To the Congress of the United States: My State of the Union Address will be devoted to a discussion of the most important challenges facing our country as we enter the 1980's. Over the coming year, those challenges will receive my highest priority and greatest efforts. However, there will also be many other significant areas which will receive my personal commitment, as well as that of my Administration, during the 2nd Session of the 96th Congress. It is important that Congress, along with the public, be aware of these other vital areas of concern as they listen to my State of the Union Address. In that way, the context of the Address, and my Administration's full message for 1980, can best be understood. For that reason, I am sending this State of the Union Message to the Congress today, several days before my State of the Union Address. CONGRESS During the last three years, my Administration has developed a very cooperative and productive record with Congress. Landmark legislation has been enacted; major domestic and international problems have been addressed directly and resolved; and a spirit of mutual trust and respect has been restored to Executive. Legislative relations. Indeed, in no other three-year period in our recent past has there been a comparable record of progress and achievement for the American people. But much more remains to be done. We cannot afford to rest on our record. We cannot fail to complete the agenda begun in the 1970's; we cannot ignore the new challenges of the 1980's. By continuing to work together, my Administration and the Congress can meet these goals. Our cooperative efforts can help to ensure stable prices and economic growth; a return to energy security; an efficient, responsive government; a strong, unsurpassed defense capability; and world peace. The program that I have placed before the Congress since 1977, combined with the few new initiatives I will be placing before the Congress this year, will enable us to reach these goals. Our task in this Session is to complete the work on that program. I have no doubt that we can do it. There is no time to waste. RECORD OF PROGRESS When I took office in 1977, our Nation faced a number of serious domestic and international problems: 
• the economy had still not recovered from the most serious recession since World War II; 
• unemployment was near 8%, and almost 8 million American workers were unemployed; 
• 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 extremely 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 continuously shrinking defense budget; 
• the strength of the NATO Alliance was at a post-World War II low; 
• tensions between Israel and Egypt threatened another Middle East war; and 
• America's resolve to oppose international aggression and human rights violations was under serious question. Over the past 36 months, clear progress has been made in solving the challenges we found in January of 1977: • the unemployment rate at the end of last year of 5.9%, representing a 25% decrease in three years; 9 million jobs have been created, and more Americans, 98 million, are at work than at any time in our history; • major parts of a comprehensive energy program have been enacted; a Department of Energy has been established to administer the program; and Congress is on the verge of enacting the remaining major parts of the energy 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; 13 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; zero-based budgeting practices have been instituted throughout the Federal government; cash management reforms have saved hundreds of millions of dollars; the process of issuing regulations has been reformed to eliminate unneeded and incomprehensible regulations; procedures have been established to assure citizen participation in government; and the airline industry has been deregulated, at enormous savings to the consumer. • critical social problems, many long ignored by the Federal government, have been addressed directly and boldly: an urban policy was developed and implemented, reversing the decline in our urban areas; the Food Stamp program has been expanded and the purchase requirement eliminated; 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 75%; 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 decline in defense spending has been reversed; defense spending has increased at a real rate of over 3% in 1979, and I am proposing a real increase in the defense spending level of more than 20% over the next 5 years; • the NATO Alliance has been revitalized and strengthened through substantially increased resources, new deterrent weapons, and improved coordination; increased emphasis has also been given to conventional force capabilities to meet crises in other areas of the world; • Egypt and Israel have ended more than 30 years of war through a Peace Treaty that also established a framework for comprehensive peace in the Middle East; • the commitment of our Nation to pursue human rights throughout the world, in nations which are friendly and those which are not, has been made clear to all; • our resolve to oppose aggression, such as the illegal invasion of the Soviet Union into Afghanistan, has been supported by tough action. LEGISLATIVE PRIORITIES In the coming legislative session, the last in this Presidential term, I am deeply committed to finishing the agenda that I have placed before the Congress. That agenda has been comprehensive and demanding, but it has also been absolutely essential for our Nation's well-being. I do not plan to add significantly to the agenda this year. Because of the importance of enacting the proposals already before the Congress, and the relatively short Congressional session facing us, I will be limiting my major new proposals to a critical few: 
• Youth Employment; 
• General Revenue Sharing; 
• Utility Oil Use Reduction; 
• Nuclear Waste Management and Nuclear Regulatory Commission Re. organization; 
• Standby Gasoline Rationing Plan; and 
• Initiatives implementing my response to the Soviet invasion of Afghanistan. I am convinced that these new initiatives, along with the major proposals I previously made to the Congress, can be enacted this year, if we have a dedicated, all-out effort on the part of the Administration and the Congress. I pledge such an effort on my part, and that of my Administration. As in the previous three years, I will be working with you toward the basic goals of: 
• Ensuring our economic strength; 
• Creating energy security for our nation; 
• Enhancing basic human and social needs; 
• Making our government more efficient and effective; 
• Protecting and enhancing our rights and liberties; 
• Preserving and developing our natural resources; 
• Building America's military strength; 
• Working to resolve international disputes through peaceful means; 
• Striving to resolve pressing international economic problems; 
• Continuing to support the building of democratic institutions and protecting human rights; and • Preventing the spread and further development of nuclear weapons. My highest legislative priorities in each of these areas this year will be: ENSURING ECONOMIC STRENGTH • The FY 1981 Budget—This is a responsible, restrained budget, whose enactment will help control Federal spending, significantly reduce the Federal deficit, and aid in our fight against inflation. • Hospital Cost Containment—This long overdue legislation is a major weapon in our fight against inflation; it will save consumers more billions of dollars and is the single most important anti-inflation bill before the Congress. • Youth Education, Training and Employment Program—This new initiative, which is designed to educate and train youth to secure and hold meaningful jobs, will provide enhanced opportunities for disadvantaged youth as well as improve the productivity of our work force. CREATING ENERGY SECURITY FOR OUR NATION • Windfall Profits Tax—The size of this important energy and tax measure has been agreed to by the conferees, but it is imperative that final agreement on a tax reflecting sound energy policy occur at the outset of this session and that Congress act promptly on that agreement. • Energy Mobilization Board—It is also essential that this vital measure in the effort to eliminate unnecessary red tape in the construction of needed energy facilities be agreed to promptly by the conferees and the Congress, without substantive waivers of law. • Energy Security Corporation—The conferees and the Congress also need to act expeditiously on this legislation. This bill is critical to our Nation's beginning a serious, massive program to develop alternative energy fuels so that our dependence on foreign oil can be severely reduced. It is necessary to remove this critical national effort from the constraints which can bind government agencies. This legislation contains, as well, vital energy conservation and gasohol provisions. They are needed if we are to move forward in our national efforts in these areas. • Utility Oil Use Reduction—This new initiative will aid in the effort to reduce our reliance on oil by requiring our Nation's utilities to substantially convert from oil to coal-burning or other energy facilities by our Nation's utilities over a defined timetable. This bill is a key tool in our effort to increase the use of coal, our most abundant natural fuel source. • Standby Gasoline Rationing Plan-Under the legislation enacted last year, I will propose to the Congress a Standby Gasoline Rationing Plan; its prompt approval will be required if we are to be prepared for a significant energy supply interruption. ENHANCING BASIC HUMAN AND SOCIAL NEEDS • National Health Plan—The time for improving the health care provided to our citizens is long overdue, and I am convinced that the health plan I proposed last year provides a realistic, affordable and beneficial way of providing our citizens with the health care they need and deserve. It will provide millions of low-income Americans with health coverage for the first time, improved Medicare coverage for the elderly, and protect every American against the disastrous costs of extended illness. Our national health effort also needs prompt enactment of two other important bills—Child Health Assurance Program, which will provide needed health care for disadvantaged children, and Mental Health Systems Act, which is needed to reform our mental health programs. • Welfare Reform—Our nation's welfare system remains a disgrace to both the recipient and the taxpayers. It encourages family instability and encourages waste. It is a crazy-quilt of differing provisions from state-to-state. The House has approved a sound welfare reform proposal. I call upon the Senate to act rapidly on this issue so that welfare reform can become a reality in this Session. • General Revenue Sharing—I will propose a reauthorization of this important program to our state and local governments, in order to continue providing them with the funds that they depend upon to meet essential social and operating needs. This program is an essential element of the partnership I have forged with state and local governments and is critical to the continued economic health of our states, cities and counties. • Countercyclical Revenue Sharing—I will again work with the Congress to provide the aid needed to help our most financially pressed local areas. The Senate has already acted and I urge prompt House passage early in the Session. • Low-Income Energy Assistance—I am committed to seeking authority to continue the low-income assistance program enacted at my request last year to give the poor protection against rising energy costs. • Economic Development—This legislation will reauthorize and improve the government's ability to provide economic development assistance. It is a key ingredient in implementing both my urban and rural policy and I urge prompt action on it by the House-Senate Conference. MAKING OUR GOVERNMENT MORE EFFICIENT AND EFFECTIVE • Regulatory Reform—I will continue to pursue efforts to eliminate unnecessary regulatory burdens, and will concentrate on seeking approval this year of my regulatory process reform bill, my trucking and rail deregulation proposals, my banking reform measures, and passage of sunset legislation and communications reform measures. Progress has been made on each of these during the First Session. Final passage should come before this Session ends. • Nuclear Regulatory Commission Reorganization—As I stated in responding to the Kemeny Commission Report, I will propose a reorganization of the Nuclear Regulatory Commission in order to improve its management and its emergency operating capabilities. This is an essential step to the improvement of safety in the nuclear industry. PROTECTING AND ENHANCING' OUR RIGHTS AND LIBERTIES • Equal Rights Amendment—While the Congress has passed the Equal Right., Amendment, and the possibility for ratification now lies with the State Legislatures, it is essential that the Members of Congress help with their State Legislatures. Toward that end, we will be working with Members from States which have not yet been ratified. We cannot stand tall as a Nation seeking to enhance human rights at home so long as we deny it to American women here at home. • Fair Housing—I will continue to press for enactment of this important civil rights initiative; it will enable the government to enforce our fair housing laws effectively and promptly. It is the most critical civil rights legislation before the Congress in years. The promise of equal housing opportunity has been far too long an empty promise. This bill will help make that promise a reality. • Intelligence Charters—I have already proposed a legislative charter for the FBI; I will soon be proposing a legislative charter for the intelligence community. These charters will protect our citizens' rights while enabling the agencies to meet their responsibilities. PRESERVING AND DEVELOPING OUR NATURAL RESOURCES • Alaska D-2 Lands—My highest environmental priority in this Congress continues to be enactment of legislation that will preserve and protect Alaska lands. I urge the Senate to follow the House's lead in this area. • Oil and Hazardous Wastes Superfund—This program is needed to mitigate the effects of oil hazardous substance spills and releases from uncontrolled hazardous waste dumps, which is a growing national problem. • Nuclear Waste Management—I will propose a series of legislative and administrative initiatives to implement our Nation's first comprehensive nuclear waste program. BUILDING AMERICA'S MILITARY STRENGTH • Defense Department Authorizations and Appropriations—I will be proposing a defense budget containing a 3.3% real growth in outlays. It is essential that the Congress support an increase of that amount if we are to strengthen our defense capabilities. WORKING TO RESOLVE INTERNATIONAL DISPUTES • Refugee Legislation and Funding-This legislation is necessary to improve our refugee program and to provide needed domestic assistance to refugees. Prompt House action would assure that we have a sound framework within which to accommodate the increasing flow of refugees. STRIVING TO RESOLVE INTERNATIONAL ECONOMIC PROBLEMS • Bilateral and Multilateral Foreign Assistance—I will be proposing foreign assistance legislation which provides the authority needed to carry forward a cooperative relationship with a large number of developing nations. Prompt Congressional action is essential. • China Trade Agreement—I will be seeking early approval by the Congress of the Trade Agreement reached with China; the Agreement represents a major step forward in the process toward improved economic relations with China. CONTINUING TO SUPPORT THE BUILDING, OF DEMOCRATIC INSTITUTIONS 
AND PROTECTING HUMAN RIGHTS • Special International Security Assistance for Pakistan—I am sending to Congress a military and economic assistance program to enable Pakistan to strengthen its defenses. Prompt enactment will be one of my highest legislative priorities. • Human Rights Conventions—I will continue to press the Senate to ratify five key human rights treaties—the American Convention on Human Rights, the Convention on Racial Discrimination, the UN Covenants on Civil and Political Rights, and on Economic and Social and Cultural Rights, and the Genocide Convention. PREVENTING THE SPREAD AND FURTHER DEVELOPMENT OF NUCLEAR WEAPONS • SALT II I firmly believe that SALT II is in our Nation's security interest and that it will add significantly to the control of nuclear weapons. But because of the Soviet invasion of Afghanistan, I do not believe it is advisable to have the Senate consider the Treaty now. I. ENSURING ECONOMIC STRENGTH My economic program, since I took office, has been designed to achieve several goals: 
—restore and continue economic growth; 
—reduce unemployment; and 
—restrain inflation. Over the past three years, considerable progress has been made in each of these areas: —The economy has recovered from its deepest recession since World War II; and we have had a sustained economic recovery during the last three years. —Unemployment has been reduced by 25% and employment is at its highest level in history. —Inflation has increased to unacceptable levels, in large part because of OPEC price increases, but a program has now been put in place which will moderate inflation in an equitable and effective way. In 1980, we will continue the steady economic policies which have worked to date. We can only succeed in making our economy strong, however, if we have Congress' cooperation. I am confident that we can work together successfully this year to achieve our economic goals. INFLATION Inflation continues to be our most serious economic problem. Restraining inflation remains my highest domestic priority. 
Inflation at the current, unacceptably high levels is the direct result of economic problems that have been building, virtually without letup, for over a decade. There are no easy answers, or quick solutions to inflation. It cannot be eliminated overnight; its roots in our economy are too deep, its causes are too pervasive and complex. We know we cannot spend our way out of this problem. But there is hope—for a gradual reduction in the inflation rate, for an easing of the economic pressures causing inflation. The hope lies in a program of public and private restraint in the short-run and a program to attack the structural causes of inflation over the longer-run. This is the policy I have pursued and will continue to pursue. Last year was an especially difficult time for anti-inflation policies. OPEC increased its prices by more than 80% and thus added more than three points to the inflation rate. If energy price increases are excluded, inflation last year would have been nearly three percentage points lower. The biggest challenge to anti-inflation policy is to keep energy price' increases from doing permanent damage, to prevent a dangerous acceleration of the wageprice spiral. My program has been successful in accomplishing this. Inflation will slow this year. In 1981 it should be even lower. This progress is the result of our persistence in the battle against inflation on many fronts: Budget Restraint: The budget deficit for FY 1979 was lowered to $27.7 billion, more than 50% below the FY 1976 level. Regulatory Reform: The flood of new, costly government regulations was slowed as our procedures to ensure that we achieve our regulatory goals in the most cost-effective manner took hold. Wage-Price Guidelines: The guideline standards were followed by the vast majority of unions which negotiated contracts and by nearly every major corporation in the country. Energy: The energy legislation put into place over the past two years began to reduce our dependence on foreign oil and our consumption of such important energy fuels as gasoline, thereby reducing the ability of oil producing nations to disrupt our economy. Productivity: We began to introduce policies to increase industrial innovation and thereby productivity; the decline in productivity growth must be reversed if we are to improve our real living standards over the long term. In 1980, with the Congress' cooperation, we will continue our aggressive fight against inflation on each of these major fronts: Budget Restraint: The deficit for the FY 1981 budget will be less than half of the FY 1980 budget deficit and will represent a 75% reduction from the deficit I inherited. Regulatory Reform: We will be pursuing deregulation legislation for the trucking, rail, banking and communications industries, as well as regulatory management reform legislation; these bills will enable us to further eliminate unnecessary regulatory burdens. Labor Accord: The Pay Advisory and Price Advisory Committees, established as a result of last year's historic Accord with organized labor will enable us to better implement, and coordinate with both labor and business, the private restraint necessary as part of our anti-inflation efforts. The Accord signals a willingness of labor to be a full partner in our fight against inflation. Energy: We expect to enact major energy legislation—the Windfall Profits Tax, the Energy Mobilization Board, and the Energy Security Corporation—early in this Session; this legislation, when combined with the voluntary and mandatory energy conservation measures that will take an even stronger hold this year, should enable us to further reduce our dependence on foreign oil. Productivity: We will be implementing our industrial innovation program and further expanding our commitment in the budget to research and development. COUNCIL ON WAGE AND PRICE STABILITY The Council on Wage and Price Stability has played a vital role in our anti-inflation efforts. The Council and its staff have lead responsibility within the Executive branch for implementing the voluntary wage and price monitoring program. Without the Council's continuing role, the anti-inflation effort could not begin to assess whether the private sector is cooperating with our standards. It is therefore essential that the Council, along with its staff operation, be reauthorized early this year. The reauthorization should not contain amendments that interrupt or restrain the important and essential work of the Council or its staff. THE 1981 BUDGET The budget I will send to the Congress for FY 1981 will meet this Nation's critical needs; and it will continue the sound budgetary policies that my Administration has pursued throughout my term in office. No single year's budget can accurately portray the philosophy of an Administration. However, there is a clear pattern in the budgets I have proposed—restraint in spending, coupled with careful targeting of resources to areas of greatest need. My 1981 budget continues this pattern by lowering the deficit roughly $50 billion below what it was when I ran for office. At the same time, I will recommend increases for programs of critical national concern. Last year, my budget was austere. I proposed eliminating some programs and reducing spending for others; and these tough decisions have proven correct and have provided the country with clear benefits. I am pleased that the Congress approved my budget in virtually the form I proposed. As a result of our actions, the rate of Federal spending growth has been slowed. Just as importantly, the widespread expectation that the Federal budget would continue its upward spiral unchecked has been proven false. We have moved on to the path necessary for achieving a balanced budget in the very near future. And we have helped the fight against inflation.. The 1981 Budget will continue my policy of restraint. Real growth in spending will be close to zero. The deficit will be cut by more than half from last year. The deficit as a percent of the budget and of GNP will be at the second lowest point in this decade. We will have the smallest deficit in seven years. And if the economy were to continue to grow at a rate which held the unemployment rate at the current level, this budget would be in surplus. At the same time, I am proposing some vital spending increases in the 1981 Budge. Most of these increases will be in "uncontrollable" programs (those in which increases are automatically required by existing law). There will also be discretionary increases; in part, to strengthen our defense forces and enhance our crucial investments in energy production and conservation. In addition, I will propose a major new initiative to reduce youth unemployment, and State and local governments will receive continued fiscal support from the General Revenue Sharing extension I will propose. Developing the budget this year has been, in several respects, more difficult than in previous years. International turmoil threatens our vital interests, energy problems dampen the economy and alter our domestic priorities, and inflation erodes basic programs, all adding new pressures for Federal spending. But I am confident that this budget responds responsibly-and with needed resources—to our Nation's most pressing needs and positions us for responsible and effective government in the 1980's. FISCAL POLICY As President, I have been concerned about the tax burden on our citizens and have, as a result, worked with the Congress to enact two major tax cuts. In 1977, I proposed, and Congress passed, an $8 billion individual tax cut as part of the economic stimulus package. In 1978, I proposed, and Congress passed, a $21 billion individual and business tax cut. This year, those two cuts will reduce Americans' tax burden by $31 billion. I recognize that there is interest in another tax cut this year, but my 1981 budget proposes no tax cuts. As long as double-digit inflation continues and there is no sign of a recession, our top budgetary priority must be reduction of the deficit. Over the long run, continued tight control over budget expenditures will hold down the share of Federal spending in GNP. Inflation, on the other hand, is raising the percentage of national income collected in taxes. Over time, because of these two developments, tax reductions will be possible while still maintaining the fiscal restraint needed to control inflation. However, the timing and structure of any tax reductions is of critical importance and must be dictated by our economic circumstances: the urgency of the anti-inflation fight requires that we defer such tax reductions at this time. Tax reductions put into effect prematurely, and under the wrong economic conditions, could make inflation worse by overstimulating the economy. Inflation is still running at unacceptably high levels. Virtually all economic forecasters predict the onset of a mild recession and my Administration's estimates of budget receipts and expenditures in the FY 1981 budget assume a recession. However, none of the current economic statistics yet show any overall economic decline. In recent months the economy has displayed much more strength than earlier forecasts had predicted. Forecasts of impending recession may therefore prove to be. as wrong as previous ones. Employment has held up well—in part due to unsatisfactory productivity performance. To enact tax cuts now would run a serious risk of adding inflationary demand pressures to an economy which continues to grow more strongly than predicted by the forecasts. With the present high inflation, we cannot afford that risk. When tax reductions are timely, they should be designed insofar as possible in a way that achieves multiple objectives-not only reducing the tax burden and stimulating growth, but raising investment and productivity and reducing inflation as well. In particular, a significant part of any tax reduction should be directed to the provision of incentives for increased investment, to improve productivity, expand capacity, and adjust to higher energy prices. Serious consideration should be given, in the case of tax cuts for individuals, to lowering social security payroll taxes, since half of such reductions would go towards lowering business costs and prices. The necessities of the inflation fight require that we be very cautious about when taxes are reduced, and how it is done. But they do not require that we ignore changes in economic conditions. Should the economic situation and prospects sharply worsen, I will consider recommendations to deal with the situation. Under those circumstances, tax cuts and other measures could be taken to improve the prospects for employment and growth, to reduce business costs, and to assist those most severely damaged by recession, without threatening to set off inflationary demand pressures. However, the current economic situation does not warrant such measures and it would be inappropriate to propose them at this time. EMPLOYMENT My Administration, working closely with Congress, has made significant progress in reducing the serious unemployment problems that existed three years ago. • The December unemployment rate of 5.9% represents a 25% reduction from the December 1976 rate. • Over 9.2 million more people have jobs than before the beginning of the Administration. • Total employment has reached an all-time high of 98 million in December. • Nonwhite employment has increased by 1.4 million persons or 15.5%. • Adult female employment has increased by 5 million persons. • Employment of black teenagers, which had actually decreased during the 1969-1975 period, has increased by more than 15% since I took office. Although unemployment rates for all youth, especially minority youth, are still too high, progress has been made. We will continue to make progress in the 1980's as a result of the framework which has already been established and which will be strengthened this year. • The Comprehensive Employment and Training Act (CETA) was reauthorized in 1978 for four years. • The Humphrey-Hawkins Full Employment Act became law after many years of effort. • The Private Sector Initiatives Program, a new partnership between the government and the private sector to assist the most disadvantaged unemployed, is being successfully implemented. • A targeted jobs tax credit has been enacted to provide employers with the economic incentives needed to increase their hiring of unemployed low-income youth and others who historically have difficulty finding jobs. • A massive effort to reduce the problems causing excessive youth unemployment rates is being strengthened and revitalized this year with a new $2 billion youth education, training, and employment program. This year, we will work aggressively to make certain that this framework continues to be successfully implemented. Even that effort may not be sufficient, if economic forecasts are accurate, to keep the unemployment rate from rising. We will be monitoring the economy closely. If unemployment should dramatically increase, I will be prepared to consider actions to counter that increase, consistent with our overriding concern about accelerating inflation. At this time though, when unemployment is at its lowest level in years, it would be premature and unwise to propose measures that might be helpful in a time of recession-induced high unemployment. YOUTH EMPLOYMENT The fact that we have had persistently high unemployment among poor and minority youth for three decades demonstrates clearly the inadequacies of our system for teaching, training and helping young people to find and keep decent jobs. The economic challenges of the 1980's will require the energy and commitment of the entire American work force. We cannot afford to waste anyone's talents. If we are to become the society of our ideals, we must provide economic opportunity for all. My Administration is committed to a renewed national effort to remove any unnecessary obstacles to a productive life for every American. Over the past three years, we have developed a solid record. We have increased resources for youth employment and training programs from $2.5 to over $4 billion. We have conducted the largest experimental youth program effort ever attempted. We have reduced overall youth unemployment rates by 15%. But this is not good enough. Youth unemployment, especially for the poor and minorities, is still unacceptably high. Based on the experience we have gained over the past three years, and on the advice of the thousands of Americans who helped the Vice President's Task Force on Youth Employment over the last nine months, my Administration has devised a new approach, which I announced two weeks ago. Under my program, the most significant new domestic initiative I will be sending to Congress this year, the Federal government will be making its most comprehensive effort ever to eradicate the causes of excessive and harmful youth unemployment. By 1982 this new program will have increased Federal resources committed to reducing youth unemployment by $2 billion, to a total of $6 billion. The program will have two key components: for in school youth, we will have a major effort through the Department of Education to teach basic skills to low-achieving youth in junior and senior high schools located in low-income communities, while providing work experience and training after school hours. For disadvantaged out-of-school youth, we will provide, through the Department of Labor, redesigned and expanded work experience and training programs, as well as basic skills programs managed by the Department of Education. The Department of Education's basic education and skill training program, when fully implemented, will provide basic education and employment skills to approximately 1 million low-achieving junior and senior high school students in about 3,000 of the poorest urban and rural school districts around the country. The new program will emphasize: 
—basic skills for low-achieving youngsters, including help for students with limited ability in English; 
—school-wide planning with the active involvement of teachers, parents, employers, and the community; 
—using the link between work and classroom-learning as a way to motivate students to stay in school; and 
—a major role for vocational education in preparing young people for work. The Department of Labor's new Youth Employment Program, when fully implemented, will provide education, work experience, training, labor market information and other services to more than 500,000 .additional young people in each year. The new resources, when added to current programs, will serve over 2.5 million 14- to 21-year olds each year. 
The program will emphasize: 
—additional training and work experience opportunities for older and out-of-school youth; 
—stringent performance standards for both participants and program operators; 
—financial incentives to encourage greater cooperation between CETA sponsors, local employers, and school officials; and 
—consolidation of three of the existing CETA youth programs and closer coordination with the summer employment program to simplify local administration and reduce paperwork. We have learned from the 1960's and the 1970's. We know we must concentrate on administration and management. We know that we must have tough performance standards, not merely allocation formulas. We know that the partnership between government and all elements of the private sector must be made a reality, and that focusing on basic skills now is the key to job success in the future. We also know that the hope our young people have for their lives in this great country is our most precious resource. We must keep that hope alive. We will be working closely and intensively with the Congress to enact and carry out this youth employment program as soon as possible. TRADE This past year was one of unmatched and historic achievement for a vital component of the U.S. economy—exports and trade. In 1979, nearly 3 million jobs in our manufacturing industries, or one out of every seven jobs in manufacturing, depended upon our export performance in overseas markets. Our exports were a key contributor to the growth of the U.S. economy in 1979. Exports of agricultural and industrial goods grew by an unparalleled $35 billion, reaching a level of $180 billion. This represented an increase of 25% over exports in 1978. This record increase in exports, coupled with a slower rate of growth of imports, resulted in substantial improvements of $5 billion in our balance of trade. Furthermore, a rapid growth of service exports in 1979 led to a $13 billion improvement in the current account, bringing that account from a deficit in 1978 to near balance in 1979. I expect that in 1980 our exports will continue to strengthen and that, if we can continue to further conserve and limit imports of oil, we will further improve our trade Balance position and that of the dollar. The future for American exports is bright, and will remain so, despite the necessity of suspending certain exports to the Soviet Union. This Administration has accomplished several goals in the last year in assuring that there will continue to be greater exports and, therefore, job possibilities for U.S. workers and farmers. To improve the condition of access of U.S. exports to foreign markets, I signed into force in July of last year a new trade act which reflected two years of hard bargaining in the recently concluded round of multilateral trade negotiations. These negotiations, which included all major developed and lesser developed countries, resulted in agreements to strengthen the rules of conduct of international trade and open new markets to U.S. exports. These negotiations were of historic importance in their scope and accomplishment, and their success is attributable to close cooperation that existed during and after the negotiations between the Congress, the private sector and the Administration. Our negotiating success now challenges us to take advantage of the opportunity for improving further our export performance. To meet this challenge, I proposed in 1979 a major reorganization of the government's trade policy and export promotion activities. That reorganization will strengthen government coordination in the trade field and provide an improved basis for protecting American interest in the recently negotiated trade agreements. I put this reorganization into effect, with Congressional approval, earlier this month. With the changes initiated in my trade reorganization, we will ensure that trade between the United States and its trading partners will be conducted fairly and openly. Consistent with my decisions on suspending certain types of trade with the Soviet Union, my Administration will be seeking this year to find additional ways to foster U.S. export expansion. We are studying the possibility of further agreements on expanded trade with both traditional and newer trade partners, including China. I look forward to working with the Congress on ways we can continue to improve our trading position which, in turn, will help maintain a prosperous American economy. SMALL BUSINESS This year marks the high point of three years of accomplishment for small business under my Administration, and the beginning of a decade of continuing effort to strengthen this large and vital sector of our economy. The White House Conference on Small Business, which I convened eighteen months ago and which has just concluded its deliberations, fulfills a pledge I made in 1976 that the voice of small business would be heard in my Administration. In anticipation of the Conference, I called on the head of every executive Department and agency to propose at least one initiative of benefit to small business. Over 160 separate initiatives have been proposed and are under examination, and many of them have already been put in effect. We have made great strides in reforming our regulatory process, cutting down Federal paperwork and developing flexible regulations which provide for minimizing or eliminating burdens on smaller businesses. The capital gains tax has been significantly reduced, and corporate taxes on small businesses have been lowered. We have also increased Small Business Administration lending activity, from $1.8 billion in 1976 to $3.1 billion in 1979, an increase of 72%. Since 1977 we have more than doubled Federal purchases of goods and services from minority firms from $1.1 billion to $2.5 billion in 1979. I am confident that such purchases will exceed $3.5 billion this year. I have put into place a comprehensive policy to strengthen the role of women in business, and have directed Federal agencies to take affirmative action to include women in management assistance and other business-related programs. SBA's advocacy role has been strengthened at my direction, and SBA has been added to the membership of the Regulatory Council and the Productivity Council, to help assure that the problems and issues facing small business are addressed wherever relevant policy decisions are made with the Federal government. To reduce the paperwork and regulatory burdens small businesses face in raising capital, I have recently proposed a Small Business Issuers' Simplification Act. This legislation will exempt from the burdensome registration requirements of the Federal securities laws sales of securities by small businesses to institutional investors, such as banks, insurance companies and pension funds, and others making investments of at least $100,000. Finally, last week I sent to the Congress a Message on Small Business to emphasize the vital importance of small business and to report to you on the steps we have already taken and plan to take in 1980 to strengthen small business. MINORITY BUSINESS From the beginning of my term, I have worked with the Congress to increase opportunities for minority business. As a result of our efforts, enormous progress has been made in the last three years: 
• Federal procurement from minority owned firms has increased by nearly two and a half times; 
• Federal deposits in minority-owned banks have nearly doubled; 
• minority ownership of radio and television stations has increased by 65%; 
• almost 15% of the funds spent under the Local Public Works Act of 1977 went to minority-owned firms; 
• the Section 8(a) program operated by the Small Business Administration has been reformed and strengthened. This year, my Administration is committed to expanding upon the progress made to date. This year, I am committed to more than tripling the 1977 level of federal procurement from minority-owned firms, and I have no doubt we can meet that goal. My 1981 budget improves the targeting of Small Business Administration loans to minority-owned businesses. We will also expand management, technical, and training assistance for minority firms and provide substantial funding increases for minority capital development under the SBA's minority enterprise small business investment company (MESBIC) program. I will also be proposing to the Congress a minority business legislative initiative to establish in the Department of Commerce a Minority Business Development Agency. That Agency, a successor to the Office of Minority Business Enterprise, was established last year under administrative authority, but I believe Congressional authorization would strengthen its operating abilities. WOMEN IN BUSINESS Last year I announced a new policy to strengthen and foster the growth of women-owned businesses. My new budget includes funds to make this policy a reality by increasing SBA direct loans to women by 50%, by assisting women in gaining access to sources of financing, and by expanding management and technical assistance to women. By insuring that women bare fuller access to opportunities to start and maintain their own enterprises, we will start a genuine momentum to take full advantage of the contribution which women can make to the growth and productivity of our economy. II. CREATING ENERGY SECURITY Since I took office, my highest legislative priorities have involved the development of our Nation's first comprehensive energy policy. The struggle to achieve that policy has been difficult for all of us, but the accomplishments of the past three years leave no doubt that our country is finally serious about the problems caused by our over-dependence on foreign oil. The accomplishments can be lost, however, and the progress stopped, if we fail to move forward even further this year. There is no single panacea that will solve our energy crisis. We must rely on and encourage multiple forms of production-coal, crude oil, natural gas, solar, nuclear, synthetics—and conservation. It is therefore essential that Congress enact the major energy bills I proposed last year; and their enactment will be my most immediate and highest legislative priority this year. WINDFALL PROFITS TAX My highest, most immediate legislative priority during this Session is prompt passage of a sound windfall profits tax on crude oil. Last April, I proposed a tough windfall profits tax to recoup a portion of the unearned income that would accrue to the oil companies as a result of the phased decontrol of domestic crude oil prices and OPEC price increases. It is essential that these revenues be invested on behalf of all Americans to help us become an energy secure nation. The revenues from the tax will be used to support key national energy goals: low-income energy assistance, improved and expanded mass transit and energy supply and conservation programs. The windfall tax that I proposed was also carefully designed to provide incentives needed to increase domestic oil production. Under my proposal, we expect a barrel per day increase in domestic production due to decontrol and higher world prices. Without any windfall profits tax production would be only marginally higher by 1985. The American people clearly want and our national energy needs clearly require—a tough windfall tax. We cannot afford further delay. The House-Senate Conference Committee has reached agreement on a tax raising $227 billion over the next ten years. A tax at that level is acceptable, provided the components of the tax are consistent with sound energy policy. I urge the conferees and the Congress to approve forthwith a tax that I can sign. There can be no higher legislative priority. ENERGY MOBILIZATION BOARD Last July, together with a comprehensive energy program, I asked Congress to join with me to create an Energy Mobilization Board (EMB). The Board can cut through burdensome and unnecessary red tape and reach prompt decisions on designated priority energy projects. Decision-making can be streamlined without overriding of substantive law, which I strongly oppose. The Board is a key element of our strategy to attain energy security by cutting foreign oil imports in the coming years. Prompt passage of the EMB is one of my highest priorities this year, and I urge the Congress to complete its action on this proposal without delay. ENERGY SECURITY CORPORATION Last year, I proposed the creation of an Energy Security Corporation to lead our national effort to develop and produce synthetic fuels, coal-based synthetics, oil shale and biomass. The Corporation would be an independent body, chartered by the government and authorized to use a variety of financing tools-principally price guarantees, Federal purchases, and loan guarantees—to stimulate private sector development of synthetic energy alternatives to imported oil. I have recommended that the Corporation be given a goal to develop the capacity to produce 1.75 million barrels per day of synthetic fuels, oil shale, and biomass by 1990. With an ability to produce commercially synthetic alternatives to foreign crude oil, our Nation will have effectively capped the price which foreign oil producers can charge for crude oil. We cannot do the job we must do for our Nation's security by operating this program from within the government. The Corporation can much more easily obtain the needed talent and operate without the constraints binding a government agency. Enactment of the legislation containing the Energy Security Corporation is one of my highest legislative priorities for this Session. I urge the conferees to complete this work expeditiously so that the Corporation can open its doors as early as possible this year. REDUCTION IN UTILITY OIL USE I will soon send to the Congress legislation which will assist utilities in the use of coal, and encourage them to retire existing oil burning plants for generating electricity.-The Department of Energy and my staff have worked very closely with Congressional energy leadership over the last several months to develop a legislative proposal which can be acted upon quickly. My proposed utility oil use reduction legislation will help us to achieve two of our basic energy goals—decreasing our dependence on foreign oil and increasing our production of more abundant and secure energy supplies, such as coal. For that reason, passage of this legislation will be one of my highest energy priorities this year. GASOLINE RATIONING I will soon be sending to Congress for its approval a standby gasoline rationing plan, under the authority of legislation I signed into law last year. In developing this plan, we have given priority attention to accommodating essential gasoline usage, bearing in mind the need to design a plan which is workable and which can be put into place quickly if a severe emergency arises. I recognize the difficulty of developing a plan that meets the many competing State and local concerns. Last year's experience demonstrated that difficulty very well. I .am determined, as I am certain Congress is, to avoid repeating it. My Administration will work very closely with Congress on the standby plan. I hope the Congress will recognize the overriding national importance of emergency preparedness and will take action early to approve my proposed plan. I do not intend, under our current supply conditions, to implement a rationing program. But we can no longer afford to be unprepared for the possibility of further severe interruptions in energy supplies. ENERGY CONSERVATION In my very first energy address to the Nation in April 1977, I stressed the importance of conservation as the cornerstone of our national energy policy. It is the cheapest and fastest means of reducing our dependence on imported oil and it constitutes an alternative source of supply. To the extent that we conserve-in our homes, factories, cars, and public buildings—we make the task of providing secure sources of energy for the future that much more attainable. In November 1978, I signed into law our country's first energy conservation tax credits. These provide up to $300 for home conservation investments, and an additional 10 percent investment tax credit for industrial investments in energy efficient equipment. At the same time, we put in place a requirement that utilities provide energy audits for their customers and offer to arrange financing. We also established stiff taxes on new gas guzzling automobiles. As a result of my April 1977 initiatives, we are also providing a total of $900 million over three years to weatherize schools and hospitals across the Nation. Last July, I proposed a program to provide $5.8 billion over the next decade to subsidize interest rates on homeowner loans for conservation investments. This program will be targeted to low- and moderate-income homeowners and apartment owners for whom the tax credits are less effective as an incentive. Under this program it is expected that consumers' total monthly bills will decline since the financial savings resulting from lower energy use will be greater than the monthly payments on the subsidized loans. I consider this new program to be an essential piece of my overall conservation strategy and urge the House-Senate Conference Committee now working on the bill containing this provision to complete work promptly. Energy conservation must also go forward at the State and local levels. To help that important effort, I am again urging Congress to pass my proposal, under the authority of the proposed Energy Management and Partnership Act, to provide grants to local governments to meet national energy conservation goals. SOLAR ENERGY Last June, I sent the Congress a Message on Solar Energy outlining my Administration's solar program and setting a national goal for the year 2000 of deriving 20% of this Nation's energy from solar and renewable resources. A firm and ambitious course—not only by the Federal government but also by State and local governments, private industry, academia and private citizens—is required to reach this goal. As part of my solar program announced in June, I proposed a number of initiatives to the Congress to assist in solar energy development. Among those were the establishment of a Solar Energy Development Bank funded at $150 million per year to provide subsidized loans for the installation of solar equipment on homes and commercial structures, and additional tax credits for passive solar construction, wood stoves, industrial and agricultural solar applications, and gasohol. These initiatives have yet to be enacted by the Congress and I urge prompt action on these measures to help speed the penetration of solar technologies in the marketplace. In addition, my FY 1980 program for solar energy exceeded $1 billion government-wide. This is more than three times greater than the program in place when I took office. In FY 1981 government-wide expenditures for solar and renewable energy will be nearly $1.4 billion and will include programs administered by the Departments of Energy, Agriculture, Interior, Defense, State, Housing and Urban Development, and the Tennessee Valley Authority. The Federal solar program has as its overall objectives, the emphasis on basic research and development of solar technologies not currently economic such as photovoltaics, where electricity is generated directly from the sun, and the provision of funding and technical information to accelerate the use of marketable solar technologies which are available now. Solar heat and hot water and wood energy are among these technologies. We will continue to work with the Congress this session on passage of critical solar energy legislation. We are making progress on the transition away from our dependence on fossil fuels and towards the widespread use of renewable sources of energy. We must maintain an aggressive policy to achieve this transition. NUCLEAR SAFETY Immediately following the accident at Three Mile Island, I established a Presidential Commission, chaired by the President of Dartmouth College, to report to me on actions needed to prevent recurrence of this kind of accident. Safety is and will remain my Administration's primary priority in the regulation and management of nuclear power. I have taken steps to correct virtually all problems identified by the Kemeny Commission and have acted to implement most of its specific recommendations, including: • A reorganization of the NRC to strengthen the role of the Chairman. I will soon send to Congress a reorganization plan to give the Chairman power to select key personnel and act on behalf of the Commission during an emergency. • Appointment of a new Chairman of the NRC from outside the agency when the next vacancy occurs. In the meantime, I have designated Commissioner Ahearne as Chairman with a mandate to initiate changes needed to assure the safety of nuclear power plant operations. • Direction to the Federal Emergency Management Agency to lead all off-site emergency activities and review all emergency plans in States with operating reactors by June. • A request to the NRC to accelerate its program to place a resident Federal inspector at every reactor site, and to upgrade training and evaluation programs for reactor operators. I endorsed the approach the NRC adopted to pause in licensing, but have urged the Commission to complete its work as quickly as possible, and in any event no later than June of this year. Once we have instituted the necessary reforms to assure safety, we must resume the licensing process promptly so that the new plants which we need to reduce our dependence on foreign oil can be built and operated. Nuclear power is an option that we should keep open. GASOHOL I have recently proposed a program to accelerate dramatically America's production and use of gasohol, as yet another important way on which we can wage—and win—our energy war. My Administration is committed to a program which will provide between $8.5 billion and $12.8 billion of assistance to stimulate production of alcohol fuels over the coming decade. We will quadruple current gasohol production capacity by the end of this year. During 1981, we should be capable of producing ethanol at an annual rate of 500 million gallons-more than six times the current rate. If this entire amount of ethanol were turned into gasohol, it would replace almost 10% of our anticipated demand for unleaded gasoline in 1981. Our overall gasohol program will spur the investments that we together must make for a more secure energy future. We will create new markets for our farmers. We will no longer have to throw away waste materials which can be turned into profitable, essential fuels. Our Nation's enormous agricultural and fiber resources can be used to help provide a secure source of energy for our future. By producing gasohol from fiber and agricultural by-products, we can meet fuel needs for millions of Americans, including our farmers. I am eager to work with the Congress on my alcohol fuels program, so that we can soon have legislation that will authorize and provide the funding for this important energy development. ENERGY IMPACT ASSISTANCE As new domestic energy resources are developed, particularly in rural or isolated areas of the country, we must provide for the needs of rapidly developing communities. My Administration will continue to work with the Congress to enact legislation establishing an Inland Energy Assistance program, with funding of $150 million per year, to aid those States and local areas which are experiencing a rapid growth in population as a result of new energy supply development. These communities often cannot plan for or meet increased need for new public facilities or services, since the population increases occur before the new energy supply activities are fully developed and producing local revenues. This legislation is essential to ensure that the burdens associated with solving our energy problems are borne equitably by all citizens and regions of the country. III. ENHANCING BASIC HUMAN AND SOCIAL NEEDS For too many years immediately preceding my Administration, too many of our Nation's basic human and social needs were being ignored or dealt with insensitively by the Federal government. Over the past three 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 efforts over the past three years have produced clear progress in our effort to solve some of the country's fundamental human and social problems. The 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, we still have important legislation to enact this year. The legislation is before the Congress, and I will be working with you toward its enactment. Health NATIONAL HEALTH PLAN Last June, 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, affordable, 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 initiatives, including greater incentives for Health Maintenance Organizations. If enacted this year, my Plan would begin providing benefits in 1983. I urge the 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 enormous financial burdens on the American taxpayers. When that comparison is completed, I am convinced 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. HOSPITAL COST CONTAINMENT Hospital Cost Containment remains the single most important piece of legislation that the Congress can pass to demonstrate its commitment to fight inflation. This legislative initiative will save billions of dollars for our Nation's consumers by eliminating unnecessary and wasteful hospital services. We can no longer allow hospital inflation to put needed health care out of the reach of the average American. In a sector where there is an absence of competitive forces, Hospital Cost Containment legislation is necessary to restrain spending, while the process of developing other effective measures proceeds. The longer we delay enacting Cost Containment, the more expensive our fight against hospital inflation will become. I am asking the Senate to move quickly on this legislation. HEALTH PROMOTION AND DISEASE PREVENTION Last July, 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 achievable goals in the reduction of mortality which can be reached by 1990. Consistent with this report, the health strategy I will propose in my FY 1981 budget places unprecedented emphasis on prevention. This strategy includes increased funding for many new and continuing programs in the areas of environmental hazards, workplace health and safety, commercial product safety, traffic safety, community water fluoridation, 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 will 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 are recognized to have extremely high returns in terms of improved newborn and long-term child health. Under the Child Health Assurance Program (CHAP) legislation which I have already submitted to this Congress, an additional two million low-income children under 18 will become eligible for Medicaid benefits, which will include special health assessments. CHAP will also improve the continuity of care for the nearly 14 million children now eligible for Medicaid. An additional 100,000 low-income pregnant women will become eligible for prenatal care under the proposal. We must work together this year to enact CHAP and thereby provide millions of needy children with essential health services. For the third consecutive year, I am requesting expansion of the special supplemental food program for women, infants, and children. Under my proposal, over 2 million low-income nutritionally needy mothers, their nursing infants, and children will receive special food supplements each month. These food supplements have been shown to prevent ill health thereby reducing later medical costs. In addition to these legislative initiatives, I will propose increased funding in the FY 1981 budget for the successful Family Planning program, which targets services on low-income women and adolescents at high risk for unwanted pregnancy. Further, the 1981 budget contains continued funding for my Adolescent Health initiative, which is designed to provide and coordinate services to pregnant teenagers as well as reduce the incidence of unwanted pregnancies. EXPANSION OF SERVICES TO THE POOR AND UNDERSERVED My health proposals for FY 1981 will place high priority on expanding other improvements which have been made during my Administration in the access and continuity of care for medically underserved groups. I will propose substantially increased funding for the most successful programs in this area, including Community and Migrant Health Centers, and the National Health Service Corps program, which places health professionals in rural and urban medically underserved areas. In addition, I am proposing legislation to make coverage of clinics providing comprehensive primary care services a mandatory benefit under Medicaid. MENTAL HEALTH Last year, I submitted a Mental Health Message to Congress and proposed the Mental Health Systems Act, which is based upon recommendations of my Commission on Mental Health. 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, prevention services, and for the development of community-based mental health services. This year, my Administration will be working intensively with the Congress for prompt enactment of this important legislation, and the First Lady will continue her substantial work in this area, as an effective spokesperson and advocate for mental health reform throughout the country. WORKER HEALTH AND SAFETY My Administration will continue to enforce fully laws protecting worker health and safety in a sensible and efficient manner. We will be making further efforts to eliminate frivolous and unneeded rules, while concentrating greater enforcement efforts on the most dangerous and particularly the most unhealthy occupational environments. More effective management of our worker safety programs will serve the interest that both labor and management have in better working conditions. 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 to 380,000, reduced the number of heroin overdose deaths by 80%, and reduced the number of heroin related injuries by 50%. However, drug abuse in many forms continues to detract from the quality of life and is of great concern to us and the people of all nations. I am particularly concerned over the increasing quantities of heroin originating in Iran and Southwest Asia and we will continue to be especially alert to this threat in 1980. During 1980, we will also strive to reduce the supply of illegal drugs, both at their overseas sources and within the United States. While continuing a comprehensive treatment program, our priority will be to reduce drug abuse among adolescents. One of the important goals of my Administration at the beginning of this decade is to change the social acceptance of drug use. 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 last year 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. In this session, I will continue to work with the Congress to achieve additional improvements in the Food Stamp Program and to eliminate permanently the expenditure cap. I will also propose this year that Congress pass the Administration's Child Nutrition Amendments to target assistance under our school meal programs to those most in need. Education The stern challenges of the 80's place new demands on every sector of our society. Education is the insurance we have to provide the talent and capability to meet every demand on our National agenda. The challenge of the 80's in education is to see that quantity education becomes quality education. That is a challenge we can meet. Last year, my Administration and the Congress successfully collaborated to create a new Department of Education. The Department will give 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 combines nearly 150 existing Federal education programs into a cohesive, streamlined organization that will be more responsive to the needs of 'educators and students. The Department will cut red tape and paperwork to make the flow of Federal dollars to school districts and institutions of higher education more efficient, thereby providing students and educators with more benefits per dollar of Federal funds. We are determined to work closely with the Congress this year in making certain that the Department begins on a sound basis, consistent with the purposes and hopes Congress had when creating it. To ensure adequate financial resources for education, I have requested, since taking office, an overall increase in Federal aid to education of 75% above the previous Administration's last budget. Many programs, including those serving disadvantaged and handicapped students and those providing financial aid to students enrolled in postsecondary education, have benefited from ever larger percentage increases during my Administration. My FY 1981 budget request in education will represent a generous increase over last year's budget. There will be particularly significant increases in a number of programs serving special populations, in addition to the major new program designed to give youth the basic skills needed to get and keep a job. I am also recommending a substantial increase in the programs which deal with international education, to improve our understanding of other nations. In addition, proposals I submitted last July to reauthorize the Higher Education Act are still under consideration in the Congress. The centerpiece of my proposals for the student financial aid programs is a major reform of the student loan programs. My proposal would, for the first time, provide a comprehensive program of loans from the Federal government for higher education students who need them. Our proposals would eliminate much of the paperwork and confusion that have plagued students, parents, and colleges by mandating a single application form for all Federal need-based assistance. It is essential that this reauthorization be enacted this year. But the reauthorization legislation must be consistent with my commitment to a restrained, responsible budget. We are eager to work with the Congress to achieve this goal as soon as possible. Income Security WELFARE REFORM Last year, 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. 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. Last year the House passed The Social Welfare Reform Amendments Act, which addresses the major problems in our cash assistance programs. This year, we must continue this momentum toward welfare reform. I am determined to do whatever I can to help enact the two bills needed for the most comprehensive reform of the welfare system in our history. 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. The work of the Congress on this legislation is now almost completed. The well-being of children in need of homes and their permanent placement are primary concerns of my Administration, and I am determined to see improvement in the system which cares for these children. This legislation will help ensure that. LOW-INCOME ENERGY ASSISTANCE Last year, I proposed a program to provide a total of $2.4 billion per year to low-income households which are hardest hit by rising energy bills. With Congress' cooperation, we were able to move quickly to provide $1.6 billion for assistance needed this winter. Of that amount $1.2 billion was provided for grants to eligible households and $400 million for an energy crisis assistance program. The first checks were received by eligible families and individuals in early January. I have already proposed, and will continue to press for, legislation which provides $2.4 billion a year for low-income energy assistance. Funding from this program will come from the Windfall Profits Tax. Continuing this assistance is one of my high priorities in this session of Congress. SOCIAL SECURITY I have been deeply committed to restoring the public's confidence and trust in the Social Security System. With the passage of the Social Security Amendments of 1977, the financial stability of the System was improved. Each month 35 million Americans receive pension and disability checks. They can rely on doing so without fear of interruption. We must, however, address the continuing financial viability of the Social Security System in light of changing economic circumstances. We must also review the equity of the sex-related distinctions contained in the system's benefit provisions. To help ensure the system's viability, I will propose legislation to permit borrowing among the separate trust funds. This measure will strengthen the Social Security System for current and future beneficiaries. I will also review closely the work of several major study groups, and will consult with experts in the Department of Health and Human Services and the Congress to assess their recommendations. DISABILITY INSURANCE REFORMS As a result of the legislation we enacted in 1977, which strengthened the financing of the Social Security System, the Social Security disability insurance program is now in stable financial condition. Last year, my Administration proposed modifications in the program to further improve its administration and to increase incentives for disabled beneficiaries to seek rehabilitation and to return to work. In 1980, we will work with the Congress to enact these reforms. I hope the Congress will stay as close as possible to my original proposal. Housing My Administration has brought improved stability to the Nation's housing market. Housing starts from 1977 through 1979 averaged more than 1.9 million units per year. We have been and remain committed to assuring the availability of an adequate level of mortgage credit during a period of record high interest rates. Toward that goal, we developed the six month money market certificate and broadened the secondary market activity of the Government National Mortgage Association and the Federal Home Loan Mortgage Corporation. Most recently, the bank regulators introduced two and one half year certificates which should become valuable sources of funds for savings institutions, enabling them to continue a high level of mortgage lending. I am pleased that our anti-inflation policies have begun to slow the rate of growth in home prices. Within the context of our overall economic strategy, we will continue to support measures which provide for improved stability in the housing industry, avoiding the boom and bust cycles that led to unemployment, business failures and dislocation in the past. I have sent to the Congress legislation to update the government's emergency authority, under the Brooke-Cranston program to purchase mortgages in times of economic stress. The current authority could not be used effectively. I urge quick Congressional action on this legislation, so that the Administration will be in a position to use this program, if necessary. We have also brought improved stability and predictability and higher production to the provision of assisted housing for low- and moderate-income Americans, including the elderly and the handicapped. During the period from 1978 through 1981, my Administration will have committed nearly 1.3 million units of housing for lower income renters and homeowners. Actual construction starts reached 175,000 units in 1979, a level which we will sustain through the next several years. I will be proposing in my FY 1981 budget a level of 300,000 assisted rental units and 25,000 assisted homeownership units, a total 25% increase over 1980 levels. This recommendation reflects my Administration's concern about the number of poor Americans still living in substandard housing. I will also propose this year to extend HUD's home ownership assistance and interest subsidies to low income tenants in designated revitalization areas. That will help address the particular problem of displacement of low income persons and the elderly by urban revitalization and condominium conversions. My Administration will again be working with the Congress to pass the condominium reform legislation that I proposed last year. That legislation will provide basic protections for the purchasers of condominium units. Many unit owners lack adequate remedies to redress serious inequities under existing law, and expeditious Federal action in this area is a priority. In 1980 we will also propose a number of significant new legislative initiatives. I will be proposing a comprehensive simplification and consolidation of the Nation's basic housing laws on mortgage insurance and mortgage credit activities of the Federal Housing Administration and the Government National Mortgage Association. This proposal will make the services of these agencies more understandable and accessible to the American public. I will also be recommending prompt Congressional action to extend the Home Mortgage Disclosure Act, which has been an important factor in aiding the availability of mortgage credit in inner city areas. Finally, building on the urban partnership we have established with the cities, we will continue to increase the control local governments exercise over the operation of Federal housing programs. We will propose a fundamental change in HUD's public housing modernization program to allow local authorities to use up to 50% of their public housing production funds for modernization and repair of the existing, deteriorated stock of public housing. And in recognition of the severity of the housing problems in America's rural communities, we will be implementing the Action Agenda of 12 Rural Housing Initiatives which I announced last month. NEIGHBORHOOD DEVELOPMENT Neighborhood development is an essential component of my policies designed to revitalize our Nation's urban areas. My Administration has taken a number of steps to assist non-governmental, neighborhood groups carry out community improvement plans. In Fiscal Year 1981, I will propose increased funding for the Neighborhood Self-Help Development Program. This program aims to build the capacity of independent, neighborhood organizations to implement conservation and revitalization projects in low- and moderate-income neighborhoods. In 1980, I will strongly support the renewal of the Home Mortgage Disclosure Act in order to encourage neighborhood reinvestment. My Administration will also continue to support fully the neighborhood reinvestment actions of independent regulatory agencies, such as the Federal Home Loan Bank Board's Community Investment Fund. Transportation A major goal during the 1980's is to bring about a dramatic increase in the economic and energy efficiency of our transportation systems. While this Nation's transportation facilities are among the best in the world, they were planned, designed and constructed in an era of abundant and cheap energy. The country now faces a totally different situation of scarce and increasingly expensive energy. To help combat this problem, I have proposed to use $16.5 billion over the next decade from the windfall profits tax revenues to increase the energy efficiency of transportation. Of that, $13 billion would be allocated to increase transit capacity; $2.5 billion would be directed to promote the energy-efficient use of the automobile; and $1 billion for research on automotive fuel efficiency. I urge the Congress to enact this proposal without delay. To further promote energy conservation, stimulate urban growth and create new employment opportunities in the inner cities, I urge the Congress to support mass transportation authorization legislation. This year I will seek reauthorization and extension of the public transportation grant program. With the assistance of the Congress, we have taken a number of positive steps to reform outmoded transportation regulation. The Airline Deregulation Act of 1978 is working well, with reduced passenger fares per mile, and with the airlines better able to withstand the effects of recession and fuel price increases than would have otherwise been possible. To continue that type of progress, last year I submitted truck and rail regulatory reform bills and I am committed to seeking their enactment in 1980. These important bills will save consumers billions of dollars annually and reduce wasted fuel consumption. To further improve America's railroads, I have introduced legislation to direct Federal railroad financial assistance toward restructuring of failing railroads and improved employment efficiency. I will also ask Congress to increase funding for and extend the life of the Northeast Corridor Improvement Project to improve passenger rail services in the Northeast. Statutory authority for present airport programs and related aviation taxes will expire during 1980. I have already sent to the Congress a proposal to use nearly $15 billion from the Airport and Airways Trust Fund over the next five years for airport and aviation expenses. I urge Congress to enact this proposal this year. Finally, I am committed to the further development of our maritime industry. To achieve maximum export competitive position for the United States, the ties between our port facilities and our land transport facilities must be greatly improved. Last year, my Administration conducted a comprehensive review of maritime policy and transmitted to the Congress our goals for liner regulation and merchant marine promotion. This year, we will be working with the Congress to pass legislation that embodies our interest in expanded trade and a strong merchant marine fleet. Special Needs WOMEN The efforts of my Administration over the last several years have been concentrated on providing American women with a full range of opportunities. Programmatic initiatives have been developed to overcome the widespread discrimination and disparities which women have faced in education, in health, and in employment. The Women's Education Equity Act has been funded in both Titles I and II to provide school boards with grants for programs designed to end discrimination in education. The avoidance of discrimination in education has been also stressed through improvements in the enforcement of existing civil rights legislation. The particular health problems faced have been addressed with increases in the family planning funds under Title XX, as well as improved teenage pregnancy funding and programs. Further, my National Health Plan provides complete coverage to pregnant mothers and infants without cost. Employment still continues to be a major problem with a wide gap between the average week wage of men and women. This is being addressed through major improvements in the funding for the Women's Bureau of the Department of Labor for model training programs and research projects. CETA prime sponsors have been matched on a four-to-one basis to improve the amount of funding for these programs. In the year ahead, the Administration will be supporting the passage of legislation to decrease domestic violence and provide shelters for battered spouses. FAMILIES As part of my Administration's effort to focus attention upon and strengthen the family structure, last year I established the Office of Families within the Department of Health, Education, and Welfare. That office will help coordinate our activities in this vital area. Later this year, we will hold the White House Conference on Families, which I initially proposed during my 1976 campaign. This conference, the culmination of three years of work, will help focus public attention on the problems affecting families and on the means needed to solve or avoid those problems. OLDER AMERICANS My Administration has taken great strides toward solving the particular problems faced by senior citizens. Early in this term we worked successfully with the Congress to assure adequate revenues for the Social Security 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. Further, the Administration worked 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 increased funding for nutrition, senior centers and home health care, and will focus added resources on the needs of older Americans. I will also be seeking to strengthen further the Social Security System by proposing legislation to permit borrowing among the separate trust funds. With the 1981 White House Conference on Aging approaching, my Administration is making every effort to assure an effective and useful conference. This forum 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, with special attention to those in need of long-term care. REFUGEES In 1979 my Administration made significant progress in resolving a number of problems arising from the increase in refugees. Last March, I proposed comprehensive refugee legislation, and I regard its passage as a high priority this year. The legislation—which is the first comprehensive reform of our refugee immigration and domestic resettlement policies in twenty-eight years—will bring common sense and cohesion to an unnecessarily fragmented approach to international and domestic refugee needs. Under vigorous new leadership, the Office of the U.S. Coordinator for Refugee Affairs, which I created last year, will aggressively address the need of refugees at home and abroad. We will also encourage greater cooperation with the private sector and other actions to ensure successful refugee resettlement. VETERANS As our commitment to peace and our national security remains as strong as ever, so too is our Nation's obligation to those whose past service to our country helped to keep peace in the world. For that reason, my Administration's commitment to the needs of America's veterans will remain a high priority. My Administration is committed to sustain high quality health care in the V.A. hospital system, the largest in the free world, and to encourage its growth in the most effective and efficient manner. That commitment will be reflected in my budget for FY 1981. The system must maintain its independent integrity. In 1980, we will continue to honor and seek recognition of all our Nation's veterans, but we must acknowledge that veterans of the Vietnam War have yet to be accorded the full honor bestowed upon veterans of past wars. We will continue this year to assist Vietnam-era veterans with special needs and concerns, building on my initiative last year for these veterans. Accordingly, this year, I will again ask Congress to reform and revitalize the VA's vocational rehabilitation program, and to extend eligibility for the G.I. Bill to those veterans of the Vietnam War era who are most in need of advanced job training opportunities. In addition, I will seek increased benefits for the recipients participating in the current G.I. Bill program. The Nation's veterans deserve these benefits, and I am committed to serving them. My Budget also proposes legislation to grant a cost-of-living increase for the recipients of compensation for disabilities incurred while in the service of their country. Government Assistance GENERAL AID TO STATE AND LOCAL GOVERNMENTS Since taking office, I have been strongly committed to strengthening the fiscal condition of our Nation's State and local governments. I have accomplished this goal by maintaining consistent and strong economic growth, and by encouraging economic development of local communities, and by supporting the General Revenue Sharing and Counter-Cyclical Fiscal Assistance programs. GENERAL REVENUE SHARING This year I will propose the renewal of General Revenue Sharing. My Administration's proposal will forge a closer partnership among the Federal, State and local governments and will further emphasize the pivotal role of the States in our Federal system. My proposal for GRS renewal also will provide additional aid to the cities and counties that are most strained fiscally. I will soon send legislation to Congress that will extend GRS for five years at the current funding level of $6.9 billion. One third of the money will be provided to State governments on the basis of the current distribution formula. As a condition for continued payments to the States, each State will be required to constitute a broadly-based Commission to assess and address the fiscal problems confronted by the State and by the local governments within the State. These Commissions will provide a mechanism for involving the States to a greater extent in the Federal-State-local government partnership. Two-thirds of GRS payments will be provided to local governments on the basis of population, tax effort and per capita income. While I will propose retention of the basic distribution formula for local governments, I also will propose a number of modest formula changes to provide greater aid to localities with large service responsibilities and with insufficient fiscal resources. My proposal for GRS renewal will be the cornerstone of my policy for 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 urge Congress to move quickly on my GRS proposal, to assure that our Nation's States and localities can begin the 1980's in sound fiscal condition. COUNTER-CYCLICAL AND TARGETED FISCAL ASSISTANCE Last year, I submitted to Congress a two-part fiscal aid package designed to strengthen further the fiscal condition of our Nation's States and localities. The first part of this legislation provided standby counter-cyclical legislation to protect States and localities from unexpected changes in the national economy. The second part provided transitional highly targeted fiscal assistance in FY 1980 to only the most distressed local governments. Substantial progress has been made on this legislation in the past year. The Senate passed legislation providing both targeted fiscal assistance and counter-cyclical aid in August, 1979, and similar legislation is now ready for House action. It is important that Congress complete its action on this legislation early this year. Urban Policy Two 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, fifteen of these bills have now been signed into law. Additional action is expected to put into place more of these proposals this year. 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. My FY 1980 budget requested more than $1.5 billion for economic development grants, loans and interest subsidies and more than $2.5 billion for loan guarantees. Approximately 60% of these funds will be spent in our Nation's urban areas. My FY 1981 budget continues these programs at these already high levels. In addition, we have extended the 10% investment credit to include rehabilitation of existing industrial facilities as well as new construction. This year we need to continue our progress by extending and expanding the programs of the Economic Development Administration. With Congress' cooperation, this legislation already has passed both the House and the Senate. Both the House and the Senate bills include the key elements of my original National Development Bank proposal and provide a substantial expansion of the economic development grant, loan, loan guarantee and interest subsidy programs of the Federal government. This legislation is vitally important to the economic revitalization and redevelopment of our Nation's economically troubled urban and rural areas. I am hopeful that the conferees will complete their work shortly so that we can get these essential programs underway. 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 enact legislation reauthorizing the programs of the Economic Development Administration. That legislation is now in Conference, and I urge the conferees to complete their work soon, so that we can 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. This year, I will ask Congress to reauthorize both the CDBG and UDAG programs. I will propose that the CDBG program be reauthorized for three more years, and that a $150 million increase in funding be provided by FY 1981. I also will propose that the UDAG program be extended for three years, and that $675 million be provided for this program in the upcoming fiscal year. These actions should help our Nation's cities and counties to continue the progress they have made in the last three years. RURAL POLICY Since the beginning of my Administration, we have taken steps to address the pressing needs of a changing and rapidly growing rural America. For many rural areas, and for most rural residents, the last decade was a time of rapid growth and development. While this growth and development has produced higher income and increased jobs in rural communities, it has also created substantial housing, energy, transportation, health, and management problems. Last December I announced our Small Community and Rural Development Policy, which is the culmination of several years' work and is designed to address these pressing problems now affecting rural areas. The major elements of the policy involve: 
—Creation of the position of Under Secretary of Agriculture for Small Community and Rural Development to provide leadership in carrying out this policy. 
—Establishment of an inter-agency working group to assist in the implementation of this policy. 
—Appointment of a citizens Advisory Council to advise the President on the performance of the Federal government in the implementation of this policy and to recommend needed changes. 
—An invitation to the Nation's government-formed rural development councils to work in partnership with Federal agencies in delivering State and Federal programs to rural areas. 
—A directive to the working group to annually review existing and proposed policies, programs, and budget levels to determine their adequacy in meeting rural needs and fulfilling the policy objectives and principles. This is a landmark policy. It is the first time rural affairs has been given the prominence of a Presidential policy. Although many new program authorities for dealing with rural problems have been provided over the past two or three decades, there has been no institutional capacity at the Federal level for coordinating and focusing these efforts in a coherent and effective way. This policy provides that capacity, backed by my personal commitment to make it work. My Administration will be working with the Congress this year to pass legislation needed to fulfill the commitment of this rural policy initiative. Consumers CONSUMER REPRESENTATION Last September 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 decisionmaking. Under the Order, each Federal agency must adopt and implement its own strong consumer program. I also established an interagency Council to coordinate the Agencies' actions in responding to the Executive Order. This year, under the leadership of my Special Assistant for Consumer Affairs we will be working to make certain that the Order is faithfully implemented and that consumers receive better protection and assistance from Federal agencies. My Administration will continue to support efforts to provide financial assistance in regulatory proceedings to citizen groups, small businesses and others whose participation is limited by their economic circumstances. These programs are needed to balance the regulatory process by assuring opportunities for broad public involvement in these proceedings. Finally, the Administration will continue to support reform of class-action procedures to ease the unnecessary burdens and costs of class actions, while at the same time preventing their use as an harassment technique. NATIONAL CONSUMER COOPERATIVE BANK My Administration worked closely with the Congress to create the National Consumer Cooperative Bank. The Bank is to provide loans, loan guarantees, and other financial services to non-profit consumer cooperatives, operating in such areas as food, housing, health, and auto repair. To demonstrate my commitment to this innovative institution, I have signed legislation increasing appropriations for the Bank from $4 million in fiscal 1979 to $74 million in fiscal 1980. Legislation has also been signed adding two members to the Bank's board of directors—one to represent the interests of small business and one to represent the general public. This year we will continue our efforts with Congress to make the Bank a strong and vital resource for consumers. CONSUMER SERVICES INFORMATION Genuine competition is lacking in many service industries because consumers generally lack comparative cost and quality information. To help alleviate this problem, my Administration will assist nonprofit groups and State and local government agencies to develop local consumer information systems to provide accurate cost and quality data on locally provided services. An essential part of this effort will be an evaluation of the impact of better consumer information on inflation and productivity in the service sector. Science SCIENCE AND TECHNOLOGY Since the beginning of my Administration, I have been committed to strengthening our Nation's research and development capability and to advancing those areas of science and technology which are vital to our economic and social wellbeing. That commitment has been reflected in: a 40% increase in basic research funding, resulting in the highest research and development funding in our Nation's history; a new Automotive Research initiative in which the industry, in partnership with the Federal government, will undertake basic research essential to help improve future automobiles; an acceleration of scientific and technological exchanges with the People's Republic of China; a major review of space activities and needs, resulting in a 60% increase in space funding and in the development of a space policy that will set the direction of our space efforts over the next decade; and a major new program to encourage industrial innovation. 'Each of the undertakings will be pursued, in cooperation with the Congress, in this year. SPACE The diversity of our activities in space shows that space technology has become an integral part of our lives—in communications, in remote sensing for defense and civilian purposes, and in studies of the earth and the universe. Guided by a sound, aggressive, and fiscally responsible space policy, my Administration has undertaken a concerted effort to support and further our space activities. During my Administration, the expenditures for Federal space programs have increased by 75%. Much of this increase is to meet the increasingly operational nature of our space activities. Nearly half of our expenditures are now for defense purposes; photo-reconnaissance satellites, for example, are enormously important in stabilizing world affairs and thereby make a significant contribution to the security of all nations. And my new initiative to establish an oceanic satellite system will provide invaluable ocean data for both the civil and defense sectors, thereby avoiding unnecessary duplication. I have also emphasized space science and exploration, continuing to fund such spectacular programs as the Voyager missions that provided us with the remarkable close-up views of Jupiter and its moons. I am proposing two new measures-the space telescope and the new Gamma Ray Observatory to provide a unique capability to observe distant galaxies and to obtain information about our universe from outside the earth's obscuring atmosphere. In 1980, I will continue my strong support for the space program. That will be reflected in my budget and in my continued commitment to the space shuttle. Arts & Humanities ARTS The arts provide fundamental enrichment for our Nation. The National Endowment for the Arts has played a major role in focusing public attention on the arts. In doing so, the Endowment has brought wider audiences from all parts of the country into contact with all of the arts. Since the beginning of my term, I have increased the government's support for the Endowment's activities. I will continue that record of expanded support again this year. This will enable the Endowment to strengthen its efforts to open the arts to new audiences, new forums, and new parts of the country. HUMANITIES The humanities play a vital role in deepening our understanding of culture and society. To enable the National Endowment for the Humanities to continue its important efforts, I will again be proposing increased funding for the Endowment. While maintaining the on-going programs aiding scholarly research, education, and cultural interpretation, the Endowment will use these increased funds to augment its support for: 
• research designed to increase our understanding of the traditions, cultures, and directions of countries in the Third World; 
• studies exploring the complex public and ethical issues created by an increasingly technological society; and 
• efforts to preserve the priceless documents and other materials that constitute the heritage of this Nation and of its regional and ethnic communities. To bring the fruits of this work to increasing numbers of the public at large, support will be provided for humanities activities in libraries, museums, and media, as well as for a variety of special activities tailored to the needs of groups that have traditionally not had ready access to opportunities for learning in the humanities. In pursuing these objectives, the Endowment will concentrate on using Federal funds to stimulate support from non-Federal sources, in order to enhance our tradition of private philanthropy and to expand the financial base of our cultural institutions. District of Columbia No longer is our Nation's Capital a convenient target for misdirected political attacks. My Administration has developed a partnership for progress with the District of Columbia. My Administration worked with the last Congress to pass a proposed Constitutional amendment granting full voting representation to the citizens of our Nation's Capital. The ratification process for this proposed amendment has begun and I urge the State legislatures which have not ratified the resolution to join those which have. We will continue our efforts this year in the ratification effort. Last year, progress was made toward strengthening the District's ability to meet its citizens' needs. With the Congress' help, we enacted legislation authorizing construction of the full METRO Mass Transit System and legislation funding the District's pension plan for municipal employees. In 1980, we will build on this record. My Administration will continue to work closely with the Congress and Mayor Barry to expand home rule for the District, including development of a sensible formula for determining the Federal payment to the District. I will continue working with Mayor Barry to make our Nation's Capital City a model for the rest of the Nation. Commission on the Holocaust Last year, I received and approved the recommendations of the President's Commission on the Holocaust, which I established to assess how our government might officially recognize, for the first time, the tragedy of the Holocaust. I will shortly be appointing a Council of distinguished Americans to develop ways to implement the Commission's proposals. The Council and my Administration will work closely with the Congress as we establish an appropriate memorial to the six million Jews and the millions of other victims of Nazism during World War II. IV. MAKING GOVERNMENT EFFECTIVE AND EFFICIENT One of my major commitments as a candidate was to make the Federal government more effective and efficient. Over the past three years, with Congress' help, I believe that enormous progress has been made toward that goal. Reforms thought to be impossible—such as Civil Service Reform—have been enacted. Regulatory burdens—such as airline regulation and government paperwork—have been reduced or eliminated. This coming year, I intend to work with the Congress to improve further the government's ability to serve the nation effectively. GOVERNMENT REORGANIZATION One of my highest priorities has been to improve the quality and efficiency of Federal programs through reorganization. Since I took office, we have submitted 13 reorganization initiatives to Congress, and Congress has approved all of them. These initiatives have strengthened the Federal government's capacity to deal effectively with such critical issues as energy, civil service, disaster relief, civil rights, international development assistance, education and trade. In 1979, Congress approved legislation that I sought to consolidate education programs in a new Cabinet department. The Department of Education will provide full-time leadership, improved management and direct accountability for its performance to me, to the Congress and to those involved in education at every level. This month I put into effect a major reorganization of the Federal government's trade functions approved by Congress last year. In conjunction with the Multilateral Trade Negotiations Agreements this reorganization will ensure that expanded trade opportunities for American business abroad are fully realized, and that my goal of trade expansion is given a higher priority by the Federal government. Organizational initiatives are also an important part of my energy program. We have consolidated enforcement functions for the Alaska Natural Gas Transportation System under a single Federal Inspector to ensure timely completion of the natural gas pipeline. To reduce our dependence on foreign oil, I have proposed the creation of an Energy Mobilization Board which will expedite Federal, State, and local decisions on proposed energy facilities. I am also urging the Congress to approve creation of an Energy Security Corporation to spur development of a domestic fuels industry. This year I will propose to Congress another significant reorganization: a plan which will strengthen the internal management and effectiveness of the Nuclear Regulatory Commission. Safety is our highest concern in regulating nuclear power development, and my reorganization plan will help improve the NRC's ability to ensure nuclear safety. GENERAL MANAGEMENT REFORM To simplify the government for our citizens and to reduce the burden of unnecessary requirements and regulations, we will pursue a number of initiatives this year. We have instituted a governmentwide management system to mandate the cost effectiveness of new regulations and the sunsetting of old ones. In 1980, we will continue to pursue further reform of regulations through legislation designed to make permanent a new framework for managing the regulatory process, and legislation to reduce paperwork and red tape. We will also pursue initiatives to simplify the eligibility requirements for human services programs and to improve the management and delivery of social services through increased use of private sector skills and talent. This reform will reduce the obstacles for needy citizens seeking assistance and improve our ability to remove fraud from the system. Last year, we implemented a program to manage the government's cash flow more efficiently. We have saved over $450 million a year, and we expect further annual savings of $600 million through more timely collection of cash payments, tighter control over disbursements and reductions in idle balances. We have vigorously implemented legislation passed last year to establish independent inspectors general in each department and coordinated their work through the Executive Group to Combat Fraud and Waste in Government. To spot areas where management reform is especially likely to increase efficiency, I have created a Management Improvement Council to diagnose such circumstances and prescribe a cure. We will continue to pursue vigorously our efforts to improve the structure and management of government programs. This is tough, unglamorous work, but it is essential to reduce the cost of government and to provide better service to the American people. CIVIL SERVICE AND COMPENSATION REFORM In March 1978 I said that civil service reform would be the centerpiece of my government reorganization efforts. The Congress supported it, and I am pleased to report it is working very well. In the first real test of the reform act, over 98% of the eligible top-level managers joined the Senior Executive Service, choosing the challenge and accountability demanded by this new corps of top executives. The Office of Personnel Management, the Merit Systems Protection Board, and the Federal Labor Relations Authority authorized by the Act have operated effectively in their first year. And the agencies throughout the government continue to make substantial progress in implementing the other important civil service reforms. For the first time in the hundred year history of the civil service system Federal employees can get and hold jobs, and be paid, on the basis of actual on-the-job performance—not merely length of service. Last year, I asked the Congress to take the next step in my Federal Employee Compensation Reform Message. I urged you to pass a pay reform bill which would modernize the Federal compensation system. This legislation is fair to Federal employees and to American taxpayers alike. Our white collar, blue collar and military compensation systems must be reformed in order to make certain that we neither overpay nor underpay Federal employees. It is a fair bill, and one which will help restore public confidence in the Federal service. I urge Congressional action on it. REGULATORY REFORM Over the past three years, we have put into place a comprehensive program to overhaul the Federal regulatory establishment, and eliminate unnecessary regulatory burdens. For 1980, I am determined to continue the progress of this effort; it is the most important part of my ongoing campaign to make our government more efficient and effective. 
Airline deregulation. The Airline Deregulation Act of 1978 has revolutionized air transportation. In the first year of its operation, the new environment of free competition created by the law produced a record number of flights and passengers, a much wider variety of service packages, and a savings of approximately $2.5 billion in the fares paid by the travelling public. Under the Act, regulatory controls will continue to be relaxed, until in 1985, the CAB itself will be completely phased out of existence. Trucking deregulation. The trucking industry is enmeshed in detailed regulations that control the routes truckers can drive and the goods they can carry. In addition, truckers are allowed to fix prices through industry rate bureaus. This regulatory system works to stifle competition, waste fuel, reduce service to small towns, and inflate prices. My appointees to the Interstate Commerce Commission have started modernizing the system, but we need legislation to provide comprehensive reform. I have submitted a bill to open up entry, lift restrictions on the goods truckers may haul and the routes they may use, promote vigorous price competition, reduce regulatory delays, and improve safety on the road. This bill is an important step in fighting inflation, and I look forward to passage of a sound bill by early summer. If appropriate legislation is not enacted, I would expect the ICC to proceed under its authority to implement reform initiatives. In addition, we need legislation to increase competition in the household moving industry. The Senate recently passed a constructive bill, and I urge the House to strengthen and pass it. Railroad deregulation. Railroads have traditionally been one of the most overregulated industries in America. As a result, management initiative, service, and competitive pricing have been stifled. Railroad plants and equipment have deteriorated, and the average railroad industry rate of return on investment is far too low. My Administration will continue to work to eliminate these wasteful conditions and the regulatory structure which helps cause them. Our principal weapon in that effort is the railroad deregulation bill that I proposed last year. Enactment of significant railroad deregulation legislation this year is essential to restoring our railroad system to its former strength. Financial institutions regulation. Last year the combination of deposit rate ceilings and outmoded restrictions on the asset powers of thrift institutions produced severe inequities for the small saver, substantial savings outflows from many thrift institutions, and disruptions in the availability of mortgage credit. Contrary to its intended purpose, the Regulation Q system has contributed to the cyclical nature of the housing market and has destabilized the flow of mortgage funds. In a related area, changing competitive relationships, as well as innovations in the market, have increased inequities and produced a continuing decline in Federal Reserve membership. Now is the time to take the actions necessary to prepare for the financial environment of the 1980's. The Congress passed legislation in 1979 .which increased the ability of many Americans to obtain mortgage credit. In addition, the Congress made major progress toward enactment of the historic financial reform legislation I proposed last year. This year we will work closely with Congress to achieve final approval of our financial reform objectives: the phaseout of Regulation Q deposit rate ceilings, the broadening of the asset and liability process of thrift institutions, the approval of legislation to stem the decline in Federal Reserve membership, and the elimination of other unwarranted regulatory restraints. Prompt action is necessary to avert a significant decline in Federal Reserve membership and to assure a fair rate of return to the saver, a steadier flow of housing credit, and a stable financial environment for all classes of depository institutions. This spring I will submit to the Congress the Administration's findings on the McFadden Act and other geographic restraints on banking activity. Telecommunications deregulation. Technological advances, such as satellites, computers, and microwave relays, have made it practical to move much of the telecommunications industry from a regulated monopoly to a deregulated, competitive market. This shift is already underway and is benefitting individual customers as well as companies. Toward that end, I will continue to support strongly ongoing efforts in Congress to pass a bill that will encourage and protect competition, remove needless regulation, and maintain universal, reliable service. In addition, we need this legislation to smooth the transition to a competitive environment by protecting workers' rights, ensuring against any large increases for rural telephone rates and providing needed national security and emergency preparedness powers. Regulation Reform Act. In March of 1979, I sent to Congress the Regulation Reform Act. When enacted, this bill will assure that new and existing regulations will be rigorously scrutinized before they can be issued or retained, that wasteful delays are eliminated from the regulatory process, that key regulatory officials be selected purely on grounds of integrity and competence, and that the public will be assured meaningful opportunities to participate in regulatory decision-making. The reform steps I have taken administratively have already avoided billions of dollars in unnecessary regulatory costs, erased thousands of useless regulations from the books of OSHA and other agencies, and opened up the regulatory process across the Executive Branch. Enactment of my regulatory reform bill legislation is needed in this Congress, to strengthen these reforms, and extend their benefits to the independent regulatory commissions. Presidential oversight of regulation. Many regulatory programs are vital to the protection of the health, safety and welfare of our citizens. These we must manage effectively, while cutting out wasteful red tape, rigidity, and costs imposed on industry and the public, and enhancing opportunities for public participation in decision-making. From the outset of my Administration, I have actively used my authority as President to assure that Executive Branch regulatory agencies respect these goals, through executive orders, through oversight from the Office of Management and Budget, through a Regulatory Analysis Review Group to assure that regulatory costs are accurately evaluated, and through a Regulatory Council to eliminate duplication and overlap among individual agencies. We will pursue these efforts in 1980. Legislative Veto. While supporting the Regulation Reform Act, I will strongly oppose proposals that would undermine the ability of the President to manage the regulatory process, or would cripple the effectiveness of needed programs. In particular, my Administration will oppose proposals to subject individual agency rules to veto by one or two houses of Congress, to transfer regulatory policy decision-making authority to the Federal courts, and to create rigid statutory procedures for Presidential supervision of Executive Branch regulatory agencies. 
This last year has seen Congress besieged by assaults on various important regulatory statutes, especially the Federal Trade Commission Act, seeking groundless exemptions, crippling loopholes, and unprecedented Congressional interference with ongoing proceedings. I will resist strenuously all such efforts to confuse special interest pressure with regulatory reform. COMMUNICATIONS My highest priority in the communications area is passage of regulatory reform legislation covering the telecommunications industry. In addition, in 1980 we will continue our program to make the media more diverse and to ensure that the public gets the full benefit of the advances in communications technologies. Administration efforts include: 
• working to increase minority participation; already our program has helped produce a two-thirds increase in minority ownership of broadcast stations, and we will continue that progress; 
• working with the Federal Communications Commission to continue to eliminate needless paperwork and regulations; 
• pursuing plans to open up channels for as many as 1,000 new radio stations, to improve service to rural areas and provide more opportunities for minorities; 
• developing proposals to improve the way frequencies are assigned, including incentives for users to conserve the increasingly crowded radio spectrum; 
• encouraging the use of satellites, cable TV, and other technologies to deliver public services and to improve rural communications; 
• working with Congress and the FCC to protect First Amendment rights and the free flow of information, through such measures as my bill on police searches of newsrooms; and • continuing to support a strong, independent public broadcasting system and working to increase its coverage to reach all Americans. In addition, I will submit to the Senate, later this year, the Treaty and Protocol that resulted from the World Administrative Radio Conference concluded in Geneva in December. This conference, and the follow-up conferences that will be held in the next few years, will determine the utilization of the radio spectrum for the rest of the century. We prepared for this conference for over two years; our delegation has secured for the United States all allocations necessary for its civilian and military services while also responding to the legitimate needs of the Third World nations. SUNSET We will continue to work with Congress to pass sunset legislation. This legislation will overcome the inertia that lets Federal programs continue when they have outlived their purpose. It will ensure that Congress regularly reviews programs to decide whether they should be changed or eliminated. A comprehensive sunset bill, with a strong mechanism to force action when programs need change, is a vital building-block toward making the government more efficient. PAPERWORK REDUCTION In the past three years, my Administration has cut the amount of time Americans spend filling out Federal forms by 127 million hours—almost 15%. I recently issued an Executive Order to continue this progress by strengthening our management program. However, Congress is enacting new paperwork requirements in energy, environmental protection, and other areas, and we must have legislation to provide the strong administrative controls that will be needed to minimize these burdens. I urge Congress to pass a Paperwork Reduction Act to close the wide loopholes in Executive Branch oversight power and create new authority to halt duplicative data collection. In addition, I urge legislation be enacted to improve Federal statistical systems by strengthening central management and by encouraging agencies to share data, under new, tough confidentiality safeguards. LOBBY REFORM The American people have a right to know what significant influences affect their national legislature. The proliferation of well-financed, organizational lobbying activities during recent years has demonstrated the clear need for reform of the outdated and ineffective lobby disclosure law now in effect. This year my Administration will again work with Congress to pass a sound lobby law reform bill—one that respects the First Amendment rights of all Americans and minimizes paperwork burdens, yet allows meaningful disclosures. PUBLIC FINANCING OF CONGRESSIONAL ELECTIONS The impact of special interest contributions on congressional campaigns has grown dramatically in recent years. It is time to adopt public financing for congressional elections before it is too late. Such public financing will avoid even the appearance of undue special interest influence, and will allow worthy candidates without adequate funds to run for Congress. I urge the Congress to act on this legislation. JUDICIAL REFORM In my Civil Justice Reform Message last year, I made proposals to increase the efficiency, cut the cost, and enhance the integrity of our Federal court system. Last year, I signed the Federal Magistrates Act of 1979. Both the Senate and the House have passed the Dispute Resolution Act, which would develop simple and informal means of resolving citizen disputes, and I look forward to early final action on this legislation. The Federal Courts Improvement Act has passed the Senate, and I urge the House to act on it early in this session. I hope that the Congress will also pass the other bills recommended in my Message, such as the one which would curtail diversity jurisdiction. LEAA LEAA's potential to improve and strengthen State and local criminal justice programs has never been realized. Two years ago, I proposed far-reaching reforms in its structure and programs. Last month, Congress passed, and I signed, a bill which incorporated most of those reforms and which reauthorized LEAA for four more years. These reforms will preclude excessive expenditure of funds for equipment, enable better information and research about crime problems and permit funding only of innovative programs which have a high probability or record of proven success. During this year we will implement the new legislation in a way that makes certain the agency is efficiently carrying out its mission of providing meaningful law enforcement assistance. PATENT REFORM As part of the Industrial Innovation policy that I announced last year, we will be seeking to reform our patent laws in a way which will spur creativity and invention. The Administration will be working with Congress to develop a single policy to guide the Departments and Agencies dealing with patents resulting from federally-sponsored research. Such uniform treatment should encourage the commercial use of discoveries while protecting the taxpayers' investment. V. PROTECTING BASIC RIGHTS AND LIBERTIES Since taking office, I have worked to protect and enhance the basic fights and liberties guaranteed to Americans under the Constitution and our other laws. With your cooperation, we have made important progress in this area. This year, though, important work remains to be done if our goal of ensuring equality and basic freedoms for all Americans is to be realized. The dream of equal opportunity remains unfulfilled. I will do whatever I can to bring that dream closer to realization. EQUAL RIGHTS AMENDMENT I am Committed as strongly as possible to the ratification of the Equal Rights Amendment. Its ratification this year will be one of my highest priorities. As a result of our efforts in 1978, the Equal Rights Amendment's deadline for ratification was extended for three years. We have now two years and three States left. We cannot afford any delay in marshalling our resources and efforts to obtain the ratification of those three additional States. With your help, I believe we can succeed this year. 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 that ability. CIVIL RIGHTS The completion of the civil rights reorganization and significant operational improvements in the agencies that carry out equal employment opportunity functions have enabled the federal government to shift its focus for the first time to large-scale enforcement efforts. These have been buttressed by our vigorous and successful posture in several landmark affirmative action cases. At the same time, the reorganization mandate to eliminate unnecessary costs, paperwork and other burdens to businesses is being vigorously implemented by the Equal Employment Opportunity Commission. That will continue with increased resources this year. To make certain that civil rights activities are given the highest priority in the Agencies, we have created a civil rights unit in the Office of Management and Budget. This new unit will monitor civil rights enforcement and advise the Director of OMB on the funding and management resources needed for effective enforcement. 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, and I will continue to work with the Congress to enact legislation that will achieve this goal. FAIR HOUSING Enforcement of laws against housing discrimination has lagged in comparison with the employment area. Because there is no adequate enforcement mechanism, Title VIII of the Civil Rights Act, which prohibits discrimination in housing, has been largely ineffective. I have strongly supported legislation which seeks to provide the Department of Housing and Urban Development with the power to hold administrative hearings and to issue "cease and desist orders" in cases where Title VIII has been violated. We will continue to work with the Congress during 1980 to enact this long-overdue authority. Its enactment will continue to be my highest legislative priority in the civil rights area. INTELLIGENCE CHARTERS A legislative charter for the intelligence agencies and a charter for the FBI are long overdue. 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. Several months ago, I submitted to the Congress a legislative charter for the FBI which protects the rights of our citizens while preserving the Bureau's ability to meet its important responsibilities. In 1980, we will continue to work with the Congress toward enactment of this legislation. Events of the past year indicate the need for a strengthened and clearly defined role for our intelligence community. On the basis of the sound consultative work done already with Congress, I plan to submit a proposed charter early this year. HATCH ACT REFORM Federal employees who work in nonsensitive positions should have the right to participate in off-the-job political activities. My Administration will continue to support legislation which would reform the Hatch Act to accomplish this goal, and would prevent any on-the-job political abuse. CRIMINAL CODE The Federal criminal laws are often archaic, frequently contradictory and imprecise, and clearly in need of revision and codification. My Administration will continue to work with the Congress to develop a Federal criminal code which simplifies and clarifies our criminal laws, while maintaining our basic civil liberties and protections. LABOR LAW REFORM Our labor laws are vital to ensuring that a sound labor-management relationship exists in collective bargaining. Efforts to abuse those labor laws, especially by unduly slowing or blocking their implementation, have increased in recent years. As a result, a reform of our labor laws is badly needed to guarantee that their intended spirit is fully observed and enforced. I am again ready to work with the Congress to develop legislation which improves the fairness and effectiveness of our labor laws. HANDICAPPED During my Administration, we have made great strides toward ending discrimination against handicapped people through broadened employment opportunities, educational opportunities, and greater access to public facilities and services. Just after I came to office, the Department of Health, Education and Welfare issued the first regulations on Section 504 of the Rehabilitation Act. Since then, numerous other Federal agencies have issued final regulations, and we expect to have regulations from all the necessary agencies by the end of 1980. Last year I supported legislation which would prohibit discrimination against the handicapped in private employment and housing. I will continue to support that initiative this year and to clarify legislative and administrative uncertainty about provisions of the Acts affecting the rights or programs affecting handicapped individuals. While my Administration has worked to improve programs serving the handicapped, we must continue to push for removal of psychological and physical barriers against handicapped people in our society. We are actively organizing and preparing for next year's International Year of the Disabled. The International Year will enable this country—with the public and private sector working together-to demonstrate its commitment to the disabled and to teach or learn from other nations about ways to advance the quality of life of handicapped individuals. PRIVACY Changes in our society are threatening the rights to personal privacy. Government and private institutions collect increasing amounts of information about individuals. Many decisions that once were made face-to-face are now based on recorded data, and modern technology allows this data to be transferred throughout the country instantaneously. Much of this information must be collected and used to enforce the laws, provide financial services, and for other important services. However, these needs must be balanced against the right to privacy and against the harm that unfair uses of information can cause. Last year, I announced the government's first comprehensive privacy program, building on legislation already passed to prevent improper use of wiretaps and improper access to personal bank records. This new program has five separate bills—establishing privacy safeguards for medical, research, bank, insurance, and credit records and providing special protections, modeled on the wiretap laws, for electronic funds transfer systems. In addition, I have proposed legislation limiting police searches of newsrooms to deal with the problems created by the Supreme Court's Stanford Daily decision. My privacy program includes non-legislative action as well. We have improved the handling of Federal records—we stopped the growth of personnel records and started cutting back, and we established rules to control computer matching of Federal files. I have called upon employers to establish voluntary privacy codes for the records concerning their employees and launched nationwide hearings to promote that effort. International guidelines are needed to protect the privacy of personal information transferred from one country to another, while avoiding disruption of needed information flows. We have spearheaded work in the Organization for Economic Cooperation and Development toward this end, and guidelines have been drafted for adoption this year. The key protections, however, need legislation. I urge Congress to act now on the five privacy bills I have submitted. VI. PROTECTING AND DEVELOPING OUR NATURAL RESOURCES Two of our Nation's greatest natural resources are our environment and our fertile agricultural capacity. Since I have been in office, I have worked with the Congress to preserve, protect and where appropriate, develop our natural resources. In the environmental areas, I have been concerned about the importance of preserving a clean environment, and have taken a number of major actions designed to foster such an environment. In the agricultural area, I have taken the steps needed to improve farm incomes and increase our agricultural production to record levels. With your help we can continue to make progress in both of these areas in 1980. ENVIRONMENT Balancing the need for resource development and conservation has been a major environmental theme of my Administration. I remain strongly convinced that this Nation can have economic and energy development and adequate environmental protection. As we open the decade of the 80's, all Americans can be proud of their natural and cultural heritage which continues to satisfy economic, recreational, and spiritual requirements. 1980 is the tenth anniversary of a decade of environmental awareness that began on Earth Day, 1970. During this past decade, monumental legislative achievements have occurred. These include: the National Environmental Policy Act, the Clean Air and Clean Water Acts, additions to our National Parks, Trails, and River Systems, and the Endangered Species Act. I was pleased to sign into law the reauthorization of the Endangered Species Act last year. During 1980 as we celebrate this tenth anniversary let us rededicate ourselves to the creation and maintenance of a safe and healthy environment, to the wise use and development of our natural resources, to the fair implementation of environmental statutes, to preserving unique wildlife resources, and to even greater achievements for improving the quality of life for all Americans. During the next year, my Administration will vigorously pursue the protection of Alaskan lands; the implementation of an effective water resources policy; a careful implementation of domestic energy production programs, with proper regard for environmental values; a review of wilderness potential on the public lands; creation of a hazardous waste management program; fisheries development and coastal management policies. ALASKA LANDS Passage of legislation which adequately resolves the allocation of Federal lands in Alaska continues to be my highest environmental priority. At stake is the fate of tens of millions of acres of beautiful land, outstanding and unique wildlife populations, native cultures, and the opportunity to ensure that future generations of Americans will be able to experience and benefit from these nationally significant resources. The proposals which I have supported in the 95th Congress, and again during the first session of this Congress, assure that Alaska's great national treasures can be preserved, while providing for increased domestic energy production and for the economic needs of all Alaskans. In addition to recommendations for designating National Parks, Wildlife Refuges, Wilderness Areas, National Forests, and Wild and Scenic Rivers on the Federal lands in Alaska, I have or will be proposing aggressive but environmentally sensitive oil and gas development programs in Alaska's outer continental shelf and National Petroleum Reserve. My Administration is also stepping up the transfer of 103 million acres of Federal land to the State of Alaska and 44 million acres to Alaskan natives so that both the State of Alaska and the Native Corporations can build their economic base. However, in order to maintain the proper balance between resource protection and development in Alaska, the Congress must now enact the comprehensive legislation which has been before that body for over two years. The 96th Congress will soon be asked to vote on what clearly amounts to the conservation decision of the century. The House of Representatives has already passed a strong conservation bill and the Senate will shortly take up debate on this issue. I urge that the Congress carry out its responsibility to enact legislation which truly protects and preserves our natural heritage in Alaska. HAZARDOUS WASTE/TOXIC SUBSTANCES One of the most important environmental and public health issues facing our Nation is the threat caused by the improper disposal of hazardous substances. Accidents like those at Love Canal and Valley of the Drums have highlighted the inadequacy of the existing laws and inability of governments at .all levels to respond quickly and efficiently to these dangerous incidents. In the coming years, there may be thousands of hazardous waste sites which will need attention, the cost of which could be enormous. Clearly an effective public policy is needed to deal with this situation. Last June, I submitted to Congress a comprehensive $1.6 billion legislative proposal that establishes a system to deal with releases from uncontrollable hazardous waste sites as well as spills of oil and hazardous substances. This system includes provisions for emergency government response, effective enforcement, liability and in some cases, economic compensation. The system also calls for a partnership with the States in cleaning up and containing this problem. This legislation is absolutely essential if we are to meet our responsibilities to the public and I urge the Congress to act on it expeditiously. NUCLEAR WASTE MANAGEMENT The problems related to the management, disposal and storage of nuclear wastes remains one of the most serious problems with nuclear power. My Administration has been deeply concerned with this problem for the past three years. An exhaustive study and review of this problem has been undertaken by the Administration over the past year. Based on the findings and recommendations of that study, I will soon be proposing to Congress comprehensive legislation that deals directly with this problem. My proposals, if enacted, will represent the biggest step forward in the area of nuclear waste management since the dawn of the nuclear age. I urge the Congress to take action in this area this year. RARE II In 1979, I submitted to Congress my recommendations on wilderness for the National Forests under the RARE II procedure. These proposals include 15.4 million acres of new wilderness—the most desirable areas within the vast review. Over 10 million acres are undergoing further study. In addition, I directed the Forest Service to release for multiple use management the 36 million acres of land that was designated for non-wilderness. I urge the Congress to approve my recommendations this year. WATER POLICY LEGISLATION Sound water management is vital to the economic and environmental health of our Nation. Administrative implementation of the comprehensive water policy initiatives which I announced in June of 1978 is nearing completion. We will continue to work with the Congress to pass legislation needed to improve further Federal water resources programs and to support the States in their primary responsibilities for water allocation and management. I am pleased that last fall the Senate authorized an expanded grant program to the States for water management and water conservation technical assistance, and I expect the House to soon pass this legislation. The cost sharing bill which I have proposed is critically needed to give the States a more effective voice in setting water project priorities in state and Federal water policy decisions. I believe the establishment of an independent review unit in the Water Resources Council is essential, and I urge the Congress to act quickly on the pending authorization. The independent review unit will provide an objective, impartial, technical analysis to the Administration and to the Congress, of water projects proposed for authorization or new-start construction funding. This information will enable the Administration and the Congress to make better informed decisions on where to invest the taxpayers' water resource dollars. 
It should be clear that my Administration supports sound water resources development, and has taken several steps to improve the quality of projects sent to Congress for authorization and funding. I am concerned that the water projects authorization bills now under consideration by Congress threaten to overturn the progress made in recent years. I urge the Congress to give this legislation the careful and thoughtful scrutiny required by our joint commitment to restraining Federal spending and ensuring a sound environment. FISHERIES DEVELOPMENT Last May, my Administration proposed a fisheries development policy that recognizes both the importance of the U.S. commercial fishing industry to the Nation's economy and that fish is an important food source. This policy includes a recognition of the potential for fisheries expansion within the Nation's 200-mile fisheries conservation zone, and the importance of the Federal government's creating a positive climate for fisheries development. In conjunction with this policy, my Administration has sent a legislative proposal on fisheries development to the Congress. It is time that the United States begin taking action to more fully utilize the fisheries resources of the 200-mile economic zone. I urge the Congress to join with me in this effort. Agriculture AGRICULTURAL PROGRESS While much work remains to be done, America's agriculture is by far the best in the world. Efforts made by my Administration, in cooperation with Congress, to secure economic stability for the farmer, have produced results. In 1979, we experienced another record year for farm production. Net farm income jumped to $32 billion in 1979, a $4 billion increase over 1978. Agricultural exports also reached new highs, rising 18% in 1979 to $32 billion. Despite the suspension of exports to the Soviet Union, we can expect a continued healthy export picture for our Nation's farmers. Last year the Secretary of Agriculture travelled around the country and conducted an extraordinarily detailed and creative dialogue with the Nation's farmers. He obtained invaluable suggestions on economic and social issues concerning farm life; as we prepare our farm program for this year and beyond, the advice of our Nation's farmers will clearly be reflected in the policies we develop with the Congress. SOVIET GRAIN SUSPENSION In response to the Soviet armed invasion of Afghanistan on Christmas Eve, I took several actions to demonstrate our Nation's resolve to resist such hostile acts of aggression against a sovereign, independent nation. One of the most important of these actions was the suspension of grain sales to the Soviet Union beyond the 13 million tons provided under our 1975 grains agreement. The Soviet Union had intended to purchase an estimated 25 million tons of U.S. wheat and feed grains. Thus, the suspension of sales above the 8 million ton agreement level is expected to result in the freeing of about 17 million tons. My decision to suspend these sales was a difficult one, but a necessary one. We could not continue to do business as usual with the Soviet Union while it is invading an independent, sovereign nation in an area of the world of strategic importance to the United States. I am fully committed to a policy of promoting international trade, and particularly the expanded export of U.S. agricultural products. I am proud of my Administration's record in this regard. Because of the aggressive efforts of American farmers and businessmen, working in cooperation with Federal representatives, and the provision of new authorities by Congress, we have set new export records in each of the past 3 years. Even with the Soviet suspension, we intend to set still another record in the coming year. In making my decisions on the suspension, I believed it would be unfair to ask the American farmer to bear a greater share of the burden and sacrifice than their fellow Americans were asked to bear. Farmers should not be penalized simply because they are part of an agricultural machine that is of growing strategic importance in the world. To protect American farmers from the price depressing effects of the grain suspension, I directed the Secretary of Agriculture to take several actions: • The Commodity Credit Corporation will assume the contractual obligations for grain previously committed for shipment to the Soviet Union. • The Department of Agriculture, acting through the Commodity Credit Corporation, will purchase wheat contracted for export to the Soviet Union for the purpose of forming an emergency international wheat reserve. In this connection, I will propose legislation authorizing release of this wheat for international aid purposes. • To encourage farmers to place additional grain in the farmer-held grain reserve, the Secretary of Agriculture has made several modifications in that important program. 
• The Commodity Credit Corporation will purchase corn at the local level to alleviate the congestion within the transportation system caused by the refusal of the International Longshoremen's Association to load grain up to the 8 million metric ton level. In combination, these actions are expected to isolate from the market an amount of grain equivalent to that not shipped to the Soviet Union, thereby avoiding a decline in grain prices. I am pleased to report that these actions are having the desired results and that American farmers are being protected from the effects of the suspension. If further actions are necessary to insure that American agriculture does not bear a disproportionately large share of the burden associated with this action, I will not hesitate to take them. CROP INSURANCE We now have an assortment of Federal loan, grant and insurance programs designed to protect farmers from the economic risks associated with natural disasters. We recognized early in my Administration that these programs were in serious need of reform. They are marked by many shortcomings: inconsistencies in eligibility, inequities in the level of benefits to producers of different crops, and inefficiencies in the use of taxpayer money. Recent evidence of abuse in the agricultural disaster loan programs provides further evidence of the need for this reform. I have sent the Congress a proposal to consolidate these authorities in the form of an all-risk comprehensive insurance program. Congress has made clear progress in devising an improved crop insurance program, but work remains to be done. I urge the Congress to finish its work on this legislation as soon as possible. INTERNATIONAL EMERGENCY WHEAT RESERVE The Congress has not yet acted on the proposal I made in the last Session to create an International Emergency Wheat Reserve. This reserve of up to 4 million tons of wheat would be used to assure recipient nations that we will meet our international food aid commitments. The suspension of further grain sales to the Soviet Union provides an appropriate opportunity to provide this authority, and thereby establish guidelines for the release of wheat now being acquired by the Commodity Credit Corporation. FOREIGN POLICY From the time I assumed office three 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, including the year old revolution in Iran and uncertainty about the future in many other 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 stability and to the flow of oil. As the unprecedented and overwhelming vote in the General Assembly demonstrated, countries across the world—and particularly the non-aligned—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 Western 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. —And 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. The central challenge for us today is to our steadfastness of purpose. We are no longer tempted by isolationism. But we must also learn to deal effectively with the contradiction 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 five basic goals for America in the world over the 1980's: —First, we will continue, as we have over the past three 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. —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. Continuing close cooperation between the Congress and the Executive Branch will be required to achieve these goals. My most immediate legislative priorities include: 
(1) Defense Department Authorization and Appropriations Bills 
(2) Special International Security Assistance, for Pakistan and other countries 
(3) Bilateral and Multilateral Foreign Assistance Bills, including Central America supplemental 
(4) The China Trade Agreement 
(5) Intelligence Charters 
(6) Refugee Legislation and Funding 
(7) Human Rights Conventions 
(8) And, when appropriate, the SALT II Treaty. 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 hostage, 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. As I stated one year ago in Atlanta: "This is still a world of danger, a world in which democracy and freedom are still challenged, a world in which peace must be re-won every day." 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 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 attack on Afghanistan and the ruthless extermination of its 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 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. On January 4 I therefore announced a number of measures, including the reduction of grain sales and the curtailment of trade and technology transfer, designed to demonstrate our firm opposition to Soviet actions in Afghanistan and to underscore our belief that in the face of this blatant transgression of international law, it was impossible to conduct business as usual. I have also been in consultation with our allies and with countries in the region regarding additional multilateral measures that might be taken to register our disapproval and bolster security in Southwest Asia. I have been heartened by the support expressed for our position, and by the fact that such support has been tangible, as well as moral. The destruction of the independence of Afghanistan government and the occupation by the Soviet Union has altered the strategic situation in that part of the world in a very ominous fashion. It has brought the Soviet Union within striking distance of the Indian Ocean and even the Persian Gulf. It has 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 might well control an area of vital strategic and economic significance to the survival of Western Europe, the Far East, and ultimately the United States. It is clear that the entire subcontinent of Asia and specifically Pakistan is threatened. Therefore, I am asking Congress, as the first order of business, to pass an economic and military aid package designed to assist Pakistan defend itself. 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 1981 budget would increase funding authority for defense to more than $158 billion, a real growth of more than 5% over my request for Fiscal Year 1980. Therefore, requested outlays for defense during Fiscal Year 1981 will grow by more than 3% in real terms over the preceding year. 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: (a) 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; (b) 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; (c) It provides us the ability to come quickly to the aid of friends and allies around the globe; (d) 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 missile force. The first new Trident submarine has already been launched and will begin sea trials this year. The second Trident will be launched in the spring of 1980. The first of our new Trident missiles, with a range of more than 4,000 miles, have already begun operational patrols in Poseidon submarines. The new MX missile will enhance the survivability of our land-based intercontinental ballistic missile force. That is why I decided last spring to produce this missile and selected the basing mode best suited to enhance its capability. Further the MX will strengthen our capability to attack a wide variety of Soviet targets. 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. 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%. We are accelerating the rate at which we can move combat aircraft to Europe to cope with any surprise attack, and adding to the number of shelters at European airbases to prevent our aircraft from being destroyed on the ground. 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 and production 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. In addition, responding to the Soviet military presence in Cuba and the proxy role of Cuba on behalf of the USSR, we have taken or are taking the following actions in support of the rapid deployment force: 
(1) We are substantially increasing our ability to monitor Cuban and Soviet/Cuban activities; (2) We have established a Caribbean Joint Task Force Headquarters which improves our ability to respond to events in the region; 
(3) We are increasing regional military exercises; and, 
(4) We are intensifying assistance to countries in the region that are threatened by Soviet or Cuban intervention. NAVAL FORCES Sea power 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. 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 I have also launched a major effort to establish a coherent and practical basis for all government mobilization planning. Begun last May, this is the first such effort conducted at Presidential level since World War II. It involves virtually every Federal agency, with the aim of improved efficiency and readiness. OUR INTELLIGENCE POSTURE Our national interests are critically dependent on a strong and effective intelligence capability. We will not shortchange 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 1980 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. It is imperative that we now move forward promptly within the context of effective Congressional oversight to provide America's intelligence community with Charters which can permit it to operate more effectively and within a national concern codified by law. 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 At]antic 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 At the outset of this Administration I emphasized the primacy of our At]antic relationship in this country's national security agenda. We have made important progress toward making the Atlantic Alliance still more effective in a changing security environment. We are meeting the Soviet challenge in a number of important ways: First, there is a recognition among our allies that mutual security is a responsibility to be shared by all. We are each committed to increase national defense expenditures by 3% per year. There remains much work to be done in strengthening NATO's conventional defense; the work proceeding under the Alliance's Long Term Defense Program will help achieve this objective. 
Last month, we and our NATO allies took an historic step in Alliance security policies with the decision to improve substantially our theater nuclear capabilities. The theater nuclear force modernization (TNF) program, which includes the deployment of improved Pershing ballistic missiles and of ground-launched cruise missiles in Europe, received the unanimous support of our allies. The accelerated deployment of Soviet SS-20 MIRVed missiles made this modernization step essential. TNF deployments will give the Alliance an important retaliatory option that will make clear to the Soviets that they cannot wage a nuclear war in Europe and expect that Soviet territory will remain unscathed. While we move forward with our necessary defense efforts in Europe, we are also proceeding with our efforts to improve European security through arms control. As an integral part of the NATO TNF decisions, the Alliance has made it clear that it is prepared to negotiate limitations on long-range theater nuclear missiles. On our part, our TNF modernization efforts will make possible a streamlining of our nuclear weapons stockpile in Europe, allowing us to withdraw 1,000 nuclear warheads over the next year. In the Mutual and Balanced Force Reduction talks, we and our allies have recently put forward new proposals that are designed to simplify the negotiations and improve the prospect for early progress in limiting conventional military forces in Europe. In a very real sense the accomplishments of the past year answered a critical question concerning NATO's future: can the Western Alliance, which has provided the foundation for one of the longest periods of peace and prosperity that Europe has ever enjoyed, still summon the essential cohesion, relevance, and resolve to deal with fundamental security issues likely to affect its member nations well into the next century? NATO's consensus in favor of modernizing and negotiating about its nuclear arsenal while continuing to improve conventional forces, dramatized Allied capacity to respond effectively to both the military and political threats posed by the Soviet Union. Relations with our allies and friends in Europe are taking on ever broader dimensions. Our security agenda remains central; we are addressing new concerns as well. I met with an unprecedented number of European statesmen in Washington during the year just past, including the leaders of Great Britain, West Germany, Austria, Norway, Finland, the Netherlands, Ireland, Sweden, and the European Community; in all of these meetings a common theme was the changing .realities of political and economic interdependence and, as we enter a new decade, the need to promote more equitable conditions of peaceful growth and stability throughout the world. This approach has achieved tangible form in a number of ways. For example, every West European government supports us as we have continued by every peaceful means to seek the release of American hostages held in Tehran in defiance of universal standards of international law and decency. We are consulting and cooperating closely in our responses to the Soviet Union's invasion and occupation of Afghanistan. In the NATO area itself, we moved together vigorously to meet the serious economic problems faced by Turkey and thereby strengthen a vital part of NATO's southern flank and we have signed a new base agreement with Turkey. This action, though indispensable in its own right, also supported our continuing efforts to promote a solution to the Cyprus problem and to bring about the reintegration of Greece within the military framework of the Atlantic Alliance, objectives which retain high priority this year. ASIA 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 even greater than our trade with Europe. We have pursued and maintained these interests on the basis of a stable balance of power in the region. Our partnership and alliance with Japan is central to our Asian policy. We are strengthening our new relationship with China. We have expanded our ties with the Association of South East Asian Nations (ASEAN) and its member governments. My trip to the Far East helped forge closer working relationships with Japan and Korea. ASIAN SECURITY The balance of power is fundamental to Asian security. We have maintained that balance through a strong United States military posture in the region, as well as close ties with our allies, Japan, Australia, New Zealand and Korea. Over the past year I have worked to stabilize the United States military presence in Asia by concluding an amended base agreement with the Philippines that will last until 1991. We have fostered the closest degree of security cooperation with Japan in the history of our two nations-exemplified by joint planning for the defense of Japan, increased Japanese contributions to United States base costs in Japan, and large-scale Japanese purchases of United States defense equipment. After examining in detail new intelligence estimates of North Korean military strength, I decided to maintain our troop strength in the Republic of Korea at its present level until at least 1981. The reaffirmation of our commitment to Korean security has been of great importance to the Koreans as they make necessary political adjustments in the wake of President Park's assassination. Response by nations in East Asia to the Soviet aggression in Afghanistan has been gratifying. Australia in particular deserves recognition for the forthright stand it has taken. Japan and the ASEAN nations have also been strongly supportive. CHINA Over the last year we have expanded our relationship with the People's Republic of China to ensure that where our interests coincide, our separate actions will be mutually reinforcing. To this end we have enhanced our consultative relationship. We have also sought to develop an enduring institutional framework in the economic, cultural, scientific, and trade areas. This process has been facilitated by the successful visits of Vice Premier Deng to the United States and Vice President Mondale to China; through the signing of over 15 commercial, scientific, and cultural agreements; through numerous Cabinet-level visits; and through a significant expansion of trade and the flow of people between our two countries. During Secretary of Defense Brown's recent trip to the People's Republic of China, wide-ranging talks were held on global and regional issues, arms control, technology transfer, and ways to sustain bilateral contacts. Although we may differ with the Chinese on some issues, our views coincide on many important issues, particularly with respect to the implications for the region of the Soviet invasion of Afghanistan. In 1980 I look forward to passage by Congress early in the year of the China Trade Agreement and of authorization of OPIC operations in China; we plan to conclude civil aviation, maritime, and textile agreements; and continue to expand our commercial, cultural, and scientific relations, particularly through ExImBank credits to the People's Republic of China. SOUTHEAST ASIA The countries comprising ASEAN are central to United States interests in Southeast Asia. Throughout the past year, our relations with ASEAN have continued to expand as our consultative arrangements were strengthened. The stability and prosperity of Southeast Asia have been severely challenged by Soviet-supported Vietnamese aggression in Cambodia. During this year we will continue to encourage a political settlement in Cambodia which will permit that nation to be governed by leaders of its own choice. We have taken all prudent steps possible to deter Vietnamese attacks on Thai territory by increasing our support to the Thais, and by direct warnings to Vietnam and the U.S.S.R. The other members of ASEAN have stood firmly behind Thailand, and this in great measure has helped to contain the conflict. We have been gratified by Thailand's courageous and humane acceptance of the Cambodian refugees. MIDDLE EAST—PERSIAN GULF—SOUTH ASIA Events in Iran and Afghanistan have dramatized for us the critical importance for American security and prosperity of the area running from the Middle East through the Persian Gulf to South Asia. This region provides two-thirds of the world's oil exports, supplying most of the energy needs of our allies in Europe and Japan. It has been a scene of almost constant conflict between nations, and of serious internal instability within many countries. And now one of its nations has been invaded by the Soviet Union. We are dealing with these multiple challenges in a number of ways. MIDDLE EAST First, it has been a key goal of my Administration since 1977 to promote an enduring resolution of the Arab-Israeli conflict-which is so essential to bringing stability and peace to the entire region. Following the Camp David Summit of August 1978, in March 1979, I helped bring about the signing of a peace treaty between Egypt and Israel—the first time in 30 years of Middle East conflict that peace had shined with such a bright and promising flame. At the historic signing ceremony at the White House, Prime Minister Begin and President Sadat repeated their Camp David pledge to work for full autonomy for the West Bank and Gaza. Since then Egypt and Israel have been working to complete this part of the Camp David framework and to provide an opportunity for the Palestinian people to participate in determining their future. I strongly support these efforts, and have pledged that we will be a full partner in the autonomy negotiations. We will continue to work vigorously for a comprehensive peace in the Middle East, building on the unprecedented achievements at Camp David. 
At the same time, I have reinforced America's commitment to Israel's security, and to the right of all nations in the area to live at peace with their neighbors, within secure and recognized frontiers. PERSIAN GULF In recent years as our own fuel imports have soared, the Persian Gulf has become vital to the United States as it has been to many of our friends and allies. Over the longer term, the world's dependence on Persian Gulf oil is likely to increase. The denial of these oil supplies—to us or to others—would threaten our security .and provoke an economic crisis greater than that of the Great Depression 50 years ago, with a fundamental change in the way we live. Twin threats to the flow of oil—from regional instability and now potentially from the Soviet Union—require that we firmly defend our vital interests when threatened. In the past year, we have begun to increase our capacity to project military power into the Persian Gulf region, and are engaged in explorations of increased use of military facilities in the area. We have increased our naval presence in the Indian Ocean. We have been working with countries in the region on shared security concerns. Our rapid deployment forces, as described earlier, could be used in support of friendly governments in the Gulf and Southwest Asian region, as well as in other areas. SOUTH ASIA The overwhelming challenge in this region will be dealing with the new situation posed by Soviet aggression in Afghanistan. We must help the regional states develop a capability to withstand Soviet pressures in a strengthened framework for cooperation in the region. We want to cooperate with all the states of the region in this regard—with India and Pakistan, with Sri Lanka, Bangladesh and Nepal. In this new situation, we are proposing to the Congress a military and economic assistance program to enable Pakistan to buttress its defenses. This is a matter of the most urgent concern, and I strongly urge the earliest possible approval by the House and Senate. We are also working closely with other friends of Pakistan to increase the resources available for Pakistan's development and security. We are also pursuing the possibility of gaining access to military facilities in the region in time of trouble. We are prepared to work closely with our friends in the region, on a cooperative basis, to do whatever is required to ensure that aggressors would bear heavy costs so that further aggression is deterred. A high priority for us in the region is to manage our nuclear concerns with India and Pakistan in ways that are compatible with our global and regional priorities. The changed security situation in South Asia arising from the Soviet invasion of Afghanistan calls for legislative action to allow renewed assistance to Pakistan. But this in no way diminishes our commitment to work to prevent nuclear weapons proliferation, in Pakistan or elsewhere. Steady growth of our economic assistance is also essential if the countries of South Asia are to achieve growth and true stability. AFRICA A peaceful transition to majority rule in Southern Africa continues to be a major goal of the United States, We gave our fullest support to the successful British drive to reach an agreement among all parties in Rhodesia. The process of implementation will not be easy, but the path is now open to a peaceful outcome. With our European allies, Canada and the African states directly concerned we also are making progress toward independence and majority rule for Namibia. The momentum resulting from successful resolution of the Rhodesian conflict should aid in these initiatives. Congressional support for the Executive Branch decision to maintain sanctions on Rhodesia until the parties reached agreement on a cease-fire and an impartial elections process had begun was instrumental in creating the conditions necessary for agreement. Now that the United States, European trading partners and the surrounding African states have lifted sanctions, the process of economic reconstruction in Rhodesia—soon to be Zimbabwe-can begin. With the creation of an independent Zimbabwe after many years of fighting, we will be prepared to cooperate in a coherent multi-donor development plan for the poor nations in the Southern Africa region. Our active support for self-determination and racial equality in Southern Africa has enabled the United States to develop a continuing and effective dialogue with governments throughout the continent. As Africa grows more important to us for economic, political and strategic reasons, we will be strengthening our ties of mutual interest with Africans. We will continue to participate in their first priority—economic development—and to help Africans resolve their political problems and maintain stability in their continent. Whether in the Horn or in other areas of the continent, we will also provide to friendly nations security assistance when needed for defense of their borders. NORTH AFRICA In 1979 the United States moved to help a long-standing friend by strengthening our arms supply relationship with Morocco. In assisting Morocco to deal with attacks inside its internationally recognized frontiers, we seek conditions of greater security and confidence in which a political settlement of the Western Sahara conflict can be effectively pursued. Though not itself a mediator, the United States in the months ahead will encourage the countries in the area to resolve their differences peacefully in order that the vast economic potential of North Africa can be exploited for the well-being of the people living there. LATIN AMERICA Since my inauguration, I have worked hard to forge a new, collaborative relationship with the nations of Latin America and the Caribbean—one resting on a firm commitment to human rights, democratization, economic development and non-intervention. The events of 1979—even the turbulence in Central America and the Caribbean—presented us with opportunities to move toward these goals. There was encouraging progress in the area of human rights and democratization in the Western Hemisphere this past year. The inauguration of a new democracy in Ecuador, and the strong effort by the Andean countries to preserve democracy in Bolivia were positive steps. During 1979, I met with the President of Mexico twice to discuss the opportunities and difficult issues before our two countries. We have taken worthwhile steps, including an agreement on natural gas and on trade. On October 1, Vice President Mondale and many leaders from Latin America traveled to Panama to celebrate the coming into force of the Panama Canal Treaties. The transition to a new relationship and a new structure to manage the Canal was smooth and effective because of the contributions and the mutual respect between Panamanians and Americans. The Vice President also traveled to Brazil and Venezuela. The Secretary of State met with leaders in Quito at the inauguration of the new democratic President of Ecuador and in LaPaz at the OAS General Assembly. These meetings have helped us to develop further the close consultative ties which are so important to a free and balanced community of nations in the hemisphere. Also, in 1979, the United States moved to a much closer economic and political relationship with the increasingly significant Andean Pact countries. A memorandum of understanding on economic relations was signed in Washington in November. Central America and the Caribbean region are undergoing a period of rapid social and political change. There is a threat that intervention by Cuba may thwart the desire of the people of the region for progress within a democratic framework and we have been working closely with the governments in the region to try to aid in the developmental process of the region and are prepared to assist those threatened by outside intervention. The Caribbean Group, which is coordinated by the World Bank and which we helped establish, has now become an important factor for development in the region, adding $260 million in concessionary resources to the region. We have increased our aid to the Caribbean, reprogrammed loans, and are seeking prompt Congressional action on a supplemental of $80 million for Nicaragua and Central America. My Science Advisor, Dr. Frank Press, led a large delegation of scientists and educators to Barbados, Peru, Venezuela and Brazil to forge new and fruitful ties between our countries in important areas of science and technology. 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 An essential lesson to be drawn from Iran is that there are compelling foreign policy, as well as domestic economic reasons for lessening our dependence on foreign oil. In response to a series of United States proposals, the industrial countries adopted in 1979 a cooperative energy strategy for the 1980's. Its main elements are collective restraint on oil imports; intensified efforts to conserve oil and boost production of conventional substitutes for oil; and collaborative research, development and commercialization of new fuel technologies. At the Tokyo Economic Summit in June, the heads of government of the seven major industrial democracies agreed that they must take responsibility for curbing oil demand. By the end of the year, 20 industrialized nations, members of the International Energy Association, had agreed not only to enforce equitably allocated ceilings on their oil imports, but to create a system for quickly adjusting the ceilings to changes in world oil supply. Completion of the detailed agreements to execute the global oil demand-allocation process is at the head of the international energy agenda for 1980. At the 1980 Economic Summit in Venice, I intend to propose further joint action to smooth the transition from oil to more abundant fuels and to slow the growth in oil prices. In support of the international oil strategy, the Administration and the United States coal industry are launching joint marketing efforts to make this country a major exporter of steam coal. With assurance of reliable United States coal supply at competitive prices, many of the electric power plants to be built in the 1980's and 1990's can be coal-fired rather than oilburning. Coal exports will help us pay for our declining but costly oil imports. A new source of natural gas supply for the United States—Mexico—was opened through the conclusion of government-to-government negotiations. Through close cooperation with our northern neighbor, Canada, the Administration cleared the way for expanding the flow of Canadian natural gas to the United States and for private development of the Alaskan gas pipeline across Canada to the lower 48 states. 
We continue to believe that power will play an essential role in meeting the energy needs of many nations, but with effective safeguards against the proliferation of nuclear weapons. INTERNATIONAL MONETARY POLICY We are moving forcefully to establish the fundamental economic conditions for a strong dollar. In 1979 the balance of payments was in approximate balance for the first time in three years, despite substantially higher oil import costs. Our anti-inflationary economic policies and strong energy program should provide a basis for further improvement. Of course the outcome depends in part also upon responsible pricing behavior by OPEC and other oil producers. We support the efforts under way to strengthen the international monetary system. I urge the Congress to enact promptly legislation permitting the United States to increase its quota in the International Monetary Fund (IMF) as part of the general expansion of Fund resources. We welcome the measures being taken by the IMF to improve its ability to promote sound economic and exchange rate policies in. all member countries. We also welcome the study of the possible establishment of a "substitution account" to strengthen the international monetary system by promoting the role of the Special Drawing Right as the principal reserve asset in the system. TRADE Under the direction of my Special Trade Representative, we brought to a successful conclusion the multilateral trade negotiations, the most ambitious set of negotiations to reduce barriers to international trade in a decade. The resulting "MTN" agreements, covering a broad spectrum of trade issues, were concluded and ratified by overwhelming majorities of the United States Congress. These binding commitments, signed by all the major trading nations, provide the framework for a new era in international trading relations with them and with the developing nations. This makes clear my resolve and that of the American people to resist the dangers of protectionism. The reorganization of the Federal government trade agencies which I directed will assure more effective and prompt governmental action to exploit the export opportunities afforded by the MTN. The plan, approved by Congress this fall, establishes a strong, authoritative voice in the Executive Office of the President to provide coherence and leadership to United States trade policy, negotiations, and the implementation of the MTN trade codes. The reorganization establishes the Office of the U.S. Trade Representative and strengthens the Commerce Department. SUGAR In 1979, Congress ratified 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. This agreement and other measures my Administration has taken already have helped to stabilize sugar prices and bring high domestic prices into line with those prevailing in the world marketplace. Producers and consumers alike will benefit from a more stable market for this essential commodity. We need prompt enactment of implementing legislation for this agreement. TIN At year's end, Congress approved stockpile disposal legislation which will permit the General Services Administration to sell 30,000 metric tons of tin from our strategic stockpile and contribute up to 5,000 metric tons to the International Tin Organization's (ITO) buffer stock. This fulfills a United States pledge made during the Conference on International Economic Cooperation and represents a major step forward in our relations with producing countries in the developing world. We will consult with other members of the ITO to ensure that our tin disposals do not disrupt markets and take into account the needs of both producers and consumers. COMMON FUND The United States joined members of the United Nations Conference on Trade and Development, both developed and developing nations, in negotiating an agreement on the framework of a Common Fund to help international commodity agreements stabilize the prices of raw materials. Negotiations are now underway on the final articles of agreement of the Fund. The United States also participated in successful negotiations on an international rubber agreement. ECONOMIC COOPERATION WITH DEVELOPING NATIONS Our relations with the developing nations are of central importance to the United States. The fabric of our relations with these countries has both political and economic dimensions, as we witnessed in recent weeks when nations of the Third World took the lead in condemning 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 engagement with the developing world that we have pursued over the past three years. The foreign assistance legislation which I will be submitting to you for FY 81 provides the authority and the funds to carry on a cooperative relationship with a large number of developing nations. Prompt Congressional action on this legislation is essential in order to 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. We will also be asking Congress to enable us to honor our international agreements for multilateral assistance by authorizing and appropriating funds for the International Financial Institutions. Finally, the Administration and the Congress agreed in 1979 on fundamental changes in the way the United States government is organized to conduct economic and technical relations with the developing nations. I submitted and the Congress approved a plan to consolidate in a small policy-coordination body, the International Development Cooperation Agency (IDCA), responsibility for direct United States development assistance, for guidance to United States representatives in multilateral development agencies, and for presenting our long-term development interests in Federal government policy bodies dealing with trade and other economic relations with developing nations. I also submitted, and the House approved in the 1979 session of Congress, a plan to establish the Institute for Scientific and Technological Cooperation (ISTC), a constituent element of the IDCA group of agencies. Once approved, the ISTC will carry out research as well as support research by foreign scientists on technological means of reducing poverty in developing nations. FOOD—THE WAR ON HUNGER One of the main economic problems facing developing countries is lagging food production. We must help these countries meet this problem—not only so that their peoples will be free from the threat of continuing hunger, but also so that their societies will be strong enough to resist external pressure. I have directed that United States bilateral and multilateral aid be geared increasingly to this goal, as recommended by our Hunger Commission, chaired by Sol Linowitz; we are urging other donor countries to join in more effective efforts to this end. 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 ultimate aim of our foreign policy must be to preserve freedom for ourselves and to expand freedom for others. This is a matter both of national principle and of national interest. For we believe that free and open societies are not only better able to meet the rising expectations of their people; they are also better able to accommodate often conflicting internal pressures before popular frustrations explode in violent and radical directions. We do not seek to impose our system or institutions on others. Rather, we seek to support, in practical and concrete ways, the efforts of other nations to build their own institutions in ways that will meet the irrepressible human drive for freedom and justice. Human rights policy commands the strong support of our citizens, and of the Congress. The world climate increasingly favors human rights progress. Despite new turbulence and conflict, the past year featured some encouraging positive developments. We cannot and should not claim credit for them. But it is clear that we are part of a growing movement. During 1979, we saw: —The further strengthening of democratic practices in Spain and Portugal, with free elections in both countries; —The disappearance of several of the world's most repressive regimes; —The freeing of political prisoners in Asia, Africa, and Latin America; —A return to democratic rule in several Latin American countries and widespread progress in reducing human rights violations in the region; —The growing strength of international human rights institutions. The Inter-American Court of Human Rights held its first meeting. Preparations began for another conference to review compliance with the Helsinki accords, to be held in Madrid this November. The OAU took long strides toward establishing a human rights commission for Africa. UN bodies became increasingly active in their human rights efforts. The United States is still not a party to the key human rights treaties that establish world standards and implementing machinery. In early 1978, I sent for Senate approval four such treaties, the American Convention on Human Rights, the Convention on Racial Discrimination, and the UN Covenants on Civil and Political Rights and on Economic and Social and Cultural Rights. Hearings were held in 1979. No single action by this country would do more to advance the cause of human rights than Senate approval of these instruments and a fifth human rights treaty sent to Congress previously, the Genocide Convention. I urge the earliest possible Senate action. HUMANITARIAN AID The mass exodus of refugees from Vietnam reached a crescendo in summer 1979 with over 65,000 people a month fleeing repression and economic privation. Most fled by boat, and many were lost at sea. In July, at a special UN meeting on refugees, Vice President Mondale presented a major United States program to rescue and help support and resettle the new refugee population. I doubled to 14,000 a month the number of Indochinese refugees the United States, in accord with our finest traditions, would absorb over the year ahead. The Vietnamese invasion of Kampuchea in late 1978 gravely jeopardized the supply of food for the already decimated and brutalized Khmer people. In October, I announced that the United States would pay one-third of the costs of the international relief program mounted jointly by UNICEF and the International Committee of the Red Cross. Leaders of thirtyfive church and voluntary agencies, with White House encouragement, are engaged in their own large fund-raising program for refugees. In early November, Mrs. Carter visited refugees on the Thai-Cambodian border and reported back to me, the United States voluntary agencies, and the American people. In response, our efforts to avert a mass famine were accelerated. The obstacles remain daunting—continued warfare and aggression by Vietnam, non-distribution by the Phnom Penh authorities of much of the UNICEF-ICRC aid, movement of up to 900,000 hungry Khmer to and across the Thai border where they can be fed and helped. But Americans will continue their efforts both public and private to avert the famine that looms. New help for our efforts will come from the National Committee formed in early 1980 by leading citizens to help in mobilizing and supporting the sustained effort essential to achieve this humanitarian goal. As the year began, we are also considering new means of helping, through our contribution to the UN High Commissioner for Refugees and in other ways, the mounting Afghan refugee population in Pakistan and other desperate refugee situations such as Somalia. 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. I have asked the heads of the appropriate departments of the Executive Branch to play an active role in the Select Commission on Immigration and Refugee Policy to formulate a new approach to deal with sensitivity with the difficult subject of people arriving on our shores from Latin America. My meeting with Pope John Paul II during his historic and unprecedented visit to the United States helped raise the world's consciousness in connection with pressing problems of famine, homelessness, and human rights. Our talks spurred positive action in many of these areas, notably Indochina, and set the stage for further action in 1980. 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 I entered office committed to assert American leadership in stemming the proliferation of nuclear weapons—which could create fundamental new instabilities in critical regions of the world, and threaten the security of the United States. This should not and cannot be done unilaterally. The cooperation of other suppliers of nuclear technology and materials is needed. This issue must not become a North-South confrontation. We have been proceeding on a number of fronts: —We have been seeking to encourage nations to accede to the Non-Proliferation Treaty, or to accept full-scope international safeguards. The Nuclear Non-Proliferation Act calls for such safeguards in connection with United States nuclear exports. —The International Nuclear Fuel Cycle Evaluation (INFCE) has demonstrated that suppliers and recipients can work together. Its results will be published in a month. While differences remain, it will provide 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 has not yet been ratified by the United States Senate. Working together with the Congress, I remain committed to the vigorous pursuit of our non-proliferation objectives. LIMITATIONS ON STRATEGIC ARMS The most prominent of our nuclear arms control efforts is, of course, SALT II. The signing of the Treaty brought to an end painstaking negotiations carried out under three administrations of both parties. —SALT II is in our mutual interest; it is neither an American favor to the Soviet Union nor a Soviet favor to the United States. —Ratification of the SALT II Treaty would represent a major step forward in restraining the continued growth of Soviet strategic forces. Because SALT II reduces superpower competition in its most dangerous manifestation, this Treaty is the single most important bilateral accord of the decade: 
—SALT II will permit us better to maintain strategic equivalence in nuclear weapons and devote our defense increases more heavily to our highest priority needs for conventional force improvements; 
—Without it, the Soviets can add more power to their forces and better conceal from us what they are doing; 
—Without SALT II, and the beginning of SALT III, deeper cuts would take many more years to achieve; 
—Without SALT II, our efforts to control the proliferation of nuclear weapons will be more difficult. I believe that the Senate will ratify SALT II because the Treaty is, in its simplest terms, in the interest of our Nation's security. But I do not believe it advisable at this time to bring up the Treaty for consideration on the Senate floor. The Congress and the Executive Branch must first deal with the pressing matters arising from the Soviet invasion of Afghanistan. CONCLUSION As we enter the decade of the 1980's, we face challenges both at home and abroad which will test our qualities as a people—our toughness and willingness to sacrifice for larger goals, our courage and our vision. For this Nation to remain secure, for this country to prosper, we must rise above narrow interests. The dangers of disunity are self-evident in a world of major power confrontation. The rewards of a new national consensus and sense of purpose are equally clear. 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. JIMMY CARTER 
The White House, 
January 21, 1980.
To the Congress of the United States: My State of the Union Address will be devoted to a discussion of the most important challenges facing our country as we enter the 1980's. Over the coming year, those challenges will receive my highest priority and greatest efforts. However, there will also be many other significant areas which will receive my personal commitment, as well as that of my Administration, during the 2nd Session of the 96th Congress. It is important that Congress, along with the public, be aware of these other vital areas of concern as they listen to my State of the Union Address. In that way, the context of the Address, and my Administration's full message for 1980, can best be understood. For that reason, I am sending this State of the Union Message to the Congress today, several days before my State of the Union Address. CONGRESS During the last three years, my Administration has developed a very cooperative and productive record with Congress. Landmark legislation has been enacted; major domestic and international problems have been addressed directly and resolved; and a spirit of mutual trust and respect has been restored to Executive. Legislative relations. Indeed, in no other three-year period in our recent past has there been a comparable record of progress and achievement for the American people. But much more remains to be done. We cannot afford to rest on our record. We cannot fail to complete the agenda begun in the 1970's; we cannot ignore the new challenges of the 1980's. By continuing to work together, my Administration and the Congress can meet these goals. Our cooperative efforts can help to ensure stable prices and economic growth; a return to energy security; an efficient, responsive government; a strong, unsurpassed defense capability; and world peace. The program that I have placed before the Congress since 1977, combined with the few new initiatives I will be placing before the Congress this year, will enable us to reach these goals. Our task in this Session is to complete the work on that program. I have no doubt that we can do it. There is no time to waste. RECORD OF PROGRESS When I took office in 1977, our Nation faced a number of serious domestic and international problems: • the economy had still not recovered from the most serious recession since World War II; • unemployment was near 8%, and almost 8 million American workers were unemployed; • 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 extremely 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 continuously shrinking defense budget; • the strength of the NATO Alliance was at a post-World War II low; • tensions between Israel and Egypt threatened another Middle East war; and • America's resolve to oppose international aggression and human rights violations was under serious question. Over the past 36 months, clear progress has been made in solving the challenges we found in January of 1977: • the unemployment rate at the end of last year of 5.9%, representing a 25% decrease in three years; 9 million jobs have been created, and more Americans, 98 million, are at work than at any time in our history; • major parts of a comprehensive energy program have been enacted; a Department of Energy has been established to administer the program; and Congress is on the verge of enacting the remaining major parts of the energy 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; 13 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; zero-based budgeting practices have been instituted throughout the Federal government; cash management reforms have saved hundreds of millions of dollars; the process of issuing regulations has been reformed to eliminate unneeded and incomprehensible regulations; procedures have been established to assure citizen participation in government; and the airline industry has been deregulated, at enormous savings to the consumer. • critical social problems, many long ignored by the Federal government, have been addressed directly and boldly: an urban policy was developed and implemented, reversing the decline in our urban areas; the Food Stamp program has been expanded and the purchase requirement eliminated; 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 75%; 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 decline in defense spending has been reversed; defense spending has increased at a real rate of over 3% in 1979, and I am proposing a real increase in the defense spending level of more than 20% over the next 5 years; • the NATO Alliance has been revitalized and strengthened through substantially increased resources, new deterrent weapons, and improved coordination; increased emphasis has also been given to conventional force capabilities to meet crises in other areas of the world; • Egypt and Israel have ended more than 30 years of war through a Peace Treaty that also established a framework for comprehensive peace in the Middle East; • the commitment of our Nation to pursue human rights throughout the world, in nations which are friendly and those which are not, has been made clear to all; • our resolve to oppose aggression, such as the illegal invasion of the Soviet Union into Afghanistan, has been supported by tough action. LEGISLATIVE PRIORITIES In the coming legislative session, the last in this Presidential term, I am deeply committed to finishing the agenda that I have placed before the Congress. That agenda has been comprehensive and demanding, but it has also been absolutely essential for our Nation's well-being. I do not plan to add significantly to the agenda this year. Because of the importance of enacting the proposals already before the Congress, and the relatively short Congressional session facing us, I will be limiting my major new proposals to a critical few: • Youth Employment; • General Revenue Sharing; • Utility Oil Use Reduction; • Nuclear Waste Management and Nuclear Regulatory Commission Re. organization; • Standby Gasoline Rationing Plan; and • Initiatives implementing my response to the Soviet invasion of Afghanistan. I am convinced that these new initiatives, along with the major proposals I previously made to the Congress, can be enacted this year, if we have a dedicated, all-out effort on the part of the Administration and the Congress. I pledge such an effort on my part, and that of my Administration. As in the previous three years, I will be working with you toward the basic goals of: • Ensuring our economic strength; • Creating energy security for our nation; • Enhancing basic human and social needs; • Making our government more efficient and effective; • Protecting and enhancing our rights and liberties; • Preserving and developing our natural resources; • Building America's military strength; • Working to resolve international disputes through peaceful means; • Striving to resolve pressing international economic problems; • Continuing to support the building of democratic institutions and protecting human rights; and • Preventing the spread and further development of nuclear weapons. My highest legislative priorities in each of these areas this year will be: ENSURING ECONOMIC STRENGTH • The FY 1981 Budget—This is a responsible, restrained budget, whose enactment will help control Federal spending, significantly reduce the Federal deficit, and aid in our fight against inflation. • Hospital Cost Containment—This long overdue legislation is a major weapon in our fight against inflation; it will save consumers more billions of dollars and is the single most important anti-inflation bill before the Congress. • Youth Education, Training and Employment Program—This new initiative, which is designed to educate and train youth to secure and hold meaningful jobs, will provide enhanced opportunities for disadvantaged youth as well as improve the productivity of our work force. CREATING ENERGY SECURITY FOR OUR NATION • Windfall Profits Tax—The size of this important energy and tax measure has been agreed to by the conferees, but it is imperative that final agreement on a tax reflecting sound energy policy occur at the outset of this session and that Congress act promptly on that agreement. • Energy Mobilization Board—It is also essential that this vital measure in the effort to eliminate unnecessary red tape in the construction of needed energy facilities be agreed to promptly by the conferees and the Congress, without substantive waivers of law. • Energy Security Corporation—The conferees and the Congress also need to act expeditiously on this legislation. This bill is critical to our Nation's beginning a serious, massive program to develop alternative energy fuels so that our dependence on foreign oil can be severely reduced. It is necessary to remove this critical national effort from the constraints which can bind government agencies. This legislation contains, as well, vital energy conservation and gasohol provisions. They are needed if we are to move forward in our national efforts in these areas. • Utility Oil Use Reduction—This new initiative will aid in the effort to reduce our reliance on oil by requiring our Nation's utilities to substantially convert from oil to coal-burning or other energy facilities by our Nation's utilities over a defined timetable. This bill is a key tool in our effort to increase the use of coal, our most abundant natural fuel source. • Standby Gasoline Rationing Plan-Under the legislation enacted last year, I will propose to the Congress a Standby Gasoline Rationing Plan; its prompt approval will be required if we are to be prepared for a significant energy supply interruption. ENHANCING BASIC HUMAN AND SOCIAL NEEDS • National Health Plan—The time for improving the health care provided to our citizens is long overdue, and I am convinced that the health plan I proposed last year provides a realistic, affordable and beneficial way of providing our citizens with the health care they need and deserve. It will provide millions of low-income Americans with health coverage for the first time, improved Medicare coverage for the elderly, and protect every American against the disastrous costs of extended illness. Our national health effort also needs prompt enactment of two other important bills—Child Health Assurance Program, which will provide needed health care for disadvantaged children, and Mental Health Systems Act, which is needed to reform our mental health programs. • Welfare Reform—Our nation's welfare system remains a disgrace to both the recipient and the taxpayers. It encourages family instability and encourages waste. It is a crazy-quilt of differing provisions from state-to-state. The House has approved a sound welfare reform proposal. I call upon the Senate to act rapidly on this issue so that welfare reform can become a reality in this Session. • General Revenue Sharing—I will propose a reauthorization of this important program to our state and local governments, in order to continue providing them with the funds that they depend upon to meet essential social and operating needs. This program is an essential element of the partnership I have forged with state and local governments and is critical to the continued economic health of our states, cities and counties. • Countercyclical Revenue Sharing—I will again work with the Congress to provide the aid needed to help our most financially pressed local areas. The Senate has already acted and I urge prompt House passage early in the Session. • Low-Income Energy Assistance—I am committed to seeking authority to continue the low-income assistance program enacted at my request last year to give the poor protection against rising energy costs. • Economic Development—This legislation will reauthorize and improve the government's ability to provide economic development assistance. It is a key ingredient in implementing both my urban and rural policy and I urge prompt action on it by the House-Senate Conference. MAKING OUR GOVERNMENT MORE EFFICIENT AND EFFECTIVE • Regulatory Reform—I will continue to pursue efforts to eliminate unnecessary regulatory burdens, and will concentrate on seeking approval this year of my regulatory process reform bill, my trucking and rail deregulation proposals, my banking reform measures, and passage of sunset legislation and communications reform measures. Progress has been made on each of these during the First Session. Final passage should come before this Session ends. • Nuclear Regulatory Commission Reorganization—As I stated in responding to the Kemeny Commission Report, I will propose a reorganization of the Nuclear Regulatory Commission in order to improve its management and its emergency operating capabilities. This is an essential step to the improvement of safety in the nuclear industry. PROTECTING AND ENHANCING' OUR RIGHTS AND LIBERTIES • Equal Rights Amendment—While the Congress has passed the Equal Right., Amendment, and the possibility for ratification now lies with the State Legislatures, it is essential that the Members of Congress help with their State Legislatures. Toward that end, we will be working with Members from States which have not yet been ratified. We cannot stand tall as a Nation seeking to enhance human rights at home so long as we deny it to American women here at home. • Fair Housing—I will continue to press for enactment of this important civil rights initiative; it will enable the government to enforce our fair housing laws effectively and promptly. It is the most critical civil rights legislation before the Congress in years. The promise of equal housing opportunity has been far too long an empty promise. This bill will help make that promise a reality. • Intelligence Charters—I have already proposed a legislative charter for the FBI; I will soon be proposing a legislative charter for the intelligence community. These charters will protect our citizens' rights while enabling the agencies to meet their responsibilities. PRESERVING AND DEVELOPING OUR NATURAL RESOURCES • Alaska D-2 Lands—My highest environmental priority in this Congress continues to be enactment of legislation that will preserve and protect Alaska lands. I urge the Senate to follow the House's lead in this area. • Oil and Hazardous Wastes Superfund—This program is needed to mitigate the effects of oil hazardous substance spills and releases from uncontrolled hazardous waste dumps, which is a growing national problem. • Nuclear Waste Management—I will propose a series of legislative and administrative initiatives to implement our Nation's first comprehensive nuclear waste program. BUILDING AMERICA'S MILITARY STRENGTH • Defense Department Authorizations and Appropriations—I will be proposing a defense budget containing a 3.3% real growth in outlays. It is essential that the Congress support an increase of that amount if we are to strengthen our defense capabilities. WORKING TO RESOLVE INTERNATIONAL DISPUTES • Refugee Legislation and Funding-This legislation is necessary to improve our refugee program and to provide needed domestic assistance to refugees. Prompt House action would assure that we have a sound framework within which to accommodate the increasing flow of refugees. STRIVING TO RESOLVE INTERNATIONAL ECONOMIC PROBLEMS • Bilateral and Multilateral Foreign Assistance—I will be proposing foreign assistance legislation which provides the authority needed to carry forward a cooperative relationship with a large number of developing nations. Prompt Congressional action is essential. • China Trade Agreement—I will be seeking early approval by the Congress of the Trade Agreement reached with China; the Agreement represents a major step forward in the process toward improved economic relations with China. CONTINUING TO SUPPORT THE BUILDING, OF DEMOCRATIC INSTITUTIONS AND PROTECTING HUMAN RIGHTS • Special International Security Assistance for Pakistan—I am sending to Congress a military and economic assistance program to enable Pakistan to strengthen its defenses. Prompt enactment will be one of my highest legislative priorities. • Human Rights Conventions—I will continue to press the Senate to ratify five key human rights treaties—the American Convention on Human Rights, the Convention on Racial Discrimination, the UN Covenants on Civil and Political Rights, and on Economic and Social and Cultural Rights, and the Genocide Convention. PREVENTING THE SPREAD AND FURTHER DEVELOPMENT OF NUCLEAR WEAPONS • SALT II I firmly believe that SALT II is in our Nation's security interest and that it will add significantly to the control of nuclear weapons. But because of the Soviet invasion of Afghanistan, I do not believe it is advisable to have the Senate consider the Treaty now. I. ENSURING ECONOMIC STRENGTH My economic program, since I took office, has been designed to achieve several goals: —restore and continue economic growth; —reduce unemployment; and —restrain inflation. Over the past three years, considerable progress has been made in each of these areas: —The economy has recovered from its deepest recession since World War II; and we have had a sustained economic recovery during the last three years. —Unemployment has been reduced by 25% and employment is at its highest level in history. —Inflation has increased to unacceptable levels, in large part because of OPEC price increases, but a program has now been put in place which will moderate inflation in an equitable and effective way. In 1980, we will continue the steady economic policies which have worked to date. We can only succeed in making our economy strong, however, if we have Congress' cooperation. I am confident that we can work together successfully this year to achieve our economic goals. INFLATION Inflation continues to be our most serious economic problem. Restraining inflation remains my highest domestic priority. Inflation at the current, unacceptably high levels is the direct result of economic problems that have been building, virtually without letup, for over a decade. There are no easy answers, or quick solutions to inflation. It cannot be eliminated overnight; its roots in our economy are too deep, its causes are too pervasive and complex. We know we cannot spend our way out of this problem. But there is hope—for a gradual reduction in the inflation rate, for an easing of the economic pressures causing inflation. The hope lies in a program of public and private restraint in the short-run and a program to attack the structural causes of inflation over the longer-run. This is the policy I have pursued and will continue to pursue. Last year was an especially difficult time for anti-inflation policies. OPEC increased its prices by more than 80% and thus added more than three points to the inflation rate. If energy price increases are excluded, inflation last year would have been nearly three percentage points lower. The biggest challenge to anti-inflation policy is to keep energy price' increases from doing permanent damage, to prevent a dangerous acceleration of the wageprice spiral. My program has been successful in accomplishing this. Inflation will slow this year. In 1981 it should be even lower. This progress is the result of our persistence in the battle against inflation on many fronts: Budget Restraint: The budget deficit for FY 1979 was lowered to $27.7 billion, more than 50% below the FY 1976 level. Regulatory Reform: The flood of new, costly government regulations was slowed as our procedures to ensure that we achieve our regulatory goals in the most cost-effective manner took hold. Wage-Price Guidelines: The guideline standards were followed by the vast majority of unions which negotiated contracts and by nearly every major corporation in the country. Energy: The energy legislation put into place over the past two years began to reduce our dependence on foreign oil and our consumption of such important energy fuels as gasoline, thereby reducing the ability of oil producing nations to disrupt our economy. Productivity: We began to introduce policies to increase industrial innovation and thereby productivity; the decline in productivity growth must be reversed if we are to improve our real living standards over the long term. In 1980, with the Congress' cooperation, we will continue our aggressive fight against inflation on each of these major fronts: Budget Restraint: The deficit for the FY 1981 budget will be less than half of the FY 1980 budget deficit and will represent a 75% reduction from the deficit I inherited. Regulatory Reform: We will be pursuing deregulation legislation for the trucking, rail, banking and communications industries, as well as regulatory management reform legislation; these bills will enable us to further eliminate unnecessary regulatory burdens. Labor Accord: The Pay Advisory and Price Advisory Committees, established as a result of last year's historic Accord with organized labor will enable us to better implement, and coordinate with both labor and business, the private restraint necessary as part of our anti-inflation efforts. The Accord signals a willingness of labor to be a full partner in our fight against inflation. Energy: We expect to enact major energy legislation—the Windfall Profits Tax, the Energy Mobilization Board, and the Energy Security Corporation—early in this Session; this legislation, when combined with the voluntary and mandatory energy conservation measures that will take an even stronger hold this year, should enable us to further reduce our dependence on foreign oil. Productivity: We will be implementing our industrial innovation program and further expanding our commitment in the budget to research and development. COUNCIL ON WAGE AND PRICE STABILITY The Council on Wage and Price Stability has played a vital role in our anti-inflation efforts. The Council and its staff have lead responsibility within the Executive branch for implementing the voluntary wage and price monitoring program. Without the Council's continuing role, the anti-inflation effort could not begin to assess whether the private sector is cooperating with our standards. It is therefore essential that the Council, along with its staff operation, be reauthorized early this year. The reauthorization should not contain amendments that interrupt or restrain the important and essential work of the Council or its staff. THE 1981 BUDGET The budget I will send to the Congress for FY 1981 will meet this Nation's critical needs; and it will continue the sound budgetary policies that my Administration has pursued throughout my term in office. No single year's budget can accurately portray the philosophy of an Administration. However, there is a clear pattern in the budgets I have proposed—restraint in spending, coupled with careful targeting of resources to areas of greatest need. My 1981 budget continues this pattern by lowering the deficit roughly $50 billion below what it was when I ran for office. At the same time, I will recommend increases for programs of critical national concern. Last year, my budget was austere. I proposed eliminating some programs and reducing spending for others; and these tough decisions have proven correct and have provided the country with clear benefits. I am pleased that the Congress approved my budget in virtually the form I proposed. As a result of our actions, the rate of Federal spending growth has been slowed. Just as importantly, the widespread expectation that the Federal budget would continue its upward spiral unchecked has been proven false. We have moved on to the path necessary for achieving a balanced budget in the very near future. And we have helped the fight against inflation.. The 1981 Budget will continue my policy of restraint. Real growth in spending will be close to zero. The deficit will be cut by more than half from last year. The deficit as a percent of the budget and of GNP will be at the second lowest point in this decade. We will have the smallest deficit in seven years. And if the economy were to continue to grow at a rate which held the unemployment rate at the current level, this budget would be in surplus. At the same time, I am proposing some vital spending increases in the 1981 Budge. Most of these increases will be in "uncontrollable" programs (those in which increases are automatically required by existing law). There will also be discretionary increases; in part, to strengthen our defense forces and enhance our crucial investments in energy production and conservation. In addition, I will propose a major new initiative to reduce youth unemployment, and State and local governments will receive continued fiscal support from the General Revenue Sharing extension I will propose. Developing the budget this year has been, in several respects, more difficult than in previous years. International turmoil threatens our vital interests, energy problems dampen the economy and alter our domestic priorities, and inflation erodes basic programs, all adding new pressures for Federal spending. But I am confident that this budget responds responsibly-and with needed resources—to our Nation's most pressing needs and positions us for responsible and effective government in the 1980's. FISCAL POLICY As President, I have been concerned about the tax burden on our citizens and have, as a result, worked with the Congress to enact two major tax cuts. In 1977, I proposed, and Congress passed, an $8 billion individual tax cut as part of the economic stimulus package. In 1978, I proposed, and Congress passed, a $21 billion individual and business tax cut. This year, those two cuts will reduce Americans' tax burden by $31 billion. I recognize that there is interest in another tax cut this year, but my 1981 budget proposes no tax cuts. As long as double-digit inflation continues and there is no sign of a recession, our top budgetary priority must be reduction of the deficit. Over the long run, continued tight control over budget expenditures will hold down the share of Federal spending in GNP. Inflation, on the other hand, is raising the percentage of national income collected in taxes. Over time, because of these two developments, tax reductions will be possible while still maintaining the fiscal restraint needed to control inflation. However, the timing and structure of any tax reductions is of critical importance and must be dictated by our economic circumstances: the urgency of the anti-inflation fight requires that we defer such tax reductions at this time. Tax reductions put into effect prematurely, and under the wrong economic conditions, could make inflation worse by overstimulating the economy. Inflation is still running at unacceptably high levels. Virtually all economic forecasters predict the onset of a mild recession and my Administration's estimates of budget receipts and expenditures in the FY 1981 budget assume a recession. However, none of the current economic statistics yet show any overall economic decline. In recent months the economy has displayed much more strength than earlier forecasts had predicted. Forecasts of impending recession may therefore prove to be. as wrong as previous ones. Employment has held up well—in part due to unsatisfactory productivity performance. To enact tax cuts now would run a serious risk of adding inflationary demand pressures to an economy which continues to grow more strongly than predicted by the forecasts. With the present high inflation, we cannot afford that risk. When tax reductions are timely, they should be designed insofar as possible in a way that achieves multiple objectives-not only reducing the tax burden and stimulating growth, but raising investment and productivity and reducing inflation as well. In particular, a significant part of any tax reduction should be directed to the provision of incentives for increased investment, to improve productivity, expand capacity, and adjust to higher energy prices. Serious consideration should be given, in the case of tax cuts for individuals, to lowering social security payroll taxes, since half of such reductions would go towards lowering business costs and prices. The necessities of the inflation fight require that we be very cautious about when taxes are reduced, and how it is done. But they do not require that we ignore changes in economic conditions. Should the economic situation and prospects sharply worsen, I will consider recommendations to deal with the situation. Under those circumstances, tax cuts and other measures could be taken to improve the prospects for employment and growth, to reduce business costs, and to assist those most severely damaged by recession, without threatening to set off inflationary demand pressures. However, the current economic situation does not warrant such measures and it would be inappropriate to propose them at this time. EMPLOYMENT My Administration, working closely with Congress, has made significant progress in reducing the serious unemployment problems that existed three years ago. • The December unemployment rate of 5.9% represents a 25% reduction from the December 1976 rate. • Over 9.2 million more people have jobs than before the beginning of the Administration. • Total employment has reached an all-time high of 98 million in December. • Nonwhite employment has increased by 1.4 million persons or 15.5%. • Adult female employment has increased by 5 million persons. • Employment of black teenagers, which had actually decreased during the 1969-1975 period, has increased by more than 15% since I took office. Although unemployment rates for all youth, especially minority youth, are still too high, progress has been made. We will continue to make progress in the 1980's as a result of the framework which has already been established and which will be strengthened this year. • The Comprehensive Employment and Training Act (CETA) was reauthorized in 1978 for four years. • The Humphrey-Hawkins Full Employment Act became law after many years of effort. • The Private Sector Initiatives Program, a new partnership between the government and the private sector to assist the most disadvantaged unemployed, is being successfully implemented. • A targeted jobs tax credit has been enacted to provide employers with the economic incentives needed to increase their hiring of unemployed low-income youth and others who historically have difficulty finding jobs. • A massive effort to reduce the problems causing excessive youth unemployment rates is being strengthened and revitalized this year with a new $2 billion youth education, training, and employment program. This year, we will work aggressively to make certain that this framework continues to be successfully implemented. Even that effort may not be sufficient, if economic forecasts are accurate, to keep the unemployment rate from rising. We will be monitoring the economy closely. If unemployment should dramatically increase, I will be prepared to consider actions to counter that increase, consistent with our overriding concern about accelerating inflation. At this time though, when unemployment is at its lowest level in years, it would be premature and unwise to propose measures that might be helpful in a time of recession-induced high unemployment. YOUTH EMPLOYMENT The fact that we have had persistently high unemployment among poor and minority youth for three decades demonstrates clearly the inadequacies of our system for teaching, training and helping young people to find and keep decent jobs. The economic challenges of the 1980's will require the energy and commitment of the entire American work force. We cannot afford to waste anyone's talents. If we are to become the society of our ideals, we must provide economic opportunity for all. My Administration is committed to a renewed national effort to remove any unnecessary obstacles to a productive life for every American. Over the past three years, we have developed a solid record. We have increased resources for youth employment and training programs from $2.5 to over $4 billion. We have conducted the largest experimental youth program effort ever attempted. We have reduced overall youth unemployment rates by 15%. But this is not good enough. Youth unemployment, especially for the poor and minorities, is still unacceptably high. Based on the experience we have gained over the past three years, and on the advice of the thousands of Americans who helped the Vice President's Task Force on Youth Employment over the last nine months, my Administration has devised a new approach, which I announced two weeks ago. Under my program, the most significant new domestic initiative I will be sending to Congress this year, the Federal government will be making its most comprehensive effort ever to eradicate the causes of excessive and harmful youth unemployment. By 1982 this new program will have increased Federal resources committed to reducing youth unemployment by $2 billion, to a total of $6 billion. The program will have two key components: for in school youth, we will have a major effort through the Department of Education to teach basic skills to low-achieving youth in junior and senior high schools located in low-income communities, while providing work experience and training after school hours. For disadvantaged out-of-school youth, we will provide, through the Department of Labor, redesigned and expanded work experience and training programs, as well as basic skills programs managed by the Department of Education. The Department of Education's basic education and skill training program, when fully implemented, will provide basic education and employment skills to approximately 1 million low-achieving junior and senior high school students in about 3,000 of the poorest urban and rural school districts around the country. The new program will emphasize: —basic skills for low-achieving youngsters, including help for students with limited ability in English; —school-wide planning with the active involvement of teachers, parents, employers, and the community; —using the link between work and classroom-learning as a way to motivate students to stay in school; and —a major role for vocational education in preparing young people for work. The Department of Labor's new Youth Employment Program, when fully implemented, will provide education, work experience, training, labor market information and other services to more than 500,000 .additional young people in each year. The new resources, when added to current programs, will serve over 2.5 million 14- to 21-year olds each year. The program will emphasize: —additional training and work experience opportunities for older and out-of-school youth; —stringent performance standards for both participants and program operators; —financial incentives to encourage greater cooperation between CETA sponsors, local employers, and school officials; and —consolidation of three of the existing CETA youth programs and closer coordination with the summer employment program to simplify local administration and reduce paperwork. We have learned from the 1960's and the 1970's. We know we must concentrate on administration and management. We know that we must have tough performance standards, not merely allocation formulas. We know that the partnership between government and all elements of the private sector must be made a reality, and that focusing on basic skills now is the key to job success in the future. We also know that the hope our young people have for their lives in this great country is our most precious resource. We must keep that hope alive. We will be working closely and intensively with the Congress to enact and carry out this youth employment program as soon as possible. TRADE This past year was one of unmatched and historic achievement for a vital component of the YOU.S. economy—exports and trade. In 1979, nearly 3 million jobs in our manufacturing industries, or one out of every seven jobs in manufacturing, depended upon our export performance in overseas markets. Our exports were a key contributor to the growth of the YOU.S. economy in 1979. Exports of agricultural and industrial goods grew by an unparalleled $35 billion, reaching a level of $180 billion. This represented an increase of 25% over exports in 1978. This record increase in exports, coupled with a slower rate of growth of imports, resulted in substantial improvements of $5 billion in our balance of trade. Furthermore, a rapid growth of service exports in 1979 led to a $13 billion improvement in the current account, bringing that account from a deficit in 1978 to near balance in 1979. I expect that in 1980 our exports will continue to strengthen and that, if we can continue to further conserve and limit imports of oil, we will further improve our trade Balance position and that of the dollar. The future for American exports is bright, and will remain so, despite the necessity of suspending certain exports to the Soviet Union. This Administration has accomplished several goals in the last year in assuring that there will continue to be greater exports and, therefore, job possibilities for YOU.S. workers and farmers. To improve the condition of access of YOU.S. exports to foreign markets, I signed into force in July of last year a new trade act which reflected two years of hard bargaining in the recently concluded round of multilateral trade negotiations. These negotiations, which included all major developed and lesser developed countries, resulted in agreements to strengthen the rules of conduct of international trade and open new markets to YOU.S. exports. These negotiations were of historic importance in their scope and accomplishment, and their success is attributable to close cooperation that existed during and after the negotiations between the Congress, the private sector and the Administration. Our negotiating success now challenges us to take advantage of the opportunity for improving further our export performance. To meet this challenge, I proposed in 1979 a major reorganization of the government's trade policy and export promotion activities. That reorganization will strengthen government coordination in the trade field and provide an improved basis for protecting American interest in the recently negotiated trade agreements. I put this reorganization into effect, with Congressional approval, earlier this month. With the changes initiated in my trade reorganization, we will ensure that trade between the United States and its trading partners will be conducted fairly and openly. Consistent with my decisions on suspending certain types of trade with the Soviet Union, my Administration will be seeking this year to find additional ways to foster YOU.S. export expansion. We are studying the possibility of further agreements on expanded trade with both traditional and newer trade partners, including China. I look forward to working with the Congress on ways we can continue to improve our trading position which, in turn, will help maintain a prosperous American economy. SMALL BUSINESS This year marks the high point of three years of accomplishment for small business under my Administration, and the beginning of a decade of continuing effort to strengthen this large and vital sector of our economy. The White House Conference on Small Business, which I convened eighteen months ago and which has just concluded its deliberations, fulfills a pledge I made in 1976 that the voice of small business would be heard in my Administration. In anticipation of the Conference, I called on the head of every executive Department and agency to propose at least one initiative of benefit to small business. Over 160 separate initiatives have been proposed and are under examination, and many of them have already been put in effect. We have made great strides in reforming our regulatory process, cutting down Federal paperwork and developing flexible regulations which provide for minimizing or eliminating burdens on smaller businesses. The capital gains tax has been significantly reduced, and corporate taxes on small businesses have been lowered. We have also increased Small Business Administration lending activity, from $1.8 billion in 1976 to $3.1 billion in 1979, an increase of 72%. Since 1977 we have more than doubled Federal purchases of goods and services from minority firms from $1.1 billion to $2.5 billion in 1979. I am confident that such purchases will exceed $3.5 billion this year. I have put into place a comprehensive policy to strengthen the role of women in business, and have directed Federal agencies to take affirmative action to include women in management assistance and other business-related programs. SBA's advocacy role has been strengthened at my direction, and SBA has been added to the membership of the Regulatory Council and the Productivity Council, to help assure that the problems and issues facing small business are addressed wherever relevant policy decisions are made with the Federal government. To reduce the paperwork and regulatory burdens small businesses face in raising capital, I have recently proposed a Small Business Issuers' Simplification Act. This legislation will exempt from the burdensome registration requirements of the Federal securities laws sales of securities by small businesses to institutional investors, such as banks, insurance companies and pension funds, and others making investments of at least $100,000. Finally, last week I sent to the Congress a Message on Small Business to emphasize the vital importance of small business and to report to you on the steps we have already taken and plan to take in 1980 to strengthen small business. MINORITY BUSINESS From the beginning of my term, I have worked with the Congress to increase opportunities for minority business. As a result of our efforts, enormous progress has been made in the last three years: • Federal procurement from minority owned firms has increased by nearly two and a half times; • Federal deposits in minority-owned banks have nearly doubled; • minority ownership of radio and television stations has increased by 65%; • almost 15% of the funds spent under the Local Public Works Act of 1977 went to minority-owned firms; • the Section 8(a) program operated by the Small Business Administration has been reformed and strengthened. This year, my Administration is committed to expanding upon the progress made to date. This year, I am committed to more than tripling the 1977 level of federal procurement from minority-owned firms, and I have no doubt we can meet that goal. My 1981 budget improves the targeting of Small Business Administration loans to minority-owned businesses. We will also expand management, technical, and training assistance for minority firms and provide substantial funding increases for minority capital development under the SBA's minority enterprise small business investment company (MESBIC) program. I will also be proposing to the Congress a minority business legislative initiative to establish in the Department of Commerce a Minority Business Development Agency. That Agency, a successor to the Office of Minority Business Enterprise, was established last year under administrative authority, but I believe Congressional authorization would strengthen its operating abilities. WOMEN IN BUSINESS Last year I announced a new policy to strengthen and foster the growth of women-owned businesses. My new budget includes funds to make this policy a reality by increasing SBA direct loans to women by 50%, by assisting women in gaining access to sources of financing, and by expanding management and technical assistance to women. By insuring that women bare fuller access to opportunities to start and maintain their own enterprises, we will start a genuine momentum to take full advantage of the contribution which women can make to the growth and productivity of our economy. II. CREATING ENERGY SECURITY Since I took office, my highest legislative priorities have involved the development of our Nation's first comprehensive energy policy. The struggle to achieve that policy has been difficult for all of us, but the accomplishments of the past three years leave no doubt that our country is finally serious about the problems caused by our over-dependence on foreign oil. The accomplishments can be lost, however, and the progress stopped, if we fail to move forward even further this year. There is no single panacea that will solve our energy crisis. We must rely on and encourage multiple forms of production-coal, crude oil, natural gas, solar, nuclear, synthetics—and conservation. It is therefore essential that Congress enact the major energy bills I proposed last year; and their enactment will be my most immediate and highest legislative priority this year. WINDFALL PROFITS TAX My highest, most immediate legislative priority during this Session is prompt passage of a sound windfall profits tax on crude oil. Last April, I proposed a tough windfall profits tax to recoup a portion of the unearned income that would accrue to the oil companies as a result of the phased decontrol of domestic crude oil prices and OPEC price increases. It is essential that these revenues be invested on behalf of all Americans to help us become an energy secure nation. The revenues from the tax will be used to support key national energy goals: low-income energy assistance, improved and expanded mass transit and energy supply and conservation programs. The windfall tax that I proposed was also carefully designed to provide incentives needed to increase domestic oil production. Under my proposal, we expect a barrel per day increase in domestic production due to decontrol and higher world prices. Without any windfall profits tax production would be only marginally higher by 1985. The American people clearly want and our national energy needs clearly require—a tough windfall tax. We cannot afford further delay. The House-Senate Conference Committee has reached agreement on a tax raising $227 billion over the next ten years. A tax at that level is acceptable, provided the components of the tax are consistent with sound energy policy. I urge the conferees and the Congress to approve forthwith a tax that I can sign. There can be no higher legislative priority. ENERGY MOBILIZATION BOARD Last July, together with a comprehensive energy program, I asked Congress to join with me to create an Energy Mobilization Board (EMB). The Board can cut through burdensome and unnecessary red tape and reach prompt decisions on designated priority energy projects. Decision-making can be streamlined without overriding of substantive law, which I strongly oppose. The Board is a key element of our strategy to attain energy security by cutting foreign oil imports in the coming years. Prompt passage of the EMB is one of my highest priorities this year, and I urge the Congress to complete its action on this proposal without delay. ENERGY SECURITY CORPORATION Last year, I proposed the creation of an Energy Security Corporation to lead our national effort to develop and produce synthetic fuels, coal-based synthetics, oil shale and biomass. The Corporation would be an independent body, chartered by the government and authorized to use a variety of financing tools-principally price guarantees, Federal purchases, and loan guarantees—to stimulate private sector development of synthetic energy alternatives to imported oil. I have recommended that the Corporation be given a goal to develop the capacity to produce 1.75 million barrels per day of synthetic fuels, oil shale, and biomass by 1990. With an ability to produce commercially synthetic alternatives to foreign crude oil, our Nation will have effectively capped the price which foreign oil producers can charge for crude oil. We cannot do the job we must do for our Nation's security by operating this program from within the government. The Corporation can much more easily obtain the needed talent and operate without the constraints binding a government agency. Enactment of the legislation containing the Energy Security Corporation is one of my highest legislative priorities for this Session. I urge the conferees to complete this work expeditiously so that the Corporation can open its doors as early as possible this year. REDUCTION IN UTILITY OIL USE I will soon send to the Congress legislation which will assist utilities in the use of coal, and encourage them to retire existing oil burning plants for generating electricity.-The Department of Energy and my staff have worked very closely with Congressional energy leadership over the last several months to develop a legislative proposal which can be acted upon quickly. My proposed utility oil use reduction legislation will help us to achieve two of our basic energy goals—decreasing our dependence on foreign oil and increasing our production of more abundant and secure energy supplies, such as coal. For that reason, passage of this legislation will be one of my highest energy priorities this year. GASOLINE RATIONING I will soon be sending to Congress for its approval a standby gasoline rationing plan, under the authority of legislation I signed into law last year. In developing this plan, we have given priority attention to accommodating essential gasoline usage, bearing in mind the need to design a plan which is workable and which can be put into place quickly if a severe emergency arises. I recognize the difficulty of developing a plan that meets the many competing State and local concerns. Last year's experience demonstrated that difficulty very well. I .am determined, as I am certain Congress is, to avoid repeating it. My Administration will work very closely with Congress on the standby plan. I hope the Congress will recognize the overriding national importance of emergency preparedness and will take action early to approve my proposed plan. I do not intend, under our current supply conditions, to implement a rationing program. But we can no longer afford to be unprepared for the possibility of further severe interruptions in energy supplies. ENERGY CONSERVATION In my very first energy address to the Nation in April 1977, I stressed the importance of conservation as the cornerstone of our national energy policy. It is the cheapest and fastest means of reducing our dependence on imported oil and it constitutes an alternative source of supply. To the extent that we conserve-in our homes, factories, cars, and public buildings—we make the task of providing secure sources of energy for the future that much more attainable. In November 1978, I signed into law our country's first energy conservation tax credits. These provide up to $300 for home conservation investments, and an additional 10 percent investment tax credit for industrial investments in energy efficient equipment. At the same time, we put in place a requirement that utilities provide energy audits for their customers and offer to arrange financing. We also established stiff taxes on new gas guzzling automobiles. As a result of my April 1977 initiatives, we are also providing a total of $900 million over three years to weatherize schools and hospitals across the Nation. Last July, I proposed a program to provide $5.8 billion over the next decade to subsidize interest rates on homeowner loans for conservation investments. This program will be targeted to low- and moderate-income homeowners and apartment owners for whom the tax credits are less effective as an incentive. Under this program it is expected that consumers' total monthly bills will decline since the financial savings resulting from lower energy use will be greater than the monthly payments on the subsidized loans. I consider this new program to be an essential piece of my overall conservation strategy and urge the House-Senate Conference Committee now working on the bill containing this provision to complete work promptly. Energy conservation must also go forward at the State and local levels. To help that important effort, I am again urging Congress to pass my proposal, under the authority of the proposed Energy Management and Partnership Act, to provide grants to local governments to meet national energy conservation goals. SOLAR ENERGY Last June, I sent the Congress a Message on Solar Energy outlining my Administration's solar program and setting a national goal for the year 2000 of deriving 20% of this Nation's energy from solar and renewable resources. A firm and ambitious course—not only by the Federal government but also by State and local governments, private industry, academia and private citizens—is required to reach this goal. As part of my solar program announced in June, I proposed a number of initiatives to the Congress to assist in solar energy development. Among those were the establishment of a Solar Energy Development Bank funded at $150 million per year to provide subsidized loans for the installation of solar equipment on homes and commercial structures, and additional tax credits for passive solar construction, wood stoves, industrial and agricultural solar applications, and gasohol. These initiatives have yet to be enacted by the Congress and I urge prompt action on these measures to help speed the penetration of solar technologies in the marketplace. In addition, my FY 1980 program for solar energy exceeded $1 billion government-wide. This is more than three times greater than the program in place when I took office. In FY 1981 government-wide expenditures for solar and renewable energy will be nearly $1.4 billion and will include programs administered by the Departments of Energy, Agriculture, Interior, Defense, State, Housing and Urban Development, and the Tennessee Valley Authority. The Federal solar program has as its overall objectives, the emphasis on basic research and development of solar technologies not currently economic such as photovoltaics, where electricity is generated directly from the sun, and the provision of funding and technical information to accelerate the use of marketable solar technologies which are available now. Solar heat and hot water and wood energy are among these technologies. We will continue to work with the Congress this session on passage of critical solar energy legislation. We are making progress on the transition away from our dependence on fossil fuels and towards the widespread use of renewable sources of energy. We must maintain an aggressive policy to achieve this transition. NUCLEAR SAFETY Immediately following the accident at Three Mile Island, I established a Presidential Commission, chaired by the President of Dartmouth College, to report to me on actions needed to prevent recurrence of this kind of accident. Safety is and will remain my Administration's primary priority in the regulation and management of nuclear power. I have taken steps to correct virtually all problems identified by the Kemeny Commission and have acted to implement most of its specific recommendations, including: • A reorganization of the NRC to strengthen the role of the Chairman. I will soon send to Congress a reorganization plan to give the Chairman power to select key personnel and act on behalf of the Commission during an emergency. • Appointment of a new Chairman of the NRC from outside the agency when the next vacancy occurs. In the meantime, I have designated Commissioner Ahearne as Chairman with a mandate to initiate changes needed to assure the safety of nuclear power plant operations. • Direction to the Federal Emergency Management Agency to lead all off-site emergency activities and review all emergency plans in States with operating reactors by June. • A request to the NRC to accelerate its program to place a resident Federal inspector at every reactor site, and to upgrade training and evaluation programs for reactor operators. I endorsed the approach the NRC adopted to pause in licensing, but have urged the Commission to complete its work as quickly as possible, and in any event no later than June of this year. Once we have instituted the necessary reforms to assure safety, we must resume the licensing process promptly so that the new plants which we need to reduce our dependence on foreign oil can be built and operated. Nuclear power is an option that we should keep open. GASOHOL I have recently proposed a program to accelerate dramatically America's production and use of gasohol, as yet another important way on which we can wage—and win—our energy war. My Administration is committed to a program which will provide between $8.5 billion and $12.8 billion of assistance to stimulate production of alcohol fuels over the coming decade. We will quadruple current gasohol production capacity by the end of this year. During 1981, we should be capable of producing ethanol at an annual rate of 500 million gallons-more than six times the current rate. If this entire amount of ethanol were turned into gasohol, it would replace almost 10% of our anticipated demand for unleaded gasoline in 1981. Our overall gasohol program will spur the investments that we together must make for a more secure energy future. We will create new markets for our farmers. We will no longer have to throw away waste materials which can be turned into profitable, essential fuels. Our Nation's enormous agricultural and fiber resources can be used to help provide a secure source of energy for our future. By producing gasohol from fiber and agricultural by-products, we can meet fuel needs for millions of Americans, including our farmers. I am eager to work with the Congress on my alcohol fuels program, so that we can soon have legislation that will authorize and provide the funding for this important energy development. ENERGY IMPACT ASSISTANCE As new domestic energy resources are developed, particularly in rural or isolated areas of the country, we must provide for the needs of rapidly developing communities. My Administration will continue to work with the Congress to enact legislation establishing an Inland Energy Assistance program, with funding of $150 million per year, to aid those States and local areas which are experiencing a rapid growth in population as a result of new energy supply development. These communities often cannot plan for or meet increased need for new public facilities or services, since the population increases occur before the new energy supply activities are fully developed and producing local revenues. This legislation is essential to ensure that the burdens associated with solving our energy problems are borne equitably by all citizens and regions of the country. III. ENHANCING BASIC HUMAN AND SOCIAL NEEDS For too many years immediately preceding my Administration, too many of our Nation's basic human and social needs were being ignored or dealt with insensitively by the Federal government. Over the past three 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 efforts over the past three years have produced clear progress in our effort to solve some of the country's fundamental human and social problems. The 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, we still have important legislation to enact this year. The legislation is before the Congress, and I will be working with you toward its enactment. Health NATIONAL HEALTH PLAN Last June, 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, affordable, 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 initiatives, including greater incentives for Health Maintenance Organizations. If enacted this year, my Plan would begin providing benefits in 1983. I urge the 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 enormous financial burdens on the American taxpayers. When that comparison is completed, I am convinced 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. HOSPITAL COST CONTAINMENT Hospital Cost Containment remains the single most important piece of legislation that the Congress can pass to demonstrate its commitment to fight inflation. This legislative initiative will save billions of dollars for our Nation's consumers by eliminating unnecessary and wasteful hospital services. We can no longer allow hospital inflation to put needed health care out of the reach of the average American. In a sector where there is an absence of competitive forces, Hospital Cost Containment legislation is necessary to restrain spending, while the process of developing other effective measures proceeds. The longer we delay enacting Cost Containment, the more expensive our fight against hospital inflation will become. I am asking the Senate to move quickly on this legislation. HEALTH PROMOTION AND DISEASE PREVENTION Last July, 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 achievable goals in the reduction of mortality which can be reached by 1990. Consistent with this report, the health strategy I will propose in my FY 1981 budget places unprecedented emphasis on prevention. This strategy includes increased funding for many new and continuing programs in the areas of environmental hazards, workplace health and safety, commercial product safety, traffic safety, community water fluoridation, 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 will 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 are recognized to have extremely high returns in terms of improved newborn and long-term child health. Under the Child Health Assurance Program (CHAP) legislation which I have already submitted to this Congress, an additional two million low-income children under 18 will become eligible for Medicaid benefits, which will include special health assessments. CHAP will also improve the continuity of care for the nearly 14 million children now eligible for Medicaid. An additional 100,000 low-income pregnant women will become eligible for prenatal care under the proposal. We must work together this year to enact CHAP and thereby provide millions of needy children with essential health services. For the third consecutive year, I am requesting expansion of the special supplemental food program for women, infants, and children. Under my proposal, over 2 million low-income nutritionally needy mothers, their nursing infants, and children will receive special food supplements each month. These food supplements have been shown to prevent ill health thereby reducing later medical costs. In addition to these legislative initiatives, I will propose increased funding in the FY 1981 budget for the successful Family Planning program, which targets services on low-income women and adolescents at high risk for unwanted pregnancy. Further, the 1981 budget contains continued funding for my Adolescent Health initiative, which is designed to provide and coordinate services to pregnant teenagers as well as reduce the incidence of unwanted pregnancies. EXPANSION OF SERVICES TO THE POOR AND UNDERSERVED My health proposals for FY 1981 will place high priority on expanding other improvements which have been made during my Administration in the access and continuity of care for medically underserved groups. I will propose substantially increased funding for the most successful programs in this area, including Community and Migrant Health Centers, and the National Health Service Corps program, which places health professionals in rural and urban medically underserved areas. In addition, I am proposing legislation to make coverage of clinics providing comprehensive primary care services a mandatory benefit under Medicaid. MENTAL HEALTH Last year, I submitted a Mental Health Message to Congress and proposed the Mental Health Systems Act, which is based upon recommendations of my Commission on Mental Health. 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, prevention services, and for the development of community-based mental health services. This year, my Administration will be working intensively with the Congress for prompt enactment of this important legislation, and the First Lady will continue her substantial work in this area, as an effective spokesperson and advocate for mental health reform throughout the country. WORKER HEALTH AND SAFETY My Administration will continue to enforce fully laws protecting worker health and safety in a sensible and efficient manner. We will be making further efforts to eliminate frivolous and unneeded rules, while concentrating greater enforcement efforts on the most dangerous and particularly the most unhealthy occupational environments. More effective management of our worker safety programs will serve the interest that both labor and management have in better working conditions. 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 to 380,000, reduced the number of heroin overdose deaths by 80%, and reduced the number of heroin related injuries by 50%. However, drug abuse in many forms continues to detract from the quality of life and is of great concern to us and the people of all nations. I am particularly concerned over the increasing quantities of heroin originating in Iran and Southwest Asia and we will continue to be especially alert to this threat in 1980. During 1980, we will also strive to reduce the supply of illegal drugs, both at their overseas sources and within the United States. While continuing a comprehensive treatment program, our priority will be to reduce drug abuse among adolescents. One of the important goals of my Administration at the beginning of this decade is to change the social acceptance of drug use. 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 last year 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. In this session, I will continue to work with the Congress to achieve additional improvements in the Food Stamp Program and to eliminate permanently the expenditure cap. I will also propose this year that Congress pass the Administration's Child Nutrition Amendments to target assistance under our school meal programs to those most in need. Education The stern challenges of the 80's place new demands on every sector of our society. Education is the insurance we have to provide the talent and capability to meet every demand on our National agenda. The challenge of the 80's in education is to see that quantity education becomes quality education. That is a challenge we can meet. Last year, my Administration and the Congress successfully collaborated to create a new Department of Education. The Department will give 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 combines nearly 150 existing Federal education programs into a cohesive, streamlined organization that will be more responsive to the needs of 'educators and students. The Department will cut red tape and paperwork to make the flow of Federal dollars to school districts and institutions of higher education more efficient, thereby providing students and educators with more benefits per dollar of Federal funds. We are determined to work closely with the Congress this year in making certain that the Department begins on a sound basis, consistent with the purposes and hopes Congress had when creating it. To ensure adequate financial resources for education, I have requested, since taking office, an overall increase in Federal aid to education of 75% above the previous Administration's last budget. Many programs, including those serving disadvantaged and handicapped students and those providing financial aid to students enrolled in postsecondary education, have benefited from ever larger percentage increases during my Administration. My FY 1981 budget request in education will represent a generous increase over last year's budget. There will be particularly significant increases in a number of programs serving special populations, in addition to the major new program designed to give youth the basic skills needed to get and keep a job. I am also recommending a substantial increase in the programs which deal with international education, to improve our understanding of other nations. In addition, proposals I submitted last July to reauthorize the Higher Education Act are still under consideration in the Congress. The centerpiece of my proposals for the student financial aid programs is a major reform of the student loan programs. My proposal would, for the first time, provide a comprehensive program of loans from the Federal government for higher education students who need them. Our proposals would eliminate much of the paperwork and confusion that have plagued students, parents, and colleges by mandating a single application form for all Federal need-based assistance. It is essential that this reauthorization be enacted this year. But the reauthorization legislation must be consistent with my commitment to a restrained, responsible budget. We are eager to work with the Congress to achieve this goal as soon as possible. Income Security WELFARE REFORM Last year, 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. 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. Last year the House passed The Social Welfare Reform Amendments Act, which addresses the major problems in our cash assistance programs. This year, we must continue this momentum toward welfare reform. I am determined to do whatever I can to help enact the two bills needed for the most comprehensive reform of the welfare system in our history. 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. The work of the Congress on this legislation is now almost completed. The well-being of children in need of homes and their permanent placement are primary concerns of my Administration, and I am determined to see improvement in the system which cares for these children. This legislation will help ensure that. LOW-INCOME ENERGY ASSISTANCE Last year, I proposed a program to provide a total of $2.4 billion per year to low-income households which are hardest hit by rising energy bills. With Congress' cooperation, we were able to move quickly to provide $1.6 billion for assistance needed this winter. Of that amount $1.2 billion was provided for grants to eligible households and $400 million for an energy crisis assistance program. The first checks were received by eligible families and individuals in early January. I have already proposed, and will continue to press for, legislation which provides $2.4 billion a year for low-income energy assistance. Funding from this program will come from the Windfall Profits Tax. Continuing this assistance is one of my high priorities in this session of Congress. SOCIAL SECURITY I have been deeply committed to restoring the public's confidence and trust in the Social Security System. With the passage of the Social Security Amendments of 1977, the financial stability of the System was improved. Each month 35 million Americans receive pension and disability checks. They can rely on doing so without fear of interruption. We must, however, address the continuing financial viability of the Social Security System in light of changing economic circumstances. We must also review the equity of the sex-related distinctions contained in the system's benefit provisions. To help ensure the system's viability, I will propose legislation to permit borrowing among the separate trust funds. This measure will strengthen the Social Security System for current and future beneficiaries. I will also review closely the work of several major study groups, and will consult with experts in the Department of Health and Human Services and the Congress to assess their recommendations. DISABILITY INSURANCE REFORMS As a result of the legislation we enacted in 1977, which strengthened the financing of the Social Security System, the Social Security disability insurance program is now in stable financial condition. Last year, my Administration proposed modifications in the program to further improve its administration and to increase incentives for disabled beneficiaries to seek rehabilitation and to return to work. In 1980, we will work with the Congress to enact these reforms. I hope the Congress will stay as close as possible to my original proposal. Housing My Administration has brought improved stability to the Nation's housing market. Housing starts from 1977 through 1979 averaged more than 1.9 million units per year. We have been and remain committed to assuring the availability of an adequate level of mortgage credit during a period of record high interest rates. Toward that goal, we developed the six month money market certificate and broadened the secondary market activity of the Government National Mortgage Association and the Federal Home Loan Mortgage Corporation. Most recently, the bank regulators introduced two and one half year certificates which should become valuable sources of funds for savings institutions, enabling them to continue a high level of mortgage lending. I am pleased that our anti-inflation policies have begun to slow the rate of growth in home prices. Within the context of our overall economic strategy, we will continue to support measures which provide for improved stability in the housing industry, avoiding the boom and bust cycles that led to unemployment, business failures and dislocation in the past. I have sent to the Congress legislation to update the government's emergency authority, under the Brooke-Cranston program to purchase mortgages in times of economic stress. The current authority could not be used effectively. I urge quick Congressional action on this legislation, so that the Administration will be in a position to use this program, if necessary. We have also brought improved stability and predictability and higher production to the provision of assisted housing for low- and moderate-income Americans, including the elderly and the handicapped. During the period from 1978 through 1981, my Administration will have committed nearly 1.3 million units of housing for lower income renters and homeowners. Actual construction starts reached 175,000 units in 1979, a level which we will sustain through the next several years. I will be proposing in my FY 1981 budget a level of 300,000 assisted rental units and 25,000 assisted homeownership units, a total 25% increase over 1980 levels. This recommendation reflects my Administration's concern about the number of poor Americans still living in substandard housing. I will also propose this year to extend HUD's home ownership assistance and interest subsidies to low income tenants in designated revitalization areas. That will help address the particular problem of displacement of low income persons and the elderly by urban revitalization and condominium conversions. My Administration will again be working with the Congress to pass the condominium reform legislation that I proposed last year. That legislation will provide basic protections for the purchasers of condominium units. Many unit owners lack adequate remedies to redress serious inequities under existing law, and expeditious Federal action in this area is a priority. In 1980 we will also propose a number of significant new legislative initiatives. I will be proposing a comprehensive simplification and consolidation of the Nation's basic housing laws on mortgage insurance and mortgage credit activities of the Federal Housing Administration and the Government National Mortgage Association. This proposal will make the services of these agencies more understandable and accessible to the American public. I will also be recommending prompt Congressional action to extend the Home Mortgage Disclosure Act, which has been an important factor in aiding the availability of mortgage credit in inner city areas. Finally, building on the urban partnership we have established with the cities, we will continue to increase the control local governments exercise over the operation of Federal housing programs. We will propose a fundamental change in HUD's public housing modernization program to allow local authorities to use up to 50% of their public housing production funds for modernization and repair of the existing, deteriorated stock of public housing. And in recognition of the severity of the housing problems in America's rural communities, we will be implementing the Action Agenda of 12 Rural Housing Initiatives which I announced last month. NEIGHBORHOOD DEVELOPMENT Neighborhood development is an essential component of my policies designed to revitalize our Nation's urban areas. My Administration has taken a number of steps to assist non-governmental, neighborhood groups carry out community improvement plans. In Fiscal Year 1981, I will propose increased funding for the Neighborhood Self-Help Development Program. This program aims to build the capacity of independent, neighborhood organizations to implement conservation and revitalization projects in low- and moderate-income neighborhoods. In 1980, I will strongly support the renewal of the Home Mortgage Disclosure Act in order to encourage neighborhood reinvestment. My Administration will also continue to support fully the neighborhood reinvestment actions of independent regulatory agencies, such as the Federal Home Loan Bank Board's Community Investment Fund. Transportation A major goal during the 1980's is to bring about a dramatic increase in the economic and energy efficiency of our transportation systems. While this Nation's transportation facilities are among the best in the world, they were planned, designed and constructed in an era of abundant and cheap energy. The country now faces a totally different situation of scarce and increasingly expensive energy. To help combat this problem, I have proposed to use $16.5 billion over the next decade from the windfall profits tax revenues to increase the energy efficiency of transportation. Of that, $13 billion would be allocated to increase transit capacity; $2.5 billion would be directed to promote the energy-efficient use of the automobile; and $1 billion for research on automotive fuel efficiency. I urge the Congress to enact this proposal without delay. To further promote energy conservation, stimulate urban growth and create new employment opportunities in the inner cities, I urge the Congress to support mass transportation authorization legislation. This year I will seek reauthorization and extension of the public transportation grant program. With the assistance of the Congress, we have taken a number of positive steps to reform outmoded transportation regulation. The Airline Deregulation Act of 1978 is working well, with reduced passenger fares per mile, and with the airlines better able to withstand the effects of recession and fuel price increases than would have otherwise been possible. To continue that type of progress, last year I submitted truck and rail regulatory reform bills and I am committed to seeking their enactment in 1980. These important bills will save consumers billions of dollars annually and reduce wasted fuel consumption. To further improve America's railroads, I have introduced legislation to direct Federal railroad financial assistance toward restructuring of failing railroads and improved employment efficiency. I will also ask Congress to increase funding for and extend the life of the Northeast Corridor Improvement Project to improve passenger rail services in the Northeast. Statutory authority for present airport programs and related aviation taxes will expire during 1980. I have already sent to the Congress a proposal to use nearly $15 billion from the Airport and Airways Trust Fund over the next five years for airport and aviation expenses. I urge Congress to enact this proposal this year. Finally, I am committed to the further development of our maritime industry. To achieve maximum export competitive position for the United States, the ties between our port facilities and our land transport facilities must be greatly improved. Last year, my Administration conducted a comprehensive review of maritime policy and transmitted to the Congress our goals for liner regulation and merchant marine promotion. This year, we will be working with the Congress to pass legislation that embodies our interest in expanded trade and a strong merchant marine fleet. Special Needs WOMEN The efforts of my Administration over the last several years have been concentrated on providing American women with a full range of opportunities. Programmatic initiatives have been developed to overcome the widespread discrimination and disparities which women have faced in education, in health, and in employment. The Women's Education Equity Act has been funded in both Titles I and II to provide school boards with grants for programs designed to end discrimination in education. The avoidance of discrimination in education has been also stressed through improvements in the enforcement of existing civil rights legislation. The particular health problems faced have been addressed with increases in the family planning funds under Title XX, as well as improved teenage pregnancy funding and programs. Further, my National Health Plan provides complete coverage to pregnant mothers and infants without cost. Employment still continues to be a major problem with a wide gap between the average week wage of men and women. This is being addressed through major improvements in the funding for the Women's Bureau of the Department of Labor for model training programs and research projects. CETA prime sponsors have been matched on a four-to-one basis to improve the amount of funding for these programs. In the year ahead, the Administration will be supporting the passage of legislation to decrease domestic violence and provide shelters for battered spouses. FAMILIES As part of my Administration's effort to focus attention upon and strengthen the family structure, last year I established the Office of Families within the Department of Health, Education, and Welfare. That office will help coordinate our activities in this vital area. Later this year, we will hold the White House Conference on Families, which I initially proposed during my 1976 campaign. This conference, the culmination of three years of work, will help focus public attention on the problems affecting families and on the means needed to solve or avoid those problems. OLDER AMERICANS My Administration has taken great strides toward solving the particular problems faced by senior citizens. Early in this term we worked successfully with the Congress to assure adequate revenues for the Social Security 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. Further, the Administration worked 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 increased funding for nutrition, senior centers and home health care, and will focus added resources on the needs of older Americans. I will also be seeking to strengthen further the Social Security System by proposing legislation to permit borrowing among the separate trust funds. With the 1981 White House Conference on Aging approaching, my Administration is making every effort to assure an effective and useful conference. This forum 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, with special attention to those in need of long-term care. REFUGEES In 1979 my Administration made significant progress in resolving a number of problems arising from the increase in refugees. Last March, I proposed comprehensive refugee legislation, and I regard its passage as a high priority this year. The legislation—which is the first comprehensive reform of our refugee immigration and domestic resettlement policies in twenty-eight years—will bring common sense and cohesion to an unnecessarily fragmented approach to international and domestic refugee needs. Under vigorous new leadership, the Office of the YOU.S. Coordinator for Refugee Affairs, which I created last year, will aggressively address the need of refugees at home and abroad. We will also encourage greater cooperation with the private sector and other actions to ensure successful refugee resettlement. VETERANS As our commitment to peace and our national security remains as strong as ever, so too is our Nation's obligation to those whose past service to our country helped to keep peace in the world. For that reason, my Administration's commitment to the needs of America's veterans will remain a high priority. My Administration is committed to sustain high quality health care in the V.A. hospital system, the largest in the free world, and to encourage its growth in the most effective and efficient manner. That commitment will be reflected in my budget for FY 1981. The system must maintain its independent integrity. In 1980, we will continue to honor and seek recognition of all our Nation's veterans, but we must acknowledge that veterans of the Vietnam War have yet to be accorded the full honor bestowed upon veterans of past wars. We will continue this year to assist Vietnam-era veterans with special needs and concerns, building on my initiative last year for these veterans. Accordingly, this year, I will again ask Congress to reform and revitalize the VA's vocational rehabilitation program, and to extend eligibility for the G.I. Bill to those veterans of the Vietnam War era who are most in need of advanced job training opportunities. In addition, I will seek increased benefits for the recipients participating in the current G.I. Bill program. The Nation's veterans deserve these benefits, and I am committed to serving them. My Budget also proposes legislation to grant a cost-of-living increase for the recipients of compensation for disabilities incurred while in the service of their country. Government Assistance GENERAL AID TO STATE AND LOCAL GOVERNMENTS Since taking office, I have been strongly committed to strengthening the fiscal condition of our Nation's State and local governments. I have accomplished this goal by maintaining consistent and strong economic growth, and by encouraging economic development of local communities, and by supporting the General Revenue Sharing and Counter-Cyclical Fiscal Assistance programs. GENERAL REVENUE SHARING This year I will propose the renewal of General Revenue Sharing. My Administration's proposal will forge a closer partnership among the Federal, State and local governments and will further emphasize the pivotal role of the States in our Federal system. My proposal for GRS renewal also will provide additional aid to the cities and counties that are most strained fiscally. I will soon send legislation to Congress that will extend GRS for five years at the current funding level of $6.9 billion. One third of the money will be provided to State governments on the basis of the current distribution formula. As a condition for continued payments to the States, each State will be required to constitute a broadly-based Commission to assess and address the fiscal problems confronted by the State and by the local governments within the State. These Commissions will provide a mechanism for involving the States to a greater extent in the Federal-State-local government partnership. Two-thirds of GRS payments will be provided to local governments on the basis of population, tax effort and per capita income. While I will propose retention of the basic distribution formula for local governments, I also will propose a number of modest formula changes to provide greater aid to localities with large service responsibilities and with insufficient fiscal resources. My proposal for GRS renewal will be the cornerstone of my policy for 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 urge Congress to move quickly on my GRS proposal, to assure that our Nation's States and localities can begin the 1980's in sound fiscal condition. COUNTER-CYCLICAL AND TARGETED FISCAL ASSISTANCE Last year, I submitted to Congress a two-part fiscal aid package designed to strengthen further the fiscal condition of our Nation's States and localities. The first part of this legislation provided standby counter-cyclical legislation to protect States and localities from unexpected changes in the national economy. The second part provided transitional highly targeted fiscal assistance in FY 1980 to only the most distressed local governments. Substantial progress has been made on this legislation in the past year. The Senate passed legislation providing both targeted fiscal assistance and counter-cyclical aid in August, 1979, and similar legislation is now ready for House action. It is important that Congress complete its action on this legislation early this year. Urban Policy Two 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, fifteen of these bills have now been signed into law. Additional action is expected to put into place more of these proposals this year. 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. My FY 1980 budget requested more than $1.5 billion for economic development grants, loans and interest subsidies and more than $2.5 billion for loan guarantees. Approximately 60% of these funds will be spent in our Nation's urban areas. My FY 1981 budget continues these programs at these already high levels. In addition, we have extended the 10% investment credit to include rehabilitation of existing industrial facilities as well as new construction. This year we need to continue our progress by extending and expanding the programs of the Economic Development Administration. With Congress' cooperation, this legislation already has passed both the House and the Senate. Both the House and the Senate bills include the key elements of my original National Development Bank proposal and provide a substantial expansion of the economic development grant, loan, loan guarantee and interest subsidy programs of the Federal government. This legislation is vitally important to the economic revitalization and redevelopment of our Nation's economically troubled urban and rural areas. I am hopeful that the conferees will complete their work shortly so that we can get these essential programs underway. 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 enact legislation reauthorizing the programs of the Economic Development Administration. That legislation is now in Conference, and I urge the conferees to complete their work soon, so that we can 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. This year, I will ask Congress to reauthorize both the CDBG and UDAG programs. I will propose that the CDBG program be reauthorized for three more years, and that a $150 million increase in funding be provided by FY 1981. I also will propose that the UDAG program be extended for three years, and that $675 million be provided for this program in the upcoming fiscal year. These actions should help our Nation's cities and counties to continue the progress they have made in the last three years. RURAL POLICY Since the beginning of my Administration, we have taken steps to address the pressing needs of a changing and rapidly growing rural America. For many rural areas, and for most rural residents, the last decade was a time of rapid growth and development. While this growth and development has produced higher income and increased jobs in rural communities, it has also created substantial housing, energy, transportation, health, and management problems. Last December I announced our Small Community and Rural Development Policy, which is the culmination of several years' work and is designed to address these pressing problems now affecting rural areas. The major elements of the policy involve: —Creation of the position of Under Secretary of Agriculture for Small Community and Rural Development to provide leadership in carrying out this policy. —Establishment of an inter-agency working group to assist in the implementation of this policy. —Appointment of a citizens Advisory Council to advise the President on the performance of the Federal government in the implementation of this policy and to recommend needed changes. —An invitation to the Nation's government-formed rural development councils to work in partnership with Federal agencies in delivering State and Federal programs to rural areas. —A directive to the working group to annually review existing and proposed policies, programs, and budget levels to determine their adequacy in meeting rural needs and fulfilling the policy objectives and principles. This is a landmark policy. It is the first time rural affairs has been given the prominence of a Presidential policy. Although many new program authorities for dealing with rural problems have been provided over the past two or three decades, there has been no institutional capacity at the Federal level for coordinating and focusing these efforts in a coherent and effective way. This policy provides that capacity, backed by my personal commitment to make it work. My Administration will be working with the Congress this year to pass legislation needed to fulfill the commitment of this rural policy initiative. Consumers CONSUMER REPRESENTATION Last September 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 decisionmaking. Under the Order, each Federal agency must adopt and implement its own strong consumer program. I also established an interagency Council to coordinate the Agencies' actions in responding to the Executive Order. This year, under the leadership of my Special Assistant for Consumer Affairs we will be working to make certain that the Order is faithfully implemented and that consumers receive better protection and assistance from Federal agencies. My Administration will continue to support efforts to provide financial assistance in regulatory proceedings to citizen groups, small businesses and others whose participation is limited by their economic circumstances. These programs are needed to balance the regulatory process by assuring opportunities for broad public involvement in these proceedings. Finally, the Administration will continue to support reform of class-action procedures to ease the unnecessary burdens and costs of class actions, while at the same time preventing their use as an harassment technique. NATIONAL CONSUMER COOPERATIVE BANK My Administration worked closely with the Congress to create the National Consumer Cooperative Bank. The Bank is to provide loans, loan guarantees, and other financial services to non-profit consumer cooperatives, operating in such areas as food, housing, health, and auto repair. To demonstrate my commitment to this innovative institution, I have signed legislation increasing appropriations for the Bank from $4 million in fiscal 1979 to $74 million in fiscal 1980. Legislation has also been signed adding two members to the Bank's board of directors—one to represent the interests of small business and one to represent the general public. This year we will continue our efforts with Congress to make the Bank a strong and vital resource for consumers. CONSUMER SERVICES INFORMATION Genuine competition is lacking in many service industries because consumers generally lack comparative cost and quality information. To help alleviate this problem, my Administration will assist nonprofit groups and State and local government agencies to develop local consumer information systems to provide accurate cost and quality data on locally provided services. An essential part of this effort will be an evaluation of the impact of better consumer information on inflation and productivity in the service sector. Science SCIENCE AND TECHNOLOGY Since the beginning of my Administration, I have been committed to strengthening our Nation's research and development capability and to advancing those areas of science and technology which are vital to our economic and social wellbeing. That commitment has been reflected in: a 40% increase in basic research funding, resulting in the highest research and development funding in our Nation's history; a new Automotive Research initiative in which the industry, in partnership with the Federal government, will undertake basic research essential to help improve future automobiles; an acceleration of scientific and technological exchanges with the People's Republic of China; a major review of space activities and needs, resulting in a 60% increase in space funding and in the development of a space policy that will set the direction of our space efforts over the next decade; and a major new program to encourage industrial innovation. 'Each of the undertakings will be pursued, in cooperation with the Congress, in this year. SPACE The diversity of our activities in space shows that space technology has become an integral part of our lives—in communications, in remote sensing for defense and civilian purposes, and in studies of the earth and the universe. Guided by a sound, aggressive, and fiscally responsible space policy, my Administration has undertaken a concerted effort to support and further our space activities. During my Administration, the expenditures for Federal space programs have increased by 75%. Much of this increase is to meet the increasingly operational nature of our space activities. Nearly half of our expenditures are now for defense purposes; photo-reconnaissance satellites, for example, are enormously important in stabilizing world affairs and thereby make a significant contribution to the security of all nations. And my new initiative to establish an oceanic satellite system will provide invaluable ocean data for both the civil and defense sectors, thereby avoiding unnecessary duplication. I have also emphasized space science and exploration, continuing to fund such spectacular programs as the Voyager missions that provided us with the remarkable close-up views of Jupiter and its moons. I am proposing two new measures-the space telescope and the new Gamma Ray Observatory to provide a unique capability to observe distant galaxies and to obtain information about our universe from outside the earth's obscuring atmosphere. In 1980, I will continue my strong support for the space program. That will be reflected in my budget and in my continued commitment to the space shuttle. Arts & Humanities ARTS The arts provide fundamental enrichment for our Nation. The National Endowment for the Arts has played a major role in focusing public attention on the arts. In doing so, the Endowment has brought wider audiences from all parts of the country into contact with all of the arts. Since the beginning of my term, I have increased the government's support for the Endowment's activities. I will continue that record of expanded support again this year. This will enable the Endowment to strengthen its efforts to open the arts to new audiences, new forums, and new parts of the country. HUMANITIES The humanities play a vital role in deepening our understanding of culture and society. To enable the National Endowment for the Humanities to continue its important efforts, I will again be proposing increased funding for the Endowment. While maintaining the on-going programs aiding scholarly research, education, and cultural interpretation, the Endowment will use these increased funds to augment its support for: • research designed to increase our understanding of the traditions, cultures, and directions of countries in the Third World; • studies exploring the complex public and ethical issues created by an increasingly technological society; and • efforts to preserve the priceless documents and other materials that constitute the heritage of this Nation and of its regional and ethnic communities. To bring the fruits of this work to increasing numbers of the public at large, support will be provided for humanities activities in libraries, museums, and media, as well as for a variety of special activities tailored to the needs of groups that have traditionally not had ready access to opportunities for learning in the humanities. In pursuing these objectives, the Endowment will concentrate on using Federal funds to stimulate support from non-Federal sources, in order to enhance our tradition of private philanthropy and to expand the financial base of our cultural institutions. District of Columbia No longer is our Nation's Capital a convenient target for misdirected political attacks. My Administration has developed a partnership for progress with the District of Columbia. My Administration worked with the last Congress to pass a proposed Constitutional amendment granting full voting representation to the citizens of our Nation's Capital. The ratification process for this proposed amendment has begun and I urge the State legislatures which have not ratified the resolution to join those which have. We will continue our efforts this year in the ratification effort. Last year, progress was made toward strengthening the District's ability to meet its citizens' needs. With the Congress' help, we enacted legislation authorizing construction of the full METRO Mass Transit System and legislation funding the District's pension plan for municipal employees. In 1980, we will build on this record. My Administration will continue to work closely with the Congress and Mayor Barry to expand home rule for the District, including development of a sensible formula for determining the Federal payment to the District. I will continue working with Mayor Barry to make our Nation's Capital City a model for the rest of the Nation. Commission on the Holocaust Last year, I received and approved the recommendations of the President's Commission on the Holocaust, which I established to assess how our government might officially recognize, for the first time, the tragedy of the Holocaust. I will shortly be appointing a Council of distinguished Americans to develop ways to implement the Commission's proposals. The Council and my Administration will work closely with the Congress as we establish an appropriate memorial to the six million Jews and the millions of other victims of Nazism during World War II. IV. MAKING GOVERNMENT EFFECTIVE AND EFFICIENT One of my major commitments as a candidate was to make the Federal government more effective and efficient. Over the past three years, with Congress' help, I believe that enormous progress has been made toward that goal. Reforms thought to be impossible—such as Civil Service Reform—have been enacted. Regulatory burdens—such as airline regulation and government paperwork—have been reduced or eliminated. This coming year, I intend to work with the Congress to improve further the government's ability to serve the nation effectively. GOVERNMENT REORGANIZATION One of my highest priorities has been to improve the quality and efficiency of Federal programs through reorganization. Since I took office, we have submitted 13 reorganization initiatives to Congress, and Congress has approved all of them. These initiatives have strengthened the Federal government's capacity to deal effectively with such critical issues as energy, civil service, disaster relief, civil rights, international development assistance, education and trade. In 1979, Congress approved legislation that I sought to consolidate education programs in a new Cabinet department. The Department of Education will provide full-time leadership, improved management and direct accountability for its performance to me, to the Congress and to those involved in education at every level. This month I put into effect a major reorganization of the Federal government's trade functions approved by Congress last year. In conjunction with the Multilateral Trade Negotiations Agreements this reorganization will ensure that expanded trade opportunities for American business abroad are fully realized, and that my goal of trade expansion is given a higher priority by the Federal government. Organizational initiatives are also an important part of my energy program. We have consolidated enforcement functions for the Alaska Natural Gas Transportation System under a single Federal Inspector to ensure timely completion of the natural gas pipeline. To reduce our dependence on foreign oil, I have proposed the creation of an Energy Mobilization Board which will expedite Federal, State, and local decisions on proposed energy facilities. I am also urging the Congress to approve creation of an Energy Security Corporation to spur development of a domestic fuels industry. This year I will propose to Congress another significant reorganization: a plan which will strengthen the internal management and effectiveness of the Nuclear Regulatory Commission. Safety is our highest concern in regulating nuclear power development, and my reorganization plan will help improve the NRC's ability to ensure nuclear safety. GENERAL MANAGEMENT REFORM To simplify the government for our citizens and to reduce the burden of unnecessary requirements and regulations, we will pursue a number of initiatives this year. We have instituted a governmentwide management system to mandate the cost effectiveness of new regulations and the sunsetting of old ones. In 1980, we will continue to pursue further reform of regulations through legislation designed to make permanent a new framework for managing the regulatory process, and legislation to reduce paperwork and red tape. We will also pursue initiatives to simplify the eligibility requirements for human services programs and to improve the management and delivery of social services through increased use of private sector skills and talent. This reform will reduce the obstacles for needy citizens seeking assistance and improve our ability to remove fraud from the system. Last year, we implemented a program to manage the government's cash flow more efficiently. We have saved over $450 million a year, and we expect further annual savings of $600 million through more timely collection of cash payments, tighter control over disbursements and reductions in idle balances. We have vigorously implemented legislation passed last year to establish independent inspectors general in each department and coordinated their work through the Executive Group to Combat Fraud and Waste in Government. To spot areas where management reform is especially likely to increase efficiency, I have created a Management Improvement Council to diagnose such circumstances and prescribe a cure. We will continue to pursue vigorously our efforts to improve the structure and management of government programs. This is tough, unglamorous work, but it is essential to reduce the cost of government and to provide better service to the American people. CIVIL SERVICE AND COMPENSATION REFORM In March 1978 I said that civil service reform would be the centerpiece of my government reorganization efforts. The Congress supported it, and I am pleased to report it is working very well. In the first real test of the reform act, over 98% of the eligible top-level managers joined the Senior Executive Service, choosing the challenge and accountability demanded by this new corps of top executives. The Office of Personnel Management, the Merit Systems Protection Board, and the Federal Labor Relations Authority authorized by the Act have operated effectively in their first year. And the agencies throughout the government continue to make substantial progress in implementing the other important civil service reforms. For the first time in the hundred year history of the civil service system Federal employees can get and hold jobs, and be paid, on the basis of actual on-the-job performance—not merely length of service. Last year, I asked the Congress to take the next step in my Federal Employee Compensation Reform Message. I urged you to pass a pay reform bill which would modernize the Federal compensation system. This legislation is fair to Federal employees and to American taxpayers alike. Our white collar, blue collar and military compensation systems must be reformed in order to make certain that we neither overpay nor underpay Federal employees. It is a fair bill, and one which will help restore public confidence in the Federal service. I urge Congressional action on it. REGULATORY REFORM Over the past three years, we have put into place a comprehensive program to overhaul the Federal regulatory establishment, and eliminate unnecessary regulatory burdens. For 1980, I am determined to continue the progress of this effort; it is the most important part of my ongoing campaign to make our government more efficient and effective. Airline deregulation. The Airline Deregulation Act of 1978 has revolutionized air transportation. In the first year of its operation, the new environment of free competition created by the law produced a record number of flights and passengers, a much wider variety of service packages, and a savings of approximately $2.5 billion in the fares paid by the travelling public. Under the Act, regulatory controls will continue to be relaxed, until in 1985, the CAB itself will be completely phased out of existence. Trucking deregulation. The trucking industry is enmeshed in detailed regulations that control the routes truckers can drive and the goods they can carry. In addition, truckers are allowed to fix prices through industry rate bureaus. This regulatory system works to stifle competition, waste fuel, reduce service to small towns, and inflate prices. My appointees to the Interstate Commerce Commission have started modernizing the system, but we need legislation to provide comprehensive reform. I have submitted a bill to open up entry, lift restrictions on the goods truckers may haul and the routes they may use, promote vigorous price competition, reduce regulatory delays, and improve safety on the road. This bill is an important step in fighting inflation, and I look forward to passage of a sound bill by early summer. If appropriate legislation is not enacted, I would expect the ICC to proceed under its authority to implement reform initiatives. In addition, we need legislation to increase competition in the household moving industry. The Senate recently passed a constructive bill, and I urge the House to strengthen and pass it. Railroad deregulation. Railroads have traditionally been one of the most overregulated industries in America. As a result, management initiative, service, and competitive pricing have been stifled. Railroad plants and equipment have deteriorated, and the average railroad industry rate of return on investment is far too low. My Administration will continue to work to eliminate these wasteful conditions and the regulatory structure which helps because them. Our principal weapon in that effort is the railroad deregulation bill that I proposed last year. Enactment of significant railroad deregulation legislation this year is essential to restoring our railroad system to its former strength. Financial institutions regulation. Last year the combination of deposit rate ceilings and outmoded restrictions on the asset powers of thrift institutions produced severe inequities for the small saver, substantial savings outflows from many thrift institutions, and disruptions in the availability of mortgage credit. Contrary to its intended purpose, the Regulation Q system has contributed to the cyclical nature of the housing market and has destabilized the flow of mortgage funds. In a related area, changing competitive relationships, as well as innovations in the market, have increased inequities and produced a continuing decline in Federal Reserve membership. Now is the time to take the actions necessary to prepare for the financial environment of the 1980's. The Congress passed legislation in 1979 .which increased the ability of many Americans to obtain mortgage credit. In addition, the Congress made major progress toward enactment of the historic financial reform legislation I proposed last year. This year we will work closely with Congress to achieve final approval of our financial reform objectives: the phaseout of Regulation Q deposit rate ceilings, the broadening of the asset and liability process of thrift institutions, the approval of legislation to stem the decline in Federal Reserve membership, and the elimination of other unwarranted regulatory restraints. Prompt action is necessary to avert a significant decline in Federal Reserve membership and to assure a fair rate of return to the saver, a steadier flow of housing credit, and a stable financial environment for all classes of depository institutions. This spring I will submit to the Congress the Administration's findings on the McFadden Act and other geographic restraints on banking activity. Telecommunications deregulation. Technological advances, such as satellites, computers, and microwave relays, have made it practical to move much of the telecommunications industry from a regulated monopoly to a deregulated, competitive market. This shift is already underway and is benefitting individual customers as well as companies. Toward that end, I will continue to support strongly ongoing efforts in Congress to pass a bill that will encourage and protect competition, remove needless regulation, and maintain universal, reliable service. In addition, we need this legislation to smooth the transition to a competitive environment by protecting workers' rights, ensuring against any large increases for rural telephone rates and providing needed national security and emergency preparedness powers. Regulation Reform Act. In March of 1979, I sent to Congress the Regulation Reform Act. When enacted, this bill will assure that new and existing regulations will be rigorously scrutinized before they can be issued or retained, that wasteful delays are eliminated from the regulatory process, that key regulatory officials be selected purely on grounds of integrity and competence, and that the public will be assured meaningful opportunities to participate in regulatory decision-making. The reform steps I have taken administratively have already avoided billions of dollars in unnecessary regulatory costs, erased thousands of useless regulations from the books of OSHA and other agencies, and opened up the regulatory process across the Executive Branch. Enactment of my regulatory reform bill legislation is needed in this Congress, to strengthen these reforms, and extend their benefits to the independent regulatory commissions. Presidential oversight of regulation. Many regulatory programs are vital to the protection of the health, safety and welfare of our citizens. These we must manage effectively, while cutting out wasteful red tape, rigidity, and costs imposed on industry and the public, and enhancing opportunities for public participation in decision-making. From the outset of my Administration, I have actively used my authority as President to assure that Executive Branch regulatory agencies respect these goals, through executive orders, through oversight from the Office of Management and Budget, through a Regulatory Analysis Review Group to assure that regulatory costs are accurately evaluated, and through a Regulatory Council to eliminate duplication and overlap among individual agencies. We will pursue these efforts in 1980. Legislative Veto. While supporting the Regulation Reform Act, I will strongly oppose proposals that would undermine the ability of the President to manage the regulatory process, or would cripple the effectiveness of needed programs. In particular, my Administration will oppose proposals to subject individual agency rules to veto by one or two houses of Congress, to transfer regulatory policy decision-making authority to the Federal courts, and to create rigid statutory procedures for Presidential supervision of Executive Branch regulatory agencies. This last year has seen Congress besieged by assaults on various important regulatory statutes, especially the Federal Trade Commission Act, seeking groundless exemptions, crippling loopholes, and unprecedented Congressional interference with ongoing proceedings. I will resist strenuously all such efforts to confuse special interest pressure with regulatory reform. COMMUNICATIONS My highest priority in the communications area is passage of regulatory reform legislation covering the telecommunications industry. In addition, in 1980 we will continue our program to make the media more diverse and to ensure that the public gets the full benefit of the advances in communications technologies. Administration efforts include: • working to increase minority participation; already our program has helped produce a two-thirds increase in minority ownership of broadcast stations, and we will continue that progress; • working with the Federal Communications Commission to continue to eliminate needless paperwork and regulations; • pursuing plans to open up channels for as many as 1,000 new radio stations, to improve service to rural areas and provide more opportunities for minorities; • developing proposals to improve the way frequencies are assigned, including incentives for users to conserve the increasingly crowded radio spectrum; • encouraging the use of satellites, cable TV, and other technologies to deliver public services and to improve rural communications; • working with Congress and the FCC to protect First Amendment rights and the free flow of information, through such measures as my bill on police searches of newsrooms; and • continuing to support a strong, independent public broadcasting system and working to increase its coverage to reach all Americans. In addition, I will submit to the Senate, later this year, the Treaty and Protocol that resulted from the World Administrative Radio Conference concluded in Geneva in December. This conference, and the follow-up conferences that will be held in the next few years, will determine the utilization of the radio spectrum for the rest of the century. We prepared for this conference for over two years; our delegation has secured for the United States all allocations necessary for its civilian and military services while also responding to the legitimate needs of the Third World nations. SUNSET We will continue to work with Congress to pass sunset legislation. This legislation will overcome the inertia that let us Federal programs continue when they have outlived their purpose. It will ensure that Congress regularly reviews programs to decide whether they should be changed or eliminated. A comprehensive sunset bill, with a strong mechanism to force action when programs need change, is a vital building-block toward making the government more efficient. PAPERWORK REDUCTION In the past three years, my Administration has cut the amount of time Americans spend filling out Federal forms by 127 million hours—almost 15%. I recently issued an Executive Order to continue this progress by strengthening our management program. However, Congress is enacting new paperwork requirements in energy, environmental protection, and other areas, and we must have legislation to provide the strong administrative controls that will be needed to minimize these burdens. I urge Congress to pass a Paperwork Reduction Act to close the wide loopholes in Executive Branch oversight power and create new authority to halt duplicative data collection. In addition, I urge legislation be enacted to improve Federal statistical systems by strengthening central management and by encouraging agencies to share data, under new, tough confidentiality safeguards. LOBBY REFORM The American people have a right to know what significant influences affect their national legislature. The proliferation of well-financed, organizational lobbying activities during recent years has demonstrated the clear need for reform of the outdated and ineffective lobby disclosure law now in effect. This year my Administration will again work with Congress to pass a sound lobby law reform bill—one that respects the First Amendment rights of all Americans and minimizes paperwork burdens, yet allows meaningful disclosures. PUBLIC FINANCING OF CONGRESSIONAL ELECTIONS The impact of special interest contributions on congressional campaigns has grown dramatically in recent years. It is time to adopt public financing for congressional elections before it is too late. Such public financing will avoid even the appearance of undue special interest influence, and will allow worthy candidates without adequate funds to run for Congress. I urge the Congress to act on this legislation. JUDICIAL REFORM In my Civil Justice Reform Message last year, I made proposals to increase the efficiency, cut the cost, and enhance the integrity of our Federal court system. Last year, I signed the Federal Magistrates Act of 1979. Both the Senate and the House have passed the Dispute Resolution Act, which would develop simple and informal means of resolving citizen disputes, and I look forward to early final action on this legislation. The Federal Courts Improvement Act has passed the Senate, and I urge the House to act on it early in this session. I hope that the Congress will also pass the other bills recommended in my Message, such as the one which would curtail diversity jurisdiction. LEAA LEAA's potential to improve and strengthen State and local criminal justice programs has never been realized. Two years ago, I proposed far-reaching reforms in its structure and programs. Last month, Congress passed, and I signed, a bill which incorporated most of those reforms and which reauthorized LEAA for four more years. These reforms will preclude excessive expenditure of funds for equipment, enable better information and research about crime problems and permit funding only of innovative programs which have a high probability or record of proven success. During this year we will implement the new legislation in a way that makes certain the agency is efficiently carrying out its mission of providing meaningful law enforcement assistance. PATENT REFORM As part of the Industrial Innovation policy that I announced last year, we will be seeking to reform our patent laws in a way which will spur creativity and invention. The Administration will be working with Congress to develop a single policy to guide the Departments and Agencies dealing with patents resulting from federally-sponsored research. Such uniform treatment should encourage the commercial use of discoveries while protecting the taxpayers' investment. V. PROTECTING BASIC RIGHTS AND LIBERTIES Since taking office, I have worked to protect and enhance the basic fights and liberties guaranteed to Americans under the Constitution and our other laws. With your cooperation, we have made important progress in this area. This year, though, important work remains to be done if our goal of ensuring equality and basic freedoms for all Americans is to be realized. The dream of equal opportunity remains unfulfilled. I will do whatever I can to bring that dream closer to realization. EQUAL RIGHTS AMENDMENT I am Committed as strongly as possible to the ratification of the Equal Rights Amendment. Its ratification this year will be one of my highest priorities. As a result of our efforts in 1978, the Equal Rights Amendment's deadline for ratification was extended for three years. We have now two years and three States left. We cannot afford any delay in marshalling our resources and efforts to obtain the ratification of those three additional States. With your help, I believe we can succeed this year. 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 that ability. CIVIL RIGHTS The completion of the civil rights reorganization and significant operational improvements in the agencies that carry out equal employment opportunity functions have enabled the federal government to shift its focus for the first time to large-scale enforcement efforts. These have been buttressed by our vigorous and successful posture in several landmark affirmative action cases. At the same time, the reorganization mandate to eliminate unnecessary costs, paperwork and other burdens to businesses is being vigorously implemented by the Equal Employment Opportunity Commission. That will continue with increased resources this year. To make certain that civil rights activities are given the highest priority in the Agencies, we have created a civil rights unit in the Office of Management and Budget. This new unit will monitor civil rights enforcement and advise the Director of OMB on the funding and management resources needed for effective enforcement. 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, and I will continue to work with the Congress to enact legislation that will achieve this goal. FAIR HOUSING Enforcement of laws against housing discrimination has lagged in comparison with the employment area. Because there is no adequate enforcement mechanism, Title VIII of the Civil Rights Act, which prohibits discrimination in housing, has been largely ineffective. I have strongly supported legislation which seeks to provide the Department of Housing and Urban Development with the power to hold administrative hearings and to issue "cease and desist orders" in cases where Title VIII has been violated. We will continue to work with the Congress during 1980 to enact this long-overdue authority. Its enactment will continue to be my highest legislative priority in the civil rights area. INTELLIGENCE CHARTERS A legislative charter for the intelligence agencies and a charter for the FBI are long overdue. 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. Several months ago, I submitted to the Congress a legislative charter for the FBI which protects the rights of our citizens while preserving the Bureau's ability to meet its important responsibilities. In 1980, we will continue to work with the Congress toward enactment of this legislation. Events of the past year indicate the need for a strengthened and clearly defined role for our intelligence community. On the basis of the sound consultative work done already with Congress, I plan to submit a proposed charter early this year. HATCH ACT REFORM Federal employees who work in nonsensitive positions should have the right to participate in off-the-job political activities. My Administration will continue to support legislation which would reform the Hatch Act to accomplish this goal, and would prevent any on-the-job political abuse. CRIMINAL CODE The Federal criminal laws are often archaic, frequently contradictory and imprecise, and clearly in need of revision and codification. My Administration will continue to work with the Congress to develop a Federal criminal code which simplifies and clarifies our criminal laws, while maintaining our basic civil liberties and protections. LABOR LAW REFORM Our labor laws are vital to ensuring that a sound labor-management relationship exists in collective bargaining. Efforts to abuse those labor laws, especially by unduly slowing or blocking their implementation, have increased in recent years. As a result, a reform of our labor laws is badly needed to guarantee that their intended spirit is fully observed and enforced. I am again ready to work with the Congress to develop legislation which improves the fairness and effectiveness of our labor laws. HANDICAPPED During my Administration, we have made great strides toward ending discrimination against handicapped people through broadened employment opportunities, educational opportunities, and greater access to public facilities and services. Just after I came to office, the Department of Health, Education and Welfare issued the first regulations on Section 504 of the Rehabilitation Act. Since then, numerous other Federal agencies have issued final regulations, and we expect to have regulations from all the necessary agencies by the end of 1980. Last year I supported legislation which would prohibit discrimination against the handicapped in private employment and housing. I will continue to support that initiative this year and to clarify legislative and administrative uncertainty about provisions of the Acts affecting the rights or programs affecting handicapped individuals. While my Administration has worked to improve programs serving the handicapped, we must continue to push for removal of psychological and physical barriers against handicapped people in our society. We are actively organizing and preparing for next year's International Year of the Disabled. The International Year will enable this country—with the public and private sector working together-to demonstrate its commitment to the disabled and to teach or learn from other nations about ways to advance the quality of life of handicapped individuals. PRIVACY Changes in our society are threatening the rights to personal privacy. Government and private institutions collect increasing amounts of information about individuals. Many decisions that once were made face-to-face are now based on recorded data, and modern technology allows this data to be transferred throughout the country instantaneously. Much of this information must be collected and used to enforce the laws, provide financial services, and for other important services. However, these needs must be balanced against the right to privacy and against the harm that unfair uses of information can because. Last year, I announced the government's first comprehensive privacy program, building on legislation already passed to prevent improper use of wiretaps and improper access to personal bank records. This new program has five separate bills—establishing privacy safeguards for medical, research, bank, insurance, and credit records and providing special protections, modeled on the wiretap laws, for electronic funds transfer systems. In addition, I have proposed legislation limiting police searches of newsrooms to deal with the problems created by the Supreme Court's Stanford Daily decision. My privacy program includes non-legislative action as well. We have improved the handling of Federal records—we stopped the growth of personnel records and started cutting back, and we established rules to control computer matching of Federal files. I have called upon employers to establish voluntary privacy codes for the records concerning their employees and launched nationwide hearings to promote that effort. International guidelines are needed to protect the privacy of personal information transferred from one country to another, while avoiding disruption of needed information flows. We have spearheaded work in the Organization for Economic Cooperation and Development toward this end, and guidelines have been drafted for adoption this year. The key protections, however, need legislation. I urge Congress to act now on the five privacy bills I have submitted. VI. PROTECTING AND DEVELOPING OUR NATURAL RESOURCES Two of our Nation's greatest natural resources are our environment and our fertile agricultural capacity. Since I have been in office, I have worked with the Congress to preserve, protect and where appropriate, develop our natural resources. In the environmental areas, I have been concerned about the importance of preserving a clean environment, and have taken a number of major actions designed to foster such an environment. In the agricultural area, I have taken the steps needed to improve farm incomes and increase our agricultural production to record levels. With your help we can continue to make progress in both of these areas in 1980. ENVIRONMENT Balancing the need for resource development and conservation has been a major environmental theme of my Administration. I remain strongly convinced that this Nation can have economic and energy development and adequate environmental protection. As we open the decade of the 80's, all Americans can be proud of their natural and cultural heritage which continues to satisfy economic, recreational, and spiritual requirements. 1980 is the tenth anniversary of a decade of environmental awareness that began on Earth Day, 1970. During this past decade, monumental legislative achievements have occurred. These include: the National Environmental Policy Act, the Clean Air and Clean Water Acts, additions to our National Parks, Trails, and River Systems, and the Endangered Species Act. I was pleased to sign into law the reauthorization of the Endangered Species Act last year. During 1980 as we celebrate this tenth anniversary let us rededicate ourselves to the creation and maintenance of a safe and healthy environment, to the wise use and development of our natural resources, to the fair implementation of environmental statutes, to preserving unique wildlife resources, and to even greater achievements for improving the quality of life for all Americans. During the next year, my Administration will vigorously pursue the protection of Alaskan lands; the implementation of an effective water resources policy; a careful implementation of domestic energy production programs, with proper regard for environmental values; a review of wilderness potential on the public lands; creation of a hazardous waste management program; fisheries development and coastal management policies. ALASKA LANDS Passage of legislation which adequately resolves the allocation of Federal lands in Alaska continues to be my highest environmental priority. At stake is the fate of tens of millions of acres of beautiful land, outstanding and unique wildlife populations, native cultures, and the opportunity to ensure that future generations of Americans will be able to experience and benefit from these nationally significant resources. The proposals which I have supported in the 95th Congress, and again during the first session of this Congress, assure that Alaska's great national treasures can be preserved, while providing for increased domestic energy production and for the economic needs of all Alaskans. In addition to recommendations for designating National Parks, Wildlife Refuges, Wilderness Areas, National Forests, and Wild and Scenic Rivers on the Federal lands in Alaska, I have or will be proposing aggressive but environmentally sensitive oil and gas development programs in Alaska's outer continental shelf and National Petroleum Reserve. My Administration is also stepping up the transfer of 103 million acres of Federal land to the State of Alaska and 44 million acres to Alaskan natives so that both the State of Alaska and the Native Corporations can build their economic base. However, in order to maintain the proper balance between resource protection and development in Alaska, the Congress must now enact the comprehensive legislation which has been before that body for over two years. The 96th Congress will soon be asked to vote on what clearly amounts to the conservation decision of the century. The House of Representatives has already passed a strong conservation bill and the Senate will shortly take up debate on this issue. I urge that the Congress carry out its responsibility to enact legislation which truly protects and preserves our natural heritage in Alaska. HAZARDOUS WASTE/TOXIC SUBSTANCES One of the most important environmental and public health issues facing our Nation is the threat caused by the improper disposal of hazardous substances. Accidents like those at Love Canal and Valley of the Drums have highlighted the inadequacy of the existing laws and inability of governments at .all levels to respond quickly and efficiently to these dangerous incidents. In the coming years, there may be thousands of hazardous waste sites which will need attention, the cost of which could be enormous. Clearly an effective public policy is needed to deal with this situation. Last June, I submitted to Congress a comprehensive $1.6 billion legislative proposal that establishes a system to deal with releases from uncontrollable hazardous waste sites as well as spills of oil and hazardous substances. This system includes provisions for emergency government response, effective enforcement, liability and in some cases, economic compensation. The system also calls for a partnership with the States in cleaning up and containing this problem. This legislation is absolutely essential if we are to meet our responsibilities to the public and I urge the Congress to act on it expeditiously. NUCLEAR WASTE MANAGEMENT The problems related to the management, disposal and storage of nuclear wastes remains one of the most serious problems with nuclear power. My Administration has been deeply concerned with this problem for the past three years. An exhaustive study and review of this problem has been undertaken by the Administration over the past year. Based on the findings and recommendations of that study, I will soon be proposing to Congress comprehensive legislation that deals directly with this problem. My proposals, if enacted, will represent the biggest step forward in the area of nuclear waste management since the dawn of the nuclear age. I urge the Congress to take action in this area this year. RARE II In 1979, I submitted to Congress my recommendations on wilderness for the National Forests under the RARE II procedure. These proposals include 15.4 million acres of new wilderness—the most desirable areas within the vast review. Over 10 million acres are undergoing further study. In addition, I directed the Forest Service to release for multiple use management the 36 million acres of land that was designated for non-wilderness. I urge the Congress to approve my recommendations this year. WATER POLICY LEGISLATION Sound water management is vital to the economic and environmental health of our Nation. Administrative implementation of the comprehensive water policy initiatives which I announced in June of 1978 is nearing completion. We will continue to work with the Congress to pass legislation needed to improve further Federal water resources programs and to support the States in their primary responsibilities for water allocation and management. I am pleased that last fall the Senate authorized an expanded grant program to the States for water management and water conservation technical assistance, and I expect the House to soon pass this legislation. The cost sharing bill which I have proposed is critically needed to give the States a more effective voice in setting water project priorities in state and Federal water policy decisions. I believe the establishment of an independent review unit in the Water Resources Council is essential, and I urge the Congress to act quickly on the pending authorization. The independent review unit will provide an objective, impartial, technical analysis to the Administration and to the Congress, of water projects proposed for authorization or new-start construction funding. This information will enable the Administration and the Congress to make better informed decisions on where to invest the taxpayers' water resource dollars. It should be clear that my Administration supports sound water resources development, and has taken several steps to improve the quality of projects sent to Congress for authorization and funding. I am concerned that the water projects authorization bills now under consideration by Congress threaten to overturn the progress made in recent years. I urge the Congress to give this legislation the careful and thoughtful scrutiny required by our joint commitment to restraining Federal spending and ensuring a sound environment. FISHERIES DEVELOPMENT Last May, my Administration proposed a fisheries development policy that recognizes both the importance of the YOU.S. commercial fishing industry to the Nation's economy and that fish is an important food source. This policy includes a recognition of the potential for fisheries expansion within the Nation's 200-mile fisheries conservation zone, and the importance of the Federal government's creating a positive climate for fisheries development. In conjunction with this policy, my Administration has sent a legislative proposal on fisheries development to the Congress. It is time that the United States begin taking action to more fully utilize the fisheries resources of the 200-mile economic zone. I urge the Congress to join with me in this effort. Agriculture AGRICULTURAL PROGRESS While much work remains to be done, America's agriculture is by far the best in the world. Efforts made by my Administration, in cooperation with Congress, to secure economic stability for the farmer, have produced results. In 1979, we experienced another record year for farm production. Net farm income jumped to $32 billion in 1979, a $4 billion increase over 1978. Agricultural exports also reached new highs, rising 18% in 1979 to $32 billion. Despite the suspension of exports to the Soviet Union, we can expect a continued healthy export picture for our Nation's farmers. Last year the Secretary of Agriculture travelled around the country and conducted an extraordinarily detailed and creative dialogue with the Nation's farmers. He obtained invaluable suggestions on economic and social issues concerning farm life; as we prepare our farm program for this year and beyond, the advice of our Nation's farmers will clearly be reflected in the policies we develop with the Congress. SOVIET GRAIN SUSPENSION In response to the Soviet armed invasion of Afghanistan on Christmas Eve, I took several actions to demonstrate our Nation's resolve to resist such hostile acts of aggression against a sovereign, independent nation. One of the most important of these actions was the suspension of grain sales to the Soviet Union beyond the 13 million tons provided under our 1975 grains agreement. The Soviet Union had intended to purchase an estimated 25 million tons of YOU.S. wheat and feed grains. Thus, the suspension of sales above the 8 million ton agreement level is expected to result in the freeing of about 17 million tons. My decision to suspend these sales was a difficult one, but a necessary one. We could not continue to do business as usual with the Soviet Union while it is invading an independent, sovereign nation in an area of the world of strategic importance to the United States. I am fully committed to a policy of promoting international trade, and particularly the expanded export of YOU.S. agricultural products. I am proud of my Administration's record in this regard. Because of the aggressive efforts of American farmers and businessmen, working in cooperation with Federal representatives, and the provision of new authorities by Congress, we have set new export records in each of the past 3 years. Even with the Soviet suspension, we intend to set still another record in the coming year. In making my decisions on the suspension, I believed it would be unfair to ask the American farmer to bear a greater share of the burden and sacrifice than their fellow Americans were asked to bear. Farmers should not be penalized simply because they are part of an agricultural machine that is of growing strategic importance in the world. To protect American farmers from the price depressing effects of the grain suspension, I directed the Secretary of Agriculture to take several actions: • The Commodity Credit Corporation will assume the contractual obligations for grain previously committed for shipment to the Soviet Union. • The Department of Agriculture, acting through the Commodity Credit Corporation, will purchase wheat contracted for export to the Soviet Union for the purpose of forming an emergency international wheat reserve. In this connection, I will propose legislation authorizing release of this wheat for international aid purposes. • To encourage farmers to place additional grain in the farmer-held grain reserve, the Secretary of Agriculture has made several modifications in that important program. • The Commodity Credit Corporation will purchase corn at the local level to alleviate the congestion within the transportation system caused by the refusal of the International Longshoremen's Association to load grain up to the 8 million metric ton level. In combination, these actions are expected to isolate from the market an amount of grain equivalent to that not shipped to the Soviet Union, thereby avoiding a decline in grain prices. I am pleased to report that these actions are having the desired results and that American farmers are being protected from the effects of the suspension. If further actions are necessary to insure that American agriculture does not bear a disproportionately large share of the burden associated with this action, I will not hesitate to take them. CROP INSURANCE We now have an assortment of Federal loan, grant and insurance programs designed to protect farmers from the economic risks associated with natural disasters. We recognized early in my Administration that these programs were in serious need of reform. They are marked by many shortcomings: inconsistencies in eligibility, inequities in the level of benefits to producers of different crops, and inefficiencies in the use of taxpayer money. Recent evidence of abuse in the agricultural disaster loan programs provides further evidence of the need for this reform. I have sent the Congress a proposal to consolidate these authorities in the form of an all-risk comprehensive insurance program. Congress has made clear progress in devising an improved crop insurance program, but work remains to be done. I urge the Congress to finish its work on this legislation as soon as possible. INTERNATIONAL EMERGENCY WHEAT RESERVE The Congress has not yet acted on the proposal I made in the last Session to create an International Emergency Wheat Reserve. This reserve of up to 4 million tons of wheat would be used to assure recipient nations that we will meet our international food aid commitments. The suspension of further grain sales to the Soviet Union provides an appropriate opportunity to provide this authority, and thereby establish guidelines for the release of wheat now being acquired by the Commodity Credit Corporation. FOREIGN POLICY From the time I assumed office three 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, including the year old revolution in Iran and uncertainty about the future in many other 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 stability and to the flow of oil. As the unprecedented and overwhelming vote in the General Assembly demonstrated, countries across the world—and particularly the non-aligned—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 Western 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. —And 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. The central challenge for us today is to our steadfastness of purpose. We are no longer tempted by isolationism. But we must also learn to deal effectively with the contradiction 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 five basic goals for America in the world over the 1980's: —First, we will continue, as we have over the past three 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. —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. Continuing close cooperation between the Congress and the Executive Branch will be required to achieve these goals. My most immediate legislative priorities include: (1) Defense Department Authorization and Appropriations Bills (2) Special International Security Assistance, for Pakistan and other countries (3) Bilateral and Multilateral Foreign Assistance Bills, including Central America supplemental (4) The China Trade Agreement (5) Intelligence Charters (6) Refugee Legislation and Funding (7) Human Rights Conventions (8) And, when appropriate, the SALT II Treaty. 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 hostage, 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. As I stated one year ago in Atlanta: "This is still a world of danger, a world in which democracy and freedom are still challenged, a world in which peace must be re-won every day." 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 YOU.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 YOU.S.-Soviet relations have been a mixture of cooperation and competition. The Soviet attack on Afghanistan and the ruthless extermination of its 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 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. On January 4 I therefore announced a number of measures, including the reduction of grain sales and the curtailment of trade and technology transfer, designed to demonstrate our firm opposition to Soviet actions in Afghanistan and to underscore our belief that in the face of this blatant transgression of international law, it was impossible to conduct business as usual. I have also been in consultation with our allies and with countries in the region regarding additional multilateral measures that might be taken to register our disapproval and bolster security in Southwest Asia. I have been heartened by the support expressed for our position, and by the fact that such support has been tangible, as well as moral. The destruction of the independence of Afghanistan government and the occupation by the Soviet Union has altered the strategic situation in that part of the world in a very ominous fashion. It has brought the Soviet Union within striking distance of the Indian Ocean and even the Persian Gulf. It has 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 might well control an area of vital strategic and economic significance to the survival of Western Europe, the Far East, and ultimately the United States. It is clear that the entire subcontinent of Asia and specifically Pakistan is threatened. Therefore, I am asking Congress, as the first order of business, to pass an economic and military aid package designed to assist Pakistan defend itself. 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 1981 budget would increase funding authority for defense to more than $158 billion, a real growth of more than 5% over my request for Fiscal Year 1980. Therefore, requested outlays for defense during Fiscal Year 1981 will grow by more than 3% in real terms over the preceding year. 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: (a) 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; (b) 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; (c) It provides us the ability to come quickly to the aid of friends and allies around the globe; (d) 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 missile force. The first new Trident submarine has already been launched and will begin sea trials this year. The second Trident will be launched in the spring of 1980. The first of our new Trident missiles, with a range of more than 4,000 miles, have already begun operational patrols in Poseidon submarines. The new MX missile will enhance the survivability of our land-based intercontinental ballistic missile force. That is why I decided last spring to produce this missile and selected the basing mode best suited to enhance its capability. Further the MX will strengthen our capability to attack a wide variety of Soviet targets. Our new systems will enable YOU.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. 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%. We are accelerating the rate at which we can move combat aircraft to Europe to cope with any surprise attack, and adding to the number of shelters at European airbases to prevent our aircraft from being destroyed on the ground. 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 and production 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. In addition, responding to the Soviet military presence in Cuba and the proxy role of Cuba on behalf of the USSR, we have taken or are taking the following actions in support of the rapid deployment force: (1) We are substantially increasing our ability to monitor Cuban and Soviet/Cuban activities; (2) We have established a Caribbean Joint Task Force Headquarters which improves our ability to respond to events in the region; (3) We are increasing regional military exercises; and, (4) We are intensifying assistance to countries in the region that are threatened by Soviet or Cuban intervention. NAVAL FORCES Sea power 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. 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 I have also launched a major effort to establish a coherent and practical basis for all government mobilization planning. Begun last May, this is the first such effort conducted at Presidential level since World War II. It involves virtually every Federal agency, with the aim of improved efficiency and readiness. OUR INTELLIGENCE POSTURE Our national interests are critically dependent on a strong and effective intelligence capability. We will not shortchange 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 1980 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. It is imperative that we now move forward promptly within the context of effective Congressional oversight to provide America's intelligence community with Charters which can permit it to operate more effectively and within a national concern codified by law. 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 At]antic 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 At the outset of this Administration I emphasized the primacy of our At]antic relationship in this country's national security agenda. We have made important progress toward making the Atlantic Alliance still more effective in a changing security environment. We are meeting the Soviet challenge in a number of important ways: First, there is a recognition among our allies that mutual security is a responsibility to be shared by all. We are each committed to increase national defense expenditures by 3% per year. There remains much work to be done in strengthening NATO's conventional defense; the work proceeding under the Alliance's Long Term Defense Program will help achieve this objective. Last month, we and our NATO allies took an historic step in Alliance security policies with the decision to improve substantially our theater nuclear capabilities. The theater nuclear force modernization (TNF) program, which includes the deployment of improved Pershing ballistic missiles and of ground-launched cruise missiles in Europe, received the unanimous support of our allies. The accelerated deployment of Soviet SS-20 MIRVed missiles made this modernization step essential. TNF deployments will give the Alliance an important retaliatory option that will make clear to the Soviets that they cannot wage a nuclear war in Europe and expect that Soviet territory will remain unscathed. While we move forward with our necessary defense efforts in Europe, we are also proceeding with our efforts to improve European security through arms control. As an integral part of the NATO TNF decisions, the Alliance has made it clear that it is prepared to negotiate limitations on long-range theater nuclear missiles. On our part, our TNF modernization efforts will make possible a streamlining of our nuclear weapons stockpile in Europe, allowing us to withdraw 1,000 nuclear warheads over the next year. In the Mutual and Balanced Force Reduction talks, we and our allies have recently put forward new proposals that are designed to simplify the negotiations and improve the prospect for early progress in limiting conventional military forces in Europe. In a very real sense the accomplishments of the past year answered a critical question concerning NATO's future: can the Western Alliance, which has provided the foundation for one of the longest periods of peace and prosperity that Europe has ever enjoyed, still summon the essential cohesion, relevance, and resolve to deal with fundamental security issues likely to affect its member nations well into the next century? NATO's consensus in favor of modernizing and negotiating about its nuclear arsenal while continuing to improve conventional forces, dramatized Allied capacity to respond effectively to both the military and political threats posed by the Soviet Union. Relations with our allies and friends in Europe are taking on ever broader dimensions. Our security agenda remains central; we are addressing new concerns as well. I met with an unprecedented number of European statesmen in Washington during the year just past, including the leaders of Great Britain, West Germany, Austria, Norway, Finland, the Netherlands, Ireland, Sweden, and the European Community; in all of these meetings a common theme was the changing .realities of political and economic interdependence and, as we enter a new decade, the need to promote more equitable conditions of peaceful growth and stability throughout the world. This approach has achieved tangible form in a number of ways. For example, every West European government supports us as we have continued by every peaceful means to seek the release of American hostages held in Tehran in defiance of universal standards of international law and decency. We are consulting and cooperating closely in our responses to the Soviet Union's invasion and occupation of Afghanistan. In the NATO area itself, we moved together vigorously to meet the serious economic problems faced by Turkey and thereby strengthen a vital part of NATO's southern flank and we have signed a new base agreement with Turkey. This action, though indispensable in its own right, also supported our continuing efforts to promote a solution to the Cyprus problem and to bring about the reintegration of Greece within the military framework of the Atlantic Alliance, objectives which retain high priority this year. ASIA 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 even greater than our trade with Europe. We have pursued and maintained these interests on the basis of a stable balance of power in the region. Our partnership and alliance with Japan is central to our Asian policy. We are strengthening our new relationship with China. We have expanded our ties with the Association of South East Asian Nations (ASEAN) and its member governments. My trip to the Far East helped forge closer working relationships with Japan and Korea. ASIAN SECURITY The balance of power is fundamental to Asian security. We have maintained that balance through a strong United States military posture in the region, as well as close ties with our allies, Japan, Australia, New Zealand and Korea. Over the past year I have worked to stabilize the United States military presence in Asia by concluding an amended base agreement with the Philippines that will last until 1991. We have fostered the closest degree of security cooperation with Japan in the history of our two nations-exemplified by joint planning for the defense of Japan, increased Japanese contributions to United States base costs in Japan, and large-scale Japanese purchases of United States defense equipment. After examining in detail new intelligence estimates of North Korean military strength, I decided to maintain our troop strength in the Republic of Korea at its present level until at least 1981. The reaffirmation of our commitment to Korean security has been of great importance to the Koreans as they make necessary political adjustments in the wake of President Park's assassination. Response by nations in East Asia to the Soviet aggression in Afghanistan has been gratifying. Australia in particular deserves recognition for the forthright stand it has taken. Japan and the ASEAN nations have also been strongly supportive. CHINA Over the last year we have expanded our relationship with the People's Republic of China to ensure that where our interests coincide, our separate actions will be mutually reinforcing. To this end we have enhanced our consultative relationship. We have also sought to develop an enduring institutional framework in the economic, cultural, scientific, and trade areas. This process has been facilitated by the successful visits of Vice Premier Deng to the United States and Vice President Mondale to China; through the signing of over 15 commercial, scientific, and cultural agreements; through numerous Cabinet-level visits; and through a significant expansion of trade and the flow of people between our two countries. During Secretary of Defense Brown's recent trip to the People's Republic of China, wide-ranging talks were held on global and regional issues, arms control, technology transfer, and ways to sustain bilateral contacts. Although we may differ with the Chinese on some issues, our views coincide on many important issues, particularly with respect to the implications for the region of the Soviet invasion of Afghanistan. In 1980 I look forward to passage by Congress early in the year of the China Trade Agreement and of authorization of OPIC operations in China; we plan to conclude civil aviation, maritime, and textile agreements; and continue to expand our commercial, cultural, and scientific relations, particularly through ExImBank credits to the People's Republic of China. SOUTHEAST ASIA The countries comprising ASEAN are central to United States interests in Southeast Asia. Throughout the past year, our relations with ASEAN have continued to expand as our consultative arrangements were strengthened. The stability and prosperity of Southeast Asia have been severely challenged by Soviet-supported Vietnamese aggression in Cambodia. During this year we will continue to encourage a political settlement in Cambodia which will permit that nation to be governed by leaders of its own choice. We have taken all prudent steps possible to deter Vietnamese attacks on Thai territory by increasing our support to the Thais, and by direct warnings to Vietnam and the YOU.S.S.R. The other members of ASEAN have stood firmly behind Thailand, and this in great measure has helped to contain the conflict. We have been gratified by Thailand's courageous and humane acceptance of the Cambodian refugees. MIDDLE EAST—PERSIAN GULF—SOUTH ASIA Events in Iran and Afghanistan have dramatized for us the critical importance for American security and prosperity of the area running from the Middle East through the Persian Gulf to South Asia. This region provides two-thirds of the world's oil exports, supplying most of the energy needs of our allies in Europe and Japan. It has been a scene of almost constant conflict between nations, and of serious internal instability within many countries. And now one of its nations has been invaded by the Soviet Union. We are dealing with these multiple challenges in a number of ways. MIDDLE EAST First, it has been a key goal of my Administration since 1977 to promote an enduring resolution of the Arab-Israeli conflict-which is so essential to bringing stability and peace to the entire region. Following the Camp David Summit of August 1978, in March 1979, I helped bring about the signing of a peace treaty between Egypt and Israel—the first time in 30 years of Middle East conflict that peace had shined with such a bright and promising flame. At the historic signing ceremony at the White House, Prime Minister Begin and President Sadat repeated their Camp David pledge to work for full autonomy for the West Bank and Gaza. Since then Egypt and Israel have been working to complete this part of the Camp David framework and to provide an opportunity for the Palestinian people to participate in determining their future. I strongly support these efforts, and have pledged that we will be a full partner in the autonomy negotiations. We will continue to work vigorously for a comprehensive peace in the Middle East, building on the unprecedented achievements at Camp David. At the same time, I have reinforced America's commitment to Israel's security, and to the right of all nations in the area to live at peace with their neighbors, within secure and recognized frontiers. PERSIAN GULF In recent years as our own fuel imports have soared, the Persian Gulf has become vital to the United States as it has been to many of our friends and allies. Over the longer term, the world's dependence on Persian Gulf oil is likely to increase. The denial of these oil supplies—to us or to others—would threaten our security .and provoke an economic crisis greater than that of the Great Depression 50 years ago, with a fundamental change in the way we live. Twin threats to the flow of oil—from regional instability and now potentially from the Soviet Union—require that we firmly defend our vital interests when threatened. In the past year, we have begun to increase our capacity to project military power into the Persian Gulf region, and are engaged in explorations of increased use of military facilities in the area. We have increased our naval presence in the Indian Ocean. We have been working with countries in the region on shared security concerns. Our rapid deployment forces, as described earlier, could be used in support of friendly governments in the Gulf and Southwest Asian region, as well as in other areas. SOUTH ASIA The overwhelming challenge in this region will be dealing with the new situation posed by Soviet aggression in Afghanistan. We must help the regional states develop a capability to withstand Soviet pressures in a strengthened framework for cooperation in the region. We want to cooperate with all the states of the region in this regard—with India and Pakistan, with Sri Lanka, Bangladesh and Nepal. In this new situation, we are proposing to the Congress a military and economic assistance program to enable Pakistan to buttress its defenses. This is a matter of the most urgent concern, and I strongly urge the earliest possible approval by the House and Senate. We are also working closely with other friends of Pakistan to increase the resources available for Pakistan's development and security. We are also pursuing the possibility of gaining access to military facilities in the region in time of trouble. We are prepared to work closely with our friends in the region, on a cooperative basis, to do whatever is required to ensure that aggressors would bear heavy costs so that further aggression is deterred. A high priority for us in the region is to manage our nuclear concerns with India and Pakistan in ways that are compatible with our global and regional priorities. The changed security situation in South Asia arising from the Soviet invasion of Afghanistan calls for legislative action to allow renewed assistance to Pakistan. But this in no way diminishes our commitment to work to prevent nuclear weapons proliferation, in Pakistan or elsewhere. Steady growth of our economic assistance is also essential if the countries of South Asia are to achieve growth and true stability. AFRICA A peaceful transition to majority rule in Southern Africa continues to be a major goal of the United States, We gave our fullest support to the successful British drive to reach an agreement among all parties in Rhodesia. The process of implementation will not be easy, but the path is now open to a peaceful outcome. With our European allies, Canada and the African states directly concerned we also are making progress toward independence and majority rule for Namibia. The momentum resulting from successful resolution of the Rhodesian conflict should aid in these initiatives. Congressional support for the Executive Branch decision to maintain sanctions on Rhodesia until the parties reached agreement on a cease-fire and an impartial elections process had begun was instrumental in creating the conditions necessary for agreement. Now that the United States, European trading partners and the surrounding African states have lifted sanctions, the process of economic reconstruction in Rhodesia—soon to be Zimbabwe-can begin. With the creation of an independent Zimbabwe after many years of fighting, we will be prepared to cooperate in a coherent multi-donor development plan for the poor nations in the Southern Africa region. Our active support for self-determination and racial equality in Southern Africa has enabled the United States to develop a continuing and effective dialogue with governments throughout the continent. As Africa grows more important to us for economic, political and strategic reasons, we will be strengthening our ties of mutual interest with Africans. We will continue to participate in their first priority—economic development—and to help Africans resolve their political problems and maintain stability in their continent. Whether in the Horn or in other areas of the continent, we will also provide to friendly nations security assistance when needed for defense of their borders. NORTH AFRICA In 1979 the United States moved to help a long-standing friend by strengthening our arms supply relationship with Morocco. In assisting Morocco to deal with attacks inside its internationally recognized frontiers, we seek conditions of greater security and confidence in which a political settlement of the Western Sahara conflict can be effectively pursued. Though not itself a mediator, the United States in the months ahead will encourage the countries in the area to resolve their differences peacefully in order that the vast economic potential of North Africa can be exploited for the well-being of the people living there. LATIN AMERICA Since my inauguration, I have worked hard to forge a new, collaborative relationship with the nations of Latin America and the Caribbean—one resting on a firm commitment to human rights, democratization, economic development and non-intervention. The events of 1979—even the turbulence in Central America and the Caribbean—presented us with opportunities to move toward these goals. There was encouraging progress in the area of human rights and democratization in the Western Hemisphere this past year. The inauguration of a new democracy in Ecuador, and the strong effort by the Andean countries to preserve democracy in Bolivia were positive steps. During 1979, I met with the President of Mexico twice to discuss the opportunities and difficult issues before our two countries. We have taken worthwhile steps, including an agreement on natural gas and on trade. On October 1, Vice President Mondale and many leaders from Latin America traveled to Panama to celebrate the coming into force of the Panama Canal Treaties. The transition to a new relationship and a new structure to manage the Canal was smooth and effective because of the contributions and the mutual respect between Panamanians and Americans. The Vice President also traveled to Brazil and Venezuela. The Secretary of State met with leaders in Quito at the inauguration of the new democratic President of Ecuador and in LaPaz at the OAS General Assembly. These meetings have helped us to develop further the close consultative ties which are so important to a free and balanced community of nations in the hemisphere. Also, in 1979, the United States moved to a much closer economic and political relationship with the increasingly significant Andean Pact countries. A memorandum of understanding on economic relations was signed in Washington in November. Central America and the Caribbean region are undergoing a period of rapid social and political change. There is a threat that intervention by Cuba may thwart the desire of the people of the region for progress within a democratic framework and we have been working closely with the governments in the region to try to aid in the developmental process of the region and are prepared to assist those threatened by outside intervention. The Caribbean Group, which is coordinated by the World Bank and which we helped establish, has now become an important factor for development in the region, adding $260 million in concessionary resources to the region. We have increased our aid to the Caribbean, reprogrammed loans, and are seeking prompt Congressional action on a supplemental of $80 million for Nicaragua and Central America. My Science Advisor, Dr. Frank Press, led a large delegation of scientists and educators to Barbados, Peru, Venezuela and Brazil to forge new and fruitful ties between our countries in important areas of science and technology. 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 An essential lesson to be drawn from Iran is that there are compelling foreign policy, as well as domestic economic reasons for lessening our dependence on foreign oil. In response to a series of United States proposals, the industrial countries adopted in 1979 a cooperative energy strategy for the 1980's. Its main elements are collective restraint on oil imports; intensified efforts to conserve oil and boost production of conventional substitutes for oil; and collaborative research, development and commercialization of new fuel technologies. At the Tokyo Economic Summit in June, the heads of government of the seven major industrial democracies agreed that they must take responsibility for curbing oil demand. By the end of the year, 20 industrialized nations, members of the International Energy Association, had agreed not only to enforce equitably allocated ceilings on their oil imports, but to create a system for quickly adjusting the ceilings to changes in world oil supply. Completion of the detailed agreements to execute the global oil demand-allocation process is at the head of the international energy agenda for 1980. At the 1980 Economic Summit in Venice, I intend to propose further joint action to smooth the transition from oil to more abundant fuels and to slow the growth in oil prices. In support of the international oil strategy, the Administration and the United States coal industry are launching joint marketing efforts to make this country a major exporter of steam coal. With assurance of reliable United States coal supply at competitive prices, many of the electric power plants to be built in the 1980's and 1990's can be coal-fired rather than oilburning. Coal exports will help us pay for our declining but costly oil imports. A new source of natural gas supply for the United States—Mexico—was opened through the conclusion of government-to-government negotiations. Through close cooperation with our northern neighbor, Canada, the Administration cleared the way for expanding the flow of Canadian natural gas to the United States and for private development of the Alaskan gas pipeline across Canada to the lower 48 states. We continue to believe that power will play an essential role in meeting the energy needs of many nations, but with effective safeguards against the proliferation of nuclear weapons. INTERNATIONAL MONETARY POLICY We are moving forcefully to establish the fundamental economic conditions for a strong dollar. In 1979 the balance of payments was in approximate balance for the first time in three years, despite substantially higher oil import costs. Our anti-inflationary economic policies and strong energy program should provide a basis for further improvement. Of course the outcome depends in part also upon responsible pricing behavior by OPEC and other oil producers. We support the efforts under way to strengthen the international monetary system. I urge the Congress to enact promptly legislation permitting the United States to increase its quota in the International Monetary Fund (IMF) as part of the general expansion of Fund resources. We welcome the measures being taken by the IMF to improve its ability to promote sound economic and exchange rate policies in. all member countries. We also welcome the study of the possible establishment of a "substitution account" to strengthen the international monetary system by promoting the role of the Special Drawing Right as the principal reserve asset in the system. TRADE Under the direction of my Special Trade Representative, we brought to a successful conclusion the multilateral trade negotiations, the most ambitious set of negotiations to reduce barriers to international trade in a decade. The resulting "MTN" agreements, covering a broad spectrum of trade issues, were concluded and ratified by overwhelming majorities of the United States Congress. These binding commitments, signed by all the major trading nations, provide the framework for a new era in international trading relations with them and with the developing nations. This makes clear my resolve and that of the American people to resist the dangers of protectionism. The reorganization of the Federal government trade agencies which I directed will assure more effective and prompt governmental action to exploit the export opportunities afforded by the MTN. The plan, approved by Congress this fall, establishes a strong, authoritative voice in the Executive Office of the President to provide coherence and leadership to United States trade policy, negotiations, and the implementation of the MTN trade codes. The reorganization establishes the Office of the YOU.S. Trade Representative and strengthens the Commerce Department. SUGAR In 1979, Congress ratified 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. This agreement and other measures my Administration has taken already have helped to stabilize sugar prices and bring high domestic prices into line with those prevailing in the world marketplace. Producers and consumers alike will benefit from a more stable market for this essential commodity. We need prompt enactment of implementing legislation for this agreement. TIN At year's end, Congress approved stockpile disposal legislation which will permit the General Services Administration to sell 30,000 metric tons of tin from our strategic stockpile and contribute up to 5,000 metric tons to the International Tin Organization's (ITO) buffer stock. This fulfills a United States pledge made during the Conference on International Economic Cooperation and represents a major step forward in our relations with producing countries in the developing world. We will consult with other members of the ITO to ensure that our tin disposals do not disrupt markets and take into account the needs of both producers and consumers. COMMON FUND The United States joined members of the United Nations Conference on Trade and Development, both developed and developing nations, in negotiating an agreement on the framework of a Common Fund to help international commodity agreements stabilize the prices of raw materials. Negotiations are now underway on the final articles of agreement of the Fund. The United States also participated in successful negotiations on an international rubber agreement. ECONOMIC COOPERATION WITH DEVELOPING NATIONS Our relations with the developing nations are of central importance to the United States. The fabric of our relations with these countries has both political and economic dimensions, as we witnessed in recent weeks when nations of the Third World took the lead in condemning 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 engagement with the developing world that we have pursued over the past three years. The foreign assistance legislation which I will be submitting to you for FY 81 provides the authority and the funds to carry on a cooperative relationship with a large number of developing nations. Prompt Congressional action on this legislation is essential in order to 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. We will also be asking Congress to enable us to honor our international agreements for multilateral assistance by authorizing and appropriating funds for the International Financial Institutions. Finally, the Administration and the Congress agreed in 1979 on fundamental changes in the way the United States government is organized to conduct economic and technical relations with the developing nations. I submitted and the Congress approved a plan to consolidate in a small policy-coordination body, the International Development Cooperation Agency (IDCA), responsibility for direct United States development assistance, for guidance to United States representatives in multilateral development agencies, and for presenting our long-term development interests in Federal government policy bodies dealing with trade and other economic relations with developing nations. I also submitted, and the House approved in the 1979 session of Congress, a plan to establish the Institute for Scientific and Technological Cooperation (ISTC), a constituent element of the IDCA group of agencies. Once approved, the ISTC will carry out research as well as support research by foreign scientists on technological means of reducing poverty in developing nations. FOOD—THE WAR ON HUNGER One of the main economic problems facing developing countries is lagging food production. We must help these countries meet this problem—not only so that their peoples will be free from the threat of continuing hunger, but also so that their societies will be strong enough to resist external pressure. I have directed that United States bilateral and multilateral aid be geared increasingly to this goal, as recommended by our Hunger Commission, chaired by Sol Linowitz; we are urging other donor countries to join in more effective efforts to this end. 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 ultimate aim of our foreign policy must be to preserve freedom for ourselves and to expand freedom for others. This is a matter both of national principle and of national interest. For we believe that free and open societies are not only better able to meet the rising expectations of their people; they are also better able to accommodate often conflicting internal pressures before popular frustrations explode in violent and radical directions. We do not seek to impose our system or institutions on others. Rather, we seek to support, in practical and concrete ways, the efforts of other nations to build their own institutions in ways that will meet the irrepressible human drive for freedom and justice. Human rights policy commands the strong support of our citizens, and of the Congress. The world climate increasingly favors human rights progress. Despite new turbulence and conflict, the past year featured some encouraging positive developments. We cannot and should not claim credit for them. But it is clear that we are part of a growing movement. During 1979, we saw: —The further strengthening of democratic practices in Spain and Portugal, with free elections in both countries; —The disappearance of several of the world's most repressive regimes; —The freeing of political prisoners in Asia, Africa, and Latin America; —A return to democratic rule in several Latin American countries and widespread progress in reducing human rights violations in the region; —The growing strength of international human rights institutions. The Inter-American Court of Human Rights held its first meeting. Preparations began for another conference to review compliance with the Helsinki accords, to be held in Madrid this November. The OAU took long strides toward establishing a human rights commission for Africa. UN bodies became increasingly active in their human rights efforts. The United States is still not a party to the key human rights treaties that establish world standards and implementing machinery. In early 1978, I sent for Senate approval four such treaties, the American Convention on Human Rights, the Convention on Racial Discrimination, and the UN Covenants on Civil and Political Rights and on Economic and Social and Cultural Rights. Hearings were held in 1979. No single action by this country would do more to advance the because of human rights than Senate approval of these instruments and a fifth human rights treaty sent to Congress previously, the Genocide Convention. I urge the earliest possible Senate action. HUMANITARIAN AID The mass exodus of refugees from Vietnam reached a crescendo in summer 1979 with over 65,000 people a month fleeing repression and economic privation. Most fled by boat, and many were lost at sea. In July, at a special UN meeting on refugees, Vice President Mondale presented a major United States program to rescue and help support and resettle the new refugee population. I doubled to 14,000 a month the number of Indochinese refugees the United States, in accord with our finest traditions, would absorb over the year ahead. The Vietnamese invasion of Kampuchea in late 1978 gravely jeopardized the supply of food for the already decimated and brutalized Khmer people. In October, I announced that the United States would pay one-third of the costs of the international relief program mounted jointly by UNICEF and the International Committee of the Red Cross. Leaders of thirtyfive church and voluntary agencies, with White House encouragement, are engaged in their own large fund-raising program for refugees. In early November, Mrs. Carter visited refugees on the Thai-Cambodian border and reported back to me, the United States voluntary agencies, and the American people. In response, our efforts to avert a mass famine were accelerated. The obstacles remain daunting—continued warfare and aggression by Vietnam, non-distribution by the Phnom Penh authorities of much of the UNICEF-ICRC aid, movement of up to 900,000 hungry Khmer to and across the Thai border where they can be fed and helped. But Americans will continue their efforts both public and private to avert the famine that looms. New help for our efforts will come from the National Committee formed in early 1980 by leading citizens to help in mobilizing and supporting the sustained effort essential to achieve this humanitarian goal. As the year began, we are also considering new means of helping, through our contribution to the UN High Commissioner for Refugees and in other ways, the mounting Afghan refugee population in Pakistan and other desperate refugee situations such as Somalia. 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. I have asked the heads of the appropriate departments of the Executive Branch to play an active role in the Select Commission on Immigration and Refugee Policy to formulate a new approach to deal with sensitivity with the difficult subject of people arriving on our shores from Latin America. My meeting with Pope John Paul II during his historic and unprecedented visit to the United States helped raise the world's consciousness in connection with pressing problems of famine, homelessness, and human rights. Our talks spurred positive action in many of these areas, notably Indochina, and set the stage for further action in 1980. 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 I entered office committed to assert American leadership in stemming the proliferation of nuclear weapons—which could create fundamental new instabilities in critical regions of the world, and threaten the security of the United States. This should not and cannot be done unilaterally. The cooperation of other suppliers of nuclear technology and materials is needed. This issue must not become a North-South confrontation. We have been proceeding on a number of fronts: —We have been seeking to encourage nations to accede to the Non-Proliferation Treaty, or to accept full-scope international safeguards. The Nuclear Non-Proliferation Act calls for such safeguards in connection with United States nuclear exports. —The International Nuclear Fuel Cycle Evaluation (INFCE) has demonstrated that suppliers and recipients can work together. Its results will be published in a month. While differences remain, it will provide 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 has not yet been ratified by the United States Senate. Working together with the Congress, I remain committed to the vigorous pursuit of our non-proliferation objectives. LIMITATIONS ON STRATEGIC ARMS The most prominent of our nuclear arms control efforts is, of course, SALT II. The signing of the Treaty brought to an end painstaking negotiations carried out under three administrations of both parties. —SALT II is in our mutual interest; it is neither an American favor to the Soviet Union nor a Soviet favor to the United States. —Ratification of the SALT II Treaty would represent a major step forward in restraining the continued growth of Soviet strategic forces. Because SALT II reduces superpower competition in its most dangerous manifestation, this Treaty is the single most important bilateral accord of the decade: —SALT II will permit us better to maintain strategic equivalence in nuclear weapons and devote our defense increases more heavily to our highest priority needs for conventional force improvements; —Without it, the Soviets can add more power to their forces and better conceal from us what they are doing; —Without SALT II, and the beginning of SALT III, deeper cuts would take many more years to achieve; —Without SALT II, our efforts to control the proliferation of nuclear weapons will be more difficult. I believe that the Senate will ratify SALT II because the Treaty is, in its simplest terms, in the interest of our Nation's security. But I do not believe it advisable at this time to bring up the Treaty for consideration on the Senate floor. The Congress and the Executive Branch must first deal with the pressing matters arising from the Soviet invasion of Afghanistan. CONCLUSION As we enter the decade of the 1980's, we face challenges both at home and abroad which will test our qualities as a people—our toughness and willingness to sacrifice for larger goals, our courage and our vision. For this Nation to remain secure, for this country to prosper, we must rise above narrow interests. The dangers of disunity are self-evident in a world of major power confrontation. The rewards of a new national consensus and sense of purpose are equally clear. 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. JIMMY CARTER The White House, January 21, 1980.
to the congress of the united states my state of the union address will be devoted to a discussion of the most important challenges facing our country as we enter the 1980 over the coming year those challenges will receive my highest priority and greatest efforts however there will also be many other significant areas which will receive my personal commitment as well as that of my administration during the 2nd session of the 96th congress it is important that congress along with the public be aware of these other vital areas of concern as they listen to my state of the union address in that way the context of the address and my administration full message for 1980 can best be understood for that reason i am sending this state of the union message to the congress today several days before my state of the union address congress during the last three years my administration has developed a very cooperative and productive record with congress landmark legislation has been enacted major domestic and international problems have been addressed directly and resolved and a spirit of mutual trust and respect has been restored to executive legislative relations indeed in no other period in our recent past has there been a comparable record of progress and achievement for the american people but much more remains to be done we can not afford to rest on our record we can not fail to complete the agenda begun in the 1970 we can not ignore the new challenges of the 1980 by continuing to work together my administration and the congress can meet these goals our cooperative efforts can help to ensure stable prices and economic growth a return to energy security an efficient responsive government a strong unsurpassed defense capability and world peace the program that i have placed before the congress since 1977 combined with the few new initiatives i will be placing before the congress this year will enable us to reach these goals our task in this session is to complete the work on that program i have no doubt that we can do it there is no time to waste record of progress when i took office in 1977 our nation faced a number of serious domestic and international problems the economy had still not recovered from the most serious recession since world war ii unemployment was near 8 and almost 8 million american workers were unemployed 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 extremely 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 continuously shrinking defense budget the strength of the nato alliance was at a war ii low tensions between israel and egypt threatened another middle east war and america resolve to oppose international aggression and human rights violations was under serious question over the past 36 months clear progress has been made in solving the challenges we found in january of 1977 the unemployment rate at the end of last year of representing a 25 decrease in three years 9 million jobs have been created and more americans 98 million are at work than at any time in our history major parts of a comprehensive energy program have been enacted a department of energy has been established to administer the program and congress is on the verge of enacting the remaining major parts of the energy program confidence in the government integrity has been restored and respect for the government 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 13 reorganization initiatives have been proposed to the congress approved and implemented two new cabinet departments been created to consolidate and streamline the government handling of energy and education problems inspectors general have been placed in each cabinet department to combat fraud waste and other abuses budgeting practices have been instituted throughout the federal government cash management reforms have saved hundreds of millions of dollars the process of issuing regulations has been reformed to eliminate unneeded and incomprehensible regulations procedures have been established to assure citizen participation in government and the airline industry has been deregulated at enormous savings to the consumer critical social problems many long ignored by the federal government have been addressed directly and boldly an urban policy was developed and implemented reversing the decline in our urban areas the food stamp program has been expanded and the purchase requirement eliminated the social security system was refinanced to put it on a sound financial basis the full employment act was enacted federal assistance for education was expanded by 75 the minimum wage was increased to levels needed to ease the effects of inflation affirmative action has been pursued 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 decline in defense spending has been reversed defense spending has increased at a real rate of over 3 in 1979 and i am proposing a real increase in the defense spending level of more than 20 over the next 5 years the nato alliance has been revitalized and strengthened through substantially increased resources new deterrent weapons and improved coordination increased emphasis has also been given to conventional force capabilities to meet crises in other areas of the world egypt and israel have ended more than 30 years of war through a peace treaty that also established a framework for comprehensive peace in the middle east the commitment of our nation to pursue human rights throughout the world in nations which are friendly and those which are not has been made clear to all our resolve to oppose aggression such as the illegal invasion of the soviet union into afghanistan has been supported by tough action legislative priorities in the coming legislative session the last in this presidential term i am deeply committed to finishing the agenda that i have placed before the congress that agenda has been comprehensive and demanding but it has also been absolutely essential for our nation i do not plan to add significantly to the agenda this year because of the importance of enacting the proposals already before the congress and the relatively short congressional session facing us i will be limiting my major new proposals to a critical few youth employment general revenue sharing utility oil use reduction nuclear waste management and nuclear regulatory commission re organization standby gasoline rationing plan and initiatives implementing my response to the soviet invasion of afghanistan i am convinced that these new initiatives along with the major proposals i previously made to the congress can be enacted this year if we have a dedicated effort on the part of the administration and the congress i pledge such an effort on my part and that of my administration as in the previous three years i will be working with you toward the basic goals of ensuring our economic strength creating energy security for our nation enhancing basic human and social needs making our government more efficient and effective protecting and enhancing our rights and liberties preserving and developing our natural resources building america military strength working to resolve international disputes through peaceful means striving to resolve pressing international economic problems continuing to support the building of democratic institutions and protecting human rights and preventing the spread and further development of nuclear weapons my highest legislative priorities in each of these areas this year will be ensuring economic strength the fy 1981 is a responsible restrained budget whose enactment will help control federal spending significantly reduce the federal deficit and aid in our fight against inflation hospital cost long overdue legislation is a major weapon in our fight against inflation it will save consumers more billions of dollars and is the single most important bill before the congress youth education training and employment new initiative which is designed to educate and train youth to secure and hold meaningful jobs will provide enhanced opportunities for disadvantaged youth as well as improve the productivity of our work force creating energy security for our nation windfall profits size of this important energy and tax measure has been agreed to by the conferees but it is imperative that final agreement on a tax reflecting sound energy policy occur at the outset of this session and that congress act promptly on that agreement energy mobilization is also essential that this vital measure in the effort to eliminate unnecessary red tape in the construction of needed energy facilities be agreed to promptly by the conferees and the congress without substantive waivers of law energy security conferees and the congress also need to act expeditiously on this legislation this bill is critical to our nation beginning a serious massive program to develop alternative energy fuels so that our dependence on foreign oil can be severely reduced it is necessary to remove this critical national effort from the constraints which can bind government agencies this legislation contains as well vital energy conservation and gasohol provisions they are needed if we are to move forward in our national efforts in these areas utility oil use new initiative will aid in the effort to reduce our reliance on oil by requiring our nation utilities to substantially convert from oil to or other energy facilities by our nation utilities over a defined timetable this bill is a key tool in our effort to increase the use of coal our most abundant natural fuel source standby gasoline rationing the legislation enacted last year i will propose to the congress a standby gasoline rationing plan its prompt approval will be required if we are to be prepared for a significant energy supply interruption enhancing basic human and social needs national health time for improving the health care provided to our citizens is long overdue and i am convinced that the health plan i proposed last year provides a realistic affordable and beneficial way of providing our citizens with the health care they need and deserve it will provide millions of americans with health coverage for the first time improved medicare coverage for the elderly and protect every american against the disastrous costs of extended illness our national health effort also needs prompt enactment of two other important health assurance program which will provide needed health care for disadvantaged children and mental health systems act which is needed to reform our mental health programs welfare nation welfare system remains a disgrace to both the recipient and the taxpayers it encourages family instability and encourages waste it is a of differing provisions from the house has approved a sound welfare reform proposal i call upon the senate to act rapidly on this issue so that welfare reform can become a reality in this session general revenue will propose a reauthorization of this important program to our state and local governments in order to continue providing them with the funds that they depend upon to meet essential social and operating needs this program is an essential element of the partnership i have forged with state and local governments and is critical to the continued economic health of our states cities and counties countercyclical revenue will again work with the congress to provide the aid needed to help our most financially pressed local areas the senate has already acted and i urge prompt house passage early in the session energy am committed to seeking authority to continue the assistance program enacted at my request last year to give the poor protection against rising energy costs economic legislation will reauthorize and improve the government ability to provide economic development assistance it is a key ingredient in implementing both my urban and rural policy and i urge prompt action on it by the conference making our government more efficient and effective regulatory will continue to pursue efforts to eliminate unnecessary regulatory burdens and will concentrate on seeking approval this year of my regulatory process reform bill my trucking and rail deregulation proposals my banking reform measures and passage of sunset legislation and communications reform measures progress has been made on each of these during the first session final passage should come before this session ends nuclear regulatory commission i stated in responding to the kemeny commission report i will propose a reorganization of the nuclear regulatory commission in order to improve its management and its emergency operating capabilities this is an essential step to the improvement of safety in the nuclear industry protecting and enhancing our rights and liberties equal rights the congress has passed the equal amendment and the possibility for ratification now lies with the state legislatures it is essential that the members of congress help with their state legislatures toward that end we will be working with members from states which have not yet been ratified we can not stand tall as a nation seeking to enhance human rights at home so long as we deny it to american women here at home fair will continue to press for enactment of this important civil rights initiative it will enable the government to enforce our fair housing laws effectively and promptly it is the most critical civil rights legislation before the congress in years the promise of equal housing opportunity has been far too long an empty promise this bill will help make that promise a reality intelligence have already proposed a legislative charter for the fbi i will soon be proposing a legislative charter for the intelligence community these charters will protect our citizens rights while enabling the agencies to meet their responsibilities preserving and developing our natural resources alaska highest environmental priority in this congress continues to be enactment of legislation that will preserve and protect alaska lands i urge the senate to follow the house lead in this area oil and hazardous wastes program is needed to mitigate the effects of oil hazardous substance spills and releases from uncontrolled hazardous waste dumps which is a growing national problem nuclear waste will propose a series of legislative and administrative initiatives to implement our nation first comprehensive nuclear waste program building america military strength defense department authorizations and will be proposing a defense budget containing a real growth in outlays it is essential that the congress support an increase of that amount if we are to strengthen our defense capabilities working to resolve international disputes refugee legislation and legislation is necessary to improve our refugee program and to provide needed domestic assistance to refugees prompt house action would assure that we have a sound framework within which to accommodate the increasing flow of refugees striving to resolve international economic problems bilateral and multilateral foreign will be proposing foreign assistance legislation which provides the authority needed to carry forward a cooperative relationship with a large number of developing nations prompt congressional action is essential china trade will be seeking early approval by the congress of the trade agreement reached with china the agreement represents a major step forward in the process toward improved economic relations with china continuing to support the building of democratic institutions and protecting human rights special international security assistance for am sending to congress a military and economic assistance program to enable pakistan to strengthen its defenses prompt enactment will be one of my highest legislative priorities human rights will continue to press the senate to ratify five key human rights american convention on human rights the convention on racial discrimination the un covenants on civil and political rights and on economic and social and cultural rights and the genocide convention preventing the spread and further development of nuclear weapons salt ii i firmly believe that salt ii is in our nation security interest and that it will add significantly to the control of nuclear weapons but because of the soviet invasion of afghanistan i do not believe it is advisable to have the senate consider the treaty now i ensuring economic strength my economic program since i took office has been designed to achieve several goals and continue economic growth unemployment and inflation over the past three years considerable progress has been made in each of these areas economy has recovered from its deepest recession since world war ii and we have had a sustained economic recovery during the last three years has been reduced by 25 and employment is at its highest level in history has increased to unacceptable levels in large part because of opec price increases but a program has now been put in place which will moderate inflation in an equitable and effective way in 1980 we will continue the steady economic policies which have worked to date we can only succeed in making our economy strong however if we have congress cooperation i am confident that we can work together successfully this year to achieve our economic goals inflation inflation continues to be our most serious economic problem restraining inflation remains my highest domestic priority inflation at the current unacceptably high levels is the direct result of economic problems that have been building virtually without letup for over a decade there are no easy answers or quick solutions to inflation it can not be eliminated overnight its roots in our economy are too deep its causes are too pervasive and complex we know we can not spend our way out of this problem but there is a gradual reduction in the inflation rate for an easing of the economic pressures causing inflation the hope lies in a program of public and private restraint in the and a program to attack the structural causes of inflation over the this is the policy i have pursued and will continue to pursue last year was an especially difficult time for policies opec increased its prices by more than 80 and thus added more than three points to the inflation rate if energy price increases are excluded inflation last year would have been nearly three percentage points lower the biggest challenge to policy is to keep energy price increases from doing permanent damage to prevent a dangerous acceleration of the wageprice spiral my program has been successful in accomplishing this inflation will slow this year in 1981 it should be even lower this progress is the result of our persistence in the battle against inflation on many fronts budget restraint the budget deficit for fy 1979 was lowered to billion more than 50 below the fy 1976 level regulatory reform the flood of new costly government regulations was slowed as our procedures to ensure that we achieve our regulatory goals in the most manner took hold guidelines the guideline standards were followed by the vast majority of unions which negotiated contracts and by nearly every major corporation in the country energy the energy legislation put into place over the past two years began to reduce our dependence on foreign oil and our consumption of such important energy fuels as gasoline thereby reducing the ability of oil producing nations to disrupt our economy productivity we began to introduce policies to increase industrial innovation and thereby productivity the decline in productivity growth must be reversed if we are to improve our real living standards over the long term in 1980 with the congress cooperation we will continue our aggressive fight against inflation on each of these major fronts budget restraint the deficit for the fy 1981 budget will be less than half of the fy 1980 budget deficit and will represent a 75 reduction from the deficit i inherited regulatory reform we will be pursuing deregulation legislation for the trucking rail banking and communications industries as well as regulatory management reform legislation these bills will enable us to further eliminate unnecessary regulatory burdens labor accord the pay advisory and price advisory committees established as a result of last year historic accord with organized labor will enable us to better implement and coordinate with both labor and business the private restraint necessary as part of our efforts the accord signals a willingness of labor to be a full partner in our fight against inflation energy we expect to enact major energy windfall profits tax the energy mobilization board and the energy security in this session this legislation when combined with the voluntary and mandatory energy conservation measures that will take an even stronger hold this year should enable us to further reduce our dependence on foreign oil productivity we will be implementing our industrial innovation program and further expanding our commitment in the budget to research and development council on wage and price stability the council on wage and price stability has played a vital role in our efforts the council and its staff have lead responsibility within the executive branch for implementing the voluntary wage and price monitoring program without the council continuing role the effort could not begin to assess whether the private sector is cooperating with our standards it is therefore essential that the council along with its staff operation be reauthorized early this year the reauthorization should not contain amendments that interrupt or restrain the important and essential work of the council or its staff the 1981 budget the budget i will send to the congress for fy 1981 will meet this nation critical needs and it will continue the sound budgetary policies that my administration has pursued throughout my term in office no single year budget can accurately portray the philosophy of an administration however there is a clear pattern in the budgets i have in spending coupled with careful targeting of resources to areas of greatest need my 1981 budget continues this pattern by lowering the deficit roughly 50 billion below what it was when i ran for office at the same time i will recommend increases for programs of critical national concern last year my budget was austere i proposed eliminating some programs and reducing spending for others and these tough decisions have proven correct and have provided the country with clear benefits i am pleased that the congress approved my budget in virtually the form i proposed as a result of our actions the rate of federal spending growth has been slowed just as importantly the widespread expectation that the federal budget would continue its upward spiral unchecked has been proven false we have moved on to the path necessary for achieving a balanced budget in the very near future and we have helped the fight against inflation the 1981 budget will continue my policy of restraint real growth in spending will be close to zero the deficit will be cut by more than half from last year the deficit as a percent of the budget and of gnp will be at the second lowest point in this decade we will have the smallest deficit in seven years and if the economy were to continue to grow at a rate which held the unemployment rate at the current level this budget would be in surplus at the same time i am proposing some vital spending increases in the 1981 budge most of these increases will be in uncontrollable programs those in which increases are automatically required by existing law there will also be discretionary increases in part to strengthen our defense forces and enhance our crucial investments in energy production and conservation in addition i will propose a major new initiative to reduce youth unemployment and state and local governments will receive continued fiscal support from the general revenue sharing extension i will propose developing the budget this year has been in several respects more difficult than in previous years international turmoil threatens our vital interests energy problems dampen the economy and alter our domestic priorities and inflation erodes basic programs all adding new pressures for federal spending but i am confident that this budget responds with needed our nation most pressing needs and positions us for responsible and effective government in the 1980 fiscal policy as president i have been concerned about the tax burden on our citizens and have as a result worked with the congress to enact two major tax cuts in 1977 i proposed and congress passed an 8 billion individual tax cut as part of the economic stimulus package in 1978 i proposed and congress passed a 21 billion individual and business tax cut this year those two cuts will reduce americans tax burden by 31 billion i recognize that there is interest in another tax cut this year but my 1981 budget proposes no tax cuts as long as inflation continues and there is no sign of a recession our top budgetary priority must be reduction of the deficit over the long run continued tight control over budget expenditures will hold down the share of federal spending in gnp inflation on the other hand is raising the percentage of national income collected in taxes over time because of these two developments tax reductions will be possible while still maintaining the fiscal restraint needed to control inflation however the timing and structure of any tax reductions is of critical importance and must be dictated by our economic circumstances the urgency of the fight requires that we defer such tax reductions at this time tax reductions put into effect prematurely and under the wrong economic conditions could make inflation worse by overstimulating the economy inflation is still running at unacceptably high levels virtually all economic forecasters predict the onset of a mild recession and my administration estimates of budget receipts and expenditures in the fy 1981 budget assume a recession however none of the current economic statistics yet show any overall economic decline in recent months the economy has displayed much more strength than earlier forecasts had predicted forecasts of impending recession may therefore prove to be as wrong as previous ones employment has held up part due to unsatisfactory productivity performance to enact tax cuts now would run a serious risk of adding inflationary demand pressures to an economy which continues to grow more strongly than predicted by the forecasts with the present high inflation we can not afford that risk when tax reductions are timely they should be designed insofar as possible in a way that achieves multiple only reducing the tax burden and stimulating growth but raising investment and productivity and reducing inflation as well in particular a significant part of any tax reduction should be directed to the provision of incentives for increased investment to improve productivity expand capacity and adjust to higher energy prices serious consideration should be given in the case of tax cuts for individuals to lowering social security payroll taxes since half of such reductions would go towards lowering business costs and prices the necessities of the inflation fight require that we be very cautious about when taxes are reduced and how it is done but they do not require that we ignore changes in economic conditions should the economic situation and prospects sharply worsen i will consider recommendations to deal with the situation under those circumstances tax cuts and other measures could be taken to improve the prospects for employment and growth to reduce business costs and to assist those most severely damaged by recession without threatening to set off inflationary demand pressures however the current economic situation does not warrant such measures and it would be inappropriate to propose them at this time employment my administration working closely with congress has made significant progress in reducing the serious unemployment problems that existed three years ago the december unemployment rate of represents a 25 reduction from the december 1976 rate over million more people have jobs than before the beginning of the administration total employment has reached an high of 98 million in december nonwhite employment has increased by million persons or adult female employment has increased by 5 million persons employment of black teenagers which had actually decreased during the period has increased by more than 15 since i took office although unemployment rates for all youth especially minority youth are still too high progress has been made we will continue to make progress in the 1980 as a result of the framework which has already been established and which will be strengthened this year the comprehensive employment and training act ceta was reauthorized in 1978 for four years the full employment act became law after many years of effort the private sector initiatives program a new partnership between the government and the private sector to assist the most disadvantaged unemployed is being successfully implemented a targeted jobs tax credit has been enacted to provide employers with the economic incentives needed to increase their hiring of unemployed youth and others who historically have difficulty finding jobs a massive effort to reduce the problems causing excessive youth unemployment rates is being strengthened and revitalized this year with a new 2 billion youth education training and employment program this year we will work aggressively to make certain that this framework continues to be successfully implemented even that effort may not be sufficient if economic forecasts are accurate to keep the unemployment rate from rising we will be monitoring the economy closely if unemployment should dramatically increase i will be prepared to consider actions to counter that increase consistent with our overriding concern about accelerating inflation at this time though when unemployment is at its lowest level in years it would be premature and unwise to propose measures that might be helpful in a time of high unemployment youth employment the fact that we have had persistently high unemployment among poor and minority youth for three decades demonstrates clearly the inadequacies of our system for teaching training and helping young people to find and keep decent jobs the economic challenges of the 1980 will require the energy and commitment of the entire american work force we can not afford to waste anyone talents if we are to become the society of our ideals we must provide economic opportunity for all my administration is committed to a renewed national effort to remove any unnecessary obstacles to a productive life for every american over the past three years we have developed a solid record we have increased resources for youth employment and training programs from to over 4 billion we have conducted the largest experimental youth program effort ever attempted we have reduced overall youth unemployment rates by 15 but this is not good enough youth unemployment especially for the poor and minorities is still unacceptably high based on the experience we have gained over the past three years and on the advice of the thousands of americans who helped the vice president task force on youth employment over the last nine months my administration has devised a new approach which i announced two weeks ago under my program the most significant new domestic initiative i will be sending to congress this year the federal government will be making its most comprehensive effort ever to eradicate the causes of excessive and harmful youth unemployment by 1982 this new program will have increased federal resources committed to reducing youth unemployment by 2 billion to a total of 6 billion the program will have two key components for in school youth we will have a major effort through the department of education to teach basic skills to youth in junior and senior high schools located in communities while providing work experience and training after school hours for disadvantaged youth we will provide through the department of labor redesigned and expanded work experience and training programs as well as basic skills programs managed by the department of education the department of education basic education and skill training program when fully implemented will provide basic education and employment skills to approximately 1 million junior and senior high school students in about of the poorest urban and rural school districts around the country the new program will emphasize skills for youngsters including help for students with limited ability in english planning with the active involvement of teachers parents employers and the community the link between work and as a way to motivate students to stay in school and major role for vocational education in preparing young people for work the department of labor new youth employment program when fully implemented will provide education work experience training labor market information and other services to more than young people in each year the new resources when added to current programs will serve over million to olds each year the program will emphasize training and work experience opportunities for older and youth performance standards for both participants and program operators incentives to encourage greater cooperation between ceta sponsors local employers and school officials and of three of the existing ceta youth programs and closer coordination with the summer employment program to simplify local administration and reduce paperwork we have learned from the 1960 and the 1970 we know we must concentrate on administration and management we know that we must have tough performance standards not merely allocation formulas we know that the partnership between government and all elements of the private sector must be made a reality and that focusing on basic skills now is the key to job success in the future we also know that the hope our young people have for their lives in this great country is our most precious resource we must keep that hope alive we will be working closely and intensively with the congress to enact and carry out this youth employment program as soon as possible trade this past year was one of unmatched and historic achievement for a vital component of the and trade in 1979 nearly 3 million jobs in our manufacturing industries or one out of every seven jobs in manufacturing depended upon our export performance in overseas markets our exports were a key contributor to the growth of the economy in 1979 exports of agricultural and industrial goods grew by an unparalleled 35 billion reaching a level of 180 billion this represented an increase of 25 over exports in 1978 this record increase in exports coupled with a slower rate of growth of imports resulted in substantial improvements of 5 billion in our balance of trade furthermore a rapid growth of service exports in 1979 led to a 13 billion improvement in the current account bringing that account from a deficit in 1978 to near balance in 1979 i expect that in 1980 our exports will continue to strengthen and that if we can continue to further conserve and limit imports of oil we will further improve our trade balance position and that of the dollar the future for american exports is bright and will remain so despite the necessity of suspending certain exports to the soviet union this administration has accomplished several goals in the last year in assuring that there will continue to be greater exports and therefore job possibilities for workers and farmers to improve the condition of access of exports to foreign markets i signed into force in july of last year a new trade act which reflected two years of hard bargaining in the recently concluded round of multilateral trade negotiations these negotiations which included all major developed and lesser developed countries resulted in agreements to strengthen the rules of conduct of international trade and open new markets to exports these negotiations were of historic importance in their scope and accomplishment and their success is attributable to close cooperation that existed during and after the negotiations between the congress the private sector and the administration our negotiating success now challenges us to take advantage of the opportunity for improving further our export performance to meet this challenge i proposed in 1979 a major reorganization of the government trade policy and export promotion activities that reorganization will strengthen government coordination in the trade field and provide an improved basis for protecting american interest in the recently negotiated trade agreements i put this reorganization into effect with congressional approval earlier this month with the changes initiated in my trade reorganization we will ensure that trade between the united states and its trading partners will be conducted fairly and openly consistent with my decisions on suspending certain types of trade with the soviet union my administration will be seeking this year to find additional ways to foster export expansion we are studying the possibility of further agreements on expanded trade with both traditional and newer trade partners including china i look forward to working with the congress on ways we can continue to improve our trading position which in turn will help maintain a prosperous american economy small business this year marks the high point of three years of accomplishment for small business under my administration and the beginning of a decade of continuing effort to strengthen this large and vital sector of our economy the white house conference on small business which i convened eighteen months ago and which has just concluded its deliberations fulfills a pledge i made in 1976 that the voice of small business would be heard in my administration in anticipation of the conference i called on the head of every executive department and agency to propose at least one initiative of benefit to small business over 160 separate initiatives have been proposed and are under examination and many of them have already been put in effect we have made great strides in reforming our regulatory process cutting down federal paperwork and developing flexible regulations which provide for minimizing or eliminating burdens on smaller businesses the capital gains tax has been significantly reduced and corporate taxes on small businesses have been lowered we have also increased small business administration lending activity from billion in 1976 to billion in 1979 an increase of 72 since 1977 we have more than doubled federal purchases of goods and services from minority firms from billion to billion in 1979 i am confident that such purchases will exceed billion this year i have put into place a comprehensive policy to strengthen the role of women in business and have directed federal agencies to take affirmative action to include women in management assistance and other programs sba advocacy role has been strengthened at my direction and sba has been added to the membership of the regulatory council and the productivity council to help assure that the problems and issues facing small business are addressed wherever relevant policy decisions are made with the federal government to reduce the paperwork and regulatory burdens small businesses face in raising capital i have recently proposed a small business issuers simplification act this legislation will exempt from the burdensome registration requirements of the federal securities laws sales of securities by small businesses to institutional investors such as banks insurance companies and pension funds and others making investments of at least finally last week i sent to the congress a message on small business to emphasize the vital importance of small business and to report to you on the steps we have already taken and plan to take in 1980 to strengthen small business minority business from the beginning of my term i have worked with the congress to increase opportunities for minority business as a result of our efforts enormous progress has been made in the last three years federal procurement from minority owned firms has increased by nearly two and a half times federal deposits in banks have nearly doubled minority ownership of radio and television stations has increased by 65 almost 15 of the funds spent under the local public works act of 1977 went to firms the section 8 a program operated by the small business administration has been reformed and strengthened this year my administration is committed to expanding upon the progress made to date this year i am committed to more than tripling the 1977 level of federal procurement from firms and i have no doubt we can meet that goal my 1981 budget improves the targeting of small business administration loans to businesses we will also expand management technical and training assistance for minority firms and provide substantial funding increases for minority capital development under the sba minority enterprise small business investment company mesbic program i will also be proposing to the congress a minority business legislative initiative to establish in the department of commerce a minority business development agency that agency a successor to the office of minority business enterprise was established last year under administrative authority but i believe congressional authorization would strengthen its operating abilities women in business last year i announced a new policy to strengthen and foster the growth of businesses my new budget includes funds to make this policy a reality by increasing sba direct loans to women by 50 by assisting women in gaining access to sources of financing and by expanding management and technical assistance to women by insuring that women bare fuller access to opportunities to start and maintain their own enterprises we will start a genuine momentum to take full advantage of the contribution which women can make to the growth and productivity of our economy ii creating energy security since i took office my highest legislative priorities have involved the development of our nation first comprehensive energy policy the struggle to achieve that policy has been difficult for all of us but the accomplishments of the past three years leave no doubt that our country is finally serious about the problems caused by our on foreign oil the accomplishments can be lost however and the progress stopped if we fail to move forward even further this year there is no single panacea that will solve our energy crisis we must rely on and encourage multiple forms of crude oil natural gas solar nuclear conservation it is therefore essential that congress enact the major energy bills i proposed last year and their enactment will be my most immediate and highest legislative priority this year windfall profits tax my highest most immediate legislative priority during this session is prompt passage of a sound windfall profits tax on crude oil last april i proposed a tough windfall profits tax to recoup a portion of the unearned income that would accrue to the oil companies as a result of the phased decontrol of domestic crude oil prices and opec price increases it is essential that these revenues be invested on behalf of all americans to help us become an energy secure nation the revenues from the tax will be used to support key national energy goals energy assistance improved and expanded mass transit and energy supply and conservation programs the windfall tax that i proposed was also carefully designed to provide incentives needed to increase domestic oil production under my proposal we expect a barrel per day increase in domestic production due to decontrol and higher world prices without any windfall profits tax production would be only marginally higher by 1985 the american people clearly want and our national energy needs clearly tough windfall tax we can not afford further delay the conference committee has reached agreement on a tax raising 227 billion over the next ten years a tax at that level is acceptable provided the components of the tax are consistent with sound energy policy i urge the conferees and the congress to approve forthwith a tax that i can sign there can be no higher legislative priority energy mobilization board last july together with a comprehensive energy program i asked congress to join with me to create an energy mobilization board emb the board can cut through burdensome and unnecessary red tape and reach prompt decisions on designated priority energy projects can be streamlined without overriding of substantive law which i strongly oppose the board is a key element of our strategy to attain energy security by cutting foreign oil imports in the coming years prompt passage of the emb is one of my highest priorities this year and i urge the congress to complete its action on this proposal without delay energy security corporation last year i proposed the creation of an energy security corporation to lead our national effort to develop and produce synthetic fuels synthetics oil shale and biomass the corporation would be an independent body chartered by the government and authorized to use a variety of financing price guarantees federal purchases and loan stimulate private sector development of synthetic energy alternatives to imported oil i have recommended that the corporation be given a goal to develop the capacity to produce million barrels per day of synthetic fuels oil shale and biomass by 1990 with an ability to produce commercially synthetic alternatives to foreign crude oil our nation will have effectively capped the price which foreign oil producers can charge for crude oil we can not do the job we must do for our nation security by operating this program from within the government the corporation can much more easily obtain the needed talent and operate without the constraints binding a government agency enactment of the legislation containing the energy security corporation is one of my highest legislative priorities for this session i urge the conferees to complete this work expeditiously so that the corporation can open its doors as early as possible this year reduction in utility oil use i will soon send to the congress legislation which will assist utilities in the use of coal and encourage them to retire existing oil burning plants for generating department of energy and my staff have worked very closely with congressional energy leadership over the last several months to develop a legislative proposal which can be acted upon quickly my proposed utility oil use reduction legislation will help us to achieve two of our basic energy our dependence on foreign oil and increasing our production of more abundant and secure energy supplies such as coal for that reason passage of this legislation will be one of my highest energy priorities this year gasoline rationing i will soon be sending to congress for its approval a standby gasoline rationing plan under the authority of legislation i signed into law last year in developing this plan we have given priority attention to accommodating essential gasoline usage bearing in mind the need to design a plan which is workable and which can be put into place quickly if a severe emergency arises i recognize the difficulty of developing a plan that meets the many competing state and local concerns last year experience demonstrated that difficulty very well i determined as i am certain congress is to avoid repeating it my administration will work very closely with congress on the standby plan i hope the congress will recognize the overriding national importance of emergency preparedness and will take action early to approve my proposed plan i do not intend under our current supply conditions to implement a rationing program but we can no longer afford to be unprepared for the possibility of further severe interruptions in energy supplies energy conservation in my very first energy address to the nation in april 1977 i stressed the importance of conservation as the cornerstone of our national energy policy it is the cheapest and fastest means of reducing our dependence on imported oil and it constitutes an alternative source of supply to the extent that we our homes factories cars and public make the task of providing secure sources of energy for the future that much more attainable in november 1978 i signed into law our country first energy conservation tax credits these provide up to 300 for home conservation investments and an additional 10 percent investment tax credit for industrial investments in energy efficient equipment at the same time we put in place a requirement that utilities provide energy audits for their customers and offer to arrange financing we also established stiff taxes on new gas guzzling automobiles as a result of my april 1977 initiatives we are also providing a total of 900 million over three years to weatherize schools and hospitals across the nation last july i proposed a program to provide billion over the next decade to subsidize interest rates on homeowner loans for conservation investments this program will be targeted to and homeowners and apartment owners for whom the tax credits are less effective as an incentive under this program it is expected that consumers total monthly bills will decline since the financial savings resulting from lower energy use will be greater than the monthly payments on the subsidized loans i consider this new program to be an essential piece of my overall conservation strategy and urge the conference committee now working on the bill containing this provision to complete work promptly energy conservation must also go forward at the state and local levels to help that important effort i am again urging congress to pass my proposal under the authority of the proposed energy management and partnership act to provide grants to local governments to meet national energy conservation goals solar energy last june i sent the congress a message on solar energy outlining my administration solar program and setting a national goal for the year 2000 of deriving 20 of this nation energy from solar and renewable resources a firm and ambitious only by the federal government but also by state and local governments private industry academia and private required to reach this goal as part of my solar program announced in june i proposed a number of initiatives to the congress to assist in solar energy development among those were the establishment of a solar energy development bank funded at 150 million per year to provide subsidized loans for the installation of solar equipment on homes and commercial structures and additional tax credits for passive solar construction wood stoves industrial and agricultural solar applications and gasohol these initiatives have yet to be enacted by the congress and i urge prompt action on these measures to help speed the penetration of solar technologies in the marketplace in addition my fy 1980 program for solar energy exceeded 1 billion this is more than three times greater than the program in place when i took office in fy 1981 expenditures for solar and renewable energy will be nearly billion and will include programs administered by the departments of energy agriculture interior defense state housing and urban development and the tennessee valley authority the federal solar program has as its overall objectives the emphasis on basic research and development of solar technologies not currently economic such as photovoltaics where electricity is generated directly from the sun and the provision of funding and technical information to accelerate the use of marketable solar technologies which are available now solar heat and hot water and wood energy are among these technologies we will continue to work with the congress this session on passage of critical solar energy legislation we are making progress on the transition away from our dependence on fossil fuels and towards the widespread use of renewable sources of energy we must maintain an aggressive policy to achieve this transition nuclear safety immediately following the accident at three mile island i established a presidential commission chaired by the president of dartmouth college to report to me on actions needed to prevent recurrence of this kind of accident safety is and will remain my administration primary priority in the regulation and management of nuclear power i have taken steps to correct virtually all problems identified by the kemeny commission and have acted to implement most of its specific recommendations including a reorganization of the nrc to strengthen the role of the chairman i will soon send to congress a reorganization plan to give the chairman power to select key personnel and act on behalf of the commission during an emergency appointment of a new chairman of the nrc from outside the agency when the next vacancy occurs in the meantime i have designated commissioner ahearne as chairman with a mandate to initiate changes needed to assure the safety of nuclear power plant operations direction to the federal emergency management agency to lead all emergency activities and review all emergency plans in states with operating reactors by june a request to the nrc to accelerate its program to place a resident federal inspector at every reactor site and to upgrade training and evaluation programs for reactor operators i endorsed the approach the nrc adopted to pause in licensing but have urged the commission to complete its work as quickly as possible and in any event no later than june of this year once we have instituted the necessary reforms to assure safety we must resume the licensing process promptly so that the new plants which we need to reduce our dependence on foreign oil can be built and operated nuclear power is an option that we should keep open gasohol i have recently proposed a program to accelerate dramatically america production and use of gasohol as yet another important way on which we can energy war my administration is committed to a program which will provide between billion and billion of assistance to stimulate production of alcohol fuels over the coming decade we will quadruple current gasohol production capacity by the end of this year during 1981 we should be capable of producing ethanol at an annual rate of 500 million than six times the current rate if this entire amount of ethanol were turned into gasohol it would replace almost 10 of our anticipated demand for unleaded gasoline in 1981 our overall gasohol program will spur the investments that we together must make for a more secure energy future we will create new markets for our farmers we will no longer have to throw away waste materials which can be turned into profitable essential fuels our nation enormous agricultural and fiber resources can be used to help provide a secure source of energy for our future by producing gasohol from fiber and agricultural we can meet fuel needs for millions of americans including our farmers i am eager to work with the congress on my alcohol fuels program so that we can soon have legislation that will authorize and provide the funding for this important energy development energy impact assistance as new domestic energy resources are developed particularly in rural or isolated areas of the country we must provide for the needs of rapidly developing communities my administration will continue to work with the congress to enact legislation establishing an inland energy assistance program with funding of 150 million per year to aid those states and local areas which are experiencing a rapid growth in population as a result of new energy supply development these communities often can not plan for or meet increased need for new public facilities or services since the population increases occur before the new energy supply activities are fully developed and producing local revenues this legislation is essential to ensure that the burdens associated with solving our energy problems are borne equitably by all citizens and regions of the country iii enhancing basic human and social needs for too many years immediately preceding my administration too many of our nation basic human and social needs were being ignored or dealt with insensitively by the federal government over the past three 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 efforts over the past three years have produced clear progress in our effort to solve some of the country fundamental human and social problems the 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 we still have important legislation to enact this year the legislation is before the congress and i will be working with you toward its enactment health national health plan last june 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 affordable 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 comprehensive coverage 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 placed on annual medical expenses and would no longer face limits on hospital coverage all 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 initiatives including greater incentives for health maintenance organizations if enacted this year my plan would begin providing benefits in 1983 i urge the congress to compare my plan with the which either do too little to improve the health care needs of americans most in need or programs which would impose enormous financial burdens on the american taxpayers when that comparison is completed i am convinced the congress will see the need for and the benefits of my plan and work toward prompt enactment we can not afford further delay in this vital area hospital cost containment hospital cost containment remains the single most important piece of legislation that the congress can pass to demonstrate its commitment to fight inflation this legislative initiative will save billions of dollars for our nation consumers by eliminating unnecessary and wasteful hospital services we can no longer allow hospital inflation to put needed health care out of the reach of the average american in a sector where there is an absence of competitive forces hospital cost containment legislation is necessary to restrain spending while the process of developing other effective measures proceeds the longer we delay enacting cost containment the more expensive our fight against hospital inflation will become i am asking the senate to move quickly on this legislation health promotion and disease prevention last july the surgeon general released healthy people a landmark report on health promotion and disease prevention the report signals the growing consensus that the nation health strategy must be refocused in the 1980 to emphasize the prevention of disease specifically the report lays out measurable and achievable goals in the reduction of mortality which can be reached by 1990 consistent with this report the health strategy i will propose in my fy 1981 budget places unprecedented emphasis on prevention this strategy includes increased funding for many new and continuing programs in the areas of environmental hazards workplace health and safety commercial product safety traffic safety community water fluoridation 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 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 will be no 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 are recognized to have extremely high returns in terms of improved newborn and child health under the child health assurance program chap legislation which i have already submitted to this congress an additional two million children under 18 will become eligible for medicaid benefits which will include special health assessments chap will also improve the continuity of care for the nearly 14 million children now eligible for medicaid an additional pregnant women will become eligible for prenatal care under the proposal we must work together this year to enact chap and thereby provide millions of needy children with essential health services for the third consecutive year i am requesting expansion of the special supplemental food program for women infants and children under my proposal over 2 million nutritionally needy mothers their nursing infants and children will receive special food supplements each month these food supplements have been shown to prevent ill health thereby reducing later medical costs in addition to these legislative initiatives i will propose increased funding in the fy 1981 budget for the successful family planning program which targets services on women and adolescents at high risk for unwanted pregnancy further the 1981 budget contains continued funding for my adolescent health initiative which is designed to provide and coordinate services to pregnant teenagers as well as reduce the incidence of unwanted pregnancies expansion of services to the poor and underserved my health proposals for fy 1981 will place high priority on expanding other improvements which have been made during my administration in the access and continuity of care for medically underserved groups i will propose substantially increased funding for the most successful programs in this area including community and migrant health centers and the national health service corps program which places health professionals in rural and urban medically underserved areas in addition i am proposing legislation to make coverage of clinics providing comprehensive primary care services a mandatory benefit under medicaid mental health last year i submitted a mental health message to congress and proposed the mental health systems act which is based upon recommendations of my commission on mental health 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 prevention services and for the development of mental health services this year my administration will be working intensively with the congress for prompt enactment of this important legislation and the first lady will continue her substantial work in this area as an effective spokesperson and advocate for mental health reform throughout the country worker health and safety my administration will continue to enforce fully laws protecting worker health and safety in a sensible and efficient manner we will be making further efforts to eliminate frivolous and unneeded rules while concentrating greater enforcement efforts on the most dangerous and particularly the most unhealthy occupational environments more effective management of our worker safety programs will serve the interest that both labor and management have in better working conditions 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 to reduced the number of heroin overdose deaths by 80 and reduced the number of heroin related injuries by 50 however drug abuse in many forms continues to detract from the quality of life and is of great concern to us and the people of all nations i am particularly concerned over the increasing quantities of heroin originating in iran and southwest asia and we will continue to be especially alert to this threat in 1980 during 1980 we will also strive to reduce the supply of illegal drugs both at their overseas sources and within the united states while continuing a comprehensive treatment program our priority will be to reduce drug abuse among adolescents one of the important goals of my administration at the beginning of this decade is to change the social acceptance of drug use 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 last year 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 in this session i will continue to work with the congress to achieve additional improvements in the food stamp program and to eliminate permanently the expenditure cap i will also propose this year that congress pass the administration child nutrition amendments to target assistance under our school meal programs to those most in need education the stern challenges of the 80 place new demands on every sector of our society education is the insurance we have to provide the talent and capability to meet every demand on our national agenda the challenge of the 80 in education is to see that quantity education becomes quality education that is a challenge we can meet last year my administration and the congress successfully collaborated to create a new department of education the department will give 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 combines nearly 150 existing federal education programs into a cohesive streamlined organization that will be more responsive to the needs of and students the department will cut red tape and paperwork to make the flow of federal dollars to school districts and institutions of higher education more efficient thereby providing students and educators with more benefits per dollar of federal funds we are determined to work closely with the congress this year in making certain that the department begins on a sound basis consistent with the purposes and hopes congress had when creating it to ensure adequate financial resources for education i have requested since taking office an overall increase in federal aid to education of 75 above the previous administration last budget many programs including those serving disadvantaged and handicapped students and those providing financial aid to students enrolled in postsecondary education have benefited from ever larger percentage increases during my administration my fy 1981 budget request in education will represent a generous increase over last year budget there will be particularly significant increases in a number of programs serving special populations in addition to the major new program designed to give youth the basic skills needed to get and keep a job i am also recommending a substantial increase in the programs which deal with international education to improve our understanding of other nations in addition proposals i submitted last july to reauthorize the higher education act are still under consideration in the congress the centerpiece of my proposals for the student financial aid programs is a major reform of the student loan programs my proposal would for the first time provide a comprehensive program of loans from the federal government for higher education students who need them our proposals would eliminate much of the paperwork and confusion that have plagued students parents and colleges by mandating a single application form for all federal assistance it is essential that this reauthorization be enacted this year but the reauthorization legislation must be consistent with my commitment to a restrained responsible budget we are eager to work with the congress to achieve this goal as soon as possible income security welfare reform last year 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 work and training opportunities act and the social welfare reform amendments act within the framework of our present welfare system my reform proposals offer achievable means to increase 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 last year the house passed the social welfare reform amendments act which addresses the major problems in our cash assistance programs this year we must continue this momentum toward welfare reform i am determined to do whatever i can to help enact the two bills needed for the most comprehensive reform of the welfare system in our history 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 the work of the congress on this legislation is now almost completed the of children in need of homes and their permanent placement are primary concerns of my administration and i am determined to see improvement in the system which cares for these children this legislation will help ensure that energy assistance last year i proposed a program to provide a total of billion per year to households which are hardest hit by rising energy bills with congress cooperation we were able to move quickly to provide billion for assistance needed this winter of that amount billion was provided for grants to eligible households and 400 million for an energy crisis assistance program the first checks were received by eligible families and individuals in early january i have already proposed and will continue to press for legislation which provides billion a year for energy assistance funding from this program will come from the windfall profits tax continuing this assistance is one of my high priorities in this session of congress social security i have been deeply committed to restoring the public confidence and trust in the social security system with the passage of the social security amendments of 1977 the financial stability of the system was improved each month 35 million americans receive pension and disability checks they can rely on doing so without fear of interruption we must however address the continuing financial viability of the social security system in light of changing economic circumstances we must also review the equity of the distinctions contained in the system benefit provisions to help ensure the system viability i will propose legislation to permit borrowing among the separate trust funds this measure will strengthen the social security system for current and future beneficiaries i will also review closely the work of several major study groups and will consult with experts in the department of health and human services and the congress to assess their recommendations disability insurance reforms as a result of the legislation we enacted in 1977 which strengthened the financing of the social security system the social security disability insurance program is now in stable financial condition last year my administration proposed modifications in the program to further improve its administration and to increase incentives for disabled beneficiaries to seek rehabilitation and to return to work in 1980 we will work with the congress to enact these reforms i hope the congress will stay as close as possible to my original proposal housing my administration has brought improved stability to the nation housing market housing starts from 1977 through 1979 averaged more than million units per year we have been and remain committed to assuring the availability of an adequate level of mortgage credit during a period of record high interest rates toward that goal we developed the six month money market certificate and broadened the secondary market activity of the government national mortgage association and the federal home loan mortgage corporation most recently the bank regulators introduced two and one half year certificates which should become valuable sources of funds for savings institutions enabling them to continue a high level of mortgage lending i am pleased that our policies have begun to slow the rate of growth in home prices within the context of our overall economic strategy we will continue to support measures which provide for improved stability in the housing industry avoiding the boom and bust cycles that led to unemployment business failures and dislocation in the past i have sent to the congress legislation to update the government emergency authority under the program to purchase mortgages in times of economic stress the current authority could not be used effectively i urge quick congressional action on this legislation so that the administration will be in a position to use this program if necessary we have also brought improved stability and predictability and higher production to the provision of assisted housing for and americans including the elderly and the handicapped during the period from 1978 through 1981 my administration will have committed nearly million units of housing for lower income renters and homeowners actual construction starts reached units in 1979 a level which we will sustain through the next several years i will be proposing in my fy 1981 budget a level of assisted rental units and assisted homeownership units a total 25 increase over 1980 levels this recommendation reflects my administration concern about the number of poor americans still living in substandard housing i will also propose this year to extend hud home ownership assistance and interest subsidies to low income tenants in designated revitalization areas that will help address the particular problem of displacement of low income persons and the elderly by urban revitalization and condominium conversions my administration will again be working with the congress to pass the condominium reform legislation that i proposed last year that legislation will provide basic protections for the purchasers of condominium units many unit owners lack adequate remedies to redress serious inequities under existing law and expeditious federal action in this area is a priority in 1980 we will also propose a number of significant new legislative initiatives i will be proposing a comprehensive simplification and consolidation of the nation basic housing laws on mortgage insurance and mortgage credit activities of the federal housing administration and the government national mortgage association this proposal will make the services of these agencies more understandable and accessible to the american public i will also be recommending prompt congressional action to extend the home mortgage disclosure act which has been an important factor in aiding the availability of mortgage credit in inner city areas finally building on the urban partnership we have established with the cities we will continue to increase the control local governments exercise over the operation of federal housing programs we will propose a fundamental change in hud public housing modernization program to allow local authorities to use up to 50 of their public housing production funds for modernization and repair of the existing deteriorated stock of public housing and in recognition of the severity of the housing problems in america rural communities we will be implementing the action agenda of 12 rural housing initiatives which i announced last month neighborhood development neighborhood development is an essential component of my policies designed to revitalize our nation urban areas my administration has taken a number of steps to assist neighborhood groups carry out community improvement plans in fiscal year 1981 i will propose increased funding for the neighborhood development program this program aims to build the capacity of independent neighborhood organizations to implement conservation and revitalization projects in and neighborhoods in 1980 i will strongly support the renewal of the home mortgage disclosure act in order to encourage neighborhood reinvestment my administration will also continue to support fully the neighborhood reinvestment actions of independent regulatory agencies such as the federal home loan bank board community investment fund transportation a major goal during the 1980 is to bring about a dramatic increase in the economic and energy efficiency of our transportation systems while this nation transportation facilities are among the best in the world they were planned designed and constructed in an era of abundant and cheap energy the country now faces a totally different situation of scarce and increasingly expensive energy to help combat this problem i have proposed to use billion over the next decade from the windfall profits tax revenues to increase the energy efficiency of transportation of that 13 billion would be allocated to increase transit capacity billion would be directed to promote the use of the automobile and 1 billion for research on automotive fuel efficiency i urge the congress to enact this proposal without delay to further promote energy conservation stimulate urban growth and create new employment opportunities in the inner cities i urge the congress to support mass transportation authorization legislation this year i will seek reauthorization and extension of the public transportation grant program with the assistance of the congress we have taken a number of positive steps to reform outmoded transportation regulation the airline deregulation act of 1978 is working well with reduced passenger fares per mile and with the airlines better able to withstand the effects of recession and fuel price increases than would have otherwise been possible to continue that type of progress last year i submitted truck and rail regulatory reform bills and i am committed to seeking their enactment in 1980 these important bills will save consumers billions of dollars annually and reduce wasted fuel consumption to further improve america railroads i have introduced legislation to direct federal railroad financial assistance toward restructuring of failing railroads and improved employment efficiency i will also ask congress to increase funding for and extend the life of the northeast corridor improvement project to improve passenger rail services in the northeast statutory authority for present airport programs and related aviation taxes will expire during 1980 i have already sent to the congress a proposal to use nearly 15 billion from the airport and airways trust fund over the next five years for airport and aviation expenses i urge congress to enact this proposal this year finally i am committed to the further development of our maritime industry to achieve maximum export competitive position for the united states the ties between our port facilities and our land transport facilities must be greatly improved last year my administration conducted a comprehensive review of maritime policy and transmitted to the congress our goals for liner regulation and merchant marine promotion this year we will be working with the congress to pass legislation that embodies our interest in expanded trade and a strong merchant marine fleet special needs women the efforts of my administration over the last several years have been concentrated on providing american women with a full range of opportunities programmatic initiatives have been developed to overcome the widespread discrimination and disparities which women have faced in education in health and in employment the women education equity act has been funded in both titles i and ii to provide school boards with grants for programs designed to end discrimination in education the avoidance of discrimination in education has been also stressed through improvements in the enforcement of existing civil rights legislation the particular health problems faced have been addressed with increases in the family planning funds under title xx as well as improved teenage pregnancy funding and programs further my national health plan provides complete coverage to pregnant mothers and infants without cost employment still continues to be a major problem with a wide gap between the average week wage of men and women this is being addressed through major improvements in the funding for the women bureau of the department of labor for model training programs and research projects ceta prime sponsors have been matched on a basis to improve the amount of funding for these programs in the year ahead the administration will be supporting the passage of legislation to decrease domestic violence and provide shelters for battered spouses families as part of my administration effort to focus attention upon and strengthen the family structure last year i established the office of families within the department of health education and welfare that office will help coordinate our activities in this vital area later this year we will hold the white house conference on families which i initially proposed during my 1976 campaign this conference the culmination of three years of work will help focus public attention on the problems affecting families and on the means needed to solve or avoid those problems older americans my administration has taken great strides toward solving the particular problems faced by senior citizens early in this term we worked successfully with the congress to assure adequate revenues for the social security 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 further the administration worked 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 increased funding for nutrition senior centers and home health care and will focus added resources on the needs of older americans i will also be seeking to strengthen further the social security system by proposing legislation to permit borrowing among the separate trust funds with the 1981 white house conference on aging approaching my administration is making every effort to assure an effective and useful conference this forum 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 with special attention to those in need of care refugees in 1979 my administration made significant progress in resolving a number of problems arising from the increase in refugees last march i proposed comprehensive refugee legislation and i regard its passage as a high priority this year the is the first comprehensive reform of our refugee immigration and domestic resettlement policies in bring common sense and cohesion to an unnecessarily fragmented approach to international and domestic refugee needs under vigorous new leadership the office of the coordinator for refugee affairs which i created last year will aggressively address the need of refugees at home and abroad we will also encourage greater cooperation with the private sector and other actions to ensure successful refugee resettlement veterans as our commitment to peace and our national security remains as strong as ever so too is our nation obligation to those whose past service to our country helped to keep peace in the world for that reason my administration commitment to the needs of america veterans will remain a high priority my administration is committed to sustain high quality health care in the hospital system the largest in the free world and to encourage its growth in the most effective and efficient manner that commitment will be reflected in my budget for fy 1981 the system must maintain its independent integrity in 1980 we will continue to honor and seek recognition of all our nation veterans but we must acknowledge that veterans of the vietnam war have yet to be accorded the full honor bestowed upon veterans of past wars we will continue this year to assist veterans with special needs and concerns building on my initiative last year for these veterans accordingly this year i will again ask congress to reform and revitalize the va vocational rehabilitation program and to extend eligibility for the bill to those veterans of the vietnam war era who are most in need of advanced job training opportunities in addition i will seek increased benefits for the recipients participating in the current bill program the nation veterans deserve these benefits and i am committed to serving them my budget also proposes legislation to grant a increase for the recipients of compensation for disabilities incurred while in the service of their country government assistance general aid to state and local governments since taking office i have been strongly committed to strengthening the fiscal condition of our nation state and local governments i have accomplished this goal by maintaining consistent and strong economic growth and by encouraging economic development of local communities and by supporting the general revenue sharing and fiscal assistance programs general revenue sharing this year i will propose the renewal of general revenue sharing my administration proposal will forge a closer partnership among the federal state and local governments and will further emphasize the pivotal role of the states in our federal system my proposal for grs renewal also will provide additional aid to the cities and counties that are most strained fiscally i will soon send legislation to congress that will extend grs for five years at the current funding level of billion one third of the money will be provided to state governments on the basis of the current distribution formula as a condition for continued payments to the states each state will be required to constitute a commission to assess and address the fiscal problems confronted by the state and by the local governments within the state these commissions will provide a mechanism for involving the states to a greater extent in the government partnership of grs payments will be provided to local governments on the basis of population tax effort and per capita income while i will propose retention of the basic distribution formula for local governments i also will propose a number of modest formula changes to provide greater aid to localities with large service responsibilities and with insufficient fiscal resources my proposal for grs renewal will be the cornerstone of my policy for government relations in the 1980 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 urge congress to move quickly on my grs proposal to assure that our nation states and localities can begin the 1980 in sound fiscal condition and targeted fiscal assistance last year i submitted to congress a fiscal aid package designed to strengthen further the fiscal condition of our nation states and localities the first part of this legislation provided standby legislation to protect states and localities from unexpected changes in the national economy the second part provided transitional highly targeted fiscal assistance in fy 1980 to only the most distressed local governments substantial progress has been made on this legislation in the past year the senate passed legislation providing both targeted fiscal assistance and aid in august 1979 and similar legislation is now ready for house action it is important that congress complete its action on this legislation early this year urban policy two years ago i proposed the nation first comprehensive urban policy that policy involved more than one hundred improvements in existing federal programs four new executive orders and nineteen pieces of legislation with congress cooperation fifteen of these bills have now been signed into law additional action is expected to put into place more of these proposals this year economic development one of the principal goals of my domestic policy has been to strengthen the private sector economic base of our nation economically troubled urban and rural areas with congress cooperation we have substantially expanded the federal government 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 urban areas my fy 1980 budget requested more than billion for economic development grants loans and interest subsidies and more than billion for loan guarantees approximately 60 of these funds will be spent in our nation urban areas my fy 1981 budget continues these programs at these already high levels in addition we have extended the 10 investment credit to include rehabilitation of existing industrial facilities as well as new construction this year we need to continue our progress by extending and expanding the programs of the economic development administration with congress cooperation this legislation already has passed both the house and the senate both the house and the senate bills include the key elements of my original national development bank proposal and provide a substantial expansion of the economic development grant loan loan guarantee and interest subsidy programs of the federal government this legislation is vitally important to the economic revitalization and redevelopment of our nation economically troubled urban and rural areas i am hopeful that the conferees will complete their work shortly so that we can get these essential programs underway i continue to believe that the development of private sector investment and jobs is the key to revitalizing our nation economically depressed urban and rural areas to ensure that the necessary economic development goes forward the congress must enact legislation reauthorizing the programs of the economic development administration that legislation is now in conference and i urge the conferees to complete their work soon so that we can provide a foundation for the economic development of our nation in the 1980 community development the partnership among federal state and local governments to revitalize our nation 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 cities and counties this year i will ask congress to reauthorize both the cdbg and udag programs i will propose that the cdbg program be reauthorized for three more years and that a 150 million increase in funding be provided by fy 1981 i also will propose that the udag program be extended for three years and that 675 million be provided for this program in the upcoming fiscal year these actions should help our nation cities and counties to continue the progress they have made in the last three years rural policy since the beginning of my administration we have taken steps to address the pressing needs of a changing and rapidly growing rural america for many rural areas and for most rural residents the last decade was a time of rapid growth and development while this growth and development has produced higher income and increased jobs in rural communities it has also created substantial housing energy transportation health and management problems last december i announced our small community and rural development policy which is the culmination of several years work and is designed to address these pressing problems now affecting rural areas the major elements of the policy involve of the position of under secretary of agriculture for small community and rural development to provide leadership in carrying out this policy of an working group to assist in the implementation of this policy of a citizens advisory council to advise the president on the performance of the federal government in the implementation of this policy and to recommend needed changes invitation to the nation rural development councils to work in partnership with federal agencies in delivering state and federal programs to rural areas directive to the working group to annually review existing and proposed policies programs and budget levels to determine their adequacy in meeting rural needs and fulfilling the policy objectives and principles this is a landmark policy it is the first time rural affairs has been given the prominence of a presidential policy although many new program authorities for dealing with rural problems have been provided over the past two or three decades there has been no institutional capacity at the federal level for coordinating and focusing these efforts in a coherent and effective way this policy provides that capacity backed by my personal commitment to make it work my administration will be working with the congress this year to pass legislation needed to fulfill the commitment of this rural policy initiative consumers consumer representation last september 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 decisionmaking under the order each federal agency must adopt and implement its own strong consumer program i also established an interagency council to coordinate the agencies actions in responding to the executive order this year under the leadership of my special assistant for consumer affairs we will be working to make certain that the order is faithfully implemented and that consumers receive better protection and assistance from federal agencies my administration will continue to support efforts to provide financial assistance in regulatory proceedings to citizen groups small businesses and others whose participation is limited by their economic circumstances these programs are needed to balance the regulatory process by assuring opportunities for broad public involvement in these proceedings finally the administration will continue to support reform of procedures to ease the unnecessary burdens and costs of class actions while at the same time preventing their use as an harassment technique national consumer cooperative bank my administration worked closely with the congress to create the national consumer cooperative bank the bank is to provide loans loan guarantees and other financial services to consumer cooperatives operating in such areas as food housing health and auto repair to demonstrate my commitment to this innovative institution i have signed legislation increasing appropriations for the bank from 4 million in fiscal 1979 to 74 million in fiscal 1980 legislation has also been signed adding two members to the bank board of to represent the interests of small business and one to represent the general public this year we will continue our efforts with congress to make the bank a strong and vital resource for consumers consumer services information genuine competition is lacking in many service industries because consumers generally lack comparative cost and quality information to help alleviate this problem my administration will assist nonprofit groups and state and local government agencies to develop local consumer information systems to provide accurate cost and quality data on locally provided services an essential part of this effort will be an evaluation of the impact of better consumer information on inflation and productivity in the service sector science science and technology since the beginning of my administration i have been committed to strengthening our nation research and development capability and to advancing those areas of science and technology which are vital to our economic and social wellbeing that commitment has been reflected in a 40 increase in basic research funding resulting in the highest research and development funding in our nation history a new automotive research initiative in which the industry in partnership with the federal government will undertake basic research essential to help improve future automobiles an acceleration of scientific and technological exchanges with the people republic of china a major review of space activities and needs resulting in a 60 increase in space funding and in the development of a space policy that will set the direction of our space efforts over the next decade and a major new program to encourage industrial innovation of the undertakings will be pursued in cooperation with the congress in this year space the diversity of our activities in space shows that space technology has become an integral part of our communications in remote sensing for defense and civilian purposes and in studies of the earth and the universe guided by a sound aggressive and fiscally responsible space policy my administration has undertaken a concerted effort to support and further our space activities during my administration the expenditures for federal space programs have increased by 75 much of this increase is to meet the increasingly operational nature of our space activities nearly half of our expenditures are now for defense purposes satellites for example are enormously important in stabilizing world affairs and thereby make a significant contribution to the security of all nations and my new initiative to establish an oceanic satellite system will provide invaluable ocean data for both the civil and defense sectors thereby avoiding unnecessary duplication i have also emphasized space science and exploration continuing to fund such spectacular programs as the voyager missions that provided us with the remarkable views of jupiter and its moons i am proposing two new space telescope and the new gamma ray observatory to provide a unique capability to observe distant galaxies and to obtain information about our universe from outside the earth obscuring atmosphere in 1980 i will continue my strong support for the space program that will be reflected in my budget and in my continued commitment to the space shuttle arts humanities arts the arts provide fundamental enrichment for our nation the national endowment for the arts has played a major role in focusing public attention on the arts in doing so the endowment has brought wider audiences from all parts of the country into contact with all of the arts since the beginning of my term i have increased the government support for the endowment activities i will continue that record of expanded support again this year this will enable the endowment to strengthen its efforts to open the arts to new audiences new forums and new parts of the country humanities the humanities play a vital role in deepening our understanding of culture and society to enable the national endowment for the humanities to continue its important efforts i will again be proposing increased funding for the endowment while maintaining the programs aiding scholarly research education and cultural interpretation the endowment will use these increased funds to augment its support for research designed to increase our understanding of the traditions cultures and directions of countries in the third world studies exploring the complex public and ethical issues created by an increasingly technological society and efforts to preserve the priceless documents and other materials that constitute the heritage of this nation and of its regional and ethnic communities to bring the fruits of this work to increasing numbers of the public at large support will be provided for humanities activities in libraries museums and media as well as for a variety of special activities tailored to the needs of groups that have traditionally not had ready access to opportunities for learning in the humanities in pursuing these objectives the endowment will concentrate on using federal funds to stimulate support from sources in order to enhance our tradition of private philanthropy and to expand the financial base of our cultural institutions district of columbia no longer is our nation capital a convenient target for misdirected political attacks my administration has developed a partnership for progress with the district of columbia my administration worked with the last congress to pass a proposed constitutional amendment granting full voting representation to the citizens of our nation capital the ratification process for this proposed amendment has begun and i urge the state legislatures which have not ratified the resolution to join those which have we will continue our efforts this year in the ratification effort last year progress was made toward strengthening the district ability to meet its citizens needs with the congress help we enacted legislation authorizing construction of the full metro mass transit system and legislation funding the district pension plan for municipal employees in 1980 we will build on this record my administration will continue to work closely with the congress and mayor barry to expand home rule for the district including development of a sensible formula for determining the federal payment to the district i will continue working with mayor barry to make our nation capital city a model for the rest of the nation commission on the holocaust last year i received and approved the recommendations of the president commission on the holocaust which i established to assess how our government might officially recognize for the first time the tragedy of the holocaust i will shortly be appointing a council of distinguished americans to develop ways to implement the commission proposals the council and my administration will work closely with the congress as we establish an appropriate memorial to the six million jews and the millions of other victims of nazism during world war ii iv making government effective and efficient one of my major commitments as a candidate was to make the federal government more effective and efficient over the past three years with congress help i believe that enormous progress has been made toward that goal reforms thought to be as civil service been enacted regulatory as airline regulation and government been reduced or eliminated this coming year i intend to work with the congress to improve further the government ability to serve the nation effectively government reorganization one of my highest priorities has been to improve the quality and efficiency of federal programs through reorganization since i took office we have submitted 13 reorganization initiatives to congress and congress has approved all of them these initiatives have strengthened the federal government capacity to deal effectively with such critical issues as energy civil service disaster relief civil rights international development assistance education and trade in 1979 congress approved legislation that i sought to consolidate education programs in a new cabinet department the department of education will provide leadership improved management and direct accountability for its performance to me to the congress and to those involved in education at every level this month i put into effect a major reorganization of the federal government trade functions approved by congress last year in conjunction with the multilateral trade negotiations agreements this reorganization will ensure that expanded trade opportunities for american business abroad are fully realized and that my goal of trade expansion is given a higher priority by the federal government organizational initiatives are also an important part of my energy program we have consolidated enforcement functions for the alaska natural gas transportation system under a single federal inspector to ensure timely completion of the natural gas pipeline to reduce our dependence on foreign oil i have proposed the creation of an energy mobilization board which will expedite federal state and local decisions on proposed energy facilities i am also urging the congress to approve creation of an energy security corporation to spur development of a domestic fuels industry this year i will propose to congress another significant reorganization a plan which will strengthen the internal management and effectiveness of the nuclear regulatory commission safety is our highest concern in regulating nuclear power development and my reorganization plan will help improve the nrc ability to ensure nuclear safety general management reform to simplify the government for our citizens and to reduce the burden of unnecessary requirements and regulations we will pursue a number of initiatives this year we have instituted a governmentwide management system to mandate the cost effectiveness of new regulations and the sunsetting of old ones in 1980 we will continue to pursue further reform of regulations through legislation designed to make permanent a new framework for managing the regulatory process and legislation to reduce paperwork and red tape we will also pursue initiatives to simplify the eligibility requirements for human services programs and to improve the management and delivery of social services through increased use of private sector skills and talent this reform will reduce the obstacles for needy citizens seeking assistance and improve our ability to remove fraud from the system last year we implemented a program to manage the government cash flow more efficiently we have saved over 450 million a year and we expect further annual savings of 600 million through more timely collection of cash payments tighter control over disbursements and reductions in idle balances we have vigorously implemented legislation passed last year to establish independent inspectors general in each department and coordinated their work through the executive group to combat fraud and waste in government to spot areas where management reform is especially likely to increase efficiency i have created a management improvement council to diagnose such circumstances and prescribe a cure we will continue to pursue vigorously our efforts to improve the structure and management of government programs this is tough unglamorous work but it is essential to reduce the cost of government and to provide better service to the american people civil service and compensation reform in march 1978 i said that civil service reform would be the centerpiece of my government reorganization efforts the congress supported it and i am pleased to report it is working very well in the first real test of the reform act over 98 of the eligible managers joined the senior executive service choosing the challenge and accountability demanded by this new corps of top executives the office of personnel management the merit systems protection board and the federal labor relations authority authorized by the act have operated effectively in their first year and the agencies throughout the government continue to make substantial progress in implementing the other important civil service reforms for the first time in the hundred year history of the civil service system federal employees can get and hold jobs and be paid on the basis of actual merely length of service last year i asked the congress to take the next step in my federal employee compensation reform message i urged you to pass a pay reform bill which would modernize the federal compensation system this legislation is fair to federal employees and to american taxpayers alike our white collar blue collar and military compensation systems must be reformed in order to make certain that we neither overpay nor underpay federal employees it is a fair bill and one which will help restore public confidence in the federal service i urge congressional action on it regulatory reform over the past three years we have put into place a comprehensive program to overhaul the federal regulatory establishment and eliminate unnecessary regulatory burdens for 1980 i am determined to continue the progress of this effort it is the most important part of my ongoing campaign to make our government more efficient and effective airline deregulation the airline deregulation act of 1978 has revolutionized air transportation in the first year of its operation the new environment of free competition created by the law produced a record number of flights and passengers a much wider variety of service packages and a savings of approximately billion in the fares paid by the travelling public under the act regulatory controls will continue to be relaxed until in 1985 the cab itself will be completely phased out of existence trucking deregulation the trucking industry is enmeshed in detailed regulations that control the routes truckers can drive and the goods they can carry in addition truckers are allowed to fix prices through industry rate bureaus this regulatory system works to stifle competition waste fuel reduce service to small towns and inflate prices my appointees to the interstate commerce commission have started modernizing the system but we need legislation to provide comprehensive reform i have submitted a bill to open up entry lift restrictions on the goods truckers may haul and the routes they may use promote vigorous price competition reduce regulatory delays and improve safety on the road this bill is an important step in fighting inflation and i look forward to passage of a sound bill by early summer if appropriate legislation is not enacted i would expect the icc to proceed under its authority to implement reform initiatives in addition we need legislation to increase competition in the household moving industry the senate recently passed a constructive bill and i urge the house to strengthen and pass it railroad deregulation railroads have traditionally been one of the most overregulated industries in america as a result management initiative service and competitive pricing have been stifled railroad plants and equipment have deteriorated and the average railroad industry rate of return on investment is far too low my administration will continue to work to eliminate these wasteful conditions and the regulatory structure which helps because them our principal weapon in that effort is the railroad deregulation bill that i proposed last year enactment of significant railroad deregulation legislation this year is essential to restoring our railroad system to its former strength financial institutions regulation last year the combination of deposit rate ceilings and outmoded restrictions on the asset powers of thrift institutions produced severe inequities for the small saver substantial savings outflows from many thrift institutions and disruptions in the availability of mortgage credit contrary to its intended purpose the regulation q system has contributed to the cyclical nature of the housing market and has destabilized the flow of mortgage funds in a related area changing competitive relationships as well as innovations in the market have increased inequities and produced a continuing decline in federal reserve membership now is the time to take the actions necessary to prepare for the financial environment of the 1980 the congress passed legislation in 1979 increased the ability of many americans to obtain mortgage credit in addition the congress made major progress toward enactment of the historic financial reform legislation i proposed last year this year we will work closely with congress to achieve final approval of our financial reform objectives the phaseout of regulation q deposit rate ceilings the broadening of the asset and liability process of thrift institutions the approval of legislation to stem the decline in federal reserve membership and the elimination of other unwarranted regulatory restraints prompt action is necessary to avert a significant decline in federal reserve membership and to assure a fair rate of return to the saver a steadier flow of housing credit and a stable financial environment for all classes of depository institutions this spring i will submit to the congress the administration findings on the mcfadden act and other geographic restraints on banking activity telecommunications deregulation technological advances such as satellites computers and microwave relays have made it practical to move much of the telecommunications industry from a regulated monopoly to a deregulated competitive market this shift is already underway and is benefitting individual customers as well as companies toward that end i will continue to support strongly ongoing efforts in congress to pass a bill that will encourage and protect competition remove needless regulation and maintain universal reliable service in addition we need this legislation to smooth the transition to a competitive environment by protecting workers rights ensuring against any large increases for rural telephone rates and providing needed national security and emergency preparedness powers regulation reform act in march of 1979 i sent to congress the regulation reform act when enacted this bill will assure that new and existing regulations will be rigorously scrutinized before they can be issued or retained that wasteful delays are eliminated from the regulatory process that key regulatory officials be selected purely on grounds of integrity and competence and that the public will be assured meaningful opportunities to participate in regulatory the reform steps i have taken administratively have already avoided billions of dollars in unnecessary regulatory costs erased thousands of useless regulations from the books of osha and other agencies and opened up the regulatory process across the executive branch enactment of my regulatory reform bill legislation is needed in this congress to strengthen these reforms and extend their benefits to the independent regulatory commissions presidential oversight of regulation many regulatory programs are vital to the protection of the health safety and welfare of our citizens these we must manage effectively while cutting out wasteful red tape rigidity and costs imposed on industry and the public and enhancing opportunities for public participation in from the outset of my administration i have actively used my authority as president to assure that executive branch regulatory agencies respect these goals through executive orders through oversight from the office of management and budget through a regulatory analysis review group to assure that regulatory costs are accurately evaluated and through a regulatory council to eliminate duplication and overlap among individual agencies we will pursue these efforts in 1980 legislative veto while supporting the regulation reform act i will strongly oppose proposals that would undermine the ability of the president to manage the regulatory process or would cripple the effectiveness of needed programs in particular my administration will oppose proposals to subject individual agency rules to veto by one or two houses of congress to transfer regulatory policy authority to the federal courts and to create rigid statutory procedures for presidential supervision of executive branch regulatory agencies this last year has seen congress besieged by assaults on various important regulatory statutes especially the federal trade commission act seeking groundless exemptions crippling loopholes and unprecedented congressional interference with ongoing proceedings i will resist strenuously all such efforts to confuse special interest pressure with regulatory reform communications my highest priority in the communications area is passage of regulatory reform legislation covering the telecommunications industry in addition in 1980 we will continue our program to make the media more diverse and to ensure that the public gets the full benefit of the advances in communications technologies administration efforts include working to increase minority participation already our program has helped produce a increase in minority ownership of broadcast stations and we will continue that progress working with the federal communications commission to continue to eliminate needless paperwork and regulations pursuing plans to open up channels for as many as new radio stations to improve service to rural areas and provide more opportunities for minorities developing proposals to improve the way frequencies are assigned including incentives for users to conserve the increasingly crowded radio spectrum encouraging the use of satellites cable tv and other technologies to deliver public services and to improve rural communications working with congress and the fcc to protect first amendment rights and the free flow of information through such measures as my bill on police searches of newsrooms and continuing to support a strong independent public broadcasting system and working to increase its coverage to reach all americans in addition i will submit to the senate later this year the treaty and protocol that resulted from the world administrative radio conference concluded in geneva in december this conference and the conferences that will be held in the next few years will determine the utilization of the radio spectrum for the rest of the century we prepared for this conference for over two years our delegation has secured for the united states all allocations necessary for its civilian and military services while also responding to the legitimate needs of the third world nations sunset we will continue to work with congress to pass sunset legislation this legislation will overcome the inertia that let us federal programs continue when they have outlived their purpose it will ensure that congress regularly reviews programs to decide whether they should be changed or eliminated a comprehensive sunset bill with a strong mechanism to force action when programs need change is a vital toward making the government more efficient paperwork reduction in the past three years my administration has cut the amount of time americans spend filling out federal forms by 127 million 15 i recently issued an executive order to continue this progress by strengthening our management program however congress is enacting new paperwork requirements in energy environmental protection and other areas and we must have legislation to provide the strong administrative controls that will be needed to minimize these burdens i urge congress to pass a paperwork reduction act to close the wide loopholes in executive branch oversight power and create new authority to halt duplicative data collection in addition i urge legislation be enacted to improve federal statistical systems by strengthening central management and by encouraging agencies to share data under new tough confidentiality safeguards lobby reform the american people have a right to know what significant influences affect their national legislature the proliferation of organizational lobbying activities during recent years has demonstrated the clear need for reform of the outdated and ineffective lobby disclosure law now in effect this year my administration will again work with congress to pass a sound lobby law reform that respects the first amendment rights of all americans and minimizes paperwork burdens yet allows meaningful disclosures public financing of congressional elections the impact of special interest contributions on congressional campaigns has grown dramatically in recent years it is time to adopt public financing for congressional elections before it is too late such public financing will avoid even the appearance of undue special interest influence and will allow worthy candidates without adequate funds to run for congress i urge the congress to act on this legislation judicial reform in my civil justice reform message last year i made proposals to increase the efficiency cut the cost and enhance the integrity of our federal court system last year i signed the federal magistrates act of 1979 both the senate and the house have passed the dispute resolution act which would develop simple and informal means of resolving citizen disputes and i look forward to early final action on this legislation the federal courts improvement act has passed the senate and i urge the house to act on it early in this session i hope that the congress will also pass the other bills recommended in my message such as the one which would curtail diversity jurisdiction leaa leaa potential to improve and strengthen state and local criminal justice programs has never been realized two years ago i proposed reforms in its structure and programs last month congress passed and i signed a bill which incorporated most of those reforms and which reauthorized leaa for four more years these reforms will preclude excessive expenditure of funds for equipment enable better information and research about crime problems and permit funding only of innovative programs which have a high probability or record of proven success during this year we will implement the new legislation in a way that makes certain the agency is efficiently carrying out its mission of providing meaningful law enforcement assistance patent reform as part of the industrial innovation policy that i announced last year we will be seeking to reform our patent laws in a way which will spur creativity and invention the administration will be working with congress to develop a single policy to guide the departments and agencies dealing with patents resulting from research such uniform treatment should encourage the commercial use of discoveries while protecting the taxpayers investment protecting basic rights and liberties since taking office i have worked to protect and enhance the basic fights and liberties guaranteed to americans under the constitution and our other laws with your cooperation we have made important progress in this area this year though important work remains to be done if our goal of ensuring equality and basic freedoms for all americans is to be realized the dream of equal opportunity remains unfulfilled i will do whatever i can to bring that dream closer to realization equal rights amendment i am committed as strongly as possible to the ratification of the equal rights amendment its ratification this year will be one of my highest priorities as a result of our efforts in 1978 the equal rights amendment deadline for ratification was extended for three years we have now two years and three states left we can not afford any delay in marshalling our resources and efforts to obtain the ratification of those three additional states with your help i believe we can succeed this year 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 that ability civil rights the completion of the civil rights reorganization and significant operational improvements in the agencies that carry out equal employment opportunity functions have enabled the federal government to shift its focus for the first time to enforcement efforts these have been buttressed by our vigorous and successful posture in several landmark affirmative action cases at the same time the reorganization mandate to eliminate unnecessary costs paperwork and other burdens to businesses is being vigorously implemented by the equal employment opportunity commission that will continue with increased resources this year to make certain that civil rights activities are given the highest priority in the agencies we have created a civil rights unit in the office of management and budget this new unit will monitor civil rights enforcement and advise the director of omb on the funding and management resources needed for effective enforcement martin luther king martin luther king led this nation effort to provide all its citizens with civil rights and equal opportunities his commitment to human rights peace and stands as a monument to his humanity and courage as one of our nation most outstanding leaders it is appropriate that his birthday be commemorated as a national holiday and i will continue to work with the congress to enact legislation that will achieve this goal fair housing enforcement of laws against housing discrimination has lagged in comparison with the employment area because there is no adequate enforcement mechanism title viii of the civil rights act which prohibits discrimination in housing has been largely ineffective i have strongly supported legislation which seeks to provide the department of housing and urban development with the power to hold administrative hearings and to issue cease and desist orders in cases where title viii has been violated we will continue to work with the congress during 1980 to enact this authority its enactment will continue to be my highest legislative priority in the civil rights area intelligence charters a legislative charter for the intelligence agencies and a charter for the fbi are long overdue 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 several months ago i submitted to the congress a legislative charter for the fbi which protects the rights of our citizens while preserving the bureau ability to meet its important responsibilities in 1980 we will continue to work with the congress toward enactment of this legislation events of the past year indicate the need for a strengthened and clearly defined role for our intelligence community on the basis of the sound consultative work done already with congress i plan to submit a proposed charter early this year hatch act reform federal employees who work in nonsensitive positions should have the right to participate in political activities my administration will continue to support legislation which would reform the hatch act to accomplish this goal and would prevent any political abuse criminal code the federal criminal laws are often archaic frequently contradictory and imprecise and clearly in need of revision and codification my administration will continue to work with the congress to develop a federal criminal code which simplifies and clarifies our criminal laws while maintaining our basic civil liberties and protections labor law reform our labor laws are vital to ensuring that a sound relationship exists in collective bargaining efforts to abuse those labor laws especially by unduly slowing or blocking their implementation have increased in recent years as a result a reform of our labor laws is badly needed to guarantee that their intended spirit is fully observed and enforced i am again ready to work with the congress to develop legislation which improves the fairness and effectiveness of our labor laws handicapped during my administration we have made great strides toward ending discrimination against handicapped people through broadened employment opportunities educational opportunities and greater access to public facilities and services just after i came to office the department of health education and welfare issued the first regulations on section 504 of the rehabilitation act since then numerous other federal agencies have issued final regulations and we expect to have regulations from all the necessary agencies by the end of 1980 last year i supported legislation which would prohibit discrimination against the handicapped in private employment and housing i will continue to support that initiative this year and to clarify legislative and administrative uncertainty about provisions of the acts affecting the rights or programs affecting handicapped individuals while my administration has worked to improve programs serving the handicapped we must continue to push for removal of psychological and physical barriers against handicapped people in our society we are actively organizing and preparing for next year international year of the disabled the international year will enable this the public and private sector working demonstrate its commitment to the disabled and to teach or learn from other nations about ways to advance the quality of life of handicapped individuals privacy changes in our society are threatening the rights to personal privacy government and private institutions collect increasing amounts of information about individuals many decisions that once were made are now based on recorded data and modern technology allows this data to be transferred throughout the country instantaneously much of this information must be collected and used to enforce the laws provide financial services and for other important services however these needs must be balanced against the right to privacy and against the harm that unfair uses of information can because last year i announced the government first comprehensive privacy program building on legislation already passed to prevent improper use of wiretaps and improper access to personal bank records this new program has five separate privacy safeguards for medical research bank insurance and credit records and providing special protections modeled on the wiretap laws for electronic funds transfer systems in addition i have proposed legislation limiting police searches of newsrooms to deal with the problems created by the supreme court stanford daily decision my privacy program includes action as well we have improved the handling of federal stopped the growth of personnel records and started cutting back and we established rules to control computer matching of federal files i have called upon employers to establish voluntary privacy codes for the records concerning their employees and launched nationwide hearings to promote that effort international guidelines are needed to protect the privacy of personal information transferred from one country to another while avoiding disruption of needed information flows we have spearheaded work in the organization for economic cooperation and development toward this end and guidelines have been drafted for adoption this year the key protections however need legislation i urge congress to act now on the five privacy bills i have submitted vi protecting and developing our natural resources two of our nation greatest natural resources are our environment and our fertile agricultural capacity since i have been in office i have worked with the congress to preserve protect and where appropriate develop our natural resources in the environmental areas i have been concerned about the importance of preserving a clean environment and have taken a number of major actions designed to foster such an environment in the agricultural area i have taken the steps needed to improve farm incomes and increase our agricultural production to record levels with your help we can continue to make progress in both of these areas in 1980 environment balancing the need for resource development and conservation has been a major environmental theme of my administration i remain strongly convinced that this nation can have economic and energy development and adequate environmental protection as we open the decade of the 80 all americans can be proud of their natural and cultural heritage which continues to satisfy economic recreational and spiritual requirements 1980 is the tenth anniversary of a decade of environmental awareness that began on earth day 1970 during this past decade monumental legislative achievements have occurred these include the national environmental policy act the clean air and clean water acts additions to our national parks trails and river systems and the endangered species act i was pleased to sign into law the reauthorization of the endangered species act last year during 1980 as we celebrate this tenth anniversary let us rededicate ourselves to the creation and maintenance of a safe and healthy environment to the wise use and development of our natural resources to the fair implementation of environmental statutes to preserving unique wildlife resources and to even greater achievements for improving the quality of life for all americans during the next year my administration will vigorously pursue the protection of alaskan lands the implementation of an effective water resources policy a careful implementation of domestic energy production programs with proper regard for environmental values a review of wilderness potential on the public lands creation of a hazardous waste management program fisheries development and coastal management policies alaska lands passage of legislation which adequately resolves the allocation of federal lands in alaska continues to be my highest environmental priority at stake is the fate of tens of millions of acres of beautiful land outstanding and unique wildlife populations native cultures and the opportunity to ensure that future generations of americans will be able to experience and benefit from these nationally significant resources the proposals which i have supported in the 95th congress and again during the first session of this congress assure that alaska great national treasures can be preserved while providing for increased domestic energy production and for the economic needs of all alaskans in addition to recommendations for designating national parks wildlife refuges wilderness areas national forests and wild and scenic rivers on the federal lands in alaska i have or will be proposing aggressive but environmentally sensitive oil and gas development programs in alaska outer continental shelf and national petroleum reserve my administration is also stepping up the transfer of 103 million acres of federal land to the state of alaska and 44 million acres to alaskan natives so that both the state of alaska and the native corporations can build their economic base however in order to maintain the proper balance between resource protection and development in alaska the congress must now enact the comprehensive legislation which has been before that body for over two years the 96th congress will soon be asked to vote on what clearly amounts to the conservation decision of the century the house of representatives has already passed a strong conservation bill and the senate will shortly take up debate on this issue i urge that the congress carry out its responsibility to enact legislation which truly protects and preserves our natural heritage in alaska hazardous substances one of the most important environmental and public health issues facing our nation is the threat caused by the improper disposal of hazardous substances accidents like those at love canal and valley of the drums have highlighted the inadequacy of the existing laws and inability of governments at levels to respond quickly and efficiently to these dangerous incidents in the coming years there may be thousands of hazardous waste sites which will need attention the cost of which could be enormous clearly an effective public policy is needed to deal with this situation last june i submitted to congress a comprehensive billion legislative proposal that establishes a system to deal with releases from uncontrollable hazardous waste sites as well as spills of oil and hazardous substances this system includes provisions for emergency government response effective enforcement liability and in some cases economic compensation the system also calls for a partnership with the states in cleaning up and containing this problem this legislation is absolutely essential if we are to meet our responsibilities to the public and i urge the congress to act on it expeditiously nuclear waste management the problems related to the management disposal and storage of nuclear wastes remains one of the most serious problems with nuclear power my administration has been deeply concerned with this problem for the past three years an exhaustive study and review of this problem has been undertaken by the administration over the past year based on the findings and recommendations of that study i will soon be proposing to congress comprehensive legislation that deals directly with this problem my proposals if enacted will represent the biggest step forward in the area of nuclear waste management since the dawn of the nuclear age i urge the congress to take action in this area this year rare ii in 1979 i submitted to congress my recommendations on wilderness for the national forests under the rare ii procedure these proposals include million acres of new most desirable areas within the vast review over 10 million acres are undergoing further study in addition i directed the forest service to release for multiple use management the 36 million acres of land that was designated for i urge the congress to approve my recommendations this year water policy legislation sound water management is vital to the economic and environmental health of our nation administrative implementation of the comprehensive water policy initiatives which i announced in june of 1978 is nearing completion we will continue to work with the congress to pass legislation needed to improve further federal water resources programs and to support the states in their primary responsibilities for water allocation and management i am pleased that last fall the senate authorized an expanded grant program to the states for water management and water conservation technical assistance and i expect the house to soon pass this legislation the cost sharing bill which i have proposed is critically needed to give the states a more effective voice in setting water project priorities in state and federal water policy decisions i believe the establishment of an independent review unit in the water resources council is essential and i urge the congress to act quickly on the pending authorization the independent review unit will provide an objective impartial technical analysis to the administration and to the congress of water projects proposed for authorization or construction funding this information will enable the administration and the congress to make better informed decisions on where to invest the taxpayers water resource dollars it should be clear that my administration supports sound water resources development and has taken several steps to improve the quality of projects sent to congress for authorization and funding i am concerned that the water projects authorization bills now under consideration by congress threaten to overturn the progress made in recent years i urge the congress to give this legislation the careful and thoughtful scrutiny required by our joint commitment to restraining federal spending and ensuring a sound environment fisheries development last may my administration proposed a fisheries development policy that recognizes both the importance of the commercial fishing industry to the nation economy and that fish is an important food source this policy includes a recognition of the potential for fisheries expansion within the nation fisheries conservation zone and the importance of the federal government creating a positive climate for fisheries development in conjunction with this policy my administration has sent a legislative proposal on fisheries development to the congress it is time that the united states begin taking action to more fully utilize the fisheries resources of the economic zone i urge the congress to join with me in this effort agriculture agricultural progress while much work remains to be done america agriculture is by far the best in the world efforts made by my administration in cooperation with congress to secure economic stability for the farmer have produced results in 1979 we experienced another record year for farm production net farm income jumped to 32 billion in 1979 a 4 billion increase over 1978 agricultural exports also reached new highs rising 18 in 1979 to 32 billion despite the suspension of exports to the soviet union we can expect a continued healthy export picture for our nation farmers last year the secretary of agriculture travelled around the country and conducted an extraordinarily detailed and creative dialogue with the nation farmers he obtained invaluable suggestions on economic and social issues concerning farm life as we prepare our farm program for this year and beyond the advice of our nation farmers will clearly be reflected in the policies we develop with the congress soviet grain suspension in response to the soviet armed invasion of afghanistan on christmas eve i took several actions to demonstrate our nation resolve to resist such hostile acts of aggression against a sovereign independent nation one of the most important of these actions was the suspension of grain sales to the soviet union beyond the 13 million tons provided under our 1975 grains agreement the soviet union had intended to purchase an estimated 25 million tons of wheat and feed grains thus the suspension of sales above the 8 million ton agreement level is expected to result in the freeing of about 17 million tons my decision to suspend these sales was a difficult one but a necessary one we could not continue to do business as usual with the soviet union while it is invading an independent sovereign nation in an area of the world of strategic importance to the united states i am fully committed to a policy of promoting international trade and particularly the expanded export of agricultural products i am proud of my administration record in this regard because of the aggressive efforts of american farmers and businessmen working in cooperation with federal representatives and the provision of new authorities by congress we have set new export records in each of the past 3 years even with the soviet suspension we intend to set still another record in the coming year in making my decisions on the suspension i believed it would be unfair to ask the american farmer to bear a greater share of the burden and sacrifice than their fellow americans were asked to bear farmers should not be penalized simply because they are part of an agricultural machine that is of growing strategic importance in the world to protect american farmers from the price depressing effects of the grain suspension i directed the secretary of agriculture to take several actions the commodity credit corporation will assume the contractual obligations for grain previously committed for shipment to the soviet union the department of agriculture acting through the commodity credit corporation will purchase wheat contracted for export to the soviet union for the purpose of forming an emergency international wheat reserve in this connection i will propose legislation authorizing release of this wheat for international aid purposes to encourage farmers to place additional grain in the grain reserve the secretary of agriculture has made several modifications in that important program the commodity credit corporation will purchase corn at the local level to alleviate the congestion within the transportation system caused by the refusal of the international longshoremen association to load grain up to the 8 million metric ton level in combination these actions are expected to isolate from the market an amount of grain equivalent to that not shipped to the soviet union thereby avoiding a decline in grain prices i am pleased to report that these actions are having the desired results and that american farmers are being protected from the effects of the suspension if further actions are necessary to insure that american agriculture does not bear a disproportionately large share of the burden associated with this action i will not hesitate to take them crop insurance we now have an assortment of federal loan grant and insurance programs designed to protect farmers from the economic risks associated with natural disasters we recognized early in my administration that these programs were in serious need of reform they are marked by many shortcomings inconsistencies in eligibility inequities in the level of benefits to producers of different crops and inefficiencies in the use of taxpayer money recent evidence of abuse in the agricultural disaster loan programs provides further evidence of the need for this reform i have sent the congress a proposal to consolidate these authorities in the form of an comprehensive insurance program congress has made clear progress in devising an improved crop insurance program but work remains to be done i urge the congress to finish its work on this legislation as soon as possible international emergency wheat reserve the congress has not yet acted on the proposal i made in the last session to create an international emergency wheat reserve this reserve of up to 4 million tons of wheat would be used to assure recipient nations that we will meet our international food aid commitments the suspension of further grain sales to the soviet union provides an appropriate opportunity to provide this authority and thereby establish guidelines for the release of wheat now being acquired by the commodity credit corporation foreign policy from the time i assumed office three 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 steady growth and increased projection abroad of soviet military that has grown faster than our own over the past two decades overwhelming dependence of western nations which now increasingly includes the united states on vital oil supplies from the middle east pressures of change in many nations of the developing world including the year old revolution in iran and uncertainty about the future in many other 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 relations and to regional stability and to the flow of oil as the unprecedented and overwhelming vote in the general assembly demonstrated countries across the particularly the 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 western 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 threat to widely shared common 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 understand that prosperity progress and most of all peace can not 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 nations and peoples there have been encouraging developments in recent years as well as matters requiring continued vigilance and concern alliances with the world most advanced and democratic states from western europe through japan are stronger than ever have helped to bring about a dramatic improvement in relations between egypt and israel and an historic step towards a comprehensive settlement 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 the central challenge for us today is to our steadfastness of purpose we are no longer tempted by isolationism but we must also learn to deal effectively with the contradiction of 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 five basic goals for america in the world over the 1980 we will continue as we have over the past three years to build america 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 we will pursue an active diplomacy in the world with our friends and resolve disputes through peaceful means and to make any aggressor pay a heavy price we will strive to resolve pressing international economic energy and continue to pursue our still larger objective of global economic growth through expanded trade and development assistance 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 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 continuing close cooperation between the congress and the executive branch will be required to achieve these goals my most immediate legislative priorities include 1 defense department authorization and appropriations bills 2 special international security assistance for pakistan and other countries 3 bilateral and multilateral foreign assistance bills including central america supplemental 4 the china trade agreement 5 intelligence charters 6 refugee legislation and funding 7 human rights conventions 8 and when appropriate the salt ii treaty 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 hostage 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 of our fellow citizens grows each day enhancing national military strength the maintenance of national security is my concern as it has been for every president before me as i stated one year ago in atlanta this is still a world of danger a world in which democracy and freedom are still challenged a world in which peace must be every day 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 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 relations have been a mixture of cooperation and competition the soviet attack on afghanistan and the ruthless extermination of its government have highlighted in the starkest terms the darker side of their 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 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 world war ii the soviets have sent combat forces into an area that was not previously under their control into a and sovereign state on january 4 i therefore announced a number of measures including the reduction of grain sales and the curtailment of trade and technology transfer designed to demonstrate our firm opposition to soviet actions in afghanistan and to underscore our belief that in the face of this blatant transgression of international law it was impossible to conduct business as usual i have also been in consultation with our allies and with countries in the region regarding additional multilateral measures that might be taken to register our disapproval and bolster security in southwest asia i have been heartened by the support expressed for our position and by the fact that such support has been tangible as well as moral the destruction of the independence of afghanistan government and the occupation by the soviet union has altered the strategic situation in that part of the world in a very ominous fashion it has brought the soviet union within striking distance of the indian ocean and even the persian gulf it has 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 might well control an area of vital strategic and economic significance to the survival of western europe the far east and ultimately the united states it is clear that the entire subcontinent of asia and specifically pakistan is threatened therefore i am asking congress as the first order of business to pass an economic and military aid package designed to assist pakistan defend itself 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 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 1981 budget would increase funding authority for defense to more than 158 billion a real growth of more than 5 over my request for fiscal year 1980 therefore requested outlays for defense during fiscal year 1981 will grow by more than 3 in real terms over the preceding year the trends we mean to correct can not 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 we can well afford the defense program emphasizes four areas a 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 b it upgrades our forces so that the military balance between nato and the warsaw pact will continue to deter the outbreak of or europe c it provides us the ability to come quickly to the aid of friends and allies around the globe d 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 capabilities will also be improved these steps will maintain and enhance the fleet by improving its ability to deliver weapons against increasingly heavily defended targets we are also modernizing our strategic submarine missile force the first new trident submarine has already been launched and will begin sea trials this year the second trident will be launched in the spring of 1980 the first of our new trident missiles with a range of more than miles have already begun operational patrols in poseidon submarines the new mx missile will enhance the survivability of our intercontinental ballistic missile force that is why i decided last spring to produce this missile and selected the basing mode best suited to enhance its capability further the mx will strengthen our capability to attack a wide variety of soviet targets our new systems will enable 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 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 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 about 1700 new fighter and attack aircraft over the next five increasing the number of air force fighter wings by over 10 we are accelerating the rate at which we can move combat aircraft to europe to cope with any surprise attack and adding to the number of shelters at european airbases to prevent our aircraft from being destroyed on the ground rapid deployment forces we are systematically enhancing our ability to respond rapidly to 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 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 development and production of a new fleet of large cargo aircraft with intercontinental range design and procurement of a force of maritime prepositioning ships that will carry heavy equipment and supplies for three marine corps brigades in addition responding to the soviet military presence in cuba and the proxy role of cuba on behalf of the ussr we have taken or are taking the following actions in support of the rapid deployment force 1 we are substantially increasing our ability to monitor cuban and activities 2 we have established a caribbean joint task force headquarters which improves our ability to respond to events in the region 3 we are increasing regional military exercises and 4 we are intensifying assistance to countries in the region that are threatened by soviet or cuban intervention naval forces sea power is indispensable to our global peace and also in war our shipbuilding program will sustain a navy in the 1990 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 military 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 can not 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 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 i have also launched a major effort to establish a coherent and practical basis for all government mobilization planning begun last may this is the first such effort conducted at presidential level since world war ii it involves virtually every federal agency with the aim of improved efficiency and readiness our intelligence posture our national interests are critically dependent on a strong and effective intelligence capability we will not shortchange the intelligence capabilities needed to assure our national security maintenance of and continued improvements in our intelligence effort are essential if we are to cope successfully with the turbulence and uncertainties of today 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 1980 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 it is imperative that we now move forward promptly within the context of effective congressional oversight to provide america intelligence community with charters which can permit it to operate more effectively and within a national concern codified by law regional policies every president for over three decades has recognized that america 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 at antic area we are also inextricably linked with the far 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 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 at the outset of this administration i emphasized the primacy of our at antic relationship in this country national security agenda we have made important progress toward making the atlantic alliance still more effective in a changing security environment we are meeting the soviet challenge in a number of important ways first there is a recognition among our allies that mutual security is a responsibility to be shared by all we are each committed to increase national defense expenditures by 3 per year there remains much work to be done in strengthening nato conventional defense the work proceeding under the alliance long term defense program will help achieve this objective last month we and our nato allies took an historic step in alliance security policies with the decision to improve substantially our theater nuclear capabilities the theater nuclear force modernization tnf program which includes the deployment of improved pershing ballistic missiles and of cruise missiles in europe received the unanimous support of our allies the accelerated deployment of soviet mirved missiles made this modernization step essential tnf deployments will give the alliance an important retaliatory option that will make clear to the soviets that they can not wage a nuclear war in europe and expect that soviet territory will remain unscathed while we move forward with our necessary defense efforts in europe we are also proceeding with our efforts to improve european security through arms control as an integral part of the nato tnf decisions the alliance has made it clear that it is prepared to negotiate limitations on theater nuclear missiles on our part our tnf modernization efforts will make possible a streamlining of our nuclear weapons stockpile in europe allowing us to withdraw nuclear warheads over the next year in the mutual and balanced force reduction talks we and our allies have recently put forward new proposals that are designed to simplify the negotiations and improve the prospect for early progress in limiting conventional military forces in europe in a very real sense the accomplishments of the past year answered a critical question concerning nato future can the western alliance which has provided the foundation for one of the longest periods of peace and prosperity that europe has ever enjoyed still summon the essential cohesion relevance and resolve to deal with fundamental security issues likely to affect its member nations well into the next century nato consensus in favor of modernizing and negotiating about its nuclear arsenal while continuing to improve conventional forces dramatized allied capacity to respond effectively to both the military and political threats posed by the soviet union relations with our allies and friends in europe are taking on ever broader dimensions our security agenda remains central we are addressing new concerns as well i met with an unprecedented number of european statesmen in washington during the year just past including the leaders of great britain west germany austria norway finland the netherlands ireland sweden and the european community in all of these meetings a common theme was the changing of political and economic interdependence and as we enter a new decade the need to promote more equitable conditions of peaceful growth and stability throughout the world this approach has achieved tangible form in a number of ways for example every west european government supports us as we have continued by every peaceful means to seek the release of american hostages held in tehran in defiance of universal standards of international law and decency we are consulting and cooperating closely in our responses to the soviet union invasion and occupation of afghanistan in the nato area itself we moved together vigorously to meet the serious economic problems faced by turkey and thereby strengthen a vital part of nato southern flank and we have signed a new base agreement with turkey this action though indispensable in its own right also supported our continuing efforts to promote a solution to the cyprus problem and to bring about the reintegration of greece within the military framework of the atlantic alliance objectives which retain high priority this year asia 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 even greater than our trade with europe we have pursued and maintained these interests on the basis of a stable balance of power in the region our partnership and alliance with japan is central to our asian policy we are strengthening our new relationship with china we have expanded our ties with the association of south east asian nations asean and its member governments my trip to the far east helped forge closer working relationships with japan and korea asian security the balance of power is fundamental to asian security we have maintained that balance through a strong united states military posture in the region as well as close ties with our allies japan australia new zealand and korea over the past year i have worked to stabilize the united states military presence in asia by concluding an amended base agreement with the philippines that will last until 1991 we have fostered the closest degree of security cooperation with japan in the history of our two by joint planning for the defense of japan increased japanese contributions to united states base costs in japan and japanese purchases of united states defense equipment after examining in detail new intelligence estimates of north korean military strength i decided to maintain our troop strength in the republic of korea at its present level until at least 1981 the reaffirmation of our commitment to korean security has been of great importance to the koreans as they make necessary political adjustments in the wake of president park assassination response by nations in east asia to the soviet aggression in afghanistan has been gratifying australia in particular deserves recognition for the forthright stand it has taken japan and the asean nations have also been strongly supportive china over the last year we have expanded our relationship with the people republic of china to ensure that where our interests coincide our separate actions will be mutually reinforcing to this end we have enhanced our consultative relationship we have also sought to develop an enduring institutional framework in the economic cultural scientific and trade areas this process has been facilitated by the successful visits of vice premier deng to the united states and vice president mondale to china through the signing of over 15 commercial scientific and cultural agreements through numerous visits and through a significant expansion of trade and the flow of people between our two countries during secretary of defense brown recent trip to the people republic of china talks were held on global and regional issues arms control technology transfer and ways to sustain bilateral contacts although we may differ with the chinese on some issues our views coincide on many important issues particularly with respect to the implications for the region of the soviet invasion of afghanistan in 1980 i look forward to passage by congress early in the year of the china trade agreement and of authorization of opic operations in china we plan to conclude civil aviation maritime and textile agreements and continue to expand our commercial cultural and scientific relations particularly through eximbank credits to the people republic of china southeast asia the countries comprising asean are central to united states interests in southeast asia throughout the past year our relations with asean have continued to expand as our consultative arrangements were strengthened the stability and prosperity of southeast asia have been severely challenged by vietnamese aggression in cambodia during this year we will continue to encourage a political settlement in cambodia which will permit that nation to be governed by leaders of its own choice we have taken all prudent steps possible to deter vietnamese attacks on thai territory by increasing our support to the thais and by direct warnings to vietnam and the the other members of asean have stood firmly behind thailand and this in great measure has helped to contain the conflict we have been gratified by thailand courageous and humane acceptance of the cambodian refugees middle asia events in iran and afghanistan have dramatized for us the critical importance for american security and prosperity of the area running from the middle east through the persian gulf to south asia this region provides of the world oil exports supplying most of the energy needs of our allies in europe and japan it has been a scene of almost constant conflict between nations and of serious internal instability within many countries and now one of its nations has been invaded by the soviet union we are dealing with these multiple challenges in a number of ways middle east first it has been a key goal of my administration since 1977 to promote an enduring resolution of the is so essential to bringing stability and peace to the entire region following the camp david summit of august 1978 in march 1979 i helped bring about the signing of a peace treaty between egypt and first time in 30 years of middle east conflict that peace had shined with such a bright and promising flame at the historic signing ceremony at the white house prime minister begin and president sadat repeated their camp david pledge to work for full autonomy for the west bank and gaza since then egypt and israel have been working to complete this part of the camp david framework and to provide an opportunity for the palestinian people to participate in determining their future i strongly support these efforts and have pledged that we will be a full partner in the autonomy negotiations we will continue to work vigorously for a comprehensive peace in the middle east building on the unprecedented achievements at camp david at the same time i have reinforced america commitment to israel security and to the right of all nations in the area to live at peace with their neighbors within secure and recognized frontiers persian gulf in recent years as our own fuel imports have soared the persian gulf has become vital to the united states as it has been to many of our friends and allies over the longer term the world dependence on persian gulf oil is likely to increase the denial of these oil us or to threaten our security provoke an economic crisis greater than that of the great depression 50 years ago with a fundamental change in the way we live twin threats to the flow of regional instability and now potentially from the soviet that we firmly defend our vital interests when threatened in the past year we have begun to increase our capacity to project military power into the persian gulf region and are engaged in explorations of increased use of military facilities in the area we have increased our naval presence in the indian ocean we have been working with countries in the region on shared security concerns our rapid deployment forces as described earlier could be used in support of friendly governments in the gulf and southwest asian region as well as in other areas south asia the overwhelming challenge in this region will be dealing with the new situation posed by soviet aggression in afghanistan we must help the regional states develop a capability to withstand soviet pressures in a strengthened framework for cooperation in the region we want to cooperate with all the states of the region in this india and pakistan with sri lanka bangladesh and nepal in this new situation we are proposing to the congress a military and economic assistance program to enable pakistan to buttress its defenses this is a matter of the most urgent concern and i strongly urge the earliest possible approval by the house and senate we are also working closely with other friends of pakistan to increase the resources available for pakistan development and security we are also pursuing the possibility of gaining access to military facilities in the region in time of trouble we are prepared to work closely with our friends in the region on a cooperative basis to do whatever is required to ensure that aggressors would bear heavy costs so that further aggression is deterred a high priority for us in the region is to manage our nuclear concerns with india and pakistan in ways that are compatible with our global and regional priorities the changed security situation in south asia arising from the soviet invasion of afghanistan calls for legislative action to allow renewed assistance to pakistan but this in no way diminishes our commitment to work to prevent nuclear weapons proliferation in pakistan or elsewhere steady growth of our economic assistance is also essential if the countries of south asia are to achieve growth and true stability africa a peaceful transition to majority rule in southern africa continues to be a major goal of the united states we gave our fullest support to the successful british drive to reach an agreement among all parties in rhodesia the process of implementation will not be easy but the path is now open to a peaceful outcome with our european allies canada and the african states directly concerned we also are making progress toward independence and majority rule for namibia the momentum resulting from successful resolution of the rhodesian conflict should aid in these initiatives congressional support for the executive branch decision to maintain sanctions on rhodesia until the parties reached agreement on a and an impartial elections process had begun was instrumental in creating the conditions necessary for agreement now that the united states european trading partners and the surrounding african states have lifted sanctions the process of economic reconstruction in to be begin with the creation of an independent zimbabwe after many years of fighting we will be prepared to cooperate in a coherent development plan for the poor nations in the southern africa region our active support for and racial equality in southern africa has enabled the united states to develop a continuing and effective dialogue with governments throughout the continent as africa grows more important to us for economic political and strategic reasons we will be strengthening our ties of mutual interest with africans we will continue to participate in their first to help africans resolve their political problems and maintain stability in their continent whether in the horn or in other areas of the continent we will also provide to friendly nations security assistance when needed for defense of their borders north africa in 1979 the united states moved to help a friend by strengthening our arms supply relationship with morocco in assisting morocco to deal with attacks inside its internationally recognized frontiers we seek conditions of greater security and confidence in which a political settlement of the western sahara conflict can be effectively pursued though not itself a mediator the united states in the months ahead will encourage the countries in the area to resolve their differences peacefully in order that the vast economic potential of north africa can be exploited for the of the people living there latin america since my inauguration i have worked hard to forge a new collaborative relationship with the nations of latin america and the resting on a firm commitment to human rights democratization economic development and the events of the turbulence in central america and the us with opportunities to move toward these goals there was encouraging progress in the area of human rights and democratization in the western hemisphere this past year the inauguration of a new democracy in ecuador and the strong effort by the andean countries to preserve democracy in bolivia were positive steps during 1979 i met with the president of mexico twice to discuss the opportunities and difficult issues before our two countries we have taken worthwhile steps including an agreement on natural gas and on trade on october 1 vice president mondale and many leaders from latin america traveled to panama to celebrate the coming into force of the panama canal treaties the transition to a new relationship and a new structure to manage the canal was smooth and effective because of the contributions and the mutual respect between panamanians and americans the vice president also traveled to brazil and venezuela the secretary of state met with leaders in quito at the inauguration of the new democratic president of ecuador and in lapaz at the oas general assembly these meetings have helped us to develop further the close consultative ties which are so important to a free and balanced community of nations in the hemisphere also in 1979 the united states moved to a much closer economic and political relationship with the increasingly significant andean pact countries a memorandum of understanding on economic relations was signed in washington in november central america and the caribbean region are undergoing a period of rapid social and political change there is a threat that intervention by cuba may thwart the desire of the people of the region for progress within a democratic framework and we have been working closely with the governments in the region to try to aid in the developmental process of the region and are prepared to assist those threatened by outside intervention the caribbean group which is coordinated by the world bank and which we helped establish has now become an important factor for development in the region adding 260 million in concessionary resources to the region we have increased our aid to the caribbean reprogrammed loans and are seeking prompt congressional action on a supplemental of 80 million for nicaragua and central america my science advisor frank press led a large delegation of scientists and educators to barbados peru venezuela and brazil to forge new and fruitful ties between our countries in important areas of science and technology 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 an essential lesson to be drawn from iran is that there are compelling foreign policy as well as domestic economic reasons for lessening our dependence on foreign oil in response to a series of united states proposals the industrial countries adopted in 1979 a cooperative energy strategy for the 1980 its main elements are collective restraint on oil imports intensified efforts to conserve oil and boost production of conventional substitutes for oil and collaborative research development and commercialization of new fuel technologies at the tokyo economic summit in june the heads of government of the seven major industrial democracies agreed that they must take responsibility for curbing oil demand by the end of the year 20 industrialized nations members of the international energy association had agreed not only to enforce equitably allocated ceilings on their oil imports but to create a system for quickly adjusting the ceilings to changes in world oil supply completion of the detailed agreements to execute the global oil process is at the head of the international energy agenda for 1980 at the 1980 economic summit in venice i intend to propose further joint action to smooth the transition from oil to more abundant fuels and to slow the growth in oil prices in support of the international oil strategy the administration and the united states coal industry are launching joint marketing efforts to make this country a major exporter of steam coal with assurance of reliable united states coal supply at competitive prices many of the electric power plants to be built in the 1980 and 1990 can be rather than oilburning coal exports will help us pay for our declining but costly oil imports a new source of natural gas supply for the united opened through the conclusion of negotiations through close cooperation with our northern neighbor canada the administration cleared the way for expanding the flow of canadian natural gas to the united states and for private development of the alaskan gas pipeline across canada to the lower 48 states we continue to believe that power will play an essential role in meeting the energy needs of many nations but with effective safeguards against the proliferation of nuclear weapons international monetary policy we are moving forcefully to establish the fundamental economic conditions for a strong dollar in 1979 the balance of payments was in approximate balance for the first time in three years despite substantially higher oil import costs our economic policies and strong energy program should provide a basis for further improvement of course the outcome depends in part also upon responsible pricing behavior by opec and other oil producers we support the efforts under way to strengthen the international monetary system i urge the congress to enact promptly legislation permitting the united states to increase its quota in the international monetary fund imf as part of the general expansion of fund resources we welcome the measures being taken by the imf to improve its ability to promote sound economic and exchange rate policies in all member countries we also welcome the study of the possible establishment of a substitution account to strengthen the international monetary system by promoting the role of the special drawing right as the principal reserve asset in the system trade under the direction of my special trade representative we brought to a successful conclusion the multilateral trade negotiations the most ambitious set of negotiations to reduce barriers to international trade in a decade the resulting mtn agreements covering a broad spectrum of trade issues were concluded and ratified by overwhelming majorities of the united states congress these binding commitments signed by all the major trading nations provide the framework for a new era in international trading relations with them and with the developing nations this makes clear my resolve and that of the american people to resist the dangers of protectionism the reorganization of the federal government trade agencies which i directed will assure more effective and prompt governmental action to exploit the export opportunities afforded by the mtn the plan approved by congress this fall establishes a strong authoritative voice in the executive office of the president to provide coherence and leadership to united states trade policy negotiations and the implementation of the mtn trade codes the reorganization establishes the office of the trade representative and strengthens the commerce department sugar in 1979 congress ratified the international sugar agreement thus fulfilling a major commitment of this administration the agreement is an important element in our international commodity policy with implications for our relations with developing countries particularly sugar producers in latin america this agreement and other measures my administration has taken already have helped to stabilize sugar prices and bring high domestic prices into line with those prevailing in the world marketplace producers and consumers alike will benefit from a more stable market for this essential commodity we need prompt enactment of implementing legislation for this agreement tin at year end congress approved stockpile disposal legislation which will permit the general services administration to sell metric tons of tin from our strategic stockpile and contribute up to metric tons to the international tin organization ito buffer stock this fulfills a united states pledge made during the conference on international economic cooperation and represents a major step forward in our relations with producing countries in the developing world we will consult with other members of the ito to ensure that our tin disposals do not disrupt markets and take into account the needs of both producers and consumers common fund the united states joined members of the united nations conference on trade and development both developed and developing nations in negotiating an agreement on the framework of a common fund to help international commodity agreements stabilize the prices of raw materials negotiations are now underway on the final articles of agreement of the fund the united states also participated in successful negotiations on an international rubber agreement economic cooperation with developing nations our relations with the developing nations are of central importance to the united states the fabric of our relations with these countries has both political and economic dimensions as we witnessed in recent weeks when nations of the third world took the lead in condemning the soviet invasion of afghanistan our ability to work together with developing nations toward goals we have in political independence the resolution of regional tensions and our growing ties of trade for us to maintain the policy of active engagement with the developing world that we have pursued over the past three years the foreign assistance legislation which i will be submitting to you for fy 81 provides the authority and the funds to carry on a cooperative relationship with a large number of developing nations prompt congressional action on this legislation is essential in order to 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 issues protect western interests and counter soviet influence we will also be asking congress to enable us to honor our international agreements for multilateral assistance by authorizing and appropriating funds for the international financial institutions finally the administration and the congress agreed in 1979 on fundamental changes in the way the united states government is organized to conduct economic and technical relations with the developing nations i submitted and the congress approved a plan to consolidate in a small body the international development cooperation agency idca responsibility for direct united states development assistance for guidance to united states representatives in multilateral development agencies and for presenting our development interests in federal government policy bodies dealing with trade and other economic relations with developing nations i also submitted and the house approved in the 1979 session of congress a plan to establish the institute for scientific and technological cooperation istc a constituent element of the idca group of agencies once approved the istc will carry out research as well as support research by foreign scientists on technological means of reducing poverty in developing nations war on hunger one of the main economic problems facing developing countries is lagging food production we must help these countries meet this only so that their peoples will be free from the threat of continuing hunger but also so that their societies will be strong enough to resist external pressure i have directed that united states bilateral and multilateral aid be geared increasingly to this goal as recommended by our hunger commission chaired by sol linowitz we are urging other donor countries to join in more effective efforts to this end 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 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 ultimate aim of our foreign policy must be to preserve freedom for ourselves and to expand freedom for others this is a matter both of national principle and of national interest for we believe that free and open societies are not only better able to meet the rising expectations of their people they are also better able to accommodate often conflicting internal pressures before popular frustrations explode in violent and radical directions we do not seek to impose our system or institutions on others rather we seek to support in practical and concrete ways the efforts of other nations to build their own institutions in ways that will meet the irrepressible human drive for freedom and justice human rights policy commands the strong support of our citizens and of the congress the world climate increasingly favors human rights progress despite new turbulence and conflict the past year featured some encouraging positive developments we can not and should not claim credit for them but it is clear that we are part of a growing movement during 1979 we saw further strengthening of democratic practices in spain and portugal with free elections in both countries disappearance of several of the world most repressive regimes freeing of political prisoners in asia africa and latin america return to democratic rule in several latin american countries and widespread progress in reducing human rights violations in the region growing strength of international human rights institutions the court of human rights held its first meeting preparations began for another conference to review compliance with the helsinki accords to be held in madrid this november the oau took long strides toward establishing a human rights commission for africa un bodies became increasingly active in their human rights efforts the united states is still not a party to the key human rights treaties that establish world standards and implementing machinery in early 1978 i sent for senate approval four such treaties the american convention on human rights the convention on racial discrimination and the un covenants on civil and political rights and on economic and social and cultural rights hearings were held in 1979 no single action by this country would do more to advance the because of human rights than senate approval of these instruments and a fifth human rights treaty sent to congress previously the genocide convention i urge the earliest possible senate action humanitarian aid the mass exodus of refugees from vietnam reached a crescendo in summer 1979 with over people a month fleeing repression and economic privation most fled by boat and many were lost at sea in july at a special un meeting on refugees vice president mondale presented a major united states program to rescue and help support and resettle the new refugee population i doubled to a month the number of indochinese refugees the united states in accord with our finest traditions would absorb over the year ahead the vietnamese invasion of kampuchea in late 1978 gravely jeopardized the supply of food for the already decimated and brutalized khmer people in october i announced that the united states would pay of the costs of the international relief program mounted jointly by unicef and the international committee of the red cross leaders of thirtyfive church and voluntary agencies with white house encouragement are engaged in their own large program for refugees in early november carter visited refugees on the border and reported back to me the united states voluntary agencies and the american people in response our efforts to avert a mass famine were accelerated the obstacles remain warfare and aggression by vietnam by the phnom penh authorities of much of the aid movement of up to hungry khmer to and across the thai border where they can be fed and helped but americans will continue their efforts both public and private to avert the famine that looms new help for our efforts will come from the national committee formed in early 1980 by leading citizens to help in mobilizing and supporting the sustained effort essential to achieve this humanitarian goal as the year began we are also considering new means of helping through our contribution to the un high commissioner for refugees and in other ways the mounting afghan refugee population in pakistan and other desperate refugee situations such as somalia it can not be ignored that the destructive and aggressive policies of the soviet union have added immeasurably to the suffering in these three tragic situations i have asked the heads of the appropriate departments of the executive branch to play an active role in the select commission on immigration and refugee policy to formulate a new approach to deal with sensitivity with the difficult subject of people arriving on our shores from latin america my meeting with pope john paul ii during his historic and unprecedented visit to the united states helped raise the world consciousness in connection with pressing problems of famine homelessness and human rights our talks spurred positive action in many of these areas notably indochina and set the stage for further action in 1980 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 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 the soviet union and the united states i entered office committed to assert american leadership in stemming the proliferation of nuclear could create fundamental new instabilities in critical regions of the world and threaten the security of the united states this should not and can not be done unilaterally the cooperation of other suppliers of nuclear technology and materials is needed this issue must not become a confrontation we have been proceeding on a number of fronts have been seeking to encourage nations to accede to the treaty or to accept international safeguards the nuclear act calls for such safeguards in connection with united states nuclear exports international nuclear fuel cycle evaluation infce has demonstrated that suppliers and recipients can work together its results will be published in a month while differences remain it will provide a broader international basis for national decisions which must balance energy needs with concerns 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 has not yet been ratified by the united states senate working together with the congress i remain committed to the vigorous pursuit of our objectives limitations on strategic arms the most prominent of our nuclear arms control efforts is of course salt ii the signing of the treaty brought to an end painstaking negotiations carried out under three administrations of both parties ii is in our mutual interest it is neither an american favor to the soviet union nor a soviet favor to the united states of the salt ii treaty would represent a major step forward in restraining the continued growth of soviet strategic forces because salt ii reduces superpower competition in its most dangerous manifestation this treaty is the single most important bilateral accord of the decade ii will permit us better to maintain strategic equivalence in nuclear weapons and devote our defense increases more heavily to our highest priority needs for conventional force improvements it the soviets can add more power to their forces and better conceal from us what they are doing salt ii and the beginning of salt iii deeper cuts would take many more years to achieve salt ii our efforts to control the proliferation of nuclear weapons will be more difficult i believe that the senate will ratify salt ii because the treaty is in its simplest terms in the interest of our nation security but i do not believe it advisable at this time to bring up the treaty for consideration on the senate floor the congress and the executive branch must first deal with the pressing matters arising from the soviet invasion of afghanistan conclusion as we enter the decade of the 1980 we face challenges both at home and abroad which will test our qualities as a toughness and willingness to sacrifice for larger goals our courage and our vision for this nation to remain secure for this country to prosper we must rise above narrow interests the dangers of disunity are in a world of major power confrontation the rewards of a new national consensus and sense of purpose are equally clear 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 jimmy carter the white house january 21 1980
congress united states state union address devoted discussion important challenges facing country enter 1980 coming year challenges receive highest priority greatest efforts however also many significant areas receive personal commitment well administration 2nd session 96th congress important congress along public aware vital areas concern listen state union address way context address administration full message 1980 best understood reason sending state union message congress today several days state union address congress last three years administration developed cooperative productive record congress landmark legislation enacted major domestic international problems addressed directly resolved spirit mutual trust respect restored executive legislative relations indeed period recent past comparable record progress achievement american people much remains done afford rest record fail complete agenda begun 1970 ignore new challenges 1980 continuing work together administration congress meet goals cooperative efforts help ensure stable prices economic growth return energy security efficient responsive government strong unsurpassed defense capability world peace program placed congress since 1977 combined new initiatives placing congress year enable us reach goals task session complete work program doubt time waste record progress took office 1977 nation faced number serious domestic international problems economy still recovered serious recession since world war ii unemployment near 8 almost 8 million american workers unemployed national energy policy existed dependence foreign oil rapidly increasing public trust integrity openness government extremely low federal government operating inefficiently administering essential programs policies major social problems ignored poorly addressed federal government defense posture declining result continuously shrinking defense budget strength nato alliance war ii low tensions israel egypt threatened another middle east war america resolve oppose international aggression human rights violations serious question past 36 months clear progress made solving challenges found january 1977 unemployment rate end last year representing 25 decrease three years 9 million jobs created americans 98 million work time history major parts comprehensive energy program enacted department energy established administer program congress verge enacting remaining major parts energy program confidence government integrity restored respect government openness fairness renewed government made effective efficient civil service system completely reformed first time century 13 reorganization initiatives proposed congress approved implemented two new cabinet departments created consolidate streamline government handling energy education problems inspectors general placed cabinet department combat fraud waste abuses budgeting practices instituted throughout federal government cash management reforms saved hundreds millions dollars process issuing regulations reformed eliminate unneeded incomprehensible regulations procedures established assure citizen participation government airline industry deregulated enormous savings consumer critical social problems many long ignored federal government addressed directly boldly urban policy developed implemented reversing decline urban areas food stamp program expanded purchase requirement eliminated social security system refinanced put sound financial basis full employment act enacted federal assistance education expanded 75 minimum wage increased levels needed ease effects inflation affirmative action pursued blacks hispanics women appointed senior government positions judgeships time history era ratification deadline extended aid ratification effort minority business procurement federal government doubled decline defense spending reversed defense spending increased real rate 3 1979 proposing real increase defense spending level 20 next 5 years nato alliance revitalized strengthened substantially increased resources new deterrent weapons improved coordination increased emphasis also given conventional force capabilities meet crises areas world egypt israel ended 30 years war peace treaty also established framework comprehensive peace middle east commitment nation pursue human rights throughout world nations friendly made clear resolve oppose aggression illegal invasion soviet union afghanistan supported tough action legislative priorities coming legislative session last presidential term deeply committed finishing agenda placed congress agenda comprehensive demanding also absolutely essential nation plan add significantly agenda year importance enacting proposals already congress relatively short congressional session facing us limiting major new proposals critical youth employment general revenue sharing utility oil use reduction nuclear waste management nuclear regulatory commission organization standby gasoline rationing plan initiatives implementing response soviet invasion afghanistan convinced new initiatives along major proposals previously made congress enacted year dedicated effort part administration congress pledge effort part administration previous three years working toward basic goals ensuring economic strength creating energy security nation enhancing basic human social needs making government efficient effective protecting enhancing rights liberties preserving developing natural resources building america military strength working resolve international disputes peaceful means striving resolve pressing international economic problems continuing support building democratic institutions protecting human rights preventing spread development nuclear weapons highest legislative priorities areas year ensuring economic strength fy 1981 responsible restrained budget whose enactment help control federal spending significantly reduce federal deficit aid fight inflation hospital cost long overdue legislation major weapon fight inflation save consumers billions dollars single important bill congress youth education training employment new initiative designed educate train youth secure hold meaningful jobs provide enhanced opportunities disadvantaged youth well improve productivity work force creating energy security nation windfall profits size important energy tax measure agreed conferees imperative final agreement tax reflecting sound energy policy occur outset session congress act promptly agreement energy mobilization also essential vital measure effort eliminate unnecessary red tape construction needed energy facilities agreed promptly conferees congress without substantive waivers law energy security conferees congress also need act expeditiously legislation bill critical nation beginning serious massive program develop alternative energy fuels dependence foreign oil severely reduced necessary remove critical national effort constraints bind government agencies legislation contains well vital energy conservation gasohol provisions needed move forward national efforts areas utility oil use new initiative aid effort reduce reliance oil requiring nation utilities substantially convert oil energy facilities nation utilities defined timetable bill key tool effort increase use coal abundant natural fuel source standby gasoline rationing legislation enacted last year propose congress standby gasoline rationing plan prompt approval required prepared significant energy supply interruption enhancing basic human social needs national health time improving health care provided citizens long overdue convinced health plan proposed last year provides realistic affordable beneficial way providing citizens health care need deserve provide millions americans health coverage first time improved medicare coverage elderly protect every american disastrous costs extended illness national health effort also needs prompt enactment two important health assurance program provide needed health care disadvantaged children mental health systems act needed reform mental health programs welfare nation welfare system remains disgrace recipient taxpayers encourages family instability encourages waste differing provisions house approved sound welfare reform proposal call upon senate act rapidly issue welfare reform become reality session general revenue propose reauthorization important program state local governments order continue providing funds depend upon meet essential social operating needs program essential element partnership forged state local governments critical continued economic health states cities counties countercyclical revenue work congress provide aid needed help financially pressed local areas senate already acted urge prompt house passage early session energy committed seeking authority continue assistance program enacted request last year give poor protection rising energy costs economic legislation reauthorize improve government ability provide economic development assistance key ingredient implementing urban rural policy urge prompt action conference making government efficient effective regulatory continue pursue efforts eliminate unnecessary regulatory burdens concentrate seeking approval year regulatory process reform bill trucking rail deregulation proposals banking reform measures passage sunset legislation communications reform measures progress made first session final passage come session ends nuclear regulatory commission stated responding kemeny commission report propose reorganization nuclear regulatory commission order improve management emergency operating capabilities essential step improvement safety nuclear industry protecting enhancing rights liberties equal rights congress passed equal amendment possibility ratification lies state legislatures essential members congress help state legislatures toward end working members states yet ratified stand tall nation seeking enhance human rights home long deny american women home fair continue press enactment important civil rights initiative enable government enforce fair housing laws effectively promptly critical civil rights legislation congress years promise equal housing opportunity far long empty promise bill help make promise reality intelligence already proposed legislative charter fbi soon proposing legislative charter intelligence community charters protect citizens rights enabling agencies meet responsibilities preserving developing natural resources alaska highest environmental priority congress continues enactment legislation preserve protect alaska lands urge senate follow house lead area oil hazardous wastes program needed mitigate effects oil hazardous substance spills releases uncontrolled hazardous waste dumps growing national problem nuclear waste propose series legislative administrative initiatives implement nation first comprehensive nuclear waste program building america military strength defense department authorizations proposing defense budget containing real growth outlays essential congress support increase amount strengthen defense capabilities working resolve international disputes refugee legislation legislation necessary improve refugee program provide needed domestic assistance refugees prompt house action would assure sound framework within accommodate increasing flow refugees striving resolve international economic problems bilateral multilateral foreign proposing foreign assistance legislation provides authority needed carry forward cooperative relationship large number developing nations prompt congressional action essential china trade seeking early approval congress trade agreement reached china agreement represents major step forward process toward improved economic relations china continuing support building democratic institutions protecting human rights special international security assistance sending congress military economic assistance program enable pakistan strengthen defenses prompt enactment one highest legislative priorities human rights continue press senate ratify five key human rights american convention human rights convention racial discrimination un covenants civil political rights economic social cultural rights genocide convention preventing spread development nuclear weapons salt ii firmly believe salt ii nation security interest add significantly control nuclear weapons soviet invasion afghanistan believe advisable senate consider treaty ensuring economic strength economic program since took office designed achieve several goals continue economic growth unemployment inflation past three years considerable progress made areas economy recovered deepest recession since world war ii sustained economic recovery last three years reduced 25 employment highest level history increased unacceptable levels large part opec price increases program put place moderate inflation equitable effective way 1980 continue steady economic policies worked date succeed making economy strong however congress cooperation confident work together successfully year achieve economic goals inflation inflation continues serious economic problem restraining inflation remains highest domestic priority inflation current unacceptably high levels direct result economic problems building virtually without letup decade easy answers quick solutions inflation eliminated overnight roots economy deep causes pervasive complex know spend way problem gradual reduction inflation rate easing economic pressures causing inflation hope lies program public private restraint program attack structural causes inflation policy pursued continue pursue last year especially difficult time policies opec increased prices 80 thus added three points inflation rate energy price increases excluded inflation last year would nearly three percentage points lower biggest challenge policy keep energy price increases permanent damage prevent dangerous acceleration wageprice spiral program successful accomplishing inflation slow year 1981 even lower progress result persistence battle inflation many fronts budget restraint budget deficit fy 1979 lowered billion 50 fy 1976 level regulatory reform flood new costly government regulations slowed procedures ensure achieve regulatory goals manner took hold guidelines guideline standards followed vast majority unions negotiated contracts nearly every major corporation country energy energy legislation put place past two years began reduce dependence foreign oil consumption important energy fuels gasoline thereby reducing ability oil producing nations disrupt economy productivity began introduce policies increase industrial innovation thereby productivity decline productivity growth must reversed improve real living standards long term 1980 congress cooperation continue aggressive fight inflation major fronts budget restraint deficit fy 1981 budget less half fy 1980 budget deficit represent 75 reduction deficit inherited regulatory reform pursuing deregulation legislation trucking rail banking communications industries well regulatory management reform legislation bills enable us eliminate unnecessary regulatory burdens labor accord pay advisory price advisory committees established result last year historic accord organized labor enable us better implement coordinate labor business private restraint necessary part efforts accord signals willingness labor full partner fight inflation energy expect enact major energy windfall profits tax energy mobilization board energy security session legislation combined voluntary mandatory energy conservation measures take even stronger hold year enable us reduce dependence foreign oil productivity implementing industrial innovation program expanding commitment budget research development council wage price stability council wage price stability played vital role efforts council staff lead responsibility within executive branch implementing voluntary wage price monitoring program without council continuing role effort could begin assess whether private sector cooperating standards therefore essential council along staff operation reauthorized early year reauthorization contain amendments interrupt restrain important essential work council staff 1981 budget budget send congress fy 1981 meet nation critical needs continue sound budgetary policies administration pursued throughout term office single year budget accurately portray philosophy administration however clear pattern budgets spending coupled careful targeting resources areas greatest need 1981 budget continues pattern lowering deficit roughly 50 billion ran office time recommend increases programs critical national concern last year budget austere proposed eliminating programs reducing spending others tough decisions proven correct provided country clear benefits pleased congress approved budget virtually form proposed result actions rate federal spending growth slowed importantly widespread expectation federal budget would continue upward spiral unchecked proven false moved path necessary achieving balanced budget near future helped fight inflation 1981 budget continue policy restraint real growth spending close zero deficit cut half last year deficit percent budget gnp second lowest point decade smallest deficit seven years economy continue grow rate held unemployment rate current level budget would surplus time proposing vital spending increases 1981 budge increases uncontrollable programs increases automatically required existing law also discretionary increases part strengthen defense forces enhance crucial investments energy production conservation addition propose major new initiative reduce youth unemployment state local governments receive continued fiscal support general revenue sharing extension propose developing budget year several respects difficult previous years international turmoil threatens vital interests energy problems dampen economy alter domestic priorities inflation erodes basic programs adding new pressures federal spending confident budget responds needed nation pressing needs positions us responsible effective government 1980 fiscal policy president concerned tax burden citizens result worked congress enact two major tax cuts 1977 proposed congress passed 8 billion individual tax cut part economic stimulus package 1978 proposed congress passed 21 billion individual business tax cut year two cuts reduce americans tax burden 31 billion recognize interest another tax cut year 1981 budget proposes tax cuts long inflation continues sign recession top budgetary priority must reduction deficit long run continued tight control budget expenditures hold share federal spending gnp inflation hand raising percentage national income collected taxes time two developments tax reductions possible still maintaining fiscal restraint needed control inflation however timing structure tax reductions critical importance must dictated economic circumstances urgency fight requires defer tax reductions time tax reductions put effect prematurely wrong economic conditions could make inflation worse overstimulating economy inflation still running unacceptably high levels virtually economic forecasters predict onset mild recession administration estimates budget receipts expenditures fy 1981 budget assume recession however none current economic statistics yet show overall economic decline recent months economy displayed much strength earlier forecasts predicted forecasts impending recession may therefore prove wrong previous ones employment held part due unsatisfactory productivity performance enact tax cuts would run serious risk adding inflationary demand pressures economy continues grow strongly predicted forecasts present high inflation afford risk tax reductions timely designed insofar possible way achieves multiple reducing tax burden stimulating growth raising investment productivity reducing inflation well particular significant part tax reduction directed provision incentives increased investment improve productivity expand capacity adjust higher energy prices serious consideration given case tax cuts individuals lowering social security payroll taxes since half reductions would go towards lowering business costs prices necessities inflation fight require cautious taxes reduced done require ignore changes economic conditions economic situation prospects sharply worsen consider recommendations deal situation circumstances tax cuts measures could taken improve prospects employment growth reduce business costs assist severely damaged recession without threatening set inflationary demand pressures however current economic situation warrant measures would inappropriate propose time employment administration working closely congress made significant progress reducing serious unemployment problems existed three years ago december unemployment rate represents 25 reduction december 1976 rate million people jobs beginning administration total employment reached high 98 million december nonwhite employment increased million persons adult female employment increased 5 million persons employment black teenagers actually decreased period increased 15 since took office although unemployment rates youth especially minority youth still high progress made continue make progress 1980 result framework already established strengthened year comprehensive employment training act ceta reauthorized 1978 four years full employment act became law many years effort private sector initiatives program new partnership government private sector assist disadvantaged unemployed successfully implemented targeted jobs tax credit enacted provide employers economic incentives needed increase hiring unemployed youth others historically difficulty finding jobs massive effort reduce problems causing excessive youth unemployment rates strengthened revitalized year new 2 billion youth education training employment program year work aggressively make certain framework continues successfully implemented even effort may sufficient economic forecasts accurate keep unemployment rate rising monitoring economy closely unemployment dramatically increase prepared consider actions counter increase consistent overriding concern accelerating inflation time though unemployment lowest level years would premature unwise propose measures might helpful time high unemployment youth employment fact persistently high unemployment among poor minority youth three decades demonstrates clearly inadequacies system teaching training helping young people find keep decent jobs economic challenges 1980 require energy commitment entire american work force afford waste anyone talents become society ideals must provide economic opportunity administration committed renewed national effort remove unnecessary obstacles productive life every american past three years developed solid record increased resources youth employment training programs 4 billion conducted largest experimental youth program effort ever attempted reduced overall youth unemployment rates 15 good enough youth unemployment especially poor minorities still unacceptably high based experience gained past three years advice thousands americans helped vice president task force youth employment last nine months administration devised new approach announced two weeks ago program significant new domestic initiative sending congress year federal government making comprehensive effort ever eradicate causes excessive harmful youth unemployment 1982 new program increased federal resources committed reducing youth unemployment 2 billion total 6 billion program two key components school youth major effort department education teach basic skills youth junior senior high schools located communities providing work experience training school hours disadvantaged youth provide department labor redesigned expanded work experience training programs well basic skills programs managed department education department education basic education skill training program fully implemented provide basic education employment skills approximately 1 million junior senior high school students poorest urban rural school districts around country new program emphasize skills youngsters including help students limited ability english planning active involvement teachers parents employers community link work way motivate students stay school major role vocational education preparing young people work department labor new youth employment program fully implemented provide education work experience training labor market information services young people year new resources added current programs serve million olds year program emphasize training work experience opportunities older youth performance standards participants program operators incentives encourage greater cooperation ceta sponsors local employers school officials three existing ceta youth programs closer coordination summer employment program simplify local administration reduce paperwork learned 1960 1970 know must concentrate administration management know must tough performance standards merely allocation formulas know partnership government elements private sector must made reality focusing basic skills key job success future also know hope young people lives great country precious resource must keep hope alive working closely intensively congress enact carry youth employment program soon possible trade past year one unmatched historic achievement vital component trade 1979 nearly 3 million jobs manufacturing industries one every seven jobs manufacturing depended upon export performance overseas markets exports key contributor growth economy 1979 exports agricultural industrial goods grew unparalleled 35 billion reaching level 180 billion represented increase 25 exports 1978 record increase exports coupled slower rate growth imports resulted substantial improvements 5 billion balance trade furthermore rapid growth service exports 1979 led 13 billion improvement current account bringing account deficit 1978 near balance 1979 expect 1980 exports continue strengthen continue conserve limit imports oil improve trade balance position dollar future american exports bright remain despite necessity suspending certain exports soviet union administration accomplished several goals last year assuring continue greater exports therefore job possibilities workers farmers improve condition access exports foreign markets signed force july last year new trade act reflected two years hard bargaining recently concluded round multilateral trade negotiations negotiations included major developed lesser developed countries resulted agreements strengthen rules conduct international trade open new markets exports negotiations historic importance scope accomplishment success attributable close cooperation existed negotiations congress private sector administration negotiating success challenges us take advantage opportunity improving export performance meet challenge proposed 1979 major reorganization government trade policy export promotion activities reorganization strengthen government coordination trade field provide improved basis protecting american interest recently negotiated trade agreements put reorganization effect congressional approval earlier month changes initiated trade reorganization ensure trade united states trading partners conducted fairly openly consistent decisions suspending certain types trade soviet union administration seeking year find additional ways foster export expansion studying possibility agreements expanded trade traditional newer trade partners including china look forward working congress ways continue improve trading position turn help maintain prosperous american economy small business year marks high point three years accomplishment small business administration beginning decade continuing effort strengthen large vital sector economy white house conference small business convened eighteen months ago concluded deliberations fulfills pledge made 1976 voice small business would heard administration anticipation conference called head every executive department agency propose least one initiative benefit small business 160 separate initiatives proposed examination many already put effect made great strides reforming regulatory process cutting federal paperwork developing flexible regulations provide minimizing eliminating burdens smaller businesses capital gains tax significantly reduced corporate taxes small businesses lowered also increased small business administration lending activity billion 1976 billion 1979 increase 72 since 1977 doubled federal purchases goods services minority firms billion billion 1979 confident purchases exceed billion year put place comprehensive policy strengthen role women business directed federal agencies take affirmative action include women management assistance programs sba advocacy role strengthened direction sba added membership regulatory council productivity council help assure problems issues facing small business addressed wherever relevant policy decisions made federal government reduce paperwork regulatory burdens small businesses face raising capital recently proposed small business issuers simplification act legislation exempt burdensome registration requirements federal securities laws sales securities small businesses institutional investors banks insurance companies pension funds others making investments least finally last week sent congress message small business emphasize vital importance small business report steps already taken plan take 1980 strengthen small business minority business beginning term worked congress increase opportunities minority business result efforts enormous progress made last three years federal procurement minority owned firms increased nearly two half times federal deposits banks nearly doubled minority ownership radio television stations increased 65 almost 15 funds spent local public works act 1977 went firms section 8 program operated small business administration reformed strengthened year administration committed expanding upon progress made date year committed tripling 1977 level federal procurement firms doubt meet goal 1981 budget improves targeting small business administration loans businesses also expand management technical training assistance minority firms provide substantial funding increases minority capital development sba minority enterprise small business investment company mesbic program also proposing congress minority business legislative initiative establish department commerce minority business development agency agency successor office minority business enterprise established last year administrative authority believe congressional authorization would strengthen operating abilities women business last year announced new policy strengthen foster growth businesses new budget includes funds make policy reality increasing sba direct loans women 50 assisting women gaining access sources financing expanding management technical assistance women insuring women bare fuller access opportunities start maintain enterprises start genuine momentum take full advantage contribution women make growth productivity economy ii creating energy security since took office highest legislative priorities involved development nation first comprehensive energy policy struggle achieve policy difficult us accomplishments past three years leave doubt country finally serious problems caused foreign oil accomplishments lost however progress stopped fail move forward even year single panacea solve energy crisis must rely encourage multiple forms crude oil natural gas solar nuclear conservation therefore essential congress enact major energy bills proposed last year enactment immediate highest legislative priority year windfall profits tax highest immediate legislative priority session prompt passage sound windfall profits tax crude oil last april proposed tough windfall profits tax recoup portion unearned income would accrue oil companies result phased decontrol domestic crude oil prices opec price increases essential revenues invested behalf americans help us become energy secure nation revenues tax used support key national energy goals energy assistance improved expanded mass transit energy supply conservation programs windfall tax proposed also carefully designed provide incentives needed increase domestic oil production proposal expect barrel per day increase domestic production due decontrol higher world prices without windfall profits tax production would marginally higher 1985 american people clearly want national energy needs clearly tough windfall tax afford delay conference committee reached agreement tax raising 227 billion next ten years tax level acceptable provided components tax consistent sound energy policy urge conferees congress approve forthwith tax sign higher legislative priority energy mobilization board last july together comprehensive energy program asked congress join create energy mobilization board emb board cut burdensome unnecessary red tape reach prompt decisions designated priority energy projects streamlined without overriding substantive law strongly oppose board key element strategy attain energy security cutting foreign oil imports coming years prompt passage emb one highest priorities year urge congress complete action proposal without delay energy security corporation last year proposed creation energy security corporation lead national effort develop produce synthetic fuels synthetics oil shale biomass corporation would independent body chartered government authorized use variety financing price guarantees federal purchases loan stimulate private sector development synthetic energy alternatives imported oil recommended corporation given goal develop capacity produce million barrels per day synthetic fuels oil shale biomass 1990 ability produce commercially synthetic alternatives foreign crude oil nation effectively capped price foreign oil producers charge crude oil job must nation security operating program within government corporation much easily obtain needed talent operate without constraints binding government agency enactment legislation containing energy security corporation one highest legislative priorities session urge conferees complete work expeditiously corporation open doors early possible year reduction utility oil use soon send congress legislation assist utilities use coal encourage retire existing oil burning plants generating department energy staff worked closely congressional energy leadership last several months develop legislative proposal acted upon quickly proposed utility oil use reduction legislation help us achieve two basic energy dependence foreign oil increasing production abundant secure energy supplies coal reason passage legislation one highest energy priorities year gasoline rationing soon sending congress approval standby gasoline rationing plan authority legislation signed law last year developing plan given priority attention accommodating essential gasoline usage bearing mind need design plan workable put place quickly severe emergency arises recognize difficulty developing plan meets many competing state local concerns last year experience demonstrated difficulty well determined certain congress avoid repeating administration work closely congress standby plan hope congress recognize overriding national importance emergency preparedness take action early approve proposed plan intend current supply conditions implement rationing program longer afford unprepared possibility severe interruptions energy supplies energy conservation first energy address nation april 1977 stressed importance conservation cornerstone national energy policy cheapest fastest means reducing dependence imported oil constitutes alternative source supply extent homes factories cars public make task providing secure sources energy future much attainable november 1978 signed law country first energy conservation tax credits provide 300 home conservation investments additional 10 percent investment tax credit industrial investments energy efficient equipment time put place requirement utilities provide energy audits customers offer arrange financing also established stiff taxes new gas guzzling automobiles result april 1977 initiatives also providing total 900 million three years weatherize schools hospitals across nation last july proposed program provide billion next decade subsidize interest rates homeowner loans conservation investments program targeted homeowners apartment owners tax credits less effective incentive program expected consumers total monthly bills decline since financial savings resulting lower energy use greater monthly payments subsidized loans consider new program essential piece overall conservation strategy urge conference committee working bill containing provision complete work promptly energy conservation must also go forward state local levels help important effort urging congress pass proposal authority proposed energy management partnership act provide grants local governments meet national energy conservation goals solar energy last june sent congress message solar energy outlining administration solar program setting national goal year 2000 deriving 20 nation energy solar renewable resources firm ambitious federal government also state local governments private industry academia private required reach goal part solar program announced june proposed number initiatives congress assist solar energy development among establishment solar energy development bank funded 150 million per year provide subsidized loans installation solar equipment homes commercial structures additional tax credits passive solar construction wood stoves industrial agricultural solar applications gasohol initiatives yet enacted congress urge prompt action measures help speed penetration solar technologies marketplace addition fy 1980 program solar energy exceeded 1 billion three times greater program place took office fy 1981 expenditures solar renewable energy nearly billion include programs administered departments energy agriculture interior defense state housing urban development tennessee valley authority federal solar program overall objectives emphasis basic research development solar technologies currently economic photovoltaics electricity generated directly sun provision funding technical information accelerate use marketable solar technologies available solar heat hot water wood energy among technologies continue work congress session passage critical solar energy legislation making progress transition away dependence fossil fuels towards widespread use renewable sources energy must maintain aggressive policy achieve transition nuclear safety immediately following accident three mile island established presidential commission chaired president dartmouth college report actions needed prevent recurrence kind accident safety remain administration primary priority regulation management nuclear power taken steps correct virtually problems identified kemeny commission acted implement specific recommendations including reorganization nrc strengthen role chairman soon send congress reorganization plan give chairman power select key personnel act behalf commission emergency appointment new chairman nrc outside agency next vacancy occurs meantime designated commissioner ahearne chairman mandate initiate changes needed assure safety nuclear power plant operations direction federal emergency management agency lead emergency activities review emergency plans states operating reactors june request nrc accelerate program place resident federal inspector every reactor site upgrade training evaluation programs reactor operators endorsed approach nrc adopted pause licensing urged commission complete work quickly possible event later june year instituted necessary reforms assure safety must resume licensing process promptly new plants need reduce dependence foreign oil built operated nuclear power option keep open gasohol recently proposed program accelerate dramatically america production use gasohol yet another important way energy war administration committed program provide billion billion assistance stimulate production alcohol fuels coming decade quadruple current gasohol production capacity end year 1981 capable producing ethanol annual rate 500 million six times current rate entire amount ethanol turned gasohol would replace almost 10 anticipated demand unleaded gasoline 1981 overall gasohol program spur investments together must make secure energy future create new markets farmers longer throw away waste materials turned profitable essential fuels nation enormous agricultural fiber resources used help provide secure source energy future producing gasohol fiber agricultural meet fuel needs millions americans including farmers eager work congress alcohol fuels program soon legislation authorize provide funding important energy development energy impact assistance new domestic energy resources developed particularly rural isolated areas country must provide needs rapidly developing communities administration continue work congress enact legislation establishing inland energy assistance program funding 150 million per year aid states local areas experiencing rapid growth population result new energy supply development communities often plan meet increased need new public facilities services since population increases occur new energy supply activities fully developed producing local revenues legislation essential ensure burdens associated solving energy problems borne equitably citizens regions country iii enhancing basic human social needs many years immediately preceding administration many nation basic human social needs ignored dealt insensitively federal government past three years significantly increased funding many vital programs areas developed new programs needs unaddressed targeted federal support individuals areas need assistance removed barriers unnecessarily kept many disadvantaged citizens obtaining aid basic needs efforts past three years produced clear progress effort solve country fundamental human social problems administration congress working together demonstrated government must meet citizens basic human social needs responsible compassionate way unfinished agenda still congress meet obligations help americans realize dreams sound health care decent housing effective social services good education meaningful job still important legislation enact year legislation congress working toward enactment health national health plan last june proposed congress national health plan enable country reach goal comprehensive universal health care coverage legislation submitted lays foundation comprehensive plan addresses serious problems health financing delivery realistic affordable enactable overpromise overspend result solution thirty years congressional battles national health insurance plan includes following key features nearly 15 million additional poor would receive comprehensive coverage delivery services provided pregnant women coverage provided acute care infants first year life elderly disabled would limit placed annual medical expenses would longer face limits hospital coverage employees families would receive insurance least major medical expenses mandated employer coverage medicare medicaid would combined expanded umbrella federal program healthcare increased program efficiency accountability uniformity strong cost controls health system reforms would implemented initiatives including greater incentives health maintenance organizations enacted year plan would begin providing benefits 1983 urge congress compare plan either little improve health care needs americans need programs would impose enormous financial burdens american taxpayers comparison completed convinced congress see need benefits plan work toward prompt enactment afford delay vital area hospital cost containment hospital cost containment remains single important piece legislation congress pass demonstrate commitment fight inflation legislative initiative save billions dollars nation consumers eliminating unnecessary wasteful hospital services longer allow hospital inflation put needed health care reach average american sector absence competitive forces hospital cost containment legislation necessary restrain spending process developing effective measures proceeds longer delay enacting cost containment expensive fight hospital inflation become asking senate move quickly legislation health promotion disease prevention last july surgeon general released healthy people landmark report health promotion disease prevention report signals growing consensus nation health strategy must refocused 1980 emphasize prevention disease specifically report lays measurable achievable goals reduction mortality reached 1990 consistent report health strategy propose fy 1981 budget places unprecedented emphasis prevention strategy includes increased funding many new continuing programs areas environmental hazards workplace health safety commercial product safety traffic safety community water fluoridation health education promotion information maternal child health ensuring healthy start life children remains high priority administration also one cost effective forms health care took office immunization levels preventable childhood diseases fallen 70 result concerted nationwide effort administration pleased report least 90 children 15 virtually children immunized addition reported cases measles mumps lowest levels ever national health plan proposed prenatal delivery services pregnant women acute care provided infants first year life preventive services recognized extremely high returns terms improved newborn child health child health assurance program chap legislation already submitted congress additional two million children 18 become eligible medicaid benefits include special health assessments chap also improve continuity care nearly 14 million children eligible medicaid additional pregnant women become eligible prenatal care proposal must work together year enact chap thereby provide millions needy children essential health services third consecutive year requesting expansion special supplemental food program women infants children proposal 2 million nutritionally needy mothers nursing infants children receive special food supplements month food supplements shown prevent ill health thereby reducing later medical costs addition legislative initiatives propose increased funding fy 1981 budget successful family planning program targets services women adolescents high risk unwanted pregnancy 1981 budget contains continued funding adolescent health initiative designed provide coordinate services pregnant teenagers well reduce incidence unwanted pregnancies expansion services poor underserved health proposals fy 1981 place high priority expanding improvements made administration access continuity care medically underserved groups propose substantially increased funding successful programs area including community migrant health centers national health service corps program places health professionals rural urban medically underserved areas addition proposing legislation make coverage clinics providing comprehensive primary care services mandatory benefit medicaid mental health last year submitted mental health message congress proposed mental health systems act based upon recommendations commission mental health act designed inaugurate new era federal state partnership planning provision mental health services addition act specifically provides prevention support services chronically mentally ill prevent unnecessary institutionalization prevention services development mental health services year administration working intensively congress prompt enactment important legislation first lady continue substantial work area effective spokesperson advocate mental health reform throughout country worker health safety administration continue enforce fully laws protecting worker health safety sensible efficient manner making efforts eliminate frivolous unneeded rules concentrating greater enforcement efforts dangerous particularly unhealthy occupational environments effective management worker safety programs serve interest labor management better working conditions drug abuse prevention beginning administration half million heroin addicts united states continued emphasis reducing supply heroin well providing treatment rehabilitation victims reduced heroin addict population reduced number heroin overdose deaths 80 reduced number heroin related injuries 50 however drug abuse many forms continues detract quality life great concern us people nations particularly concerned increasing quantities heroin originating iran southwest asia continue especially alert threat 1980 1980 also strive reduce supply illegal drugs overseas sources within united states continuing comprehensive treatment program priority reduce drug abuse among adolescents one important goals administration beginning decade change social acceptance drug use food nutrition building comprehensive reform food stamp program proposed congress passed 1977 administration congress worked together last year enact several important changes program changes simplify administration reduce fraud error make program responsive needs elderly disabled increase cap allowable program expenditures session continue work congress achieve additional improvements food stamp program eliminate permanently expenditure cap also propose year congress pass administration child nutrition amendments target assistance school meal programs need education stern challenges 80 place new demands every sector society education insurance provide talent capability meet every demand national agenda challenge 80 education see quantity education becomes quality education challenge meet last year administration congress successfully collaborated create new department education department give education stronger voice federal level time reserving actual control operation education states localities private institutions department combines nearly 150 existing federal education programs cohesive streamlined organization responsive needs students department cut red tape paperwork make flow federal dollars school districts institutions higher education efficient thereby providing students educators benefits per dollar federal funds determined work closely congress year making certain department begins sound basis consistent purposes hopes congress creating ensure adequate financial resources education requested since taking office overall increase federal aid education 75 previous administration last budget many programs including serving disadvantaged handicapped students providing financial aid students enrolled postsecondary education benefited ever larger percentage increases administration fy 1981 budget request education represent generous increase last year budget particularly significant increases number programs serving special populations addition major new program designed give youth basic skills needed get keep job also recommending substantial increase programs deal international education improve understanding nations addition proposals submitted last july reauthorize higher education act still consideration congress centerpiece proposals student financial aid programs major reform student loan programs proposal would first time provide comprehensive program loans federal government higher education students need proposals would eliminate much paperwork confusion plagued students parents colleges mandating single application form federal assistance essential reauthorization enacted year reauthorization legislation must consistent commitment restrained responsible budget eager work congress achieve goal soon possible income security welfare reform last year proposed welfare reform package offers solutions urgent problems welfare system proposal embodied two work training opportunities act social welfare reform amendments act within framework present welfare system reform proposals offer achievable means increase work rather welfare adequate assistance people unable work removal inequities coverage current programs fiscal relief needed states localities current welfare system long overdue serious reform system wasteful fully effective legislation proposed help eliminate inequities establishing national minimum benefit directly relating benefit levels poverty threshold reduce program complexity leads inefficiency waste simplifying coordinating administration among different programs last year house passed social welfare reform amendments act addresses major problems cash assistance programs year must continue momentum toward welfare reform determined whatever help enact two bills needed comprehensive reform welfare system history child welfare administration worked closely congress legislation designed improve greatly child welfare services foster care programs create federal system adoption assistance work congress legislation almost completed children need homes permanent placement primary concerns administration determined see improvement system cares children legislation help ensure energy assistance last year proposed program provide total billion per year households hardest hit rising energy bills congress cooperation able move quickly provide billion assistance needed winter amount billion provided grants eligible households 400 million energy crisis assistance program first checks received eligible families individuals early january already proposed continue press legislation provides billion year energy assistance funding program come windfall profits tax continuing assistance one high priorities session congress social security deeply committed restoring public confidence trust social security system passage social security amendments 1977 financial stability system improved month 35 million americans receive pension disability checks rely without fear interruption must however address continuing financial viability social security system light changing economic circumstances must also review equity distinctions contained system benefit provisions help ensure system viability propose legislation permit borrowing among separate trust funds measure strengthen social security system current future beneficiaries also review closely work several major study groups consult experts department health human services congress assess recommendations disability insurance reforms result legislation enacted 1977 strengthened financing social security system social security disability insurance program stable financial condition last year administration proposed modifications program improve administration increase incentives disabled beneficiaries seek rehabilitation return work 1980 work congress enact reforms hope congress stay close possible original proposal housing administration brought improved stability nation housing market housing starts 1977 1979 averaged million units per year remain committed assuring availability adequate level mortgage credit period record high interest rates toward goal developed six month money market certificate broadened secondary market activity government national mortgage association federal home loan mortgage corporation recently bank regulators introduced two one half year certificates become valuable sources funds savings institutions enabling continue high level mortgage lending pleased policies begun slow rate growth home prices within context overall economic strategy continue support measures provide improved stability housing industry avoiding boom bust cycles led unemployment business failures dislocation past sent congress legislation update government emergency authority program purchase mortgages times economic stress current authority could used effectively urge quick congressional action legislation administration position use program necessary also brought improved stability predictability higher production provision assisted housing americans including elderly handicapped period 1978 1981 administration committed nearly million units housing lower income renters homeowners actual construction starts reached units 1979 level sustain next several years proposing fy 1981 budget level assisted rental units assisted homeownership units total 25 increase 1980 levels recommendation reflects administration concern number poor americans still living substandard housing also propose year extend hud home ownership assistance interest subsidies low income tenants designated revitalization areas help address particular problem displacement low income persons elderly urban revitalization condominium conversions administration working congress pass condominium reform legislation proposed last year legislation provide basic protections purchasers condominium units many unit owners lack adequate remedies redress serious inequities existing law expeditious federal action area priority 1980 also propose number significant new legislative initiatives proposing comprehensive simplification consolidation nation basic housing laws mortgage insurance mortgage credit activities federal housing administration government national mortgage association proposal make services agencies understandable accessible american public also recommending prompt congressional action extend home mortgage disclosure act important factor aiding availability mortgage credit inner city areas finally building urban partnership established cities continue increase control local governments exercise operation federal housing programs propose fundamental change hud public housing modernization program allow local authorities use 50 public housing production funds modernization repair existing deteriorated stock public housing recognition severity housing problems america rural communities implementing action agenda 12 rural housing initiatives announced last month neighborhood development neighborhood development essential component policies designed revitalize nation urban areas administration taken number steps assist neighborhood groups carry community improvement plans fiscal year 1981 propose increased funding neighborhood development program program aims build capacity independent neighborhood organizations implement conservation revitalization projects neighborhoods 1980 strongly support renewal home mortgage disclosure act order encourage neighborhood reinvestment administration also continue support fully neighborhood reinvestment actions independent regulatory agencies federal home loan bank board community investment fund transportation major goal 1980 bring dramatic increase economic energy efficiency transportation systems nation transportation facilities among best world planned designed constructed era abundant cheap energy country faces totally different situation scarce increasingly expensive energy help combat problem proposed use billion next decade windfall profits tax revenues increase energy efficiency transportation 13 billion would allocated increase transit capacity billion would directed promote use automobile 1 billion research automotive fuel efficiency urge congress enact proposal without delay promote energy conservation stimulate urban growth create new employment opportunities inner cities urge congress support mass transportation authorization legislation year seek reauthorization extension public transportation grant program assistance congress taken number positive steps reform outmoded transportation regulation airline deregulation act 1978 working well reduced passenger fares per mile airlines better able withstand effects recession fuel price increases would otherwise possible continue type progress last year submitted truck rail regulatory reform bills committed seeking enactment 1980 important bills save consumers billions dollars annually reduce wasted fuel consumption improve america railroads introduced legislation direct federal railroad financial assistance toward restructuring failing railroads improved employment efficiency also ask congress increase funding extend life northeast corridor improvement project improve passenger rail services northeast statutory authority present airport programs related aviation taxes expire 1980 already sent congress proposal use nearly 15 billion airport airways trust fund next five years airport aviation expenses urge congress enact proposal year finally committed development maritime industry achieve maximum export competitive position united states ties port facilities land transport facilities must greatly improved last year administration conducted comprehensive review maritime policy transmitted congress goals liner regulation merchant marine promotion year working congress pass legislation embodies interest expanded trade strong merchant marine fleet special needs women efforts administration last several years concentrated providing american women full range opportunities programmatic initiatives developed overcome widespread discrimination disparities women faced education health employment women education equity act funded titles ii provide school boards grants programs designed end discrimination education avoidance discrimination education also stressed improvements enforcement existing civil rights legislation particular health problems faced addressed increases family planning funds title xx well improved teenage pregnancy funding programs national health plan provides complete coverage pregnant mothers infants without cost employment still continues major problem wide gap average week wage men women addressed major improvements funding women bureau department labor model training programs research projects ceta prime sponsors matched basis improve amount funding programs year ahead administration supporting passage legislation decrease domestic violence provide shelters battered spouses families part administration effort focus attention upon strengthen family structure last year established office families within department health education welfare office help coordinate activities vital area later year hold white house conference families initially proposed 1976 campaign conference culmination three years work help focus public attention problems affecting families means needed solve avoid problems older americans administration taken great strides toward solving particular problems faced senior citizens early term worked successfully congress assure adequate revenues social security trust funds also signed law legislation prohibiting employers requiring retirement prior age 70 removing mandatory retirement federal employees administration worked closely congress amend older americans act way already improved administration housing social services food delivery employment programs year submitting congress budget demonstrates commitment programs elderly include increased funding nutrition senior centers home health care focus added resources needs older americans also seeking strengthen social security system proposing legislation permit borrowing among separate trust funds 1981 white house conference aging approaching administration making every effort assure effective useful conference forum enable older americans voice concerns give us guidance continued efforts ensure quality life richly deserved senior citizens special attention need care refugees 1979 administration made significant progress resolving number problems arising increase refugees last march proposed comprehensive refugee legislation regard passage high priority year first comprehensive reform refugee immigration domestic resettlement policies bring common sense cohesion unnecessarily fragmented approach international domestic refugee needs vigorous new leadership office coordinator refugee affairs created last year aggressively address need refugees home abroad also encourage greater cooperation private sector actions ensure successful refugee resettlement veterans commitment peace national security remains strong ever nation obligation whose past service country helped keep peace world reason administration commitment needs america veterans remain high priority administration committed sustain high quality health care hospital system largest free world encourage growth effective efficient manner commitment reflected budget fy 1981 system must maintain independent integrity 1980 continue honor seek recognition nation veterans must acknowledge veterans vietnam war yet accorded full honor bestowed upon veterans past wars continue year assist veterans special needs concerns building initiative last year veterans accordingly year ask congress reform revitalize va vocational rehabilitation program extend eligibility bill veterans vietnam war era need advanced job training opportunities addition seek increased benefits recipients participating current bill program nation veterans deserve benefits committed serving budget also proposes legislation grant increase recipients compensation disabilities incurred service country government assistance general aid state local governments since taking office strongly committed strengthening fiscal condition nation state local governments accomplished goal maintaining consistent strong economic growth encouraging economic development local communities supporting general revenue sharing fiscal assistance programs general revenue sharing year propose renewal general revenue sharing administration proposal forge closer partnership among federal state local governments emphasize pivotal role states federal system proposal grs renewal also provide additional aid cities counties strained fiscally soon send legislation congress extend grs five years current funding level billion one third money provided state governments basis current distribution formula condition continued payments states state required constitute commission assess address fiscal problems confronted state local governments within state commissions provide mechanism involving states greater extent government partnership grs payments provided local governments basis population tax effort per capita income propose retention basic distribution formula local governments also propose number modest formula changes provide greater aid localities large service responsibilities insufficient fiscal resources proposal grs renewal cornerstone policy government relations 1980 policy emphasize need levels government cooperate order meet needs fiscally strained cities counties also emphasize important role grs play forging partnership urge congress move quickly grs proposal assure nation states localities begin 1980 sound fiscal condition targeted fiscal assistance last year submitted congress fiscal aid package designed strengthen fiscal condition nation states localities first part legislation provided standby legislation protect states localities unexpected changes national economy second part provided transitional highly targeted fiscal assistance fy 1980 distressed local governments substantial progress made legislation past year senate passed legislation providing targeted fiscal assistance aid august 1979 similar legislation ready house action important congress complete action legislation early year urban policy two years ago proposed nation first comprehensive urban policy policy involved one hundred improvements existing federal programs four new executive orders nineteen pieces legislation congress cooperation fifteen bills signed law additional action expected put place proposals year economic development one principal goals domestic policy strengthen private sector economic base nation economically troubled urban rural areas congress cooperation substantially expanded federal government economic development programs provided new tax incentives private investment urban rural communities programs helped many communities attract new private sector jobs investments retain jobs investments already place took office federal government spending less 300 million annually economic development programs 60 million funds nation urban areas fy 1980 budget requested billion economic development grants loans interest subsidies billion loan guarantees approximately 60 funds spent nation urban areas fy 1981 budget continues programs already high levels addition extended 10 investment credit include rehabilitation existing industrial facilities well new construction year need continue progress extending expanding programs economic development administration congress cooperation legislation already passed house senate house senate bills include key elements original national development bank proposal provide substantial expansion economic development grant loan loan guarantee interest subsidy programs federal government legislation vitally important economic revitalization redevelopment nation economically troubled urban rural areas hopeful conferees complete work shortly get essential programs underway continue believe development private sector investment jobs key revitalizing nation economically depressed urban rural areas ensure necessary economic development goes forward congress must enact legislation reauthorizing programs economic development administration legislation conference urge conferees complete work soon provide foundation economic development nation 1980 community development partnership among federal state local governments revitalize nation communities high priority administration took office proposed substantial expansion community development block grant cdbg program enactment new 400 million urban development action grant udag program programs provided essential community economic development assistance nation cities counties year ask congress reauthorize cdbg udag programs propose cdbg program reauthorized three years 150 million increase funding provided fy 1981 also propose udag program extended three years 675 million provided program upcoming fiscal year actions help nation cities counties continue progress made last three years rural policy since beginning administration taken steps address pressing needs changing rapidly growing rural america many rural areas rural residents last decade time rapid growth development growth development produced higher income increased jobs rural communities also created substantial housing energy transportation health management problems last december announced small community rural development policy culmination several years work designed address pressing problems affecting rural areas major elements policy involve position secretary agriculture small community rural development provide leadership carrying policy working group assist implementation policy citizens advisory council advise president performance federal government implementation policy recommend needed changes invitation nation rural development councils work partnership federal agencies delivering state federal programs rural areas directive working group annually review existing proposed policies programs budget levels determine adequacy meeting rural needs fulfilling policy objectives principles landmark policy first time rural affairs given prominence presidential policy although many new program authorities dealing rural problems provided past two three decades institutional capacity federal level coordinating focusing efforts coherent effective way policy provides capacity backed personal commitment make work administration working congress year pass legislation needed fulfill commitment rural policy initiative consumers consumer representation last september signed executive order designed strengthen coordinate federal consumer programs establish procedures improve facilitate consumer participation government decisionmaking order federal agency must adopt implement strong consumer program also established interagency council coordinate agencies actions responding executive order year leadership special assistant consumer affairs working make certain order faithfully implemented consumers receive better protection assistance federal agencies administration continue support efforts provide financial assistance regulatory proceedings citizen groups small businesses others whose participation limited economic circumstances programs needed balance regulatory process assuring opportunities broad public involvement proceedings finally administration continue support reform procedures ease unnecessary burdens costs class actions time preventing use harassment technique national consumer cooperative bank administration worked closely congress create national consumer cooperative bank bank provide loans loan guarantees financial services consumer cooperatives operating areas food housing health auto repair demonstrate commitment innovative institution signed legislation increasing appropriations bank 4 million fiscal 1979 74 million fiscal 1980 legislation also signed adding two members bank board represent interests small business one represent general public year continue efforts congress make bank strong vital resource consumers consumer services information genuine competition lacking many service industries consumers generally lack comparative cost quality information help alleviate problem administration assist nonprofit groups state local government agencies develop local consumer information systems provide accurate cost quality data locally provided services essential part effort evaluation impact better consumer information inflation productivity service sector science science technology since beginning administration committed strengthening nation research development capability advancing areas science technology vital economic social wellbeing commitment reflected 40 increase basic research funding resulting highest research development funding nation history new automotive research initiative industry partnership federal government undertake basic research essential help improve future automobiles acceleration scientific technological exchanges people republic china major review space activities needs resulting 60 increase space funding development space policy set direction space efforts next decade major new program encourage industrial innovation undertakings pursued cooperation congress year space diversity activities space shows space technology become integral part communications remote sensing defense civilian purposes studies earth universe guided sound aggressive fiscally responsible space policy administration undertaken concerted effort support space activities administration expenditures federal space programs increased 75 much increase meet increasingly operational nature space activities nearly half expenditures defense purposes satellites example enormously important stabilizing world affairs thereby make significant contribution security nations new initiative establish oceanic satellite system provide invaluable ocean data civil defense sectors thereby avoiding unnecessary duplication also emphasized space science exploration continuing fund spectacular programs voyager missions provided us remarkable views jupiter moons proposing two new space telescope new gamma ray observatory provide unique capability observe distant galaxies obtain information universe outside earth obscuring atmosphere 1980 continue strong support space program reflected budget continued commitment space shuttle arts humanities arts arts provide fundamental enrichment nation national endowment arts played major role focusing public attention arts endowment brought wider audiences parts country contact arts since beginning term increased government support endowment activities continue record expanded support year enable endowment strengthen efforts open arts new audiences new forums new parts country humanities humanities play vital role deepening understanding culture society enable national endowment humanities continue important efforts proposing increased funding endowment maintaining programs aiding scholarly research education cultural interpretation endowment use increased funds augment support research designed increase understanding traditions cultures directions countries third world studies exploring complex public ethical issues created increasingly technological society efforts preserve priceless documents materials constitute heritage nation regional ethnic communities bring fruits work increasing numbers public large support provided humanities activities libraries museums media well variety special activities tailored needs groups traditionally ready access opportunities learning humanities pursuing objectives endowment concentrate using federal funds stimulate support sources order enhance tradition private philanthropy expand financial base cultural institutions district columbia longer nation capital convenient target misdirected political attacks administration developed partnership progress district columbia administration worked last congress pass proposed constitutional amendment granting full voting representation citizens nation capital ratification process proposed amendment begun urge state legislatures ratified resolution join continue efforts year ratification effort last year progress made toward strengthening district ability meet citizens needs congress help enacted legislation authorizing construction full metro mass transit system legislation funding district pension plan municipal employees 1980 build record administration continue work closely congress mayor barry expand home rule district including development sensible formula determining federal payment district continue working mayor barry make nation capital city model rest nation commission holocaust last year received approved recommendations president commission holocaust established assess government might officially recognize first time tragedy holocaust shortly appointing council distinguished americans develop ways implement commission proposals council administration work closely congress establish appropriate memorial six million jews millions victims nazism world war ii iv making government effective efficient one major commitments candidate make federal government effective efficient past three years congress help believe enormous progress made toward goal reforms thought civil service enacted regulatory airline regulation government reduced eliminated coming year intend work congress improve government ability serve nation effectively government reorganization one highest priorities improve quality efficiency federal programs reorganization since took office submitted 13 reorganization initiatives congress congress approved initiatives strengthened federal government capacity deal effectively critical issues energy civil service disaster relief civil rights international development assistance education trade 1979 congress approved legislation sought consolidate education programs new cabinet department department education provide leadership improved management direct accountability performance congress involved education every level month put effect major reorganization federal government trade functions approved congress last year conjunction multilateral trade negotiations agreements reorganization ensure expanded trade opportunities american business abroad fully realized goal trade expansion given higher priority federal government organizational initiatives also important part energy program consolidated enforcement functions alaska natural gas transportation system single federal inspector ensure timely completion natural gas pipeline reduce dependence foreign oil proposed creation energy mobilization board expedite federal state local decisions proposed energy facilities also urging congress approve creation energy security corporation spur development domestic fuels industry year propose congress another significant reorganization plan strengthen internal management effectiveness nuclear regulatory commission safety highest concern regulating nuclear power development reorganization plan help improve nrc ability ensure nuclear safety general management reform simplify government citizens reduce burden unnecessary requirements regulations pursue number initiatives year instituted governmentwide management system mandate cost effectiveness new regulations sunsetting old ones 1980 continue pursue reform regulations legislation designed make permanent new framework managing regulatory process legislation reduce paperwork red tape also pursue initiatives simplify eligibility requirements human services programs improve management delivery social services increased use private sector skills talent reform reduce obstacles needy citizens seeking assistance improve ability remove fraud system last year implemented program manage government cash flow efficiently saved 450 million year expect annual savings 600 million timely collection cash payments tighter control disbursements reductions idle balances vigorously implemented legislation passed last year establish independent inspectors general department coordinated work executive group combat fraud waste government spot areas management reform especially likely increase efficiency created management improvement council diagnose circumstances prescribe cure continue pursue vigorously efforts improve structure management government programs tough unglamorous work essential reduce cost government provide better service american people civil service compensation reform march 1978 said civil service reform would centerpiece government reorganization efforts congress supported pleased report working well first real test reform act 98 eligible managers joined senior executive service choosing challenge accountability demanded new corps top executives office personnel management merit systems protection board federal labor relations authority authorized act operated effectively first year agencies throughout government continue make substantial progress implementing important civil service reforms first time hundred year history civil service system federal employees get hold jobs paid basis actual merely length service last year asked congress take next step federal employee compensation reform message urged pass pay reform bill would modernize federal compensation system legislation fair federal employees american taxpayers alike white collar blue collar military compensation systems must reformed order make certain neither overpay underpay federal employees fair bill one help restore public confidence federal service urge congressional action regulatory reform past three years put place comprehensive program overhaul federal regulatory establishment eliminate unnecessary regulatory burdens 1980 determined continue progress effort important part ongoing campaign make government efficient effective airline deregulation airline deregulation act 1978 revolutionized air transportation first year operation new environment free competition created law produced record number flights passengers much wider variety service packages savings approximately billion fares paid travelling public act regulatory controls continue relaxed 1985 cab completely phased existence trucking deregulation trucking industry enmeshed detailed regulations control routes truckers drive goods carry addition truckers allowed fix prices industry rate bureaus regulatory system works stifle competition waste fuel reduce service small towns inflate prices appointees interstate commerce commission started modernizing system need legislation provide comprehensive reform submitted bill open entry lift restrictions goods truckers may haul routes may use promote vigorous price competition reduce regulatory delays improve safety road bill important step fighting inflation look forward passage sound bill early summer appropriate legislation enacted would expect icc proceed authority implement reform initiatives addition need legislation increase competition household moving industry senate recently passed constructive bill urge house strengthen pass railroad deregulation railroads traditionally one overregulated industries america result management initiative service competitive pricing stifled railroad plants equipment deteriorated average railroad industry rate return investment far low administration continue work eliminate wasteful conditions regulatory structure helps principal weapon effort railroad deregulation bill proposed last year enactment significant railroad deregulation legislation year essential restoring railroad system former strength financial institutions regulation last year combination deposit rate ceilings outmoded restrictions asset powers thrift institutions produced severe inequities small saver substantial savings outflows many thrift institutions disruptions availability mortgage credit contrary intended purpose regulation q system contributed cyclical nature housing market destabilized flow mortgage funds related area changing competitive relationships well innovations market increased inequities produced continuing decline federal reserve membership time take actions necessary prepare financial environment 1980 congress passed legislation 1979 increased ability many americans obtain mortgage credit addition congress made major progress toward enactment historic financial reform legislation proposed last year year work closely congress achieve final approval financial reform objectives phaseout regulation q deposit rate ceilings broadening asset liability process thrift institutions approval legislation stem decline federal reserve membership elimination unwarranted regulatory restraints prompt action necessary avert significant decline federal reserve membership assure fair rate return saver steadier flow housing credit stable financial environment classes depository institutions spring submit congress administration findings mcfadden act geographic restraints banking activity telecommunications deregulation technological advances satellites computers microwave relays made practical move much telecommunications industry regulated monopoly deregulated competitive market shift already underway benefitting individual customers well companies toward end continue support strongly ongoing efforts congress pass bill encourage protect competition remove needless regulation maintain universal reliable service addition need legislation smooth transition competitive environment protecting workers rights ensuring large increases rural telephone rates providing needed national security emergency preparedness powers regulation reform act march 1979 sent congress regulation reform act enacted bill assure new existing regulations rigorously scrutinized issued retained wasteful delays eliminated regulatory process key regulatory officials selected purely grounds integrity competence public assured meaningful opportunities participate regulatory reform steps taken administratively already avoided billions dollars unnecessary regulatory costs erased thousands useless regulations books osha agencies opened regulatory process across executive branch enactment regulatory reform bill legislation needed congress strengthen reforms extend benefits independent regulatory commissions presidential oversight regulation many regulatory programs vital protection health safety welfare citizens must manage effectively cutting wasteful red tape rigidity costs imposed industry public enhancing opportunities public participation outset administration actively used authority president assure executive branch regulatory agencies respect goals executive orders oversight office management budget regulatory analysis review group assure regulatory costs accurately evaluated regulatory council eliminate duplication overlap among individual agencies pursue efforts 1980 legislative veto supporting regulation reform act strongly oppose proposals would undermine ability president manage regulatory process would cripple effectiveness needed programs particular administration oppose proposals subject individual agency rules veto one two houses congress transfer regulatory policy authority federal courts create rigid statutory procedures presidential supervision executive branch regulatory agencies last year seen congress besieged assaults various important regulatory statutes especially federal trade commission act seeking groundless exemptions crippling loopholes unprecedented congressional interference ongoing proceedings resist strenuously efforts confuse special interest pressure regulatory reform communications highest priority communications area passage regulatory reform legislation covering telecommunications industry addition 1980 continue program make media diverse ensure public gets full benefit advances communications technologies administration efforts include working increase minority participation already program helped produce increase minority ownership broadcast stations continue progress working federal communications commission continue eliminate needless paperwork regulations pursuing plans open channels many new radio stations improve service rural areas provide opportunities minorities developing proposals improve way frequencies assigned including incentives users conserve increasingly crowded radio spectrum encouraging use satellites cable tv technologies deliver public services improve rural communications working congress fcc protect first amendment rights free flow information measures bill police searches newsrooms continuing support strong independent public broadcasting system working increase coverage reach americans addition submit senate later year treaty protocol resulted world administrative radio conference concluded geneva december conference conferences held next years determine utilization radio spectrum rest century prepared conference two years delegation secured united states allocations necessary civilian military services also responding legitimate needs third world nations sunset continue work congress pass sunset legislation legislation overcome inertia let us federal programs continue outlived purpose ensure congress regularly reviews programs decide whether changed eliminated comprehensive sunset bill strong mechanism force action programs need change vital toward making government efficient paperwork reduction past three years administration cut amount time americans spend filling federal forms 127 million 15 recently issued executive order continue progress strengthening management program however congress enacting new paperwork requirements energy environmental protection areas must legislation provide strong administrative controls needed minimize burdens urge congress pass paperwork reduction act close wide loopholes executive branch oversight power create new authority halt duplicative data collection addition urge legislation enacted improve federal statistical systems strengthening central management encouraging agencies share data new tough confidentiality safeguards lobby reform american people right know significant influences affect national legislature proliferation organizational lobbying activities recent years demonstrated clear need reform outdated ineffective lobby disclosure law effect year administration work congress pass sound lobby law reform respects first amendment rights americans minimizes paperwork burdens yet allows meaningful disclosures public financing congressional elections impact special interest contributions congressional campaigns grown dramatically recent years time adopt public financing congressional elections late public financing avoid even appearance undue special interest influence allow worthy candidates without adequate funds run congress urge congress act legislation judicial reform civil justice reform message last year made proposals increase efficiency cut cost enhance integrity federal court system last year signed federal magistrates act 1979 senate house passed dispute resolution act would develop simple informal means resolving citizen disputes look forward early final action legislation federal courts improvement act passed senate urge house act early session hope congress also pass bills recommended message one would curtail diversity jurisdiction leaa leaa potential improve strengthen state local criminal justice programs never realized two years ago proposed reforms structure programs last month congress passed signed bill incorporated reforms reauthorized leaa four years reforms preclude excessive expenditure funds equipment enable better information research crime problems permit funding innovative programs high probability record proven success year implement new legislation way makes certain agency efficiently carrying mission providing meaningful law enforcement assistance patent reform part industrial innovation policy announced last year seeking reform patent laws way spur creativity invention administration working congress develop single policy guide departments agencies dealing patents resulting research uniform treatment encourage commercial use discoveries protecting taxpayers investment protecting basic rights liberties since taking office worked protect enhance basic fights liberties guaranteed americans constitution laws cooperation made important progress area year though important work remains done goal ensuring equality basic freedoms americans realized dream equal opportunity remains unfulfilled whatever bring dream closer realization equal rights amendment committed strongly possible ratification equal rights amendment ratification year one highest priorities result efforts 1978 equal rights amendment deadline ratification extended three years two years three states left afford delay marshalling resources efforts obtain ratification three additional states help believe succeed year although congress official role ratification process point ability affect public opinion support state legislators amendment urge members states yet ratified equal rights amendment use ability civil rights completion civil rights reorganization significant operational improvements agencies carry equal employment opportunity functions enabled federal government shift focus first time enforcement efforts buttressed vigorous successful posture several landmark affirmative action cases time reorganization mandate eliminate unnecessary costs paperwork burdens businesses vigorously implemented equal employment opportunity commission continue increased resources year make certain civil rights activities given highest priority agencies created civil rights unit office management budget new unit monitor civil rights enforcement advise director omb funding management resources needed effective enforcement martin luther king martin luther king led nation effort provide citizens civil rights equal opportunities commitment human rights peace stands monument humanity courage one nation outstanding leaders appropriate birthday commemorated national holiday continue work congress enact legislation achieve goal fair housing enforcement laws housing discrimination lagged comparison employment area adequate enforcement mechanism title viii civil rights act prohibits discrimination housing largely ineffective strongly supported legislation seeks provide department housing urban development power hold administrative hearings issue cease desist orders cases title viii violated continue work congress 1980 enact authority enactment continue highest legislative priority civil rights area intelligence charters legislative charter intelligence agencies charter fbi long overdue failure define law duties responsibilities agencies made possible abuses occurred recent years several months ago submitted congress legislative charter fbi protects rights citizens preserving bureau ability meet important responsibilities 1980 continue work congress toward enactment legislation events past year indicate need strengthened clearly defined role intelligence community basis sound consultative work done already congress plan submit proposed charter early year hatch act reform federal employees work nonsensitive positions right participate political activities administration continue support legislation would reform hatch act accomplish goal would prevent political abuse criminal code federal criminal laws often archaic frequently contradictory imprecise clearly need revision codification administration continue work congress develop federal criminal code simplifies clarifies criminal laws maintaining basic civil liberties protections labor law reform labor laws vital ensuring sound relationship exists collective bargaining efforts abuse labor laws especially unduly slowing blocking implementation increased recent years result reform labor laws badly needed guarantee intended spirit fully observed enforced ready work congress develop legislation improves fairness effectiveness labor laws handicapped administration made great strides toward ending discrimination handicapped people broadened employment opportunities educational opportunities greater access public facilities services came office department health education welfare issued first regulations section 504 rehabilitation act since numerous federal agencies issued final regulations expect regulations necessary agencies end 1980 last year supported legislation would prohibit discrimination handicapped private employment housing continue support initiative year clarify legislative administrative uncertainty provisions acts affecting rights programs affecting handicapped individuals administration worked improve programs serving handicapped must continue push removal psychological physical barriers handicapped people society actively organizing preparing next year international year disabled international year enable public private sector working demonstrate commitment disabled teach learn nations ways advance quality life handicapped individuals privacy changes society threatening rights personal privacy government private institutions collect increasing amounts information individuals many decisions made based recorded data modern technology allows data transferred throughout country instantaneously much information must collected used enforce laws provide financial services important services however needs must balanced right privacy harm unfair uses information last year announced government first comprehensive privacy program building legislation already passed prevent improper use wiretaps improper access personal bank records new program five separate privacy safeguards medical research bank insurance credit records providing special protections modeled wiretap laws electronic funds transfer systems addition proposed legislation limiting police searches newsrooms deal problems created supreme court stanford daily decision privacy program includes action well improved handling federal stopped growth personnel records started cutting back established rules control computer matching federal files called upon employers establish voluntary privacy codes records concerning employees launched nationwide hearings promote effort international guidelines needed protect privacy personal information transferred one country another avoiding disruption needed information flows spearheaded work organization economic cooperation development toward end guidelines drafted adoption year key protections however need legislation urge congress act five privacy bills submitted vi protecting developing natural resources two nation greatest natural resources environment fertile agricultural capacity since office worked congress preserve protect appropriate develop natural resources environmental areas concerned importance preserving clean environment taken number major actions designed foster environment agricultural area taken steps needed improve farm incomes increase agricultural production record levels help continue make progress areas 1980 environment balancing need resource development conservation major environmental theme administration remain strongly convinced nation economic energy development adequate environmental protection open decade 80 americans proud natural cultural heritage continues satisfy economic recreational spiritual requirements 1980 tenth anniversary decade environmental awareness began earth day 1970 past decade monumental legislative achievements occurred include national environmental policy act clean air clean water acts additions national parks trails river systems endangered species act pleased sign law reauthorization endangered species act last year 1980 celebrate tenth anniversary let us rededicate creation maintenance safe healthy environment wise use development natural resources fair implementation environmental statutes preserving unique wildlife resources even greater achievements improving quality life americans next year administration vigorously pursue protection alaskan lands implementation effective water resources policy careful implementation domestic energy production programs proper regard environmental values review wilderness potential public lands creation hazardous waste management program fisheries development coastal management policies alaska lands passage legislation adequately resolves allocation federal lands alaska continues highest environmental priority stake fate tens millions acres beautiful land outstanding unique wildlife populations native cultures opportunity ensure future generations americans able experience benefit nationally significant resources proposals supported 95th congress first session congress assure alaska great national treasures preserved providing increased domestic energy production economic needs alaskans addition recommendations designating national parks wildlife refuges wilderness areas national forests wild scenic rivers federal lands alaska proposing aggressive environmentally sensitive oil gas development programs alaska outer continental shelf national petroleum reserve administration also stepping transfer 103 million acres federal land state alaska 44 million acres alaskan natives state alaska native corporations build economic base however order maintain proper balance resource protection development alaska congress must enact comprehensive legislation body two years 96th congress soon asked vote clearly amounts conservation decision century house representatives already passed strong conservation bill senate shortly take debate issue urge congress carry responsibility enact legislation truly protects preserves natural heritage alaska hazardous substances one important environmental public health issues facing nation threat caused improper disposal hazardous substances accidents like love canal valley drums highlighted inadequacy existing laws inability governments levels respond quickly efficiently dangerous incidents coming years may thousands hazardous waste sites need attention cost could enormous clearly effective public policy needed deal situation last june submitted congress comprehensive billion legislative proposal establishes system deal releases uncontrollable hazardous waste sites well spills oil hazardous substances system includes provisions emergency government response effective enforcement liability cases economic compensation system also calls partnership states cleaning containing problem legislation absolutely essential meet responsibilities public urge congress act expeditiously nuclear waste management problems related management disposal storage nuclear wastes remains one serious problems nuclear power administration deeply concerned problem past three years exhaustive study review problem undertaken administration past year based findings recommendations study soon proposing congress comprehensive legislation deals directly problem proposals enacted represent biggest step forward area nuclear waste management since dawn nuclear age urge congress take action area year rare ii 1979 submitted congress recommendations wilderness national forests rare ii procedure proposals include million acres new desirable areas within vast review 10 million acres undergoing study addition directed forest service release multiple use management 36 million acres land designated urge congress approve recommendations year water policy legislation sound water management vital economic environmental health nation administrative implementation comprehensive water policy initiatives announced june 1978 nearing completion continue work congress pass legislation needed improve federal water resources programs support states primary responsibilities water allocation management pleased last fall senate authorized expanded grant program states water management water conservation technical assistance expect house soon pass legislation cost sharing bill proposed critically needed give states effective voice setting water project priorities state federal water policy decisions believe establishment independent review unit water resources council essential urge congress act quickly pending authorization independent review unit provide objective impartial technical analysis administration congress water projects proposed authorization construction funding information enable administration congress make better informed decisions invest taxpayers water resource dollars clear administration supports sound water resources development taken several steps improve quality projects sent congress authorization funding concerned water projects authorization bills consideration congress threaten overturn progress made recent years urge congress give legislation careful thoughtful scrutiny required joint commitment restraining federal spending ensuring sound environment fisheries development last may administration proposed fisheries development policy recognizes importance commercial fishing industry nation economy fish important food source policy includes recognition potential fisheries expansion within nation fisheries conservation zone importance federal government creating positive climate fisheries development conjunction policy administration sent legislative proposal fisheries development congress time united states begin taking action fully utilize fisheries resources economic zone urge congress join effort agriculture agricultural progress much work remains done america agriculture far best world efforts made administration cooperation congress secure economic stability farmer produced results 1979 experienced another record year farm production net farm income jumped 32 billion 1979 4 billion increase 1978 agricultural exports also reached new highs rising 18 1979 32 billion despite suspension exports soviet union expect continued healthy export picture nation farmers last year secretary agriculture travelled around country conducted extraordinarily detailed creative dialogue nation farmers obtained invaluable suggestions economic social issues concerning farm life prepare farm program year beyond advice nation farmers clearly reflected policies develop congress soviet grain suspension response soviet armed invasion afghanistan christmas eve took several actions demonstrate nation resolve resist hostile acts aggression sovereign independent nation one important actions suspension grain sales soviet union beyond 13 million tons provided 1975 grains agreement soviet union intended purchase estimated 25 million tons wheat feed grains thus suspension sales 8 million ton agreement level expected result freeing 17 million tons decision suspend sales difficult one necessary one could continue business usual soviet union invading independent sovereign nation area world strategic importance united states fully committed policy promoting international trade particularly expanded export agricultural products proud administration record regard aggressive efforts american farmers businessmen working cooperation federal representatives provision new authorities congress set new export records past 3 years even soviet suspension intend set still another record coming year making decisions suspension believed would unfair ask american farmer bear greater share burden sacrifice fellow americans asked bear farmers penalized simply part agricultural machine growing strategic importance world protect american farmers price depressing effects grain suspension directed secretary agriculture take several actions commodity credit corporation assume contractual obligations grain previously committed shipment soviet union department agriculture acting commodity credit corporation purchase wheat contracted export soviet union purpose forming emergency international wheat reserve connection propose legislation authorizing release wheat international aid purposes encourage farmers place additional grain grain reserve secretary agriculture made several modifications important program commodity credit corporation purchase corn local level alleviate congestion within transportation system caused refusal international longshoremen association load grain 8 million metric ton level combination actions expected isolate market amount grain equivalent shipped soviet union thereby avoiding decline grain prices pleased report actions desired results american farmers protected effects suspension actions necessary insure american agriculture bear disproportionately large share burden associated action hesitate take crop insurance assortment federal loan grant insurance programs designed protect farmers economic risks associated natural disasters recognized early administration programs serious need reform marked many shortcomings inconsistencies eligibility inequities level benefits producers different crops inefficiencies use taxpayer money recent evidence abuse agricultural disaster loan programs provides evidence need reform sent congress proposal consolidate authorities form comprehensive insurance program congress made clear progress devising improved crop insurance program work remains done urge congress finish work legislation soon possible international emergency wheat reserve congress yet acted proposal made last session create international emergency wheat reserve reserve 4 million tons wheat would used assure recipient nations meet international food aid commitments suspension grain sales soviet union provides appropriate opportunity provide authority thereby establish guidelines release wheat acquired commodity credit corporation foreign policy time assumed office three years ago month stressed need country assert leading role world undergoing extensive intensive change human history policies directed particular three areas change steady growth increased projection abroad soviet military grown faster past two decades overwhelming dependence western nations increasingly includes united states vital oil supplies middle east pressures change many nations developing world including year old revolution iran uncertainty future many countries result fundamental facts face serious challenges history nation soviet invasion afghanistan threat global peace relations regional stability flow oil unprecedented overwhelming vote general assembly demonstrated countries across particularly soviet invasion threat independence security turmoil within region adjacent persian gulf poses risks security prosperity every western nation thus entire global economy continuing holding american hostages iran affront civilized people everywhere serious impediment meeting threat widely shared common iran focus urgent efforts pressing problems continue pursue benefits change bring always essence america want move understand prosperity progress peace standing still world nations striving preserve independence peoples aspiring economic development political freedom world hostile ideals interests united states face powerful adversaries strong friends dependable allies common interests vast majority world nations peoples encouraging developments recent years well matters requiring continued vigilance concern alliances world advanced democratic states western europe japan stronger ever helped bring dramatic improvement relations egypt israel historic step towards comprehensive settlement relations china growing closer providing major new dimension policy asia world across southern africa rhodesia namibia helping peaceful transition majority rule context respect minority well majority rights central challenge us today steadfastness purpose longer tempted isolationism must also learn deal effectively contradiction need cooperate potential adversaries without euphoria without undermining determination compete adversaries necessary confront threats may pose security face broad range threats opportunities continue pursue broad range defense diplomatic economic capabilities objectives see five basic goals america world 1980 continue past three years build america military strength allies friends neither soviet union nation reason question sustain strongest flexible defense forces pursue active diplomacy world friends resolve disputes peaceful means make aggressor pay heavy price strive resolve pressing international economic energy continue pursue still larger objective global economic growth expanded trade development assistance continue vigorously support process building democratic institutions improving human rights protection around world deeply convinced future lies dictatorship democracy remain deeply committed process mutual verifiable arms control particularly effort prevent spread development nuclear weapons decision defer abandon efforts secure ratification salt ii treaty reflects firm conviction united states profound national security interest constraints soviet nuclear forces treaty provide continuing close cooperation congress executive branch required achieve goals immediate legislative priorities include 1 defense department authorization appropriations bills 2 special international security assistance pakistan countries 3 bilateral multilateral foreign assistance bills including central america supplemental 4 china trade agreement 5 intelligence charters 6 refugee legislation funding 7 human rights conventions 8 appropriate salt ii treaty one immediate pressing objective uppermost minds american people release hostages iran basic quarrel nation revolution people iran threat comes american policy soviet actions region prepared work government iran develop new mutually beneficial relationship possible long iran continues hold americans hostage defiance world community civilized behavior must released unharmed thus far pursued measured program peaceful diplomatic economic steps attempt resolve issue without resorting remedies available us international law reflects deep respect nation rule law safety people held belief great power bears responsibility use strength measured judicious manner patience unlimited concern fellow citizens grows day enhancing national military strength maintenance national security concern every president stated one year ago atlanta still world danger world democracy freedom still challenged world peace must every day must military power political deter adversaries support friends allies must pay whatever price required remain strongest nation world price increased military power major adversary grown readiness use power made evident afghanistan relationship demonstrating soviet union across broad front pay heavy price aggression terms relationship throughout last decades relations mixture cooperation competition soviet attack afghanistan ruthless extermination government highlighted starkest terms darker side well beyond competition legitimate pursuit national interest violating norms international law practice attempt subjugate independent islamic people callous violation international law united nations charter two fundamentals international order hence also dangerous threat world peace first time since world war ii soviets sent combat forces area previously control sovereign state january 4 therefore announced number measures including reduction grain sales curtailment trade technology transfer designed demonstrate firm opposition soviet actions afghanistan underscore belief face blatant transgression international law impossible conduct business usual also consultation allies countries region regarding additional multilateral measures might taken register disapproval bolster security southwest asia heartened support expressed position fact support tangible well moral destruction independence afghanistan government occupation soviet union altered strategic situation part world ominous fashion brought soviet union within striking distance indian ocean even persian gulf eliminated buffer soviet union pakistan presented new threat iran two countries far vulnerable soviet political intimidation intimidation prove effective soviet union might well control area vital strategic economic significance survival western europe far east ultimately united states clear entire subcontinent asia specifically pakistan threatened therefore asking congress first order business pass economic military aid package designed assist pakistan defend defense budget many years soviets steadily increased real defense spending expanded strategic forces strengthened forces europe asia enhanced capability projecting military force around world directly use proxies afghanistan dramatizes vastly increased military power soviet union soviet union built war machine far beyond reasonable requirements defense security contrast defense spending declined real terms every year 1968 1976 reversed decline effort every year since 1976 real increase defense lead encouraged increases allies support congress must make even greater effort years ahead fiscal year 1981 budget would increase funding authority defense 158 billion real growth 5 request fiscal year 1980 therefore requested outlays defense fiscal year 1981 grow 3 real terms preceding year trends mean correct remedied overnight must willing see program ensure setting growth rate defense sustain long haul defense program proposed next five years require sacrifice well afford defense program emphasizes four areas ensures strategic nuclear forces equivalent soviet union deterrence nuclear war maintained b upgrades forces military balance nato warsaw pact continue deter outbreak europe c provides us ability come quickly aid friends allies around globe ensures navy continue powerful seas strategic forces strengthening three legs strategic forces cruise missile production begin next year modernize strategic air deterrent capabilities also improved steps maintain enhance fleet improving ability deliver weapons increasingly heavily defended targets also modernizing strategic submarine missile force first new trident submarine already launched begin sea trials year second trident launched spring 1980 first new trident missiles range miles already begun operational patrols poseidon submarines new mx missile enhance survivability intercontinental ballistic missile force decided last spring produce missile selected basing mode best suited enhance capability mx strengthen capability attack wide variety soviet targets new systems enable strategic forces maintain equivalence face mounting soviet challenge would however need even greater investment strategic systems meet likely soviet buildup without salt forces nato greatly accelerating ability reinforce western europe massive ground air forces crisis undertaking major modernization program army weapons equipment adding armor firepower tactical mobility prepositioning heavy equipment europe help us cope attacks little warning greatly strengthening airlift sealift capabilities also improving tactical air 1700 new fighter attack aircraft next five increasing number air force fighter wings 10 accelerating rate move combat aircraft europe cope surprise attack adding number shelters european airbases prevent aircraft destroyed ground rapid deployment forces systematically enhancing ability respond rapidly contingencies wherever required commitments vital interests threatened rapid deployment forces assembling extraordinarily flexible could range size ships air squadrons formations large men together support forces prepared rapid deployment region strategic significance among specific initiatives taking help us respond crises outside europe development production new fleet large cargo aircraft intercontinental range design procurement force maritime prepositioning ships carry heavy equipment supplies three marine corps brigades addition responding soviet military presence cuba proxy role cuba behalf ussr taken taking following actions support rapid deployment force 1 substantially increasing ability monitor cuban activities 2 established caribbean joint task force headquarters improves ability respond events region 3 increasing regional military exercises 4 intensifying assistance countries region threatened soviet cuban intervention naval forces sea power indispensable global peace also war shipbuilding program sustain navy 1990 continue build capable ships afloat program proposed assure ability navy operate high threat areas maintain control seas protect vital lines military provide strong maritime component rapid deployment forces essential operations remote areas world predict far advance precise location trouble preposition equipment land military personnel matter capable advanced weapons systems military security depends abilities training dedication people serve armed forces determined recruit retain foreseeable circumstances ample level skilled experienced military personnel enhanced readiness combat endurance improving reserve components reservists assigned units structured complement provide needed depth active forces reserve personnel also equipped new equipment mobilization planning also launched major effort establish coherent practical basis government mobilization planning begun last may first effort conducted presidential level since world war ii involves virtually every federal agency aim improved efficiency readiness intelligence posture national interests critically dependent strong effective intelligence capability shortchange intelligence capabilities needed assure national security maintenance continued improvements intelligence effort essential cope successfully turbulence uncertainties today world intelligence budget submitted congress responds needs responsible way providing significant growth fiscal year 1980 budget growth enable us develop new technical means intelligence collection also assuring traditional methods intelligence work also given proper stress must continue integrate modes collection analyses imperative move forward promptly within context effective congressional oversight provide america intelligence community charters permit operate effectively within national concern codified law regional policies every president three decades recognized america interests global must pursue global foreign policy two world wars made clear stake western europe north antic area also inextricably linked far economically militarily united states permanent presence security commitments would automatically triggered become increasingly conscious growing interests third middle east persian gulf area vital stakes major regions world well long recognized era interdependence security prosperity depend upon larger common effort friends allies throughout world atlantic alliance outset administration emphasized primacy antic relationship country national security agenda made important progress toward making atlantic alliance still effective changing security environment meeting soviet challenge number important ways first recognition among allies mutual security responsibility shared committed increase national defense expenditures 3 per year remains much work done strengthening nato conventional defense work proceeding alliance long term defense program help achieve objective last month nato allies took historic step alliance security policies decision improve substantially theater nuclear capabilities theater nuclear force modernization tnf program includes deployment improved pershing ballistic missiles cruise missiles europe received unanimous support allies accelerated deployment soviet mirved missiles made modernization step essential tnf deployments give alliance important retaliatory option make clear soviets wage nuclear war europe expect soviet territory remain unscathed move forward necessary defense efforts europe also proceeding efforts improve european security arms control integral part nato tnf decisions alliance made clear prepared negotiate limitations theater nuclear missiles part tnf modernization efforts make possible streamlining nuclear weapons stockpile europe allowing us withdraw nuclear warheads next year mutual balanced force reduction talks allies recently put forward new proposals designed simplify negotiations improve prospect early progress limiting conventional military forces europe real sense accomplishments past year answered critical question concerning nato future western alliance provided foundation one longest periods peace prosperity europe ever enjoyed still summon essential cohesion relevance resolve deal fundamental security issues likely affect member nations well next century nato consensus favor modernizing negotiating nuclear arsenal continuing improve conventional forces dramatized allied capacity respond effectively military political threats posed soviet union relations allies friends europe taking ever broader dimensions security agenda remains central addressing new concerns well met unprecedented number european statesmen washington year past including leaders great britain west germany austria norway finland netherlands ireland sweden european community meetings common theme changing political economic interdependence enter new decade need promote equitable conditions peaceful growth stability throughout world approach achieved tangible form number ways example every west european government supports us continued every peaceful means seek release american hostages held tehran defiance universal standards international law decency consulting cooperating closely responses soviet union invasion occupation afghanistan nato area moved together vigorously meet serious economic problems faced turkey thereby strengthen vital part nato southern flank signed new base agreement turkey action though indispensable right also supported continuing efforts promote solution cyprus problem bring reintegration greece within military framework atlantic alliance objectives retain high priority year asia united states pacific nation much atlantic nation interests asia important us interests europe trade asia even greater trade europe pursued maintained interests basis stable balance power region partnership alliance japan central asian policy strengthening new relationship china expanded ties association south east asian nations asean member governments trip far east helped forge closer working relationships japan korea asian security balance power fundamental asian security maintained balance strong united states military posture region well close ties allies japan australia new zealand korea past year worked stabilize united states military presence asia concluding amended base agreement philippines last 1991 fostered closest degree security cooperation japan history two joint planning defense japan increased japanese contributions united states base costs japan japanese purchases united states defense equipment examining detail new intelligence estimates north korean military strength decided maintain troop strength republic korea present level least 1981 reaffirmation commitment korean security great importance koreans make necessary political adjustments wake president park assassination response nations east asia soviet aggression afghanistan gratifying australia particular deserves recognition forthright stand taken japan asean nations also strongly supportive china last year expanded relationship people republic china ensure interests coincide separate actions mutually reinforcing end enhanced consultative relationship also sought develop enduring institutional framework economic cultural scientific trade areas process facilitated successful visits vice premier deng united states vice president mondale china signing 15 commercial scientific cultural agreements numerous visits significant expansion trade flow people two countries secretary defense brown recent trip people republic china talks held global regional issues arms control technology transfer ways sustain bilateral contacts although may differ chinese issues views coincide many important issues particularly respect implications region soviet invasion afghanistan 1980 look forward passage congress early year china trade agreement authorization opic operations china plan conclude civil aviation maritime textile agreements continue expand commercial cultural scientific relations particularly eximbank credits people republic china southeast asia countries comprising asean central united states interests southeast asia throughout past year relations asean continued expand consultative arrangements strengthened stability prosperity southeast asia severely challenged vietnamese aggression cambodia year continue encourage political settlement cambodia permit nation governed leaders choice taken prudent steps possible deter vietnamese attacks thai territory increasing support thais direct warnings vietnam members asean stood firmly behind thailand great measure helped contain conflict gratified thailand courageous humane acceptance cambodian refugees middle asia events iran afghanistan dramatized us critical importance american security prosperity area running middle east persian gulf south asia region provides world oil exports supplying energy needs allies europe japan scene almost constant conflict nations serious internal instability within many countries one nations invaded soviet union dealing multiple challenges number ways middle east first key goal administration since 1977 promote enduring resolution essential bringing stability peace entire region following camp david summit august 1978 march 1979 helped bring signing peace treaty egypt first time 30 years middle east conflict peace shined bright promising flame historic signing ceremony white house prime minister begin president sadat repeated camp david pledge work full autonomy west bank gaza since egypt israel working complete part camp david framework provide opportunity palestinian people participate determining future strongly support efforts pledged full partner autonomy negotiations continue work vigorously comprehensive peace middle east building unprecedented achievements camp david time reinforced america commitment israel security right nations area live peace neighbors within secure recognized frontiers persian gulf recent years fuel imports soared persian gulf become vital united states many friends allies longer term world dependence persian gulf oil likely increase denial oil us threaten security provoke economic crisis greater great depression 50 years ago fundamental change way live twin threats flow regional instability potentially soviet firmly defend vital interests threatened past year begun increase capacity project military power persian gulf region engaged explorations increased use military facilities area increased naval presence indian ocean working countries region shared security concerns rapid deployment forces described earlier could used support friendly governments gulf southwest asian region well areas south asia overwhelming challenge region dealing new situation posed soviet aggression afghanistan must help regional states develop capability withstand soviet pressures strengthened framework cooperation region want cooperate states region india pakistan sri lanka bangladesh nepal new situation proposing congress military economic assistance program enable pakistan buttress defenses matter urgent concern strongly urge earliest possible approval house senate also working closely friends pakistan increase resources available pakistan development security also pursuing possibility gaining access military facilities region time trouble prepared work closely friends region cooperative basis whatever required ensure aggressors would bear heavy costs aggression deterred high priority us region manage nuclear concerns india pakistan ways compatible global regional priorities changed security situation south asia arising soviet invasion afghanistan calls legislative action allow renewed assistance pakistan way diminishes commitment work prevent nuclear weapons proliferation pakistan elsewhere steady growth economic assistance also essential countries south asia achieve growth true stability africa peaceful transition majority rule southern africa continues major goal united states gave fullest support successful british drive reach agreement among parties rhodesia process implementation easy path open peaceful outcome european allies canada african states directly concerned also making progress toward independence majority rule namibia momentum resulting successful resolution rhodesian conflict aid initiatives congressional support executive branch decision maintain sanctions rhodesia parties reached agreement impartial elections process begun instrumental creating conditions necessary agreement united states european trading partners surrounding african states lifted sanctions process economic reconstruction begin creation independent zimbabwe many years fighting prepared cooperate coherent development plan poor nations southern africa region active support racial equality southern africa enabled united states develop continuing effective dialogue governments throughout continent africa grows important us economic political strategic reasons strengthening ties mutual interest africans continue participate first help africans resolve political problems maintain stability continent whether horn areas continent also provide friendly nations security assistance needed defense borders north africa 1979 united states moved help friend strengthening arms supply relationship morocco assisting morocco deal attacks inside internationally recognized frontiers seek conditions greater security confidence political settlement western sahara conflict effectively pursued though mediator united states months ahead encourage countries area resolve differences peacefully order vast economic potential north africa exploited people living latin america since inauguration worked hard forge new collaborative relationship nations latin america resting firm commitment human rights democratization economic development events turbulence central america us opportunities move toward goals encouraging progress area human rights democratization western hemisphere past year inauguration new democracy ecuador strong effort andean countries preserve democracy bolivia positive steps 1979 met president mexico twice discuss opportunities difficult issues two countries taken worthwhile steps including agreement natural gas trade october 1 vice president mondale many leaders latin america traveled panama celebrate coming force panama canal treaties transition new relationship new structure manage canal smooth effective contributions mutual respect panamanians americans vice president also traveled brazil venezuela secretary state met leaders quito inauguration new democratic president ecuador lapaz oas general assembly meetings helped us develop close consultative ties important free balanced community nations hemisphere also 1979 united states moved much closer economic political relationship increasingly significant andean pact countries memorandum understanding economic relations signed washington november central america caribbean region undergoing period rapid social political change threat intervention cuba may thwart desire people region progress within democratic framework working closely governments region try aid developmental process region prepared assist threatened outside intervention caribbean group coordinated world bank helped establish become important factor development region adding 260 million concessionary resources region increased aid caribbean reprogrammed loans seeking prompt congressional action supplemental 80 million nicaragua central america science advisor frank press led large delegation scientists educators barbados peru venezuela brazil forge new fruitful ties countries important areas science technology international economy growing defense effort vigorous foreign policy rest upon strong economy united states strength economy depends upon ability lead compete international marketplace energy essential lesson drawn iran compelling foreign policy well domestic economic reasons lessening dependence foreign oil response series united states proposals industrial countries adopted 1979 cooperative energy strategy 1980 main elements collective restraint oil imports intensified efforts conserve oil boost production conventional substitutes oil collaborative research development commercialization new fuel technologies tokyo economic summit june heads government seven major industrial democracies agreed must take responsibility curbing oil demand end year 20 industrialized nations members international energy association agreed enforce equitably allocated ceilings oil imports create system quickly adjusting ceilings changes world oil supply completion detailed agreements execute global oil process head international energy agenda 1980 1980 economic summit venice intend propose joint action smooth transition oil abundant fuels slow growth oil prices support international oil strategy administration united states coal industry launching joint marketing efforts make country major exporter steam coal assurance reliable united states coal supply competitive prices many electric power plants built 1980 1990 rather oilburning coal exports help us pay declining costly oil imports new source natural gas supply united opened conclusion negotiations close cooperation northern neighbor canada administration cleared way expanding flow canadian natural gas united states private development alaskan gas pipeline across canada lower 48 states continue believe power play essential role meeting energy needs many nations effective safeguards proliferation nuclear weapons international monetary policy moving forcefully establish fundamental economic conditions strong dollar 1979 balance payments approximate balance first time three years despite substantially higher oil import costs economic policies strong energy program provide basis improvement course outcome depends part also upon responsible pricing behavior opec oil producers support efforts way strengthen international monetary system urge congress enact promptly legislation permitting united states increase quota international monetary fund imf part general expansion fund resources welcome measures taken imf improve ability promote sound economic exchange rate policies member countries also welcome study possible establishment substitution account strengthen international monetary system promoting role special drawing right principal reserve asset system trade direction special trade representative brought successful conclusion multilateral trade negotiations ambitious set negotiations reduce barriers international trade decade resulting mtn agreements covering broad spectrum trade issues concluded ratified overwhelming majorities united states congress binding commitments signed major trading nations provide framework new era international trading relations developing nations makes clear resolve american people resist dangers protectionism reorganization federal government trade agencies directed assure effective prompt governmental action exploit export opportunities afforded mtn plan approved congress fall establishes strong authoritative voice executive office president provide coherence leadership united states trade policy negotiations implementation mtn trade codes reorganization establishes office trade representative strengthens commerce department sugar 1979 congress ratified international sugar agreement thus fulfilling major commitment administration agreement important element international commodity policy implications relations developing countries particularly sugar producers latin america agreement measures administration taken already helped stabilize sugar prices bring high domestic prices line prevailing world marketplace producers consumers alike benefit stable market essential commodity need prompt enactment implementing legislation agreement tin year end congress approved stockpile disposal legislation permit general services administration sell metric tons tin strategic stockpile contribute metric tons international tin organization ito buffer stock fulfills united states pledge made conference international economic cooperation represents major step forward relations producing countries developing world consult members ito ensure tin disposals disrupt markets take account needs producers consumers common fund united states joined members united nations conference trade development developed developing nations negotiating agreement framework common fund help international commodity agreements stabilize prices raw materials negotiations underway final articles agreement fund united states also participated successful negotiations international rubber agreement economic cooperation developing nations relations developing nations central importance united states fabric relations countries political economic dimensions witnessed recent weeks nations third world took lead condemning soviet invasion afghanistan ability work together developing nations toward goals political independence resolution regional tensions growing ties trade us maintain policy active engagement developing world pursued past three years foreign assistance legislation submitting fy 81 provides authority funds carry cooperative relationship large number developing nations prompt congressional action legislation essential order meet treaty base rights agreements continue peace efforts middle east provide economic development support countries need promote progress issues protect western interests counter soviet influence also asking congress enable us honor international agreements multilateral assistance authorizing appropriating funds international financial institutions finally administration congress agreed 1979 fundamental changes way united states government organized conduct economic technical relations developing nations submitted congress approved plan consolidate small body international development cooperation agency idca responsibility direct united states development assistance guidance united states representatives multilateral development agencies presenting development interests federal government policy bodies dealing trade economic relations developing nations also submitted house approved 1979 session congress plan establish institute scientific technological cooperation istc constituent element idca group agencies approved istc carry research well support research foreign scientists technological means reducing poverty developing nations war hunger one main economic problems facing developing countries lagging food production must help countries meet peoples free threat continuing hunger also societies strong enough resist external pressure directed united states bilateral multilateral aid geared increasingly goal recommended hunger commission chaired sol linowitz urging donor countries join effective efforts end good progress made since tokyo economic summit called increased effort front world bank giving problem top priority donor countries resources consultative group international agricultural research doubled period work institute scientific technological cooperation strengthen search relevant new agricultural technologies goal freeing world hunger year 2000 command full support countries human dimension foreign policy human rights ultimate aim foreign policy must preserve freedom expand freedom others matter national principle national interest believe free open societies better able meet rising expectations people also better able accommodate often conflicting internal pressures popular frustrations explode violent radical directions seek impose system institutions others rather seek support practical concrete ways efforts nations build institutions ways meet irrepressible human drive freedom justice human rights policy commands strong support citizens congress world climate increasingly favors human rights progress despite new turbulence conflict past year featured encouraging positive developments claim credit clear part growing movement 1979 saw strengthening democratic practices spain portugal free elections countries disappearance several world repressive regimes freeing political prisoners asia africa latin america return democratic rule several latin american countries widespread progress reducing human rights violations region growing strength international human rights institutions court human rights held first meeting preparations began another conference review compliance helsinki accords held madrid november oau took long strides toward establishing human rights commission africa un bodies became increasingly active human rights efforts united states still party key human rights treaties establish world standards implementing machinery early 1978 sent senate approval four treaties american convention human rights convention racial discrimination un covenants civil political rights economic social cultural rights hearings held 1979 single action country would advance human rights senate approval instruments fifth human rights treaty sent congress previously genocide convention urge earliest possible senate action humanitarian aid mass exodus refugees vietnam reached crescendo summer 1979 people month fleeing repression economic privation fled boat many lost sea july special un meeting refugees vice president mondale presented major united states program rescue help support resettle new refugee population doubled month number indochinese refugees united states accord finest traditions would absorb year ahead vietnamese invasion kampuchea late 1978 gravely jeopardized supply food already decimated brutalized khmer people october announced united states would pay costs international relief program mounted jointly unicef international committee red cross leaders thirtyfive church voluntary agencies white house encouragement engaged large program refugees early november carter visited refugees border reported back united states voluntary agencies american people response efforts avert mass famine accelerated obstacles remain warfare aggression vietnam phnom penh authorities much aid movement hungry khmer across thai border fed helped americans continue efforts public private avert famine looms new help efforts come national committee formed early 1980 leading citizens help mobilizing supporting sustained effort essential achieve humanitarian goal year began also considering new means helping contribution un high commissioner refugees ways mounting afghan refugee population pakistan desperate refugee situations somalia ignored destructive aggressive policies soviet union added immeasurably suffering three tragic situations asked heads appropriate departments executive branch play active role select commission immigration refugee policy formulate new approach deal sensitivity difficult subject people arriving shores latin america meeting pope john paul ii historic unprecedented visit united states helped raise world consciousness connection pressing problems famine homelessness human rights talks spurred positive action many areas notably indochina set stage action 1980 control nuclear weapons together friends allies striving build world peoples diverse interests live freely prosper humankind achieved date seeking accomplish human existence undone catastrophe nuclear war thus one central objectives administration control proliferation nuclear weapons nations development existing nuclear soviet union united states entered office committed assert american leadership stemming proliferation nuclear could create fundamental new instabilities critical regions world threaten security united states done unilaterally cooperation suppliers nuclear technology materials needed issue must become confrontation proceeding number fronts seeking encourage nations accede treaty accept international safeguards nuclear act calls safeguards connection united states nuclear exports international nuclear fuel cycle evaluation infce demonstrated suppliers recipients work together results published month differences remain provide broader international basis national decisions must balance energy needs concerns working encourage regional cooperation restraint protocol treaty tlatelolco contribute lessening nuclear dangers latin american neighbors yet ratified united states senate working together congress remain committed vigorous pursuit objectives limitations strategic arms prominent nuclear arms control efforts course salt ii signing treaty brought end painstaking negotiations carried three administrations parties ii mutual interest neither american favor soviet union soviet favor united states salt ii treaty would represent major step forward restraining continued growth soviet strategic forces salt ii reduces superpower competition dangerous manifestation treaty single important bilateral accord decade ii permit us better maintain strategic equivalence nuclear weapons devote defense increases heavily highest priority needs conventional force improvements soviets add power forces better conceal us salt ii beginning salt iii deeper cuts would take many years achieve salt ii efforts control proliferation nuclear weapons difficult believe senate ratify salt ii treaty simplest terms interest nation security believe advisable time bring treaty consideration senate floor congress executive branch must first deal pressing matters arising soviet invasion afghanistan conclusion enter decade 1980 face challenges home abroad test qualities toughness willingness sacrifice larger goals courage vision nation remain secure country prosper must rise narrow interests dangers disunity world major power confrontation rewards new national consensus sense purpose equally clear new support world purposes national independence individual human dignity new home required keep us strongest nation earth must move together decade strength comes realization dangers us confidence together overcome jimmy carter white house january 21 1980
congress united state state union address devote discussion important challenge face country enter 1980 come year challenge receive high priority great effort however also many significant area receive personal commitment well administration 2nd session 96th congress important congress along public aware vital area concern listen state union address way context address administration full message 1980 best understood reason send state union message congress today several day state union address congress last three year administration develop cooperative productive record congress landmark legislation enact major domestic international problem address directly resolve spirit mutual trust respect restore executive legislative relation indeed period recent past comparable record progress achievement american people much remain do afford rest record fail complete agenda begin 1970 ignore new challenge 1980 continue work together administration congress meet goal cooperative effort help ensure stable price economic growth return energy security efficient responsive government strong unsurpassed defense capability world peace program place congress since 1977 combine new initiative place congress year enable u reach goal task session complete work program doubt time waste record progress take office 1977 nation face number serious domestic international problem economy still recover serious recession since world war ii unemployment near 8 almost 8 million american worker unemployed national energy policy exist dependence foreign oil rapidly increase public trust integrity openness government extremely low federal government operate inefficiently administer essential program policy major social problem ignore poorly address federal government defense posture decline result continuously shrink defense budget strength nato alliance war ii low tension israel egypt threaten another middle east war america resolve oppose international aggression human right violation serious question past 36 month clear progress make solve challenge find january 1977 unemployment rate end last year represent 25 decrease three year 9 million job create americans 98 million work time history major part comprehensive energy program enact department energy establish administer program congress verge enact remain major part energy program confidence government integrity restore respect government openness fairness renew government make effective efficient civil service system completely reform first time century 13 reorganization initiative propose congress approve implement two new cabinet department create consolidate streamline government handle energy education problem inspector general place cabinet department combat fraud waste abuse budget practice institute throughout federal government cash management reform save hundred million dollar process issue regulation reform eliminate unneeded incomprehensible regulation procedure establish assure citizen participation government airline industry deregulate enormous saving consumer critical social problem many long ignored federal government address directly boldly urban policy develop implement reverse decline urban area food stamp program expand purchase requirement eliminate social security system refinance put sound financial basis full employment act enact federal assistance education expand 75 minimum wage increase level need ease effect inflation affirmative action pursue black hispanic woman appoint senior government position judgeships time history era ratification deadline extend aid ratification effort minority business procurement federal government double decline defense spending reverse defense spending increase real rate 3 1979 propose real increase defense spending level 20 next 5 year nato alliance revitalize strengthen substantially increased resource new deterrent weapon improve coordination increase emphasis also give conventional force capability meet crisis area world egypt israel end 30 year war peace treaty also establish framework comprehensive peace middle east commitment nation pursue human right throughout world nation friendly make clear resolve oppose aggression illegal invasion soviet union afghanistan support tough action legislative priority come legislative session last presidential term deeply commit finishing agenda place congress agenda comprehensive demanding also absolutely essential nation plan add significantly agenda year importance enact proposal already congress relatively short congressional session face u limit major new proposal critical youth employment general revenue share utility oil use reduction nuclear waste management nuclear regulatory commission organization standby gasoline ration plan initiatives implement response soviet invasion afghanistan convince new initiative along major proposal previously make congress enact year dedicate effort part administration congress pledge effort part administration previous three year work toward basic goal ensure economic strength create energy security nation enhance basic human social need make government efficient effective protect enhance right liberty preserve develop natural resource building america military strength work resolve international dispute peaceful mean strive resolve press international economic problem continue support build democratic institution protect human right prevent spread development nuclear weapon high legislative priority area year ensure economic strength fy 1981 responsible restrain budget whose enactment help control federal spending significantly reduce federal deficit aid fight inflation hospital cost long overdue legislation major weapon fight inflation save consumer billion dollar single important bill congress youth education train employment new initiative design educate train youth secure hold meaningful job provide enhanced opportunity disadvantage youth well improve productivity work force create energy security nation windfall profit size important energy tax measure agree conferee imperative final agreement tax reflect sound energy policy occur outset session congress act promptly agreement energy mobilization also essential vital measure effort eliminate unnecessary red tape construction need energy facility agree promptly conferees congress without substantive waiver law energy security conferee congress also need act expeditiously legislation bill critical nation begin serious massive program develop alternative energy fuel dependence foreign oil severely reduce necessary remove critical national effort constraint bind government agency legislation contain well vital energy conservation gasohol provision need move forward national effort area utility oil use new initiative aid effort reduce reliance oil require nation utility substantially convert oil energy facility nation utility define timetable bill key tool effort increase use coal abundant natural fuel source standby gasoline ration legislation enact last year propose congress standby gasoline rationing plan prompt approval require prepared significant energy supply interruption enhance basic human social need national health time improve health care provide citizen long overdue convince health plan propose last year provide realistic affordable beneficial way provide citizen health care need deserve provide million americans health coverage first time improve medicare coverage elderly protect every american disastrous cost extend illness national health effort also need prompt enactment two important health assurance program provide need health care disadvantage child mental health system act need reform mental health program welfare nation welfare system remain disgrace recipient taxpayer encourage family instability encourage waste differ provision house approve sound welfare reform proposal call upon senate act rapidly issue welfare reform become reality session general revenue propose reauthorization important program state local government order continue provide fund depend upon meet essential social operating need program essential element partnership forge state local government critical continue economic health state city county countercyclical revenue work congress provide aid need help financially press local area senate already act urge prompt house passage early session energy commit seek authority continue assistance program enact request last year give poor protection rise energy cost economic legislation reauthorize improve government ability provide economic development assistance key ingredient implement urban rural policy urge prompt action conference make government efficient effective regulatory continue pursue effort eliminate unnecessary regulatory burden concentrate seek approval year regulatory process reform bill truck rail deregulation proposal bank reform measure passage sunset legislation communication reform measure progress make first session final passage come session end nuclear regulatory commission state respond kemeny commission report propose reorganization nuclear regulatory commission order improve management emergency operate capability essential step improvement safety nuclear industry protect enhance right liberty equal right congress pass equal amendment possibility ratification lie state legislature essential member congress help state legislature toward end work member state yet ratify stand tall nation seek enhance human right home long deny american woman home fair continue press enactment important civil right initiative enable government enforce fair housing law effectively promptly critical civil right legislation congress year promise equal housing opportunity far long empty promise bill help make promise reality intelligence already propose legislative charter fbi soon propose legislative charter intelligence community charter protect citizen right enable agency meet responsibility preserve develop natural resource alaska high environmental priority congress continue enactment legislation preserve protect alaska land urge senate follow house lead area oil hazardous waste program need mitigate effect oil hazardous substance spill release uncontrolled hazardous waste dump grow national problem nuclear waste propose series legislative administrative initiative implement nation first comprehensive nuclear waste program building america military strength defense department authorization propose defense budget contain real growth outlay essential congress support increase amount strengthen defense capability work resolve international dispute refugee legislation legislation necessary improve refugee program provide need domestic assistance refugee prompt house action would assure sound framework within accommodate increase flow refugee strive resolve international economic problem bilateral multilateral foreign propose foreign assistance legislation provide authority need carry forward cooperative relationship large number develop nation prompt congressional action essential china trade seek early approval congress trade agreement reach china agreement represent major step forward process toward improved economic relation china continue support build democratic institution protect human right special international security assistance send congress military economic assistance program enable pakistan strengthen defenses prompt enactment one high legislative priority human right continue press senate ratify five key human right american convention human right convention racial discrimination un covenant civil political right economic social cultural right genocide convention prevent spread development nuclear weapon salt ii firmly believe salt ii nation security interest add significantly control nuclear weapon soviet invasion afghanistan believe advisable senate consider treaty ensure economic strength economic program since take office design achieve several goal continue economic growth unemployment inflation past three year considerable progress make area economy recover deep recession since world war ii sustain economic recovery last three year reduce 25 employment high level history increase unacceptable level large part opec price increase program put place moderate inflation equitable effective way 1980 continue steady economic policy work date succeed make economy strong however congress cooperation confident work together successfully year achieve economic goal inflation inflation continue serious economic problem restrain inflation remain high domestic priority inflation current unacceptably high level direct result economic problem build virtually without letup decade easy answer quick solution inflation eliminate overnight root economy deep cause pervasive complex know spend way problem gradual reduction inflation rate ease economic pressure cause inflation hope lie program public private restraint program attack structural cause inflation policy pursue continue pursue last year especially difficult time policy opec increase price 80 thus add three point inflation rate energy price increase exclude inflation last year would nearly three percentage point low big challenge policy keep energy price increase permanent damage prevent dangerous acceleration wageprice spiral program successful accomplish inflation slow year 1981 even low progress result persistence battle inflation many front budget restraint budget deficit fy 1979 lower billion 50 fy 1976 level regulatory reform flood new costly government regulation slow procedure ensure achieve regulatory goal manner take hold guideline guideline standard follow vast majority union negotiate contract nearly every major corporation country energy energy legislation put place past two year begin reduce dependence foreign oil consumption important energy fuel gasoline thereby reduce ability oil produce nation disrupt economy productivity begin introduce policy increase industrial innovation thereby productivity decline productivity growth must reverse improve real living standard long term 1980 congress cooperation continue aggressive fight inflation major front budget restraint deficit fy 1981 budget less half fy 1980 budget deficit represent 75 reduction deficit inherit regulatory reform pursue deregulation legislation truck rail banking communication industry well regulatory management reform legislation bill enable u eliminate unnecessary regulatory burden labor accord pay advisory price advisory committee establish result last year historic accord organize labor enable u well implement coordinate labor business private restraint necessary part effort accord signal willingness labor full partner fight inflation energy expect enact major energy windfall profit tax energy mobilization board energy security session legislation combine voluntary mandatory energy conservation measure take even strong hold year enable u reduce dependence foreign oil productivity implement industrial innovation program expand commitment budget research development council wage price stability council wage price stability play vital role effort council staff lead responsibility within executive branch implement voluntary wage price monitoring program without council continue role effort could begin assess whether private sector cooperating standard therefore essential council along staff operation reauthorized early year reauthorization contain amendment interrupt restrain important essential work council staff 1981 budget budget send congress fy 1981 meet nation critical need continue sound budgetary policy administration pursue throughout term office single year budget accurately portray philosophy administration however clear pattern budget spend couple careful targeting resource area greatest need 1981 budget continue pattern lower deficit roughly 50 billion ran office time recommend increase program critical national concern last year budget austere propose eliminate program reduce spend others tough decision prove correct provided country clear benefit pleased congress approve budget virtually form propose result action rate federal spending growth slow importantly widespread expectation federal budget would continue upward spiral unchecked proven false move path necessary achieving balance budget near future help fight inflation 1981 budget continue policy restraint real growth spending close zero deficit cut half last year deficit percent budget gnp second low point decade small deficit seven year economy continue grow rate hold unemployment rate current level budget would surplus time propose vital spending increase 1981 budge increase uncontrollable program increase automatically require exist law also discretionary increase part strengthen defense force enhance crucial investment energy production conservation addition propose major new initiative reduce youth unemployment state local government receive continued fiscal support general revenue share extension propose develop budget year several respect difficult previous year international turmoil threaten vital interest energy problem dampen economy alter domestic priority inflation erode basic program add new pressure federal spending confident budget responds need nation press need position u responsible effective government 1980 fiscal policy president concerned tax burden citizen result worked congress enact two major tax cut 1977 propose congress pass 8 billion individual tax cut part economic stimulus package 1978 propose congress pass 21 billion individual business tax cut year two cut reduce american tax burden 31 billion recognize interest another tax cut year 1981 budget propose tax cut long inflation continue sign recession top budgetary priority must reduction deficit long run continue tight control budget expenditures hold share federal spending gnp inflation hand raise percentage national income collect tax time two development tax reduction possible still maintain fiscal restraint need control inflation however timing structure tax reduction critical importance must dictate economic circumstance urgency fight require defer tax reduction time tax reduction put effect prematurely wrong economic condition could make inflation bad overstimulating economy inflation still run unacceptably high level virtually economic forecaster predict onset mild recession administration estimate budget receipt expenditures fy 1981 budget assume recession however none current economic statistic yet show overall economic decline recent month economy display much strength earlier forecast predict forecast impend recession may therefore prove wrong previous one employment hold part due unsatisfactory productivity performance enact tax cut would run serious risk add inflationary demand pressure economy continue grow strongly predict forecast present high inflation afford risk tax reduction timely design insofar possible way achieve multiple reduce tax burden stimulate growth raise investment productivity reduce inflation well particular significant part tax reduction direct provision incentive increase investment improve productivity expand capacity adjust high energy price serious consideration give case tax cut individual lower social security payroll tax since half reduction would go towards lower business cost price necessity inflation fight require cautious tax reduce do require ignore change economic condition economic situation prospect sharply worsen consider recommendation deal situation circumstance tax cut measure could take improve prospect employment growth reduce business cost assist severely damage recession without threaten set inflationary demand pressure however current economic situation warrant measure would inappropriate propose time employment administration work closely congress make significant progress reduce serious unemployment problem exist three year ago december unemployment rate represent 25 reduction december 1976 rate million people job begin administration total employment reach high 98 million december nonwhite employment increase million person adult female employment increase 5 million person employment black teenager actually decreased period increase 15 since take office although unemployment rate youth especially minority youth still high progress make continue make progress 1980 result framework already establish strengthen year comprehensive employment training act ceta reauthorized 1978 four year full employment act become law many year effort private sector initiatives program new partnership government private sector assist disadvantage unemployed successfully implement target job tax credit enact provide employer economic incentive need increase hire unemployed youth others historically difficulty find job massive effort reduce problem cause excessive youth unemployment rate strengthen revitalized year new 2 billion youth education train employment program year work aggressively make certain framework continue successfully implement even effort may sufficient economic forecast accurate keep unemployment rate rise monitor economy closely unemployment dramatically increase prepared consider action counter increase consistent override concern accelerate inflation time though unemployment low level year would premature unwise propose measure might helpful time high unemployment youth employment fact persistently high unemployment among poor minority youth three decade demonstrate clearly inadequacy system teach train help young people find keep decent job economic challenge 1980 require energy commitment entire american work force afford waste anyone talents become society ideal must provide economic opportunity administration commit renew national effort remove unnecessary obstacle productive life every american past three year develop solid record increase resource youth employment training program 4 billion conduct large experimental youth program effort ever attempt reduced overall youth unemployment rate 15 good enough youth unemployment especially poor minority still unacceptably high base experience gain past three year advice thousand american help vice president task force youth employment last nine month administration devise new approach announce two week ago program significant new domestic initiative send congress year federal government make comprehensive effort ever eradicate cause excessive harmful youth unemployment 1982 new program increase federal resource commit reduce youth unemployment 2 billion total 6 billion program two key component school youth major effort department education teach basic skill youth junior senior high school locate community provide work experience train school hour disadvantage youth provide department labor redesign expanded work experience training program well basic skill program manage department education department education basic education skill train program fully implement provide basic education employment skill approximately 1 million junior senior high school student poorest urban rural school district around country new program emphasize skill youngster include help student limited ability english plan active involvement teacher parent employer community link work way motivate student stay school major role vocational education prepare young people work department labor new youth employment program fully implement provide education work experience train labor market information service young people year new resource add current program serve million olds year program emphasize train work experience opportunity older youth performance standard participant program operator incentives encourage great cooperation ceta sponsor local employer school official three exist ceta youth program closer coordination summer employment program simplify local administration reduce paperwork learn 1960 1970 know must concentrate administration management know must tough performance standard merely allocation formula know partnership government element private sector must make reality focus basic skill key job success future also know hope young people live great country precious resource must keep hope alive work closely intensively congress enact carry youth employment program soon possible trade past year one unmatched historic achievement vital component trade 1979 nearly 3 million job manufacture industry one every seven job manufacture depend upon export performance overseas market export key contributor growth economy 1979 export agricultural industrial good grow unparalleled 35 billion reach level 180 billion represent increase 25 export 1978 record increase export couple slow rate growth import result substantial improvement 5 billion balance trade furthermore rapid growth service export 1979 lead 13 billion improvement current account bring account deficit 1978 near balance 1979 expect 1980 export continue strengthen continue conserve limit import oil improve trade balance position dollar future american export bright remain despite necessity suspend certain export soviet union administration accomplish several goal last year assure continue great export therefore job possibility worker farmer improve condition access export foreign market sign force july last year new trade act reflect two year hard bargaining recently conclude round multilateral trade negotiation negotiation include major develop less developed country result agreement strengthen rule conduct international trade open new market export negotiation historic importance scope accomplishment success attributable close cooperation exist negotiation congress private sector administration negotiate success challenge u take advantage opportunity improve export performance meet challenge propose 1979 major reorganization government trade policy export promotion activity reorganization strengthen government coordination trade field provide improve basis protect american interest recently negotiate trade agreement put reorganization effect congressional approval earlier month change initiate trade reorganization ensure trade united state trade partner conduct fairly openly consistent decision suspend certain type trade soviet union administration seek year find additional way foster export expansion study possibility agreement expand trade traditional new trade partner include china look forward work congress way continue improve trading position turn help maintain prosperous american economy small business year mark high point three year accomplishment small business administration begin decade continue effort strengthen large vital sector economy white house conference small business convene eighteen month ago conclude deliberation fulfills pledge make 1976 voice small business would hear administration anticipation conference call head every executive department agency propose least one initiative benefit small business 160 separate initiative propose examination many already put effect make great stride reform regulatory process cut federal paperwork develop flexible regulation provide minimize eliminate burden small business capital gain tax significantly reduce corporate tax small business lower also increase small business administration lending activity billion 1976 billion 1979 increase 72 since 1977 double federal purchase good service minority firm billion billion 1979 confident purchase exceed billion year put place comprehensive policy strengthen role woman business direct federal agency take affirmative action include woman management assistance program sba advocacy role strengthen direction sba add membership regulatory council productivity council help assure problem issue face small business address wherever relevant policy decision make federal government reduce paperwork regulatory burden small business face raise capital recently propose small business issuer simplification act legislation exempt burdensome registration requirement federal security law sale security small business institutional investor bank insurance company pension fund others make investment least finally last week send congress message small business emphasize vital importance small business report step already take plan take 1980 strengthen small business minority business begin term work congress increase opportunity minority business result effort enormous progress make last three year federal procurement minority own firm increase nearly two half time federal deposit bank nearly double minority ownership radio television station increase 65 almost 15 fund spent local public work act 1977 go firm section 8 program operate small business administration reform strengthened year administration commit expand upon progress make date year commit tripling 1977 level federal procurement firm doubt meet goal 1981 budget improve target small business administration loan business also expand management technical training assistance minority firm provide substantial funding increase minority capital development sba minority enterprise small business investment company mesbic program also propose congress minority business legislative initiative establish department commerce minority business development agency agency successor office minority business enterprise establish last year administrative authority believe congressional authorization would strengthen operate ability woman business last year announce new policy strengthen foster growth business new budget include fund make policy reality increase sba direct loan woman 50 assist woman gain access source finance expand management technical assistance woman insure woman bare full access opportunity start maintain enterprise start genuine momentum take full advantage contribution woman make growth productivity economy ii create energy security since take office high legislative priority involve development nation first comprehensive energy policy struggle achieve policy difficult u accomplishment past three year leave doubt country finally serious problem cause foreign oil accomplishment lose however progress stop fail move forward even year single panacea solve energy crisis must rely encourage multiple form crude oil natural gas solar nuclear conservation therefore essential congress enact major energy bill propose last year enactment immediate high legislative priority year windfall profit tax high immediate legislative priority session prompt passage sound windfall profit tax crude oil last april propose tough windfall profit tax recoup portion unearned income would accrue oil company result phased decontrol domestic crude oil price opec price increase essential revenue invest behalf american help u become energy secure nation revenue tax use support key national energy goal energy assistance improve expanded mass transit energy supply conservation program windfall tax propose also carefully design provide incentive need increase domestic oil production proposal expect barrel per day increase domestic production due decontrol high world price without windfall profit tax production would marginally higher 1985 american people clearly want national energy need clearly tough windfall tax afford delay conference committee reach agreement tax raise 227 billion next ten year tax level acceptable provided component tax consistent sound energy policy urge conferee congress approve forthwith tax sign higher legislative priority energy mobilization board last july together comprehensive energy program ask congress join create energy mobilization board emb board cut burdensome unnecessary red tape reach prompt decision designate priority energy project streamline without override substantive law strongly oppose board key element strategy attain energy security cut foreign oil import come year prompt passage emb one high priority year urge congress complete action proposal without delay energy security corporation last year propose creation energy security corporation lead national effort develop produce synthetic fuel synthetic oil shale biomass corporation would independent body chartered government authorize use variety financing price guarantee federal purchase loan stimulate private sector development synthetic energy alternative import oil recommend corporation give goal develop capacity produce million barrel per day synthetic fuel oil shale biomass 1990 ability produce commercially synthetic alternative foreign crude oil nation effectively cap price foreign oil producer charge crude oil job must nation security operate program within government corporation much easily obtain needed talent operate without constraint bind government agency enactment legislation contain energy security corporation one high legislative priority session urge conferee complete work expeditiously corporation open door early possible year reduction utility oil use soon send congress legislation assist utility use coal encourage retire exist oil burning plant generate department energy staff work closely congressional energy leadership last several month develop legislative proposal act upon quickly propose utility oil use reduction legislation help u achieve two basic energy dependence foreign oil increase production abundant secure energy supply coal reason passage legislation one high energy priority year gasoline ration soon send congress approval standby gasoline rationing plan authority legislation sign law last year develop plan give priority attention accommodate essential gasoline usage bearing mind need design plan workable put place quickly severe emergency arises recognize difficulty develop plan meet many compete state local concern last year experience demonstrate difficulty well determine certain congress avoid repeat administration work closely congress standby plan hope congress recognize override national importance emergency preparedness take action early approve propose plan intend current supply condition implement ration program longer afford unprepared possibility severe interruption energy supply energy conservation first energy address nation april 1977 stress importance conservation cornerstone national energy policy cheap fast mean reduce dependence import oil constitutes alternative source supply extent home factory car public make task providing secure source energy future much attainable november 1978 sign law country first energy conservation tax credit provide 300 home conservation investment additional 10 percent investment tax credit industrial investment energy efficient equipment time put place requirement utility provide energy audit customer offer arrange financing also establish stiff tax new gas guzzling automobile result april 1977 initiative also provide total 900 million three year weatherize school hospital across nation last july propose program provide billion next decade subsidize interest rate homeowner loan conservation investment program target homeowner apartment owner tax credit less effective incentive program expect consumer total monthly bill decline since financial saving result low energy use great monthly payment subsidized loan consider new program essential piece overall conservation strategy urge conference committee work bill contain provision complete work promptly energy conservation must also go forward state local level help important effort urge congress pas proposal authority propose energy management partnership act provide grant local government meet national energy conservation goal solar energy last june send congress message solar energy outline administration solar program set national goal year 2000 derive 20 nation energy solar renewable resource firm ambitious federal government also state local government private industry academia private require reach goal part solar program announce june propose number initiatives congress assist solar energy development among establishment solar energy development bank fund 150 million per year provide subsidize loan installation solar equipment home commercial structure additional tax credit passive solar construction wood stoves industrial agricultural solar application gasohol initiative yet enact congress urge prompt action measure help speed penetration solar technology marketplace addition fy 1980 program solar energy exceed 1 billion three time great program place take office fy 1981 expenditures solar renewable energy nearly billion include program administer department energy agriculture interior defense state housing urban development tennessee valley authority federal solar program overall objectives emphasis basic research development solar technology currently economic photovoltaics electricity generate directly sun provision fund technical information accelerate use marketable solar technology available solar heat hot water wood energy among technology continue work congress session passage critical solar energy legislation make progress transition away dependence fossil fuel towards widespread use renewable source energy must maintain aggressive policy achieve transition nuclear safety immediately follow accident three mile island establish presidential commission chair president dartmouth college report action need prevent recurrence kind accident safety remain administration primary priority regulation management nuclear power take step correct virtually problem identify kemeny commission act implement specific recommendation include reorganization nrc strengthen role chairman soon send congress reorganization plan give chairman power select key personnel act behalf commission emergency appointment new chairman nrc outside agency next vacancy occur meantime designate commissioner ahearne chairman mandate initiate change need assure safety nuclear power plant operation direction federal emergency management agency lead emergency activity review emergency plan state operate reactor june request nrc accelerate program place resident federal inspector every reactor site upgrade training evaluation program reactor operator endorse approach nrc adopt pause license urged commission complete work quickly possible event later june year institute necessary reform assure safety must resume license process promptly new plant need reduce dependence foreign oil build operate nuclear power option keep open gasohol recently propose program accelerate dramatically america production use gasohol yet another important way energy war administration commit program provide billion billion assistance stimulate production alcohol fuel come decade quadruple current gasohol production capacity end year 1981 capable produce ethanol annual rate 500 million six time current rate entire amount ethanol turn gasohol would replace almost 10 anticipated demand unleaded gasoline 1981 overall gasohol program spur investment together must make secure energy future create new market farmer longer throw away waste material turn profitable essential fuel nation enormous agricultural fiber resource use help provide secure source energy future produce gasohol fiber agricultural meet fuel need million american include farmer eager work congress alcohol fuel program soon legislation authorize provide funding important energy development energy impact assistance new domestic energy resource develop particularly rural isolate area country must provide need rapidly develop community administration continue work congress enact legislation establish inland energy assistance program funding 150 million per year aid state local area experience rapid growth population result new energy supply development community often plan meet increase need new public facility service since population increase occur new energy supply activity fully develop produce local revenue legislation essential ensure burden associate solve energy problem bear equitably citizen region country iii enhance basic human social need many year immediately precede administration many nation basic human social need ignore dealt insensitively federal government past three year significantly increase fund many vital program area develop new program need unaddressed target federal support individual area need assistance remove barrier unnecessarily keep many disadvantaged citizen obtain aid basic need effort past three year produce clear progress effort solve country fundamental human social problem administration congress work together demonstrated government must meet citizen basic human social need responsible compassionate way unfinished agenda still congress meet obligation help american realize dream sound health care decent housing effective social service good education meaningful job still important legislation enact year legislation congress work toward enactment health national health plan last june propose congress national health plan enable country reach goal comprehensive universal health care coverage legislation submit lay foundation comprehensive plan address serious problem health finance delivery realistic affordable enactable overpromise overspend result solution thirty year congressional battle national health insurance plan include follow key feature nearly 15 million additional poor would receive comprehensive coverage delivery service provide pregnant woman coverage provide acute care infant first year life elderly disable would limit placed annual medical expense would longer face limit hospital coverage employee family would receive insurance least major medical expense mandate employer coverage medicare medicaid would combine expanded umbrella federal program healthcare increase program efficiency accountability uniformity strong cost control health system reform would implement initiative include great incentive health maintenance organization enact year plan would begin provide benefit 1983 urge congress compare plan either little improve health care need american need program would impose enormous financial burden american taxpayer comparison complete convinced congress see need benefit plan work toward prompt enactment afford delay vital area hospital cost containment hospital cost containment remain single important piece legislation congress pas demonstrate commitment fight inflation legislative initiative save billion dollar nation consumer eliminate unnecessary wasteful hospital service longer allow hospital inflation put need health care reach average american sector absence competitive force hospital cost containment legislation necessary restrain spending process develop effective measure proceeds longer delay enact cost containment expensive fight hospital inflation become ask senate move quickly legislation health promotion disease prevention last july surgeon general release healthy people landmark report health promotion disease prevention report signal grow consensus nation health strategy must refocus 1980 emphasize prevention disease specifically report lay measurable achievable goal reduction mortality reach 1990 consistent report health strategy propose fy 1981 budget place unprecedented emphasis prevention strategy include increase fund many new continue program area environmental hazard workplace health safety commercial product safety traffic safety community water fluoridation health education promotion information maternal child health ensure healthy start life child remain high priority administration also one cost effective form health care take office immunization level preventable childhood disease fall 70 result concert nationwide effort administration please report least 90 child 15 virtually child immunize addition report case measles mumps low level ever national health plan propose prenatal delivery service pregnant woman acute care provide infant first year life preventive service recognize extremely high return term improve newborn child health child health assurance program chap legislation already submit congress additional two million child 18 become eligible medicaid benefit include special health assessment chap also improve continuity care nearly 14 million child eligible medicaid additional pregnant woman become eligible prenatal care proposal must work together year enact chap thereby provide million needy child essential health service third consecutive year request expansion special supplemental food program woman infants child proposal 2 million nutritionally needy mother nurse infant child receive special food supplement month food supplement show prevent ill health thereby reduce later medical cost addition legislative initiative propose increased funding fy 1981 budget successful family plan program target service woman adolescent high risk unwanted pregnancy 1981 budget contains continue fund adolescent health initiative design provide coordinate service pregnant teenager well reduce incidence unwanted pregnancy expansion service poor underserved health proposal fy 1981 place high priority expand improvement make administration access continuity care medically underserved group propose substantially increase funding successful program area include community migrant health center national health service corps program place health professional rural urban medically underserved area addition propose legislation make coverage clinic provide comprehensive primary care service mandatory benefit medicaid mental health last year submit mental health message congress propose mental health system act base upon recommendation commission mental health act design inaugurate new era federal state partnership plan provision mental health service addition act specifically provide prevention support service chronically mentally ill prevent unnecessary institutionalization prevention service development mental health service year administration work intensively congress prompt enactment important legislation first lady continue substantial work area effective spokesperson advocate mental health reform throughout country worker health safety administration continue enforce fully law protect worker health safety sensible efficient manner make effort eliminate frivolous unneeded rule concentrate great enforcement effort dangerous particularly unhealthy occupational environment effective management worker safety program serve interest labor management well work condition drug abuse prevention begin administration half million heroin addict united state continue emphasis reduce supply heroin well provide treatment rehabilitation victim reduce heroin addict population reduce number heroin overdose death 80 reduce number heroin related injury 50 however drug abuse many form continue detract quality life great concern u people nation particularly concerned increase quantity heroin originate iran southwest asia continue especially alert threat 1980 1980 also strive reduce supply illegal drug overseas source within united state continue comprehensive treatment program priority reduce drug abuse among adolescent one important goal administration begin decade change social acceptance drug use food nutrition building comprehensive reform food stamp program propose congress pass 1977 administration congress work together last year enact several important change program change simplify administration reduce fraud error make program responsive need elderly disabled increase cap allowable program expenditures session continue work congress achieve additional improvement food stamp program eliminate permanently expenditure cap also propose year congress pas administration child nutrition amendment target assistance school meal program need education stern challenge 80 place new demand every sector society education insurance provide talent capability meet every demand national agenda challenge 80 education see quantity education become quality education challenge meet last year administration congress successfully collaborate create new department education department give education strong voice federal level time reserve actual control operation education state locality private institution department combine nearly 150 exist federal education program cohesive streamlined organization responsive need student department cut red tape paperwork make flow federal dollar school district institution high education efficient thereby provide student educator benefit per dollar federal fund determine work closely congress year make certain department begin sound basis consistent purpose hop congress create ensure adequate financial resource education request since take office overall increase federal aid education 75 previous administration last budget many program include serve disadvantage handicapped student provide financial aid student enrol postsecondary education benefit ever large percentage increase administration fy 1981 budget request education represent generous increase last year budget particularly significant increase number program serve special population addition major new program design give youth basic skill need get keep job also recommend substantial increase program deal international education improve understanding nation addition proposal submit last july reauthorize high education act still consideration congress centerpiece proposal student financial aid program major reform student loan program proposal would first time provide comprehensive program loan federal government high education student need proposal would eliminate much paperwork confusion plague student parent college mandate single application form federal assistance essential reauthorization enact year reauthorization legislation must consistent commitment restrain responsible budget eager work congress achieve goal soon possible income security welfare reform last year propose welfare reform package offer solution urgent problem welfare system proposal embody two work training opportunity act social welfare reform amendment act within framework present welfare system reform proposal offer achievable mean increase work rather welfare adequate assistance people unable work removal inequity coverage current program fiscal relief need state locality current welfare system long overdue serious reform system wasteful fully effective legislation propose help eliminate inequity establish national minimum benefit directly relate benefit level poverty threshold reduce program complexity lead inefficiency waste simplify coordinate administration among different program last year house pass social welfare reform amendment act address major problem cash assistance program year must continue momentum toward welfare reform determine whatever help enact two bill need comprehensive reform welfare system history child welfare administration work closely congress legislation design improve greatly child welfare service foster care program create federal system adoption assistance work congress legislation almost complete child need home permanent placement primary concern administration determine see improvement system care child legislation help ensure energy assistance last year propose program provide total billion per year household hardest hit rise energy bill congress cooperation able move quickly provide billion assistance need winter amount billion provide grant eligible household 400 million energy crisis assistance program first check receive eligible family individual early january already propose continue press legislation provide billion year energy assistance fund program come windfall profit tax continue assistance one high priority session congress social security deeply commit restore public confidence trust social security system passage social security amendment 1977 financial stability system improve month 35 million american receive pension disability check rely without fear interruption must however address continue financial viability social security system light change economic circumstance must also review equity distinction contain system benefit provision help ensure system viability propose legislation permit borrow among separate trust fund measure strengthen social security system current future beneficiary also review closely work several major study group consult expert department health human service congress assess recommendation disability insurance reform result legislation enact 1977 strengthen finance social security system social security disability insurance program stable financial condition last year administration propose modification program improve administration increase incentive disable beneficiary seek rehabilitation return work 1980 work congress enact reform hope congress stay close possible original proposal housing administration bring improved stability nation housing market housing start 1977 1979 average million unit per year remain commit assuring availability adequate level mortgage credit period record high interest rate toward goal develop six month money market certificate broaden secondary market activity government national mortgage association federal home loan mortgage corporation recently bank regulator introduce two one half year certificate become valuable source fund saving institution enable continue high level mortgage lending pleased policy begin slow rate growth home price within context overall economic strategy continue support measure provide improve stability housing industry avoid boom bust cycle lead unemployment business failure dislocation past sent congress legislation update government emergency authority program purchase mortgage time economic stress current authority could use effectively urge quick congressional action legislation administration position use program necessary also bring improved stability predictability high production provision assist housing american include elderly handicap period 1978 1981 administration commit nearly million unit housing low income renter homeowner actual construction start reach unit 1979 level sustain next several year propose fy 1981 budget level assist rental unit assist homeownership unit total 25 increase 1980 level recommendation reflect administration concern number poor american still live substandard housing also propose year extend hud home ownership assistance interest subsidy low income tenant designate revitalization area help address particular problem displacement low income person elderly urban revitalization condominium conversion administration work congress pas condominium reform legislation propose last year legislation provide basic protection purchaser condominium unit many unit owner lack adequate remedy redress serious inequity exist law expeditious federal action area priority 1980 also propose number significant new legislative initiative propose comprehensive simplification consolidation nation basic housing law mortgage insurance mortgage credit activity federal housing administration government national mortgage association proposal make service agency understandable accessible american public also recommend prompt congressional action extend home mortgage disclosure act important factor aid availability mortgage credit inner city area finally build urban partnership establish city continue increase control local government exercise operation federal housing program propose fundamental change hud public housing modernization program allow local authority use 50 public housing production fund modernization repair exist deteriorated stock public housing recognition severity housing problem america rural community implement action agenda 12 rural housing initiative announce last month neighborhood development neighborhood development essential component policy design revitalize nation urban area administration take number step assist neighborhood group carry community improvement plan fiscal year 1981 propose increase fund neighborhood development program program aim build capacity independent neighborhood organization implement conservation revitalization project neighborhood 1980 strongly support renewal home mortgage disclosure act order encourage neighborhood reinvestment administration also continue support fully neighborhood reinvestment action independent regulatory agency federal home loan bank board community investment fund transportation major goal 1980 bring dramatic increase economic energy efficiency transportation system nation transportation facility among best world plan design construct era abundant cheap energy country face totally different situation scarce increasingly expensive energy help combat problem propose use billion next decade windfall profit tax revenue increase energy efficiency transportation 13 billion would allocate increase transit capacity billion would direct promote use automobile 1 billion research automotive fuel efficiency urge congress enact proposal without delay promote energy conservation stimulate urban growth create new employment opportunity inner city urge congress support mass transportation authorization legislation year seek reauthorization extension public transportation grant program assistance congress take number positive step reform outmode transportation regulation airline deregulation act 1978 work well reduce passenger fare per mile airline well able withstand effect recession fuel price increase would otherwise possible continue type progress last year submit truck rail regulatory reform bill commit seek enactment 1980 important bill save consumer billion dollar annually reduce waste fuel consumption improve america railroad introduce legislation direct federal railroad financial assistance toward restructure fail railroad improve employment efficiency also ask congress increase funding extend life northeast corridor improvement project improve passenger rail service northeast statutory authority present airport program related aviation tax expire 1980 already send congress proposal use nearly 15 billion airport airways trust fund next five year airport aviation expense urge congress enact proposal year finally commit development maritime industry achieve maximum export competitive position united state tie port facility land transport facility must greatly improve last year administration conduct comprehensive review maritime policy transmit congress goal liner regulation merchant marine promotion year work congress pas legislation embody interest expand trade strong merchant marine fleet special need woman effort administration last several year concentrate provide american woman full range opportunity programmatic initiative develop overcome widespread discrimination disparity woman face education health employment woman education equity act fund title ii provide school board grant program design end discrimination education avoidance discrimination education also stress improvement enforcement exist civil right legislation particular health problem face addressed increase family planning fund title xx well improve teenage pregnancy funding program national health plan provide complete coverage pregnant mother infant without cost employment still continue major problem wide gap average week wage men woman address major improvement fund woman bureau department labor model train program research project ceta prime sponsor match basis improve amount funding program year ahead administration support passage legislation decrease domestic violence provide shelter batter spouse family part administration effort focus attention upon strengthen family structure last year establish office family within department health education welfare office help coordinate activity vital area later year hold white house conference family initially propose 1976 campaign conference culmination three year work help focus public attention problem affect family mean need solve avoid problem older american administration take great stride toward solve particular problem face senior citizen early term work successfully congress assure adequate revenue social security trust fund also sign law legislation prohibit employer require retirement prior age 70 remove mandatory retirement federal employee administration work closely congress amend old american act way already improve administration housing social service food delivery employment program year submit congress budget demonstrate commitment program elderly include increase funding nutrition senior center home health care focus add resource need old american also seek strengthen social security system propose legislation permit borrow among separate trust fund 1981 white house conference age approach administration make every effort assure effective useful conference forum enable old american voice concern give u guidance continue effort ensure quality life richly deserve senior citizen special attention need care refugees 1979 administration make significant progress resolve number problem arise increase refugee last march propose comprehensive refugee legislation regard passage high priority year first comprehensive reform refugee immigration domestic resettlement policy bring common sense cohesion unnecessarily fragment approach international domestic refugee need vigorous new leadership office coordinator refugee affair create last year aggressively address need refugee home abroad also encourage great cooperation private sector action ensure successful refugee resettlement veteran commitment peace national security remain strong ever nation obligation whose past service country help keep peace world reason administration commitment need america veteran remain high priority administration commit sustain high quality health care hospital system large free world encourage growth effective efficient manner commitment reflect budget fy 1981 system must maintain independent integrity 1980 continue honor seek recognition nation veteran must acknowledge veteran vietnam war yet accord full honor bestow upon veteran past war continue year assist veteran special need concern build initiative last year veteran accordingly year ask congress reform revitalize va vocational rehabilitation program extend eligibility bill veterans vietnam war era need advance job training opportunity addition seek increase benefit recipient participate current bill program nation veteran deserve benefit commit serve budget also propose legislation grant increase recipients compensation disability incur service country government assistance general aid state local government since take office strongly commit strengthen fiscal condition nation state local government accomplish goal maintain consistent strong economic growth encourage economic development local community support general revenue share fiscal assistance program general revenue share year propose renewal general revenue share administration proposal forge close partnership among federal state local government emphasize pivotal role state federal system proposal grs renewal also provide additional aid city county strain fiscally soon send legislation congress extend grs five year current funding level billion one third money provide state government basis current distribution formula condition continue payment state state require constitute commission assess address fiscal problem confront state local government within state commission provide mechanism involve state great extent government partnership grs payment provide local government basis population tax effort per capita income propose retention basic distribution formula local government also propose number modest formula change provide great aid locality large service responsibility insufficient fiscal resource proposal grs renewal cornerstone policy government relation 1980 policy emphasize need level government cooperate order meet need fiscally strain city county also emphasize important role grs play forge partnership urge congress move quickly grs proposal assure nation state localities begin 1980 sound fiscal condition target fiscal assistance last year submit congress fiscal aid package design strengthen fiscal condition nation state locality first part legislation provide standby legislation protect state locality unexpected change national economy second part provide transitional highly targeted fiscal assistance fy 1980 distress local government substantial progress make legislation past year senate pass legislation providing target fiscal assistance aid august 1979 similar legislation ready house action important congress complete action legislation early year urban policy two year ago propose nation first comprehensive urban policy policy involve one hundred improvement exist federal program four new executive order nineteen piece legislation congress cooperation fifteen bill sign law additional action expect put place proposal year economic development one principal goal domestic policy strengthen private sector economic base nation economically troubled urban rural area congress cooperation substantially expand federal government economic development program provide new tax incentive private investment urban rural community program help many community attract new private sector job investment retain job investment already place take office federal government spending less 300 million annually economic development program 60 million fund nation urban area fy 1980 budget request billion economic development grant loan interest subsidy billion loan guarantee approximately 60 fund spent nation urban area fy 1981 budget continue program already high level addition extend 10 investment credit include rehabilitation exist industrial facility well new construction year need continue progress extend expand program economic development administration congress cooperation legislation already pass house senate house senate bill include key element original national development bank proposal provide substantial expansion economic development grant loan loan guarantee interest subsidy program federal government legislation vitally important economic revitalization redevelopment nation economically troubled urban rural area hopeful conferee complete work shortly get essential program underway continue believe development private sector investment job key revitalize nation economically depressed urban rural area ensure necessary economic development go forward congress must enact legislation reauthorizing program economic development administration legislation conference urge conferee complete work soon provide foundation economic development nation 1980 community development partnership among federal state local government revitalize nation community high priority administration take office propose substantial expansion community development block grant cdbg program enactment new 400 million urban development action grant udag program program provide essential community economic development assistance nation city county year ask congress reauthorize cdbg udag program propose cdbg program reauthorized three year 150 million increase funding provide fy 1981 also propose udag program extend three year 675 million provide program upcoming fiscal year action help nation city county continue progress make last three year rural policy since begin administration take step address press need change rapidly grow rural america many rural area rural resident last decade time rapid growth development growth development produce high income increase job rural community also create substantial housing energy transportation health management problem last december announce small community rural development policy culmination several year work design address press problem affect rural area major element policy involve position secretary agriculture small community rural development provide leadership carrying policy work group assist implementation policy citizens advisory council advise president performance federal government implementation policy recommend need change invitation nation rural development council work partnership federal agency deliver state federal program rural area directive work group annually review exist propose policy program budget level determine adequacy meeting rural need fulfil policy objective principle landmark policy first time rural affair give prominence presidential policy although many new program authority deal rural problem provide past two three decade institutional capacity federal level coordinate focus effort coherent effective way policy provide capacity back personal commitment make work administration work congress year pas legislation need fulfill commitment rural policy initiative consumer consumer representation last september sign executive order design strengthen coordinate federal consumer program establish procedure improve facilitate consumer participation government decisionmaking order federal agency must adopt implement strong consumer program also establish interagency council coordinate agency action respond executive order year leadership special assistant consumer affair work make certain order faithfully implement consumer receive good protection assistance federal agency administration continue support effort provide financial assistance regulatory proceeding citizen group small business others whose participation limit economic circumstance program need balance regulatory process assure opportunity broad public involvement proceeding finally administration continue support reform procedure ease unnecessary burden cost class action time prevent use harassment technique national consumer cooperative bank administration work closely congress create national consumer cooperative bank bank provide loan loan guarantee financial service consumer cooperative operate area food housing health auto repair demonstrate commitment innovative institution sign legislation increase appropriation bank 4 million fiscal 1979 74 million fiscal 1980 legislation also sign add two member bank board represent interest small business one represent general public year continue effort congress make bank strong vital resource consumer consumer service information genuine competition lack many service industry consumer generally lack comparative cost quality information help alleviate problem administration assist nonprofit group state local government agency develop local consumer information system provide accurate cost quality data locally provide service essential part effort evaluation impact well consumer information inflation productivity service sector science science technology since begin administration commit strengthen nation research development capability advance area science technology vital economic social wellbeing commitment reflect 40 increase basic research funding result high research development fund nation history new automotive research initiative industry partnership federal government undertake basic research essential help improve future automobile acceleration scientific technological exchange people republic china major review space activity need result 60 increase space funding development space policy set direction space effort next decade major new program encourage industrial innovation undertaking pursue cooperation congress year space diversity activity space show space technology become integral part communication remote sense defense civilian purpose study earth universe guide sound aggressive fiscally responsible space policy administration undertaken concert effort support space activity administration expenditures federal space program increase 75 much increase meet increasingly operational nature space activity nearly half expenditures defense purpose satellite example enormously important stabilize world affair thereby make significant contribution security nation new initiative establish oceanic satellite system provide invaluable ocean data civil defense sector thereby avoid unnecessary duplication also emphasize space science exploration continue fund spectacular program voyager mission provide u remarkable view jupiter moon propose two new space telescope new gamma ray observatory provide unique capability observe distant galaxy obtain information universe outside earth obscure atmosphere 1980 continue strong support space program reflect budget continue commitment space shuttle art humanity art art provide fundamental enrichment nation national endowment art play major role focus public attention art endowment bring wider audience part country contact art since begin term increase government support endowment activity continue record expand support year enable endowment strengthen effort open art new audience new forum new part country humanity humanity play vital role deepen understanding culture society enable national endowment humanity continue important effort propose increase funding endowment maintain program aid scholarly research education cultural interpretation endowment use increase fund augment support research design increase understand tradition culture direction country third world study explore complex public ethical issue create increasingly technological society effort preserve priceless document material constitute heritage nation regional ethnic community bring fruit work increase number public large support provide humanity activity library museum medium well variety special activity tailor need group traditionally ready access opportunity learn humanity pursue objective endowment concentrate use federal fund stimulate support source order enhance tradition private philanthropy expand financial base cultural institution district columbia long nation capital convenient target misdirect political attack administration develop partnership progress district columbia administration work last congress pas propose constitutional amendment grant full voting representation citizen nation capital ratification process propose amendment begin urge state legislature ratify resolution join continue effort year ratification effort last year progress make toward strengthen district ability meet citizen need congress help enact legislation authorize construction full metro mass transit system legislation fund district pension plan municipal employee 1980 build record administration continue work closely congress mayor barry expand home rule district include development sensible formula determine federal payment district continue work mayor barry make nation capital city model rest nation commission holocaust last year receive approved recommendation president commission holocaust establish assess government might officially recognize first time tragedy holocaust shortly appoint council distinguish american develop way implement commission proposal council administration work closely congress establish appropriate memorial six million jew million victim nazism world war ii iv make government effective efficient one major commitment candidate make federal government effective efficient past three year congress help believe enormous progress make toward goal reform think civil service enact regulatory airline regulation government reduce eliminate come year intend work congress improve government ability serve nation effectively government reorganization one high priority improve quality efficiency federal program reorganization since take office submit 13 reorganization initiative congress congress approve initiative strengthen federal government capacity deal effectively critical issue energy civil service disaster relief civil right international development assistance education trade 1979 congress approve legislation seek consolidate education program new cabinet department department education provide leadership improved management direct accountability performance congress involve education every level month put effect major reorganization federal government trade function approve congress last year conjunction multilateral trade negotiation agreement reorganization ensure expand trade opportunity american business abroad fully realize goal trade expansion give high priority federal government organizational initiative also important part energy program consolidate enforcement function alaska natural gas transportation system single federal inspector ensure timely completion natural gas pipeline reduce dependence foreign oil propose creation energy mobilization board expedite federal state local decision propose energy facility also urge congress approve creation energy security corporation spur development domestic fuel industry year propose congress another significant reorganization plan strengthen internal management effectiveness nuclear regulatory commission safety high concern regulate nuclear power development reorganization plan help improve nrc ability ensure nuclear safety general management reform simplify government citizen reduce burden unnecessary requirement regulation pursue number initiative year institute governmentwide management system mandate cost effectiveness new regulation sunsetting old one 1980 continue pursue reform regulation legislation design make permanent new framework manage regulatory process legislation reduce paperwork red tape also pursue initiative simplify eligibility requirement human service program improve management delivery social service increase use private sector skill talent reform reduce obstacle needy citizen seek assistance improve ability remove fraud system last year implement program manage government cash flow efficiently save 450 million year expect annual saving 600 million timely collection cash payment tighter control disbursement reduction idle balance vigorously implement legislation pass last year establish independent inspector general department coordinate work executive group combat fraud waste government spot area management reform especially likely increase efficiency create management improvement council diagnose circumstance prescribe cure continue pursue vigorously effort improve structure management government program tough unglamorous work essential reduce cost government provide good service american people civil service compensation reform march 1978 say civil service reform would centerpiece government reorganization effort congress support pleased report work well first real test reform act 98 eligible manager join senior executive service choose challenge accountability demand new corp top executive office personnel management merit system protection board federal labor relation authority authorize act operate effectively first year agency throughout government continue make substantial progress implement important civil service reform first time hundred year history civil service system federal employee get hold job pay basis actual merely length service last year ask congress take next step federal employee compensation reform message urge pass pay reform bill would modernize federal compensation system legislation fair federal employee american taxpayer alike white collar blue collar military compensation system must reform order make certain neither overpay underpay federal employee fair bill one help restore public confidence federal service urge congressional action regulatory reform past three year put place comprehensive program overhaul federal regulatory establishment eliminate unnecessary regulatory burden 1980 determine continue progress effort important part ongoing campaign make government efficient effective airline deregulation airline deregulation act 1978 revolutionize air transportation first year operation new environment free competition create law produce record number flight passenger much wide variety service package savings approximately billion fare pay travel public act regulatory control continue relaxed 1985 cab completely phase existence trucking deregulation trucking industry enmesh detailed regulation control rout trucker drive good carry addition trucker allow fix price industry rate bureau regulatory system work stifle competition waste fuel reduce service small town inflate price appointee interstate commerce commission start modernize system need legislation provide comprehensive reform submit bill open entry lift restriction good trucker may haul route may use promote vigorous price competition reduce regulatory delay improve safety road bill important step fight inflation look forward passage sound bill early summer appropriate legislation enact would expect icc proceed authority implement reform initiatives addition need legislation increase competition household move industry senate recently pass constructive bill urge house strengthen pas railroad deregulation railroad traditionally one overregulated industry america result management initiative service competitive pricing stifle railroad plant equipment deteriorate average railroad industry rate return investment far low administration continue work eliminate wasteful condition regulatory structure help principal weapon effort railroad deregulation bill propose last year enactment significant railroad deregulation legislation year essential restore railroad system former strength financial institution regulation last year combination deposit rate ceiling outmode restriction asset power thrift institution produce severe inequity small saver substantial saving outflow many thrift institution disruption availability mortgage credit contrary intend purpose regulation q system contribute cyclical nature housing market destabilize flow mortgage fund related area change competitive relationship well innovation market increase inequity produce continue decline federal reserve membership time take action necessary prepare financial environment 1980 congress pass legislation 1979 increase ability many american obtain mortgage credit addition congress make major progress toward enactment historic financial reform legislation propose last year year work closely congress achieve final approval financial reform objectives phaseout regulation q deposit rate ceiling broaden asset liability process thrift institution approval legislation stem decline federal reserve membership elimination unwarranted regulatory restraint prompt action necessary avert significant decline federal reserve membership assure fair rate return saver steady flow housing credit stable financial environment class depository institution spring submit congress administration finding mcfadden act geographic restraint bank activity telecommunication deregulation technological advance satellite computer microwave relay make practical move much telecommunication industry regulate monopoly deregulate competitive market shift already underway benefit individual customer well company toward end continue support strongly ongoing effort congress pass bill encourage protect competition remove needless regulation maintain universal reliable service addition need legislation smooth transition competitive environment protect worker right ensure large increase rural telephone rate provide needed national security emergency preparedness power regulation reform act march 1979 send congress regulation reform act enact bill assure new exist regulation rigorously scrutinize issue retain wasteful delay eliminate regulatory process key regulatory official select purely grounds integrity competence public assure meaningful opportunity participate regulatory reform step take administratively already avoided billion dollar unnecessary regulatory cost erase thousand useless regulation book osha agency open regulatory process across executive branch enactment regulatory reform bill legislation need congress strengthen reform extend benefit independent regulatory commission presidential oversight regulation many regulatory program vital protection health safety welfare citizen must manage effectively cut wasteful red tape rigidity cost impose industry public enhance opportunity public participation outset administration actively used authority president assure executive branch regulatory agency respect goal executive order oversight office management budget regulatory analysis review group assure regulatory cost accurately evaluate regulatory council eliminate duplication overlap among individual agency pursue effort 1980 legislative veto support regulation reform act strongly oppose proposal would undermine ability president manage regulatory process would cripple effectiveness need program particular administration oppose proposal subject individual agency rule veto one two house congress transfer regulatory policy authority federal court create rigid statutory procedure presidential supervision executive branch regulatory agency last year see congress besiege assault various important regulatory statute especially federal trade commission act seek groundless exemption cripple loophole unprecedented congressional interference ongoing proceeding resist strenuously effort confuse special interest pressure regulatory reform communication high priority communication area passage regulatory reform legislation cover telecommunication industry addition 1980 continue program make medium diverse ensure public get full benefit advance communication technology administration effort include work increase minority participation already program help produce increase minority ownership broadcast station continue progress work federal communication commission continue eliminate needless paperwork regulation pursue plan open channel many new radio station improve service rural area provide opportunity minority develop proposal improve way frequency assign include incentive user conserve increasingly crowd radio spectrum encourage use satellite cable tv technology deliver public service improve rural communication work congress fcc protect first amendment right free flow information measure bill police search newsroom continue support strong independent public broadcasting system work increase coverage reach american addition submit senate later year treaty protocol result world administrative radio conference conclude geneva december conference conference hold next year determine utilization radio spectrum rest century prepare conference two year delegation secure united state allocation necessary civilian military service also respond legitimate need third world nation sunset continue work congress pas sunset legislation legislation overcome inertia let u federal program continue outlive purpose ensure congress regularly review program decide whether change eliminate comprehensive sunset bill strong mechanism force action program need change vital toward make government efficient paperwork reduction past three year administration cut amount time americans spend fill federal form 127 million 15 recently issue executive order continue progress strengthening management program however congress enact new paperwork requirement energy environmental protection area must legislation provide strong administrative control need minimize burden urge congress pas paperwork reduction act close wide loophole executive branch oversight power create new authority halt duplicative data collection addition urge legislation enact improve federal statistical system strengthen central management encouraging agency share data new tough confidentiality safeguard lobby reform american people right know significant influence affect national legislature proliferation organizational lobbying activity recent year demonstrate clear need reform outdated ineffective lobby disclosure law effect year administration work congress pas sound lobby law reform respect first amendment right americans minimizes paperwork burden yet allows meaningful disclosure public financing congressional election impact special interest contribution congressional campaign grow dramatically recent year time adopt public financing congressional election late public financing avoid even appearance undue special interest influence allow worthy candidate without adequate fund run congress urge congress act legislation judicial reform civil justice reform message last year make proposal increase efficiency cut cost enhance integrity federal court system last year sign federal magistrate act 1979 senate house pass dispute resolution act would develop simple informal mean resolve citizen dispute look forward early final action legislation federal court improvement act pass senate urge house act early session hope congress also pass bill recommend message one would curtail diversity jurisdiction leaa leaa potential improve strengthen state local criminal justice program never realize two year ago propose reform structure program last month congress pass sign bill incorporate reform reauthorized leaa four year reform preclude excessive expenditure fund equipment enable good information research crime problem permit fund innovative program high probability record proven success year implement new legislation way make certain agency efficiently carry mission provide meaningful law enforcement assistance patent reform part industrial innovation policy announce last year seek reform patent law way spur creativity invention administration work congress develop single policy guide department agency deal patent result research uniform treatment encourage commercial use discovery protect taxpayer investment protect basic right liberty since take office work protect enhance basic fight liberty guarantee american constitution law cooperation make important progress area year though important work remain do goal ensure equality basic freedom american realize dream equal opportunity remain unfulfilled whatever bring dream closer realization equal right amendment commit strongly possible ratification equal right amendment ratification year one high priority result effort 1978 equal right amendment deadline ratification extend three year two year three state leave afford delay marshal resource effort obtain ratification three additional state help believe succeed year although congress official role ratification process point ability affect public opinion support state legislator amendment urge member state yet ratify equal right amendment use ability civil right completion civil right reorganization significant operational improvement agency carry equal employment opportunity function enable federal government shift focus first time enforcement effort buttress vigorous successful posture several landmark affirmative action case time reorganization mandate eliminate unnecessary cost paperwork burdens business vigorously implement equal employment opportunity commission continue increase resource year make certain civil right activity give high priority agency create civil right unit office management budget new unit monitor civil right enforcement advise director omb fund management resource need effective enforcement martin luther king martin luther king lead nation effort provide citizen civil right equal opportunity commitment human right peace stand monument humanity courage one nation outstanding leader appropriate birthday commemorate national holiday continue work congress enact legislation achieve goal fair housing enforcement law housing discrimination lag comparison employment area adequate enforcement mechanism title viii civil right act prohibit discrimination housing largely ineffective strongly support legislation seek provide department housing urban development power hold administrative hearing issue cease desist order case title viii violated continue work congress 1980 enact authority enactment continue high legislative priority civil right area intelligence charter legislative charter intelligence agency charter fbi long overdue failure define law duty responsibilities agency make possible abuse occur recent year several month ago submit congress legislative charter fbi protect right citizen preserve bureau ability meet important responsibility 1980 continue work congress toward enactment legislation event past year indicate need strengthen clearly define role intelligence community basis sound consultative work do already congress plan submit propose charter early year hatch act reform federal employee work nonsensitive position right participate political activity administration continue support legislation would reform hatch act accomplish goal would prevent political abuse criminal code federal criminal law often archaic frequently contradictory imprecise clearly need revision codification administration continue work congress develop federal criminal code simplifies clarify criminal law maintain basic civil liberty protection labor law reform labor law vital ensure sound relationship exist collective bargaining effort abuse labor law especially unduly slow block implementation increase recent year result reform labor law badly need guarantee intend spirit fully observe enforced ready work congress develop legislation improve fairness effectiveness labor law handicap administration make great stride toward end discrimination handicap people broadened employment opportunity educational opportunity great access public facility service come office department health education welfare issue first regulation section 504 rehabilitation act since numerous federal agency issue final regulation expect regulation necessary agency end 1980 last year support legislation would prohibit discrimination handicap private employment housing continue support initiative year clarify legislative administrative uncertainty provision act affect right program affect handicapped individual administration work improve program serve handicap must continue push removal psychological physical barrier handicap people society actively organize prepare next year international year disable international year enable public private sector work demonstrate commitment disable teach learn nation way advance quality life handicap individual privacy change society threaten right personal privacy government private institution collect increase amount information individual many decision make base record data modern technology allow data transfer throughout country instantaneously much information must collect use enforce law provide financial service important service however need must balance right privacy harm unfair use information last year announce government first comprehensive privacy program building legislation already pass prevent improper use wiretap improper access personal bank record new program five separate privacy safeguard medical research bank insurance credit record provide special protection model wiretap law electronic fund transfer system addition propose legislation limit police search newsrooms deal problem create supreme court stanford daily decision privacy program include action well improve handle federal stop growth personnel record start cut back establish rule control computer match federal file call upon employer establish voluntary privacy code record concern employee launch nationwide hearing promote effort international guideline need protect privacy personal information transfer one country another avoid disruption need information flow spearhead work organization economic cooperation development toward end guideline draft adoption year key protection however need legislation urge congress act five privacy bill submit vi protect develop natural resource two nation great natural resource environment fertile agricultural capacity since office work congress preserve protect appropriate develop natural resource environmental area concern importance preserve clean environment take number major action design foster environment agricultural area take step need improve farm income increase agricultural production record level help continue make progress area 1980 environment balance need resource development conservation major environmental theme administration remain strongly convince nation economic energy development adequate environmental protection open decade 80 american proud natural cultural heritage continue satisfy economic recreational spiritual requirement 1980 tenth anniversary decade environmental awareness begin earth day 1970 past decade monumental legislative achievement occur include national environmental policy act clean air clean water act additions national park trail river system endanger specie act pleased sign law reauthorization endanger specie act last year 1980 celebrate tenth anniversary let u rededicate creation maintenance safe healthy environment wise use development natural resource fair implementation environmental statute preserve unique wildlife resource even great achievement improve quality life american next year administration vigorously pursue protection alaskan land implementation effective water resource policy careful implementation domestic energy production program proper regard environmental value review wilderness potential public land creation hazardous waste management program fishery development coastal management policy alaska land passage legislation adequately resolve allocation federal land alaska continue high environmental priority stake fate ten million acre beautiful land outstanding unique wildlife population native culture opportunity ensure future generation american able experience benefit nationally significant resource proposal support 95th congress first session congress assure alaska great national treasure preserve provide increase domestic energy production economic need alaskan addition recommendation designate national park wildlife refuge wilderness area national forest wild scenic river federal land alaska propose aggressive environmentally sensitive oil gas development program alaska out continental shelf national petroleum reserve administration also step transfer 103 million acre federal land state alaska 44 million acre alaskan native state alaska native corporation build economic base however order maintain proper balance resource protection development alaska congress must enact comprehensive legislation body two year 96th congress soon ask vote clearly amount conservation decision century house representative already pass strong conservation bill senate shortly take debate issue urge congress carry responsibility enact legislation truly protect preserve natural heritage alaska hazardous substance one important environmental public health issue face nation threat cause improper disposal hazardous substance accident like love canal valley drum highlight inadequacy exist law inability government level respond quickly efficiently dangerous incident come year may thousand hazardous waste site need attention cost could enormous clearly effective public policy need deal situation last june submit congress comprehensive billion legislative proposal establish system deal release uncontrollable hazardous waste site well spill oil hazardous substance system include provision emergency government response effective enforcement liability case economic compensation system also call partnership state clean contain problem legislation absolutely essential meet responsibility public urge congress act expeditiously nuclear waste management problem related management disposal storage nuclear waste remain one serious problem nuclear power administration deeply concerned problem past three year exhaustive study review problem undertaken administration past year base finding recommendation study soon propose congress comprehensive legislation deal directly problem proposal enact represent big step forward area nuclear waste management since dawn nuclear age urge congress take action area year rare ii 1979 submit congress recommendation wilderness national forest rare ii procedure proposal include million acre new desirable area within vast review 10 million acre undergo study addition direct forest service release multiple use management 36 million acre land designate urge congress approve recommendation year water policy legislation sound water management vital economic environmental health nation administrative implementation comprehensive water policy initiative announce june 1978 near completion continue work congress pas legislation need improve federal water resource program support state primary responsibility water allocation management please last fall senate authorize expanded grant program state water management water conservation technical assistance expect house soon pass legislation cost share bill propose critically need give state effective voice set water project priority state federal water policy decision believe establishment independent review unit water resource council essential urge congress act quickly pending authorization independent review unit provide objective impartial technical analysis administration congress water project propose authorization construction funding information enable administration congress make good inform decision invest taxpayer water resource dollar clear administration support sound water resource development take several step improve quality project send congress authorization funding concerned water project authorization bill consideration congress threaten overturn progress make recent year urge congress give legislation careful thoughtful scrutiny require joint commitment restrain federal spending ensure sound environment fishery development last may administration propose fishery development policy recognize importance commercial fishing industry nation economy fish important food source policy include recognition potential fishery expansion within nation fishery conservation zone importance federal government create positive climate fishery development conjunction policy administration send legislative proposal fishery development congress time united state begin take action fully utilize fishery resource economic zone urge congress join effort agriculture agricultural progress much work remain do america agriculture far best world effort make administration cooperation congress secure economic stability farmer produce result 1979 experience another record year farm production net farm income jump 32 billion 1979 4 billion increase 1978 agricultural export also reach new high rise 18 1979 32 billion despite suspension export soviet union expect continue healthy export picture nation farmer last year secretary agriculture travel around country conduct extraordinarily detailed creative dialogue nation farmer obtain invaluable suggestion economic social issue concern farm life prepare farm program year beyond advice nation farmer clearly reflect policy develop congress soviet grain suspension response soviet armed invasion afghanistan christmas eve take several action demonstrate nation resolve resist hostile act aggression sovereign independent nation one important action suspension grain sale soviet union beyond 13 million ton provided 1975 grain agreement soviet union intend purchase estimate 25 million ton wheat feed grain thus suspension sale 8 million ton agreement level expect result free 17 million ton decision suspend sale difficult one necessary one could continue business usual soviet union invade independent sovereign nation area world strategic importance united state fully commit policy promote international trade particularly expand export agricultural product proud administration record regard aggressive effort american farmer businessmen work cooperation federal representative provision new authority congress set new export record past 3 year even soviet suspension intend set still another record come year making decision suspension believe would unfair ask american farmer bear great share burden sacrifice fellow american ask bear farmer penalize simply part agricultural machine grow strategic importance world protect american farmer price depress effect grain suspension direct secretary agriculture take several action commodity credit corporation assume contractual obligation grain previously commit shipment soviet union department agriculture act commodity credit corporation purchase wheat contract export soviet union purpose form emergency international wheat reserve connection propose legislation authorize release wheat international aid purpose encourage farmer place additional grain grain reserve secretary agriculture make several modification important program commodity credit corporation purchase corn local level alleviate congestion within transportation system cause refusal international longshoreman association load grain 8 million metric ton level combination action expect isolate market amount grain equivalent ship soviet union thereby avoid decline grain price pleased report action desire result american farmer protect effect suspension action necessary insure american agriculture bear disproportionately large share burden associate action hesitate take crop insurance assortment federal loan grant insurance program design protect farmer economic risk associate natural disaster recognize early administration program serious need reform mark many shortcoming inconsistency eligibility inequity level benefit producer different crop inefficiency use taxpayer money recent evidence abuse agricultural disaster loan program provide evidence need reform send congress proposal consolidate authority form comprehensive insurance program congress make clear progress devise improve crop insurance program work remain do urge congress finish work legislation soon possible international emergency wheat reserve congress yet act proposal make last session create international emergency wheat reserve reserve 4 million ton wheat would use assure recipient nation meet international food aid commitment suspension grain sale soviet union provide appropriate opportunity provide authority thereby establish guideline release wheat acquire commodity credit corporation foreign policy time assume office three year ago month stress need country assert lead role world undergo extensive intensive change human history policy direct particular three area change steady growth increase projection abroad soviet military grown faster past two decade overwhelming dependence western nation increasingly include united state vital oil supply middle east pressure change many nation develop world include year old revolution iran uncertainty future many country result fundamental fact face serious challenge history nation soviet invasion afghanistan threat global peace relation regional stability flow oil unprecedented overwhelming vote general assembly demonstrate country across particularly soviet invasion threat independence security turmoil within region adjacent persian gulf pose risk security prosperity every western nation thus entire global economy continue hold american hostage iran affront civilized people everywhere serious impediment meeting threat widely share common iran focus urgent effort press problem continue pursue benefit change bring always essence america want move understand prosperity progress peace stand still world nation strive preserve independence people aspire economic development political freedom world hostile ideal interest unite state face powerful adversary strong friend dependable ally common interest vast majority world nation people encourage development recent year well matter require continue vigilance concern alliances world advance democratic state western europe japan stronger ever help bring dramatic improvement relation egypt israel historic step towards comprehensive settlement relation china grow closer provide major new dimension policy asia world across southern africa rhodesia namibia help peaceful transition majority rule context respect minority well majority right central challenge u today steadfastness purpose longer tempted isolationism must also learn deal effectively contradiction need cooperate potential adversary without euphoria without undermine determination compete adversary necessary confront threat may pose security face broad range threat opportunity continue pursue broad range defense diplomatic economic capability objective see five basic goal america world 1980 continue past three year build america military strength ally friends neither soviet union nation reason question sustain strongest flexible defense force pursue active diplomacy world friends resolve dispute peaceful mean make aggressor pay heavy price strive resolve press international economic energy continue pursue still large objective global economic growth expand trade development assistance continue vigorously support process build democratic institution improve human right protection around world deeply convinced future lie dictatorship democracy remain deeply committed process mutual verifiable arm control particularly effort prevent spread development nuclear weapon decision defer abandon effort secure ratification salt ii treaty reflect firm conviction unite state profound national security interest constraint soviet nuclear force treaty provide continue close cooperation congress executive branch require achieve goal immediate legislative priority include 1 defense department authorization appropriation bill 2 special international security assistance pakistan country 3 bilateral multilateral foreign assistance bill include central america supplemental 4 china trade agreement 5 intelligence charter 6 refugee legislation fund 7 human right convention 8 appropriate salt ii treaty one immediate press objective uppermost mind american people release hostage iran basic quarrel nation revolution people iran threat come american policy soviet action region prepare work government iran develop new mutually beneficial relationship possible long iran continue hold american hostage defiance world community civilize behavior must release unharmed thus far pursued measure program peaceful diplomatic economic step attempt resolve issue without resort remedy available u international law reflect deep respect nation rule law safety people hold belief great power bear responsibility use strength measure judicious manner patience unlimited concern fellow citizen grows day enhance national military strength maintenance national security concern every president state one year ago atlanta still world danger world democracy freedom still challenge world peace must every day must military power political deter adversary support friend ally must pay whatever price require remain strong nation world price increase military power major adversary grown readiness use power make evident afghanistan relationship demonstrate soviet union across broad front pay heavy price aggression term relationship throughout last decade relation mixture cooperation competition soviet attack afghanistan ruthless extermination government highlight stark term darker side well beyond competition legitimate pursuit national interest violating norm international law practice attempt subjugate independent islamic people callous violation international law united nation charter two fundamental international order hence also dangerous threat world peace first time since world war ii soviet send combat force area previously control sovereign state january 4 therefore announce number measure include reduction grain sale curtailment trade technology transfer design demonstrate firm opposition soviet action afghanistan underscore belief face blatant transgression international law impossible conduct business usual also consultation ally country region regard additional multilateral measure might take register disapproval bolster security southwest asia hearten support express position fact support tangible well moral destruction independence afghanistan government occupation soviet union alter strategic situation part world ominous fashion bring soviet union within strike distance indian ocean even persian gulf eliminate buff soviet union pakistan present new threat iran two country far vulnerable soviet political intimidation intimidation prove effective soviet union might well control area vital strategic economic significance survival western europe far east ultimately united state clear entire subcontinent asia specifically pakistan threaten therefore ask congress first order business pas economic military aid package design assist pakistan defend defense budget many year soviet steadily increase real defense spending expand strategic force strengthen force europe asia enhance capability project military force around world directly use proxy afghanistan dramatize vastly increase military power soviet union soviet union build war machine far beyond reasonable requirement defense security contrast defense spending decline real term every year 1968 1976 reverse decline effort every year since 1976 real increase defense lead encourage increase ally support congress must make even great effort year ahead fiscal year 1981 budget would increase funding authority defense 158 billion real growth 5 request fiscal year 1980 therefore request outlay defense fiscal year 1981 grow 3 real term precede year trend mean correct remedied overnight must willing see program ensure set growth rate defense sustain long haul defense program propose next five year require sacrifice well afford defense program emphasize four area ensure strategic nuclear force equivalent soviet union deterrence nuclear war maintain b upgrade force military balance nato warsaw pact continue deter outbreak europe c provide u ability come quickly aid friend ally around globe ensure navy continue powerful sea strategic force strengthen three legs strategic force cruise missile production begin next year modernize strategic air deterrent capability also improve step maintain enhance fleet improve ability deliver weapon increasingly heavily defend target also modernize strategic submarine missile force first new trident submarine already launch begin sea trial year second trident launch spring 1980 first new trident missile range mile already begin operational patrol poseidon submarines new mx missile enhance survivability intercontinental ballistic missile force decide last spring produce missile select base mode best suit enhance capability mx strengthen capability attack wide variety soviet target new system enable strategic force maintain equivalence face mount soviet challenge would however need even great investment strategic system meet likely soviet buildup without salt force nato greatly accelerate ability reinforce western europe massive ground air force crisis undertake major modernization program army weapon equipment add armor firepower tactical mobility prepositioning heavy equipment europe help u cope attack little warn greatly strengthen airlift sealift capability also improve tactical air 1700 new fighter attack aircraft next five increase number air force fighter wing 10 accelerate rate move combat aircraft europe cope surprise attack add number shelter european airbases prevent aircraft destroy ground rapid deployment force systematically enhance ability respond rapidly contingencies wherever require commitment vital interest threaten rapid deployment force assemble extraordinarily flexible could range size ship air squadron formation large men together support force prepare rapid deployment region strategic significance among specific initiative take help u respond crisis outside europe development production new fleet large cargo aircraft intercontinental range design procurement force maritime prepositioning ship carry heavy equipment supply three marine corp brigade addition respond soviet military presence cuba proxy role cuba behalf ussr take take follow action support rapid deployment force 1 substantially increase ability monitor cuban activity 2 establish caribbean joint task force headquarters improve ability respond event region 3 increase regional military exercise 4 intensify assistance country region threaten soviet cuban intervention naval force sea power indispensable global peace also war shipbuilding program sustain navy 1990 continue build capable ship afloat program propose assure ability navy operate high threat area maintain control sea protect vital line military provide strong maritime component rapid deployment force essential operation remote area world predict far advance precise location trouble preposition equipment land military personnel matter capable advanced weapon system military security depend ability train dedication people serve arm force determine recruit retain foreseeable circumstance ample level skilled experienced military personnel enhance readiness combat endurance improve reserve component reservist assign unit structure complement provide need depth active force reserve personnel also equip new equipment mobilization planning also launch major effort establish coherent practical basis government mobilization planning begin last may first effort conduct presidential level since world war ii involve virtually every federal agency aim improve efficiency readiness intelligence posture national interest critically dependent strong effective intelligence capability shortchange intelligence capability need assure national security maintenance continue improvement intelligence effort essential cope successfully turbulence uncertainty today world intelligence budget submit congress responds need responsible way provide significant growth fiscal year 1980 budget growth enable u develop new technical mean intelligence collection also assure traditional method intelligence work also give proper stress must continue integrate mode collection analyse imperative move forward promptly within context effective congressional oversight provide america intelligence community charter permit operate effectively within national concern codify law regional policy every president three decade recognize america interest global must pursue global foreign policy two world war make clear stake western europe north antic area also inextricably link far economically militarily united state permanent presence security commitment would automatically trigger become increasingly conscious grow interest third middle east persian gulf area vital stake major region world well long recognize era interdependence security prosperity depend upon large common effort friend ally throughout world atlantic alliance outset administration emphasize primacy antic relationship country national security agenda make important progress toward make atlantic alliance still effective change security environment meeting soviet challenge number important way first recognition among ally mutual security responsibility share committed increase national defense expenditures 3 per year remain much work do strengthen nato conventional defense work proceed alliance long term defense program help achieve objective last month nato ally take historic step alliance security policy decision improve substantially theater nuclear capability theater nuclear force modernization tnf program include deployment improve pershing ballistic missile cruise missile europe receive unanimous support ally accelerate deployment soviet mirved missile make modernization step essential tnf deployment give alliance important retaliatory option make clear soviet wage nuclear war europe expect soviet territory remain unscathed move forward necessary defense effort europe also proceed effort improve european security arm control integral part nato tnf decision alliance make clear prepared negotiate limitation theater nuclear missile part tnf modernization effort make possible streamline nuclear weapon stockpile europe allow u withdraw nuclear warhead next year mutual balance force reduction talk ally recently put forward new proposal design simplify negotiation improve prospect early progress limit conventional military force europe real sense accomplishment past year answer critical question concern nato future western alliance provide foundation one long period peace prosperity europe ever enjoy still summon essential cohesion relevance resolve deal fundamental security issue likely affect member nation well next century nato consensus favor modernize negotiate nuclear arsenal continue improve conventional force dramatize allied capacity respond effectively military political threat pose soviet union relation ally friend europe take ever broad dimension security agenda remain central address new concern well meet unprecedented number european statesman washington year past include leader great britain west germany austria norway finland netherlands ireland sweden european community meeting common theme change political economic interdependence enter new decade need promote equitable condition peaceful growth stability throughout world approach achieve tangible form number way example every west european government support u continue every peaceful mean seek release american hostage hold tehran defiance universal standard international law decency consult cooperate closely responses soviet union invasion occupation afghanistan nato area move together vigorously meet serious economic problem face turkey thereby strengthen vital part nato southern flank sign new base agreement turkey action though indispensable right also support continue effort promote solution cyprus problem bring reintegration greece within military framework atlantic alliance objective retain high priority year asia united state pacific nation much atlantic nation interest asia important u interest europe trade asia even great trade europe pursue maintained interest basis stable balance power region partnership alliance japan central asian policy strengthen new relationship china expand tie association south east asian nation asean member government trip far east help forge closer work relationship japan korea asian security balance power fundamental asian security maintain balance strong united state military posture region well close tie ally japan australia new zealand korea past year work stabilize united state military presence asia conclude amend base agreement philippine last 1991 foster close degree security cooperation japan history two joint planning defense japan increase japanese contribution united state base cost japan japanese purchase united state defense equipment examine detail new intelligence estimate north korean military strength decide maintain troop strength republic korea present level least 1981 reaffirmation commitment korean security great importance korean make necessary political adjustment wake president park assassination response nation east asia soviet aggression afghanistan gratify australia particular deserves recognition forthright stand take japan asean nation also strongly supportive china last year expand relationship people republic china ensure interest coincide separate action mutually reinforce end enhance consultative relationship also seek develop endure institutional framework economic cultural scientific trade area process facilitate successful visit vice premier deng united state vice president mondale china sign 15 commercial scientific cultural agreement numerous visit significant expansion trade flow people two country secretary defense brown recent trip people republic china talk hold global regional issue arm control technology transfer way sustain bilateral contact although may differ chinese issue view coincide many important issue particularly respect implication region soviet invasion afghanistan 1980 look forward passage congress early year china trade agreement authorization opic operation china plan conclude civil aviation maritime textile agreement continue expand commercial cultural scientific relation particularly eximbank credit people republic china southeast asia country comprise asean central united state interest southeast asia throughout past year relation asean continue expand consultative arrangement strengthen stability prosperity southeast asia severely challenge vietnamese aggression cambodia year continue encourage political settlement cambodia permit nation govern leader choice take prudent step possible deter vietnamese attack thai territory increase support thai direct warning vietnam member asean stand firmly behind thailand great measure help contain conflict gratify thailand courageous humane acceptance cambodian refugee middle asia event iran afghanistan dramatize u critical importance american security prosperity area run middle east persian gulf south asia region provide world oil export supply energy need ally europe japan scene almost constant conflict nation serious internal instability within many country one nation invade soviet union deal multiple challenge number way middle east first key goal administration since 1977 promote endure resolution essential bringing stability peace entire region follow camp david summit august 1978 march 1979 help bring sign peace treaty egypt first time 30 year middle east conflict peace shin bright promising flame historic signing ceremony white house prime minister begin president sadat repeat camp david pledge work full autonomy west bank gaza since egypt israel work complete part camp david framework provide opportunity palestinian people participate determine future strongly support effort pledge full partner autonomy negotiation continue work vigorously comprehensive peace middle east building unprecedented achievement camp david time reinforce america commitment israel security right nation area live peace neighbor within secure recognize frontier persian gulf recent year fuel import soar persian gulf become vital united state many friend ally long term world dependence persian gulf oil likely increase denial oil u threaten security provoke economic crisis great great depression 50 year ago fundamental change way live twin threat flow regional instability potentially soviet firmly defend vital interest threaten past year begin increase capacity project military power persian gulf region engage exploration increase use military facility area increase naval presence indian ocean work country region share security concern rapid deployment force describe earlier could use support friendly government gulf southwest asian region well area south asia overwhelming challenge region deal new situation pose soviet aggression afghanistan must help regional state develop capability withstand soviet pressure strengthen framework cooperation region want cooperate state region india pakistan sri lanka bangladesh nepal new situation propose congress military economic assistance program enable pakistan buttress defense matter urgent concern strongly urge early possible approval house senate also work closely friends pakistan increase resource available pakistan development security also pursue possibility gain access military facility region time trouble prepared work closely friends region cooperative basis whatever required ensure aggressor would bear heavy cost aggression deter high priority u region manage nuclear concern india pakistan way compatible global regional priority change security situation south asia arise soviet invasion afghanistan call legislative action allow renew assistance pakistan way diminishes commitment work prevent nuclear weapon proliferation pakistan elsewhere steady growth economic assistance also essential country south asia achieve growth true stability africa peaceful transition majority rule southern africa continue major goal united state give full support successful british drive reach agreement among party rhodesia process implementation easy path open peaceful outcome european ally canada african state directly concern also make progress toward independence majority rule namibia momentum result successful resolution rhodesian conflict aid initiatives congressional support executive branch decision maintain sanction rhodesia party reach agreement impartial election process begin instrumental create condition necessary agreement united state european trading partner surround african state lift sanction process economic reconstruction begin creation independent zimbabwe many year fight prepared cooperate coherent development plan poor nation southern africa region active support racial equality southern africa enable united state develop continue effective dialogue government throughout continent africa grow important u economic political strategic reason strengthen tie mutual interest african continue participate first help african resolve political problem maintain stability continent whether horn area continent also provide friendly nation security assistance need defense border north africa 1979 united state move help friend strengthen arm supply relationship morocco assist morocco deal attack inside internationally recognize frontier seek condition great security confidence political settlement western sahara conflict effectively pursue though mediator united state month ahead encourage country area resolve difference peacefully order vast economic potential north africa exploit people live latin america since inauguration work hard forge new collaborative relationship nation latin america rest firm commitment human right democratization economic development event turbulence central america u opportunity move toward goal encourage progress area human right democratization western hemisphere past year inauguration new democracy ecuador strong effort andean country preserve democracy bolivia positive step 1979 meet president mexico twice discuss opportunity difficult issue two country take worthwhile step include agreement natural gas trade october 1 vice president mondale many leader latin america travel panama celebrate come force panama canal treaty transition new relationship new structure manage canal smooth effective contribution mutual respect panamanian americans vice president also travel brazil venezuela secretary state meet leader quito inauguration new democratic president ecuador lapaz oas general assembly meeting help u develop close consultative tie important free balance community nation hemisphere also 1979 united state move much closer economic political relationship increasingly significant andean pact country memorandum understanding economic relation sign washington november central america caribbean region undergoing period rapid social political change threat intervention cuba may thwart desire people region progress within democratic framework work closely government region try aid developmental process region prepare assist threaten outside intervention caribbean group coordinate world bank help establish become important factor development region add 260 million concessionary resource region increase aid caribbean reprogrammed loan seek prompt congressional action supplemental 80 million nicaragua central america science advisor frank press lead large delegation scientist educators barbados peru venezuela brazil forge new fruitful tie country important area science technology international economy grow defense effort vigorous foreign policy rest upon strong economy united state strength economy depend upon ability lead compete international marketplace energy essential lesson drawn iran compel foreign policy well domestic economic reason lessen dependence foreign oil response series united state proposal industrial country adopt 1979 cooperative energy strategy 1980 main element collective restraint oil import intensify effort conserve oil boost production conventional substitute oil collaborative research development commercialization new fuel technology tokyo economic summit june head government seven major industrial democracy agree must take responsibility curb oil demand end year 20 industrialized nation member international energy association agree enforce equitably allocate ceiling oil import create system quickly adjust ceiling change world oil supply completion detail agreement execute global oil process head international energy agenda 1980 1980 economic summit venice intend propose joint action smooth transition oil abundant fuel slow growth oil price support international oil strategy administration unite state coal industry launch joint marketing effort make country major exporter steam coal assurance reliable united state coal supply competitive price many electric power plant build 1980 1990 rather oilburning coal export help u pay decline costly oil import new source natural gas supply united open conclusion negotiation close cooperation northern neighbor canada administration clear way expand flow canadian natural gas united state private development alaskan gas pipeline across canada low 48 state continue believe power play essential role meeting energy need many nation effective safeguard proliferation nuclear weapon international monetary policy move forcefully establish fundamental economic condition strong dollar 1979 balance payment approximate balance first time three year despite substantially high oil import cost economic policy strong energy program provide basis improvement course outcome depend part also upon responsible pricing behavior opec oil producer support effort way strengthen international monetary system urge congress enact promptly legislation permit united state increase quota international monetary fund imf part general expansion fund resource welcome measure take imf improve ability promote sound economic exchange rate policy member country also welcome study possible establishment substitution account strengthen international monetary system promote role special draw right principal reserve asset system trade direction special trade representative bring successful conclusion multilateral trade negotiation ambitious set negotiation reduce barrier international trade decade result mtn agreement cover broad spectrum trade issue conclude ratified overwhelming majority unite state congress bind commitment sign major trading nation provide framework new era international trading relation develop nation make clear resolve american people resist danger protectionism reorganization federal government trade agency direct assure effective prompt governmental action exploit export opportunity afford mtn plan approve congress fall establishes strong authoritative voice executive office president provide coherence leadership united state trade policy negotiation implementation mtn trade code reorganization establishes office trade representative strengthen commerce department sugar 1979 congress ratify international sugar agreement thus fulfil major commitment administration agreement important element international commodity policy implication relation develop country particularly sugar producer latin america agreement measure administration take already help stabilize sugar price bring high domestic price line prevail world marketplace producer consumer alike benefit stable market essential commodity need prompt enactment implement legislation agreement tin year end congress approve stockpile disposal legislation permit general service administration sell metric ton tin strategic stockpile contribute metric ton international tin organization ito buffer stock fulfills united state pledge make conference international economic cooperation represent major step forward relation produce country develop world consult member ito ensure tin disposal disrupt market take account need producer consumer common fund united state join member united nation conference trade development develop develop nation negotiate agreement framework common fund help international commodity agreement stabilize price raw material negotiation underway final article agreement fund unite state also participate successful negotiation international rubber agreement economic cooperation develop nation relation develop nation central importance united state fabric relation country political economic dimension witness recent week nation third world take lead condemn soviet invasion afghanistan ability work together develop nation toward goal political independence resolution regional tension grow tie trade u maintain policy active engagement develop world pursue past three year foreign assistance legislation submit fy 81 provide authority fund carry cooperative relationship large number develop nation prompt congressional action legislation essential order meet treaty base right agreement continue peace effort middle east provide economic development support country need promote progress issue protect western interest counter soviet influence also ask congress enable u honor international agreement multilateral assistance authorize appropriate fund international financial institution finally administration congress agree 1979 fundamental change way united states government organize conduct economic technical relation develop nation submit congress approve plan consolidate small body international development cooperation agency idca responsibility direct united state development assistance guidance united state representative multilateral development agency present development interest federal government policy body deal trade economic relation develop nation also submit house approve 1979 session congress plan establish institute scientific technological cooperation istc constituent element idca group agency approve istc carry research well support research foreign scientist technological mean reduce poverty develop nation war hunger one main economic problem face develop country lag food production must help country meet people free threat continue hunger also societies strong enough resist external pressure direct united state bilateral multilateral aid gear increasingly goal recommend hunger commission chair sol linowitz urge donor country join effective effort end good progress make since tokyo economic summit call increase effort front world bank give problem top priority donor country resource consultative group international agricultural research double period work institute scientific technological cooperation strengthen search relevant new agricultural technology goal free world hunger year 2000 command full support country human dimension foreign policy human right ultimate aim foreign policy must preserve freedom expand freedom others matter national principle national interest believe free open society well able meet rise expectation people also well able accommodate often conflict internal pressure popular frustration explode violent radical direction seek impose system institution others rather seek support practical concrete way effort nation build institution way meet irrepressible human drive freedom justice human right policy command strong support citizen congress world climate increasingly favor human right progress despite new turbulence conflict past year feature encouraging positive development claim credit clear part grow movement 1979 saw strengthen democratic practice spain portugal free election country disappearance several world repressive regime free political prisoner asia africa latin america return democratic rule several latin american country widespread progress reduce human right violation region grow strength international human right institution court human right hold first meeting preparation begin another conference review compliance helsinki accord hold madrid november oau take long strides toward establish human right commission africa un body become increasingly active human right effort unite state still party key human right treaty establish world standard implement machinery early 1978 sent senate approval four treaty american convention human right convention racial discrimination un covenant civil political right economic social cultural right hearing hold 1979 single action country would advance human right senate approval instrument fifth human right treaty send congress previously genocide convention urge early possible senate action humanitarian aid mass exodus refugee vietnam reach crescendo summer 1979 people month flee repression economic privation flee boat many lose sea july special un meeting refugee vice president mondale present major united state program rescue help support resettle new refugee population double month number indochinese refugee united state accord fine tradition would absorb year ahead vietnamese invasion kampuchea late 1978 gravely jeopardized supply food already decimate brutalized khmer people october announce united state would pay cost international relief program mount jointly unicef international committee red cross leader thirtyfive church voluntary agency white house encouragement engage large program refugee early november carter visit refugee border report back united state voluntary agency american people response effort avert mass famine accelerate obstacle remain warfare aggression vietnam phnom penh authority much aid movement hungry khmer across thai border fed help american continue effort public private avert famine loom new help effort come national committee form early 1980 lead citizen help mobilize support sustained effort essential achieve humanitarian goal year begin also consider new mean help contribution un high commissioner refugee way mount afghan refugee population pakistan desperate refugee situation somalia ignore destructive aggressive policy soviet union add immeasurably suffer three tragic situation ask head appropriate department executive branch play active role select commission immigration refugee policy formulate new approach deal sensitivity difficult subject people arrive shore latin america meeting pope john paul ii historic unprecedented visit united state help raise world consciousness connection press problem famine homelessness human right talk spur positive action many area notably indochina set stage action 1980 control nuclear weapon together friends ally strive build world people diverse interest live freely prosper humankind achieve date seek accomplish human existence undone catastrophe nuclear war thus one central objective administration control proliferation nuclear weapon nation development exist nuclear soviet union unite state enter office commit assert american leadership stem proliferation nuclear could create fundamental new instability critical region world threaten security united state do unilaterally cooperation supplier nuclear technology material need issue must become confrontation proceed number front seek encourage nation accede treaty accept international safeguard nuclear act call safeguards connection united state nuclear export international nuclear fuel cycle evaluation infce demonstrate supplier recipient work together result publish month difference remain provide broad international basis national decision must balance energy need concern work encourage regional cooperation restraint protocol treaty tlatelolco contribute lessen nuclear danger latin american neighbor yet ratify united state senate work together congress remain committed vigorous pursuit objective limitation strategic arm prominent nuclear arm control effort course salt ii signing treaty bring end painstaking negotiation carry three administration party ii mutual interest neither american favor soviet union soviet favor united state salt ii treaty would represent major step forward restrain continue growth soviet strategic force salt ii reduces superpower competition dangerous manifestation treaty single important bilateral accord decade ii permit u good maintain strategic equivalence nuclear weapon devote defense increase heavily high priority need conventional force improvement soviets add power force well conceal u salt ii beginning salt iii deeper cut would take many year achieve salt ii effort control proliferation nuclear weapon difficult believe senate ratify salt ii treaty simplest term interest nation security believe advisable time bring treaty consideration senate floor congress executive branch must first deal press matter arise soviet invasion afghanistan conclusion enter decade 1980 face challenge home abroad test quality toughness willingness sacrifice large goal courage vision nation remain secure country prosper must rise narrow interest danger disunity world major power confrontation reward new national consensus sense purpose equally clear new support world purpose national independence individual human dignity new home require keep u strong nation earth must move together decade strength come realization danger u confidence together overcome jimmy carter white house january 21 1980