standards for water projects which is binding on all federal construction +agencies, and improved regulations were developed to implement the National +Historic Preservation Act and the Fish and Wildlife Coordination Act. As a +result, water resource projects must be determined to be economically sound +before the Administration will recommend authorization or appropriation. +Over the years ahead, this policy will help to reduce wasteful federal +spending by targeting federal funds to the highest priority water resource +projects. + +In the pursuit of this policy, however, we cannot lose projects. In the +part that sound water resource projects play in providing irrigation, +power, and flood control. We must also recognize the special needs of +particular regions of the country in evaluating the need for additional +projects. + +ADDRESSING GLOBAL RESOURCE AND ENVIRONMENTAL PROBLEMS + +The Global 2000 Report to the President, prepared in response to my 1977 +Environment Message, is the first of its kind. Never before has our +government, or any government, taken such a comprehensive, long-range look +at the interrelated global issues of resources, population, and +environment. + +The Report's conclusions are important. They point to a rapid increase in +population and human needs through the year 2000 while at the same time a +decline in the earth's capacity to meet those needs, unless nations of the +world act decisively to alter current trends. + +The United States has contributed actively to a series of U.N. conferences +on the environment, population, and resources, and is preparing for +the 1981 Conference on New and Renewable Sources of Energy. Following my +1977 Environmental Message, the Administration development assistance +programs have added emphasis to natural resource management and +environmental protection. My 1979 Environmental Message called attention to +the alarming loss of world forests, particularly in the tropics. An +interagency task force on tropical forests has developed a U.S. government +program to encourage conservation and wise management of tropical forests. +The Administration is encouraging action by other nations and world +organizations to the same purpose. The United States is a world leader in +wildlife conservation and the assessment of environmental effects of +government actions. The January 5, 1979, Executive Order directing U.S. +government agencies to consider the effects of their major actions abroad, +is another example of this leadership. + +COMMITMENT TO CONTROL OF POLLUTION AND HAZARDOUS CHEMICALS + +Over the past four years, there has been steady progress towards cleaner +air and water, sustained by the commitment of Congress and the +Administration to these important national objectives. In addition, the +Administration has developed several new pollution compliance approaches +such as alternative and innovative waste water treatment projects, the +"bubble" concept, the "offset" policy, and permit consolidation, all of +which are designed to reduce regulatory burdens on the private sector. + +One of the most pressing problems to come to light in the past four years +has been improper hazardous waste disposal. The Administration has moved on +three fronts. First, we proposed the Oil Hazardous Substances and Hazardous +Waste Response, Liability and Compensation Act (the Superfund bill) to +provide comprehensive authority and $1.6 billion in funds to clean up +abandoned hazardous waste disposal sites. In November 1980 the Congress +passed a Superfund bill which I signed into law. + +Second, the administration established a hazardous waste enforcement strike +force to ensure that when available, responsible parties are required to +clean up sites posing dangers to public health and to the environment. To +date, 50 lawsuits have been brought by the strike force. + +Third, regulations implementing subtitle C of the Resource Conservation and +Recovery Act were issued. The regulations establish comprehensive controls +for hazardous waste and, together with vigorous enforcement, will help to +ensure that Love Canal will not be repeated. + +THE FUTURE + +For the future, we cannot, and we must not, forget that we are charged with +the stewardship of an irreplaceable environment and natural heritage. Our +children, and our children's children, are dependent upon our maintaining +our commitment to preserving and enhancing the quality of our environment. +It is my hope that when our descendants look back on the 1980's they will +be able to affirm: + +--that we kept our commitment to the restoration of environmental +quality; + +--that we protected the public health from the continuing dangers of toxic +chemicals, from pollution, from hazardous and radioactive waste, and that +we made our communities safer, healthier and better places to live; + +--that we preserved America's wilderness areas and particularly its last +great frontier, Alaska, for the benefit of all Americans in perpetuity; + +--that we put this nation on a path to a sustainable energy future, one +based increasingly on renewable resources and on energy conservation; + +--that we moved to protect America's countryside and coastland from +mismanagement and irresponsibility; + +--that we redirected the management of the nation's water resources toward +water conservation, sound development and environmental protection; + +--that we faced squarely such worldwide problems as the destruction of +forests, acid rain, carbon dioxide build-up and nuclear proliferation; and + +--that we protected the habitat and the existence of our own species on +this earth. + +AGRICULTURE THE FARM ECONOMY + +The farm economy is sound and its future is bright. Agriculture remains a +major bulwark of the nation's economy and an even more important factor in +the world food system. The demand for America's agricultural abundance, +here and abroad, continues to grow. In the near-term, the strength of this +demand is expected to press hard against supplies, resulting in continued +price strength. + +The health and vitality of current-day agriculture represents a significant +departure from the situation that existed when I came to office four years +ago. In January 1977, the farm economy was in serious trouble. Farm prices +and farm income were falling rapidly. Grain prices were at their lowest +levels in years and steadily falling. Livestock producers, in their fourth +straight year of record losses, were liquidating breeding herds at an +unparalleled rate. Dairy farmers were losing money on every hundredweight +of milk they produced. Sugar prices were in a nosedive. + +Through a combination of improvements in old, established programs and the +adoption of new approaches where innovation and change were needed, my +Administration turned this situation around. Commodity prices have steadily +risen. Farm income turned upward. U.S. farm exports set new records each +year, increasing over 80 percent for the four year period. Livestock +producers began rebuilding their herds. Dairy farmers began to earn a +profit again. + +RECENT POLICY INITIATIVES + +Several major agricultural policy initiatives have been undertaken over the +past year. Some are the culmination of policy proposals made earlier in +this Administration; others are measures taken to help farmers offset the +impact of rapid inflation in production costs. In combination, they +represent a significant strengthening of our nation's food and agricultural +policy. These initiatives include: + +FOOD SECURITY RESERVE + +The Congress authorized formation of a 4 million ton food grain reserve for +use in international food assistance. This reserve makes it possible for +the United States to stand behind its food aid commitment to food deficit +nations, even during periods of short supplies and high prices. This +corrects a serious fault in our past food assistance policy. + +COMPREHENSIVE CROP INSURANCE + +The Congress also authorized a significant new crop insurance program +during 1980. This measure provides farmers with an important new program +tool for sharing the economic risks that are inherent to agriculture. When +fully operational, it will replace a hodgepodge of disaster programs that +suffered from numerous shortcomings. + +SPECIAL LOAN RATES + +Another legislative measure passed late in the 2nd session of the 96th +Congress authorizes the Secretary of Agriculture to provide higher loan +rates to farmers who enter their grain in the farmer-owned grain reserve. +This additional incentive to participate will further strengthen the +reserve. + +INCREASED LOAN PRICES + +In July 1980, I administratively raised loan prices for wheat, feedgrains, +and soybeans to help offset the effects of a serious cost-price squeeze. At +the same time, the release and call prices for the grain reserve were +adjusted upward. + +HIGHER TARGET PRICES + +The Agricultural Adjustment Act of 1980 raised the target prices for +1980-crop wheat and feed grain crops. This change corrected for +shortcomings in the adjustment formula contained in the Food and +Agriculture Act of 1977. + +FUTURE AGENDA + +The food and agricultural policies adopted by this Administration over the +past four years, including those described above, will provide a firm +foundation for future governmental actions in this field. Expiration of the +Food and Agriculture Act of 1977 later this year will require early +attention by the Congress. With relatively minor changes, most of the +authorities contained in the 1977 Act should be extended in their present +form. The farmer-owned grain reserve has proven to be a particularly +effective means of stabilizing grain markets and should be preserved in +essentially its present form. + +Beyond this, it will be important for the Congress to keep a close eye on +price-cost developments in the farm sector. As noted above, some of the +actions I took last year were for the purpose of providing relief from the +cost-price squeeze facing farmers. Should these pressures continue, further +actions might be required. + +My Administration has devoted particular attention to the issues of world +hunger, agricultural land use, and the future structure of American +agriculture. I encourage the Congress and the next Administration to review +the results of these landmark enquiries and, where deemed appropriate, to +act on their recommendations. + +Following a careful review of the situation, I recently extended the +suspension of grain sales to the Soviet Union. I am satisfied that this +action has served its purpose effectively and fairly. However, as long as +this suspension must remain in effect, it will be important for the next +Administration and the Congress to take whatever actions are necessary to +ensure that the burden does not fall unfairly on our Nation's farmers. This +has been a key feature of my Administration's policy, and it should be +maintained. + +VII. FOREIGN POLICY + +From the time I assumed office four years ago this month, I have stressed +the need for this country to assert a leading role in a world undergoing +the most extensive and intensive change in human history. + +My policies have been directed in particular at three areas of change: + +--the steady growth and increased projection abroad of Soviet military +power, power that has grown faster than our own over the past two decades. + +--the overwhelming dependence of Western nations, which now increasingly +includes the United States, on vital oil supplies from the Middle East. + +--the pressures of change in many nations of the developing world, in Iran +and uncertainty about the future stability of many developing countries. + +As a result of those fundamental facts, we face some of the most serious +challenges in the history of this nation. The Soviet invasion of +Afghanistan is a threat to global peace, to East-West relations, and to +regional stable flow of oil. As the unprecedented relations, an and +overwhelming vote in the General Assembly demonstrated, countries across +the world, and particularly the nonaligned, regard the Soviet invasion as a +threat to their independence and security. Turmoil within the region +adjacent to the Persian Gulf poses risks for the security and prosperity of +every oil importing nation and thus for the entire global economy. The +continuing holding of American hostages in Iran is both an affront to +civilized people everywhere, and a serious impediment to meeting the +self-evident threat to widely-shared common interests, including those of +Iran. + +But as we focus our most urgent efforts on pressing problems, we will +continue to pursue the benefits that only change can bring. For it always +has been the essence of America that we want to move on, we understand that +prosperity, progress and most of all peace cannot be had by standing still. +A world of nations striving to preserve their independence, and of peoples +aspiring for economic development and political freedom, is not a world +hostile to the ideals and interests of the United States. We face powerful +adversaries, but we have strong friends and dependable allies. We have +common interests with the vast majority of the world's nations and +peoples. + +There have been encouraging developments in recent years, as well as +matters requiring continued vigilance and concern: + +--Our alliances with the world's most advanced and democratic states from +Western Europe through Japan are stronger than ever. + +--We have helped to bring about a dramatic improvement in relations +between Egypt and Israel and an historic step towards a comprehensive +Arab-Israeli settlement. + +--Our relations with China are growing closer, providing a major new +dimension in our policy in Asia and the world. + +--Across southern Africa from Rhodesia to Namibia we are helping with the +peaceful transition to majority rule in a context of respect for minority +as well as majority rights. + +--We have worked domestically and with our allies to respond to an +uncertain energy situation by conservation and diversification of energy +supplies based on internationally agreed targets. + +--We have unambiguously demonstrated our commitment to defend Western +interests in Southwest Asia, and we have significantly increased our +ability to do so. + +--And over the past four years the U.S. has developed an energy program +which is comprehensive and ambitious. New institutions have been +established such as the Synthetic Fuels Corporation and Solar Bank. Price +decontrol for oil and gas is proceeding. American consumers have risen to +the challenge, and we have experienced real improvements in consumption +patterns. + +The central challenge for us today is to our steadfastedness of purpose. We +are no longer tempted by isolationism. But we must also learn to deal +effectively with the contradictions of the world, the need to cooperate +with potential adversaries without euphoria, without undermining our +determination to compete with such adversaries and if necessary confront +the threats they may pose to our security. + +We face a broad range of threats and opportunities. We have and should +continue to pursue a broad range of defense, diplomatic and economic +capabilities and objectives. + +I see six basic goals for America in the world over the 1980's: + +--First, we will continue, as we have over the past four years, to build +America's military strength and that of our allies and friends. Neither the +Soviet Union nor any other nation will have reason to question our will to +sustain the strongest and most flexible defense forces. + +--Second, we will pursue an active diplomacy in the world, working, +together with our friends and allies, to resolve disputes through peaceful +means and to make any aggressor pay a heavy price. + +--Third, we will strive to resolve pressing international economic +problems, particularly energy and inflation, and continue to pursue our +still larger objective of global economic growth through expanded trade and +development assistance and through the preservation of an open multilateral +trading system. + +--Fourth, we will continue vigorously to support the process of building +democratic institutions and improving human rights protection around the +world. We are deeply convinced that the future lies not with dictatorship +but democracy. + +--Fifth, we remain deeply committed to the process of mutual and +verifiable arms control, particularly to the effort to prevent the spread +and further development of nuclear weapons. Our decision to defer, but not +abandon our efforts to secure ratification of the SALT II Treaty reflects +our firm conviction that the United States has a profound national +security interest in the constraints on Soviet nuclear forces which only +that treaty can provide. + +--Sixth, we must continue to look ahead in order to evaluate and respond +to resource, environment and population challenges through the end of this +century. + +One very immediate and pressing objective that is uppermost on our minds +and those of the American people is the release of our hostages in Iran. + +We have no basic quarrel with the nation, the revolution or the people +of Iran. The threat to them comes not from American policy but from Soviet +actions in the region. We are prepared to work with the government of Iran +to develop a new and mutually beneficial relationship. + +But that will not be possible so long as Iran continues to hold Americans +hostages, in defiance of the world community and civilized behavior. They +must be released unharmed. We have thus far pursued a measured program of +peaceful diplomatic and economic steps in an attempt to resolve this issue +without resorting to other remedies available to us under international +law. This reflects the deep respect of our nation for the rule of law and +for the safety of our people being held, and our belief that a great power +bears a responsibility to use its strength in a measured and judicious +manner. But our patience is not unlimited and our concern for the +well-being of our fellow citizens grows each day. + +ENHANCING NATIONAL SECURITY, AMERICAN MILITARY STRENGTH + +The maintenance of national security is my first concern, as it has been +for every president before me. + +We must have both the military power and the political will to deter our +adversaries and to support our friends and allies. + +We must pay whatever price is required to remain the strongest nation in +the world. That price has increased as the military power of our major +adversary has grown and its readiness to use that power been made all too +evident in Afghanistan. The real increases in defense spending, therefore +probably will be higher than previously projected; protecting our security +may require a larger share of our national wealth in the future. + +THE U.S.-SOVIET RELATIONSHIP + +We are demonstrating to the Soviet Union across a broad front that it will +pay a heavy price for its aggression in terms of our relationship. +Throughout the last decades U.S.-Soviet relations have been a mixture of +cooperation and competition. The Soviet invasion of Afghanistan and the +imposition of a puppet government have highlighted in the starkest terms +the darker side of their policies, going well beyond competition and the +legitimate pursuit of national interest, and violating all norms of +international law and practice. + +This attempt to subjugate an independent, non-aligned Islamic people is a +callous violation of international law and the United Nations Charter, two +fundamentals of international order. Hence, it is also a dangerous threat +to world peace. For the first time since the communization of Eastern +Europe after World War II, the Soviets have sent combat forces into an area +that was not previously under their control, into a non-aligned and +sovereign state. + +The destruction of the independence of the Afghanistan government and the +occupation by the Soviet Union have altered the strategic situation in that +part of the world in a very ominous fashion. It has significantly shortened +the striking distance to the Indian Ocean and the Persian Gulf for the +Soviet Union. + +It has also eliminated a buffer between the Soviet Union and Pakistan and +presented a new threat to Iran. These two countries are now far more +vulnerable to Soviet political intimidation. If that intimidation were to +prove effective, the Soviet Union could control an area of vital strategic +and economic significance to the survival of Western Europe, the Far East, +and ultimately the United States. + +It has now been over a year since the Soviet invasion of Afghanistan dealt +a major blow to U.S.-Soviet relations and the entire international system. +The U.S. response has proven to be serious and far-reaching. It has been +increasingly effective, imposing real and sustained costs on the U.S.S.R.'s +economy and international image. + +Meanwhile, we have encouraged and supported efforts to reach a political +settlement in Afghanistan which would lead to a withdrawal of Soviet forces +from that country and meet the interests of all concerned. It is Soviet +intransigence that has kept those efforts from bearing fruit. + +Meanwhile, an overwhelming November resolution of the United Nations +General Assembly on Afghanistan has again made clear that the world has not +and will not forget Afghanistan. And our response continues to make it +clear that Soviet use of force in pursuit of its international objectives +is incompatible with the notion of business-as-usual. + +BILATERAL COMMUNICATION + +U.S.-Soviet relations remain strained by the continued Soviet presence in +Afghanistan, by growing Soviet military capabilities, and by the Soviets' +apparent willingness to use those capabilities without respect for the most +basic norms of international behavior. + +But the U.S.-Soviet relationship remains the single most important element +in determining whether there will be war or peace. And so, despite serious +strains in our relations, we have maintained a dialogue with the Soviet +Union over the past year. Through this dialogue, we have ensured against +bilateral misunderstandings and miscalculations which might escalate out of +control, and have managed to avoid the injection of superpower rivalries +into areas of tension like the Iran-Iraq conflict. + +POLAND + +Now, as was the case a year ago, the prospect of Soviet use of force +threatens the international order. The Soviet Union has completed +preparations for a possible military intervention against Poland. Although +the situation in Poland has shown signs of stabilizing recently, Soviet +forces remain in a high state of readiness and they could move into Poland +on short notice. We continue to believe that the Polish people should be +allowed to work out their internal problems themselves, without outside +interference, and we have made clear to the Soviet leadership that any +intervention in Poland would have severe and prolonged consequences for +East-West detente, and U.S.-Soviet relations in particular. + +DEFENSE BUDGET + +For many years the Soviets have steadily increased their real defense +spending, expanded their strategic forces, strengthened their forces in +Europe and Asia, and enhanced their capability for projecting military +force around the world directly or through the use of proxies. Afghanistan +dramatizes the vastly increased military power of the Soviet Union. + +The Soviet Union has built a war machine far beyond any reasonable +requirements for their own defense and security. In contrast, our own +defense spending declined in real terms every year from 1968 through 1976. + +We have reversed this decline in our own effort. Every year since 1976 +there has been a real increase in our defense spending, and our lead has +encouraged increases by our allies. With the support of the Congress, we +must and will make an even greater effort in the years ahead. + +The Fiscal Year 1982 budget would increase funding authority for defense to +more than $196 billion. This amount, together with a supplemental request +for FY 1981 of about $6 billion, will more than meet my Administration's +pledge for a sustained growth of 3 percent in real expenditures, and +provides for 5 percent in program growth in FY 1982 and beyond. + +The trends we mean to correct cannot be remedied overnight; we must be +willing to see this program through. To ensure that we do so I am setting a +growth rate for defense that we can sustain over the long haul. + +The defense program I have proposed for the next five years will require +some sacrifice, but sacrifice we can well afford. + +The defense program emphasizes four areas: + +1. It ensures that our strategic nuclear forces will be equivalent to those +of the Soviet Union and that deterrence against nuclear war will be +maintained; 2. It upgrades our forces so that the military balance between +NATO and the Warsaw Pact will continue to deter the outbreak of war, +conventional or nuclear, in Europe; 3. It provides us the ability to come +quickly to the aid of friends and allies around the globe; 4. And it ensures +that our Navy will continue to be the most powerful on the seas. + +STRATEGIC FORCES + +We are strengthening each of the three legs of our strategic forces. The +cruise missile production which will begin next year will modernize our +strategic air deterrent. B-52 capabilities will also be improved. These +steps will maintain and enhance the B-52 fleet by improving its ability to +deliver weapons against increasingly heavily defended targets. + +We are also modernizing our strategic submarine force. Four more POSEIDON +submarines backfitted with new, 4,000 mile TRIDENT I missiles began +deployments in 1980. Nine TRIDENT submarines have been authorized through +1981, and we propose one more each year. + +The new M-X missile program to enhance our land-based intercontinental +ballistic missile force continues to make progress. Technical refinements +in the basing design over the last year will result in operational +benefits, lower costs, and reduced environmental impact. The M-X program +continues to be an essential ingredient in our strategic posture, providing +survivability, endurance, secure command and control and the capability to +threaten targets the Soviets hold dear. + +Our new systems will enable U.S. strategic forces to maintain equivalence +in the face of the mounting Soviet challenge. We would however need an even +greater investment in strategic systems to meet the likely Soviet buildup +without SALT. + +STRATEGIC DOCTRINE + +This Administration's systematic contributions to the necessary evolution +of strategic doctrine began in 1977 when I commissioned a comprehensive net +assessment. From that base a number of thorough investigations of specific +topics continued. I should emphasize that the need for an evolutionary +doctrine is driven not by any change in our basic objective, which remains +peace and freedom for all mankind. Rather, the need for change is driven by +the inexorable buildup of Soviet military power and the increasing +propensity of Soviet leaders to use this power in coercion and outright +aggression to impose their will on others. + +I have codified our evolving strategic doctrine in a number of interrelated +and mutually supporting Presidential Directives. Their overarching theme is +to provide a doctrinal basis, and the specific program to implement it, +that tells the world that no potential adversary of the United States could +ever conclude that the fruits of his aggression would be significant or +worth the enormous costs of our retaliation. + +The Presidential Directives include: + +PD-18: An overview of our strategic objectives PD-37: Basic space policy +PD-41: Civil Defense PD-53: Survivability and endurance for +telecommunications PD-57: Mobilization planning PD-58: Continuity of +Government PD-59: Countervailing Strategy for General War. + +These policies have been devised to deter, first and foremost, Soviet +aggression. As such they confront not only Soviet military forces but also +Soviet military doctrine. By definition deterrence requires that we shape +Soviet assessments about the risks of war, assessments they will make using +their doctrine, not ours. + +But at the same time we in no way seek to emulate their doctrine. In +particular, nothing in our policy contemplates that nuclear warfare could +ever be a deliberate instrument for achieving our own goals of peace and +freedom. Moreover, our policies are carefully devised to provide the +greatest possible incentives and opportunities for future progress in arms +control. + +Finally, our doctrinal evolution has been undertaken with appropriate +consultation with our NATO Allies and others. We are fully consistent with +NATO's strategy of flexible response. + +FORCES FOR NATO + +We are greatly accelerating our ability to reinforce Western Europe with +massive ground and air forces in a crisis. We are undertaking a major +modernization program for the Army's weapons and equipment, adding armor, +firepower, and tactical mobility. + +We are prepositioning more heavy equipment in Europe to help us cope with +attacks with little warning, and greatly strengthening our airlift and +sealift capabilities. + +We are also improving our tactical air forces, buying about 1700 new +fighter and attack aircraft over the next five years, and increasing the +number of Air Force fighter wings by over 10 percent. + +We are working closely with our European allies to secure the Host Nation +Support necessary to enable us to deploy more quickly a greater ratio of +combat forces to the European theater at a lower cost to the United +States. + +SECURITY ASSISTANCE + +As we move to enhance U.S. defense capabilities, we must not lose sight of +the need to assist others in maintaining their own security and +independence. Events since World War II, most recently in Southwest Asia, +have amply demonstrated that U.S. security cannot exist in a vacuum, and +that our own prospects for peace are closely tied to those of our friends. +The security assistance programs which I am proposing for the coming fiscal +year thus directly promote vital U.S. foreign policy and national security +aims, and are integral parts of our efforts to improve and upgrade our own +military forces. + +More specifically, these programs, which are part of our overall foreign +aid request, promote U.S. security in two principal ways. First, they +assist friendly and allied nations to develop the capability to defend +themselves and maintain their own independence. An example during this past +year was the timely support provided Thailand to help bolster that +country's defenses against the large numbers of Soviet-backed Vietnamese +troops ranged along its eastern frontier. In addition, over the years these +programs have been important to the continued independence of other friends +and allies such as Israel, Greece, Turkey and Korea. Second, security +assistance constitutes an essential element in the broad cooperative +relationships we have established with many nations which permit either +U.S. bases on their territory or access by U.S. forces to their facilities. +These programs have been particularly important with regard to the +recently-concluded access agreements with various countries in the Persian +Gulf and Indian Ocean regions and have been crucial to the protection of +our interests throughout Southwest Asia. + +RAPID DEPLOYMENT FORCES + +We are systematically enhancing our ability to respond rapidly to non-NATO +contingencies wherever required by our commitments or when our vital +interests are threatened. + +The rapid deployment forces we are assembling will be extraordinarily +flexible: They could range in size from a few ships or air squadrons to +formations as large as 100,000 men, together with their support. Our forces +will be prepared for rapid deployment to any region of strategic +significance. + +Among the specific initiatives we are taking to help us respond to crises +outside of Europe are: + +The development of a new fleet of large cargo aircraft with +intercontinental range; the design and procurement of a force of Maritime +Prepositioning Ships that will carry heavy equipment and supplies for three +Marine Corps brigades; the procurement of fast sealift ships to move large +quantities of men and material quickly from the U.S. to overseas areas of +deployment; increasing training and exercise activities to ensure that our +forces will be well prepared to deploy and operate in distant areas. + +In addition, our European allies have agreed on the importance of providing +support to U.S. deployments to Southwest Asia. + +NAVAL FORCES + +Seapower is indispensable to our global position, in peace and also in war. +Our shipbuilding program will sustain a 550-ship Navy in the 1990's and we +will continue to build the most capable ships afloat. + +The program I have proposed will assure the ability of our Navy to operate +in high threat areas, to maintain control of the seas and protect vital +lines of communication, both military and economic and to provide the +strong maritime component of our rapid deployment forces. This is essential +for operations in remote areas of the world, where we cannot predict far in +advance the precise location of trouble, or preposition equipment on land. + +MILITARY PERSONNEL + +No matter how capable or advanced our weapons systems, our military +security depends on the abilities, the training and the dedication of the +people who serve in our armed forces. I am determined to recruit and to +retain under any foreseeable circumstances an ample level of such skilled +and experienced military personnel. This Administration has supported for +FY 1981 the largest peacetime increase ever in military pay and +allowances. + +We have enhanced our readiness and combat endurance by improving the +Reserve Components. All reservists are assigned to units structured to +complement and provide needed depth to our active forces. Some reserve +personnel have also now been equipped with new equipment. + +MOBILIZATION PLANNING + +We have completed our first phase of mobilization planning, the first such +Presidentially-directed effort since World War II. The government-wide +exercise of our mobilization plans at the end of 1980 showed, first, that +planning pays off and, second, that much more needs to be done. + +OUR INTELLIGENCE POSTURE + +Our national interests are critically dependent on a strong and effective +intelligence capability. We will maintain and strengthen the intelligence +capabilities needed to assure our national security. Maintenance of and +continued improvements in our multi-faceted intelligence effort are +essential if we are to cope successfully with the turbulence and +uncertainties of today's world. + +The intelligence budget I have submitted to the Congress responds to our +needs in a responsible way, providing for significant growth over the +Fiscal Year 1981 budget. This growth will enable us to develop new +technical means of intelligence collection while also assuring that the +more traditional methods of intelligence work are also given proper stress. +We must continue to integrate both modes of collection in our analyses. + +REGIONAL POLICIES + +Every President for over three decades has recognized that America's +interests are global and that we must pursue a global foreign policy. + +Two world wars have made clear our stake in Western Europe and the North +Atlantic area. We are also inextricably linked with the Far East, +politically, economically, and militarily. In both of these, the United +States has a permanent presence and security commitments which would be +automatically triggered. We have become increasingly conscious of our +growing interests in a third area, the Middle East and the Persian Gulf +area. + +We have vital stakes in other major regions of the world as well. We have +long recognized that in an era of interdependence, our own security and +prosperity depend upon a larger common effort with friends and allies +throughout the world. + +THE ATLANTIC ALLIANCE + +In recognition of the threat which the Soviet invasion of Afghanistan posed +to Western interests in both Europe and Southwest Asia, NATO foreign and +defense ministers have expressed full support for U.S. efforts to develop a +capability to respond to a contingency in Southwest Asia and have approved +an extensive program to help fill the gap which could be created by the +diversion of U.S. forces to that region. + +The U.S. has not been alone in seeking to maintain stability in the +Southwest Asia area and insure access to the needed resources there. The +European nations with the capability to do so are improving their own +forces in the region and providing greater economic and political support +to the residents of the area. In the face of the potential danger posed by +the Iran-Iraq conflict, we have developed coordination among the Western +forces in the area of the Persian Gulf in order to be able to safeguard +passage in that essential waterway. + +Concerning developments in and around Poland the allies have achieved the +highest level of cohesion and unity of purpose in making clear the effects +on future East-West relations of a precipitous Soviet act there. + +The alliance has continued to build on the progress of the past three years +in improving its conventional forces through the Long-Term Defense Program. +Though economic conditions throughout Europe today are making its +achievement difficult, the yearly real increase of 3 percent in defense +spending remains a goal actively sought by the alliance. + +The NATO alliance also has moved forward during the past year with the +implementation of its historic December 1979 decision to modernize its +Theater Nuclear Force capabilities through deployment of improved Pershing +ballistic missiles and ground-launched cruise missiles in Europe. Our +allies continue to cooperate actively with us in this important joint +endeavor, whose purpose is to demonstrate convincingly to the Soviet Union +the potential costs of a nuclear conflict in Europe. At the same time, we +offered convincing evidence of our commitment to arms control in Europe by +initiating preliminary consultations with the Soviet Union in Geneva on the +subject of negotiated limits on long-range theater nuclear forces. Also, +during 1980 we initiated and carried out a withdrawal from our nuclear +weapons stockpile in Europe of 1,000 nuclear warheads. This successful +drawdown in our nuclear stockpile was a further tangible demonstration of +our commitment to the updating of our existing theater nuclear forces in +Europe. + +In the NATO area, we continued to work closely with other countries in +providing resources to help Turkey regain economic health. We regretted +that massive political and internal security problems led the Turkish +military to take over the government on September 12. The new Turkish +authorities are making some progress in resolving those problems, and they +have pledged an early return to civilian government. The tradition of the +Turkish military gives us cause to take that pledge seriously. We welcomed +the reestablishment of Greece's links to the integrated military command +structure of the Atlantic Alliance--a move which we had strongly +encouraged--as a major step toward strengthening NATO's vital southern +flank at a time of international crisis and tension in adjacent areas. +Greek reintegration exemplifies the importance which the allies place on +cooperating in the common defense and shows that the allies can make the +difficult decisions necessary to insure their continued security. We also +welcomed the resumption of the intercommunal talks on Cyprus. + +THE U.S. AND THE PACIFIC NATIONS + +The United States is a Pacific nation, as much as it is an Atlantic nation. +Our interests in Asia are as important to us as our interests in Europe. +Our trade with Asia is as great as our trade with Europe. During the past +four years we have regained a strong, dynamic and flexible posture for the +United States in this vital region. + +Our major alliances with Japan, Australia and New Zealand are now stronger +than they ever have been, and together with the nations of western Europe, +we have begun to form the basic political structure for dealing with +international crises that affect us all. Japan, Australia and New Zealand +have given us strong support in developing a strategy for responding to +instability in the Persian Gulf. + +Normalization of U.S. relations with China has facilitated China's full +entry into the international community and encouraged a constructive +Chinese role in the Asia-Pacific region. Our relations with China have been +rapidly consolidated over the past year through the conclusion of a series +of bilateral agreements. We have established a pattern of frequent and +frank consultations between our two governments, exemplified by a series of +high-level visits and by regular exchanges at the working level, through +which we have been able to identify increasingly broad areas of common +interest on which we can cooperate. + +United States relations with the Association of Southeast Asian Nations +(ASEAN) have also expanded dramatically in the past four years. ASEAN is +now the focus for U.S. policy in Southeast Asia, and its cohesion and +strength are essential to stability in this critical area and beyond. + +Soviet-supported Vietnamese aggression in Indo-china has posed a major +challenge to regional stability. In response, we have reiterated our +security commitment to Thailand and have provided emergency security +assistance for Thai forces facing a Vietnamese military threat along the +Thai-Cambodian border. We have worked closely with ASEAN and the U.N. to +press for withdrawal of Vietnamese forces from Cambodia and to encourage a +political settlement in Cambodia which permits that nation to be governed +by leaders of its own choice. We still look forward to the day when +Cambodia peacefully can begin the process of rebuilding its social, +economic and political institutions, after years of devastation and +occupation. And, on humanitarian grounds and in support of our friends in +the region, we have worked vigorously with international organizations to +arrange relief and resettlement for the exodus of Indo-chinese refugees +which threatened to overwhelm these nations. + +We have maintained our alliance with Korea and helped assure Korea's +security during a difficult period of political transition. + +We have amended our military base agreement with the Philippines, ensuring +stable access to these bases through 1991. The importance of our Philippine +bases to the strategic flexibility of U.S. forces and our access to the +Indian Ocean is self-evident. + +Finally, we are in the process of concluding a long negotiation +establishing Micronesia's status as a freely associated state. + +We enter the 1980's with a firm strategic footing in East Asia and the +Pacific, based on stable and productive U.S. relations with the majority of +countries of the region. We have established a stable level of U.S. +involvement in the region, appropriate to our own interests and to the +interests of our friends and allies there. + +THE MIDDLE EAST AND SOUTHWEST ASIA + +The continuing Soviet occupation of Afghanistan and the dislocations caused +by the Iraq-Iran war serve as constant reminders of the critical importance +for us, and our allies, of a third strategic zone stretching across the +Middle East, the Persian Gulf, and much of the Indian subcontinent. This +Southwest Asian region has served as a key strategic and commercial link +between East and West over the centuries. Today it produces two-thirds of +the world's oil exports, providing most of the energy needs of our European +allies and Japan. It has experienced almost continuous conflict between +nations, internal instabilities in many countries, and regional rivalries, +combined with very rapid economic and social change. And now the Soviet +Union remains in occupation of one of these nations, ignoring world opinion +which has called on it to get out. + +We have taken several measures to meet these challenges. + +MIDDLE EAST + +In the Middle East, our determination to consolidate what has already been +achieved in the peace process--and to buttress that accomplishment with +further progress toward a comprehensive peace settlement--must remain a +central goal of our foreign policy. Pursuant to their peace treaty, Egypt +and Israel have made steady progress in the normalization of their +relations in a variety of fields, bringing the benefits of peace directly +to their people. The new relationship between Egypt and Israel stands as an +example of peaceful cooperation in an increasingly fragmented and turbulent +region. + +Both President Sadat and Prime Minister Begin remain committed to the +current negotiations to provide full autonomy to the inhabitants of the +West Bank and Gaza. These negotiations have been complex and difficult, but +they have already made significant progress, and it is vital that the two +sides, with our assistance, see the process through to a successful +conclusion. We also recognize the need to broaden the peace process to +include other parties to the conflict and believe that a successful +autonomy agreement is an essential first step toward this objective. + +We have also taken a number of steps to strengthen our bilateral relations +with both Israel and Egypt. We share important strategic interests with +both of these countries. + +We remain committed to Israel's security and are prepared to take concrete +steps to support Israel whenever that security is threatened. + +PERSIAN GULF + +The Persian Gulf has been a vital crossroads for trade between Europe and +Asia at many key moments in history. It has become essential in recent +years for its supply of oil to the United States, our allies, and our +friends. We have taken effective measures to control our own consumption of +imported fuel, working in cooperation with the other key industrial / +nations of the world. However, there is little doubt that the healthy +growth of our American and world economies will depend for many years on +continued safe access to the Persian Gulf's oil production. The denial of +these oil supplies would threaten not only our own but world security. + +The potent new threat from an advancing Soviet Union, against the +background of regional instability of which it can take advantage, requires +that we reinforce our ability to defend our regional friends and to protect +the flow of oil. We are continuing to build on the strong political, +economic, social and humanitarian ties which bind this government and the +American people to friendly governments and peoples of the Persian Gulf. + +We have also embarked on a course to reinforce the trust and confidence our +regional friends have in our ability to come to their assistance rapidly +with American military force if needed. We have increased our naval +presence in the Indian Ocean. We have created a Rapid Deployment Force +which can move quickly to the Gulf--or indeed any other area of the world +where outside aggression threatens. We have concluded several agreements +with countries which are prepared to let us use their airports and naval +facilities in an emergency. We have met requests for reasonable amounts of +American weaponry from regional countries which are anxious to defend +themselves. And we are discussing with a number of our area friends further +ways we can help to improve their security and ours, both for the short and +the longer term. + +SOUTH ASIA + +We seek a South Asia comprising sovereign and stable states, free of +outside interference, which can strengthen their political institutions +according to their own national genius and can develop their economies for +the betterment of their people. + +The Soviet invasion of Afghanistan has posed a new challenge to this +region, and particularly to neighboring Pakistan. We are engaged in a +continuing dialogue with the Pakistan government concerning its development +and security requirements and the economic burden imposed by Afghan +refugees who have fled to Pakistan. We are participating with other aid +consortium members in debt rescheduling and will continue to cooperate +through the UNHCR in providing refugee assistance. We remain committed to +Pakistan's territorial integrity and independence. + +Developments in the broad South/Southwest Asian region have also lent a new +importance to our relations with India, the largest and strongest power in +the area. We share India's interest in a more constructive relationship. +Indian policies and perceptions at times differ from our own, and we have +established a candid dialogue with this sister democracy which seeks to +avoid the misunderstandings which have sometimes complicated our ties. + +We attach major importance to strong economic assistance programs to the +countries in the area, which include a majority of the poor of the +non-Communist world. We believe that these programs will help achieve +stability in the area, an objective we share with the countries in the +region. Great progress has been achieved by these countries in increasing +food production; international cooperation in harnessing the great river +resources of South Asia would contribute further to this goal and help to +increase energy production. + +We continue to give high priority to our non-proliferation goals in the +area in the context of our broad global and regional priorities. The +decision to continue supply of nuclear fuel to the Indian Tarapur reactors +was sensitive to this effort. + +AFRICA + +The United States has achieved a new level of trust and cooperation with +Africa. Our efforts, together with our allies, to achieve peace in southern +Africa, our increased efforts to help the poorest countries in Africa to +combat poverty, and our expanded efforts to promote trade and investment +have led to growing respect for the U.S. and to cooperation in areas of +vital interest to the United States. + +Africa is a continent of poor nations for the most part. It also contains +many of the mineral resources vital for our economy. We have worked with +Africa in a spirit of mutual cooperation to help the African nations solve +their problems of poverty and to develop stronger ties between our private +sector and African economies. Our assistance to Africa has more than +doubled in the last four years. Equally important, we set in motion new +mechanisms for private investment and trade. + +Nigeria is the largest country in Black Africa and the second largest oil +supplier to the United States. During this Administration we have greatly +expanded and improved our relationship with Nigeria and other West African +states whose aspirations for a constitutional democratic order we share and +support. This interest was manifested both symbolically and practically by +the visit of Vice President Mondale to West Africa in July (1980) and the +successful visit to Washington of the President of Nigeria in October. + +During Vice President Mondale's visit, a Joint Agricultural Consultative +Committee was established, with the U.S. represented entirely by the +private sector. This could herald a new role for the American private +sector in helping solve the world's serious food shortages. I am pleased to +say that our relations with Nigeria are at an all-time high, providing the +foundation for an even stronger relationship in the years ahead. + +Another tenet of this Administration's approach to African problems has +been encouragement and support for regional solutions to Africa's +problems. We have supported initiatives by the Organization of African +Unity to solve the protracted conflict in the western Sahara, Chad, and the +Horn. In Chad, the world is watching with dismay as a country torn by a +devastating civil war has become a fertile field for Libya's exploitation, +thus demonstrating that threats to peace can come from forces within as +well as without Africa. + +In southern Africa the United States continues to pursue a policy of +encouraging peaceful development toward majority rule. In 1980, Southern +Rhodesia became independent as Zimbabwe, a multiracial nation under a +system of majority rule. Zimbabwean independence last April was the +culmination of a long struggle within the country and diplomatic efforts +involving Great Britain, African states neighboring Zimbabwe, and the +United States. + +The focus of our efforts in pursuit of majority rule in southern Africa has +now turned to Namibia. Negotiations are proceeding among concerned parties +under the leadership of U.N. Secretary General Waldheim. This should lead +to implementation of the U.N. plan for self-determination and independence +for Namibia during 1981. If these negotiations are successfully concluded, +sixty-five years of uncertainty over the status of the territory, including +a seven-year-long war, will be ended. + +In response to our active concern with issues of importance to Africans, +African states have cooperated with us on issues of importance to our +national interests. African states voted overwhelmingly in favor of the +U.N. Resolution calling for release of the hostages, and for the U.N. +Resolution condemning the Soviet invasion of Afghanistan. Two countries of +Africa have signed access agreements with the U.S. allowing us use of naval +and air facilities in the Indian Ocean. + +Africans have become increasingly vocal on human rights. African leaders +have spoken out on the issue of political prisoners, and the OAU is +drafting its own Charter on Human Rights. Three countries in Africa-- +Nigeria, Ghana, and Uganda--have returned to civilian rule during the past +year. + +U.S. cooperation with Africa on all these matters represents a strong base +on which we can build in future years. + +Liberia is a country of long-standing ties with the U.S. and the site of +considerable U.S. investment and facilities. This past April a coup +replaced the government and a period of political and economic uncertainty +ensued. The U.S. acted swiftly to meet this situation. We, together with +African leaders, urged the release of political prisoners, and many have +been released; we provided emergency economic assistance to help avoid +economic collapse, and helped to involve the IMF and the banking community +to bring about economic stability; and we have worked closely with the new +leaders to maintain Liberia's strong ties with the West and to protect +America's vital interests. + +NORTH AFRICA + +In early 1979, following a Libyan-inspired commando attack on a Tunisian +provincial city, the U.S. responded promptly to Tunisia's urgent request +for assistance, both by airlifting needed military equipment and by making +clear our longstanding interest in the security and integrity of this +friendly country. The U.S. remains determined to oppose other irresponsible +Libyan aspirations. Despairing of a productive dialogue with the Libyan +authorities, the U.S. closed down its embassy in Libya and later expelled +six Libyan diplomats in Washington in order to deter an intimidation +campaign against Libyan citizens in the U.S. + +U.S. relations with Algeria have improved, and Algeria has played an +indispensable and effective role as intermediary between Iran and the U.S. +over the hostage issue. + +The strengthening of our arms supply relationship with Morocco has helped +to deal with attacks inside its internationally recognized frontiers and to +strengthen its confidence in seeking a political settlement of the Western +Sahara conflict. While not assuming a mediatory role, the U.S. encouraged +all interested parties to turn their energies to a peaceful and sensible +compromise resolution of the war in the Sahara and supported efforts by the +Organization of African Unity toward that end. As the year drew to a close, +the U.S. was encouraged by evolution in the attitudes of all sides, and is +hopeful that their differences will be peacefully resolved in the year +ahead so that the vast economic potential of North Africa can be developed +for the well-being of the people living there. + +LATIN AMERICA AND THE CARIBBEAN + +The principles of our policies in this hemisphere have been clear and +constant over the last four years. We support democracy and respect for +human rights. We have struggled with many to help free the region of both +repression and terrorism. We have respected ideological diversity and +opposed outside intervention in purely internal affairs. We will act, +though, in response to a request for assistance by a country threatened by +external aggression. We support social and economic development within a +democratic framework. We support the peaceful settlement of disputes. We +strongly encourage regional cooperation and shared responsibilities within +the hemisphere to all these ends, and we have eagerly and regularly sought +the advice of the leaders of the region on a wide range of issues. + +Last November, I spoke to the General Assembly of the Organization of +American States of a cause that has been closest to my heart--human +rights. It is an issue that has found its time in the hemisphere. The cause +is not mine alone, but an historic movement that will endure. + +At Riobamba, Ecuador, last September four Andean Pact countries, Costa +Rica, and Panama broke new ground by adopting a "Code of Conduct," that +joint action in defense of human rights does not violate the principles of +nonintervention in the internal affairs of states in this hemisphere. The +Organization of American States has twice condemned the coup that +overturned the democratic process in Bolivia and the widespread abuse of +human rights by the regime which seized power. The Inter-American +Commission on Human Rights has gained world acclaim for its dispassionate +reports. It completed two major country studies this year in addition to +its annual report. In a resolution adopted without opposition, the OAS +General Assembly in November strongly supported the work of the Commission. +The American Convention on Human Rights is in force and an Inter-American +Court has been created to judge human rights violations. This convention +has been pending before the Senate for two years; I hope the United States +this year will join the other nations of the hemisphere in ratifying a +convention which embodies principles that are our tradition. + +The trend in favor of democracy has continued. During this past year, Peru +inaugurated a democratically elected government. Brazil continues its +process of liberalization. In Central America, Hondurans voted in record +numbers in their first national elections in over eight years. In the +Caribbean seven elections have returned governments firmly committed to the +democratic traditions of the Commonwealth. + +Another major contribution to peace in the hemisphere is Latin America's +own Treaty for the Prohibition of Nuclear Weapons. On behalf of the United +States, I signed Protocol I of this Treaty in May of 1977 and sent it to +the Senate for ratification. I urge that it be acted upon promptly by the +Senate in order that it be brought into the widest possible effect in the +Latin American region. + +Regional cooperation for development is gaining from Central America to the +Andes, and throughout the Caribbean. The Caribbean Group for Cooperation in +Economic Development, which we established with 29 other nations in 1977, +has helped channel $750 million in external support for growth in the +Caribbean. The recent meeting of the Chiefs of State of the Eastern +Caribbean set a new precedent for cooperation in that region. Mexico and +Venezuela jointly and Trinidad and Tobago separately have established oil +facilities that will provide substantial assistance to their oil importing +neighbors. The peace treaty between El Salvador and Honduras will hopefully +stimulate Central America to move forward again toward economic +integration. Formation of Caribbean/ Central American Action, a private +sector organization, has given a major impetus to improving +people-to-people bonds and strengthening the role of private enterprise in +the development of democratic societies. + +The Panama treaties have been in force for over a year. A new partnership +has been created with Panama; it is a model for large and small nations. A +longstanding issue that divided us from our neighbors has been resolved. +The security of the canal has been enhanced. The canal is operating as well +as ever, with traffic through it reaching record levels this year. Canal +employees, American and Panamanian alike, have remained on the job and have +found their living and working conditions virtually unchanged. + +In 1980, relations with Mexico continued to improve due in large measure to +the effectiveness of the Coordinator for Mexican Affairs and the expanded +use of the U.S.-Mexico Consultative Mechanism. By holding periodic meetings +of its various working groups, we have been able to prevent mutual concerns +from becoming political issues. The Secretary of State visited Mexico City +in November, and, along with the Mexican Secretary of Foreign Relations, +reviewed the performance of the Consultative Mechanism. The office of the +Coordinator has ensured the implementation of my directive to all agencies +to accord high priority to Mexican concerns. Trade with Mexico rose by +almost 60 percent to nearly $30 billion, making that country our third +largest trading partner. + +These are all encouraging developments. Other problems remain, however. + +The impact of large-scale migration is affecting many countries in the +hemisphere. The most serious manifestation was the massive, illegal exodus +from Cuba last summer. The Cuban government unilaterally encouraged the +disorderly and even deadly migration of 125,000 of its citizens in complete +disregard for international law or the immigration laws of its neighbors. +Migrations of this nature clearly require concerted action, and we have +asked the OAS to explore means of dealing with similar situations which may +occur in the future. + +We have a long-standing treaty with Colombia on Quita Sueno, Roncador, and +Serrano which remains to be ratified by the Senate. + +In Central America, the future of Nicaragua is unclear. Recent tensions, +the restrictions on the press and political activity, an inordinate Cuban +presence in the country and the tragic killing by the security forces of a +businessman well known for his democratic orientation, cause us +considerable concern. These are not encouraging developments. But those who +seek a free society remain in the contest for their nation's destiny. They +have asked us to help rebuild their country, and by our assistance, to +demonstrate that the democratic nations do not intend to abandon Nicaragua +to the Cubans. As long as those who intend to pursue their pluralistic +goals play important roles in Nicaragua, it deserves our continuing +support. + +In El Salvador, we have supported the efforts of the Junta to change the +fundamental basis of an inequitable system and to give a stake in a new +nation to those millions of people, who for so long, lived without hope or +dignity. As the government struggles against those who would restore an old +tyranny or impose a new one, the United States will continue to stand +behind them. + +We have increased our aid to the Caribbean, an area vital to our national +security, and we should continue to build close relations based on mutual +respect and understanding, and common interests. + +As the nations of this hemisphere prepare to move further into the 1980's, +I am struck by the depth of underlying commitment that there is to our +common principles: non-intervention, peaceful settlement of disputes, +cooperation for development, democracy and defense of basic human rights. I +leave office satisfied that the political, economic, social and +organizational basis for further progress with respect to all these +principles have been substantially strengthened in the past four years. I +am particularly reassured by the leadership by other nations of the +hemisphere in advancing these principles. The success of our common task of +improving the circumstances of all peoples and nations in the hemisphere +can only be assured by the sharing of responsibility. I look forward to a +hemisphere that at the end of this decade has proven itself anew as a +leader in the promotion of both national and human dignity. + +THE INTERNATIONAL ECONOMY + +A growing defense effort and a vigorous foreign policy rest upon a strong +economy here in the United States. And the strength of our own economy +depends upon our ability to lead and compete in the international +marketplace. + +ENERGY + +Last year, the war between Iraq and Iran led to the loss of nearly 4 +million barrels of oil to world markets, the third major oil market +disruption in the past seven years. This crisis has vividly demonstrated +once again both the value of lessened dependence on oil imports and the +continuing instability of the Persian Gulf area. + +Under the leadership of the United States, the 21 members of the +International Energy Agency took collective action to ensure that the oil +shortfall stemming from the Iran-Iraq war would not be aggravated by +competition for scarce spot market supplies. We are also working together +to see that those nations most seriously affected by the oil disruption-- +including our key NATO allies Turkey and Portugal--can get the oil they +need. At the most recent IEA Ministerial meeting we joined the other +members in pledging to take those policy measures necessary to slice our +joint oil imports in the first quarter of 1981 by 2.2 million barrels. + +Our international cooperation efforts in the energy field are not limited +to crisis management. At the Economic Summit meetings in Tokyo and Venice, +the heads of government of the seven major industrial democracies agreed to +a series of tough energy conservation and production goals. We are working +together with all our allies and friends in this effort. + +Construction has begun on a commercial scale coal liquefaction plant in +West Virginia co-financed by the United States, Japan and West Germany. An +interagency task force has just reported to me on a series of measures we +need to take to increase coal production and exports. This report builds on +the work of the International Energy Agency's Coal Industry Advisory Board. +With the assurances of a reliable United States steam coal supply at +reasonable prices, many of the electric power plants to be built in the +1980's and 1990's can be coal-fired rather than oil-burning. + +We are working cooperatively with other nations to increase energy security +in other areas as well. Joint research and development with our allies is +underway in solar energy, nuclear power, industrial conservation and other +areas. In addition, we are assisting rapidly industrializing nations to +carefully assess their basic energy policy choices, and our development +assistance program helps the developing countries to increase indigenous +energy production to meet the energy needs of their poorest citizens. We +support the proposal for a new World Bank energy affiliate to these same +ends, whose fulfillment will contribute to a better global balance between +energy supply and demand. + +INTERNATIONAL MONETARY POLICY + +Despite the rapid increase in oil costs, the policy measures we have taken +to improve domestic economic performance have had a continued powerful +effect on our external accounts and on the strength of the dollar. A strong +dollar helps in the fight against inflation. + +There has also been considerable forward movement in efforts to improve the +functioning of the international monetary system. The stability of the +international system of payments and trade is important to the stability +and good health of our own economy. We have given strong support to the +innovative steps being taken by the International Monetary Fund and World +Bank to help promote early adjustment to the difficult international +economic problems. Recent agreement to increase quotas by fifty percent +will ensure the IMF has sufficient resources to perform its central role in +promoting adjustment and financing payments imbalances. The World Bank's +new structural adjustment lending program will also make an important +contribution to international efforts to help countries achieve a +sustainable level of growth and development. + +SUGAR + +In 1980, Congress passed U.S. implementing legislation for the +International Sugar Agreement, thus fulfilling a major commitment of this +Administration. The agreement is an important element in our international +commodity policy with far-reaching implications for our relations with +developing countries, particularly sugar producers in Latin America. +Producers and consumers alike will benefit from a more stable market for +this essential commodity. + +COFFEE + +At year's end, Congress approved implementing legislation permitting the +U.S. to carry out fully its commitments under International Coffee +Agreement Specifically, the legislation enables us to meet our part of an +understanding negotiated last fall among members of the Agreement, which +defends, by use of export quotas, a price range well below coffee prices of +previous years and which commits major coffee producers to eliminate cartel +arrangements that manipulated future markets to raise prices. The way is +now open to a fully-functioning International Coffee Agreement which can +help to stabilize this major world commodity market. The results will be +positive for both consumers--who will be less likely to suffer from sharp +increases in coffee prices--and producers--who can undertake future +investment with assurance of greater protection against disruptive price +fluctuations in their exports. + +NATURAL RUBBER + +In 1980, the International Natural Rubber Agreement entered into force +provisionally. U.S. membership in this new body was approved overwhelmingly +by the Senate last year. The natural rubber agreement is a model of its +kind and should make a substantial contribution to a stable world market in +this key industrial commodity. It is thus an excellent example of +constructive steps to improve the operation of the world economy in ways +which can benefit the developing and industrialized countries alike. In +particular, the agreement has improved important U.S. relationships with +the major natural rubber-producing countries of Southeast Asia. + +COMMON FUND + +The United States joined members of the United Nations Conference on Trade +and Development, both developed and developing nations, in concluding +Articles of Agreement in 1980 for a Common Fund to help international +commodity agreements stabilize the prices of raw materials. + +ECONOMIC COOPERATION WITH DEVELOPING NATIONS + +Our relations with the developing nations are of major importance to the +United States. The fabric of our relations with these countries has strong +economic and political dimensions. They constitute the most rapidly growing +markets for our exports, and are important sources of fuel and raw +materials. Their political views are increasingly important, as +demonstrated in their overwhelming condemnation of the Soviet invasion of +Afghanistan. Our ability to work together with developing nations toward +goals we have in common (their political independence, the resolution of +regional tensions, and our growing ties of trade for example) require us to +maintain the policy of active involvement with the developing world that we +have pursued over the past four years. + +The actions we have taken in such areas as energy, trade, commodities, and +international financial institutions are all important to the welfare of +the developing countries. Another important way the United States can +directly assist these countries and demonstrate our concern for their +future is through our multilateral and bilateral foreign assistance +program. The legislation which I will be submitting to you for FY 82 +provides the authority and the funds to carry on this activity. Prompt +Congressional action on this legislation is essential in order to attack +such high priority global problems as food and energy, meet our treaty and +base rights agreements, continue our peace efforts in the Middle East, +provide economic and development support to countries in need, promote +progress on North-South issues, protect Western interests, and counter +Soviet influence. + +Our proposed FY 1982 bilateral development aid program is directly +responsive to the agreement reached at the 1980 Venice Economic Summit that +the major industrial nations should increase their aid for food and energy +production and for family planning. We understand that other Summit +countries plan similar responses. It is also important to honor our +international agreements for multilateral assistance by authorizing and +appropriating funds for the International Financial Institutions. These +multilateral programs enhance the efficiency of U.S. contributions by +combining them with those of many other donor countries to promote +development; the proposed new World Bank affiliate to increase energy +output in developing countries offers particular promise. All these types +of aid benefit our long-run economic and political interests. + +Progress was made on a number of economic issues in negotiations throughout +the U.N. system. However, in spite of lengthy efforts in the United +Nations, agreement has not been reached on how to launch a process of +Global Negotiations in which nations might collectively work to solve such +important issues as energy, food, protectionism, and population pressures. +The United States continues to believe that progress can best be made when +nations focus on such specific problems, rather than on procedural and +institutional questions. It will continue to work to move the North-South +dialogue into a more constructive phase. + +FOOD--THE WAR ON HUNGER + +The War on Hunger must be a continuous urgent priority. Major portions of +the world's population continue to be threatened by the specter of hunger +and malnutrition. During the past year, some 150 million people in 36 +African countries were faced with near disaster as the result of serious +drought, induced food shortages. Our government, working in concert with +the U.N.'s Food and Agricultural Organization (FAO), helped to respond to +that need. But the problems of hunger cannot be solved by short-term +measures. We must continue to support those activities, bilateral and +multilateral, which aim at improving food production especially in +developing countries and assuring global food security. These measures are +necessary to the maintenance of a stable and healthy world economy. + +I am pleased that negotiation of a new Food Aid Convention, which +guarantees a minimum annual level of food assistance, was successfully +concluded in March. The establishment of the International Emergency Wheat +Reserve will enable the U.S. to meet its commitment under the new +Convention to feed hungry people, even in times of short supply. + +Of immediate concern is the prospect of millions of Africans threatened by +famine because of drought and civil disturbances. The U.S. plea for +increased food aid resulted in the organization of an international +pledging conference and we are hopeful that widespread starvation will be +avoided. + +Good progress has been made since the Venice Economic Summit called for +increased effort on this front. We and other donor countries have begun to +assist poor countries develop long-term strategies to improve their food +production. The World Bank will invest up to $4 billion in the next few +years in improving the grain storage and food-handling capacity of +countries prone to food shortages. + +Good progress has been made since the Tokyo Economic Summit called for +increased effort on this front. The World Bank is giving this problem top +priority, as are some other donor countries. The resources of the +consultative Group on International Agricultural Research will be doubled +over a five-year period. The work of our own Institute of Scientific and +Technological Cooperation will further strengthen the search for relevant +new agricultural technologies. + +The goal of freeing the world from hunger by the year 2000 should command +the full support of all countries. + +The Human Dimension of Foreign Policy + +HUMAN RIGHTS + +The human rights policy of the United States has been an integral part of +our overall foreign policy for the past several years. This policy serves +the national interest of the United States in several important ways: by +encouraging respect by governments for the basic rights of human beings, it +promotes peaceful, constructive change, reduces the likelihood of internal +pressures for violent change and for the exploitation of these by our +adversaries, and thus directly serves our long-term interest in peace and +stability; by matching espousal of fundamental American principles of +freedom with specific foreign policy actions, we stand out in vivid +contrast to our ideological adversaries; by our efforts to expand freedom +elsewhere, we render our own freedom, and our own nation, more secure. +Countries that respect human rights make stronger allies and better +friends. + +Rather than attempt to dictate what system of government or institutions +other countries should have, the U.S. supports, throughout the world, the +internationally recognized human rights which all members of the United +Nations have pledged themselves to respect. There is more than one model +that can satisfy the continuing human reach for freedom and justice: + +1980 has been a year of some disappointments, but has also seen some +positive developments in the ongoing struggle for fulfillment of human +rights throughout the world. In the year we have seen: + +--Free elections were held and democratic governments installed in Peru, +Dominica, and Jamaica. Honduras held a free election for installation of a +constituent assembly. An interim government was subsequently named pointing +toward national presidential elections in 1981. Brazil continues on its +course of political liberalization. + +--The "Charter of Conduct" signed in Riobamba, Ecuador, by Ecuador, +Colombia, Venezuela, Peru, Costa Rica, Panama and Spain, affirms the +importance of democracy and human rights for the Andean countries. + +--The Organization of American States, in its annual General Assembly, +approved a resolution in support of the Inter-American Human Rights +Commission's work. The resolution took note of the Commission's annual +report, which described the status of human rights in Chile, El Salvador, +Paraguay and Uruguay; and the special reports on Argentina and Haiti, which +described human rights conditions as investigated during on-site +inspections to these countries. + +--The awarding of the Nobel Prize for Peace to Adolfo Perez Esquivel of +Argentina for his non-violent advocacy of human rights. + +--The United States was able to rejoin the International Labor +Organization after an absence of two years, as that U.N. body reformed its +procedures to return to its original purpose of strengthening +employer-employee-government relations to insure human rights for the +working people of the world. + +The United States, of course, cannot take credit for all these various +developments. But we can take satisfaction in knowing that our policies +encourage and perhaps influence them. + +Those who see a contradiction between our security and our humanitarian +interests forget that the basis for a secure and stable society is the bond +of trust between a government and its people. I profoundly believe that the +future of our world is not to be found in authoritarianism: that wears the +mask of order, or totalitarianism that wears the mask of justice. Instead, +let us find our future in the human face of democracy, the human voice of +individual liberty, the human hand of economic development. + +HUMANITARIAN AID + +The United States has continued to play its traditional role of safehaven +for those who flee or are forced to flee their homes because of persecution +or war. During 1980, the United States provided resettlement opportunities +for 216,000 refugees from countries around the globe. In addition, the +United States joined with other nations to provide relief to refugees in +country of first asylum in Africa, the Middle East, and Asia. + +The great majority of refugee admissions continued to be from Indo-china. +During 1980, 168,000 Indo-chinese were resettled in the United States. +Although refugee populations persist in camps in Southeast Asia, and +refugees continue to flee Vietnam, Laos and Kampuchea, the flow is not as +great as in the past. One factor in reducing the flow from Vietnam has been +the successful negotiation and commencement of an Orderly Departure Program +which permits us to process Vietnamese for resettlement in the United +States with direct departure from Ho Chi Minh Ville in an orderly fashion. +The first group of 250 departed Vietnam for the United States in December, +1980. + +In addition to the refugees admitted last year, the United States accepted +for entry into the United States 125,000 Cubans who were expelled by Fidel +Castro. Federal and state authorities, as well as private voluntary +agencies, responded with unprecedented vigor to coping with the unexpected +influx of Cubans. + +Major relief efforts to aid refugees in countries of first asylum continued +in several areas of the world. In December, 1980, thirty-two nations, +meeting in New York City, agreed to contribute $65 million to the +continuing famine relief program in Kampuchea. Due in great part to the +generosity of the American people and the leadership exercised in the +international arena by the United States, we have played the pivotal role +in ameliorating massive suffering in Kampuchea. + +The United States has taken the lead among a group of donor countries who +are providing relief to some two million refugees in the Horn of Africa who +have been displaced by fighting in Ethiopia. U.S. assistance, primarily to +Somalia, consists of $35 million worth of food and $18 million in cash and +kind. Here again, United States efforts can in large part be credited with +keeping hundreds of thousands of people alive. + +Another major international relief effort has been mounted in Pakistan. The +United States is one of 25 countries plus the European Economic Community +who have been helping the Government of Pakistan to cope with the problem +of feeding and sheltering the more than one million refugees that have been +generated by the Soviet invasion of Afghanistan. + +In April, 1980, the Congress passed the Refugee Act of 1980 which brought +together, for the first time, in one piece of legislation the various +threads of U.S. policy towards refugees. The law laid down a new, broader +definition of the term refugee, established mechanisms for arriving at a +level of refugee admissions through consultation with Congress, and +established the Office of the United States Coordinator for Refugees. + +It cannot be ignored that the destructive and aggressive policies of the +Soviet Union have added immeasurably to the suffering in these three tragic +situations. + +The Control of Nuclear Weapons + +Together with our friends and allies, we are striving to build a world in +which peoples with diverse interests can live freely and prosper. But all +that humankind has achieved to date, all that we are seeking to accomplish, +and human existence itself can be undone in an instant--in the catastrophe +of a nuclear war. + +Thus one of the central objectives of my Administration has been to control +the proliferation of nuclear weapons to those nations which do not have +them, and their further development by the existing nuclear powers-- +notably the Soviet Union and the United States. + +NON-PROLIFERATION + +My Administration has been committed to stemming the spread of nuclear +weapons. Nuclear proliferation would raise the spectre of the use of +nuclear explosives in crucial, unstable regions of the world endangering +not only our security and that of our Allies, but that of the whole world. +Non-proliferation is not and can not be a unilateral U.S. policy, nor +should it be an issue of contention between the industrialized and +developing states. The international non-proliferation effort requires the +support of suppliers as well as importers of nuclear technology and +materials. + +We have been proceeding on a number of fronts: + +--First, we have been seeking to encourage nations to accede to the +Non-Proliferation Treaty. The U.S. is also actively encouraging other +nations to accept full-scope safeguards on all of their nuclear activities +and is asking other nuclear suppliers to adopt a full-scope safeguards +requirement as a condition for future supply. + +--Second, the International Nuclear Fuel Cycle Evaluation (INFCE), which +was completed in 1980, demonstrated that suppliers and recipients can work +together on these technically complex and sensitive issues. While +differences remain, the INFCE effort provides a broader international basis +for national decisions which must balance energy needs with +non-proliferation concerns. + +--Finally, we are working to encourage regional cooperation and restraint. +Protocol I of the Treaty of Tlatelolco which will contribute to the +lessening of nuclear dangers for our Latin American neighbors ought now to +be ratified by the United States Senate. + +LIMITATIONS ON STRATEGIC ARMS + +I remain convinced that the SALT II Treaty is in our Nation's security +interest and that it would add significantly to the control of nuclear +weapons. I strongly support continuation of the SALT process and the +negotiation of more far-reaching mutual restraints on nuclear weaponry. + +CONCLUSION + +We have new support in the world for our purposes of national independence +and individual human dignity. We have a new will at home to do what is +required to keep us the strongest nation on earth. + +We must move together into this decade with the strength which comes from +realization of the dangers before us and from the confidence that together +we can overcome them. The White House, January 16, 1981. + + + + + + + + + + +End of the Project Gutenberg EBook of State of the Union Addresses of Jimmy +Carter, by Jimmy Carter + +*** END OF THIS PROJECT GUTENBERG EBOOK STATE OF THE UNION ADDRESSES *** + +***** This file should be named 5045.txt or 5045.zip ***** +This and all associated files of various formats will be found in: + http://www.gutenberg.org/5/0/4/5045/ + +Produced by James Linden. 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